Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Sidoti & Co Fall Investor Conference 2019
26 slides from Prestige Consumer Healthcare's conference presentation, Sep 25, 2019
Slide 1: Sidoti & Co Fall Investor Conference
a Prestige Consumer HEALTHCARE Sidoti & Co Fall Investor Conference September 25, 2019 a UJ
Slide 2: Forward-looking statements
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, organic growth, adjusted EPS, and adjusted free cash flow; the ma
Slide 3: Contents and Attendees
Contents Attendees I. Introduction to Prestige Consumer Healthcare gon Lombardi Chief Executive Officer ll. Long-Term Growth Through Brand Building _ Christine Sacco Chief Financial Officer Ill. Financial Profile ¢& Capital Allocation Phil Terpolilti Director, Investor Relations IV. The Road Ahead e
Slide 4: I. Introduction to Prestige Consumer Healthcare
|. Introduction to Prestige Consumer Healthcare Summers €ve Dramamine Le . Cear EP eyes. MONISTAT fies oa
Slide 5: Helping Consumers Care for Themselves
Helping Consumers Care for Themselves © NS. wer Gy throat drops for every cold season 2 doses of pain relief per week» ys @ infections treated annually Sidoti Fall 2019 Investor Conference ica ; eye drops per year (ear MURINE
Slide 6: Total Sales by Category
Total Sales* by Category #1 Brands Represent Two-Thirds of Total Sales* Dermatologicals 10% Women’s Eye & Health Ear Care 27% 12% Oral Care 11% 17% 11% GI Cough / 12% Cold Analgesics * FY’19 Revenues, Excludes Divested Household Cleaning Segment & Other OTC (less than 1%)
Slide 7: Business Positioned for Long-Term Success
Business Positioned for Long-Term Success eS ee Sidoti Fall 2019 Investor Conference v
Slide 8: Business Positioned for Long-Term Success
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 allocation priorities Capital Allocation Opt
Slide 9: II. Long-Term Growth Through Brand Building
Il. Long-Term Growth Through Brand Building Summers €ve Dramamine ry , Clear Goodys eyes. .BCY MONISTAT [eso
Slide 10: Boomers Accelerating Demand for Health Care
Boomers Accelerating Employers Shift Demand for Health Responsibility to Care Employees ACA Increasing Growing Incidence of Demand with More Chronic Disease Newly Insured Millennials Interest in Shortage of Primary Health & Wellness Care Physicians
Slide 11: Health & Wellness Retail Opportunity is Large
Health & Wellness Retail Opportunity is Large Retail Traffic Driver Need-based products sought by U.S. “Self-Care” Marketplace consumers Retailers dedicating more shelf space to Health and Wellness $450 Billion Retail channel agnostic Category growth focus helps buyers Self-Care E-Commerce B
Slide 12: Power Core, Core, International, Other OTC
Power Core Core International Other OTC 10% 50% 10% Sales Contribution to Portfolio (Approximate %) 30% # of Brands Representative Brands Long-Term Organic Growth Target (approximate):
Slide 13: Extend Brand Through Better Consumer Experience or Claims
Extend Brand Through Better Consumer Experience or Claims Innovate Through Technology Expand Brand in New Monthly Professional Professional Cough Nausea Shampoo Channels or Categories Cycle Alternative Alternative Suppressant
Slide 14: Innovation reduces barriers to entry and adds new users
Innovation reduces barriers to entry and adds new users ~$60M Retail Sales* New Category New Formulation More Impactful New Form Revitalized Claims Packaging *U.S. IRI MULO + C-store for the 52 weeks ended 3-24-19
Slide 15: History of Winning
Top PBH Brands Rank U.S. Market Share* FY19 vs Category Summer’s Eve Monistat #1 #1 55% 60% History of Winning Continued in FY19 BC/Goody’s #1 100%/5%*** Clear Eyes #1 25% DenTek #2 25% Dramamine #1 50% ~2.5x Average Share vs. Largest Competitor Luden’s #3 5% Fleet #1 50% Compound W #1 45% Chlorasep
Slide 16: Long-Term Brand-Building Toolkit
Long-Term Brand-Building Toolkit Growing the Category and Outpacing Private Label 2018 Performance Consumption Growth Leverage portfolio’s long-standing brand heritage with focused digital and content marketing 1.8% Develop consumer insights to refine brand- building efforts 1.1% Focus new pro
Slide 17: III. Financial Profile and Capital Allocation
Ill. Financial Profile and Capital Allocation Summers €ve Dramamine Le . Cear EP eyes. MONISTAT fies oa
Slide 18: Key Attributes and Positioning
Key Attributes and Positioning Debt at June 30 of ~$1.8 billion and leverage ratio of 5.0x(4) Acquisition of DenTek brand for $220 million CY 16 – Target leverage ratio of between 3.5x to less than 5.0x Divestiture of 7 non-core brands for $110 million – Expect to reach ~4.7x leverage by year-
Slide 19: Free Cash Flow and Leverage History
$197 $208 $202 $200+ $165 $185 $127 $131 $67 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 E ~5.0x ~5.2x ~5.0x ~5.7x ~5.2x ~5.0x ~4.3x ~4.3x ~4.7x FY 12 FY 13 FY 14 FY 15 * FY 16 FY 17 FY 18 FY 19 FY 20 E Dollar values in millions. * Peak leverage of 5.75x at close of the Insight Acquisition
Slide 20: Annual Incremental FCF FY20E-FY22E
Annual incremental FCF $600+ $200+ $400+ $200+ $200+ $400 $200 FY 20E FY 21E FY 22E
Slide 21: IV. The Road Ahead
IV. The Road Ahead Summers €ve Dramamine Clear | Goodys' a Chloraseptic iam eyes, tBC) a a MONISTAT [eee
Slide 22: Cash Generation and Capital Allocation Options
Cash Generation Capital Allocation Options
Slide 23: Our Long-Term Value Creation Strategy
Our Long-Term Value Creation Strategy Upside Potential SS Shareholder Value Enhancement Sidoti Fall 2019 Investor Conference 23 Long-Term E.P.S. Growth
Slide 24: Non-GAAP footnotes
(1) Organic Revenue is a Non-GAAP financial measures and is reconciled to the most closely related GAAP financial measure and defined in our August 1, 2019 earnings release in the “About Non-GAAP Financial Measures” section. (2) Adjusted Free Cash Flow and Net Debt are Non-GAAP financial measures an
Slide 25: GAAP Net Income to Free Cash Flow Reconciliation
2013 2014 2015 2016 2017 2018 2019 GAAP Net Income $ 65,505 $ 72,615 $ 78,260 $ 99,907 $ 69,395 $ 339,570 $ (35,800) Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 59,497 52,562 65,998 98,181 92,613 (113,698) 233,4
Slide 26: Projected Free Cash Flow
2020 Projected Free Cash Flow (In millions) Projected FY'20 GAAP Net Cash provided by operating activities $ 205 Additions to property and equipment for cash (15) Projected Non-GAAP Free Cash Flow 190 Payments associated with integration of new logistics provider 10 Non-GAAP Adjusted Free Cash Flow
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