Energizer Holdings, Inc. · NYSE:ENR
Energizer — Q3 2023 Earnings Presentation
18 slides from Energizer's earnings presentation, Aug 8, 2023
Slide 1: Fiscal 2023 Q3 Earnings
Fiscal 2023 Q3 Earnings + August 8, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This document contains both historical and forward-looking statements. Forward-looking statements are not based on historical facts but instead reflect our expectations, estimates or projections concerning future results or events, including, without limitation, the future
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). However, management believes that certain non- GAAP financial measures provide users with additional meaningful comparisons to the corresponding his
Slide 4: Financial Results Third Quarter 2023
Financial + Results Third Quarter 2023
Slide 5: Key Metrics – Third Quarter
Key Metrics – Third Quarter METRIC Third Quarter 2023 Third quarter Net sales on a reported basis of $699.4 million, down 3.9% Net Sales* • Organic net sales down 2.7% Adjusted Gross Adjusted Gross margin was 38.8%(1), down 160 bps • Up sequentially 90 bps from Q2 2023 Margin* Third quarter free cas
Slide 6: Q3 FY23 Organic Net Sales Decline of 2.7%
Q3 FY23 Organic Net Sales Decline of 2.7% Organic Decline -2.7% 6
Slide 7: Positive Battery Volumes Recovery
Positive Battery Volumes Recovery Battery volume recovery has lagged our expectations year to date but is continuing to recover with convergence in the latest 4 weeks at positive value and volume. Total U.S. MULC + Amazon 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% -20.0% Volume Sales % Chg YA D
Slide 8: Project Momentum Extended to a Three-Year Program
Extending and Expanding Project Momentum to a Three-Year Program With Increased Savings and Working Capital Benefits $130 In Run Rate Benefits to anticipated to be achieved by end of FY25 $150 A $50 million increase from previous estimate MILLION $150 In Working Capital Improvements MILLION A $50 mi
Slide 9: Strong Cash Flow and Debt Paydown Over the Past Four Quarters
Strong Cash Flow and Debt Paydown Over the Past Four Quarters ($ in millions) Last 12 Months Q3 FY 2022 Q3 FY 2023 (Ended June 2022) (Ended June 2023) LTM FCF % * LTM FCF % * (0.9%) 12.1% Net Leverage Net Leverage 6.1x(2) (1) Total Debt reduction on the senior notes, term loan and revolver was $263
Slide 10: Updated Outlook Fiscal 2023
Updated Outlook + Fiscal 2023
Slide 11: Key Metrics - Fiscal 2023 Outlook
Key Metrics - Fiscal 2023 Outlook METRIC Fiscal 2023 Outlook Organic Net Low Single Digit Decline Sales • Fourth quarter expected to be roughly flat to prior year Adjusted Gross 150 – 200 Basis Point Improvement Margin • Fourth quarter 350 to 400 bps improvement to prior year $585 to $595 million Ad
Slide 12: Appendix Materials
Appendix Materials 12
Slide 13: Non-GAAP Reconciliation: Consolidated Net Sales
Non-GAAP Reconciliation: Consolidated Net Sales (in millions) Organic revenues is the non-GAAP financial measurement of the change in revenue or segment profit that excludes or otherwise adjusts for the change in Argentina operations and impact of currency from the changes in foreign currency exchan
Slide 14: Non-GAAP Reconciliation: Adjusted Gross Margin
Non-GAAP Reconciliation: Adjusted Gross Margin (in millions) Adjusted gross margin as a percent of sales excludes any charges related to restructuring programs, the costs of exiting the Russian market, the costs of the flooding of our manufacturing facility in Brazil and acquisition and integration
Slide 15: Non-GAAP Reconciliation: Free Cash Flow
Non-GAAP Reconciliation: Free Cash Flow (in millions) Free Cash Flow is defined as net cash provided by operating activities reduced by capital expenditures, net of the proceeds from asset sales. 15
Slide 16: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA (in millions) EBITDA is defined as net earnings before income tax provision, interest, loss/(gain) on extinguishment of debt, depreciation and amortization. Adjusted EBITDA further excludes the impact of the restructuring and related costs, the costs of exiti
Slide 17: Non-GAAP Reconciliation: Net Debt
Non-GAAP Reconciliation: Net Debt (in millions) Net Debt is defined as total Company debt, less cash and cash equivalents. 17
Slide 18: Non-GAAP Reconciliation: FY 2023 Outlook
Non-GAAP Reconciliation: FY 2023 Outlook (in millions) 18