We Have Strong Brands and Competitive Positions CATEGORY BRANDS KEY GEOGRAPHIES RANK US, Canada, Japan, #2 Wet Shave Germany Globally #1 Sun & Skin Care US, Mexico, Australia Sun Feminine Care 1 #2, #3 US and Canada Infant Care #1 US and Canada 1 #2 market share position of total tampons and #2 or #3 in liners and pads : US and Canada Nielsen 1/10/15
Edgewell Personal Care: Where We Are 2014 Sales 7% International Performance Total Personal Care 13% • +4.4%* Total Int. Growth (CAGR 2008- 19% 2014) 61% • 2X Sales in Int. Sun Care Since 2008 • +9%** Total Developing Markets Growth US & Canada EMEA Asia Latin America • +7% Developing Markets Shave Share (2008-2014) 8% • +17% Developing Markets Sun Care 2014 Sales 17% Wet Shave and Share (2008-2014) Sun/Skin Only 51% * Organic growth rates exclude currency impacts and M&A 24% ** Represents Net Sales CAGR from 2008 – 2014 for Asia + Latin America, excluding Japan, Australia, Argentina, Venezuela.
Edgewell Personal Care: “A Challenger Company” VIDEO
Edgewell Personal Care: “A Challenger Company” CHALLENGE The Market Leader, for the Benefit of Consumers and Customers
Edgewell Personal Care: “A Challenger Company” CHALLENGE CHALLENGE CHALLENGE The Market Leader, The Status Quo, for the Benefit of Category Conventions, to Innovate in Ways Consumers Blaze Our Own Trail Large and Small and Customers
Our Challenger Role, and Our Challenger Culture, Informs Our Vision and Mission We will be the trailblazing personal care company, VISION leveraging our colleagues’ creativity and passion to challenge convention and drive growth We will win through focus, insightful innovation and MISSION agility, delivering better solutions to our consumers and customers CHALLENGE TO WIN
Leverage Our Creativity and Passion to Drive Edgewell to a Higher Level of Performance We will be the trailblazing personal care company, VISION leveraging our colleagues’ creativity and passion to challenge convention and drive growth We will win through focus, insightful innovation and MISSION agility, delivering better solutions to our consumers and customers CHALLENGE TO WIN
Leverage Our Renewed Focus to Drive All Facets of the Business We will be the trailblazing personal care company, VISION leveraging our colleagues’ creativity and passion to challenge convention and drive growth We will win through focus , insightful innovation and MISSION agility, delivering better solutions to our consumers and customers CHALLENGE TO WIN
Focused Commercial Footprint Transition and Leverage New Go to Market Structure Edgewell Go To Market Structure Edgewell’s Direct to Customer Markets • 20 markets • 90% of today’s revenue • Strong brands in core markets Emerging / Distributor Market • 30+ Markets • Shifting away from legacy, battery go-to-market approaches • Engage partners/ distributors in leveraging enhanced capabilities and accelerating growth
Driving Increased Effectiveness/Efficiency in Distributor Markets KEY CHANGES AFTER SEPARATION 1 Food / Grocery Mass. Merch. Drug / Pharmacy Kiosks Other Traditional Trade Increase Focus on the Right Channels 2 Category Mgmt. Promotion Expertise Shopper Activation Account Mgmt. Product Visibility Engage Distribution Partners to Enhance Core GTM Capabilities 3 Decreased Cost Increased Net Invest/ Accelerate Achieve a Better Of Coverage Profitability Growth Cost to Serve Our new model provides flexibility to adapt our business as our presence grows
1 Accelerate Top Line Growth 2 Systematic Cost Reduction Edgewell’s 3 Strategic Value Substantial Free Cash Flow Generation Drivers 4 Disciplined Approach to Acquisitions 5 Leverage the Power of EPC’s Colleagues
Business Priority: Return to Growth in 1 Accelerate Top Line Growth North America CURRENT SITUATION STRATEGIC PRIORITIES • Re-investment in A&P and • Overall category slowdown marketing spend since 2012 • Maintain strong innovation • Intense competitive roadmap environment since 2012 • Leverage full portfolio • Customer planogram disruption • Re-build share of shelf • Meet competitive promotional intensity
