Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Prestige Brands Holdings — Q3 FY2011 Earnings Presentation
23 slides from Prestige Consumer Healthcare's earnings presentation, Feb 9, 2011
Slide 1: Review of Third Quarter Results
PrestigeBrands Review of Third Quarter Results Matt Mannelly, President & CEO Ron Lombardi, CFO 011
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure During this call statements may be made by management of their beliefs and expectations as to the Company's future operating results. Statements of management's expectations of what might occur with respect to future operating results are what is known as forward-looking state
Slide 3: Q3 Key Business Highlights
Q3 Key Business Highlights Strong overall revenue growth in Q3 driven by BOTH core OTC and Blacksmith acquisition in addition to continued strong free cash flow. Growth strategy for core OTC franchise is underway — Increased investment in A&P and new product strategy driving revenue growth - Core OT
Slide 4: OTC Portfolio with Core Brands Following Blacksmith Transaction
OTC Portfolio with 8 Core Brands Following Blacksmith Transaction «| a. | rag los & mee =I eo By csumgt mom ) + #4 Little Remedies® ~ Mma | as BE Doctors preteen a : | #3] Doctors BXteraxerencteae 6 OTC Brands Greater Than $20 Million Net Sales PPE bite et etal | eae
Slide 5: Core OTC Business Represents 66% of the Portfolio and 90% of the OTC Segment
Core OTC Business Represents 66% of the Portfolio and 90% of the OTC Segment PrestigeBrands PréstigeBrands + RSS PrestigeBrands Household ‘ore Household ore Household tye ore Marne
Slide 6: Increased A&P Support of Core OTC Franchise Focused on Innovative Campaigns and New Product Launches
Increased A&P Support of Core OTC Franchise Focused on Innovative Campaigns and New Product Launches A&P Strategy + Ben Stein advertising + Lozenge TV campaign + Print campaign + Digital marketing + Pediatrician marketing New. Current New r Products i H #5 } + Clear Eyes@ Complete += Improved ergono
Slide 7: Commitment to Equity Building Brand Support of Acquired Brands
Commitment to Equity Building Brand Support of Acquired Brands A&P Strategy PPE eit et etal | ies
Slide 8: A&P Spending Behind Core OTC Brands
A&P Spending Behind Core OTC Brands Resulted in Core OTC Q3 A&P Spending HHBFY2010 (% of Net Revenue) HIFY2011 (% of Net Revenue) 33.8% eet: Dame veiigiens * Bases Core OTC Core OTe 2 Sa = Aigstis | SE pias + aa? = | SS omer wow Satie Oa PPE et elt etal | ie
Slide 9: The Core OTC Portfolio Significantly Outperforming the Category
... The Core OTC Portfolio Significantly Outperforming the Category... — PiéstigeBrands ec erand Category PBH Core: 9.3% BSB Gore: 60.2% Total Core Category: (0.5%) Category: (8.3%) 0 we srands Core OTC ) 26.5% 61%) Gam) (1.0%) 11.6%) (10.0%) (11.8%) ‘Souros: Latest 12-weak IRI FDMK dollar sles fort
Slide 10: Consumption Trends Accelerating in Recent Periods
hh Consumption Trends Accelerating in Recent Periods PréstigeBrands Core OTC mmPrestige Core OTC Hicategory 35.0% | = La Week e An ae ia” i FE Doctor's pedi Fon Coanponad il, Little Remedies” Ffierdent Gear Source: Latest 125 181 FOM dolar sales forthe peri ending December 28, 2010, _ i " stigeBrand
Slide 11: Household Product Segment Maintained Share Despite Soft Category Trends in Q3
Household Product Segment Maintained Share Despite Soft Category Trends in Q3 Q3 Consumption Trends Q3 Consumption Dynamics rand Hiicategory (12.0%) ‘Abrasive Non-Abrasive All Purpose Cleaner “Souros: IRI FDMK sales forthe latest 1 3k petiod ending December 28, 2010 Pee ett Serre peel Consumption tr
Slide 12: Blacksmith Brands Integration on Track
Blacksmith Brands Integration on Track v v v v v v PPE hit et petal | eae Marketing support and structure 100% integrated Advertising campaigns began in November with POS results showing solid responses Prestige sales force is up to speed and managing brands with brokers/outside sales force while we
Slide 13: Successful Acquisition of Dramamine Brand from McNeil-PPC, Inc.
