Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Oppenheimer Consumer Growth & E-Commerce Conference 2022
34 slides from Prestige Consumer Healthcare's conference presentation, Jun 14, 2022
Slide 1: Oppenheimer Consumer Growth & E-Commerce Conference
J u n e 1 4 th, 2 0 2 2 Oppenheimer Consumer Growth & E- Commerce Conference
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure 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 revenues, diluted EPS, free cash flow, and organic r
Slide 3: Agenda for Today's Discussion
Agenda for Today’s Discussion I. Introduction to Prestige Consumer Healthcare II. Brand-Building Playbook III. Financial Strategy & Capital Allocation IV. The Road Ahead & FY 23 Outlook OPPENHEIMER CONSUMER GROWTH & E-COMMERCE CONFERENCE 3
Slide 4: I. Introduction to Prestige Consumer Healthcare
I. Introduction to Prestige Consumer Healthcare OOP PP PE EN NH HE EI MI ME ER RC COON NS SU UMME ER RGGR ROOWWT TH H& & E E- C- COOMMMME ER RC CE EC COON NF FE ER RE EN NC CE E
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 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 Diverse Portfolio of Market-Leading Brands Oral #1 Feminine Hygiene Care #1 Vaginal Anti-Fungal Cough / Cold 9% Women’s Health #1 Rehydration 10% #1 Motion Sickness 25% Skin #1 Allergy & Redness Relief Drop 11% Care
Slide 7: Record FY 22 Enabled by Long-Term Evolution
Record FY 22 Enabled by Long-Term Evolution Portfolio Brand Capital Consistent Transformation Building Allocation Performance Continued portfolio evolution Brand-building strategy driving Repositioned long-term capital Successfully navigated dynamic reinforces long-term growth growth across categori
Slide 8: History of Superior Performance
History of Superior Performance Proven Ability to Execute Value Creation Strategy 1 Investing for Growth with Proven Brand-Building Playbook 2 Superior Business Attributes Enable Free Cash Flow 3 Scalable & Efficient Platform Supports Disciplined Capital Allocation +3.7% +3.2% +13.4% +7.8% 3-Yr CAGR
Slide 9: II. Brand-building Playbook
II. Brand-building Playbook OOP PP PE EN NH HE EI MI ME ER RC COON NS SU UMME ER RGGR ROOWWT TH H& & E E- C- COOMMMME ER RC CE EC COON NF FE ER RE EN NC CE E
Slide 10: Brand-Building Focus Positions Us for Long-Term Growth
Brand-Building Focus Positions Us for Long-Term Growth 1 Understanding Consumer Insights and Opportunity 2 Flexible & Agile Brand Strategies in an Evolving Environment 3 E-Commerce Success through Investments 4 Proven New Product Development Resulting Long-Term Success Across Channels & Categories O
Slide 11: Consistent Growth Enabled by Understanding Consumer Needs
Consistent Growth Enabled by Understanding Consumer Needs Household Penetration(2) Product Extensions +1.6x Work Travel 8% 5% Vomiting Heat & & Diarrhea Outdoor Sports & FY19 FY22 Exercise ◼ Marketing and innovation driving awareness & consumption growth ◼ Addressing consumer needs with Nausea, Kids
Slide 12: Flexible Strategies Enabled by Nimble Marketing
Flexible Strategies Enabled by Nimble Marketing Active Wash Amber Nights An “Amazon’s Choice” Simply Sensitive ◼ Engaging customers through campaigns both in-store and online ◼ Effective campaigns: 3 ways to treat warts at home, Touch of Science ◼ Investment in current initiatives leading to strong
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 Numerous Drivers of Success +~3x Investment in ~13% Online User ~11% Experience ~5% Engaging Digital Campaigns FY 20 FY 21 FY 22 ◼ Well-positioned due to early investments in E- Commerce behind brand portfolio Omnichannel
Slide 14: Expanding Categories through New Product Development
Expanding Categories through New Product Development Successful History of Innovation Robust Pipeline Ongoing Innovation through Technology & FY 23 Pipeline Expands Brand Offerings Across Superior Consumer Experience Prestige’s Portfolio OPPENHEIMER CONSUMER GROWTH & E-COMMERCE CONFERENCE 14
Slide 15: Result: Diverse Portfolio with Category Defining Shares
Result: Diverse Portfolio with Category Defining Shares Category Defining Share(2)* Top PBH Brands Share Rank(2) Category Defining #1 Brands That Redefine Categories with #1 Meaningful Share #1 #1 #1 10 of 13 #3 Brands are #1 in Market Share(2), Many by a Wide Margin #1 #1 #3 #1 Trusted Brands Consu
Slide 16: III. Financial Strategy & Capital Allocation
III. Financial Strategy & Capital Allocation OOP PP PE EN NH HE EI MI ME ER RC COON NS SU UMME ER RGGR ROOWWT TH H& & E E- C- COOMMMME ER RC CE EC COON NF FE ER RE EN NC CE E
Slide 17: Key Financial Results for Record FY 22 Performance
Key Financial Results for Record FY 22 Performance FY 22 FY 21 Revenue of $1,086.8 million, up 10.1% vs. PY on 15.2% an organic basis(1) $1,086.8 $943.4 FY 22 EBITDA(3) of $367.7 million up 11.8% vs. Adjusted(3) PY 11.8% $367.7 $328.9 25.3% $4.06 $3.24 EPS of $4.06 up 25.3% vs. Adjusted(3) PY Revenu
