EX-99.2 3 exhibit992pbh-q4fy22.htm EX-99.2
M a y 6 t h , 2 0 2 2 Full-Year FY 22 Results & Business Attributes Review Exhibit 99.2

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Safe Harbor Disclosure This presentation contains certain “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding the Company’s expected financial performance, including revenues, diluted EPS, free cash flow, and organic revenue growth; the Company’s ability to perform well in the currently evolving environment, including in light of the impact of supply chain issues and inflation; the Company’s ability to execute on its brand-building strategy; the expected market share and consumption trends for the Company’s brands; and the Company’s ability to execute on its disciplined capital allocation strategy; and the timing and amount of and source of funds for the Company’s share repurchases. Words such as “trend,” “continue,” “will,” “expect,” “project,” “may,” “should,” “could,” “would,” and similar expressions identify forward-looking statements. Such forward-looking statements represent the Company’s expectations and beliefs and involve a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, among others, the impact of the COVID-19 pandemic and geopolitical instability, including on economic and business conditions, consumer trends, retail management initiatives, and disruptions to the manufacturing, distribution and supply chain and related price increases; labor shortages; competitive pressures; the impact of the Company’s advertising and marketing and new product development initiatives; customer inventory management initiatives; the ability to pass along rising costs to customers without impacting sales; fluctuating foreign exchange rates; and other risks set forth in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10- K for the year ended March 31, 2021. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this presentation. Except to the extent required by applicable law, the Company undertakes no obligation to update any forward-looking statement contained in this presentation, whether as a result of new information, future events, or otherwise. All adjusted GAAP numbers presented are footnoted and reconciled to their closest GAAP measurement in the attached reconciliation schedule or in our May 5, 2022 earnings release in the “About Non-GAAP Financial Measures” section.

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Agenda for Today’s Discussion I. FY 22 and Evolution Recap II. Investing for Growth III. Financial Strategy & Capital Allocation IV. The Road Ahead & FY 23 Outlook 3

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W I. FY 22 and Evolution Recap

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Proven Strategy & Execution Delivered Record FY 22 Results  Strong sales growth in FY 22 up 15.2% vs. PY  Continued strength in consumer behavior  Recovery in most COVID-19 impacted categories  Gross margin as expected in dynamic supply chain environment  Strong double-digit earnings growth in FY 22, up 25.3%(3) vs. FY 21  Solid financial profile and resulting Free Cash Flow(3) generation  Successful acquisition and strong early performance of TheraTears  Continued focus on disciplined capital allocation resulting in leverage of 3.8x(4) FY 22 Sales Drivers Disciplined Capital Allocation Superior Earnings and FCF 5

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Acquired Leading Brands Divested Portfolio Transformation Brand Building Capital Allocation Record FY 22 Enabled by Long-Term Evolution 6 Well-Positioned for Continued Success Continued portfolio evolution reinforces long-term growth Brand-building strategy driving growth across categories Repositioned long-term capital allocation strategy Consistent Performance Successfully navigated dynamic environment with little disruption 5.2x 3.8x FY18 FY22 Leverage(4)

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W History of Superior Performance 7 Proven Ability to Execute Value Creation Strategy Investing for Growth with Proven Brand-Building Playbook1 Superior Business Attributes Enable Free Cash Flow2 Scalable & Efficient Platform Supports Disciplined Capital Allocation3 +3.7% 3-Yr CAGR Revenue +13.4% 3-Yr CAGR Adj. EPS(3) +7.8% 3-Yr CAGR Adj. FCF(3) +3.2% 3-Yr CAGR Organic Growth(1)

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W II. Investing for Growth

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W FY 22 Revenues; Other OTC not shown (less than 1%) #1 Feminine Hygiene #1 Vaginal Anti-Fungal #1 Rehydration #1 Motion Sickness #1 Powdered Analgesic #1 Wart Removal #1 Lice/Parasite Treatments 9 25% 19% 15% 11% 11% 10% 9% Women’s Health Cough / Cold Analgesics Oral Care Skin Care GI Eye & Ear Care #1 Allergy & Redness Relief Drop #3 Dry Eye Relief Treatment Diversified Portfolio of Leading Consumer Healthcare Brands Diverse Portfolio of Market-Leading BrandsTotal Sales by Category #1 Sore Throat Liquids/Lozenge

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Understanding Consumer Insights and Opportunity Flexible & Agile Brand Strategies in an Evolving Environment E-Commerce Success through Investments Proven New Product Development 1 2 3 4 10 Brand-Building Focus Positions Us for Long-Term Growth Resulting Long-Term Success Across Channels & Categories Over Time

