Edgewell Personal Care Company · NYSE:EPC
Edgewell Personal Care — dbAccess Global Consumer Conference (2023)
29 slides from Edgewell Personal Care's conference presentation, 2023
Slide 1: dbAccess Global Consumer Conference
dbAccess eq ewell Global Consumer Sona cae | Conference
Slide 2: Presenters: President & CEO, CFO
President & CEO CFO, President- Europe & LATAM PAGE 2
Slide 3: Forward-looking statements
Forward-looking statements Please note that in this presentation we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 4: Non-GAAP financial measures
Non-GAAP financial measures While the Company reports financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this discussion also includes non-GAAP measures. These non- GAAP measures are referred to as "adjusted" or "organic" and exclude items such as res
Slide 5: Edgewell's Transformation
Edgewell’s Transformation Announced in November 2020
Slide 6: Transformation into a growing, sustainable, consumer-centric personal care company
We will transform into a growing sustainable and consumer-centric personal care company and we will drive stable topline growth and predictable cash generation, delivering a meaningful total shareholder return Strategic Priorities Build brands Be a trusted Expand Simplify Be a company consumers stra
Slide 7: Accelerate Growth and Stabilize the Profit Pool
Accelerate Growth Stabilize the Profit Pool in categories where we in categories with brands that have a Right to Win give us a Right to Play Leading Share Positions Strong Brands in Recovering in Growing Categories Categories Men’s Grooming International Shave Leverage our leading Grooming portfoli
Slide 8: Geographic and Category Profile
Geographic Profile Category Profile Preps 11% North America • A diversified shave portfolio business, and 50% Men's Branded the only manufacturer operating across all 15% North America sub-category tiers (globally) Disposables • Well positioned to capitalize on potential 22% consumer sentiment shift
Slide 9: Sustainability is core to our business model
Sustainability is core to our business model Sustainability embedded across brands, operations and supply chain. Committed to carbon neutrality by 2030. Diversity, Equity, and Inclusiveness (DEI) is a Strength Advanced focus on DEI to support our global workforce, consumers, and the communities we s
Slide 10: Innovation, Commercial Capabilities, Cost Reduction
Consumer Focused Enhanced Commercial Demonstrated Cost Innovation Capabilities Reduction PAGE 10
Slide 11: Long-term growth targets
Leveraging clear Right to Win portfolio 2% - 3% Disciplined, prioritized investment cadence Organic Net Sales growth Consumer centric innovation at the core Strengthened gross margin profile 4% - 6% Next level cost reduction Adjusted EBITDA growth Investment stance towards our brands 6% - 7% Adjuste
Slide 12: Continuing Our Transformation in 2023
Continuing Our Transformation in 2023
Slide 13: MSD YOY Declines to ~4.5% Annual Growth
FY19-20 FY21-23 MSD YOY Declines ~4.5% Annual Growth • Disruption in US Wet Shave • Successful portfolio shift category with growth-oriented acquisitions • Declining consumption in core Shave and Feminine • Categories return to Care categories underlying health • Edgewell brands suffering • Stronger
Slide 14: Driving better return on our Brand Investments
#1 Driving better Price & Revenue return on our Brand Management Investments Excellence PAGE 14
Slide 15: Improved Distribution Outcomes on Shelf
#2 Improved Strengthening Distribution Market Share Outcomes on Shelf Results PAGE 15
Slide 16: Built Men's Grooming business with category leading brands
#3 • Built our Men’s Grooming business with category leading brands across consumers and price tiers • Added to our leading Women's Shave portfolio • Broadened retail channel access and strength (share) • Strong integration execution, realizing above-expectation synergies • Delivered meaningful grow
Slide 17: #1 Women's Systems brand by Unit Sales
#1 Women’s #2 brand in Systems brand by Women’s Systems Unit Sales • Malibu Starter Kit is #1 in Women’s Systems • Blade Refills are the #2 best-selling women’s refill SKU by dollar sales and has been the #1 women’s refill SKU in the L4W • Whipped Shave Cream remains the #6 best-selling women's shav
Slide 18: Billie national retail expansion
©TARGET meijer Billie Year 2 Y CVS pharmacy’ (2023): National g bofize Wakefern Retail Kroger al. Expansion Walmart -,~ amazon ~~ SHOPPERS (2 PEdgewell
Slide 19: Market Leading Positions
#4 Strong Market Market Leading Positions Positions (often #2) PAGE 19
Slide 20: Relentless Cost Management and Strong Gross Margin
#5 Relentless Cost Strong Gross Management Margin Profile Balanced Strong Cash Capital Flow Generation Allocation PAGE 20
Slide 21: $280M Realized Savings, ~$125M Projected Savings
FY19-21 FY22-23 $280M Realized Savings ~$125M Projected Savings • Enterprise-wide effort that • Productivity and efficiency efforts delivered ~$280M in gross savings continue with additional ~$125M over a three-year period program across both COGS and G&A • Program over-delivered original • Delivere
Slide 22: Free Cash Flow and Net Debt Leverage
FY20 FY21 FY22 FY23e FCF % of Sales 10% 8% 2% 6% Net Debt Leverage 2.7x 2.1x 3.6x 3.5x 233 229 Free Cash Flow 189 175 140 Operating Cash 102 53(1) FY20 FY21 FY22 FY23e (1) FY22 FCF primarily impacted by temporary increase in inventory levels needed to ensure raw material and product availability in
Slide 23: Balanced Capital Allocation
Invest for growth Investing in our brands and growth opportunities, accretive M&A, capex for innovation and productivity gains ~20% Dividend Improve capital return Payout Ratio Return of cash to shareholders through $300M Systemic the initiation of a dividend and systemic Share Buyback buy back of s
Slide 24: Fiscal 2023 Outlook
Fiscal 2023 Outlook
Slide 25: Fiscal 2023 year-to-date results
7.6% 16%+ +270bps Organic Sales Growth Adj. EPS Growth Gross Margin Benefit @ constant currency From Price +13.2% growth rate for GAAP EPS $0.60, Adj Pricing contribution to Right to Win and +5.3% EPS $0.87 Gross Margin to help for Right to Play mitigate macro inflationary headwinds +230bps ~$46M +2
Slide 26: Delivering Growth on Growth
( ) • Organic Net Sales Growth ~5%, With Growth in All Segments ✓ Delivering Growth – Three-year (+4.5%) Stacked Growth, Evidence of Durable and on Growth Sustainable Growth Profile – Growth Across Right to Win (MSD) and Right to Play (LSD) Portfolios • Adj. Gross Margin accretion +30bps, with Half
Slide 27: Key takeaways
• A clear and compelling portfolio strategy is driving sustained topline growth, with clear proof points of demonstrated progress on our transformation; • Navigating the challenging macro cost environment through both cost-saving, productivity efforts, and improved commercial execution; including in
Slide 28: Q&A
Q&A PAGE 28
Slide 29: FY23 Outlook and Long Term Algorithm
FY ‘23 @ FY ‘23 Outlook (1) Constant Currency Long Term Algorithm (4) 2% to 4% (High End) Reported Net Sales growth ▪ Organic Growth in all Segments 2%-3% 3% to 5% (High End) Organic Net Sales growth Organic Net Sales growth ▪ Gross Margin Expansion +30bps flat 9% 4%-6% Adjusted EBITDA (2) Adjusted
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