Business Priority: 1 Accelerate Top Line Growth Continue International Expansion CURRENT SITUATION STRATEGIC PRIORITIES • Execute organizational changes, • Solid history of growth build distributor management – International 2008-2014 CAGR capabilities 4.4%* • Grow Wet Shave mid-single digits • Currently executing GTM changes in – Continue Hydro Development 24 countries – Invest against Disposables • Managing change across all markets – Double-digit growth in value • Continuity in key countries and brands senior positions • Grow Sun Care double-digits – Continue distribution / visibility expansion – Roll out innovation * Organic growth rates exclude currency impacts and M&A
Business Priority: 1 Accelerate Top Line Growth Segment Share Improvement STRATEGIC PRIORITIES • Grow share in Wet Shave • Accelerate growth in Sun Care • Maintain Feminine Care sales and grow profitability • Stabilize Infant Care
1 Accelerate Top Line Growth 2 Systematic Cost Reduction Edgewell’s 3 Shareholder Substantial Free Cash Flow Generation Value Drivers 4 Disciplined Approach to Acquisitions 5 Leverage the Power of EPC’s Colleagues
Edgewell Investor Day 2015 Portfolio Strategies and Categories Al Robertson Chief Marketing Officer
WET SHAVE
Razors & Blades Category is Attractive High Margins High Barriers to Entry International Growth Opportunities
Wet Shave’s Projected Category Growth is Driven by International Markets Global Wet Shave* Retail Sales U.S. Wet Shave* Retail Sales $25 2014: $19 Billion 2014: $4 Billion $20 $4.5 $4.0 $3.5 $15 US$Billions $3.0 US$Billions $2.5 $10 $2.0 $1.5 $5 $1.0 $0.5 $0 $0.0 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 Measured Channels Non-Measured Channels US Rest of World Source: 2014 Euromonitor Source: Measured: Nielsen Scantrack, Non-Measured: Nielsen Panel. 2015-2018 Edgewell Projected *Wet Shave: Razors & Blades + Shave Prep *Wet Shave: Razors & Blades + Shave Prep
U.S. Men’s System Category Softness in Measured Channels is Primarily Driven by Channel Shifting to Non-Measured Outlets US Men’s Systems Retail Sales 1800 1,637 All-Outlet 3-Year CAGR: -1.1% 1,584 1600 1400 1,429 1200 US$ Billions 1,286 1000 800 600 400 200 0 01/12-01/13 01/13-01/14 01/14-01/15 XAOC Men's Systems Projected Dollar Shave Club Projected Other Online Projected All Other (Dollar, Military, Costco, Spec'ty) Projected All Other (Dollar, Military, Non-measured Club Stores, Misc. Accounts ) Sources: XAOC: Nielsen ScanTrack 52week rolling, Dollar shave club: DSC stated subscriptions/revenue Non XAOC channels extrapolated from Nielsen HH panel
Beyond Channel Shifting, Men’s System Category Softness is Driven by Three Macro Trends Extended Decreased Declining Weekly Blade Usage Frequency Penetration • Improved technology • Loss of -0.8 shave/ • Systems share of week vs. ’03 requirements -12% vs. ’03 • Longevity communication • Acceptance of facial hair • Higher price in the workplace • More frugal consumers Sources: Kantar World Panel, Nielsen Single HH Panel, Millward Brown
Edgewell Achieved +6% Topline CAGR on Wet Shave Over the Past 10 Years Net Sales* (US$Millions) 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012 F2013 F2014 Men's System Women's System Disposables Shave Prep PBG * Net Sales excludes manicure sales, which were previously included in the Wet Shave Segment but are now included in Other
Edgewell Wet Shave will Grow Through 4 Strategies Meaningful Continue Investment in Drive Leverage Full International Growth Innovation Portfolio Expansion Brands
Innovation Drives Growth Meaningful Continue Investment Leverage Full Drive International Portfolio in Growth Innovation Across Portfolio in 2015 Expansion Brands Revitalizing Our best X3 The only 2-in-1 Intuition with performance ever razor and trimmer citrus infused scent
