morgan stanley 2017 global consumer and retail conference/media/files/e/edgewell-ir/... ·...

Morgan Stanley 2017 Global Consumer and Retail Conference

David Hatfield President, Chief Executive Officer and Chairman of the BoardNovember 14, 2017

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, 2016 and its quarterly reports on Form 10-Q for the quarters ended December 31, 2016, March 31, 2017, and June 30, 2017.

Forward-Looking Statements

While the Company reports financial results in accordance with accounting principles generally accepted in the U.S. (“GAAP”), this presentation also includes non-GAAP measures. These non-GAAP measures are generally referred to as “adjusted” or “organic” and exclude items such as spin costs, restructuring charges, the sale of the industrial business and impairment of intangibles.

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 and provides insights into future performance. 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. The Company also believes that providing this information provides a higher degree of transparency.

This presentation includes references to organic net sales, adjusted operating margin, adjusted EPS, free cash flow and working capital. For definitions of these terms and reconciliations to GAAP measures, refer to the Company’s earnings release for the second quarter of the 2017 fiscal year and other materials that can be found on its Investor Relations website at http://ir.edgewell.com.

Non-GAAP Financial Measures

http://ir.edgewell.com/

FeminineCare

Infant Care

60%15%

19%

6%

Wet Shave Feminine Care

Sun & Skin Care Infant & Other

2017 Sales Mix: Segment

Edgewell Personal Care Portfolio

Diversified Portfolio

Strong Brands

25%

20%25%

19%

11%

Men's Systems Women's Systems

Disposables Private Label

Shave Prep

2017 Global Sales Mix: Wet Shave

Wet Shave

Sun & Skin Care

N.A. 48% Inter. 52%

Geo Mix*

Edgewell’s Strategic Pillars: FY’18 – FY’20

Fuel Growth - Colleague Engagement

- Enhanced Organizational Capabilities

- Systematic Cost Reduction- ZBS, Productivity

Re-configure into Growth Opportunities- Grow share in E-Retail, Growth Channels

- Expand International footprint / scale- Build E-Comm & Digital Capabilities

- Enter new growth Categories via M&A

Focus on the fundamentals- Build Brand Equity/ Consumer Engagement

- Compelling Innovation- Leverage the Full Portfolio

- Category Solutions

Goals: Exceed our medium term Financial Commitments• + 2-3% Net Sales growth • + 50 BPS Operating Margin Improvement • High Single Digit EPS growth • 100%+ Cash

Conversion

Deliver Portfolio Objectives• Grow global share in Wet Shave, Sun and Skin Care • Increase profitability in Fem Care, Infant and Others

2017 Results Reflected a Challenging Category and Competitive Environment

2017 Results Progress on Strategic Pillars

Organic Net Sales

-2.8%(1)

50 Basis Points of Adjusted Operating

Margin

11% Adjusted EPS Growth

Grow Market Share in Razors and

Blades and Sun Care

• Launched Innovation Across Portfolio

• Launched eCommerce Initiatives: Direct to Consumer, T-Mall Flagship Store, New Amazon Home Page

• Grew eCommerce Net Sales 45%, and Grew Share

• Grew China Net Sales 15%, and Grew Share

• Grew International Sun and Skin Care Organic Net Sales 14%

• Delivered ZBS Savings of $20 million

• Delivered Restructuring Savings of $22 million(1) Organic net sales exclude a -0.5% impact of currency

movement and a 0.6% benefit from the acquisition of Bulldog.

FY18: Focus on the Fundamentals




In 2018 We will Deliver Compelling Innovation Across all Segments and the Full Portfolio of Wet Shave

More Consumer-Centric and Impactful Innovation in FY18

Consumer Insights

Informed by

Emerging Trends

New to the World Technology

Strengthens

Brand Equity

FY2018: Innovation across EVERY Segment

Intuition Fab

Hydro Sense Razor

Banana Boat Simply Protect

Women’s System

Men’s System

Disposables

PrivateLabel

Sun Care

Fem/ Infant Care

Introducing a Revolutionary New Razor that safely shaves forward and back

Introducing Hydro Sense

Introducing Hydro SenseThe First and Only Razors that Auto-Adjusts Based on How He Shaves

Shock absorber technology

Introducing Banana Boat Simply Protect

strong, worry-free protection with 25% fewer ingredients

no oxybenzone, no parabens, no added oils or fragrances

FY18: Re-configure into Growth Opportunities




Build on 2017 Success with Continued Focus and Investment in Growth Initiatives

FY18: Re-configure into Growth Opportunities







Vision We will be the trailblazing personal care company leveraging our colleagues’ creativity and passion to challenge convention and drive growth

Mission We will win through focus, insightful innovation and agility; delivering better solutions to our consumers and customers

FY18: “Fuel” Growth and Margin Expansion

Re-investment: A&P, Trade, Growth Initiatives

FY18/19 Restructuring Savings: $20 million

FY18 ZBS Net Savings Projection: $25 to $30 million

FY18 – Staying the Strategic Course in a Challenging Market

* as of November 9, 2017 Earnings Presentation**Organic, excluding M&A and Impact from Currency*** Free cash flow is defined as net cash flow from operating activities less capital expenditures. Free cash flow conversion is defined as free cash flow as a percentage of net earnings.

Net Sales**

Adjusted Operating Margin

Earnings Per Share

Earnings-to-Free-Cash-Flow Conversion Rate***

Flat with prior year

2018 Outlook*

20 to 25 basis point improvement

GAAP: $4.00 to $4.20Non GAAP: $3.80 to $4.00

100%+

Edgewell’s Strategic Pillars: FY’18 – FY’20










Goals: Exceed our medium term Financial Commitments• + 2-3% Net Sales growth • + 50 BPS Operating Margin Improvement • High Single Digit EPS growth • 100%+ Cash

Conversion

Deliver Portfolio Objectives• Grow global share in Wet Shave, Sun and Skin Care • Increase profitability in Fem Care, Infant and Others

morgan stanley 2017 global consumer and retail conference/media/files/e/edgewell-ir/... ·...

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