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Staples Conference
Page 1
Forward-Looking Statements
Unless the context otherwise requires, references in this presentation to “Edgewell,” “we,” “our,” and “the
Company” refer to Edgewell Personal Care Company, a Missouri corporation, and its consolidated subsidiaries.
Forward-looking statements are not based on historical facts but instead reflect the Company's
expectations, estimates or projections concerning future results or events, including, without limitation,
the future earnings and performance of the Company or any of its businesses. These statements are not
guarantees of performance and are inherently subject to known and unknown risks, uncertainties and
assumptions that are difficult to predict and could cause the Company's actual results to differ materially
from those indicated by those statements. The Company cannot assure you that any of its expectations,
estimates or projections will be achieved. The forward-looking statements included in this presentation
are only made as of the date of this presentation and the Company disclaims any obligation to publicly
update any forward-looking statement to reflect subsequent events or circumstances. Numerous
factors could cause the Company's actual results and events to differ materially from those expressed or
implied by forward-looking statements.
In addition, other risks and uncertainties not presently known to the Company or that it considers
immaterial could affect the accuracy of any such forward-looking statements. All forward-looking
statements should be evaluated with the understanding of their inherent uncertainty. Additional risks
and uncertainties include those detailed from time to time in the Company's publicly filed documents,
including the Company's annual report on Form 10-K for the year ended September 30, 2017 and its
quarterly reports on Form 10-Q for the quarters ended December 31, 2017, March 31, 2018, and June 30,
2018.
Page 2
Non-GAAP Financial Measures
While the Company reports financial results in accordance with accounting principles generally accepted in
the U.S. ("GAAP"), this discussion also includes Non-GAAP measures. These Non-GAAP measures are
referred to as "adjusted“, "organic" or “underlying” and exclude items such as impairment charges, the
disposition of the Playtex gloves business, the impact of the Tax Cuts and Jobs Act (the "Tax Act"), costs
associated with the acquisition and integration of Jack Black, L.L.C. ("Jack Black"), restructuring charges
and amortization of intangibles. Reconciliations of Non-GAAP measures, including reconciliations of
measures related to the Company's fiscal 2018 financial outlook, can be found in the Company’s earnings
releases for the third quarter of fiscal 2018 and full year fiscal 2017.
This Non-GAAP information is provided as a supplement to, not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP. The Company uses this Non-GAAP
information internally to make operating decisions and believes it is helpful to investors because it allows
more meaningful period-to-period comparisons of ongoing operating results. The information can also be
used to perform analysis and to better identify operating trends that may otherwise be masked or
distorted by the types of items that are excluded. This Non-GAAP information is a component in
determining management's incentive compensation. Finally, the Company believes this information
provides a higher degree of transparency.
For definitions of these terms and reconciliations to GAAP measures, refer to the Company’s earnings
release for the third quarter of the 2018 fiscal year and other materials that can be found on its Investor
Relations website at http://ir.edgewell.com.
Page 3
Agenda
Page 4
Today’s Key Messages
• Portfolio of competitive and profitable brands
o Since the launch of Edgewell in July 2015, have gained market share in challenging
categories
o Innovating and launching compelling new products
o Executing strategic growth initiatives
Page 5
Overview of Edgewell
Strong Brands
15% 24%
Private Label
20%
19% 60%
Sun & Skin Wet Shave
20%
Branded
Women’s Systems
25%
Branded Disposables
* Fiscal 2017 mix
Page 6
Strategy for Growth
Fuel Growth
- Colleague Engagement
- Enhanced Organizational Capabilities
- Systematic Cost Reduction
- ZBS, Productivity
Page 7
Focus on the Fundamentals
Page 8
Re-configure into Growth Opportunities
Investments in Strategic Growth
Initiatives are Working
International
Expansion
International
Sun Care
Bulldog / Jack
Black
(1) Includes Latin America, Asia Pacific (excluding Japan and Australia), Eastern & Central Europe and Middle East & Africa.
Page 9
Increased Market Share in Core Segments,
Despite Challenging Categories
U.S. Razors & Blades Share Global Razors & Blades Share(1)
+10
+140 bps
bps 27.0 22.8 22.9
+110 26.0
bps
24.9
Category
growth
+80bps
Q3’15 Q3’18
Sources: Nielsen xAOC; Global defined as select EPC markets; Category growth 2015 thru 2018 Q3 YTD
(1) Understated due to exclusion of international private label.
