Clorox Company (the) · NYSE:CLX
Clorox Company (the) — The Clorox Company — CAGNY 2025
92 slides from Clorox Company (the)'s conference presentation, Feb 20, 2025
Slide 1: CAGNY 2025
CAGNY 2025 Linda Rendle Chair & Chief Executive Officer Kevin Jacobsen EVP & Chief Financial Officer Luc Bellet Incoming EVP & Chief Financial Officer
Slide 2: Safe Harbor
Safe Harbor Except for historical information, matters discussed in this presentation, including statements about the expected or potential impact of the Company’s operational disruption stemming from a cyberattack and the success of the Company’s future volume, sales, costs, cost savings, earnings,
Slide 3: Well Positioned to Continue to Build Earnings & Create Long-Term Shareholder Value
Well Positioned to Continue to Build Earnings & Create Long-Term Shareholder Value • Advantaged portfolio of superior value brands in essential categories supported with continued investment • We are transforming into a faster-growing, more resilient company by modernizing our capabilities, executin
Slide 4: Who We Are
o The Clorox Company Who We Are
Slide 5: Global Portfolio of Leading Brands Trusted & Loved by Consumers
Global Portfolio of Leading Brands Trusted & Loved by Consumers 35% HEALTH & WELLNESS $7.1 Billion 100+ 80% >60% 28% HOUSEHOLD MARKETS OF SALES FROM OF PORTFOLIO FY24 NET SALES 18% LIFESTYLE GLOBALLY BRANDS THAT ARE NO. 1 OR NO. HAS SUPERIOR CONSUMER 16% INTERNATIONAL 2 IN CATEGORIES VALUE* Results
Slide 6: Choiceful, Disciplined Playbook
Choiceful, Disciplined Playbook Creates Competitive Advantage & Shareholder Value Leading brands loved Purposeful & targeted in by consumers where we play ECONOMIC PROFIT World class capabilities to Purpose-driven drive operational excellence growth 6
Slide 7: Portfolio of Leading Brands with Superior Consumer Value
Portfolio of Leading Brands with Superior Consumer Value 64% 60% #1 or #2 54% Brands in Majority of Categories (1) FY19 FY23 Current (2) Superior Consumer Value (1) About 80% of the Company's sales are generated from brands that hold the No. 1 or No. 2 market share position in their categories. Sour
Slide 8: Strategic Update
o The Clorox Company Strategic Update
Slide 9: IGNITE Built to Address Megatrends
IGNITE IGNITE Built to Address Megatrends IGNITE Health & Multicultural Personalization Responsibility Megatrends Wellness Millennials How They’ve Digitally New Wave Home Life No Significant Evolved Transformed Wellness Redefined Change Engagement
Slide 10: New Wave Wellness
IGNITE New Wave Wellness Personalization Mental Lifestyle & & Performance Health GLP-1 Impact
Slide 11: Home Life Redefined
IGNITE Home Life Redefined Balancing Embracing Smaller Relaxation & Smaller, Imperfect Households Productivity Spaces
Slide 12: Digitally Transformed Engagement
IGNITE Digitally Transformed Engagement Social Collapsing AI Assistants Commerce Purchase Funnel
Slide 13: State of the Consumer
IGNITE State of the Consumer Willingness to Pay More Uncertainty Value-Seeking for Better Ahead Behaviors Experiences
Slide 14: Private Label Remains Stable in Our Categories
IGNITE Private Label Remains Stable in Our Categories 18% 17% 17% 17% 17% Private Label Dollar Share 16% 2019 2020 2021 2022 2023 2024 Source: Circana Market Advantage - Total U.S. MULO+ and Pet Spec and Pet Ecommerce, February 2025.
