Академический Документы
Профессиональный Документы
Культура Документы
New York, NY
February 9, 2010
Agenda
2
Opening Remarks
3
Safe Harbor Statement
This presentation contains forward-looking statements relating, among others, to sales and earnings growth, including
growth for the laundry detergent business, cash flow, margin improvement, marketing spending, new product
introductions, contribution to revenue, growth and gross margin expansion by the new laundry detergent manufacturing
plant and warehouse facility, capital expenditures and cash transition expenses related to the new facility, forecasted
organic sales growth and earnings per share growth, the Company’s focus on targeted marketing and new product
introductions and investment in a global information systems project. These statements represent the intentions, plans,
expectations and beliefs of the Company, and are subject to risks, uncertainties and other factors, many of which are
outside the Company’s control and could cause actual results to differ materially from such forward-looking
statements. The uncertainties include assumptions as to market growth and consumer demand (including the effect of
political and economic events on consumer demand), retailer actions in response to changes in consumer demand and
the economy, raw material and energy prices, the financial condition of major customers and vendors, interest rate and
foreign currency exchange rate fluctuations and changes in marketing and promotional spending. With regard to the new
product introductions referred to generally in this release, there is particular uncertainty relating to trade, competitive and
consumer reactions. Other factors that could materially affect actual results include the outcome of contingencies,
including litigation, pending regulatory proceedings, environmental matters and the acquisition or divestiture of
assets. For a description of additional factors that could cause actual results to differ materially from the forward looking
statements, please see the Company’s quarterly and annual reports filed with the SEC, including information in the
Company’s annual report on Form 10-K in Item 1A, “Risk Factors.”
4
Agenda
5
Fourth Quarter 2009 Overview
(Excluding New Plant)
6
2009 Highlights – Another Great Quarter
(Excluding New Plant)
7
Share Growth on 5-of-8 Power Brands
9
High Quality 2009 Results!
(Excluding New Plant and Legal Settlement)
($ in millions)
2008 2009
Net Sales $2,422.4 $2,520.9 +4%
Organic Growth 7.0% 5.0% 7.0% Consumer
Gross Margin 40.5% 44.8% +430 bps
Mktg. % of Sales 12.1% 14.0% +190 bps
SG&A as % of Sales 13.9% 14.1% +20bps
10
Double Digit EPS Growth In Every Quarter
$.92
$.86 $.86
$.83
Q1 Q2 Q3 Q4
11
Another Year of Strong Organic Sales Growth
12
Consumer Volume up 5% in 2009
Consumer 5% 2% 7%
Specialty -18% 7% -11%
Total 2% 3% 5%
13
Share Growth on 7-of-8 Power Brands in 2009
15
GM: Driven by Cost Savings & Pricing/Mix
(2009 vs. 2008)
Estimated Change
(Basis Points)
Gross Margin Expansion (’09 vs. ’08) 430
Explained by:
Raw Input Cost Decreases 200
Cost Savings 50
Pricing/Mix 130
Subtotal 380
Orajel 50
Total 430
4x Target Leverage
Range of 2-3x
3x 2.7x
2.3x
2x
1.9x
1.6x
1x
0x
2006 2007 2008 2009
19
Significant Financial Capacity
20
Prioritized Uses of Free Cash Flow
1. TSR-accretive M&A
4. Debt reduction
21
Agenda
22
Consumers Love Our Products
23
Our 8 Power Brands Generate . . .
80%
= of
Sales &
Profits
24
Our Premium Brands are Market Leaders
26
Our Value Brands Thrive in a Recessionary
Economy
27
Our Value Brands Offer Significant Savings
Cheer 86 Purex 53
Wisk 72 Sun 35
all 70 Xtra 32
28
Consumers have Shifted from Premium
and Mid Tier Brands to Value Brands
+12.0%
+4.9%
-2.7%
-7.5%
Premium Liquid Mid Liquid Value Liquid Extreme Value
Detergent Detergents Detergents Detergents
Source: Nielsen, Homescan Panel, Pre Period: 52 w/e 12.27.08, Post Period: 52 w/e 12/26/09, Total US;
Buyer Group Definitions-Source: Market Structure Light 2009, Premium LQ Buyers – Tide & Cheer, Mid LQ Buyers – Gain, Wisk, Era, All, Value
LQ Buyers – A&H, Purex, PL, Extreme Value LQ Buyers – Xtra, Sun
29
Church & Dwight Captured 90% of the
Growth in the Value Tier
Source: Nielsen 52 weeks from 12/26/09- Value Tier Excludes Private Label, FDDMXBJ’s 30
And Captured 80% of Liquid Laundry
Growth in 2009
33
McKinsey Study: Aug/Nov. 2009
The “New Normal” for Consumers
“Changes in perceptions”
36
Growth of Value Detergent is Driving Growth
of Laundry Additives
38
AND GUESS
WHAT BRAND
BENEFITS?
