Central Garden & Pet Company · NASDAQ:CENT
Central Garden & Pet — Investor Day (2020)
101 slides from Central Garden & Pet's investor day presentation, 2020
Slide 1: Investor Day
IFS = Investor CENTRAL =. GARDEN &
Slide 2: Welcome
Welcome Friederike Edelmann Vice President, Investor Relations
Slide 3: Agenda
Agenda Tim Cofer Intro to Central and Our Central to Home Strategy CHIEF EXECUTIVE OFFICER Break John Hanson Pet Business PRESIDENT, PET CONSUMER J.D. Walker Garden Business PRESIDENT, GARDEN CONSUMER Clare Schueren Corporate Social Responsibility VP, SUSTAINABILTY & CSR Marilyn Leahy People & Cultu
Slide 4: Forward Looking Statements
Forward Looking Statements This presentation includes “forward-looking statements.” Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, plans or intentions relat ing to acquisitions, o
Slide 5: Introduction to Central and Our Central to Home Strategy
Introduction to Central and Our Central to Home Strategy Tim Cofer Chief Executive Officer
Slide 6: Key Takeaways
Garden & Pet are highly attractive and resilient growth industries Central is an industry leader with a strong foundation and Key untapped potential Takeaways Our new Central to Home strategy sets a bold ambition for the future with encouraging early results We are confident in our plans to deliver
Slide 7: Pet is an Attractive Growing Industry
Large Market $101B Industry Pet is an Attractive Growing Growing Industry & Resilient ~4% Growth Rate Broad Consumer 90% Household Penetration Base Strong Tailwinds Aligned with Consumer Trends 2020 Investor Day 77
Slide 8: Favorable Pet Industry Trends
Favorable Pet Industry Trends Humanization Health & Wellness eCommerce Convenience 95% of pet owners see Pet H&W supplies growing Pet eCommerce has grown 68% of Chewy sales are pets as family 70% faster than 2 years ago 5x in the past 5 years auto-ship subscription 2020 Investor Day 8
Slide 9: 2019-20 Pet Household Growth
2019-20 Pet Household Growth +2.7MM 7% New households Encouraging with pets in 2020 6% Pet Population 4% 5% 4% Growth 3% Growth is disproportionately fueled by young adults 57% Of new pet owners are Millennials and Gen Z All Pets Reptiles Small Animals Dogs Cats Birds 2020 Investor Day 9
Slide 10: Garden is an Attractive Industry
Large Market $33B Industry Garden is an Resilient Attractive Industry Industry ~1% Growth Rate Broad Consumer 73% Household Penetration Base High Consumer Strong Retention & Loyalty Engagement 2020 Investor Day 10
Slide 11: Strong Garden Industry Trends
Strong Garden Industry Trends Sustainability Homesteading eCommerce 82% of gardeners believe 70% of homeowners are Emerging Home & Garden they have a responsibility to doing more home projects eCommerce growing 2x be environmentally friendly faster than category 2020 Investor Day 11
Slide 12: Significant Growth in New Lawn & Garden Households
+5.5 points 7.1MM Household Penetration 72.7% Growth Significant Growth in New households entered the category Lawn & Garden Household Penetration 75% 67.2% Of new buyers are Millennials and Gen Z 2019 2020 2020 Investor Day 12
Slide 13: Central has a Strong Foundation for Sustainable Growth
Central has a Strong Foundation for Sustainable Growth Proven track Strong relationships with record of M&A retailers built over 40 years 3 4 Robust financial Superior manufacturing performance 2 5 and distribution network Leading brand portfolio Experienced leadership across key Garden 1 6 team & e
Slide 14: Broad Portfolio Across Garden & Pet
Garden Controls #2 Grass Seed Wild Bird Lawn & Garden Fertilizers Consumables Live Plants Growing Media & Mulch Pet #2 Dog & Cat Supplies Broad Dog Treats & Chews Aquatics Supplies Portfolio Across Pet Supplies (ex- Dog & Cat Food, Cat Litter) Small Animal Supplies Garden & Pet Pet Bird Supplies Rep
Slide 15: Leading Brands Across Attractive Segments
