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8/20/2019 ENR EHP Edgewell Investor Day 2015 Full Mtg FINAL
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9:00 a.m. – 11:30 a.m.Edgewell Management
Ward Klein, Executive Chairman of the Board
David Hatfield, CEOAl Robertson, CMODave VerNooy, VP Operations and RD&ESandy Sheldon, CFOQ&A
11:45 a.m. – 12:45 p.m.
Edgewell Sponsored Lunch
1:00 p.m. – 3:30 p.m.Energizer Managemen
Pat Mulcahy, Chairman of
Alan Hoskins, CEOMark LaVigne, COOBrian Hamm, CFOQ&A
3:30 p.m. – 4:30 p.m.Energizer Sponsored R
INVESTOR KICKOFF EVENT
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Edgewell Personal Care
Investor Kickoff 2015June 2, 2015
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• Ward Klein, Executive Chairman Historical Perspective
• David Hatfield, CEO Strategic Overview and Busin
• Al Robertson, CMO Portfolio Strategies and Cate
•Dave VerNooy, VP Operations and RD&E Innovation and Productivity
• Sandy Sheldon, CFO Financial Model
• Q & A
Edgewell Investor Kickoff 2015 AGENDA
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Presentation of Information; Forward-Looking Statem
Unless the context otherwise requires, references in this presentation to “Edgewell,” “Personal Care,” “we,” “our,” and “the Personal Care business of Energizer Holdings, Inc. , a Missouri corporation, and its consolidated subsidiaries, which w
Personal Care Company upon completion of the separation of the Household Products business of Energizer from the PUnless the context otherwise requires, references in this presentation to “Energizer” refer to Energizer Holdings, Inc. ansubsidiaries including both the Personal Care business and the Household Products business prior to completion of the scontext otherwise requires, references in this presentation to the Company’s historical assets, liabilities, products, busingenerally refer to the historical assets, liabilities, products, businesses or activities of the Personal Care business as it wacompletion of the separation.
The following presentation contains forward looking statements. Forward-looking statements are not based on historicreflect our expectations concerning future results or events, including our expectations for the separation, new product initiatives, including restructurings, and our outlook for future financial, operational or other potential or expected resultnot guarantees of performance and are inherently subject to known and unknown risks and assumptions that are difficucause our actual results, performance or achievements to differ materially from those expressed in or indicated by those
In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuforward-looking statements. All forward-looking statements should be evaluated with the understanding of their inhereAdditional risks and uncertainties include those detailed from time to time in our publicly filed documents, including our10-K for the year ended September 30, 2014 and the Form 10-Q for the quarter ended March 31, 2015, as well as the RegForm 10 filed by Energizer SpinCo, Inc., the entity that will hold the Household Products business upon completion of thforward-looking statements included in this presentation are only made as of the date of this document and we disclaimpublicly update any forward-looking statement to reflect subsequent events or circumstances.
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Market and Industry DataUnless indicated otherwise, the information concerning our industry contained in this presentation is based on our geneexpectations concerning the industry. Our market position, market share and industry market size are based on estimat
and estimates, based on data from various industry analyses, our internal research and adjustments and assumptions threasonable. We have not independently verified data from industry analyses and cannot guarantee their accuracy or comwe believe that data regarding the industry, market size and our market position and market share within such industryguidance but are inherently imprecise. Further, our estimates and assumptions involve risks and uncertainties and are suon various factors. These and other factors could cause results to differ materially from those expressed in the estimate
Non-GAAP Financial MeasuresWhile the Company reports financial results in accordance with accounting principles generally accepted in the U.S. (“GAincludes non-GAAP measures. These non-GAAP measures, include (1) EBITDA, adjusted EBITDA and ratios derived therGAAP comparatives such as operating results, organic sales, gross margin and other comparison changes that exclude s
of changes in foreign currency rates on a period over period basis versus the U.S. dollar, separation related costs and corestructuring activities. We believe these non-GAAP measures provide a meaningful comparison to the corresponding hand assist investors in performing their analysis and provide investors with visibility into the underlying financial performbusiness.
The Company believes that these non-GAAP measures are presented in such a way as to allow investors to more clearlyand amount of the adjustments to arrive at the non-GAAP measure. Investors should consider non-GAAP measures in asubstitute for, or superior to, the comparable GAAP measures. Further, these non-GAAP measures may differ from simpresented by other companies. For full reconciliation of non-GAAP financial measures, visit www.energizerholdings.comInvestor Relations, Presentations.
