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Church & Dwight Co., Inc.

2010 Analyst Day


Presentation by:
Jim Craigie, Chairman & CEO
Matt Farrell, EVP & CFO

New York, NY
February 9, 2010
Agenda

1. Opening Remarks Jim Craigie


2. Q4 and Full Year 2009 Financials Matt Farrell
3. 2009 Business Review Jim Craigie
4. 2010 Outlook Jim Craigie
5. Q&A Jim Craigie
Matt Farrell

2
Opening Remarks

3
Safe Harbor Statement

This presentation contains forward-looking statements relating, among others, to sales and earnings growth, including
growth for the laundry detergent business, cash flow, margin improvement, marketing spending, new product
introductions, contribution to revenue, growth and gross margin expansion by the new laundry detergent manufacturing
plant and warehouse facility, capital expenditures and cash transition expenses related to the new facility, forecasted
organic sales growth and earnings per share growth, the Company’s focus on targeted marketing and new product
introductions and investment in a global information systems project. These statements represent the intentions, plans,
expectations and beliefs of the Company, and are subject to risks, uncertainties and other factors, many of which are
outside the Company’s control and could cause actual results to differ materially from such forward-looking
statements. The uncertainties include assumptions as to market growth and consumer demand (including the effect of
political and economic events on consumer demand), retailer actions in response to changes in consumer demand and
the economy, raw material and energy prices, the financial condition of major customers and vendors, interest rate and
foreign currency exchange rate fluctuations and changes in marketing and promotional spending. With regard to the new
product introductions referred to generally in this release, there is particular uncertainty relating to trade, competitive and
consumer reactions. Other factors that could materially affect actual results include the outcome of contingencies,
including litigation, pending regulatory proceedings, environmental matters and the acquisition or divestiture of
assets. For a description of additional factors that could cause actual results to differ materially from the forward looking
statements, please see the Company’s quarterly and annual reports filed with the SEC, including information in the
Company’s annual report on Form 10-K in Item 1A, “Risk Factors.”

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Agenda

1. Opening Remarks Jim Craigie


2. Q4 and Full Year 2009 Financials Matt Farrell
3. 2009 Business Review Jim Craigie
4. 2010 Outlook Jim Craigie
5. Q&A Jim Craigie
Matt Farrell

5
Fourth Quarter 2009 Overview
(Excluding New Plant)

 EPS up 26% to $0.83

 3% Total Company Organic Sales

 5% Consumer Organic Sales Growth

 Gross Margin up 400 Basis Points

 Operating Margin up 210 Basis Points

6
2009 Highlights – Another Great Quarter
(Excluding New Plant)

($ in millions) 2008 2009


Net Sales $644.9 $670.8 +4.0%
Organic Growth 11.0% 3.0% +5.0% Consumer
Gross Margin 40.1% 44.1% +400 bps
Mktg. % of Sales 12.7% 13.9% +120 bps
SG&A as % of Sales 14.3% 15.0% +70 bps

Operating Margin 13.1% 15.2% +210 bps


Effective Tax Rate 37.5% 38.0%
EPS $0.66 $0.83 +26%

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Share Growth on 5-of-8 Power Brands

Market Share* 2009 Q4 Growth


A&H Liquid Detergent 7.5% +0.5 pts
A&H Clumping Litter 21.6% +1.7 pts
OxiClean 36.1% -2.6 pts

SpinBrush 18.5% +0.8 pts

First Response 25.2% +0.0 pts

Trojan 75.8% +0.7 pts

Nair 27.3% +0.6 pts

Orajel 56.7% - 2.6 pts

Xtra 4.2% - 0.2 pts

* Market share is Nielsen 13-week 12/26/09 FDMX 8


Full Year 2009 Highlights: Another Terrific Year!
(Excluding New Plant and Legal Settlement)

