Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q4 FY2020 Earnings Presentation
25 slides from Energizer's earnings presentation, Nov 12, 2020
Slide 1: Fiscal Q4 and FY 2020 Earnings
Exhibit 99.2 Fiscal Q4 and FY 2020 Earnings + November 12, 2020
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Energizer Holdings, Inc. (the “Company”) and its management may make certain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identifi
Slide 3: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. Forward- looking statements speak only as of the date they are made, and the Company undertakes no obligation to up
Slide 4: Financial Results: Fourth Quarter and Fiscal 2020
Financial Results + Fourth Quarter and Fiscal 2020
Slide 5: Key Metrics
Key Metrics METRIC Fiscal 2020 Fourth Quarter $0.59 (GAAP loss of $0.67) Fourth Quarter & Fiscal• COVID-19 2020 related costs Financial of $25 million, including Headlines $3 million of incremental interest, or $0.28 per diluted share Adjusted EPS* Fiscal 2020 $2.31 (GAAP earnings of $0.44) • COVID
Slide 6: Fourth Quarter 2020 Results
Fourth Quarter 2020 Results METRIC Fourth Quarter 2020 Net Sales on a reported basis of $763 million was up 6.1%, • Organic net sales up 6.1%, due to distribution gains (3%) and strong replenishments driven by increased demand (3%). Net Sales* • Battery organic sales up 3.2% • Auto Care organic sale
Slide 7: Adjusted EPS Q4 Fiscal 2019 to Q4 Fiscal 2020
Adjusted EPS* Q4 Fiscal 2019 to Q4 Fiscal 2020 * See non-GAAP reconciliations in the Appendix.
Slide 8: Adjusted EBITDA Q4 Fiscal 2019 to Q4 Fiscal 2020
Adjusted EBITDA* Q4 Fiscal 2019 to Q4 Fiscal 2020 * See non-GAAP reconciliations in the Appendix.
Slide 9: Comparison to Previous Guidance
Comparison to Previous Guidance Although we achieved strong topline growth, we did not achieve previously provided guidance due to three factors: Increased incremental COVID-19 costs of $6 million caused by elevated demand, primarily customer fines and penalties Increased costs associated with sourc
Slide 10: Fiscal 2020 Results
Fiscal 2020 Results METRIC Fiscal 2020 Net sales on a reported basis of $2,744.8 million was up 10%, inclusive of acquisitions from prior year • Organic net sales up 2.5%, driven by distribution gains (2.7%) and increased Net Sales* demand due to the impact of COVID, offset by declines due to year-o
Slide 11: Fiscal 2020 Results
Fiscal 2020 Results METRIC Fiscal 2020 Interest expense was $195 million up $34.6, excluding prior year acquisition costs of $66 million. The increase was due to a full year of Interest Expense interest on the acquisitions that closed in the second quarter FY2019 and interest incurred to improve liq
Slide 12: Adjusted EPS Fiscal 2019 to Fiscal 2020
Adjusted EPS* Fiscal 2019 to Fiscal 2020 *See non-GAAP reconciliations in the Appendix. ** Acquisitions includes the operating profit for the months the Company operated the business that were not included in fiscal 2019. *** Interest includes $0.35 from additional interest in fiscal 2020 from the d
Slide 13: Adjusted EBITDA Fiscal 2019 to Fiscal 2020
Adjusted EBITDA* Fiscal 2019 to Fiscal 2020 * See non-GAAP reconciliations in the Appendix. **Acquisitions includes the operating profit for the months the Company operated the business that were not included in fiscal 2019.
Slide 14: Outlook: Fiscal 2021
Outlook + Fiscal 2021
Slide 15: Fiscal 2021 Outlook Key Financial Metrics
Fiscal 2021 Outlook Key Financial Metrics METRIC Fiscal 2021 Outlook Net Sales Growth of 2% to 4% Adjusted EBITDA* $600 to $630 million Adjusted Free Cash $325 to $350 million Flow* Adjusted EPS * $2.95 - $3.25 Incremental $40 to $45 million with 75% to be realized in Synergies Cost of goods sold an
Slide 16: Fiscal 2021 Outlook Key Financial Metrics
Fiscal 2021 Outlook Key Financial Metrics METRIC Fiscal 2021 Outlook Adjusted Expected to be flat. Gross Margin Includes $15 of incremental COVID costs expected to be Rate incurred in the first quarter Normal Operations - $35 to $40 million Capital Spending Acquisition and Integration - $30 to $40 m
Slide 17: Long-Term Financial Algorithm
Long-Term Financial Algorithm + Fiscal 2021
Slide 18: Long-term Financial Algorithm
Long-term Financial Algorithm METRIC Long-term Target Revenue growth at or above the categories Net Sales (Normalized environment – flat to low-single digit Adjusted Low to mid- single digit growth EPS and EBITDA (Improving gross margin and SG&A % of net sales) Adjusted Free Cash Generate free cash
Slide 19: Appendix Materials
Appendix Materials 19
Slide 20: Non-GAAP Reconciliation: Consolidated Net Sales
Non-GAAP Reconciliation: Consolidated Net Sales (in millions) Organic revenue is the non-GAAP financial measurement of the change in revenue that excludes or otherwise adjusts for the impactof acquisitions, change in Argentina and impact of currency from the changes in foreign currency exchange rate
Slide 21: Non-GAAP Reconciliations: Gross Profit Margin
Non-GAAP Reconciliations: Gross Profit Margin (in millions) Adjusted Gross Margin as a percent of sales excludes the impact of costs related to acquisition and integration. 21
Slide 22: Non-GAAP Reconciliation: Adjusted SG&A
Non-GAAP Reconciliation: Adjusted SG&A (in millions) Adjusted SG&A as a percent of sales excludes the impact of costs related to acquisition and integration. 22
Slide 23: Non-GAAP Reconciliation: Adjusted EPS
Non-GAAP Reconciliation: Adjusted EPS (in millions, except per share data) (1) The Effective tax rate for the quarters ended September 30, 2020 and 2019 for the Adjusted - Non-GAAP Net Earnings and Diluted EPS was 24.6% and 14.1%, respectively, as calculated utilizing the statutory rate for where th
Slide 24: Non-GAAP Reconciliations: Adjusted EBITDA and Adjusted Free Cash Flow
Non-GAAP Reconciliations: Adjusted EBITDA and Adjusted Free Cash Flow (in millions) 24
Slide 25: Non-GAAP Reconciliations: Fiscal 2021 Outlook
Non-GAAP Reconciliations: Fiscal 2021 Outlook 25