Presentation of Information; Forward-Looking Statem
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Edgewell Investor Day 20
Ward KleinExecutive Chairman of the Board
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• Announced t
“New EnergCreation of TCompanies
• ENR Net SaSegment Pr
• Energizer Personal Care
Created With the Acquisitionof Schick Wilkinson Sword
• Net Sales FY $2.2 BSegment Profit FY $410M
Energizer Holdings: A Legacy of Value Creat
2000 2003 2
• Energizer Holdings Spun offfrom Ralston Purina inMarch 2000
• Net Sales FY $1.9B,Segment Profit FY$436M
Clear Financial Strategy
• Optimize Battery Business Performance• Generate Strong Cash Flow
• Make Opportunistic Acqu• Return Cash To Sharehold
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0
0.5
11.5
2
2.5
3
3.5
4
4.5
5
2000 2003 2014
Net Sales
Energizer Edgewell
Energizer Financial Results Reflect the Growth oPersonal Care Segment
B i l l i o n s
$1.9 billion
$4.4 billion
$2.2 billion
57m shares repurchased at wt. avg. cost $49 per share
Net Sales
Segment Profit
Adjusted EPS**
TSR
Total ENR
** Non-GAAP reconciliation in appendix
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A Personal Care Business Built on Strong BrandStrong Categories
0
1000
2000
3000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Net Sales ($m)
Growth and Scale
Building a Foundation
Optim
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Generating Substantial Profit and FreeCash Flow
0
100
200
300
400
500
600
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Segment Profit ($m)
>100% FCF E
* Free Cash Flow Effi*Free cash flow is defined as net cash provided by operating activities net of capitalexpenditures, i.e. additions to property, plant and equipment. Free cash flow conversion rate is
defined as Free cash Flow / Net Operating Profit After Tax
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Delivering Superior Performance ForShareholders
0%
100%
200%
300%
400%
500%600%
700%
S&P 500 HPPC PEERS
Total TSR (April 2000 - April 2015)
Source: Bloomberg as of 01-May-2015
Note: HPPC Peers includes Clorox, P&G, Kimberly-Clark, Scotts Miracle-Gro, Colgate-Palmolive, Tupperware, Church & DwigNewell Rubbermaid, Spectrum Brands, Estee Lauder, Prestige Brands, and Jarden.
2 x H
6.7 x S
Over $3 billion in Cash Returned to Shareholders
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Setting the Stage for a
Strong Standalone Personal C
Company
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Edgewell Investor Day 20Business Strategy and Priorities
David HatfieldChief Executive Officer
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Goals For The Day
4. Unders
Our FinAlgoritValue
3. Gain greaterInsight intoOur Categoriesand Products
1. Meet Our
Team2. Understand
Our Strategy
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Ward M. Klein Executive Chairman
of the Board
David P. HatfieldChief Executive
Officer
SaCh
Peter J. ConradChief Administrati
Officer
Al RobertsonChief Marketing
Officer
David VerNooyVP, GlobalOperations
& RDE
Manish ShanbhagChief Legal Officer
Colin HutchisonVP, Commercial
International
John HillVP, CommercialNorth America
Meet Our Team
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Edgewell Personal Care: Who We Are
16%
16%
7%
Wet Shave
Sun and Skin Care
• Respond to innovation• Brands, category management matter
• Attractive margins
• Growing
• Sales 11.6% (CAGR)
• Gross Margin 9.5% (CAGR)
• Segment Profit 21.8% (CAGR)
Attractive Categories
A Decade of Strong Performance
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CATEGORY BRANDS KEY GEOGRAPHIES
Wet ShaveUS, Canada, Japan,
Germany
Sun & Skin Care US, Mexico, Australia
Feminine Care1 US and Canada
Infant Care US and Canada
We Have Strong Brands and Competitive Po
1 #2 market share position of total tampons and #2 or #3 in liners and pads : US and Canada Ni
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Edgewell Personal Care: Where We A
61%19%
13%
7%
US & Canada EMEA Asia Latin America
51%
24%
17%
8%
2014 SalesTotal Personal Care
2014 SalesWet Shave andSun/Skin Only
• +4.4%* Total Int. Growth (C
2014)
• 2X Sales in Int. Sun Care Sinc
• +9%** Total Developing Ma
• +7% Developing Marke
(2008-2014)
• +17% Developing Mark
Share (2008-2014)
International Perfo
* Organic growth rates exclude currency impacts and
** Represents Net Sales CAGR from 2008 – 2014 for Asia
excluding Japan, Australia, Argentina, Venezuela.
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Edgewell Personal Care:“A Challenger Company”
VIDEO
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Edgewell Personal Care: “A Challenger Co
CHALLENGE
The Market Leader,for the Benefit of Consumers
and Customers
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The Market Leader,for the Benefit of
Consumersand Customers
Category Conventions,Blaze Our Own Trail
The Sta
to InnovaLarge a
Edgewell Personal Care: “A Challenger Co
CHALCHALLENGECHALLENGE
Our Challenger Role and Our Challenger Cultu
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Our Challenger Role, and Our Challenger CultuInforms Our Vision and Mission
VISION
MISSION
CHALLENGE TO WIN
We will win through focus, insightful innovation
agility, delivering better solutions to our consum
and customers
We will be the trailblazing personal care compan
leveraging our colleagues’ creativity and passioto challenge convention and drive growth
Leverage Our Creativity and Passion to Drive E
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Leverage Our Creativity and Passion to Drive Eto a Higher Level of Performance
VISION
MISSION
CHALLENGE TO WIN
We will win through focus, insightful innovation
agility, delivering better solutions to our consum
and customers
We will be the trailblazing personal care compan
leveraging our colleagues’ creativity and passioto challenge convention and drive growth
Leverage Our Renewed Focus to Drive
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Leverage Our Renewed Focus to DriveAll Facets of the Business
VISION
MISSION
CHALLENGE TO WIN
We will win through focus, insightful innovation
agility, delivering better solutions to our consum
and customers
We will be the trailblazing personal care compan
leveraging our colleagues’ creativity and passioto challenge convention and drive growth
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Focused Commercial Footprint
Edgewell Go To Market Str
Transition and Leverage New Go to Market Structure
• 20 markets
• 90% of today’s revenue
• Strong brands in core markets
Edgewell’s Direct to Customer Markets
• 30+ Markets
• Shifting away from legacy, battery go-to-marketapproaches
• Engage partners/ distributors in leveragingenhanced capabilities and accelerating growth
Emerging / Distributor Market
Driving Increased Effectiveness/Efficiency in
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Driving Increased Effectiveness/Efficiency inDistributor Markets
KEY CHANGES AFTER SEPARATION
Increase Focus on theRight Channels
1
Engage DistributionPartners to Enhance
Core GTM Capabilities
2
Achieve a BetterCost to Serve
3
Our new model provides flexibility to adapt our business as our p
Food / Grocery Mass. Merch. Drug / Pharmacy Kiosks
Category Mgmt. Promotion Expertise Shopper Activation Account Mgmt.
