Prestige Consumer Healthcare Inc. · NYSE:PBH
Prestige Consumer Healthcare — Raymond James Institutional Investors Conference 2021
27 slides from Prestige Consumer Healthcare's conference presentation, Mar 1, 2021
Slide 1: Raymond James Institutional Investors Conference
M a r c h 1 st, 2 0 2 1 Raymond James Institutional Investors 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, free cash flow, and organic revenue g
Slide 3: Contents
Contents I. Introduction to Prestige Consumer Healthcare II. Brand Building Playbook III. Financial Profile & Capital Allocation IV. The Road Ahead Raymond James Investors Conference 2021
Slide 4: Introduction to Prestige Consumer Healthcare
Introduction to Prestige Consumer Healthcare Raymond James Investors Conference 2021
Slide 5: Who We Are: Helping Consumers Care for Themselves
Who We Are: 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 Raymond James Investors Conference 2021 5
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 Playbook
Brand Building Playbook Raymond James Investors Conference 2021
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: Portfolio Positioned To Benefit From Changing Environment
Portfolio Positioned To Benefit From Changing Environment Consumers Seeking Trusted Brands Continuing to benefit Increased consumer focus on self-care and hygiene from investments and diverse positioning Accelerated trend towards shopping online Raymond James Investors Conference 2021 10
Slide 11: Playbook Remains Consistent in a Unique Retail Environment
Playbook Remains Consistent in a Unique 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 ded
Slide 12: Nimble Marketing Efforts Balanced Against Long-Term Strategy
Nimble Marketing Efforts Balanced Against Long-Term Strategy Long-Term Growth Toolkit Wide-Ranging Real-Time Agile Marketing Strategy Across Portfolio ◼ Engaging customers through campaigns both in-store and online Professional ◼ Investment in current initiatives leading to strong momentum Marketing
Slide 13: Winning in Consumer Shift to Online
Winning in Consumer Shift to Online eCommerce as a % Retail Sales Online Tools Increase Consumer +115% Conversion ◼ Growing eCommerce trend continued into Q3; eCommerce representing 10%+ of Consumers consumer retail sales YTD Continue to – Robust growth across all Seek Treat at eCommerce partners Ho
Slide 14: Financial Profile and Capital Allocation
Financial Profile and Capital Allocation Raymond James Investors Conference 2021
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 December 31 of ~$1.5 billion(3), leverage ratio of 4.2x(4) Invest in Current Brands to Drive 1 Organic Growth — Target leverage ratio(4) of between 3.5x and 5.0x — Am
Slide 16: 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 17: The Road Ahead
The Road Ahead Raymond James Investors Conference 2021
Slide 18: Strategy in Place for Value Creation
Strategy in Place for Value Creation ◼ Brand-building designed to grow categories and connect with consumers Long-Term Strategy ◼ Strategy and tactics performing well in an evolving environment ◼ Delivering long-term brand building and share growth Agile Marketing ◼ Benefited from investments in win
Slide 19: Outlook: Staying the Course to Create Value
Outlook: Staying the Course to Create Value ◼ Strategy intact with stable and well-positioned business Top Line Trends ◼ Market share solid and growing during pandemic environment ◼ Anticipate FY 21 Revenue of approximately $935 million ◼ FY 21 Adjusted EPS(5) guidance approximately $3.22 EPS ◼ Stro
Slide 20: Appendix
Appendix Raymond James Investors Conference 2021
Slide 21: 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 February 4, 2021 in the “About Non-GAAP Financial Measures” section. (2) Total company consum
Slide 22: Reconciliation Schedules
Reconciliation Schedules Organic Revenue Change Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 (In Thousands) GAAP Total Revenues $ 238,788 $ 241,552 $ 705,604 $ 711,775 Revenue Change (1.1%) (0.9%) Adjustments: Impact of foreign currency exchange rates - 1,121 -
Slide 23: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted EBITDA Margin Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 (In Thousands) GAAP Net Income $ 40,873 $ 38,058 $ 129,168 $ 105,235 Interest expense, net 20,138 24,275 63,345 73,772 Provision for income taxes 12,803 12,4
Slide 24: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 Diluted Diluted Diluted Diluted Net Income EPS Net Income EPS Net Income EPS Net Income EPS (In Thousands, except per share data) GAAP Net Income
Slide 25: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Adjusted Free Cash Flow Three Months Ended December 31, Nine Months Ended December 31, 2020 2019 2020 2019 (In Thousands) GAAP Net Income $ 40,873 $ 38,058 $ 129,168 $ 105,235 Adjustments: Adjustments to reconcile net income to net cash provided by operating acti
Slide 26: Reconciliation Schedules (Continued)
Reconciliation Schedules (Continued) Projected EPS Projected FY'21 GAAP EPS $ 3.32 Adjustments: Normalized tax rate adjustment for discrete income tax items (a) (0.10) Total Adjustments (0.10) Projected Non-GAAP Adjusted EPS $ 3.22 a) Income tax adjustment to adjust for discrete income tax items. Pr
Slide 27: Raymond James Investors Conference 2021
Raymond James Investors Conference 2021
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