Slide 15: New Opportunities to Champion People to Be Well and Thrive Every Single Day
IGNITE New Opportunities to Champion People to Be Well and Thrive Every Single Day Drive Increase Category Market Growth Share Attracting New Households Driving New Occasions
Slide 16: IGNITE Creates a Resilient, Faster Growing Company
IGNITE IGNITE Creates a Resilient, Faster Growing Company Deliver Sales Growth of 3 to 5% Expand Adj. EBIT Margin by +25 to 50bps Generate Free Cash Flow of 11 to 13% Adjusted EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income, interest expe
Slide 17: IGNITE Strategy Choices
IGNITE IGNITE Strategy Choices Fuel Innovate Growth Experiences Reimagine Evolve Work Portfolio
Slide 18: Creating a Resilient, Faster Growing Company
IGNITE Creating a Resilient, Faster Growing Company Modernized Capabilities Digital Transformation Streamlined Operating Model
Slide 19: What We've Achieved To Date
IGNITE What We’ve Achieved To Date Fuel Growth Innovate Experiences Accelerated growth Stabilized and rebuilt margin Increased consumer value Better innovation pipeline Strengthened retailer partnerships Reimagine Work Evolve Portfolio Data transformation Acquired majority interest in
Slide 20: Scaling Holistic Margin Management Toolbox
FUEL GROWTH Scaling Holistic Margin Management Toolbox Trade Optimization Strategic Price Pack Pricing Architecture Design to Procurement Value Productivity Network Enhancement Optimization
Slide 21: On-Track to Return to Pre-Pandemic Gross Margins
FUEL GROWTH On-Track to Return to Pre-Pandemic Gross Margins +125 to 150 bps ~44% +360 bps +360 bps 36% FY22 FY23 FY24 FY25 FY25 Outlook (*) (*) Based on Outlook as of Feb 3, 2025
Slide 22: Net Revenue Management Beginning to Deliver Value
FUEL GROWTH Net Revenue Management Beginning to Deliver Value 22
Slide 23: Price Pack Architecture - Cleaning Dilutables
FUEL GROWTH Price Pack Architecture - Cleaning Dilutables Pine-Sol concentrated platform expansion +8% Sales Growth Margin Accretive Source: POS Circana Latest 52 weeks ending January 12, 2025 versus same period year ago.
Slide 24: What's Next - Price Pack Architecture
FUEL GROWTH What's Next - Price Pack Architecture • Different pack sizes to address different consumer needs • Partnering with retailers to learn in-market
Slide 25: What's Next - Design to Value
FUEL GROWTH What's Next - Design to Value • Standardized Product & Packaging • Simplified Formula • Increased Operational Efficiency
Slide 26: Consumer Value is of the Highest Importance
INNOVATE EXPERIENCES Consumer Value is of the Highest Importance 64% 60% #1 or #2 54% Brands in Majority of Categories (1) (2) FY19 FY23 Current Superior Consumer Value (1) About 80% of the Company's sales are generated from brands that hold the No. 1 or No. 2 market share position in their categori
Slide 27: Delivering Clearly Superior Experiences Through Modernized Capabilities
INNOVATE EXPERIENCES Delivering Clearly Superior Experiences Through Modernized Capabilities Proposition Place “I want it!” “I see it!” Product I love it! Price / Value “It’s amazing!” “It’s worth it!” Packaging “I need it!”
Slide 28: Scentiva Platform for Scent Seekers
INNOVATE EXPERIENCES Scentiva Platform for Scent Seekers Make Up 40-50M Clean More Frequently Growing Population U.S. Households
Slide 29: Proposition – Strong, Differentiated
INNOVATE EXPERIENCES Proposition – Strong, Differentiated Proposition “I want it!” Cleans like Clorox with an amazing, long-lasting freshness
Slide 30: Product - Expanding to Tougher Job Occasions
INNOVATE EXPERIENCES Product - Expanding to Tougher Job Occasions Product “It’s amazing!”