InveDecreased CostOf Coverage
Increased NetProfitability
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Edgewell’s Strategic Value
Drivers
Accelerate Top Line Growth
Systematic Cost Reduction
Substantial Free Cash Flow
Disciplined Approach to Acq
Leverage the Power of EPC’s C
1
2
3
4
5
Business Priority: Return to Growth in
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Business Priority: Return to Growth inNorth America
Accele1
• Re-investment in A&P marketing spend
• Maintain strong innovaroadmap
• Leverage full portfolio
• Re-build share of shelf
• Meet competitive promintensity
• Overall category slowdownsince 2012
• Intense competitiveenvironment since 2012
• Customer planogram
disruption
CURRENT SITUATION STRATEGIC PRIORI
Business Priority:
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• Execute organizational cbuild distributor managecapabilities
• Grow Wet Shave mid-sin
– Continue Hydro Deve
– Invest against Dispos
– Double-digit growth brands
• Grow Sun Care double-d
– Continue distributionexpansion
– Roll out innovation
Business Priority:Continue International Expansion
• Solid history of growth
– International 2008-2014 CAGR4.4%*
• Currently executing GTM changes in24 countries
• Managing change across all markets
• Continuity in key countries andsenior positions
Accele1
CURRENT SITUATION STRATEGIC PRIORI
* Organic growth rates exclude currency impacts and M&A
Business Priority:
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Business Priority:Segment Share Improvement
Accele1
• Grow share in Wet Shave
• Accelerate growth in Sun Care
• Maintain Feminine Care salesand grow profitability
• Stabilize Infant Care
STRATEGIC PRIORITIES
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Edgewell’s Shareholder
Value Drivers
Accelerate Top Line Growth
Systematic Cost Reduction
Substantial Free Cash Flow
Disciplined Approach to Acq
Leverage the Power of EPC’s C
1
2
3
4
5
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Edgewell Investor Day 20Portfolio Strategies and Categories
Al Robertson
Chief Marketing Officer
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WET SHAVE
R & Bl d C t i Att ti
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Razors & Blades Category is Attractive
High Margins
High Barriers to Entry
International Growth Opportunities
Wet Shave’s Projected Category Growth is Driv
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$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
2011 2012 2013 2014 2015
Measured Channels Non
$0
$5
$10
$15
$20
$25
2011 2012 2013 2014 2015 2016 2017 2018
US Rest of World
j g yInternational Markets
Global Wet Shave* Retail Sales2014: $19 Billion
U S $ B i l l i o n s
U.S. Wet Shave* Re2014: $4 Bill
U S $ B i l l i o n s
Source: Measured: Nielsen Scantrack, Non-Measured: Nielse
*Wet Shave: Razors & Blade*Wet Shave: Razors & Blades + Shave Prep
Source: 2014 Euromonitor
U.S. Men’s System Category Softness in Measured Cha
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0
200
400
600
800
1000
1200
1400
1600
1800
01/12-01/13 01/13-01/14
US Men’s Systems Retail Sales
XAOC Men's Systems Projected Dollar Shave Club Projected Other Online Projected All Other (Dollar, Military, Co
y g yPrimarily Driven by Channel Shifting to Non-Measured
Sources:XAOC: Nielsen ScanTrack 52week rolling, Dollar shave club: DSC stated subscriptions/revenue
Non XAOC channels extrapolated from Nielsen HH panel
All-Outlet 3-Year CAGR: -1.1%1,637
U S $ B i l l i o n s
1,429
Projected All Other (Dollar, Military, No
Beyond Channel Shifting, Men’s System Category Soft
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y g, y g yDriven by Three Macro Trends
• Systems share of
requirements -12%
Declining WePenetratio
• Loss of -0.8 shave/
week vs. ’03
• Acceptance of facial hairin the workplace
DecreasedFrequency
Sources: Kantar World Panel, Nielsen Single HH Panel, Millward Brown
• Improved technology
• Longevity communication
• Higher price
• More frugal consumers
ExtendedBlade Usage
Edgewell Achieved +6% Topline CAGR on
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0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
F2004 F2005 F2006 F2007 F2008 F2009 F2010 F2011 F2012
Men's System Women's System Disposables Shave Prep PBG
g pWet Shave Over the Past 10 Years
Net Sales* (US$Millions)
* 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 St
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ContiInternat
Expan
Meaningful
Investment inGrowthBrands
Leverage FullPortfolio
DriveInnovation
Edgewell Wet Shave will Grow Through 4 St
Innovation Drives Growth Meaningful
Investment
in Growth In
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Across Portfolio in 2015