Successful Acquisition of Dramamine. Brand from McNeil-PPC, Inc. 4 On January 6, 2011, Prestige completed the acquisition of the Dramaminee brand in the US. Effective purchase price of $62 million including the present value of tax attributes of approximately $14 million v4 Dramamine is the #1 Brand
Slide 14: Continued Focus on Growth of the Core OTC Business with the Dramamine Acquisition
Continued Focus on Growth of the Core OTC Business with the Drama ie. Acquisition PrcfigeBranis + Pomerm* Household ‘ore Household ore Household 9 Core OTC Brands Brands
Slide 15: Introduction to Financial Results
Introduction to Financial Results JS Strong top-line revenue growth for Prestige’s core OTC brands and Blacksmith Brands JS Significant A&P investment behind core OTC brands and Blacksmith Brands acquisition driving revenue growth trends SV Net Income and EPS growth over FY2010 Q3 SV Solid Q3 perfor
Slide 16: Q3 Consolidated Financial Summary
Q3 Consolidated Financial Summary ee ee 93 = Net revenue grew by $16.8 million “FY2011__F¥2010_% Change or 22.7% over year ago, driven Net Revenue 90.6 $ 738 22.7% $ $ primarily by core OTC segment Adjusted Gross Profit”? 416 39.4 21.6% 36 Margin 52.5% 53.0% = 2.1% Growth excluding aap 130 60 117.5%
Slide 17: December YTD Consolidated Financial Summary
December YTD Consolidated Financial Summary a ee December YTD FYZ011_ _FYZ010_%Change ~ Net revenue grew by $17.5million Net Revenue $ 240.1 $ 2227 7.8% or 7.8% over year ago, driven ‘Adjusted Gross Profit 1281 1185 ~~ 8.1%. Primarily by the core OTC segment % Margin 53.3% 53.2% - 1% Growth excludin
Slide 18: Q3 Net Income and EPS Reconciliation
Q3 Net Income and EPS Reconciliation Qa December YTD Net Income EPS Net Income __ EPS. Q3 FY2011 Adjusted for One-time Items $ 103 $ 021 $ 309 $ 062 One-time Adjustments Incremental Interest Expense to Finance Dramamine® (0.8) (0.02) @.a) (0.02) Inventory Step-up Associated with Blacksmith Purchase
Slide 19: Q3 Segment Financial Summary
Q3 Segment Financial Summary 3. Frousehord ore” Cleaning __ Consolidated Not Revenue FY2011 S615 231 $ 906 Fv2010 48.6 273 73.8 9% Change 44.9% (15.196) 22.7% Gross Profit. Fy2011 40.2 14 47.6 36 Margin 59.5% 31.9% 52.556 Fv2010 29.4 2.8 39.1 96 Margin 63.196 35.9% 53.056 % Change 36.796 (24.6%) 21.
Slide 20: Continued Strong Cash Flow from Operations
Continued Strong Cash Flow from Operations Fy2011 Qs December YTD Net Income $ 22 $ 22.8 Non-cash operating items 3.5 17.6 Working Capital 10.8 17.2 Other 23 44 [cash Flow from Operations $ 18.8 $ 61.7 Dollars in tions PPE eit et etal | ies
Slide 21: Well Positioned Heading into FY2012
Well Positioned Heading into FY2012 v Retail environment showing signs of improvement vf Continued focused A&P support behind core OTC brands — Investment to support continued growth for PediaCares, Little Remediese, Chloraseptice and Luden'se in heart of Cough/Cold season — Increased A&P support fo
Slide 22: Q3 Key Business Summary
Q3 Key Business Summary Strong overall revenue growth in Q3 driven by BOTH core OTC and Blacksmith acquisition in addition to continued strong free cash flow. Growth strategy for core OTC franchise is underway — Increased investment in A&P and new product strategy driving revenue growth - Core OTC c
Slide 23: PrestigeBrands
PrestigeBrands —_ PrestigeBrands zs
Prestige Brands Holdings — Q3 FY2011 Earnings Presentation on 6ix