Slide 18: Consistent, Strong Free Cash Flow Continued in FY 22
Consistent, Strong Free Cash Flow Continued in FY 22 Adj. Free Cash Flow & Leverage Capital Allocation Highlights 7.8% CAGR $254 Significant debt reduction to 3.8x Leverage(4) Adj. FCF(3) $207 $213 $202 FY 19 FY 20 FY 21 FY 22 65% of debt outstanding at fixed rate -1.2x Leverage(4) 5.0x 4.7x 4.2x No
Slide 19: Robust Free Cash Flow Profile Supports Allocation Priorities
Robust Free Cash Flow Profile Supports Allocation Priorities Net Debt(3) at September 30th of $1.6 billion, leverage ratio of 3.8x(4) Cash flow profile enables discipline capital allocation strategy Key Attributes Enable Robust FCF Capital Allocation Priorities Unchanged Invest in Current Brands to
Slide 20: IV. The Road Ahead & FY 23 Outlook
IV. The Road Ahead & FY 23 Outlook OOP PP PE EN NH HE EI MI ME ER RC COON NS SU UMME ER RGGR ROOWWT TH H& & E E- C- COOMMMME ER RC CE EC COON NF FE ER RE EN NC CE E
Slide 21: Well-Positioned in Dynamic Macro Environment
Well-Positioned in Dynamic Macro Environment Macro Trends Normalizing Consumer Behavior Diversified Portfolio Is An Advantage Consumers Value Our Trusted Brands Across Environments Strained Supply Chain Leading Shares Enable Pricing Ability at Retail Inflationary Environment 80%+ North American Sour
Slide 22: FY 23 Outlook
FY 23 Outlook ◼ Strategy delivering with growing and well-positioned business ◼ Agile brand-building enables portfolio for further market share gains Top Line Trends ◼ Revenue of $1,120 Million to $1,130 Million (~3% to 4% growth) — Organic growth of 2% to 3% ◼ EBITDA dollars expecting to grow with
Slide 23: Long-Term History of Superior Financial Performance
Long-Term History of Superior Financial Performance 2012 2022 CAGR Highlights Established, Diversified Portfolio Revenue $441 $1,087 +9.4% of Category-Defining Brands Transformed Portfolio Through Disciplined M&A & Divestitures Adjusted $0.99 $4.06 +15.2% EPS(3) Delivered Long-Term Shareholder Value
Slide 24: Portfolio & Strategy Well-Positioned for Continued Value Creation
Portfolio & Strategy Well-Positioned for Continued Value Creation 1 Diversified Portfolio of Leading, Trusted Brands 2 Established Organic Growth Playbook 3 Superior Financial Profile Generating Consistent Cash Flow 4 Scalable & Efficient Platform 5 Organic Growth Engine Reinforced by M&A Prestige’s
Slide 25: ...And Consistently Deliver Strong Financial Performance
...And Consistently Deliver Strong Financial Performance Organic Long-Term Algorithm High Proven & Organic Growth(1) Free Cash Flow(3) Repeatable of 2.0% to 3.0% Generation M&A Strategy Upside 6.0% to 8.0% EPS Growth Potential Proven Value Creation Strategy OPPENHEIMER CONSUMER GROWTH & E-COMMERCE C
Slide 26: Q&A
Q&A OPPENHEIMER CONSUMER GROWTH & E-COMMERCE CONFERENCE
Slide 27: 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 5, 2022 in the “About Non-GAAP Financial Measures” section. (2) Company consumption and m
Slide 28: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change a) Revenues of our Akorn acquisition are excluded for purposes of calculating Non-GAAP organic revenues. Year Ended March 31, 2020 2019 (In Thousands) GAAP Total Revenues $ 963,010 $ 975,777 Revenue Growth (1.3%) Adjustments: Revenue associated with di
Slide 29: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS a) Inventory step-up charges relate to our North American OTC Healthcare segment b) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees c) T
Slide 30: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Margin a) Inventory step-up charges relate to our North American OTC Healthcare segment b) Costs related to the consummation of the acquisitions process such as insurance costs, legal and other acquisition related professional fees OPPENHEIMER CON
Slide 31: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Margin Year Ended March 31, 2020 2019 (In Thousands) GAAP Net Income (Loss) $ 142,281 $ (35,800) Interest expense, net 96,224 105,082 Provision (benefit) for income taxes 48,870 (2,255) Depreciation and amortization 28,995 31,779 Non-GAAP EBITDA 3
Slide 32: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS 2012 2019 2020 Net Adj. Adj. Adj. Income EPS Net Income EPS Net Income EPS GAAP Net Income $ 37,212 $ 0.73 $ (35,800) $ (0.68) $ 142,281 $ 2.78 Adjustments Inventory step up 1,795 0.04 - - - - Integration, Transition, and other
Slide 33: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow a) Payments related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees Projected Free Cash Flow OPPENHEIMER CONSUMER GROWTH & E-COMMERCE CONFERENCE 33
Slide 34: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow 2012 2019 2020 GAAP Net Income $ 37,212 $ (35,800) $ 142,281 Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 35,674 233,400 66,041 Changes in operating as
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