Professional Documents
Culture Documents
Agenda
First Year
Energizer Holdings, Inc.
Strategic Priorities
Delivering Long-Term Value
Financial highlights
Three consecutive quarters
of organic sales growth in
Fiscal 20161
Quarter 1
+9.5%
Quarter 2
+0.5%
Quarter 3
+1.2%
+4.4%
(1) Organic net sales excludes the impact of currencies, international go-to-market changes,
and changes in Venezuela results. See appendix for a reconciliation of GAAP to nonGAAP items.
$22M
$84M
Million
$70
$60
HandStands acquisition
$62M
$50
$40
$30
+52%*
$20
$10
$0
Dividend
Share
Total Capital
Repurchase Returned to
Shareholders
(1) Excludes acquisition and integration costs associated with the transaction.
(2) Post-Spin Total Shareholder Return is calculated from July 1, 2015 to August 15, 2016, inclusive of dividends paid
during that period.
*See appendix for a reconciliation of GAAP to non-GAAP items.
Agenda
First Year
1.7
Billion
Revenue
5,200
customers served,
reaching
Million
(1)
(2)
(3)
in auto fragrance
category2
consumers globally
1
11%
Working Capital
As % of sales
Through
June 2016
or
battery
manufacturers
in the world
#1 #2
Energizer
and
Eveready
batteries
are ranked3
in battery category1
of the largest
170
33% 24%
BILLIONS of
Projected FY 16
>$
globally
(in 32 of 34 measured
markets)
No. of
manufacturing
facilities today,
strategically
located in North
America, Africa
& Asia
iconic,
globally
recognized
brands
We sell in
8 140
inclusive of HandStands
global markets
Peer 1
14.6
ENR*
12.9
Peer 2
11.7
Peer 3
11.7
Peer 4
10.5
Peer 5
8.9
Peer 6
8.4
Peer 7
7.5
Peer 8
7.2
Peer 9
6.7
*ENR excludes 2015 cash paid for one-time spin costs and debt breakage costs, net of tax.
Source: Free cash flow utilizing most recent ENR and peer SEC filings as calculated by Bloomberg.
Note: Peers comprised of the following household products companies (in alpha order): CHD, CLX, HELE, KMB, NWL, SMG, SPB, TUP, WD40.
10
Batteries
(share in US $)
3B
76%
73%
27%
24%
in US retail sales
annually, with
premium brands
driving the vast
majority of those
sales
Batteries
account for about*
2011
Premium Brands (incl. Performance)
Today
Price/Value
6B
(1) U.S.: Nielsen US xAOC HOUSEHOLD BATTERIES 52 Weeks ending 8-13-16 and 52 Weeks ending 12-31-11;
Total Batteries, 52 Weeks ending 8-13-16; Global, Nielsen Global Track, Total Batteries, 52 Weeks ending June
2016.
*Company estimate.
11
#
Brand
in Rechargeable
in Portable Lights
in
Specialty
batteries
in Lithium
Worlds
st
Made with
recycled
batteries
in Premium
Nielsen Global Track 52-weeks ending June 2016 and Lights: Nielsen Total US xAOC, Portable Lights Category, 52weeks ending 8-6-16
12
BRAND
in Value
Alkaline
Nielsen Global Track, 52-weeks ending June 2016.
in Carbon Zinc
13
43%
Our
products
are sold in
more than
140
markets
around the
world
SING
37%
78%
GB
23%
KOR
USA
FRA
33%
25% 29%
MEX
EGP
34%
85% 43%
ITA
47%
SAU
HK
40%
COL
MAL
39%
76%
SAF
ARG
51%
42%
AUS
NZ
68% 78%
Value share data from Nielsen Global Track, 52-weeks ending June 2016; including all Energizer and Eveready branded
batteries. Brand rank excludes Private Label.
14
DEVELOPED
vs.
DEVELOPING
TOP 10
vs.
ALL MARKETS
50%
50%
77%
76%
23%
U.S.
