Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Q3 FY2021 Earnings Presentation
26 slides from Prestige Consumer Healthcare's earnings presentation, November 2020
Slide 1: Fiscal 3Q Investor Presentation
N o v e m b e r, 2 0 2 0 Fiscal 3Q Investor Presentation
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, EPS, and free cash flow; the Company’s abi
Slide 3: Contents
Contents I. Introduction to Prestige Consumer Healthcare II. Brand Building in a Dynamic World III. Financial Profile & Capital Allocation IV. The Road Ahead November 2020 Investor Presentation
Slide 4: Introduction to Prestige Consumer Healthcare
Introduction to Prestige Consumer Healthcare November 2020 Investor Presentation
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 November 2020 Investor Presentation
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 10% Women’s Dermatologicals Health #1 Enemas & Suppositories 11% 26% #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 in a Dynamic World
Brand Building in a Dynamic World November 2020 Investor Presentation
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 November 2020 Investor Presentation 10
Slide 11: Playbook Remains Consistent in an Evolving Retail Environment
Playbook Remains Consistent in an Evolving 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 ◼ 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: Winning in Consumer Shift to Online
Winning in Consumer Shift to Online eCommerce as a % Retail Sales Online Tools Increase Consumer +122% Conversion ◼ Growing eCommerce trend continued into Q2; eCommerce representing 10%+ of Consumers consumer retail sales in 1H Continue to – Robust growth across all Seek Treat at eCommerce partners
Slide 14: Financial Profile and Capital Allocation
Financial Profile and Capital Allocation November 2020 Investor Presentation
Slide 15: 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 September 30 of ~$1.5 billion(3), leverage ratio of 4.3x(4) Invest in Current Brands to Drive 1 Organic Growth — Target leverage ratio(4) of between 3.5x and 5.0x — A
Slide 16: …and Best-in-Class Free Cash Flow Conversion
…and Best-in-Class Free Cash Flow Conversion FCF 129% Conversion: 125% 117% 106% 106% 11% 83% 83% 8% 75% 8% 8% 58% FCF 5% Yield: 4% 4% 4% 4% 4% CHD CL CLX PG EPC HELE JNJ ENR Source: FactSet data as of November 10, 2020; comparable set includes selected HPC companies Note: Free Cash Flow Conversion
Slide 17: Strong and Consistent Cash Flow Leads to Rapid De-Levering
Strong and Consistent Cash Flow Leads to Rapid De-Levering Adjusted Free Cash Flow(3) $197 $208 $202 $207 $165 $185 $127 $131 $67 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Leverage Ratio(4) ~5.0x ~5.2x ~5.0x ~5.7x ~5.2x ~5.0x ~4.3x ~4.3x ~4.7x 3.5x-5.0x long-term target range FY 12 FY 13
Slide 18: The Road Ahead
The Road Ahead November 2020 Investor Presentation
Slide 19: Strategy in Place for Value Creation
Strategy in Place for Value Creation ◼ Brand-Building designed to grow categories and connect with consumers Long-Term Strategy ◼ Strategy and tactics performing well in disrupted environment ◼ Continuity plans continue to protect service levels Business Continuity ◼ Investing in inventory has paid
Slide 20: Outlook: Staying the Strategic Course to Create Value
Outlook: Staying the Strategic Course to Create Value ◼ Business and strategy remain well-positioned in changing environment ◼ Market share solid and growing during pandemic environment Top Line Trends ◼ Anticipate FY 21 Reported Revenue of ~$925 million — Expect similar dollar performance to 1H; co
Slide 21: Appendix
Appendix November 2020 Investor Presentation
Slide 22: 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 November 5, 2020 in the “About Non-GAAP Financial Measures” section. (2) Total company consum
Slide 23: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 (In Thousands) GAAP Total Revenues $ 237,422 $ 238,069 $ 466,816 $ 470,223 Revenue Change (0.3%) (0.7%) Adjustments: Impact of foreign currency exchange rates - 624 - (
Slide 24: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA a) Items related to new warehouse represent costs to transition to the new warehouse and duplicate costs incurred during the transition. Adjusted Free Cash Flow Three Months Ended September 30, Six Months Ended September 30, 2020 2019 2020 2019 (I
Slide 25: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Projected EPS Projected FY'21 GAAP EPS $ 3.28 Adjustments: Normalized tax rate adjustment for discrete income tax items (a) (0.10) Total Adjustments (0.10) Projected Non-GAAP Adjusted EPS $ 3.18 a) Income tax adjustment to adjust for discrete income tax items. Pr
Slide 26: November 2020 Investor Presentation
November 2020 Investor Presentation
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