Hydro Innovation Continues Meaningful Continue Investment Leverage Full Drive International Portfolio in Growth Innovation to Drive Growth Expansion Brands Hydro Franchise Retail Sales (US$ Millions) $450 $400 $375 $400 $350 $308 $300 Disposables $250 Women's $200 Men's $150 $100 $50 $- 12 Months ended Dec. 2012 12 Months ended Dec. 2013 12 Months ended Dec. 2014 Source: AC Nielsen Global Track, 27 Markets
Full Portfolio of Brands and Private Label Meaningful Continue Investment Drove Leverage Full International Innovation Portfolio in Growth Expansion Meet Needs Across All Consumer Segments Brands Great Expectations Consumer Segment Pragmatic Performer Consumer Segment Inexpensive & Easy Price Consumer Segment Blade Count / Performance
Strong Sales Growth Achieved Through Meaningful Continue Investment Drove Leverage Full International Innovation Portfolio in Growth Expansion Consumer Segmentation Brands Women’s Systems Global Net Sales (US$ Millions) $350 $300 $250 $200 $150 $100 $50 $- FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY 10 FY 11 FY12 FY 13 FY14 A/O WS Intuition Quattro for Women Hydro Silk
Meaningful Continue Investment Drove Leverage Full Ultimate Challenger in Women’s System International Innovation Portfolio in Growth Expansion Brands Segment Market via First-To-Market Compelling Insight Well-Differentiated Innovation and Communication Portfolio • Quattro For • Intuition: all-in-one • Intuition Women – Insight & TV • Quattro For • Quattro For • Intuition – Insight & Women: Women Trimstyle Digital Performance • Hydro Silk • Hydro Silk – • Hydro Silk: Skin Care Insights & TV
Meaningful Continue Investment Grow Market Share in Disposables Drove Leverage Full International Innovation Portfolio in Growth Expansion Brands Leverage Improve Price Build Xtreme 3 Branded and Competitiveness Brand Equity Private Label Synergies GROW MARKET SHARE
Meaningful Continue Private Label Leverage Investment Drove Leverage Full International Innovation Portfolio in Growth Expansion Brands R&D Expertise & Quality Global Manufacturing Scale Category Management: trade up at every tier Capitalize upon growth in all sales channels through a combination of our branded and private label portfolios
Our Wet Shave Business is Meaningful Continue Investment Drove Leverage Full International Innovation in Growth Portfolio Expansion Geographically Diversified Brands F2014 Net Sales: $1.6 Billion 8% 19% 45% 28% North America Europe Asia LatAm
Future Growth Opportunities Accelerate developing market growth Leverage Private Label to drive total portfolio Launch market disruptive innovation
SUN CARE
Sun Care Category Characteristics Global Growth On Trend: Skin Care Expanded Penetration: Education
Global Sun Care Category Enjoys Continued Growth Driven by Latin America & Asia Global Sun Care Retail Sales 14 12.3 11.8 11.4 12 11.1 10.7 10.3 9.8 9.3 10 US$Billions 8 6 4 2 - 2011 2012 2013 2014 2015 2016 2017 2018 North America EU & MEA APAC LatAm Total Markets Source: 2014 Euromonitor
We have Achieved Topline Growth Driven by both Hawaiian Tropic and Banana Boat 350 Net Sales (US$Millions) 300 250 Hawaiian Tropic Banana Boat 200 150 100 50 - F2008 F2009 F2010 F2011 F2012 F2013 F2014
We have Doubled our International FY08-FY14 CAGR LatAm 13.8% Sun Care Business since Acquisition EMEA 12.7% Asia Pacific 19.7% Total Int’l 15.3% 140 International Sun Care Net Sales 120 US$Millions 100 80 60 40 20 0 FY08 FY09 FY10 FY11 FY12 FY13 FY14
We Have Growth Opportunities in Sun Care F2014 Net Sales 29% 71% North America International
Sun Care Competitive Advantages Category Leader in Depth of Sun Care North America, Expertise Mexico & Australia Balanced Sun Care Portfolio
Sun Care Strategic Priorities Build Drive Visibility Category International Differentiated Innovation In-Store Management Growth Equity
Future Opportunities Extend iconic brand equities Launch market- disruptive innovation Drive international growth
FEMININE CARE
Feminine Care Category Characteristics Meaningful Scale Predictable Sales High Barriers to Entry