 EPS up 22% to $3.48

 5% Total Company Organic Sales

 7% Consumer Organic Sales Growth

 Gross Margin up 430 Basis Points

 Operating Margin up 220 Basis Points

 Free Cash Flow up 17% to $339MM

9
High Quality 2009 Results!
(Excluding New Plant and Legal Settlement)

($ in millions)
2008 2009
Net Sales $2,422.4 $2,520.9 +4%
Organic Growth 7.0% 5.0% 7.0% Consumer
Gross Margin 40.5% 44.8% +430 bps
Mktg. % of Sales 12.1% 14.0% +190 bps
SG&A as % of Sales 13.9% 14.1% +20bps

Operating Margin 14.5% 16.7% +220 bps


Effective Tax Rate 36.7% 37.9%
EPS $2.86 $3.48 +22%
FCF $289 $339 +17%

10
Double Digit EPS Growth In Every Quarter

$.92

$.86 $.86

$.83

+14% +29% +18% +26%

Q1 Q2 Q3 Q4

11
Another Year of Strong Organic Sales Growth

2007 2008 2009

12
Consumer Volume up 5% in 2009

Volume Price/Mix Total

Consumer 5% 2% 7%
Specialty -18% 7% -11%
Total 2% 3% 5%

13
Share Growth on 7-of-8 Power Brands in 2009

Market Share* 2009 Q4 Growth


A&H Liquid Detergent 7.2% +1.2 pts
A&H Clumping Litter 20.9% +0.6 pts

OxiClean 38.0% +2.7pts

SpinBrush 41.3% +4.0 pts

First Response 25.8% +0.4 pts

Trojan 75.4% +0.0 pts

Nair 28.7% +0.5 pts

Orajel 57.5% - 3.8 pts

Xtra 4.3% +0.3 pts

* Market share is Nielsen 52-week FDMX 14


Significant Gross Margin Expansion

2007 2008 2009

15
GM: Driven by Cost Savings & Pricing/Mix
(2009 vs. 2008)

Estimated Change
(Basis Points)
Gross Margin Expansion (’09 vs. ’08) 430
Explained by:
Raw Input Cost Decreases 200
Cost Savings 50
Pricing/Mix 130

Subtotal 380
Orajel 50
Total 430

Excludes New Plant Charges


16
Significant Free Cash Flow Growth
(ex. New Plant and Legal Settlement)

FCF = Operating Cash - Capex $339


$289
Conversion
% = Free
$200 Cash / Net
Income

2007 2008 2009


FCF
Conversion: 118% 143% 136%
17
Responsible Capital Investment

Capital Expenditures as % of Sales


5.4%
4.1%

2.2% $51 $85

$49 $47 $50

2007 2008 2009

Blue: Base Business


Green: New Laundry Plant
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Strong Balance Sheet

Total Debt / Bank EBITDA


For Years Ended 2006 – 2009

4x Target Leverage
Range of 2-3x

3x 2.7x
2.3x
2x
1.9x
1.6x

1x

0x
2006 2007 2008 2009
19
Significant Financial Capacity

$ MM Dec. 31, 2009


Cash $447

Net Debt $369

Bank EBITDA $508

Net Debt/Bank EBITDA 0.7x

S&P Credit Rating BB+

20
Prioritized Uses of Free Cash Flow

1. TSR-accretive M&A

2. New product development

3. Capex for organic growth

4. Debt reduction

5. Return of cash to shareholders

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Agenda

1. Opening Remarks Jim Craigie


2. Q4 and Full Year 2009 Financials Matt Farrell
3. 2009 Business Review Jim Craigie
4. 2010 Outlook Jim Craigie
5. Q&A Jim Craigie
Matt Farrell

22
Consumers Love Our Products

23
Our 8 Power Brands Generate . . .

80%
= of
Sales &
Profits

24
Our Premium Brands are Market Leaders

Arm & Hammer A&H brands are in 86% of households in America

Trojan #1 Condom Brand

OxiClean #1 Laundry Additive Brand

SpinBrush #1 Battery Powered Toothbrush Brand

First Response #1 Pregnancy Kit Brand

Nair #1 Depilatory Brand

Orajel #1 Oral Care Pain Relief Brand


25
Our Unique Product Portfolio Has Both
Value and Premium Products

26
Our Value Brands Thrive in a Recessionary
Economy

27
Our Value Brands Offer Significant Savings

Cost Per Load


Index vs. Tide
150oz 150oz
Tide 100 Era 54

Cheer 86 Purex 53

Gain 86 Arm & Hammer 48

Wisk 72 Sun 35

all 70 Xtra 32

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Consumers have Shifted from Premium
and Mid Tier Brands to Value Brands