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Consistent Growth Enabled by Understanding Consumer Needs  Addressing consumer needs with Nausea, Kids, and Chewables  Consumer brand promise: Take Dramamine. Take Control. Brand-Building That Leverages Consumer Insights to Drive Long-Term Growth  Marketing and innovation driving awareness & consumption growth  Opportunity remains to continue driving category penetration 11 5% 8% FY19 FY22 Household Penetration(2) +1.6x Product Extensions Travel Heat & Outdoor Sports & Exercise Vomiting & Diarrhea Work

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Flexible Strategies Enabled by Nimble Marketing  Effective campaigns: 3 ways to treat warts at home, Touch of Science  95% of visitors to CompoundW.com are new* Agile Marketing Strategy Positions Portfolio for Long-Term Success  Engaging customers through campaigns both in-store and online  Investment in current initiatives leading to strong momentum 12 An “Amazon’s Choice” Active Wash Amber Nights Simply Sensitive *Defined as users who have not visited in 30+ days

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W E-Commerce: Winning in Consumer Shift to Online Numerous Drivers of SuccessE-Commerce as a % of Net Sales ~5% ~11% ~13% FY 20 FY 21 FY 22  Well-positioned due to early investments in E- Commerce behind brand portfolio  Growth across channel, with share often well above brick & mortar  Consistent financial profile across all channels +~3x Investment in Online User Experience Omnichannel Investments 13 Engaging Digital Campaigns

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Expanding Categories through New Product Development 14 FY 23 Pipeline Expands Brand Offerings Across Prestige’s Portfolio Successful History of Innovation Robust Pipeline Ongoing Innovation through Technology & Superior Consumer Experience

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Top PBH Brands Share Rank(2) #1 #1 #1 #1 #1 #3 #1 #1 #3 #1 #3 #1 #1 10 of 13 Brands are #1 in Market Share(2), Many by a Wide Margin Result: Diverse Portfolio with Category Defining Shares 15 Trusted Brands Consumers Seek Trusted OTC Brands Category Defining Brands That Redefine Categories with Meaningful Share Category Defining Share(2)* *Greater than 35% share

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W III. Financial Strategy & Capital Allocation

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Key Financial Results for Fourth Quarter and FY 22 Performance FY 22 FY 21 Dollar values in millions, except per share data. $266.9 $85.4 $0.91 $237.8 $79.2 $0.79 Revenue Adjusted EBITDA Adjusted EPS 12.3% 7.8% 15.2% 17 Q 4 $1,086.8 $367.7 $4.06 $943.4 $328.9 $3.24 Revenue Adjusted EBITDA Adjusted EPS 15.2% 11.8% 25.3% (3) Revenue of $266.9 million, up 5.9% vs. PY Q4 on an organic basis(1) EPS of $0.91 up 15.2% vs. Adjusted(3) PY Q4 EBITDA(3) of $85.4 million up 7.8% vs. Adjusted(3) PY Q4 FY 2 2 (3) (3) (3)

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 3 Months Ended FY 22 Comments Financial Results for FY 22  Revenue up 10.1% vs. PY organically(1) – Broad & diverse portfolio helped to achieve record year in sales – Double-digit eCommerce consumption growth as consumers shopped online  Adjusted Gross Margin(3) of 57.3% consistent with expectations  A&M of 14.5% of Revenue, up ~$17MM vs. PY  Adjusted G&A(3) of 9.5% of Revenue  Adjusted EPS(3) up 25.3% vs. PY Dollar values in millions, except per share data Amounts may not add due to rounding 18 12 Months Ended

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Consistent, Strong Free Cash Flow Continued in FY 22 Leverage Supports ~$900MM of Deployment Capacity* 19 Adj. Free Cash Flow & Leverage Capital Allocation Highlights Dollar values in millions No maturities until 2028 Significant debt reduction to 3.8x Leverage(4) Accretive acquisition of Akorn Consumer Health $202 $207 $213 $254 FY 19 FY 20 FY 21 FY 22 5.0x 4.7x 4.2x 3.8x FY 19 FY 20 FY 21 FY 22 Ad j. FC F( 3) Le ve ra ge (4 ) 7.8% CAGR -1.2x 65% of debt outstanding at fixed rate *Assumes 12x EBITDA valuation & 5.1x max Leverage(4)

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Robust Free Cash Flow Profile Enabled by Strategy 20 Key Attributes Free Cash Flow Metrics Source: Capital IQ as of 5/03/22 Free Cash Flow Yield defined as Free Cash Flow over Market Cap Free Cash Flow Conversion defined as Non-GAAP Adjusted Free Cash Flow over Non-GAAP Adjusted Net Income Asset Light Model with Low Capital Expenditures Long-Term Cash Tax Savings Tranches Ongoing Focus on Profitability Leading Margin Profile Free Cash Flow Conversion ~120% ~9% Free Cash Flow Yield $254 Million FY 22 Adjusted Free Cash Flow(3)