The only 2-in-1razor and trimmer
Our best X3performance ever
RevitalizingIntuition wit
citrus infused sc
in GrowthBrands
In
Hydro Innovation Continuesh
Meaningful
Investment
in Growth In
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yto Drive Growth
$-
$50
$100
$150
$200
$250
$300
$350
$400
$450
12 Months ended Dec. 2012 12 Months ended Dec. 2013 12 Months ended Dec. 2014
Hydro Franchise Retail Sales (US$ Millions)
$308
$375
$400
Source: AC Nielsen Global Track, 27 Markets
in GrowthBrands
In
Full Portfolio of Brands and Private Label MeaningfulInvestment
in Growth Inn
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Meet Needs Across All Consumer Segments
Blade Count / Performance
PriceInexpensive & EasyConsumer Segment
ExConsu
Pragmatic PerformerConsumer Segment
in Growth
Brands
Strong Sales Growth Achieved Through
MeaningfulInvestment
in Growth Inn
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$-
$50
$100
$150
$200
$250
$300
$350
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY 10 FY 11 FY12
A/O WS Intuition Quattro for Women Hydro Silk
Consumer Segmentation
Women’s Systems Global Net Sales (US$ Millions)
Brands
Ultimate Challenger in Women’s SystemMeaningfulInvestment
in Growth Inn
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Ultimate Challenger in Women s System
Segment Market viaWell-Differentiated
Portfolio
•Intuition: all-in-one
• Quattro ForWomen:Performance
• Hydro Silk:Skin Care
Compelling Insightand Communication
• Quattro For
Women – Insight &TV
• Intuition – Insight &Digital
• Hydro Silk – Insights & TV
First-To-MarketInnovation
•Intuition
• Quattro ForWomen Trimstyle
• Hydro Silk
Brands
Grow Market Share in DisposablesMeaningfulInvestment
in Growth Inn
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Improve PriceCompetitiveness
Build Xtreme 3Brand Equity
LeverageBranded andPrivate Label
Synergies
GROW MARKET SHARE
Grow Market Share in Disposables Brands
Private Label LeverageMeaningfulInvestment
in Growth
d
Inn
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Private Label Leverage
R&D Expertise & Quality
Global Manufacturing Scale
Category Management: trade up at every tier
Capitalize upon growth in all sales channelsthrough a combination of our branded and privatlabel portfolios
Brands
Meaningful
Investment
in GrowthB d
Inn
Our Wet Shave Business isG hi ll Di ifi d
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BrandsGeographically Diversified
45%
28%
19%
8%
North America Europe Asia LatAm
F2014 Net Sales: $1.6 Billion
Future Growth Opportunities
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Future Growth Opportunities
Launch marketdisruptive innovation
Leverage Private Labelto drive total portfolio
Accelerate developingmarket growth
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SUN CARE
Sun Care Category Characteristics
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Sun Care Category Characteristics
Global Growth
On Trend: Skin Care
Expanded Penetration: Educat
Global Sun Care Category Enjoys Continued Growth Drby Latin America & Asia
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by Latin America & Asia
9.39.8 10.3
10.7 11.111.4
11.8
-
2
4
6
8
10
12
14
2011 2012 2013 2014 2015 2016 2017
North America EU & MEA APAC LatAm Total Markets
U S $ B i l l i o n s
Sou
Global Sun Care Retail Sales
We have Achieved Topline Growth Driven by both HawTropic and Banana Boat
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-
50
100
150
200
250
300
350
F2008 F2009 F2010 F2011 F2012 F2013 F2014
Tropic and Banana Boat
N e t S a l e s ( U S $ M i l l i o n s )
LatAm We have Doubled our InternationalSun Care Business since Acquisition
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0
20
40
60
80
100
120
140
FY08 FY09 FY10 FY11 FY12 FY13
International Sun Care Net Sales
EMEA
Asia Pacific
Total Int’l
U S $ M i l l i o n s
Sun Care Business since Acquisition
We Have Growth Opportunities in Sun Ca
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pp
F2014 Net Sales
71%
29%
North America International
Sun Care Competitive Advantages
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p g
Balanced Sun CarePortfolio
Category Leader inNorth America,
Mexico & Australia
Depth of Expe
Sun Care Strategic Priorities
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g
Drive
Innovation
BuildDifferentiated
Equity
Visibility
In-Store
Category
Management
Future Opportunities
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pp
Drive internationalgrowth
Launch market-disruptiveinnovation
Extend iconic brandequities
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FEMININE CARE
Feminine Care Category Characteristics