Page 10
Driving Change
• As part of the Company’s annual strategic review process, the Board and management
team considered rapidly changing consumer, competitive and retail trends, their impact
on Edgewell’s future performance, and potential opportunities created for Edgewell
• This review was conducted with the assistance of external advisors and included:
– A comprehensive review of all business segments, addressing performance in
challenging category environments
– Assessment of all value creation levers
• Following this review, the Edgewell Board and management team determined that
Project Fuel is the best path to drive value creation for all stakeholders
• Management and the Board have been and will remain open minded and committed to
taking actions in the best interests of the Company and its shareholders
Page 11
Driving Improvement and Growth Through
Project Fuel
Fuel Growth
Page 12
A Refreshed Senior Leadership Team Focused on
Execution and Creating Value New to EPC
Rod Little Colin Hutchison Paul Hibbert Anne-Sophie Gaget Stephanie Lynn John Hill Marisa Iasenza
Chief Financial Chief Operating VP, Global Supply VP, Global Strategy VP, eCommerce Chief Human Chief Legal Officer
Officer Officer Chain and Operations And Innovation Resources Officer
20+ years of 30+ years of 25+ years of 25+ experience in 20+ years of 30+ years business, 20+ years of
global experience operational and manufacturing, consumer goods eCommerce, digital management, cross- experience in cross-
in consumer goods leadership experience distribution, industry, with marketing and functional and border M&A, SEC
organizations in consumer goods transportation, marketing, general database marketing leadership experience reporting, corporate
customer service, management and experience governance, corporate
Public company 13 years with procurement and sales business Previously led finance and
track record of Edgewell, previously and operations transformation Previously served as Edgewell’s North compliance
driving results serving as VP of planning experience experience. VP of eCommerce for American commercial
through business Commercial Vineyard Vines organization Previously served as
transformation International Previously served as Previously served as SVP, General Counsel
EVP of Supply Chain regional VP for South and Secretary at
for Safety-Kleen Europe, Middle-East Harman International
Systems, Inc. and Africa. Industries
Page 13
Diverse, Experienced Board of Global Thought
and Business Leaders New Members since 2015
David P. Hatfield Daniel J. Heinrich Carla Hendra R. David Hoover John C. Hunter
CEO and Chairman of the Board EVP, CFO (Retired) Chief Executive Chairman and CEO (Retired) Chairman, President and CEO (Retired)
Edgewell Personal Care The Clorox Company Ogilvy Consulting Ball Corporation Solutia, Inc.
• Leadership, strategy, • Strategy, business • Brand strategy, digital • Operations, finance • Risk management,
M&A, marketing, development, operations, marketing, data/analytics • CPG industry veteran with corporate governance and
advertising financial management, and long-term planning insight into complex regulatory, sustainability,
• Began career in Eveready accounting principles, financial • 25+ years of experience in business, operational and executive compensation
Battery division in 1988 reporting global B2B and B2C financial issues • Extensive experience as a
• 34+ years of experience in CPG marketing director in CPG companies
industry
Effective October 1, 2018
James C. Johnson Elizabeth Valk Long Rakesh Sachdev Joe O’Leary Gary K. Waring
General Counsel (Retired) Executive Vice President (Retired) Chief Executive Officer President and COO (Retired) Accounting Professional (Retired)
Loop Capital Markets LLC Time Inc. Platform Specialty Products Corporation Petsmart, Inc. Ernst & Young
• Legal, compliance, risk • Marketing, communications, • Finance, strategy, • Executive leadership, • Accounting, audit,
management, corporate human resources, legal management, accounting, operations, marketing, financial reporting,
governance, executive • First female to be named financial reporting logistics corporate governance and
compensation publisher at Time, Inc., • Nearly 30 years of • 20+ years of CPG regulatory, M&A,
• Extensive executive extensive consumer experience in leadership, experience and expertise in restructuring
management and leadership marketing, customer service, finance, strategy and operations and logistics, • 35+ years of consulting
experience distribution, production, general management M&A and restructuring experience with increasing
human resources, legal leadership and operating
affairs and communications responsibilities
experience
Page 14
Driving Improvement and Growth Through
Project Fuel
Page 15
Agenda
Page 16
2018 Performance: A Mandate for Project Fuel
-12%
Adjusted EPS Growth Increased At mid-point of outlook
Earnings-to-Free-Cash-
100%+ 100%+
Flow Conversion Rate(4)
Page 17
2018 Sales Mix*
Net Sales
Challenged Businesses Growth Initiatives
(Optimize ROI) (Invest for Growth)
20% 20%
N.A. Branded Men’s Shave International Expansion
N.A. Shave Preps International Sun Care
Feminine Care eCommerce
Bulldog / Jack Black
60%
Stable Businesses
(Maintain/Grow)
N.A. Sun Care
Private Label Shave
N.A. Women’s and Disposables
International Shave (Developed Markets)
Infant/Other
* Approximate sales mix based on 2018 Outlook as of August 7, 2018 earnings call
Page 18
Strong Free Cash Flow
$107M(2)
(1) Free cash flow is defined as net cash flow from operating activities less net capital expenditures and proceeds from divestitures.
(2) Includes $100M to fund International Pension Plans.
(3) As of August 7, 2018 Earnings Presentation.
