Clorox Company (the) · NYSE:CLX
Clorox Company (the) — The Clorox Company — 2018 Bernstein Strategic Decisions Conference
14 slides from Clorox Company (the)'s conference presentation, May 30, 2018
Slide 1: Bernstein Strategic Decision Conference
Bernstein Strategic Decision Conference Benno Dorer Kevin Jacobsen Chairman and Chief Executive Officer Chief Financial Officer May 2018
Slide 2: Safe Harbor
Safe Harbor Except for historical information, matters discussed in this presentation, including statements about the success of the Company’s future volume, sales, costs, cost savings, earnings, earnings per share, diluted earnings per share, margins, foreign currencies, foreign currency exchange r
Slide 3: Key Messages
Key Messages • US-centric company with leading brands and consistent track record of generating strong cash flow • Addressing near-term macro headwinds with strong execution and consistency in strategy • Confident in our strategy and ability to deliver long term shareholder value 3
Slide 4: Who We Are
Who We Are International : 17% Cleaning : 34% Latin America 9% Home Care 19% Canada 3% Laundry 9% Australia / NZ 2% FY17 Professional 6% Rest of World 3% $6B Lifestyle : 16% in Sales Household : 33% 9% 14% 4% 10% Latest Addition: 7% 3% 2% 4 Note: Transaction closed in April 2018. Nutranext generated
Slide 5: How We Create Value
How We Create Value 5
Slide 6: 2020 Strategy
2020 Strategy Mission • We make everyday life better, every day • Maximize economic profit Objectives • Big-share brands in mid-sized categories and countries • Drive superior consumer value behind strong brand Strategy investment, innovation and technology transformation • Accelerate portfolio mome
Slide 7: Long-Term Growth Algorithm
Long-Term Growth Algorithm U.S. Domestic International Total Company ~80% of Clorox Sales ~20% of Clorox Sales +2-4% annual growth +5-7% annual growth annual growth 1.5 - 3.0 pts 1.0 - 1.5 pts = +3 to 5pts company growth company growth Annual EBIT Margin Improvement: +25 to +50 bps Annual Free Cash
Slide 8: Over $2B Returned to Shareholders in the Last 4 Years
Over $2B Returned to Shareholders in the Last 4 Years $ in Millions Recently initiated $2B share repurchase program $532 $568 $442 $520 FY14 FY15 FY16 FY17 Cash Returned to Shareholders 8 Cash Returned to Shareholders is defined as Dividends Paid plus Share Repurchased less Options Exercised
Slide 9: Addressing Near-term Headwinds with Decisive Actions
Addressing Near-term Headwinds with Decisive Actions • Rising input costs putting near-term pressure on margins • Committed to keeping our business fundamentally strong and healthy through decisive and principled actions Margin Accretive Pricing Cost Savings Go Lean Innovation 9
Slide 10: Long-Term Investment Case Remains Solid
Long-Term Investment Case Remains Solid • Investing behind leading brands to grow categories and share − 3%+ annual growth from innovation − Healthy brand building investments, including digital/eCommerce • Margin improvement opportunities continue to exist − Leverage pricing power to mitigate input
Slide 11: Good Growth: Profitable, Sustainable, Responsible
Good Growth: Profitable, Sustainable, Responsible PERFORMANCE Commitment to PEOPLE Environment, 2020 Good Social, Strategy Growth & Corporate PRODUCTS Governance (ESG) PLANET PURPOSE 11
Slide 12: Q&A
Q&A Aw THE CLOROX COMPANY > Za
Slide 13: Appendix
THE CLOROX COMPANY > Ze Appendix cpavialesie
Slide 14: Strong Fit with Strategy and M&A Priority
Strong Fit with Strategy and M&A Priority • Transaction closed April 2018, purchase price $700M • Attractive mid-sized categories in Health and Wellness space with strong tailwinds • Leading brands in natural channels1 (Natural Vitality #1, Neocell #1, Rainbow Light #2) • Leverages Clorox capabiliti
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