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Meaningful Scale
Predictable Sales
High Barriers to Entry
Leveraging Our Strengths in Feminine Car
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Portfolioknown br
addcomplemconsum
Unique,
competitiveproduct
technologies
One of the Top 3
Manufacturers inNorth America
We Compete in all Market Segments – Pads, Liners & Tampons
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, p
2.6 2.6 2.6 2.7 2.7 2.7 2.7
$0
$1
$2
$3
2011 2012 2013 2014 2015 2016 201
Tampons Pads Liners
$ B i l l i o n s
Source: 2011-2014 Nielsen; 2015-2018 Edgewell Projections
U.S. Fem Care Category
Pads & Liners Acquisition UnlocksFull Category Scale
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0
50
100
150
200
250
300
350
400
450
F2013 F2014Tampons Pads Liners
$ M i l l i o n s
Edgewell Fem Care Sales ($M)
g y
2015 Innovation Leverages Newly AcquiredPads & Liners Technology
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gy
Playtex Sport Pads & LinersPlaytex Sport Tam
Pads & Liners Combin
The Playtex Brand has Strong Equity
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Base: Aware of Brand 1,001 1,693
A B
Makes products that protect against leakage 77 74
Is a high quality brand 77 C 76 c
Makes products that are comfortable to wear 76 BC 71
Is a company that understands my needs 72 BC 67
Is a brand for someone like me 69 BC 64
Is a brand I have a high opinion of 69 c 67
Offers something different than other brands 59 BC 55
Source: PERT Equity study Feb/Mar 2014 (n=2455)
Future Opportunities
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Expand Playtex Sportportfolio to pads andliners
Unlock Carefreegrowth via investment& expansion
Introduce step-changeinnovation
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INFANT CARE
Leveraging Our Strengths in Infant Care
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Strong Cat
ConsumeCapab
Leader inDiaper Disposal
Iconic Brands
Key Strategies to Turnaround Infant
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New Structure
Focus on the Core
Re-invigorate Innovation
Edgewell Growth Strategies
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Conti
InternatExpan
Meaningful
Investment inGrowthBrands
Leverage FullPortfolioDriveInnovation
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Edgewell Investor Day 20
Innovation and Productivity Drivers
Dave VerNooyVice President, Global Operations & RDE
Sustained Innovation Fueled by R&D
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R&D = 304 Colleagu
Major Locations:
Milford/S
Allendale
Additional LocationSolingen,
GuangzhDover, DEOrmond B
$68.9 $70.5 $69.1 $69.5
2011 2012 2013 2014
Personal Care R&D Spend
2014 R&D spend = 2.7% of Net sales
Innovation Comes In Many Flavors
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Innovation Range Time to M
New Offering From Existing Technology Short
Upgraded Technology with Existing Platform Medium
Leverage New Innovation PlatformsLong
Innovation: Leveraging Existing
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Leveraging ‘existing technologies’ to Provi
New Consumer Offerings
Pads
16ct Long 18ct Regular 36ct Regular
Launched in 2015
Playtex Sport Pads, Liners and Combo packs are expecte
drive meaningful growth in the Playtex Sport brand in Ye
32ct Combo Pad 48ct Combo Liner
Combo
54ct Regu
Innovation: Refresh
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Refresh Our Portfolios With Upgraded TechnoloSupport Category Growth
Sunscreen that g
stays on in 7 c
Unique Claims an
• Sand brushe
• Moisturizes t
The only facial sunscreen
with hydrating ribbons
Unique Claims and Benefits:
• 12 hours of moisture!• Won’t clog pores
Innovation: Leveraging “New”
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Leveraging New Platforms, such as Hydro
Nbe
Trimmers
Female
Disposables
Bpro
Innovation: Capitalizing on Unique Capab
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We are uniquely positioned to apply branded shknowledge and technology to our Private La
Shaving portfolio
Operational Productivity: A Key Element Of Ou
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$1.3 B
2014
Net Sales
SourceManufactureDistribute
Comprehensive Productivi
- Advanced technology and a- Asset optimization- Procurement initiatives- Global Footprint initiatives
$2.6 B
We made: 9 Billion Blades per year
1 Billion Tampons per year
3 Billion Pads and Liners
1 Billion oz of Personal Care
EngineeringCost
Improvement
Programs
S
E
Technology & Automation Applicatio
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Headcount in 10 shave cartridge assembly cells redby over 500, with automation projects averagin
less than 2 year paybacks.