Slide 31: Scentiva
= : PP. ae 1 sor _ Trusted clean : = Long-lasting freshness Learn more CORO a4 SCENTIVAS
Slide 32: Packaging - High-Impact, Sensorial
INNOVATE EXPERIENCES Packaging - High-Impact, Sensorial Packaging “I need it!" From To
Slide 33: Superior Experience is Driving Accelerated Scentiva Growth
INNOVATE EXPERIENCES Superior Experience is Driving Accelerated Scentiva Growth 100% Year over Year Dollar Sales Growth 90% +58% 55% 80% 70% 60% 50% 40% +3% + 4% 30% +28% +27% 20% 10% 0% FY23 FY24 FY25e* * Based on estimated FY25 sales
Slide 34: A New Generation is Rewriting the Rules of Cat Ownership
INNOVATE EXPERIENCES A New Generation is Rewriting the Rules of Cat Ownership More Younger Cats Deeper Cat Owners Are Cool Connections 34
Slide 35: Consumers Have Different Litter Dissatisfiers
Consumers Have Different Litter Dissatisfiers INNOVATE EXPERIENCES SCOOPING TRACKING ODOR CONTROL CLEAN SCENT HARD TO CAT WELLNESS TRANSPORT & STORE 35
Slide 36: Proposition – Odor Control
Proposition – Odor Control INNOVATE EXPERIENCES Proposition “I want it!” #1 Category Dissatisfier is Odor Control 36
Slide 37: Product – Revolutionary Odor Control
INNOVATE EXPERIENCES Product – Revolutionary Odor Control Product “It’s amazing!” World’s Most Patented Premium Activated Clumping Carbon Clay Antimicrobial Paw & Technology Liquid Activated Fragrance
Slide 38: Heavy Duty Spot
INNOVATE EXPERIENCES Heavy Duty Spot Proposition “I want it!” Heavy Duty work, launching 2/15, won't have a final link for a week or 2 (rough cuts available now)
Slide 39: Place – Winning the Digital Shelf
INNOVATE EXPERIENCES Place – Winning the Digital Shelf Place “I see it!" +12% eCommerce Sales Growth Source: POS Circana MULOP + Pet eCommerce Latest 52 weeks ending January 26, 2025 versus same period year ago. 39
Slide 40: Packaging - Harder Hitting to Improve Value
INNOVATE EXPERIENCES Packaging - Harder Hitting to Improve Value Packaging “I need it!" 40
Slide 41: What's Next for Fresh Step
INNOVATE EXPERIENCES What’s Next for Fresh Step Attract New Cat Owners Launch Win the Superior Digital Shelf Innovation 4 41
Slide 42: Trash is a Problem Everyone Shares
INNOVATE EXPERIENCES Trash is a Problem Everyone Shares Need for Strength Willingness to Pay to Make Value Top of Mind & Odor Control Trash Easier & More Pleasant
Slide 43: Trash Has Many Dissatisfiers
INNOVATE EXPERIENCES Trash Has Many Dissatisfiers RIPS & TEARS SMELLS LEAKS We outsmart waste to leave you Glad BACTERIA & GERMS CHOREDOM
Slide 44: Product - Improving Strength
INNOVATE EXPERIENCES Product - Improving Strength Product “It’s Amazing!” +14% Sales Growth Source: POS Circana MULO+ excluding Club Latest 26 weeks ending December 29, 2024 versus same period year ago.
Slide 45: Kairo Ad
INNOVATE EXPERIENCES Kairo Ad 45
Slide 46: Product - Innovating with Retailers to Win
INNOVATE EXPERIENCES Product - Innovating with Retailers to Win Product “It’s amazing!” 46
Slide 47: Packaging – Improving Shopability & Value
INNOVATE EXPERIENCES Packaging – Improving Shopability & Value Packaging “I need it!" 47
Slide 48: What's Next for Glad
INNOVATE EXPERIENCES What’s Next for Glad Communicate Superiority Lead Win at Shelf Category Innovation 48
Slide 49: Creating a Resilient, Faster Growing Company
REIMAGINE WORK Creating a Resilient, Faster Growing Company Modernized Capabilities Digital Transformation Streamlined Operating Model
Slide 50: Modernized Capabilities
REIMAGINE WORK Modernized Capabilities Consumer Core Innovation Personalization Operations
Slide 51: Modernized Capability - Personalization
REIMAGINE WORK Modernized Capability - Personalization • Proprietary data of 100M known users 60% of all media • State of the art consumer data platform spending is • High efficiency content hub personalized
Slide 52: Personalize to Drive Improved Experience & ROI
REIMAGINE WORK Personalize to Drive Improved Experience & ROI Right Person + Right Time + Right Content
Slide 53: Personalization is Paying Off – Growth & Efficiency
REIMAGINE WORK Personalization is Paying Off – Growth & Efficiency Source: ROI measurement results from Clorox marketing mix modeling compared to Nielsen benchmarks, 2024.