Pet Garden Professional #1 in Pet Bird #1 in Small Animal #1 in Wild Bird #1 in Farm Insect Control Leading Brands Across Attractive #1 in Suet #2 in Aquatics #2 in Grass Seed Segments #1 in Municipal Mosquito Control #2 in Dog Toys #2 in Dog Pads #2 in Fertilizer #3 in Reptile #3 in Calming #3 in C
Slide 16: Outstanding 2020 Results
Net Sales EBIT $2.7B $198MM Outstanding +13% +30% 2020 Results EPS Cash & Cash Equiv. $2.20 $653MM +37% +$155MM 2020 Investor Day 16
Slide 17: Proven Track Record of M&A
Proven Track Record of M&A 50 Acquisitions over the last 25 years 2020 Investor Day 17
Slide 18: Long-Standing Deep Relationships with Our Retail Partners
Long-Standing Deep Relationships with Our Retail Partners • 40 years of outstanding partnerships with top tier retailers • Strong joint business planning • Private label producer for many retailers in key categories • Emerging eCommerce leadership 2020 Investor Day 18
Slide 19: Superior Manufacturing & Distribution Network
Superior Manufacturing & Distribution Network National footprint with ~100 sales, logistics, Strong distributor capabilities in Low-cost producer in several categories manufacturing sites Garden & Pet 2020 Investor Day 19
Slide 20: Strong & Experienced Leadership Team
Strong & Tim Cofer CEO Niko Lahanas CFO John Hanson President, J.D. Walker President, Glen Axelrod Senior Vice President, Dan Pennington Senior Vice President, Wild Experienced Consumer 30 years 14 years Pet Consumer Products 29 years Garden Consumer Products 39 years Dog & Cat Brands 25 years Bird,
Slide 21: Thank You Team CENTRAL!
Thank You Team CENTRAL! 2020 Investor Day 21
Slide 22: Our foundation is strong and our future is bright
Our foundation is strong and our future is bright
Slide 23: Our New Purpose & Mission
Our Nurture happy & healthy homes Purpose Our New Purpose & Mission Our Lead the future of the Garden & Pet industries... Mission one blade of grass and one wagging tail at a time 2020 Investor Day 23
Slide 24: Our New Identity
Our New Identity Home is central to life, we are Central to home 2020 Investor Day 24
Slide 25: What We Believe
What We Believe 2020 Investor Day 25
Slide 26: Our Central to Home Strategy
Our Central to Home Strategy CONSUMER CUSTOMER CENTRAL COST CULTURE Build and grow brands Win with winning Fortify the Central Reduce Cost to Strengthen our Consumers love Customers and Portfolio improve margins and entrepreneurial, Channels fuel growth business-unit led growth Culture 2020 Investor
Slide 27: Consumer: Build and grow brands consumers love
Deeply understand our consumers Build distinctive and winning brands CONSUMER Invest in demand creation to accelerate organic growth Create disruptive Build & grow brands innovation platforms Consumers love 2020 Investor Day 27
Slide 28: Innovating for Growth
CONSUMER • Cat Care Product of the Year Innovating • +70% brand growth in 2020 for Growth • A leading drug-free calming solution • Ease of use: multiple treatments in a single application • Produces a thicker, greener lawn • +53% POS vs. PY 2020 Investor Day 28
Slide 29: Investing in Digital Marketing
CONSUMER Tips for Biking with Your Bike Of course, you first want to make sure your dog can safely tag along on your bike ride. Some Digital problem-solution content program Results Winter Housing for Rabbits Investing in Rabbits prefer temperatures of about 60–65 degrees Fahrenheit, but they are co
Slide 30: Customer: Win with Winning Customers & Channels
Build a leading eCommerce platform Strengthen relationships with winning customers CUSTOMER Respond to channel shifts Improve sales capabilities Win with winning Customers & Channels 2020 Investor Day 30
Slide 31: Build a Leading eCommerce Platform
CUSTOMER Build a Leading eCommerce Platform Developing Winning Capabilities Activation Assortment $209MM +55% 2020 eCommerce 2020 Sales Sales growth Availability Content eCommerce Flywheel ~20% Of business in Pet, 3% of Garden Top10 Search Customers for Central 2020 Investor Day 31
