Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Oppenheimer Consumer Growth & E-Commerce Conference 2021
29 slides from Prestige Consumer Healthcare's conference presentation, Jun 15, 2021
Slide 1: Oppenheimer Consumer Growth & E-Commerce Conference
J u n e 1 5 th, 2 0 2 1 Oppenheimer Consumer Growth & E-Commerce Conference
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure This presentation contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally
Slide 3: Contents
Contents I. Introduction to Prestige Consumer Healthcare II. Brand Building Playbook III. Financial Profile & Capital Allocation IV. The Road Ahead Oppenheimer Consumer Growth & E-Commerce Conference
Slide 4: Introduction to Prestige Consumer Healthcare
Introduction to Prestige Consumer Healthcare Oppenheimer Consumer Growth & E-Commerce Conference
Slide 5: Who We Are: Helping Consumers Care for Themselves
Who We Are: Helping Consumers Care for Themselves eye drops per year throat drops for every cold season doses of pain relief per week infections treated annually Source: Company records Oppenheimer Consumer Growth & E-Commerce Conference 5
Slide 6: Diversified Portfolio of Leading Consumer Healthcare Brands
Diversified Portfolio of Leading Consumer Healthcare Brands Total Sales* by Category #1 Brands Represent Two-Thirds of Total Sales* Oral #1 Feminine Hygiene Care #1 Vaginal Anti-Fungal Women’s 11% Dermatologicals Health #1 Enemas & Suppositories 12% 28% #1 Motion Sickness #1 Powdered Analgesic Eye &
Slide 7: Proven, Consistent & Repeatable Strategy
Proven, Consistent & Repeatable Strategy ◼ Positioned for long-term 2% to 3% (1) Organic growth ◼ Brand building to drive long-term success ◼ Industry-leading financial profile Cash Generation ◼ Consistent and strong FCF generation ◼ Enables capital allocation opportunities ◼ Disciplined capital all
Slide 8: Brand Building Playbook
Brand Building Playbook Oppenheimer Consumer Growth & E-Commerce Conference
Slide 9: Investment Across Key Brands Drives Organic Growth
Investment Across Key Brands Drives Organic Growth Invest for Growth Manage for Cash Power Core Core International Other OTC 10% 50% 10% Sales Contribution to Portfolio (Approximate %) 30% # of Brands 5 11 18+ 40+ Representative Brands Long-Term Organic Growth Target 3%+ 1-3% 5%+ -4% to -8% (approxi
Slide 10: Portfolio Positioned To Benefit From Changing Environment
Portfolio Positioned To Benefit From Changing Environment Consumers seeking trusted brands Continuing to benefit Increased consumer focus on self-care and hygiene from investments and diverse positioning Accelerated trend towards shopping online Oppenheimer Consumer Growth & E-Commerce Conference 10
Slide 11: Playbook Remains Consistent in a Unique Retail Environment
Playbook Remains Consistent in a Unique Retail Environment Retail Traffic Driver Long-Term Brand Building Toolkit ◼ Need-based products sought by consumers, ◼ Develop and understand consumer insights beginning a basket of purchases ◼ Wide-ranging and flexible brand strategies focused on ◼ Retailers
Slide 12: Nimble Marketing Efforts Balanced Against Long-Term Strategy
Nimble Marketing Efforts Balanced Against Long-Term Strategy Long-Term Growth Toolkit Wide-Ranging Real-Time Agile Marketing Strategy Across Portfolio ◼ Engaging customers through campaigns both in-store and online Professional ◼ Investment in current initiatives leading to strong momentum Marketing
Slide 13: E-Commerce: Winning in Consumer Shift to Online
E-Commerce: Winning in Consumer Shift to Online E-Commerce as a % of Net Sales Strong FY 21 Performance + ~11x ~11% E-Commerce Ad Messaging for Treat-at-Home Remedies ~5% Omnichannel ~1% Investments FY17 FY20 FY21 ◼ Early mover advantage; continuing to benefit from early ◼ ~100% E-Commerce growth(2)
Slide 14: Continuing to Win Across Categories Through Brand Building
Continuing to Win Across Categories Through Brand Building Top PBH U.S. Market FY’21 vs Rank Brands Share* Category #1 50% History of Winning Continued in FY’21 #1 60% #1 100%/5%*** #1 35% #2 20% 10 of 12 Brands are #1 in Market Share, Many by #1 60% a Wide Margin #3 5% #1 55% #1 60% Majority of Bra