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Capital Allocation Priorities Remain Unchanged 21 Invest in Current Brands to Drive Organic Growth 1 Continue Strategy of Deleveraging 2 Strategic Share Repurchases 4 Pursue M&A That is Accretive to Shareholders 3

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Revenue $441 $1,087 Adjusted EPS(3) $0.99 $4.06 Adjusted FCF(3) $67 $254 Long-Term History of Superior Financial Performance 22 Established, Diversified Portfolio of Category-Defining Brands Transformed Portfolio Through Disciplined M&A & Divestitures Delivered Long-Term Shareholder Value Significantly Enhanced Cash Flow Profile 2012 2022 CAGR +9.4% +15.2% +14.3% Highlights Dollar values in millions, except per share data.

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W IV. The Road Ahead & FY 23 Outlook

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Social Benefits Supplier Engagement Philanthropy Increasing Focus on ESG 24 Environmental Community Initiatives Day of Giving and other local office initiatives encourage community support Donations Meaningful donations to worthwhile causes with employee matching program Serving communities & consumers is the core of our business Proudly advocate for consumer OTC healthcare benefits through CHPA and other organizations Supplier Code of Conduct Aligning partners with our social & environmental mission and values Supply Excellence Three-pronged Waste, Water, Energy effort to minimize resource footprint Emissions Focused on assessing emissions in order to introduce targets in future Long-Term Goal of managing resource usage to ensure bright future generations

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Well-Positioned in Dynamic Macro Environment 25 Normalizing Consumer Behavior Inflationary Environment Strained Supply Chain Macro Trends Diversified Portfolio Is An Advantage Consumers Value Our Trusted Brands Across Environments Leading Shares Enable Pricing Ability at Retail 80%+ North American Sourcing

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W FY 23 Outlook  Strategy delivering with growing and well-positioned business  Agile brand-building enables portfolio for further market share gains  Revenue of $1,120 Million to $1,130 Million (~3% to 4% growth) — Organic growth of 2% to 3%  EBITDA dollars expecting to grow with Revenue  Diluted EPS of $4.18 to $4.23  Free Cash Flow(5) of $260 million or more  Continue to execute disciplined capital allocation strategy Top Line Trends Free Cash Flow & Allocation EPS 26

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Portfolio & Strategy Well-Positioned for Continued Value Creation 27 Diversified Portfolio of Leading, Trusted Brands1 Established Organic Growth Playbook2 Superior Financial Profile Generating Consistent Cash Flow3 Scalable & Efficient Platform4 Organic Growth Engine Reinforced by M&A5 Prestige’s Business Attributes & Execution Drive Superior Shareholder Value Creation

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W ...And Consistently Deliver Strong Financial Performance 28 Organic Growth(1) of 2.0% to 3.0% High Free Cash Flow(3) Generation Organic Long-Term Algorithm 6.0% to 8.0% EPS Growth Proven Value Creation Strategy Upside Potential Proven & Repeatable M&A Strategy

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Q&A

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Appendix (1) Organic Revenue is a Non-GAAP financial measure and is reconciled to the most closely related GAAP financial measure in the attached Reconciliation Schedules and / or our earnings release dated May 5, 2022 in the “About Non-GAAP Financial Measures” section. (2) Company consumption and market share are based on domestic IRI multi-outlet + C-Store retail sales for the period ending 3/20/22, retail sales data from other 3rd parties for certain untracked channels in North America for leading retailers, Australia consumption based on IMS data, and other international net revenues as a proxy for consumption. (3) Adjusted Gross Margin, Adjusted G&A, Adjusted Operating Income, Adjusted EPS, EBITDA & EBITDA Margin, Adjusted EBITDA & Adjusted EBITDA Margin, Adjusted Free Cash Flow, Free Cash Flow, and Net Debt are Non GAAP financial measures and are reconciled to their most closely related GAAP financial measures in the attached Reconciliation Schedules and / or in our earnings release dated May 5, 2022 in the “About Non GAAP Financial Measures” section. (4) Leverage ratio reflects net debt / covenant defined EBITDA. (5) Free Cash Flow for FY 23 is a projected Non-GAAP financial measure, is reconciled to projected GAAP Net Cash Provided by Operating Activities in the attached Reconciliation Schedules and / or in our earnings release in the “About Non-GAAP Financial Measures” section and is calculated based on projected Net Cash Provided by Operating Activities less projected capital expenditures plus cash payments associated with discrete items. 30

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W Adjusted Gross Margin 31 Reconciliation Schedules Organic Revenue Change a) Inventory step-up charges relate to our North American OTC Healthcare segment. a) Revenues of our Akorn acquisition are excluded for purposes of calculating Non-GAAP organic revenues.