Slide 54: Personalizing a Glad Platform
REIMAGINE WORK Personalizing a Glad Platform Cherry +43% Sales Growth Blossom and accelerating in its 3rd year Fashionista & Home Decor & Scented Wellness & Scented Trendsetter Design Home Self Care Trash Buyer Source: POS Circana Total US - Multi Outlet+, Latest 52 weeks ending Jan 26, 2025 versus
Slide 55: Personalizing for Social Media
REIMAGINE WORK Personalizing for Social Media
Slide 56: Personalizing with Retailers
REIMAGINE WORK Personalizing with Retailers Regional Scaling Digital Superior Experiences Content Merchandising
Slide 57: Personalizing with Consumers Along Their Lead Journey
REIMAGINE WORK Personalizing with Consumers Along Their Lead Journey Moment of Worry +13% Address Uncertainty Sales Lift Drive Friction-Less Shopping Build Lasting Relationships Total Brita Elite Lead Filtering Pour Through Products. Source POS Circana Total US - Multi Outlet+, Latest 13 weeks endin
Slide 58: Gen AI in Action
Gen AI in Action REIMAGINE WORK
Slide 59: What's Next - One-to-One Communication
REIMAGINE WORK What's Next - One-to-One Communication From To Moms Carla + + Afternoon Morning, Afternoon, Evening + + Snacks Home, Work, Gym
Slide 60: What's Next - One-to-One Communication
REIMAGINE WORK What's Next - One-to-One Communication Mom with a Toddler Also has Older Kids Trying to Eat Healthier Herself
Slide 61: What's Next - One-to-One Communication
REIMAGINE WORK What's Next - One-to-One Communication Wisconsin Freshman Lives in the Dorms Understand the Moment
Slide 62: What's Next - Building on Our Foundation to Accelerate Growth
REIMAGINE What's Next - Building on Our Foundation to Accelerate Growth WORK 50% Media Spend is One-to-One (Specific Person in Specific Context)
Slide 63: Modernized Capability - Better Ideas, More Quickly
REIMAGINE WORK Modernized Capability - Better Ideas, More Quickly Leveraging data and AI to... • Reduce cycle time by 65% • Deliver significantly higher f consumer interest in ideas Digital Core • 3x more ideas in the pipeline
Slide 64: Strong Platform Innovation Examples
REIMAGINE WORK Strong Platform Innovation Examples Trash Superior Fresh Step Scentiva Strength Proven Power Year 1 Coming Year 2 Soon Year 3 Coming Soon Coming Soon Coming Soon
Slide 65: Strong Platform Innovation Examples
REIMAGINE WORK Strong Platform Innovation Examples Clorox Professional Hidden Valley Ranch Burt’s Bees EcoClean Year 1 Coming Year 2 Soon MULTI-PACK Coming Year 3 Soon Coming Coming Soon Soon
Slide 66: Modernized Capability - Core Operations
REIMAGINE WORK Modernized Capability - Core Operations Leveraging data and AI to accelerate efficiency & effectiveness • Increased supply chain responsiveness • Reduced operational costs and lower inventory levels • Improved customer service levels with increased forecast accuracy 66
Slide 67: Modernized Capabilities – What's Next
REIMAGINE WORK Modernized Capabilities – What's Next Leading Scaling Broadly Starting • Personalization with • Holistic margin • ERP implementation AI content management unlocks new value generation tools streams • Core operation • One-to-One efficiency levers communications • Digital core for innov
Slide 68: Evolving Portfolio to Reduce Volatility, Accelerate Growth and Enhance Margin
EVOLVE PORTFOLIO Evolving Portfolio to Reduce Volatility, Accelerate Growth and Enhance Margin Reduce Volatility Accelerate Growth & M&A a Strategic Lever Enhance Margin • Acquired majority • Drive superior consumer value • Criteria remain largely interest in Saudi JV • Grow share and households unc
Slide 69: Integrated Business Approach to Sustainability