Liquid Detergent Buying Households


% Change vs. YA

+12.0%

+4.9%

-2.7%
-7.5%
Premium Liquid Mid Liquid Value Liquid Extreme Value
Detergent Detergents Detergents Detergents

Source: Nielsen, Homescan Panel, Pre Period: 52 w/e 12.27.08, Post Period: 52 w/e 12/26/09, Total US;
Buyer Group Definitions-Source: Market Structure Light 2009, Premium LQ Buyers – Tide & Cheer, Mid LQ Buyers – Gain, Wisk, Era, All, Value
LQ Buyers – A&H, Purex, PL, Extreme Value LQ Buyers – Xtra, Sun
29
Church & Dwight Captured 90% of the
Growth in the Value Tier

Dollar Change vs. YA


Value Tier $184MM

CHURCH & DWIGHT $160MM

CHD accounts for 90% of


Value Tier Growth

Source: Nielsen 52 weeks from 12/26/09- Value Tier Excludes Private Label, FDDMXBJ’s 30
And Captured 80% of Liquid Laundry
Growth in 2009

Dollar Change vs. YA


Total Liquid Detergent $117MM

CHURCH & DWIGHT $94MM

CHD accounts for 80%


of category growth

Source: Nielsen; FDDMBJ Actual Dollar Change vs YA 52 WE 12.26.09


Source: Nielsen; FDDMBJ Actual Dollar Change vs YA 52 WE 12.26.09 31
AS THE
ECONOMY
RECOVERS, WILL
THIS STICK?
32
Advertising Age: May 2009

 Consumers Are Not “Trading Down,” They Are


Making “Smart Choices”

33
McKinsey Study: Aug/Nov. 2009
The “New Normal” for Consumers

 Two shifts in consumer decision-making:


“Changes in ability to pay”

“Changes in perceptions”

 “As a result of both shifts, the majority of


consumers claim they will stick with
lower-priced brands.”

Source: McKinsey New Normal Research (August and November 2009) 34


Question: What % of Liquid Laundry
Consumers are Shifting to Value Detergents?

Laundry – high trade down rate and high perception changes

20% Consumer Trade Down


48% Consumer Having Experiences Better than
Expectations
Answer:
10% of Category is Shifting Down
Source: McKinsey New Normal Research (August and November 2009) 35
NOT ONLY ARE
VALUE DETERGENTS
GROWING, BUT . . .

36
Growth of Value Detergent is Driving Growth
of Laundry Additives

 Laundry Additives Category +10% in 2009

 65% of Growth is from Value Laundry


Buyers

Source: Nielsen Panel Total US 37


Consumers are Making Really Smart Choices

Cost Per Load:

Value Detergent: 6.5¢


Laundry Additives: 11.1 ¢
Total: 17.6 ¢

vs. Premium Detergent: 24.9 ¢

29% SAVINGS FOR PREMIUM PERFORMANCE

38
AND GUESS
WHAT BRAND
BENEFITS?
39
America’s #1 Laundry Additive

+16% Sales in 2009


38% Share: +2.7 Share

Source: Nielsen FDMX 12/26/2009 40


But Remember C&D’s Unique Product
Portfolio is Largely Premium Brands

41
In 2009 We Increased Marketing
Investment Behind All Power Brands

Higher
Marketing
Value Gross $s On
Brand Margin Power
Growth + Growth = Brands

42
Why? Because Investing During a Recession
Helps You Emerge in a Stronger Position

275%
 During the early 1980’s recession, companies that
maintained aggressive sales & marketing efforts
enjoyed more growth after the recession

Revenue
Growth % in
First Five
Years After
Recession

19%

Companies that maintained Companies that cut sales and


sales and marketing efforts marketing efforts during
during recession recession

Source:
Source: McGraw-Hill
McGraw-Hill Research
Research 43
We Increased Marketing $60 Million in 2009
and $137 Million Since 2006

