Morgan Stanley 2017 Global Consumer and Retail Conference David Hatfield President, Chief Executive Officer and Chairman of the Board November 14, 2017 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, 2016 and its quarterly reports on Form 10-Q for the quarters ended December 31, 2016, March 31, 2017, and June 30, 2017. 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 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. Page 3
Edgewell Personal Care Portfolio Strong Brands Feminine Wet Shave Care Sun & Skin Infant Care Care Diversified Portfolio 2017 Global Sales Mix: Wet Shave 2017 Sales Mix: Segment 6% 11% Geo Mix* 25% 19% N.A. 48% 19% Inter. 52% 60% 15% 20% 25% Men's Systems Women's Systems Wet Shave Feminine Care Disposables Private Label Sun & Skin Care Infant & Other Shave Prep Page 4
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 Fuel Growth - Colleague Engagement - Enhanced Organizational Capabilities - Systematic Cost Reduction - ZBS, Productivity Re-configure into Growth Opportunities Focus on the fundamentals - Grow share in E-Retail, Growth Channels - Build Brand Equity/ Consumer Engagement - Expand International footprint / scale - Compelling Innovation - Build E-Comm & Digital Capabilities - Leverage the Full Portfolio - Enter new growth Categories via M&A - Category Solutions Page 5
2017 Results Reflected a Challenging Category and Competitive Environment 2017 Results Progress on Strategic Pillars • Launched Innovation Across Portfolio • Launched eCommerce Initiatives: Direct to 50 Basis Points of Organic Net Sales Consumer, T-Mall Flagship Store, New Adjusted Operating -2.8% (1) Amazon Home Page Margin • Grew eCommerce Net Sales 45%, and Grew Share • Grew China Net Sales 15%, and Grew Share Grow Market Share • Grew International Sun and Skin Care 11% Adjusted EPS in Razors and Organic Net Sales 14% Growth Blades and Sun Care • 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. Page 6
FY18: Focus on the Fundamentals In 2018 We will Deliver Compelling Innovation Across all Segments and the Full Portfolio of Wet Shave Focus on the fundamentals - Build Brand Equity/ Consumer Engagement - Compelling Innovation - Leverage the Full Portfolio - Category Solutions Page 7
More Consumer-Centric and Impactful Innovation in FY18 Consumer Insights Informed by Emerging Trends New to the World Technology Strengthens Brand Equity Page 8
FY2018: Innovation across EVERY Segment Intuition Fab Women’s System Hydro Sense Razor Men’s System Disposables Private Label Banana Boat Simply Protect Sun Care Fem/ Infant Care Page 9
Introducing a Revolutionary New Razor that safely shaves f orward a nd b ack Page 10
Introducing Hydro Sense Shock absorber technology Introducing Hydro Sense The First and Only Razors that Auto-Adjusts Based on How He Shaves Page 11
Introducing Banana Boat Simply Protect strong, worry-free protection with 25% fewer ingredients no oxybenzone, no parabens, no added oils or fragrances Page 12
FY18: Re-configure into Growth Opportunities Build on 2017 Success with Continued Focus and Investment in Growth Initiatives 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 Page 13
FY18: Re-configure into Growth Opportunities 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 Page 14
FY18: “Fuel” Growth and Margin Expansion FY18 ZBS Net FY18/19 Savings Projection: Restructuring $25 to $30 million Savings: $20 million Fuel Growth - Colleague Engagement - Enhanced Organizational Capabilities - Systematic Cost Reduction - ZBS, Productivity Vision Re-investment: A&P, Trade, Growth Initiatives We will be the trailblazing personal care company leveraging our colleagues’ creativity and passion to challenge convention a nd drive growth Mission We will win through focus, insightful innovation and agility; delivering better solutions to our consumers and customers Page 15
FY18 – Staying the Strategic Course in a Challenging Market 2018 Outlook* Net Sales ** Flat with prior year Adjusted Operating Margin 20 to 25 basis point improvement GAAP: $4.00 to $4.20 Earnings Per Share Non GAAP: $3.80 to $4.00 Earnings-to-Free-Cash- 100%+ Flow Conversion Rate *** * 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. Page 16
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 Fuel Growth - Colleague Engagement - Enhanced Organizational Capabilities - Systematic Cost Reduction - ZBS, Productivity Re-configure into Growth Opportunities Focus on the fundamentals - Grow share in E-Retail, Growth Channels - Build Brand Equity/ Consumer Engagement - Expand International footprint / scale - Compelling Innovation - Build E-Comm & Digital Capabilities - Leverage the Full Portfolio - Enter new growth Categories via M&A - Category Solutions Page 17
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