Slide 32: Central: Fortify the Central Portfolio
Drive a strong portfolio strategy Acquire or venture to build scale in core & adjacent categories CENTRAL Exit underperforming & non-core business Ensure a safe, responsible Fortify the Central and sustainable future Portfolio 2020 Investor Day 32
Slide 33: M&A Remains a Growth Driver
CENTRAL M&A Remains a Growth Driver Our M&A Priorities Preferred Acquirer in our Industries 1 Build scale in core categories • Track record of M&A success • Focused on maintaining entrepreneurial-led culture 2 Enter priority adjacencies • Immediate distribution and supply chain scale benefits 3 Enha
Slide 34: Launching Central Ventures
CENTRAL Establishing new $20MM venture fund Current portfolio examples: Seeking to partner with leading innovators in Garden and Pet and leverage Central’s capabilities to accelerate growth Launching Focused on emerging growth companies in: • Sustainability • Health & Wellness • Digitally Connected
Slide 35: Strengthen Portfolio with Focus on Social Responsibility
CENTRAL Strengthen Portfolio with Focus on Social Responsibility Community Health Employee Wellbeing Sustainability 2020 Investor Day 35
Slide 36: Cost: Reduce Cost to Improve Margins & Fuel Growth
Perform with excellence everyday Drive net productivity and continuous improvement Capture scale and collaboration COST benefits across business units Improve cash conversion cycle Reduce Cost to improve margins & fuel growth 2020 Investor Day 36
Slide 37: Generating Fuel for Growth
COST Generating Fuel for Growth Scaling Investing in Optimizing Procurement Efficient Capacity G&A 2020 Investor Day 37
Slide 38: Culture
Develop, recruit & retain top talent Build capabilities and simplify how we work CULTURE Cultivate a digital-first business Make Central a great place to work and embrace diversity Strengthen our entrepreneurial, and inclusion business-unit led growth culture 2020 Investor Day 38
Slide 39: Building a Winning Growth Culture
CULTURE 1 Nurture our Entrepreneurial 6 Spirit 2 Building a Winning Leverage our Collective Invest in Growth Capabilities Growth Culture Expertise to Win 5 3 Refresh our Values Promote an Agile to Support our and Flexible Growth Ambition 4 Approach Increase External Focus and Consumer Orientation 20
Slide 40: Committed to Driving Results
Committed to Driving Results Deliver Top-Tier Build Strong Be the Destination Financial Portfolio with for Top Talent Performance Leading Brands in Garden & Pet 2020 Investor Day 40
Slide 41: Pet Business
Pet Business John Hanson President, Pet Consumer Products
Slide 42: Pet is a Dynamic Growth Industry
Central plays in ~$28B of Strong growth dynamics $101B Pet industry $7B $1B Treats & Chews Live Pets & Fish Pet is a Dynamic Fragmented competitive set across categories $20B Growth Industry Pet Supplies Pet $39B Services Industry (Vet & Non-Medical) Revenue Broad distribution across $3B retail cha
Slide 43: Central is a Leader in the Pet Segment
Net Sales of Consumer & ~65% Branded professional $1.6B businesses with ~20% Distribution in FY 2020 ~15% Private Label leading brands Central is a Leader in the Pet Segment Outstanding 2020 performance in COVID-challenged environment +13% +26% +37% Net Sales EBIT eCommerce 2020 Investor Day 43
Slide 44: Leading Portfolio of Brands
Our Leadership Positions Leading Portfolio Categories Leading brands of Brands Dog & Cat #2 #2 #3 Dog Toys Dog Pads Calming Products Aquatics #2 Aquatics #1 Small Animal Small Animal #1 #1 Bird Pet Bird Suet Reptile #3 Reptile Equine #2 Fly Spray Live Pets #1 (ex-Dog & Cat) Live Pet (ex Dog & Cat) #
Slide 45: Innovation Expands our Industry Leadership
CONSUMER Innovation Expands our Industry Leadership Clean & Cozy Bone Broth Food From Extreme Odor Bedding Dog Bones the Wild +50% +$10MM +2.6pp Share gain in Sales in Share gain in Small Animal Paper Bedding year one Food at launch customers 2020 Investor Day 45
