Prestige Consumer Healthcare Inc. · NYSE:PBH

Prestige Consumer Healthcare — Prestige Brands Holdings — Q1 FY2017 Earnings Presentation

26 slides from Prestige Consumer Healthcare's earnings presentation, Aug 4, 2016

  1. Slide 1: Review of First Quarter FY 17 Results

    —,_ 7. PrestigeBrands Review of First Quarter FY 17 Results August 4, 2016

  2. Slide 2: Forward-looking statements

    This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company’s expected financial performance, including revenue growth, adjusted EPS, and adjusted free cash flow, expansion of mar

  3. Slide 3: Agenda for Today's Discussion

    Agenda for Today's Discussion I. Performance Highlights II. Financial Oueruiew Ill. FY 17 Outloo� and the Road Ahead First Qu arter FY 17 Results 3

  4. Slide 4: I. Performance Highlights

    I. Performance Highlights Dramamine· Co 41BM#@R+ Cli!Gr eyes® MONISTAT� � (§$1,ffl Debrox�

  5. Slide 5: Invest for Growth portfolio is comprised of Core OTC brands and International

    Invest for Growth portfolio is comprised of Core OTC brands and International.*

  6. Slide 6: Q1 performance highlights

     Q1 consolidated Revenue of $209.6 million, up 9.1% versus PY Q1 — Organic growth of approximately +1%(1) on a constant currency basis, following a strong Q4 — Revenue growth of +4.4% for Invest for Growth* portfolio on a constant currency basis(1) — DenTek contributed $16.6 million of Revenue duri

  7. Slide 7: Consumption and organic revenue growth versus category

    Source: Data reflects retail dollar sales percentage growth versus prior period for consumption growth and organic revenue growth. FY 15 and FY 16 data shown as previously presented for Core OTC. Q1 FY 17 data for Invest for Growth portfolio comprised of Core OTC brands and International. Core OTC b

  8. Slide 8: Building an International Platform: Investing for Long-Term Growth

    Building an International Platform: Investing for Long-Term Growth iscon: id brandi con = Gauiscon: #1 antacid brand in Canada Gaviscc gone . . . . (g ” = Fess: Leading nasal saline health brand in Australia « FESS = Hydralyte: Leading rehydration brand in Australia and New Zealand = Murine: Prestig

  9. Slide 9: Gaviscon: Canada's #1 selling heartburn relief brand

    Canada’s #1 Selling heartburn relief brand; long-lasting relief Retail & Club Store Displays Begins working immediately; Acid-shielding foam barrier neutralizes excess stomach acid

  10. Slide 10: Fess and Hydralyte product lines

    A full line of nasal saline products for adults and children A full line of oral rehydration products for adults and children +25% Growth Since Acquisition+25% Growth Since Acquisition

  11. Slide 11: Murine/Clear Eyes: Expanding Our International Eye Care Footprint

    Murine/Clear Eyes: Expanding Our International Eye Care Footprint • New Zealand I 5"'111YON10Cl0SCDC'IEL10S • Eye mist "'CfearEyes PHARMACY MEDICINE • Clear eyes PHARMACY MEDICINE • Clear eyes'J\ Australia � ........ ffltat- loochn.., ........... RED EYES son'. EY£S ORV EY£S ..G'l.wr.r'- -�- Nordic

  12. Slide 12: II. Financial Overview

    Dramamine· II. Financial Oueruiew Co 41BM#@R+ Cli!Gr eyes® MONISTAT� � (§$1,ffl Debrox�

  13. Slide 13: Excellent overall financial performance in the quarter

     Excellent overall financial performance in the quarter − Revenue of $209.6 million, an increase of 9.1% − Adjusted EPS of $0.59(2), up 13.5% − Adjusted Free Cash Flow increase of 17.4% to $50.2 million(2) $192.1 $69.6 $42.7 $209.6 $76.6 $50.2 Total Revenue Adjusted EBITDA Adjusted EPS Adjusted Fre

  14. Slide 14: Q1 FY17 income statement summary

    Q1 FY 17 Q1 FY 16 % Chg Total Revenue 209.6$ 192.1$ 9.1% Gross Margin 121.6 112.2 8.3% % Margin 58.0% 58.4% A&P 27.6 26.4 4.6% % Total Revenue 13.2% 13.8% Adjusted G&A(2) 17.3 16.2 7.1% % Total Revenue 8.3% 8.4% Adjusted EBITDA(2) 76.6$ 69.6$ 10.0% % Margin 36.6% 36.2% Adjusted Net Income(2) 31.4$ 2

