Edgewell Personal Care Company · NYSE:EPC
Edgewell Personal Care — Raymond James Institutional Investors Conference 2022
30 slides from Edgewell Personal Care's conference presentation, Mar 7, 2022
Slide 1: Edgewell Personal Care
Edgewell Personal Care Raymond James Institutional Investors Conference March 7, 2022 Page 1 BOS 20201120 EPC investor day mate ...
Slide 2: Forward-looking statements
Forward-looking statements Please note that in this presentation we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 3: Non-GAAP financial measures
Non-GAAP financial measures While the Company reports financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"), this discussion also includes non-GAAP measures. These non-GAAP measures are referred to as "adjusted" or "organic" and exclude items such as rest
Slide 4: Today's Speakers
Today’s Speakers Dan Sullivan Chris Gough Chief Financial Officer VP Investor Relations and Treasury Page 4 BOS 20201120 EPC investor day mate ...
Slide 5: Key Takeaways for Today
Key Takeaways for Today: • A clear and compelling portfolio strategy to drive sustained topline growth • A financial algorithm that provides for consistent, long-term value creation • Clear proof points of demonstrated progress on our transformation efforts Page 5 BOS 20201120 EPC investor da ... 1-
Slide 6: Sustained Topline Growth
Sustained Topline Growth • PAGE 6
Slide 7: A Compelling Growth Strategy
A Compelling Growth Strategy Page 7 BOS 20201120 EPC investor day mate ...
Slide 8: Portfolio Diversification Driving Sustained Topline Growth
Portfolio Diversification Driving Sustained Topline Growth Leading Share Positions in Strong Brands in Growing Categories Recovering Categories Page 8 BOS 20201120 EPC investor day mate ...
Slide 9: The Case for Growth – Right to Win Portfolio
The Case for Growth – Right to Win Portfolio Unmatched Sun Business A Leading Grooming Portfolio The BRAND in Skin Hygiene 120bps of share gains in >10% growth profile last >50% US share position in the US last 2 sun seasons two years the category • Market leader with broad portfolio • Leading portf
Slide 10: The Case for Growth – Right to Play Portfolio
The Case for Growth – Right to Play Portfolio Shave Mkt Leader in Japan Stabilized Feminine Care Portfolio Women’s Branded Shave Value Mid Tier Premium >50% Market Share Solid #2 position in the US ~40% total share in US position (Men’s & Women’s) Tampons and Liners categories Women’s Shave (xAOC/on
Slide 11: Billie Acquisition
Billie Acquisition • Frontline price 3.5x TTM revenue for the fastest growing women’s shave brand across US women’s shave (~30% run rate DTC growth) – In Fiscal 2022, expected to add ~$100M and ~400bps of net sales growth • Strategic rationale was clear, providing meaningful topline growth profile a
Slide 12: Omni-Channel Execution
Omni-Channel Execution Leading DTC Capabilities 2022 Exclusive Launch Nationwide distribution 25% of women’s razor aisle Significant in-store marketing support all year around Page 12 BOS 20201120 EPC investor day mate ...
Slide 13: A Balanced Portfolio for Sustainable Growth
A Balanced Portfolio for Sustainable Growth Total Right to Win Right to Play Edgewell Organic Net 10 – 15% Sales Growth Outlook +2-3% Growth Flat to -1% Note: Internal management estimates. Page 13 BOS 20201120 EPC investor day mate ...
Slide 14: Our Business Model
Our Business Model • PAGE 14
Slide 15: The Edgewell Business Model
The Edgewell Business Model Relentless Strong Gross Cost Margin Management Profile Strong Cash Balanced Flow Capital Generation Allocation Page 15 BOS 20201120 EPC investor da ... 1-6 v3
Slide 16: Cost Excellence
Cost Excellence 2019 - 2021 2022 - 2023 $280M Realized ~$125M Projected Savings Savings • Enterprise-wide effort that delivered • Productivity and efficiency efforts continue ~$280M in gross savings over a three-year with new, $125M 2-year program period • SG&A focus on enhanced commercial • Program
Slide 17: Gross Margin Accretion
Gross Margin Accretion Strengthening our Adjusted Gross Margin Profile Page 17 BOS 20201120 EPC investor da ... 1-6 v3
Slide 18: Strong Cash Flow Generation
Strong Cash Flow Generation FY19 FY20 FY21 FCF % of Sales 7% 10% 8% Net Debt Leverage 2.2x 2.7x 2.1x 233 229 Key 191 189 175 Free Cash Flow 146 Operating Cash FY19 FY20 FY21 Page 18 BOS 20201120 EPC investor da ... 1-6 v3
Slide 19: Balanced, Disciplined Capital Allocation
Balanced, Disciplined Capital Allocation Investing in our brands and growth opportunities, accretive M&A, capex for innovation and Invest for growth productivity gains Return of cash to shareholders through the ~20% Dividend Payout Ratio initiation of a dividend and systemic buy back of Improve capi
Slide 20: A New Financial Algorithm
A New Financial Algorithm Leveraging clear Right to Win portfolio 2% - 3% Disciplined, prioritized investment cadence Organic Net Sales growth Consumer centric innovation at the core Strengthened gross margin profile 4% - 6% Next level cost reduction Adjusted EBITDA growth Investment stance towards
Slide 21: Proof Points of Progress
Proof Points of Progress • PAGE 21
Slide 22: In Recent Years, We Have Significantly Strengthened Capabilities
In Recent Years, We Have Significantly Strengthened Capabilities Demonstrated Cost Consumer Focused Enhanced Commercial Reduction Innovation Capabilities Page 22 BOS 20201120 EPC investor day mate ...
Slide 23: Key Business and Financial Successes in FY2021
Key Business and Financial Successes in FY2021 4% 70%+ 25% Organic sales growth Of U.S. portfolio eCommerce growth +13% growth rate for Right to Win In 4Q21, percent of portfolio(value) 9% of total Company sales via and +1% for Right to Play holding or gaining market share eCommerce channels +30bps
Slide 24: Over-delivering on Expectations in 2021
Over-delivering on Expectations in 2021 Algorithm Fiscal 2021 (1) Organic topline growth at the top 2% - 3% 4% end of our long-term range Organic Net Sales growth Organic Net Sales growth • Strong gross margin results Strong gross margin delivery • Step-up commercial (+30bps) despite macro challenge
Slide 25: Commercial Strengths for 2022
Commercial Strengths for 2022 Strong Innovation and Product Improved Distribution Development Pipeline in 2022 Outcomes on Shelf Page 25 BOS 20201120 EPC investor day mate ...
Slide 26: Fiscal 2022
Fiscal 2022 • PAGE 26
Slide 27: 2022: A More Challenging Macro Environment
2022: A More Challenging Macro Environment • Inflationary pressures have accelerated across the supply chain in recent weeks • Most acute pressures in certain commodities, labor and distribution, with highest impact likely in fiscal Q2 • We anticipate an additional ~100bps of inflationary pressure i
Slide 28: 2022 Performance…Continuing our Transformation
2022 Performance…Continuing our Transformation Sustained Topline Growth Winning on Shelf Broadening Innovation Platform Investing in Improving Capital Growth Return Driving Productivity Savings Strong Capital Allocation Page 28 BOS 20201120 EPC investor day mate ...
Slide 29: Closing Thoughts
Closing Thoughts • We have a clear and sustainable topline growth profile, driven by continued shift in our portfolio and increased penetration levels in growing categories • We continue to fundamentally reshape this business, leveraging existing core competencies while augmenting with new, consumer
Slide 30: Q&A
Q&A Page 30 BOS 20201120 EPC investor day mate ...
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