IGNITE Integrated Business Approach to Sustainability Maximize Value Creation Manage Risk
Slide 70: Financial Update
Financial Update Kevin Jacobsen EVP & Chief Financial Officer Luc Bellet Incoming EVP & Chief Financial Officer
Slide 71: Key Messages
Key Messages • Clorox has a long track record of creating shareholder value • As part of our IGNITE strategy, our intent is to accelerate our financial performance • We remain confident in our ability to drive profitable growth and create long-term shareholder value 71
Slide 72: Long Track Record of Creating Shareholder Value
Long Track Record of Creating Shareholder Value 617 +8 % >$15B 20Y 20Y 384 Annualized Capital TSR Return SOURCE: FactSet. Total Shareholder Return as of December 31, 2024. 20Y Capital return as of June 30, 2024. 72
Slide 73: Healthy Free Cash Flow Generation Fuels Business Reinvestment & Cash Returned to Shareholders
Healthy Free Cash Flow Generation Fuels Business Reinvestment & Cash Returned to Shareholders Goal Average 11-13% 12% 19% 13% 13% 11-13% 8% 7% FY20 FY21 FY22 FY23 FY24 FY25 Outlook* Free cash flow as a percentage of net sales. Free cash flow (a non-GAAP measure) represents net cash (GAAP measure) le
Slide 74: Disciplined Uses of Cash
Disciplined Uses of Cash Consistent Reinvestment Support for Dividend Growth >50Y ~8% Supply Brands Capabilities Dividend 20Y Dividend Chain Payment Growth 11-13% Free Cash Flow Maintain Debt Leverage (1) Strong Cash Return (2) 2.9x $1.5 B 2.5x 2 - 2.5x 2.2x 1.9x 1.9x ~$0.9 B $0.8 B $0.6 B $0.6 B $0
Slide 75: Disciplined Uses of Cash Driving Top-Tier ROIC
Disciplined Uses of Cash Driving Top-Tier ROIC CLX 24% Peer average 16% Return on invested capital (ROIC) 5-yr average as of fiscal year ending June 30, 2024. ROIC (a non-GAAP measure) is calculated as earnings before income taxes and interest expense (GAAP measures), adjusted for other nonrecurring
Slide 76: Focused On Delivering Accelerated Financial Performance
Focused On Delivering Accelerated Financial Performance FY14-FY19 IGNITE Strategy Sales Growth +2% +3 to 5% Adj. EBIT Margin Improvement(1) Flat +25 to 50bps Free Cash Flow (2) +12% 11 to 13% (1) Adjusted EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding i
Slide 77: Accelerating Top-Line Growth
Accelerating Top-Line Growth … • Focusing on bigger, stickier innovation platforms • Leveraging new growth runways, supported by lasting shifts in consumer behavior 3 to 5% • Building new net revenue management capabilities • Evolving our portfolio to accelerate profitable growth • FY19-24: Delivere
Slide 78: … And Expanding Margins
… And Expanding Margins • Long track record of cost savings • Proven ability to price to recover ~44% inflation 36% +800bps • Building new net revenue management capabilities • Divestitures supporting margin expansion FY22 FY25 Outlook* • On track to rebuild Gross Margin (*) Based on Outlook as of F
Slide 79: FY25 Financial Outlook - Our Work Continues
FY25 Financial Outlook - Our Work Continues FY24 FY25 Outlook(3) Organic Sales Growth(1) Flat +4% to 7% +3% to 5% (3) Gross Margin Expansion +360bps +125bps to 150bps Adjusted EPS Growth(2) +21% +13% to 19% +9% to 12% (3) (1) Organic sales growth (a non-GAAP measure) is defined as net sales growth /
Slide 80: Ecosystem to Deliver Consistent Profitable Growth
Ecosystem to Deliver Consistent Profitable Growth 80
Slide 81: Confidence in Our Ability to Continue Driving Top-Line Growth
Confidence in Our Ability to Continue Driving Top-Line Growth … Building on Strong Foundation: Bigger, stickier innovation platforms, robust demand creation model and benefits from portfolio evolution Leveraging Transformation and scaling capabilities to: • Build multi-year pipeline of net revenue m