39
America’s #1 Laundry Additive
41
In 2009 We Increased Marketing
Investment Behind All Power Brands
Higher
Marketing
Value Gross $s On
Brand Margin Power
Growth + Growth = Brands
42
Why? Because Investing During a Recession
Helps You Emerge in a Stronger Position
275%
During the early 1980’s recession, companies that
maintained aggressive sales & marketing efforts
enjoyed more growth after the recession
Revenue
Growth % in
First Five
Years After
Recession
19%
Source:
Source: McGraw-Hill
McGraw-Hill Research
Research 43
We Increased Marketing $60 Million in 2009
and $137 Million Since 2006
44
Used Increased Marketing $s to Increase Share of
Voice (SOV) Above Share of Market (SOM)
2008 2009*
A&H Laundry + +
OxiClean + +
A&H Cat Litter +
A&H Dental Care +
SpinBrush + +
First Response +
Trojan
+25% vs.
YA
+19% vs.
YA
+16% vs.
YA
1.9
+2% vs.
4.1
YA
1.6
+1%
vs. YA
1.1
-2.1
DIAGNOSTICS FRSTRESPONSE
FRST RESPNS
1.1
LQD DET A&H LQD LQD DET XTRA STN OXICLEAN LITTER A&H CONDOMS TROJAN BTTRY SPINBRUSH DIAG FRST
DET LQD DET FGTRS CLMP BRUSHES RESPONSE
LTTR
Source: Nielsen FDDMxBJs Latest 52 Wks Ending 12.26.09/ Condoms: 26 Wks Ending 12.26.09
53
CHD Power Brands Beat Category Growth
20 out of 24 Times from 2007 - 2009
55
2010 Business Environment Outlook
Commodity Headwinds
56
2010 CHD Outlook
57
NEW! ARM & HAMMER Power Gels
59
NEW Trojan Condoms Driving Record Shares
2009 2010
Launched in Q2 2009 New in 2010
2009 2010
Launching Rechargeable
Launched Sonic Batter-Powered
SpinBrush Version
Leverages Success of
Fastest Growing Brush in the
Category 2009 Launch
All the Benefits of #1
“Best Buy” Rating by Top
Consumer Magazine Brush at 65% Lower Cost
61
First Response: First to Achieve
“6 Day Sooner” Claim
2010 2009
The ONLY test that tells First to launch innovative
you 6 days before missed fertility test for women
period
62
Nair: Extending Successful Shower Power Line
2009 2010
#1 In-Shower Depilatory in Extending the Shower Power
the Market Platform with a Convenient Pump
63
More to Come
64
2010 Outlook
65
Continued Strong Marketing Support in 2010
+/-14% of Sales
66
New Products & Marketing Will Drive 4-5%
2010 Organic Sales
+7%
67
A&H Will Become Our 1st Billion Dollar
Brand in 2010
68
2010 Strategic Outlook
69
2010 Gross Margin Drivers
Cost Savings
Raw Materials
Trade Spending
Net
70
Gross Margin Expansion Led by New Plant
71
Consistent Strong EPS Growth
+13 to +15%
+19% +16%
73
Positioned for Acquisitions
74
Tight Acquisition Guidelines
Asset Light
75
Excellent Acquisition History
ArmKel Orajel
Carter-
JV OrangeGlo
Wallace
Unilever (50%)
Oral Care
USA SpinBrush
Detergents
76
2010 First Quarter Forecast
Organic +5%
EPS $1.05-$1.10
77
Agenda
78