Optimizing Global Sourcing FootprManufacturing Realignment
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Brazilx
Florida
DelawareConnecticut
Tennessee
Mexico
Ohio
Montrealx
Chi
Israel
Czech RepGermany
1) Focus on Advanced Processes & Automation Development => High Technology
2) Shift production activity => Lower Cost Plants
3) Close Redundant / Excess Capacity
2 Year Shift and Realignment (US COG)- Connecticut & Germany => -25%- China & Mexico => +14%
Global Footprint Rationalization
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• 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
MONTREAL DOVER
CONSOLIDATING TO
Asset Optimization
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Liquid Fill Insource / Outsource Optimization
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
2012 2013 2014 2015
Ormond Beach - Volume & Conversion COGS* Trend
Volume (000's Units) Conv COGS/Unit
2012 to 2015Volume up 16%
Conversion COGS down 9%
* 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
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• Demonstrated History of Delivering ProduSavings
• Process, Resources, and Focus In Place toCapture Future Opportunity
Target = Gross Productivity Savings of 3% Ann
Ed ll I t D
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Edgewell Investor Day 2015
Financial Model
Sandy SheldonChief Financial Officer
Edgewell: A Compelling Value Propo
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• Strong brands in growing
categories• Unique “Challenger” position
• A culture dedicated toinnovation, productivity, andvalue creation
•
Diverse geographic footprint• History of strong profit growth
and cash flow generation
• History of successful M&A
A Strong Foundation On-going Value Driv
Edgewell – Long Term Algorithm Beyond
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Sales*
Long-Term Goal
2-3%
50 Basis Point Improvement/Year
High Single Digit Growth
100%+
Operating Margin
Diluted EPS - Adjusted
Free Cash Flow ConversionRate**
* Excludes M&A and currency
**Free cash flow is defined as net cash provided by operating activities net of capital expenditures, i.e. addi
and equipment. Free cash flow conversion rate is defined as Free cash Flow / Net Operating Profit After Tax
Long Term Algorithm:Organic* Sales Growth Trends
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3.0% 3.0% 3.1%
4.5%
0.2%
-1.5%
**1.9%
-2%
-1%
0%
1%
2%
3%
4%
5%
FY08 FY09 FY10 FY11 FY12 FY13 FY14
1.8%CAGR ‘08 – ‘14
* Organic growth rates exclude currency impacts and M&A
** 1.9% excluding ASR planned decline of 10.3% in FY12
3.1%
CAGR ‘08 – ‘12
Achieving Our Long Term Objective:Geographic Trends
R t t T Li G th
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Return to Top Line Growth
• Re-investment in A&Pmarketing spend
• Strong innovation roa
• Leverage full portfolio
• Stabilize Infant
Accelerate Profitable Grow
• Continue growth of to
increased investment• Accelerate trade up ac
Portfolio
• Grow Sun Care througexpansion and innova
NorthAmerica
61%
International
39%
FlatCAGR ‘08 – ‘14
+4.4%CAGR ‘08 – ‘14
+5%CAGR ‘08 – ‘12
+2%CAGR ‘08 – ‘12
* Organic growth rates exclude currency impacts and M&A
• Grow Share in Wet Sh
Achieving Our Long TermGrowth Objective By Segment
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61%16%
16%
7%
Wet Shave Feminine Care
Sun and Skin Care Infant/Other
• Grow Share in Wet Sh
– Innovation and conin Hydro
– Private Brand Grow
– Invest in Disposable
– Pricing and trade u
– Legacy brand offse
• Accelerate Growth in
• Leverage Innovation aportfolio of offerings Care
• Stabilize Infant Care
Achieving Our Long TermGrowth Objective Through Investment
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13.7%12.8%
14.2%
FY12 FY13 FY14 FY15 Est. LT Trend
A&P* Historical Trends
• Brands Matter in Our
• Focus Spend Against offering the greatest
• Move with Speed and
– Optimize and right market conditions
– Closely monitor eff
advertising and proprogram results
* Personal Care Segment Data
A Track Record of Strong Profit Growthand Margin ExpansionOp
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17.9%16.7%
19.0% 19.4% 20.3%
FY10 FY11 FY12 FY13 FY14
Hydro launch
investment
Operating Margin*
• Track Record of Profit
Improvement• Key Areas of Focus:
– Price and mix due ttrade up
– Operational produc
– SG&A leverage, cos
including 2013 restr
• Reinvest in A&P and OPromotional Activitie
* Personal Care Segment Data -- does not include EHI corporate costs
OpSystematic Cost Reduction:A Part Of Our Culture
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15.5%14.7% 14.8%
14.1%
12.5%
2010 2011 2012 2013 2014
SG&A* as a % of net sales
* Personal Care Segment Data -- does not include EHI corporate costs
• Track Record of Mana
Costs• 2013 Restructuring He
Recent Reduction to 1
• Drivers:
– Year over year savi
– Leverage from acquorganic sales growt
• Forward Goal for SG&sales = 15% Including
Managing SG&A Through Transition
O i Di i
Op
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Overcoming Dis-synergies• Base Corporate Expenses
– Share of EHI Corporat
– Includes costs not prePC segment but incur
• Dis-synergy Examples
– International and Regstructures
– Corporate Staff
– HR/Benefit Costs, IT C
• Savings Timing
– SG&A as a % of sales c16% post spin
– Targeting run rate of 1
$30- $35
$30 - $40
$70 - $75
Savings
Dis-synergies
Base Corp Exp
Share
of EHI
Source: Company Estimates
Continuing to Fuel Our Growth ThroughDisciplined Cost Management
COGS/S l Ch i C i l SG
Op
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COGS/Supply Chain Commercial SG
A r e a s o f F o c
u s
• Advanced Technology and
Automation Deployment
• Global Footprint Initiatives
• Asset Optimization
• Procurement Initiatives
• Trade Spend Productivity
• Brand Investment
Effectiveness
• Outsource Non
Transactional A
• Centralized BaFunctions
• Go to Market F
T
a r g e t
Average 3% Gross, 0.5% - 1%
Net Savings Annually
Reinvest For GrowthSteady State O
of Sales wit
Productivity a
L o n g - T e r m
O b j e c t i v e s
Contributes to +50 Basis Point Operating Margin Expansion Per Year
Restructuring Savings: More to Come Op
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2013Restructuring
thru 3rd
Quarter
2013Restructuring
Q4 2015 – FY2017
Going ForwContinued
on systemat
reductio
• EHI: $300M cost,$315 savings
• EPC: $85M cost,$9oM savings
• Initiatives: Headcount
Reductions,Purchasing Savings
EPC only
• Projected $40 - $50M inAdditional Costs and$30 - $40M IncrementalSavings