  15. Slide 15: Adjusted free cash flow and net debt

    Q1 FY 17 Q1 FY 16 Net Income - As Reported (5.5)$ 26.2$ Depreciation & Amortization 6.8 5.7 Other Non-Cash Operating Items 50.0 17.1 Working Capital (0.5) (5.5) Operating Cash Flow 50.8$ 43.5$ Additions to Property and Equipment (0.9) (0.8) Payments Associated with M&A 0.3 - Adjusted Free Cash Flow

  16. Slide 16: DenTek integration completed

     IT systems and processes integrated  Offices transitioned and majority of positions filled  Regulatory and quality functions integrated  Go-to-market strategy in-place and selling organization integrated  Optimizing supplier network  Investments in tooling to expand capacity  Marketing strat

  17. Slide 17: Sale of PediaCare, Fiber Choice and New Skin brands

     Prestige sold the PediaCare, Fiber Choice and New Skin brands to Moberg Pharma AB in early July for $40 million in cash  Transaction will allow greater focus on Invest for Growth portfolio and moves Prestige toward the stated target of 85% of sales from Invest for Growth brands  Transaction will

  18. Slide 18: III. FY 17 Outlook and the Road Ahead

    Ill. FY 17 Outlook and the Road Ahead Dramamine· Co 41BM#@R+ Cli!Gr eyes® MONISTAT� � (§$1,ffl Go!'!1f.!-'!!ne Debrox· Ca re na

  19. Slide 19: FY 17 outlook

     Revenue growth of +6% to +8% (including $11 million of impact from Fx and discontinued items) — 1H +6.5% to +8.5%, 2H +5.5% to +7.5% — Organic growth of +1.5% to +2.0%  Revenue growth of +4% to +6% (including $11 million of impact from Fx and discontinued items) — 1H +5.0% to +7.0%, 2H +2.5% to +

  20. Slide 20: The road ahead

     Continue Invest for Growth market share expansion with strong momentum heading into Q2  Increase digital investments  Focus on new product development and marketing innovation  Expand focus on developing professional marketing  Focus on all channels of distribution including c-store, dollar, a

  21. Slide 21: Care First

    Care First �u arter FY 17 Results �21

  22. Slide 22: Non-GAAP footnotes

    (1) Organic Revenue Growth on a constant currency basis is a Non-GAAP financial measure and is reconciled to its most closely related GAAP financial measure in our earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted G&A, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted

  23. Slide 23: Organic revenue reconciliation

    Three Months Ended June 30, 2016 2015 (In Thousands) GAAP Total Revenues $ 209,575 $ 192,132 Adjustments: DenTek revenues (16,627) - Total adjustments (16,627) - Non-GAAP Organic Revenues 192,948 192,132 Organic Revenue Growth 0.4% Impact of foreign currency exchange rates (829) Non-GAAP Organic Rev

  24. Slide 24: Adjusted G&A and EBITDA reconciliation

    Three Months Ended June 30, 2016 2015 (In Thousands) GAAP General and Administrative Expense $ 19,457 $ 17,589 Adjustments: Costs Associated with CEO transition - 1,406 Legal and professional fees associated with acquisitions and divestitures 484 - Integration, transition and other costs associated

  25. Slide 25: Adjusted net income, EPS and free cash flow reconciliation

    Three Months Ended June 30, 2016 2015 Net Income EPS Net Income EPS (In Thousands) GAAP Net (Loss) Income $ (5,531) $(0.10) $ 26,173 $ 0.49 Adjustments: Costs associated with CEO transition - - 1,406 0.03 Legal and professional fees associated with acquisitions and divestitures 484 0.01 - - Integrat

  26. Slide 26: Projected FY17 EPS and free cash flow reconciliation

    2017 Projected EPS Low High Projected FY'17 GAAP EPS $ 1.55 $ 1.61 Adjustments: Costs associated with DenTek integration 0.08 0.08 Loss on sale of assets 0.67 0.67 Total Adjustments 0.75 0.75 Projected Non-GAAP Adjusted EPS $ 2.30 $ 2.36 2017 Projected Free Cash Flow (In millions) Projected FY'17 GA

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