Leveraging Our Strengths in Feminine Care Portfolio of well- One of the Top 3 known brands that Manufacturers in address complementary North America consumer needs Unique, competitive product technologies
We Compete in all Market Segments – Pads, Liners & Tampons U.S. Fem Care Category $3 2.8 2.7 2.7 2.7 2.7 2.6 2.6 2.6 $2 $Billions $1 $0 2011 2012 2013 2014 2015 2016 2017 2018 Tampons Pads Liners Source: 2011-2014 Nielsen; 2015-2018 Edgewell Projections
Pads & Liners Acquisition Unlocks Full Category Scale Edgewell Fem Care Sales ($M) 450 400 350 $Millions 300 250 200 150 100 50 0 F2013 F2014 Tampons Pads Liners
2015 Innovation Leverages Newly Acquired Pads & Liners Technology Playtex Sport Tampons + Playtex Sport Pads & Liners Pads & Liners Combination Packs
The Playtex Brand has Strong Equity Base: Aware of Brand 1,001 1,693 2,190 A B C Makes products that protect against leakage 77 74 75 Is a high quality brand 77 C 76 c 73 Makes products that are comfortable to wear 76 BC 71 73 Is a company that understands my needs 72 BC 67 68 Is a brand for someone like me 69 BC 64 65 Is a brand I have a high opinion of 69 c 67 65 Offers something different than other brands 59 BC 55 53 Source: PERT Equity study Feb/Mar 2014 (n=2455)
Future Opportunities Introduce step-change innovation Unlock Carefree growth via investment & expansion Expand Playtex Sport portfolio to pads and liners
INFANT CARE
Leveraging Our Strengths in Infant Care Strong Category and Iconic Brands Consumer Insight Capabilities Leader in Diaper Disposal
Key Strategies to Turnaround Infant New Structure Focus on the Core Re-invigorate Innovation
Edgewell Growth Strategies Meaningful Continue Investment in Drive Leverage Full International Growth Innovation Portfolio Expansion Brands
Edgewell Investor Day 2015 Innovation and Productivity Drivers Dave VerNooy Vice President, Global Operations & RDE
Sustained Innovation Fueled by R&D R&D = 304 Colleagues Personal Care R&D Spend Major Locations: $70.5 $69.1 $69.5 $68.9 Milford/Shelton, CT Allendale, NJ Additional Locations: Solingen, Germany Guangzhou, China 2011 2012 2013 2014 Dover, DE 2014 R&D spend = 2.7% of Net sales Ormond Beach, FL
Innovation Comes In Many Flavors Innovation Range Time to Market New Offering From Existing Technology Short Term Upgraded Technology with Existing Platform Medium Term Leverage New Innovation Platforms Long Term
Innovation: Leveraging Existing Leveraging ‘ existing technologies ’ to Provide New Consumer Offerings Pads Combo Liners 16ct Long 36ct Regular 54ct Regular 20ct 18ct Regular 32ct Combo Pad 48ct Combo Liner Launched in 2015 Playtex Sport Pads, Liners and Combo packs are expected to drive meaningful growth in the Playtex Sport brand in Year 1.
Innovation: Refresh Refresh Our Portfolios With Upgraded Technologies that Support Category Growth The only facial sunscreen Sunscreen that goes beyond, with hydrating ribbons stays on in 7 conditions Unique Claims and Benefits: • 12 hours of moisture! • Won’t clog pores Unique Claims and Benefits: • Sand brushes off easily • Moisturizes to relieve dryness
Innovation: Leveraging “New” Leveraging New Platforms, such as Hydro Disposables New claims and benefit messaging Female Build on unique product capabilities Trimmers
Innovation: Capitalizing on Unique Capabilities We are uniquely positioned to apply branded shaving knowledge and technology to our Private Label Shaving portfolio
Operational Productivity: A Key Element Of Our Model Suppliers Manufacturing $2.6 B Net Sales Engineering Plants Cost Improvement Product Design Source Programs Manufacture $1.3 B Distribute Equipment Design 2014 Comprehensive Productivity Strategies We made: 9 Billion Blades per year 1 Billion Tampons per year - Advanced technology and automation 3 Billion Pads and Liners - Asset optimization - Procurement initiatives 1 Billion oz of Personal Care - Global Footprint initiatives
Technology & Automation Application Headcount in 10 shave cartridge assembly cells reduced by over 500, with automation projects averaging less than 2 year paybacks.