• Initiatives: PlantClosure
• Optimize Footprint
EPC only
• Optimize GlobManufacturinFootprint
• Procurement
• Advanced Tecand Automati
• Systematic CoReductions
A ti
Improving Working Capital:More to ComeBalan
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22.9%
16.6%
17.5% -
18%
FY11 Baseline FY14 FY15 EST LT Trend
Actions
• WC % / Sales Increase in
Inventory Build for Plant – Increase of $30 - $40
• Going Forward:
– DII
• Ongoing footp
• Inventory optim
reduction initia
mitigate
– DSO/DPO: modest over time
Source: Company Estimates
Projected Capitalization ($B)
Strong Balance Sheet Balan
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Projected Capitalization ($B)
Pro Forma
Cash $0.7
Debt* $1.5
Net Debt $0.8
5 Year Revolving CreditFacility**
$0.6
* Weighted average interest rate of 4.0%** Currently undrawn
• Ample liquidity
• No debt maturities un
• Expect to maintain baflexibility to pursue st
• Debt/EBITDA ~ 3
Priorities for Free Cash Flow Balan
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Invest In The Business To Drive Top-line Growth
Disciplined M&A To Grow And Expand Portfo
Return of Capital to Shareholders Through Buy
Generating Profitable GrowthThrough Capital Expenditures
Capital Spending Trends ($M)
Balan
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• 2015:
– Operational produinitiatives
• Looking Forward:
– Continue balance aproduct and produ
– 2% - 3% of sales
$58 $54
$43
~$70
2012 2013 2014 2015
Capital Spending Trends ($M)
2013 Restructuring New Products- Operational IT/Other
Disciplined M&A To Grow And Expand Po
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ExpandPersonal Care
Portfolio
AttractiveCategory
Dynamics
StrongCompetitive
Position
• Stay Close tothe Core
• StrengthenGeographic Reach
• Leverage
InternationalFootprint
• Fast Moving /Consumable
• Category Growth
• #1 or #2 inIndustry
• PotentialLeadershipEconomics
• EPW
Return of Capital to Shareholders
Successful History Future Opportunit
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Energizer Holdings: SuccessfulHistory of Opportunistic ShareRepurchase
– 57m shares repurchased atweighted average cost of$49 per share
– $2.8 Billion in cash returnedto shareholders throughbuy back
Edgewell Will Build on thLegacy of Opportunistic Repurchase
– Energizer Holdings BDirectors authorizedrepurchase of 10 millshares on May 21, 20
– Authorization will cato Edgewell Persona
Successful History Future Opportunit
2015 Financial Reporting Considerations
FY 2015 4Q 2015
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Will reflect a blend Personal Care(EPC) and Household (ENR)Financials
– Q1-Q3 will reflect Householdas “Discontinued Operations”
– Q4 will reflect Edgewell on a
standalone basis – Edgewell Segment financials
will be included in the 10K inNovember 2015
Proforma Income Statemand Balance Sheets for
– 2012 – 2014 and YTD
– Removes discontinueoperations and expenrelated to spin
FY 2015 4Q 2015
Edgewell – Full Year 2016 Financial Consid
FY 2016
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Financial results for first full year as a standalone are anticipated
be below the long term growth algorithm targets
FY16 Results will include impacts from:
– Changes in the Go to Market Footprint
– Incremental operating costs and dis-synergies for up to 3 – 4
– Ongoing currency headwinds for the first quarter (based onrecent rates)
– FY16 outlook to be provided as part of our FY2015 Q4 earninrelease and call
FY 2016
Anticipated Adjustments to Net SalesExcludes:
• Year over year O
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$2,612
$2
$30$45
$150
FY14 Venezuela Industrial Adj. FY14 Currency New
Net Sales ($M)
$2,537
Source: Company Estimates
• Year over year O
• Impact from Go
Adjustments to EBITDA Base also anticip
Adj sted EBITDA* ($M)
Excludes:
• Year over year o
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$530$$9
$59
FY14 Corp Expense** Venezuela/Ind Adj. 2014 Currency New
Adjusted - EBITDA* ($M)
$612
$73
Source: company estimates * Non-GAAP reconc
y
• Impact of dis-sy4Q15 and carryin
• Spin-off and res
** Corporate expense is an estimated share of EHI
corporate expense
• While FY16 Will be a Transition Year, We Will Return to Our St
Edgewell – Positioned For Growth
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,Record of Profitable Growth and Cash Generation
Edgewell’s
Strategic
Value Drivers
Accelerate Top Line Growth
Systematic Cost Reduction
Substantial Free Cash Flow
Disciplined Approach to Acq
Leverage the Power of EPC’s Co
1
2
3
4
5
• While FY16 Will be a Transition Year, We Will Return to Our St
Edgewell – Positioned For Growth
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,Record of Profitable Growth and Cash Generation
Edgewell’s Strategic
Value Drivers
Edgewell Personal Care
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Edgewell Personal Care
Q&AInvestor Kickoff 2015June 2, 2015
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APPENDIX
Company ContactsSandy Sheldon
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Chief Financial Officer
SandyJ.Sheldon@energizer.com Chris GoughVP, Investor RelationsChris.Gough@energizer.com
(203) 944-5706
• July 2015 – 8K
– Income statement and balance sheet pro-formas adjusted to remove d
Upcoming Financial Disclosures
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Income statement and balance sheet pro formas adjusted to remove d
operations and expenses related to spin
– Income statements for: six months-ended 3/31/2015, year ended 9/30/2
9/30/2013,year ended 9/30/2012• August 2015 - 3Q 2015 10-Q
– Subsequent event footnote will include an update to the Pro-formas in
footnote will include:
• Highly summarized income statement information for the nine-m
6/30/2015
•
The value of assets and liabilities transferred to “New Energizer”
• November 2015 – Fiscal 2015 10-K
– The consolidated income statement will be adjusted to reflect EHP as
Upcoming Financial Disclosures
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– The consolidated income statement will be adjusted to reflect EHP as
operations for all years (2013, 2014 & 2015)
–
The consolidated balance sheet as of 9/30/2015 will exclude EHP balanc9/30/2014 balances will NOT be re-stated for discontinued operations
– The consolidated statement of cash flows for prior years will not chang
months-ended 6/30/2015 from full year 2015 cash flows to get EPC stan
for the 4th quarter.