International
Developed
Developing
Top 10
24%
All Other
15
3.0%
2.0%
-0.5%
1.0%
-1.0%
-0.8%
+0.1%
0.0%
-1.5%
-0.6%
-1.0%
-2.0%
-2.0%
-3.0%
-2.5%
-2.4%
2009-2014
Average
Trend
2015
2016
-2.4%
-3.0%
(1) Nielsen Global Track through June 2016, World Monthly Markets.
(2) Nielsen Total U.S. xAOC through August 13, 2016
% Volume on
Promotion
% Discount on
Promotion
16
Premium
16%
50%
17%
Value
Performance
Premium
Performance
Price/Value
Lights
Specialty
17%
Premium Alkaline
Lithium
Performance Alkaline
Rechargeable
Value Alkaline
Carbon Zinc
Specialty Batteries
Lighting Products
17
Value Trend
Versus Prior Period
Premium
12%
46%
28%
Segment
0.9%
Performance
Price/Value
EHI Share of
Segment
41%
36%
0.0%
9%
-2.8%
14%
Specialty
Nielsen Global Track, World Monthly Markets, 52 Weeks Ending June 2016
4.8%
42%
18
Sporting
Goods
Military
Traditional
Online
Trade
Hobby/
Craft
Food/
Drug/
Mass
Energizer
75%
25%
No
customers in
the top 10
are exclusive
Club
Convenience
Dollar
Office
Top 5
Auto
Top 5
customers
are ~25% of
sales
All Other
Home
Center
19
Our battery
products are
sold in multiple
locations
throughout the
store
20
Introduction to HandStands
Leading designer and marketer of innovative automotive fragrance products
Brand Portfolio
Transaction
Automotive Fragrance
(~80% of net sales)
(Eagle One)
Geographic Breakdown
(percent TTM net sales through June 2016)
International
17%
U.S.
83%
21
Introduction to HandStands
Broad portfolio in auto fragrance and appearance
22
24%
VALUE SHARE
IN AUTO FRAGRANCE3
7.1%
7.5%
6.2%
Category:
3.3%2
4.5%
2.8%
3.0%
3.3%
3.4%
3.6%
2.1%
Others
Washer
Fluids
Performance
Fluid
Towing &
Chemicals Management
Hitch
Appearance
Chemicals
Wipers
Refrigerants
Lighting
Air
Fragrance
23
DIY
Sporting
Goods
Military
Traditional
Trade
Online
Hobby/
Craft
Food/
Drug/
Mass
HandStands
Club
C&G
Auto 28%
Dollar 24%
Food/Drug/Mass 37%
HANDSTANDS SALES
BY GEOGRAPHY
(percent of LTM net sales through June 2016)
International
17%
Dollar
Office
Auto
Home
Center
U.S.
83%
83% of sales
in the U.S.
75% of U.S.
sales overlap
with existing
ENR
customers
Opportunity to
expand
distribution
with existing
customers
and into new
channels and
geographies
24
Agenda
First Year
Energizer Holdings, Inc.
Strategic Priorities
Delivering Long-Term Value
25
FOCUS
ON
MAXIMIZING
CASH
FLOWS
26
Our Longest
Lasting Energizer
MAX Ever
The Worlds First
Rechargeable AA &
AAA Batteries Made
With 4% Recycled
Batteries
Improved Brightness
Patented
Touch Technology
Improved Brightness
Patented
Digital Focus Technology
Expansion of the
Emergency & Safety
Product Line
27
28
CUSTOMER
ENGAGEMENT
2.1%
2.0%
1.5%
EXECUTION
VISIBILITY
1.0%
1.0%
0.5%
0.5%
0.1%
SHOPPER BASED
SOLUTIONS
CATEGORY
FUNDAMENTALS
0.0%
13 week
52 week
(1) Nielsen Global Track, World Monthly Markets 52 weeks and 13 weeks ending June 2016. Nielsen Total U.S.