Slide 46: Investing in Demand Creation
CONSUMER Clean & Cozy Food From Extreme Odor Bedding the Wild Online Display Influencer Marketing Investing in Of the overall sales Engagement Rate Demand Creation 29% New Brand Buyers 4X Norm 13MM Impressions 2020 Investor Day 46
Slide 47: Kaytee Video
Kaytee Video 2020 Investor Day 47
Slide 48: Positioned to Win in Every Channel
CUSTOMER Positioned to Win in Every Channel • Leading category insights and solutions to drive industry growth • Strong relationships across customers and channels • Emerging strength in eCommerce • Tenured Pet industry sales leadership 2020 Investor Day 48
Slide 49: Stellar 2020 eCommerce Results
CUSTOMER Stellar 2020 Results $184MM ~20% +37% Winning in in Sales of Pet Consumer business Growth eCommerce Gaining Share in majority of categories 2X We have a our BOLD eCommerce ambition business by 2025 2020 Investor Day 49
Slide 50: Pet Distribution Generates Competitive Advantage
CUSTOMER ~20% +11% Largest Pet Distribution of Pet 2020 Sales Assortment of supplies in Sales growth Pet distribution Generates Competitive Our Portfolio Who We Serve Third-Party Brands Advantage ~80% ~20% 9,800+ 6,400+ Retailers Vet clinics Competitive Advantages • Insight into leading consumer tre
Slide 51: Generating Savings to Fuel Growth
COST Investing in Expanding Automation Capacity Dog Treats Generating Aquatics +20% Savings to +15-20% Capacity Waste Fuel Growth reduction Optimizing Freight Bird Suet & Logistics +20-25% Total Pet Segment Improved efficiency 10-15% LTL cost savings 2020 Investor Day 51
Slide 52: Key Takeaways: Pet Business
Pet is a dynamic industry with strong consumer tailwinds Key Takeaways: Central is a leader in Pet with untapped growth potential Pet Business We are executing well with outstanding 2020 results We have a bold consumer-centric growth strategy and are confident in our future 2020 Investor Day 52
Slide 53: Garden Business
Garden Business J.D. Walker President, Garden Consumer Products
Slide 54: Garden is an Attractive Industry
Central plays in ~$30B of $33B Seasonal business Lawn & Garden Consumables Industry Insect Growing Media, Mulch Repellent Garden is an Wild Bird $0.7B $1.8B Dominated by home centers Attractive $1.6B Grass & and mass merchandisers Industry Lawn & Other Live Goods Seed Garden Consumables $19.9B $1.8B
Slide 55: Central is a Leader in the Garden Segment
Net Sales of >70% ~60% Brands $1.1B Sales from ~20% Distribution in FY 2020 Top 3 customers ~20% Private Label Central is a Leader in the Garden Segment Outstanding 2020 performance in COVID-challenged environment +14% +30% +192% Net Sales EBIT eCommerce 2020 Investor Day 55
Slide 56: Leading Portfolio of Brands
Our Leadership Positions Segment Categories Position Leading brands Wild Bird #1 Leading Portfolio of Brands Grass Seed #2 Fertilizer #2 Controls #3 Live Plants #3 Note: Segment ranking includes Central brands and private label partnerships; Bell ranking at largest U.S. Live Goods retailer 2020 Inve
Slide 57: Building Brands Consumers Love
CONSUMER Wild Bird Grass Seed Fertilizer Building Brands Consumers Love +26% +12% +27% Sales at Top 3 Sales at Top 3 Sales at Top 3 2020 Investor Day 57
Slide 58: Investing Behind Winning Innovation
CONSUMER Investing Behind Winning Innovation Pennington Lawn Booster Marketing Campaign +$10MM +130% +145% 56% Sales in Conversion Page Of engagement year one rate views from women 2020 Investor Day 58
Slide 59: Pennington Video
Pennington Video 2020 Investor Day 59
Slide 60: Positioned to Win in Every Channel
CUSTOMER Winning at the Big 3 Winning at the Big 3 • Outstanding customer relationships • Outstanding customer relationships • Tenured Sales team with deep Lawn & Garden expertise • Tenured Sales team with deep Lawn & Garden expertise • Leveraging our unique portfolio and consumer insights •toLevera
