Barclays Global Consumer Staples Conference Edgewell Personal Care Company September 7, 2016 Page 1
Agenda Strategic Overview and 2016 Performance David Hatfield Commercial / Growth Strategy Colin Hutchison Financial Perspective Sandy Sheldon Page 2
Forward-Looking Statements Unless the context otherwise requires, references in this presentation to “ Edgewell ,” “Personal Care,” “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, 2015 and its quarterly reports on Form 10-Q for the quarters ended December 31, 2015, March 31, 2016 and June 30, 2016. Page 3
Non-GAAP Financial Measures 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 various items, which can include the impact of changes in foreign currency, the impact of acquisitions and dispositions, the impact of deconsolidation of the Company’s Venezuelan operations, spin costs, restructuring charges, cost of early debt retirements and adjustments to prior years’ tax accruals. 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, underlying net sales, go-to-market impacts, adjusted EBITDA, normalized EBITDA, adjusted EPS, free cash flow and adjusted working capital. For definitions of these terms and reconciliations to GAAP measures, refer to the Company’s earnings release for the third quarter of the 2016 fiscal year and other materials that can be found on its Investor Relations website at http://ir.edgewell.com. Page 4
Strategic Overview and 2016 Performance David Hatfield Chief Executive Officer, President and Chairman of the Board Page 5
Key Takeaways • Fiscal 3Q 2016 year-to-date top and bottom line results have tracked to our expectations • Including underlying net sales growth and share gains in Wet Shave and Sun and Skin Care • 2016 Organization changes are largely complete, including international go-to-market changes • Continued global category growth expected for both Wet Shave and Sun and Skin Care • Fiscal 2016 full year expectations* in-line with our 2016 Operational and Financial Plan • Significant progress towards our long term financial algorithm as presented at our June 2015 Investor Day * As of 8/02/16 Earnings Release Page 6
Edgewell Personal Care Attractive Categories Strong Brands 2015 Sales by Segment Category Brands Key Geographies Wet Shave US, Canada, Japan, Germany 7% 17% Sun & Skin Care US, Mexico, Australia 60% 16% Feminine Care US and Canada Infant & Other US and Canada Wet Shave Feminine Care Sun & Skin Care Infant & Other Page 7
Edgewell Company Plan Framework A Strong Foundation On-going Value Drivers • Strong brands in growing categories 1 Accelerate Top Line Growth • Unique “Challenger” position 2 Systematic Cost Reduction • A culture dedicated to innovation, 3 Substantial Free Cash Flow Generation productivity, and value creation 4 Disciplined Approach to Acquisitions • Diverse geographic footprint 5 Leverage the Power of EPC’s Colleagues • History of strong profit growth and cash flow generation Page 8
2016 Will Position Us for Growth 2016 Priorities: A Transition Year… 2016 Financial Objective * • Flat Organic Sales Growth (including go-to-market impacts) Segment Share Solidify North • Flat Organic Sales in North America Improvement America Business • Continued “underlying” growth in International • Flat Organic EBITDA ** Align Teams Around Continue New Structure & International Priorities Expansion * Initial Fiscal 2016 Company objective as presented during the November 13, 2015 Earnings Call ** compared to 2015, with “normalized” EBITDA of $462 m. See page 4 Non-GAAP Financial Measures Page 9
Segment Share Improvement Strategic Priorities • Grow share in Wet Shave • Accelerate growth in Sun Care • Maintain Feminine Care sales and grow profitability • Stabilize Infant Page 10
Return to Growth in North America Strategic Priorities 2016 Status • Re-investment in A&P and • NA Net Sales showing improving marketing spend trends • Maintain strong innovation • Expect net sales growth for fiscal 2016 roadmap • With growth in Wet Shave • Leverage full portfolio and Sun and Skin Care • Re-build share of shelf • Wet Shave share gains for 5 • Meet competitive promo intensity consecutive quarters • Expanded distribution and sales in Growth Channels • Introduced new innovation across all segments Page 11
Continue International Expansion Strategic Priorities 2016 Status • Execute organizational changes, • Go-to-markets changes complete build distributor management • On time and on financial plan capabilities • Underlying net sales growth • Grow Wet Shave mid-single digit through 3Q YTD Fiscal 2016 • Continue Hydro Development • Expanded distribution and sales in • Invest against Disposables Growth Markets and Channels • Double-digit growth in value brands • Grow Sun double-digit • Continue distribution/visibility expansion • Roll out innovation Page 12
Growth Strategy Colin Hutchison Vice President Commercial International Page 13
Continued Category Growth in Wet Shave Global Wet Shave* Retail Sales U.S. Wet Shave* Retail Sales 2015: $4.2 Billion 2015: $15.5 Billion $18 $5.0 $16 $4.5 $4.0 $14 $3.5 $12 $3.0 US$Billions $10 US$Billions $2.5 $8 $2.0 $6 $1.5 $4 $1.0 $2 $0.5 $0.0 $0 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 F 2017 F 2018 F 2019 F US Rest of World Non-Measured Channels Measured Channels Source: 2015 Euromonitor Source: Measured: Nielsen Scantrack, Non-Measured: Slice and Nielsen Panel.. 2016-2019 Edgewell Projected *Wet Shave: Razors & Blades + Shave Prep Page 14
Edgewell’s Full Portfolio of Wet Shave Offerings are Aligned to Category Diversification Global Wet Shave* Retail Sales U.S. Wet Shave* Retail Sales 2015: $4.2 Billion 2015: $15.5 Billion $18 $5.0 $16 $4.5 $4.0 $14 $3.5 $12 $3.0 US$Billions $10 US$Billions $2.5 $8 $2.0 $6 $1.5 $4 $1.0 $2 $0.5 US Men’s Measured* $0.0 $0 is 9% of Global 2013 2014 2015 2016 2017 2018 2019 2013 2014 2015 2016 F 2017 F 2018 F 2019 F Category US Rest of World Non-Measured Channels Measured Channels Source: 2015 Euromonitor *2016-2019 Edgewell projected sales Source: Measured: Nielsen Scantrack, Non-Measured: Slice and Nielsen Panel.. 2016-2019 Edgewell Projected Page 15
Global Sun Care Category Growth Driven by Latin America & Asia Global Sun Care Retail Sales 12.0 3% 10.0 8.0 US$Billions 6.0 v 4.0 2.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 NA EU & MEA APAC LatAm Total Markets Source: Euromonitor: Total Sun Care +Baby Sun Care. Fixed Currency@2015 Rate. Forecast values for 2016-2020. Page 16 Confidential
Edgewell Growth Strategies: Accelerate Top Line Growth Meaningful Continue Drive Leverage Full Investment in International Innovation Growth Brands & Portfolio Expansion Channels Page 17
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