+$40MM +$37MM +$60MM

2007 2008 2009

44
Used Increased Marketing $s to Increase Share of
Voice (SOV) Above Share of Market (SOM)

SOV/SOM > 150

2008 2009*
A&H Laundry + +
OxiClean + +
A&H Cat Litter +
A&H Dental Care +
SpinBrush + +
First Response +
Trojan

* rolling past 12 months thru June (media reporting lags) 45


ARM & HAMMER Liquid Grew 8x Faster
than Category

+25% vs.
YA

Source: Nielsen FDDMxBJS Latest 52 Wks Ending 12.26.09


46
XTRA Grew 6x Faster than Category

+19% vs.
YA

Source: Nielsen FDDMxBJS Latest 52 Wks Ending 12.26.09


47
OxiClean Grew 2x Faster than Category

+16% vs.
YA

Source: Nielsen FDDMxBJ Latest 52 Wks Ending 12.26.09


48
ARM & HAMMER Clumping Litter Grew 3x
Faster than Category
+6% vs.
5.7
YA

1.9

TTL LITTER A&H CLMP LTTR

Source: Nielsen FDDBJMx Latest 52 Wks Ending 12.26.09


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C&D Condoms Grew 1.4x Faster than Category

+2% vs.
4.1
YA

1.6

CONDOMS CONDOMS CHURCH & DWIGHT

Source: Nielsen FDDMxBJs Latest 26 Wks Ending 12.26.09


50
Spinbrush Grew +1.2% in Declining Category
+1%
vs. YA

Source: Nielsen FDDMxBJs Latest 52 Wks Ending 12.26.09


51
First Response Diagnostics Grew +1.1% in
Declining Category

+1%
vs. YA
1.1

-2.1

DIAGNOSTICS FRSTRESPONSE
FRST RESPNS

Source: Nielsen FDDMxBJs Latest 52 Wks Ending 12.26.09


52
C&D Power Brands 2009 Dollar Growth
Exceeded Category Growth

Dollar Percent Change vs Year Ago

1.1

LQD DET A&H LQD LQD DET XTRA STN OXICLEAN LITTER A&H CONDOMS TROJAN BTTRY SPINBRUSH DIAG FRST
DET LQD DET FGTRS CLMP BRUSHES RESPONSE
LTTR

Source: Nielsen FDDMxBJs Latest 52 Wks Ending 12.26.09/ Condoms: 26 Wks Ending 12.26.09

53
CHD Power Brands Beat Category Growth
20 out of 24 Times from 2007 - 2009

2007 2008 2009


CHD Category CHD Category CHD Category
AH Liquid +11.3% +4.0% +11.4% +9.2% +24.1% +2.6%
XTRA -6.4% +4.0% +10.9% +9.2% +10.8% +2.6%
OXICLEAN +18.6% +2.5% +8.1% -4.4% +15.7% +7.5%
FIRST RESPONSE +8.5% +1.3% +3.1% -1.1% -2.2% -3.9%
NAIR +13.7% +8.3% +10.0% +2.7% -0.9% -2.5%
TROJAN +3.0% +0.2% +2.3% +2.1% +0.3% +0.3%
SPINBRUSH +4.2% +17.6% +0.7% -1.7% +3.5% -2.3%
ORAJEL (toothache) +8.0% +3.9% +10.4% +3.6% -3.7% -3.5%

Source: Nielsen FDMX YE 2007, 2008, 2009


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Agenda

1. Opening Remarks Jim Craigie


2. Q4 and Full Year 2009 Financials Matt Farrell
3. 2009 Business Review Jim Craigie
4. 2010 Outlook Jim Craigie
5. Q&A Jim Craigie
Matt Farrell

55
2010 Business Environment Outlook

 Minimal Economic Rebound

 Increased Trade Spending

 Continued SKU Rationalization

 Commodity Headwinds

56
2010 CHD Outlook

 Best New Product Pipeline Ever

 Continued Strong Marketing Support

 Continued Gross Margin Improvement

 Positioned for Acquisitions

57
NEW! ARM & HAMMER Power Gels

 America’s First Ever Gel


Detergent, with the 2-in-1
Cleaning Power of
OxiClean Stain Fighters
plus ARM & HAMMER
Baking Soda