Slide 82: … And Expanding EBIT Margin 25 to 50bps
… And Expanding EBIT Margin 25 to 50bps Building on Strong Foundation: Cost savings track record, pricing capability, benefits from divestitures Leveraging Transformation and scaling capabilities to: • Strengthen our cost savings pipeline • Reduce S&A to 13% of sales over time • Improve visibility a
Slide 83: Long-Term Investment Case Remains Attractive
Long-Term Investment Case Remains Attractive • Continue to invest to strengthen our competitive advantage • Attractive business model that delivers strong cash flow • Continue to be disciplined in how we invest our cash 83
Slide 84: Well Positioned to Continue to Build Earnings & Create Long-Term Shareholder Value
Well Positioned to Continue to Build Earnings & Create Long-Term Shareholder Value • Advantaged portfolio of superior value brands in essential categories supported with continued investment • We are transforming into a faster-growing, more resilient company by modernizing our capabilities, executin
Slide 85: CAGNY 2025 Appendix
o The Clorox Company CAGNY 2025 APPENDIX
Slide 86: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Dollars in millions & percentages based on rounded numbers Fiscal Fiscal Fiscal Fiscal Fiscal Year Year Year Year Year 2020 2021 2022 2023 2024 Net cash provided by operations – GAAP $1,546 $1,276 $786 $1,158 $695 Less: Capital expenditures $254 $331 $251 $228 $212 Free
Slide 87: Debt to Adjusted EBITDA Reconciliation (Debt Leverage)
Debt to Adjusted EBITDA Reconciliation (Debt Leverage) FY20 FY21 FY22 FY23 FY24 Dollars in millions & percentages based on rounded numbers 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 Earnings before income taxes $1,185 $900 $607 $238 $398 Interest income ($2) ($5) ($5) ($16) ($23) Interest exp
Slide 88: Debt to Adjusted EBITDA Reconciliation
Debt to Adjusted EBITDA Reconciliation (Debt Leverage) (1) EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income and interest expense, as reported above. EBIT margin is the ratio of EBIT to net sales. (2) Adjusted earnings (losses) before inter
Slide 89: Return on Invested Capital Reconciliation
Return on Invested Capital Reconciliation Dollars in Millions and percentages based on rounded numbers FY20 FY21 FY22 FY23 FY24 Earnings before income taxes (GAAP measure) $ 1,185 $ 900 $ 607 $ 238 $ 398 Add back: Certain U.S. GAAP charges (2) $ 357 $ 61 $ 605 $ 580 Interest expense $ 99 $ 99 $ 106
Slide 90: Return on Invested Capital Reconciliation
Return on Invested Capital Reconciliation (1) In accordance with SEC's Regulation G, this schedule provides the definition of a non-GAAP measure and the reconciliation to the most closely related GAAP measure. Return on invested capital (ROIC), a non-GAAP measure is calculated as earnings before inc
Slide 91: Organic Sales Growth / (Decrease) Reconciliation
Organic Sales Growth / (Decrease) Reconciliation The following table provides a reconciliation of organic sales growth / (decrease) (non-GAAP) to net sales growth / (decrease) (GAAP), the most comparable GAAP measure: (1) Organic sales growth (a non-GAAP measure) is defined as net sales growth / (de
Slide 92: Adjusted Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation Dollars in Millions except per share data The following table provides reconciliation of adjusted diluted earnings per share (non-GAAP) to diluted earnings per share, the most comparable GAAP measure: (1) In the twelve months ended Jun. 30, 2024, th