Slide 61: Garden Distribution Generates Competitive Advantage
CUSTOMER ~20% +33% of Garden 2020 Sales Sales Growth Garden Distribution Generates Largest Who We Serve Competitive National U.S. Distributor 4,200 38,000 Advantage in Lawn & Garden Customers Stores Competitive Advantages • Preferred partner for largest retailers in the U.S. • Strengthened customer
Slide 62: Generating Savings to Fuel Growth
COST SG&A Optimization Improving Efficiency Reduce network complexity Large scale project Portfolio management Simplify manufacturing footprint Generating Investments to drive net Expand capacity productivity Savings to Enhance automation Fuel Growth ~3pp 5-10% SG&A Over the last Annual cost savings
Slide 63: Key Takeaways: Garden Business
Garden is a resilient industry with a broad base of loyal consumers Key Takeaways: Central is a strong leader in Garden with untapped growth potential Garden Business We are executing well with outstanding 2020 results We have a bold consumer-centric growth strategy and are confident in our future 2
Slide 64: Corporate Social Responsibility
Corporate Social Responsibility Clare Schueren Vice President, Sustainability & CSR 64
Slide 65: Social Responsibility is Imperative to Our Future
Social Responsibility is Imperative to Our Future Grounded in our CSR has been a Important to our CSR is integrated Critical to our purpose to nurture core part of our stakeholders within our growth mission to lead the happy & healthy DNA for 40 years strategy future of the garden homes and pet indu
Slide 66: Comprehensive Assessment to Develop our Impact Strategy
Comprehensive Assessment to c Develop our Standards & Consumer Impact Strategy Ratings Research Customer Expert External Engagement Interviews Benchmarking 2020 Investor Day 66
Slide 67: Our Central to Home Impact Strategy
Key stakeholders Investors Our Central to Home Employees Communities Impact Strategy Consumers Community Health Customers Employee Wellbeing Suppliers Sustainability Government officials 2020 Investor Day 67
Slide 68: Community Health
2020 Highlights $1MM in donations to Habitat for Humanity Community Our Commitment $1MM in product Health Empowering communities where our consumers, donations to support customers and employees live animal rescues Our Focus Areas • Maximize impact where there is the greatest human and pet need • Ma
Slide 69: Employee Wellbeing
2020 Highlights Accelerated our Diversity & Inclusion strategy Employee Our Commitment Reduced safety incidents Wellbeing Supporting the holistic well- being of our employees by 15% vs PY Increased focus on Our Focus Areas • Embrace diversity and inclusion Individual Development Plans • Invest in le
Slide 70: Sustainability
2020 Highlights 83MM+ lbs of ocean plastic and recycled materials used in pet & people cushions Use of solar power to produce 125MM+ dog Sustainability Our Commitment bones per year Ensuring long-term sustainable operations while reducing our environmental impact Reduced 11B gallons of water used th
Slide 71: Activating our Impact Strategy
Activating our Impact Strategy Embed and activate Establish goals Begin annual our Central to Home for each focus reporting of our Impact strategy area progress 2020 Investor Day 71
Slide 72: People & Culture
People & Culture Marilyn Leahy Senior Vice President, Human Resources 72
Slide 73: Our People
Our People Passionate Engaged Broad Domestic Deep Experience Employee Base Footprint & Expertise Over 6,300 employees 90+ U.S. offices, manufacturing ~6 years Average tenure of globally plants and distribution centers Hourly FTEs Emerging global presence in the ~11 years Average tenure of U.K., Mexi
Slide 74: Dedicated & Resilient Through COVID-19
Proud and inspired by our employees Prioritizing employee safety and investing in PPE & education Dedicated & Resilient All facilities remain operational, managing COVID incident rate Through Recognizing frontline employees with one-time bonus COVID-19 Majority of non-frontline workers continue to w