xAOC 52 Weeks and 13 Weeks ending 8-13-16
29
WORKING CAPITAL
(FY16)
>
flow
$200M cash
improvement
120
16%
103
96
100
80
18%
60
66%
40
66
48
42
24
20
0
COGS
SG&A
Other
DSO
FY '11
DII
DPO
SG&A
Dispre-spin synergies
ZBB
SG&A
Savings post-spin
Q3 FY '16
30
Trade Investment
Global Areas
of Focus
3
4
Trade Investment
Accomplishments
Global Areas
of Focus
Objectives
Disciplined and ROI based approach to
pricing and promotion management
Focused on profitable share through strategic
joint business planning with our retail partners
32
Global Areas
of Focus
Objectives
Improve Days in Inventory through SKU
optimization and simplification
Maintain leading Days Sales Outstanding
and Days Payable Outstanding positions
33
SG&A Optimization
Accomplishments
Global Areas
of Focus
Objectives
Annual cost optimization
Continue Zero Based Budgeting
Continuous challenge through internal and
peer benchmarking
34
Procurement
Accomplishments
Global Areas
of Focus
Objectives
Annual cost optimization
Optimize and standardize vendor payment
terms
35
Global Areas
of Focus
Objectives
Annual cost optimization
Partner with our commercial teams to meet retail
partner expectations
Support innovation efforts
Leverage global supply chain in acquisition
integration
36
Agenda
First Year
Energizer Holdings, Inc.
Strategic Priorities
Deliver Value
Reinvest
in
our
Business
Return of
Capital
Selective,
Disciplined
M&A
Pillars
to our
success
Our foundation
38
39
Reinvest in business
Innovation to drive profitable share gains
Introduced innovation across most of our portfolio
Information systems
Updated critical IT systems to drive reporting simplification and better
trade spend analysis
40
80%
70%
Share Repurchases
$1.10
~70%
60%
50%
40%
30%
$1.00
0.6
6.9
~40%
20%
10%
0%
U.S.Cash Adjusted
Flow
Net Income
7.5
FY 16
FY 17
Share
Shares
Remaining on
Authorization Repurchased Authorization
on July 1, 2015
in FY 16
*Normalized Cash Flow, including pro forma HandStands cash flow and net income.
1Future dividends declarations are subject to approval by the Board of Directors.
41
Right Place
Customer, channel and
geographic overlap
Leverage existing global
battery platform and integrated
supply chain
Right Time
Maintaining core business
performance is a priority
Balance with other integration
efforts, initiatives and
investments
Right Price
Maximizing long-term
shareholder value drives our
decision process
Maintain healthy balance
sheet
42
Summary Capitalization
($M Pro-Forma)
Cash
$300
Total Debt
$1,050
>$170
43
LONG-TERM OUTLOOK
Organic Revenue
Adjusted EBITDA
Tax Rate
(ex unusuals)
Capital
Expenditures
Free Cash Flow
(ex unusuals)
Dividends
Key take-aways
Strong start to first full year as a stand-alone
company
Solid business fundamentals
Executing on our three strategic initiatives
Maximizing free cash flow
Balanced approach to capital allocation to
drive long-term shareholder value
45
Q&A
BRIAN HAMM CHIEF FINANCIAL OFFICER
MARK LAVIGNE CHIEF OPERATING OFFICER
4
6
Appendix
4
7
% chg
9.5 %
(1.1) %
(0.6) %
(6.7) %
1.1 %
Q2'16
$ 356.9
1.9
(3.9)
(5.4)
(15.5)
$ 334.0
% chg
0.5 %
(1.1) %
(1.5) %
(4.3) %
(6.4) %
Q3'16
$ 374.3
4.5
(5.2)
(12.6)
$ 361.0
% chg
1.2 %
(1.4) %
%
(3.4) %
(3.6) %
YTD Q3'16
$
1232.5
53.8
(14.7)
(8.5)
(61.3)
$
1201.8
% chg
4.4 %
(1.2) %
(0.7) %
(5.0) %
(2.5) %
48
Net Sales
(in billions)
$
$
$
$
$
1.2
0.4
1.6
0.1
1.7