Clorox Company (the) · NYSE:CLX
Clorox Company (the) — The Clorox Company — Shareholder Meeting (November 2016)
36 slides from Clorox Company (the)'s shareholder meeting presentation, Nov 16, 2016
Slide 1: 2016 Annual Meeting of Stockholders
2016 Annual Meeting of Stockholders Oakland, CA / November 16, 2016
Slide 2: Business Update
Business Update Steve Robb Executive Vice President and Chief Financial Officer Oakland, CA / November 16, 2016
Slide 3: 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, foreign currencies, and foreign currency exchange rates, cash flows, plans, objectives, expectations, gr
Slide 4: Key Messages
KEY MESSAGES • Strategy 2020 continues to produce solid long-term shareholder return, with strong sales growth in FY16 and Q1 FY17 • FY17 outlook reflects progress on strategy accelerators in a difficult macro economic environment • Long-term investment case remains solid 4
Slide 5: Strong Progress Across Strategy Accelerators
STRONG PROGRESS ACROSS STRATEGY ACCELERATORS Improving Digital Consumer Cutting Speed to Engagement Through Strategic Market by 50% Partners Investing Behind Growth FY16 Record-High Brands to Accelerate Top-line Engagement 5
Slide 6: Strategic Investments in Innovation Driving Growth
STRATEGIC INVESTMENTS IN INNOVATION DRIVING GROWTH Glad with Clorox Clothes Burt’s Natural Clorox Wipes with Clorox Antimicrobial (International) Lipsticks Micro-Scrubbers Fresh Step Stephen Curry Brita Infinity Hidden Valley with Clorox Bleach with Febreze Partnership “Connected” Pitcher Greek Yogu
Slide 7: Good Start to FY17
GOOD START TO FY17 Q1 Sales 4% 6% (currency neutral) Gross Margin -60 bps Diluted EPS (cont. ops) $1.36 (+3%) EBIT (a non-GAAP measure) represents earnings from continuing operations before income taxes (a GAAP measure), excluding interest income & interest expense.. EBIT margin is a measure of EBIT
Slide 8: FY17 Outlook
FY17 OUTLOOK AS OF NOV. 2, 2016 Sales growth 4 - 6% growth currency neutral 2 - 4% EBIT margin Driven by lower SG&A 25 - 50 bps expansion Diluted EPS 6 -10% growth vs. year ago $5.23 - 5.43* * Reflects Q1FY17 adoption of ASU 2016-09 (recently issued accounting standards for the accounting of employe
Slide 9: Long-Term Investment Case Remains Solid
LONG-TERM INVESTMENT CASE REMAINS SOLID • Investing behind leading brands with right to win in order to grow categories and share – 3%+ annual sales growth from innovation – Advertising projected at about 10% of sales in FY17 • Margin improvement opportunities continue to exist – Strong cost savings
Slide 10: Strong Long-Term Shareholder Return
STRONG LONG-TERM SHAREHOLDER RETURN
Slide 11: Our Mission
OUR MISSION We make everyday life better, every day. 11
Slide 12: The Clorox Evolution in Health & Wellness
The Clorox Evolution in Health & Wellness Dawn Willoughby Executive Vice President and Chief Operating Officer – Cleaning, International and Corporate Strategy
Slide 13: Clorox Health & Wellness Journey
CLOROX HEALTH & WELLNESS JOURNEY 13
Slide 14: Clorox Health & Wellness Journey
CLOROX HEALTH & WELLNESS JOURNEY 14
Slide 15: Clorox Health & Wellness Journey: In Me
CLOROX HEALTH & WELLNESS JOURNEY “IN ME” 15
Slide 16: Health & Wellness Product Portfolio: In Me
HEALTH & WELLNESS PRODUCT PORTFOLIO: ‘IN ME’ 16
Slide 17: Health & Wellness Product Portfolio: On Me
HEALTH & WELLNESS PRODUCT PORTFOLIO: ‘ON ME’ 17
Slide 18: Health & Wellness Product Portfolio: Around Me
HEALTH & WELLNESS PRODUCT PORTFOLIO: ‘AROUND ME’ 18
Slide 19: Health & Wellness Around the World
HEALTH & WELLNESS AROUND THE WORLD 19
Slide 20: Healthy Hydration with Brita
Healthy Hydration with Brita Nick Vlahos Executive Vice President and Chief Operating Officer – Household, Lifestyle and Core Global Functions Oakland, CA / November 16, 2016
Slide 21: Water: A Healthier Choice
WATER: A HEALTHIER CHOICE Solution to health challenges: • Obesity • Heart disease • Diabetes Consumer feedback: • 81% say drinking water best way to live healthier life • >50% want to drink more water 21
Slide 22: A Powerful Messenger
A POWERFUL MESSENGER Stephen Curry New Brita Brand Ambassador 22
Slide 23: Amplifying the Message
AMPLIFYING THE MESSAGE Partnership for a Healthier America 23
Slide 24: Making a Big Splash in Store
MAKING A BIG SPLASH IN STORE Sam’s Club Walmart HomeDepot.com Mobile Shopper Advertising 24
Slide 25: And Making a Difference in People's Health
AND MAKING A DIFFERENCE IN PEOPLE’S HEALTH 25
Slide 26: Renew Life: Our Latest Chapter in Health & Wellness
Renew Life: Our Latest Chapter in Health & Wellness Craig Stevenson Vice President and General Manager – Renew Life and Global Burt’s Bees Oakland, CA / November 16, 2016
Slide 27: What Is Renew Life?
WHAT IS RENEW LIFE? 27 *These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
Slide 28: Improving Consumers' Lives: Probiotics
IMPROVING CONSUMERS’ LIVES: PROBIOTICS Restore Digestive Balance & Support Immune Health* 28 *These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
Slide 29: Improving Consumers' Lives: Cleanses
IMPROVING CONSUMERS’ LIVES: CLEANSES Cleanse, Reset, Refresh* 29 *These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure, or prevent any disease.
Slide 30: The Next Chapter for Clorox in Health & Wellness
THE NEXT CHAPTER FOR CLOROX IN HEALTH & WELLNESS Health & US-Centric Clear Plan for Wellness Value Creation 30
Slide 31: Opportunity to Grow Behind Core Capabilities
OPPORTUNITY TO GROW BEHIND CORE CAPABILITIES Natural Retailer Mass Retailer Category > 20% vs. YA Category > 15% vs YA 31 Source: SPINS and Whole Foods 52 weeks ending 7/10/16. IRI MULO 52 weeks ending 7/10/16
Slide 32: Improving Consumers' Lives: In Their Own Words
IMPROVING CONSUMERS’ LIVES: IN THEIR OWN WORDS “We love Renew Life and everyone in our family uses at least one of your products!” 32
Slide 33: Benno Dorer, Chairman and CEO
Benno Dorer Chairman and CEO 33
Slide 34: Clorox Health & Wellness Journey
CLOROX HEALTH & WELLNESS JOURNEY We make everyday life better, every day. 34
Slide 35: Clorox Health & Wellness Journey
CLOROX HEALTH & WELLNESS JOURNEY We make everyday life better, for more consumers, every day. 35
Slide 36: Closing and Q&A
Closing and Q&A ‘ax & 2 fe! x fal
The Clorox Company — Shareholder Meeting (November 2016) on 6ix