Slide 75: Building Central as a Great Place to Work
Building Central as a Great Place to Work Develop, Recruit & Build Winning Embrace Diversity Retain Top Talent Capabilities & Inclusion 2020 Investor Day 75
Slide 76: Develop, Recruit & Retain Top Talent
Strong succession & talent management planning with focus on critical roles Develop, Healthy mix of promote from within & external hires Recruit & Retain Top Talent Creation of extended leadership community Robust development & career planning 2020 Investor Day 76
Slide 77: Healthy Mix of Promotions & New Talent
Healthy Mix of Promotions & New Talent 25+ Promotions to Director and 25+ New hires in Director and above roles in the last year above roles in the last year General Management Finance Marketing Information Services Sales Supply Chain 2020 Investor Day 77
Slide 78: Developing our Next Generation of Leaders
• Community of top ~120 leaders Developing our • Empowering group to lead company priorities Next Generation • Investing in leadership development of Leaders • Leading our company to great results & building a great place to work! 2020 Investor Day 78
Slide 79: Building Winning Capabilities
Building Winning Capabilities Marketing eCommerce Data & Analytics Consumer Insights Flywheel Management Business Performance Brand Building Omni-Channel Expansion Marketing, Sales & eCommerce Innovation Supply Chain Fulfillment Supply Chain Our Approach Ambition External Internal Gap Roadmap Plan S
Slide 80: Embracing Diversity & Inclusion
Established Diversity and Inclusion Council to advise leadership team Embracing Diversity Activating strategy to advance & Inclusion diversity and inclusion efforts Recruiting and developing top female leadership 2020 Investor Day 80
Slide 81: Key Takeaways: People & Culture
Central has a strong & resilient workforce Key Takeaways: We are building Central to be the People & Culture destination for top talent in Garden & Pet We are investing in growth capabilities to enable our Central to Home strategy We are committed to diversity & inclusion and building a winning grow
Slide 82: Financial Overview
Financial Overview Niko Lahanas Chief Financial Officer 82
Slide 83: Building on a Strong Performance in 2020
Building on a Strong Performance in 2020 Net Sales Gross Profit Operating Income Diluted EPS (in $ millions) (as a percentage of Net Sales) (in $ millions) (in $) +13.1% +10 bps +30.2% +36.6% 2,696 29.6% 2.20 2,383 29.5% 198 1.61 152 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 2020 Investor Day 83
Slide 84: Our Metrics Accelerated Over the Last Five Years
Net Sales Gross Profit & Margin (in $ millions) (in $ millions) 2,696 797 2,283 675 704 2,215 633 2,054 1,829 553 Our Metrics Accelerated 30.2% 30.8% 30.5% 29.5% 29.6% Over the Last FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Five Years Operating Income & Margin (in $ millions) EBITDA & Margin
Slide 85: Ample Liquidity and Strong Cash Flow Generation
Ample Liquidity and Strong Cash Flow Generation Cash & Cash Equivalents Cash Flow from Operations (in $ millions) (in $ millions) 653 264 205 498 482 151 114 114 93 32 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 2020 Investor Day 85
Slide 86: Financial Strength and Flexibility
Financial Strength and Flexibility Total Leverage 3.0x 3.1x • Strong balance sheet • Refinanced debt at lower rates 2.2x 2.2x 1.9x • Future leverage target of 3-3.5x, willing to go higher for the right target, then quickly de-lever • Reach investment grade rating FY16 FY17 FY18 FY19 FY20 NOTE: Total
Slide 87: Capital Allocation Priorities
Targeted M&A • Build scale, fill white spaces and enter priority adjacencies • Enhance key capabilities and pursue portfolio optimization Invest for Growth Capital • Expand capacity Allocation • Invest in brand building, innovation, eCommerce, consumer insights Priorities Share Repurchases • Opportu