Slide 15: Financial Profile and Capital Allocation
Financial Profile and Capital Allocation Oppenheimer Consumer Growth & E-Commerce Conference
Slide 16: Cash Flow Drivers That Enable Capital Allocation
Cash Flow Drivers That Enable Capital Allocation Key Attributes and Positioning Capital Allocation Priorities Unchanged ◼ Net Debt at March 31st of ~$1.5 billion(3), leverage ratio of 4.2x(4) Invest in Current Brands to Drive 1 Organic Growth — Target leverage ratio(4) of between 3.5x and 5.0x — Ant
Slide 17: Consistent, Strong Free Cash Flow Supports Deleveraging
Consistent, Strong Free Cash Flow Supports Deleveraging Cash flow enables discipline capital allocation strategy; 3.5x-5.0x long-term net debt-to-EBITDA target Adjusted Free Cash Flow3 ($ in millions) $197 $208 $202 $207 $213 $183 $164 $127 $130 FY 2013A FY 2014A FY 2015A FY 2016A FY 2017A FY 2018A
Slide 18: Fourth Quarter and FY21 Consolidated Financial Summary
Fourth Quarter and FY 21 Consolidated Financial Summary 3 Months Ended 12 Months Ended FY 21 Comments Q4 FY 21 Q4 FY 20 % Chg FY 21 FY 20 % Chg ◼ Revenue down slightly vs. PY in constant Total Revenue $ 237.8 $ 251.2 (5.4%) $ 943.4 $ 963.0 (2.0%) currency Adj. Gross Margin(3) 137.1 149.1 (8.1%) 547.
Slide 19: The Road Ahead
The Road Ahead Oppenheimer Consumer Growth & E-Commerce Conference
Slide 20: Pending Acquisition of Akorn Consistent with Long-term Strategy
Pending Acquisition of Akorn Consistent with Long-term Strategy Acquisition of Scale TheraTears Brand with Strong Position in Dry Eye Segment Adds Complementary Suite of Dry Eye Relief Products to Current Eye Care Offering Consistent with Prestige’s Long-Term Growth and Margin Profile Asset-Light Ac
Slide 21: Outlook: Continuing to Execute Proven Strategy
Outlook: Continuing to Execute Proven Strategy ◼ Strategy intact with stable and well-positioned business ◼ Agile brand-building positions portfolio for further market share gains Top Line Trends ◼ Anticipate FY 22 Revenue of approximately $957 - $962 million — Organic growth of 1.5 – 2.0% — Does no
Slide 22: Appendix
Appendix Oppenheimer Consumer Growth & E-Commerce Conference
Slide 23: Appendix
Appendix (1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release dated May 6, 2021 in the “About Non-GAAP Financial Measures” section. (2) Company consumption inclu
Slide 24: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended March 31, Year Ended March 31, 2021 2020 2021 2020 (In Thousands) GAAP Total Revenues $ 237,761 $ 251,235 $ 943,365 $ 963,010 Revenue Change (5.4%) (2.0%) Adjustments: Impact of foreign currency exchange rates - 3,404 - 3,796 Total a
Slide 25: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Margin Three Months Ended March 31, Year Ended March 31, 2021 2020 2021 2020 (In Thousands) GAAP Net Income $ 35,514 $ 37,046 $ 164,682 $ 142,281 Interest expense, net 18,983 22,452 82,328 96,224 Provision for income taxes 4,859 13,489 39,431 48,8
Slide 26: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended March 31, Year Ended March 31, 2021 2020 2021 2020 Adjusted Adjusted Adjusted Adjusted Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income $ 35,514
Slide 27: Reconciliation Schedules
Reconciliation Schedules Adjusted Free Cash Flow 20 13 20 14 20 15 20 16 20 17 20 18 20 19 GAAP Net Income $ 65,50 5 $ 72,615 $ 78,260 $ 99,90 7 $ 69,395 $ 339,570 $ (35,80 0 ) Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of c
Slide 28: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow (continued) Three Months Ended March 31, Year Ended March 31, 2021 2020 2021 2020 (In Thousands) GAAP Net Income $ 35,514 $ 37,046 $ 164,682 $ 142,281 Adjustments: Adjustments to reconcile net income to net cash provided by operating activ
Slide 29: Oppenheimer Consumer Growth & E-Commerce Conference
Oppenheimer Consumer Growth & E-Commerce Conference
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