Page 19
Capital Allocation Priorities
Deleverage(2)
Page 21
Project Fuel Will Impact All Areas of the Business
• SG&A / R&D
COGS Mix
• Brand Investment
52% Materials (A&P, Trade, Price)
26% Overhead
10% W&D
8% Labor
4% Other
Page 22
Project Fuel: Rapid Return on One-Time Costs
$170M
$80M
Balanced Approach to Investment
and Margin Expansion
• Overcome rising inflation and
other Commodity costs
• Increase Brand Investment Fiscal 2019 Fiscal 2020 Fiscal 2021
• Margin Expansion
A&P SG&A/R&D Ops & Supply Chain
(1) Timing of project fuel savings between the 2019 and 2020 fiscal years may be refined as project plans are completed. Page 23
Project Fuel: Building a More Agile and Modern
CPG Company
Page 24
Project Fuel Will Provide Resources for Growth
Page 25
Agenda
Strategic
Strategic Overview
Overview David
David Hatfield, Hatfield
CEO and Chairman
Project
Project Fuel Fuel
and Financials Rod Little
Rod Little, CFO
Reinvestment
Reinvestment Priorities Colin Hutchison,
Priorities Colin COO
Hutchison
Page 26
Reinvestment Priorities
Focus on the
Re-configure into Growth Opportunities
Fundamentals
Drive eCommerce
International
and Digital Across the
Expansion
Portfolio
Page 27
EPC U.S. R&B Share Performance Resilient:
Investment Required for Growth Going Forward
EPC $ Share of Razors and Blades Nielsen Nielsen Industry Growth
18.3
17.6 17.4 17.2 17.6 18.2
17.4 17.6 17.2
19.0 17.8
18.5
17.9
-2.9%
-4.0% -4.0%
-5.2%
-6.1%
-6.4%
1.2 1.1 0.9
9.4 9.4 -7.7%
8.4 9.1 8.4 9.0 8.9 9.1 8.8 -8.2%
7.9
5.9 6.2 5.8
-9.1%
-10.1%
Q3’15
Q4’15
Q1’16
Q2’16
Q3’16
Q4’16
Q1’17
Q2’17
Q3’17
Q4’17
Q1’18
Q2’18
Q3’18
Q3’16
Q4’16
Q1’17
Q2’17
Q3’17
Q4’17
2017
Q1’18
Q2’18
Q3’18
Sources: Nielsen XAOC
Note: Quarters are EPC fiscal year end September 30. Page 28
Focus on the Fundamentals
Exclusive Partnership
Ultimate Technologies – Performance Seekers B&M & DTC
Extend Frame of
Reference: Hair with
New New Brands
Leverage Unique Portfolio & Brands
Across All Price Tiers
Page 29
Focus on the Fundamentals
Men’s: Hydro Body Disposables: Xtreme Pivot Ball Women’s: Bare by Schick
Women’s: Intuition f.a.b.
Page 30
Focus on the Fundamentals
f.a.b. Launch
Staggered launch in 8 markets globally
f.a.b. helping grow share/improve trends in 4 of 5
key markets
Global $ growth of total intuition franchise +14%
across 14 markets
Page 31
Focus on the Fundamentals
Page 32
Focus on the Fundamentals
Page 33
Focus on the Fundamentals
Video
Page 34
Re-configure into Growth Opportunities
Key Global Sun Markets: EPC Outpaces Sun Category Dollar Sales 2x
Page 35
Re-configure into Growth Opportunities
2018 Highlights
• U.K.: Fastest growing male skincare brand: +18%, over 17% market share
• Increased global footprint from 9 countries to 25 countries
• Launched sugarcane packaging & shower gel refills kits, reducing our environmental impact
• Revamped “Direct to Consumer” site in the U.K., upcoming in the U.S. in October 2018
• Extending brand from skincare to male grooming, with disruptive approach on high
penetration categories: Launched the first Bamboo razor line at Boots and Walgreens
Page 36
Re-configure into Growth Opportunities
2018 Highlights
Increased Sales Brand Investment
Driving Growth:
• #1 Position in Prestige:
Organic sales +10-17% (B&M)
• Distribution Gains:
New Doors in the US at ULTA,
DILLARDS and Sephora inside
JCPenney
• International Expansion
Through e-Commerce:
China sales +57%
Page 37
Re-configure into Growth Opportunities
Amazon Fiscal
2016 – 2018E(1)
CAGR
+35%
Schick.com launched in
June’18 with Bulldog
coming in the U.S. in
October
(1) Expected fiscal year 2018 sales growth as of August 7, 2018 earnings call. Page 38
Re-configure into Growth Opportunities
New
Schick.Com
Page 39
Re-configure into Growth Opportunities
• Japan: New Hydro Shave Prep • Hydro Launch in B&M • DTC player partnership in South
• Asia: Bulldog & Jack Black in +3 countries • eCommerce increased 4x with Korea, Upcoming India
• Australia: Hawaiian Tropic boosted Schick presence at Tmall and • Re-entered Argentina, with Sun
opening of JD.Com flagship then Shave in March 2018
• Germany: Hawaiian Tropic
• Banana Boat and Jack Black launches • Re-entered Russia with Private
• Latin America: Expand permanent through Cross Border Label
presence in Sun and Sport segment
Page 40
Closing Thoughts
Page 41
Barclays Global Consumer
Staples Conference
Q&A
Page 42