Slide 88: Meaningful Opportunity to Improve Margins
Meaningful Opportunity to Improve Margins Improve Drive Capture Enhance Maintain Operating Net Scale Profitable Lean Leverage Productivity Benefits Mix Overheads End-to-end continuous improvement mindset 2020 Investor Day 88
Slide 89: Central to Home Strategy: Long-Term Algorithm for Profitable Growth
Central to Home Strategy Long-Term Algorithm for Profitable Growth Organic Net Sales EBIT EPS Outlook: Outlook: Outlook: LSD MSD MSD-HSD Grow at or above category average Grow faster than Net Sales Grow faster than EBIT Drivers: Drivers: Drivers: Strengthened capabilities and increased Operating lev
Slide 90: Key Takeaways: Financial Overview
Robust financial performance Fortress balance sheet and strong cash flow generation Key Takeaways: Opportunities to expand margins Financial Overview and fuel growth Proven track record of M&A New strategy designed to drive a virtuous cycle and strong shareholder returns 2020 Investor Day 90
Slide 91: Closing Thoughts
Closing Thoughts Tim Cofer Chief Executive Officer
Slide 92: Central to Home Strategy
OUR PURPOSE Nurture happy and healthy homes Central to Home OUR MISSION Strategy Lead the future of the Garden and Pet industries… one blade of grass and one wagging tail at a time OUR STRATEGIC PILLARS CONSUMER CUSTOMER CENTRAL COST CULTURE Build and grow brands Win with winning Fortify the Reduce
Slide 93: Recap: Key Takeaways
Garden & Pet are highly attractive and resilient growth industries Central is an industry leader with a strong foundation and Recap: untapped potential Key Takeaways Our new Central to Home strategy sets a bold ambition for the future with encouraging early results We are confident in our plans to d
Slide 94: Q&A
Q&A Tim Cofer Niko Lahanas J.D. Walker John Hanson Chief Executive Officer Chief Financial Officer President, Garden Consumer Products President, Pet Consumer Products 2020 Investor Day 94 94
Slide 95: Please reach out to us with any comments or questions
Please reach out to us with any comments or questions: IR@Central.com (925) 948-3657
Slide 96: Appendix
Appendix CENTRAL
Slide 97: Notes & Disclosures
Notes & Disclosures Use of Non-GAAP Financial Measures We report our financial results in accordance with accounting principles generally accepted in the United States (GAAP). However, to supplement the financial results prepared in accordance with GAAP, we use non-GAAP financial measures including
Slide 98: Notes & Disclosures
Notes & Disclosures EBITDA: Defined by us as income before income tax, net other expense, net interest expense and depreciation and amortization (or operating income plus depreciation and amortization expense). Other companies may calculate EBITDA differently and it may not be comparable. Organic ne
Slide 99: GAAP to Non-GAAP Reconciliation: Net Income and EPS
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended (in thousands, except for per share amounts) 26-Sep-20 28-Sep-19 Net Income & Diluted Net Income Per Share Reconciliation GAAP net income attributable to Central Garden & Pet 120,676 92,786 Previously held investment interest fair value remea
Slide 100: GAAP to Non-GAAP Reconciliation: Organic Net Sales
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended September 26,2020 Consolidated Pet Segment Garden Segment (in millions) %Change %Change %Change Organic Net Sales Reconciliation Reported net sales FY 2020 (GAAP) 2,695.5 1,562.2 1,133.3 Reported net sales FY 2019 (GAAP) 2,383.0 1,384.7 998.3
Slide 101: GAAP to Non-GAAP Reconciliation: EBITDA
GAAP to Non-GAAP Reconciliation for the Fiscal Year Ended (in thousands) 26-Sep-20 28-Sep-19 29-Sep-18 30-Sep-17 24-Sep-16 EBITDA Reconciliation Net income attributable to Central Garden & Pet 120,676 92,786 123,594 78,828 44,514 Interest expense, net 39,989 33,060 36,051 28,062 42,707 Other expense