– The quarterly footnote showing consolidated income statement trends
for discontinued operations for 2014 & 2015
– The segment footnote and MDA will compare full-year segment profit
and for 2015 vs 2014
Non-GAAP Financial Measures. While the Company reports financial results in
with accounting principles generally accepted in the U S (“GAAP”) this discuss
Non-GAAP Reconciliations
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with accounting principles generally accepted in the U.S. (“GAAP”), this discuss
non-GAAP measures. These non-GAAP measures, such as adjusted net earning
share, the costs associated with restructuring and other initiatives, costs assocplanned spin-off transaction, costs associated with acquisitions and integration
acquisition inventory valuation, adjustments to prior year tax accruals, pension
pro forma adjustments related to the spin-off from Ralston Purina Company an
items as outlined herein, are not in accordance with, nor are they a substitute f
measures. The Company believes these non-GAAP measures provide a meanin
comparison to the corresponding historical period and assist investors in perfo
consistent with financial models developed by research analysts. Investors shonon-GAAP measures in addition to, not as a substitute for, or superior to, the c
GAAP measures.
Adjusted EBITDA Reconciliation ($MFY 2014
Personal Care segment profit $ 531
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(a) For purposes of this presentation, we h
defined Adjusted EBITDA as segment prof
excluding depreciation and amortization.
Segment profit excludes corporate expens
restructuring-related charges, spin-related
charges, share-based payment costs,
acquisition and integration costs and othe
financing items that we believe are not
representative of our core business. Gene
corporate and other expenses includes sha
based payment costs. These items are
identified in the reconciliation of Personal
Care segment profit to net earnings, the m
directly comparable GAAP measure. Our
definition of Adjusted EBITDA may bedifferent from the calculation used by othe
companies; therefore, they may not be
comparable to other companies.
Personal Care segment profit $ 531
Personal Care depreciation and amortization 81
Adjusted EBITDA (a) $ 612
Net earnings $ 356Income taxes 117
Earnings before income taxes $ 473
Corporate expenses and other:
General corporate and other expenses $ 147
2013 restructuring 105
Spin-off costs 45
Feminine care acquisition/integration costs 10
Net pension / post-retirement gains (1)
Acquisition inventory valuation 8
ASR integration / transaction costs 1
Amortization of intangibles 18
Interest and other financing items 123
Total corporate expense and other $ 456
Total segment profit $ 929
Household Products segment profit 398
Personal Care segment profit $ 531
Adjusted Diluted EPS ReconciliationFor the Year EndedSeptember 30, 2014
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*Energizer Holdings, Inc. was spun off from Ralston Purina Company (Ralston) on April 1, 2000. The pro forma FYis presented assuming the spin-off had occurred as of October 1, 1999.
**The historical financial information for fiscal year 2000 reflects periods during which Energizer was operated aof Ralston.
Diluted EPS - GAAP $ 5.69 Diluted EPS - GAAP **
Impacts, net of tax: expense / (income) Net gain from discontinued operations
2013 restructuring and related costs 1.12 Historical Net Earnings from Continuing Operations **
One time spin-off costs 0.45 Capital loss tax benefits
Feminine care acquisition / integration costs 0.10 Other pro forma costs, net of tax
Acquisition inventory valuation 0.08 Incremental interest expense, net of tax
Net pension / post retirement benefit gains (0.01) Pro Forma Diluted EPS *
Other realignment / integration 0.01 Loss on disposition of Spanish affiliate
Adjustment to prior years' tax accruals (0.12) Costs related to spin-off
Diluted EPS - adjusted (Non-GAAP) $ 7.32 Pro Forma Diluted EPS - adjusted (Non-GAAP)*
Edgewell Personal Care