Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Sidoti & Co Virtual Investor Conference (September 2020)
24 slides from Prestige Consumer Healthcare's conference presentation, Sep 24, 2020
Slide 1: Sidoti & Co Virtual Investor Conference
September 24, 2020 Sidoti & Co Virtual Investor Conference
Slide 2: Safe Harbor Disclosure
Safe Harbor Disclosure 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, EPS, G&A and free cash flow; the Company’s
Slide 3: Contents and Virtual Attendees
Contents Virtual Attendees I. Introduction to Prestige Consumer Healthcare Ron Lombardi Chief Executive Officer II. Brand Building in a Dynamic World Christine Sacco Chief Financial Officer III. Financial Profile & Capital Allocation Phil Terpolilli IV. The Road Ahead Director, Investor Relations Si
Slide 4: Introduction to Prestige Consumer Healthcare
Introduction to Prestige Consumer Healthcare Sidoti & Co Virtual Investor Conference
Slide 5: Helping Consumers Care for Themselves
Helping Consumers Care for Themselves eye drops per year throat drops for every cold season doses of pain relief per week infections treated annually Source: Company records Sidoti & Co Virtual Investor Conference
Slide 6: Diversified Portfolio of Leading Consumer Healthcare Brands
Diversified Portfolio of Leading Consumer Healthcare Brands Total Sales* by Category #1 Brands Represent Two-Thirds of Total Sales* Oral #1 Feminine Hygiene Care #1 Vaginal Anti-Fungal 10% Women’s Dermatologicals Health #1 Enemas & Suppositories 11% 26% #1 Motion Sickness #1 Powdered Analgesic Eye &
Slide 7: Proven, Consistent & Repeatable Strategy
Proven, Consistent & Repeatable Strategy ◼ 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 all
Slide 8: Brand Building in a Dynamic World
Brand Building in a Dynamic World Sidoti & Co Virtual Investor Conference
Slide 9: Investment Across Key Brands Drives Organic Growth
Investment Across Key Brands Drives Organic Growth Invest for Growth Manage for Cash Power Core Core International Other OTC 10% 50% 10% Sales Contribution to Portfolio (Approximate %) 30% # of Brands 5 11 18+ 40+ Representative Brands Long-Term Organic Growth Target 3%+ 1-3% 5%+ -4% to -8% (approxi
Slide 10: Playbook Remains Consistent in an Evolving Retail Environment
Playbook Remains Consistent in an Evolving Retail Environment Retail Traffic Driver Long-Term Brand Building Toolkit ◼ Need-based products sought by consumers, ◼ Develop and understand consumer insights beginning a basket of purchases ◼ Wide-ranging and flexible brand strategies focused ◼ Retailers
Slide 11: Adapting Portfolio to Shifts from Pandemic in Real-Time
Adapting Portfolio to Shifts from Pandemic in Real-Time Lower Opportunity Higher Opportunity Various activities Convenience channel Increased focus on Benefit of eCommerce impacted by disruption leading to self-care and hygiene investments as online COVID-19, resulting in fewer incremental at home s
Slide 12: Nimble Marketing Efforts Balanced Against Long-Term Strategy
Nimble Marketing Efforts Balanced Against Long-Term Strategy Wide-Ranging Long-Term Growth Toolkit Near-Term Tailored, Relevant Messaging ◼ Highlighting at-home usage opportunities Professional Marketing ◼ Focus on relevant consumer areas in real-time Feel clean & fresh Targeted work-from- Brand Inn
Slide 13: Realizing Benefits of Early eCommerce Investments
Realizing Benefits of Early eCommerce Investments eCommerce as a % Retail Sales 35%+ exercising at home more often +156% Driving consumers to go beyond ◼ Growing eCommerce trend continued into brushing Q1 FY’21; accounts for 10%+ of retail sales – Robust growth across all eCommerce partners ◼ Long-t
Slide 14: Financial Profile and Capital Allocation
Financial Profile and Capital Allocation Sidoti & Co Virtual Investor Conference
Slide 15: Cash Flow Drivers That Enable Capital Allocation
Cash Flow Drivers That Enable Capital Allocation Key Attributes and Positioning Capital Allocation Priorities Unchanged ◼ Net Debt at June 30 of ~$1.6 billion(3), leverage ratio of 4.4x(3) Invest in Current Brands to Drive 1 Organic Growth — Target leverage ratio(4) of between 3.5x and 5.0x — Ample
Slide 16: Best-in-Class Free Cash Flow Conversion
… and Best-in-Class Free Cash Flow Conversion FCF 129% Conversion: 125% 117% 11% 110% 105% 9% 9% 93% 90% 77% 58% FCF Yield: 5% 5% 4% 4% 4% 3% CHD CL CLX PG HELE JNJ EPC ENR Source: FactSet data as of September 9, 2020; comparable set includes selected HPC companies Note: Free Cash Flow Conversion de
Slide 17: Strong and Consistent Cash Flow Leads to Rapid De-Levering
Strong and Consistent Cash Flow Leads to Rapid De-Levering Adjusted Free Cash Flow(3) $197 $208 $202 $207 $165 $185 $127 $131 $67 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Leverage Ratio(4) ~5.0x ~5.2x ~5.0x ~5.7x ~5.2x ~5.0x ~4.3x ~4.3x ~4.7x 3.5x-5.0x long-term target range FY 12 FY 13
Slide 18: The Road Ahead
The Road Ahead Sidoti & Co Virtual Investor Conference
Slide 19: Strategy in Place for Value Creation
Strategy in Place for Value Creation ◼ Providing consumers with the brands they know and trust Long-Term Strategy ◼ Strategy and tactics performing well in disrupted environment ◼ Robust continuity plans in the supply chain are working Business Continuity ◼ Investing in inventory has paid off in a c
Slide 20: Outlook: Staying the Strategic Course to Create Value
Outlook: Staying the Strategic Course to Create Value ◼ Business and strategy remain well-positioned to weather changing environment ◼ Market share largely stable but certain category trends impacted by COVID-19 Top Line Trends ◼ Anticipate inventory reductions in certain channels ◼ Expect internati
Slide 21: Appendix
Appendix Sidoti & Co Virtual Investor Conference
Slide 22: Appendix
Appendix (1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release dated August 6, 2020 in the “About Non-GAAP Financial Measures” section. (2) Company consumption is
Slide 23: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Growth Three Months Ended June 30, Year Ended March 31, 2020 2019 (In Thousands) GAAP Total Revenues $ 229,394 $ 232,154 Revenue Change (1.2%) Adjustments: Impact of foreign currency exchange rates - (1,353) Total adjustments $ - $ (1,353) Non-GAAP Organic Re
Slide 24: PCH CONFIDENTIAL AND PROPRIETARY INFORMATION
PCH CONFIDENTIAL AND PROPRIETARY INFORMATION
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