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 32 Reconciliation Schedules (Continued) Adjusted G&A a) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 33 Reconciliation Schedules (Continued) Adjusted EBITDA Margin a) Inventory step-up charges relate to our North American OTC Healthcare segment b) Costs related to the consummation of the acquisitions process such as insurance costs, legal and other acquisition related professional fees

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 34 Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS a) Inventory step-up charges relate to our North American OTC Healthcare segment b) Costs related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees c) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both current and deferred income tax expense (benefit) based on the specific nature of the specific Non-GAAP performance measure d) Income tax adjustment to adjust for discrete income tax items Note: Amounts may not add due to rounding

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 35 Reconciliation Schedules (Continued) Adjusted Free Cash Flow Projected Free Cash Flow a) Payments related to the consummation of the acquisition process such as insurance costs, legal and other acquisition related professional fees

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 36 Reconciliation Schedules (Continued) Organic Revenue Change Year Ended March 31, 2020 2019 (In Thousands) GAAP Total Revenues 963,010$ 975,777$ Revenue Growth (1.3%) Adjustments: Revenue associated with divestiture - (19,811) Allocated costs that remain after divestiture - (659) Impact of foreign currency exchange rates - (4,370) Total Adjustments -$ (24,840)$ Non-GAAP Organic Revenues 963,010$ 950,937$ Non-GAAP Organic Revenues Growth 1.3%

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 37 Reconciliation Schedules (Continued) Adjusted EBITDA Margin Year Ended March 31, 2020 2019 (In Thousands) GAAP Net Income (Loss) 142,281$ (35,800)$ Interest expense, net 96,224 105,082 Provision (benefit) for income taxes 48,870 (2,255) Depreciation and amortization 28,995 31,779 Non-GAAP EBITDA 316,370 98,806 Non-GAAP EBITDA Margin 32.9% 10.1% Adjustments: Transition and other costs associated with new warehouse and divestiture in Cost of Goods Sold 9,170 170 Transition and other costs associated with divestiture in General and Administrative Expense - 4,272 Loss on disposal of assets 382 - Goodwill and tradename impairment - 229,461 Loss on extinguishment of debt 2,155 - Loss (gain) on divestiture - (1,284) Total adjustments 11,707 232,619 Non-GAAP Adjusted EBITDA 328,077$ 331,425$ Non-GAAP Adjusted EBITDA Margin 34.1% 34.0%

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 38 Reconciliation Schedules (Continued) Adjusted Net Income & Adjusted EPS 2012 2019 2020 Net Income Adj. EPS Net Income Adj. EPS Net Income Adj. EPS GAAP Net Income 37,212$ 0.73$ (35,800)$ (0.68)$ 142,281$ 2.78$ Adjustments Inventory step up 1,795 0.04 - - - - Integration, Transition, and other Acquisition/Divestiture costs 17,395 0.34 4,442 0.08 9,170 0.18 Unsolicited proposal costs 1,737 0.03 - - - - Loss on extinguishment of debt 5,409 0.11 - - 2,155 0.04 Gain on settlement (5,063) (0.10) - - - - (Gain) loss on divestitures - - (1,284) (0.02) 382 0.01 Accelerated amortization of debt discounts and debt issue costs - - 706 0.01 - - Goodwill and Tradename impairment - - 229,461 4.38 - - Tax impact on adjustments (8,091) (0.16) (57,863) (1.10) (2,974) (0.06) Normalized tax rate adjustment (237) - 6,132 0.11 318 0.01 Total adjustments 12,945 0.26 181,594 3.46 9,051 0.18 Non-GAAP Adjusted Net Income and Non-GAAP Adjusted EPS 50,157$ 0.99$ $145,794 2.78$ $151,332 2.96$

F U L L - Y E A R F Y 2 2 R E S U L T S & B U S I N E S S A T T R I B U T E S R E V I E W 39 Reconciliation Schedules (Continued) Adjusted Free Cash Flow 2012 2019 2020 GAAP Net Income 37,212$ (35,800)$ 142,281$ Adjustments Adjustments to reconcile net income to net cash provided by operating activities as shown in the statement of cash flows 35,674 233,400 66,041 Changes in operating assets and liabilities, net of effects from acquisitions as shown in the statement of cash flows (5,434) (8,316) 8,802 Total adjustments 30,240 225,084 74,843 GAAP Net cash provided by operating activities 67,452 189,284 217,124 Purchases of property and equipment (606) (10,480) (14,560) Non-GAAP Free Cash Flow 66,846 178,804 202,564 Integration, transition and other payments associated with acquisitions/divestitures - 10,902 4,203 Additional income tax payments associated with divestitures - 12,656 - Total adjustments - 23,558 4,203 Non-GAAP Adjusted Free Cash Flow 66,846$ 202,362$ 206,767$