 Revolutionary New Gel


Formula has more Power
in Every Drop so it Grabs
Stains and Powers Them
Out Better Than Watery
Liquids*
* Versus other value liquids
58
NEW OxiClean Boosters

 Maximum Strength Stain Removal – Combines 4 Types of Stain


Fighters to Get More Tough Stains Out the First Time!
- Dirt, Grass, Grease, even Blood Won’t Stand a Chance
 Available in Thick, Powerful Gels and the New, More Convenient
Power Pack Form

59
NEW Trojan Condoms Driving Record Shares

2009 2010
 Launched in Q2 2009  New in 2010

 #1 Selling Condom  Heightened


Sensations for
 #1 New Condom Increased Pleasure
Product Launch Ever
 Unlike ANYTHING
Other Condoms
Deliver
60
ARM & HAMMER SpinBrush: #1 Battery
Toothbrush for 17 Consecutive Quarters

2009 2010
 Launching Rechargeable
 Launched Sonic Batter-Powered
SpinBrush Version
 Leverages Success of
 Fastest Growing Brush in the
Category 2009 Launch
 All the Benefits of #1
 “Best Buy” Rating by Top
Consumer Magazine Brush at 65% Lower Cost
61
First Response: First to Achieve
“6 Day Sooner” Claim

2010 2009
 The ONLY test that tells  First to launch innovative
you 6 days before missed fertility test for women
period

62
Nair: Extending Successful Shower Power Line

2009 2010
 #1 In-Shower Depilatory in  Extending the Shower Power
the Market Platform with a Convenient Pump

63
More to Come

At Least One More Major


Product Innovation in 2010

64
2010 Outlook

 Best New Product Pipeline Ever

 Continued Strong Marketing Support

 Continued Gross Margin Improvement

 Positioned for Acquisitions

65
Continued Strong Marketing Support in 2010

 +/-14% of Sales

 Supports SOV>SOM to Drive Share


Growth

66
New Products & Marketing Will Drive 4-5%
2010 Organic Sales

+7%

+5% +5% +4-5%


4-5%

2007 2008 2009 2010 Est.

67
A&H Will Become Our 1st Billion Dollar
Brand in 2010

68
2010 Strategic Outlook

 Best New Product Pipeline Ever

 Continued Strong Marketing Support

 Continued Gross Margin Improvement

 Positioned for Acquisitions

69
2010 Gross Margin Drivers

 New Laundry Plant

 Cost Savings

 Raw Materials

 Trade Spending

 Business Mix (SPD)

 Net

70
Gross Margin Expansion Led by New Plant

The Davies Plant; York, Pennsylvania

71
Consistent Strong EPS Growth

+13 to +15%

+19% +16%

Organic 2007 2008 2009 2010E


Growth +5% +7% +5% +4 to 5%
72
2010 Strategic Outlook

 Best New Product Pipeline Ever

 Continued Strong Marketing Support

 Continued Gross Margin Improvement

 Positioned for Acquisitions

73
Positioned for Acquisitions

 $450 Million Cash

 $180 Million Undrawn Facilities

 1.6x Total Debt / Bank EDITDA

 $300+ Million Cash Flow in 2010

74
Tight Acquisition Guidelines

 Primarily #1 or #2 Share Brands

 Higher Growth, Higher Margin Brands

 Asset Light

 Leverage CHD Capital Base in


Manufacturing, Logistics and Purchasing
 Deliver Sustainable Competitive
Advantage

75
Excellent Acquisition History

Church & Dwight Revenue Development – Past 9 Years

ArmKel Orajel
Carter-
JV OrangeGlo
Wallace
Unilever (50%)
Oral Care
USA SpinBrush
Detergents

76
2010 First Quarter Forecast

Organic +5%

EPS $1.05-$1.10

77
Agenda

1. Opening Remarks Jim Craigie


2. Q4 and Full Year 2009 Financials Matt Farrell
3. 2009 Business Review Jim Craigie
4. 2010 Outlook Jim Craigie
5. Q&A Jim Craigie
Matt Farrell

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