Optimizing Global Sourcing Footprint Manufacturing Realignment 1) Focus on Advanced Processes & Automation Development => High Technology Plants 2) Shift production activity => Lower Cost Plants 3) Close Redundant / Excess Capacity x Montreal Germany Czech Rep Connecticut Ohio China Tennessee Delaware Israel Florida Mexico x Brazil 2 Year Shift and Realignment (US COG) - Connecticut & Germany => -25% - China & Mexico => +14%
Global Footprint Rationalization • Plant Consolidation in Femcare, closing Montreal Plant – Completed by early 2017 – Relocates 24 production lines; decommissions 36 production lines – Estimated $20-25M annualized run rate savings CONSOLIDATING TO MONTREAL DOVER
Asset Optimization Liquid Fill Insource / Outsource Optimization Ormond Beach - Volume & Conversion COGS* Trend 55,000 $0.550 50,000 $0.500 45,000 $0.450 40,000 $0.400 35,000 $0.350 2012 to 2015 30,000 $0.300 Volume up 16% Conversion COGS down 9% 25,000 $0.250 20,000 $0.200 2012 2013 2014 2015 Volume (000's Units) Conv COGS/Unit * Conversion COGS includes direct labor, freight and plant overhead Volume is in units/pcs produced in Ormond Beach internal Sun care only
Driving Productivity: More to Come • Demonstrated History of Delivering Productivity Savings • Process, Resources, and Focus In Place to Capture Future Opportunity Target = Gross Productivity Savings of 3% Annually
Edgewell Investor Day 2015 Financial Model Sandy Sheldon Chief Financial Officer
Edgewell: A Compelling Value Proposition A Strong Foundation On-going Value Drivers • Strong brands in growing categories • Unique “Challenger” position • A culture dedicated to innovation, productivity, and value creation • Diverse geographic footprint • History of strong profit growth and cash flow generation • History of successful M&A
Edgewell – Long Term Algorithm Beyond 2016 Long-Term Goal Sales* 2-3% 50 Basis Point Improvement/Year Operating Margin High Single Digit Growth Diluted EPS - Adjusted Free Cash Flow Conversion 100%+ Rate** * Excludes M&A and currency **Free cash flow is defined as net cash provided by operating activities net of capital expenditures, i.e. additions to property, plant and equipment. Free cash flow conversion rate is defined as Free cash Flow / Net Operating Profit After Tax
Long Term Algorithm: Sales Organic * Sales Growth Trends 5% 4.5% 4% 3.1% Long Term 3.1% CAGR ‘08 – ‘ 12 Objective 2-3% 3.0% 3.0% 3% 1.8% **1.9% CAGR ‘08 – ‘14 2% 1% 0% 0.2% -1% -1.5% -2% FY08 FY09 FY10 FY11 FY12 FY13 FY14 Long term Objective * Organic growth rates exclude currency impacts and M&A ** 1.9% excluding ASR planned decline of 10.3% in FY12
Achieving Our Long Term Objective: Sales Geographic Trends Return to Top Line Growth in North America • Re-investment in A&P and marketing spend • Strong innovation roadmap Flat +4.4% • Leverage full portfolio CAGR ‘08 – ‘14 CAGR ‘08 – ‘14 International • North Stabilize Infant 39% +5% +2% America CAGR ‘08 – ‘ 12 CAGR ‘08 – ‘12 Accelerate Profitable Growth in International 61% • Continue growth of topline through increased investment and innovation • Accelerate trade up across Wet Shave * Organic growth rates exclude currency impacts and M&A Portfolio • Grow Sun Care through distribution expansion and innovation
Achieving Our Long Term Sales Growth Objective By Segment • Grow Share in Wet Shave – Innovation and continued growth 7% in Hydro – 16% Private Brand Growth – Invest in Disposables – Pricing and trade up – 61% Legacy brand offset/impact 16% • Accelerate Growth in Sun • Leverage Innovation and full portfolio of offerings in Feminine Care Wet Shave Feminine Care • Stabilize Infant Care Sun and Skin Care Infant/Other
Achieving Our Long Term Sales Growth Objective Through Investment A&P* Historical Trends • Brands Matter in Our Categories • Focus Spend Against Brands 14.2% 13.7% offering the greatest ROI 12.8% • Move with Speed and Agility – Optimize and right size based on market conditions – Closely monitor effectiveness of advertising and promotion program results FY12 FY13 FY14 FY15 Est. LT Trend * Personal Care Segment Data
A Track Record of Strong Profit Growth Operating Margin Expansion and Margin Expansion Operating Margin* • Track Record of Profit Margin Hydro launch investment 20.3% Improvement 19.4% 19.0% • Key Areas of Focus: 17.9% 16.7% – Price and mix due to innovation and trade up – Operational productivity – SG&A leverage, cost discipline including 2013 restructuring • Reinvest in A&P and Other Promotional Activities FY10 FY11 FY12 FY13 FY14 * Personal Care Segment Data -- does not include EHI corporate costs
Systematic Cost Reduction: Operating Margin Expansion A Part Of Our Culture SG&A* as a % of net sales • Track Record of Managing SG&A Costs • 2013 Restructuring Helped Drive 15.5% Recent Reduction to 12.5% 14.8% 14.7% 14.1% • Drivers: 12.5% – Year over year savings goals – Leverage from acquisitions and organic sales growth • Forward Goal for SG&A as a % of sales = 15% Including Corporate 2010 2011 2012 2013 2014 * Personal Care Segment Data -- does not include EHI corporate costs
Operating Margin Managing SG&A Through Transition Expansion Overcoming Dis-synergies • Base Corporate Expenses – Share of EHI Corporate Expenses – Includes costs not previously allocated to $70 - $75 Base Corp Exp PC segment but incurred by EHI • Dis-synergy Examples – International and Regional Headquarter Share structures Dis-synergies $30 - $40 of EHI – Corporate Staff – HR/Benefit Costs, IT Costs • Savings Timing Savings $30- $35 – SG&A as a % of sales could trend above 16% post spin – Targeting run rate of 15% as we exit 2016 Source: Company Estimates
Continuing to Fuel Our Growth Through Operating Margin Expansion Disciplined Cost Management COGS/Supply Chain Commercial SG&A • Advanced Technology and • Trade Spend Productivity • Outsource Non-core Automation Deployment Transactional Activities Areas of Focus • Brand Investment • Global Footprint Initiatives • Centralized Back-office Effectiveness Functions • Asset Optimization • Go to Market Footprint • Procurement Initiatives Steady State Objective: 15% Target Average 3% Gross, 0.5% - 1% Reinvest For Growth of Sales with On-going Net Savings Annually Productivity and Efficiency Long-Term Objectives Contributes to +50 Basis Point Operating Margin Expansion Per Year
Operating Margin Restructuring Savings: More to Come Expansion Going Forward: 2013 2013 Continued focus Restructuring Restructuring on systematic cost thru 3 rd Quarter Q4 2015 – FY2017 reduction EPC only EPC only • EHI: $300M cost, • Projected $40 - $50M in • Optimize Global $315 savings Additional Costs and Manufacturing • EPC: $85M cost, $30 - $40M Incremental Footprint $9oM savings Savings • Procurement Initiatives • Initiatives: Headcount • Initiatives: Plant • Advanced Technology Reductions, Closure Purchasing Savings and Automation • Optimize Footprint • Systematic Cost Reductions
Improving Working Capital: Balance Sheet and Cash More to Come Actions 22.9% 17.5% - • WC % / Sales Increase in 2015 due to 18% Inventory Build for Plant Consolidation – Increase of $30 - $40m 16.6% • Going Forward: – DII • Ongoing footprint changes • Inventory optimization and reduction initiatives will partially mitigate – DSO/DPO: modest improvements FY11 Baseline FY14 FY15 EST LT Trend over time Source: Company Estimates
Strong Balance Sheet Balance Sheet and Cash Projected Capitalization ($B) Pro Forma • Ample liquidity Cash $0.7 • No debt maturities until 2020 Debt* $1.5 • Expect to maintain balance sheet flexibility to pursue strategic plan Net Debt $0.8 • Debt/EBITDA ~ 3 5 Year Revolving Credit $0.6 Facility** * Weighted average interest rate of 4.0% ** Currently undrawn
Priorities for Free Cash Flow Balance Sheet and Cash Invest In The Business To Drive Top-line Growth Disciplined M&A To Grow And Expand Portfolio Return of Capital to Shareholders Through Buyback
Generating Profitable Growth Balance Sheet and Cash Through Capital Expenditures Capital Spending Trends ($M) • 2015: ~$70 – Operational productivity $58 $54 initiatives $43 • Looking Forward: – Continue balance across new product and productivity projects – 2% - 3% of sales 2012 2013 2014 2015 2013 Restructuring New Products- Operational IT/Other
Disciplined M&A To Grow And Expand Portfolio Expand Attractive Strong Value Personal Care Category Competitive Accretive Portfolio Dynamics Position • Stay Close to • Fast Moving / • #1 or #2 in • EPS Accretive the Core Consumable Industry Within 1-2 Years • Strengthen • Category Growth • Potential Geographic Reach Leadership Economics • Leverage International Footprint
Return of Capital to Shareholders Successful History Future Opportunity Edgewell Will Build on this Energizer Holdings: Successful Legacy of Opportunistic Share History of Opportunistic Share Repurchase Repurchase – Energizer Holdings Board of – 57m shares repurchased at Directors authorized share weighted average cost of repurchase of 10 million $49 per share shares on May 21, 2015 – $2.8 Billion in cash returned – Authorization will carry over to shareholders through to Edgewell Personal Care buy back
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