The Hain Celestial Group, Inc. · NASDAQ:HAIN
The Hain Celestial — Investor Day (September 2021)
96 slides from The Hain Celestial's investor day presentation, Sep 28, 2021
Slide 1: Investor Day
Investor Day September 28, 2021
Slide 2: Mark Schiller, President and Chief Executive Officer
Mark Schiller President and Chief Executive Officer
Slide 3: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Certain statements contained in this presentation constitute “forward-looking statements” within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on exp
Slide 4: Investor Day Presenters
Investor Day Presenters Mark Schiller Wolfgang Goldenitsch Chris Boever President and CEO EVP and Chief Executive Officer Hain Celestial Europe Chief Commercial Officer David Karch Javier Idrovo Kristy Meringolo EVP and EVP and EVP, General Counsel, Chief Transformation Officer Chief Financial Offic
Slide 5: Our Commitment to You
Our Commitment to You Clarity Credibility Consistency CONFIDENCE
Slide 6: Completing Hain 2.0 to Become a Focused, High Growth Food Company
As We Complete the Hain 2.0 NA Transformation, We Will Become a Focused, High Growth, Food Company Hain 1.0 Hain 2.0 Hain 3.0 One-stop shop Simplified company High-growth global health for all things & built solid & wellness food company health & wellness foundation
Slide 7: Hain 3.0 Will Create a Differentiated and Advantaged Company
Hain 3.0 Will Create a Differentiated and Advantaged Company Average CPG Hain 3.0 Positioning Healthy eating not core Singular focus on healthy eating Mature categories with low High growth categories Markets potential with expandability Portfolio Conventional, undifferentiated brands Differentiated
Slide 8: What I Want You to Take Away Today
What I Want You to Take Away Today We delivered ‘Hain 2.0’ transformation ahead of schedule, 1 strengthening our North American business We have an exceptional, and often overlooked, international food 2 business ‘Hain 3.0’ will firmly establish Hain as a high growth, highly 3 profitable, global foo
Slide 9: Hain 2.0 Transformed Hain North America
Hain 2.0 Transformed Hain North America from a Holding Company to an Operating Company Hain 1.0 Hain 2.0 Growth Growth at any cost Profit growth Simplicity Complexity encouraged Simplification focused M&A & Divest Growth driven by M&A Divest for coherence Productivity Productivity de-prioritized Pro
Slide 10: We Transformed the Business with 4 Core Strategies
We Transformed the Business with 4 Core Strategies Simplify Strengthen Expand Reinvigorate the portfolio & capabilities margins and profitable topline organization cash flow growth
Slide 11: We Transformed the Business with 4 Core Strategies
We Transformed the Business with 4 Core Strategies Simplify Strengthen Expand Reinvigorate • Exited 23 brands • New leadership team • Simplified organization • Segmented portfolio • Eliminated ~1,000 SKUs • Innovation and • Built productivity • Focused investment on • Consolidated: sales, marketing
Slide 12: Case Study: Earth's Best
Case Study: Earth’s Best = 7 C= Organic BANANA (NAL _ VEGETABLE 9 TU ERS t ‘ £ ~ b i te te OUR CLOSEST FORMULA TO BREAST MILK crc
Slide 13: Case Study: Earth's Best
Case Study: Earth’s Best What We Did: What We Achieved: Simplify Strengthen Proactively reduced sales 1 • Exited segments • Restored 20% and SKUs marketing • Reduced poor ROI • Launched Improved EBITDA margin 2 investments accretive 1000bps Innovation • Refined Prices and Restored profitable Sizes g
Slide 14: Delivered the 2019 Investor Day Algorithm
Delivered the 2019 Investor Day Algorithm NA: NA: Total Hain 1 International Get Bigger Get Better FY 19 -2% -2% -11% 3% Adjusted Average Sales Growth FY 20- Top Line 21 3% 4% -5% 6% Growth 2 2.0 ‘Future State’ Goal +3 to +6% +5 to +7% -5 to -10% +1 to +3% FY 19 9% 13% 3% 15% Adjusted EBITDA FY 21 M
Slide 15: Delivered Margin Improvement Every Quarter Since FY19
Delivered Margin Improvement Every Quarter Since FY19 Adjusted EBITDA Margin 15% 10% 5% 0% Q1 Q2 Q3 Q4 FY19 FY20 FY21 Note: See appendix pages for reconciliation between adjusted and GAAP figures
Slide 16: Industry Leading Shareholder Returns
…Resulting in Industry Leading Shareholder Returns Total Shareholder Returns: Hain vs Peers 2/26/2019 – 9/17/2021 290% 125% 85% 74% 49% 42% 41% 25% 15% 14% 8% 5% Hain Consumer Celestial Staples Index -18% -36% -58% Note: Peer set includes 13 companies: SunOpta, Prestige Consumer Healthcare, Simply G
Slide 17: Our North American Business - Strong Brands
Our North American Business - Strong Brands Get Bigger Get Better Get Bigger Brand Solid Growth Foundation: Momentum: $1.1 Billion +3% Net Sales 1 Household Penetration 2 Mid Teens EBITDA +16% Margin 1 Consumption 3 14 Leading >600bps Share Brands Margin Expansion 4 Note: 1) FY 21 net sales and FY 2
Slide 18: We are Well Positioned for Growth
We are Well Positioned for Growth Health and Wellness Ecommerce Momentum • 91%: GMO free • 11% of sales1 • Healthy living • 100%: no artificial colors or • 97% growth2 • Significant new trial flavors • Margin neutral • Strong innovation • 35%: Certified Organic • Significant marketing • Distribution
Slide 19: What I Want You to Take Away Today
What I Want You to Take Away Today We delivered ‘Hain 2.0’ transformation ahead of schedule, 1 strengthening our North American business We have an exceptional, and often overlooked, international food 2 business ‘Hain 3.0’ will firmly establish Hain as a high growth, highly 3 profitable, global foo
Slide 20: Our International Business: Strong Brands
Our International Business: Strong Brands Solid Growth Foundation: Momentum: ~$900MM +4% Sales 1 Household Penetration 2 High Teens EBITDA +16% Margin 1 Consumption 3 10 Leading ~400bps Share Brands Margin Expansion 4 Note: 1) FY 21 net sales, Adjusted EBITDA margin excluding divestitures; 2) Weight
Slide 21: International: Adopted the North American Playbook
Our International Business: Adopted the North American Playbook Simplify Strengthen Expand Reinvigorate the portfolio & capabilities margins and profitable topline organization cash flow growth
Slide 22: International: Adopted the North American Playbook
Our International Business: Adopted the North American Playbook Simplify Strengthen Expand Reinvigorate • Consolidated divisions • Created one supply • Unified purchasing • Accelerated pace of • Sold 4 brands chain organization innovation • ROI focus • Eliminated ~300 • Adopted NA • Reallocated mark
Slide 23: What I Want You to Take Away Today
What I Want You to Take Away Today We delivered ‘Hain 2.0’ transformation ahead of schedule, 1 strengthening our North American business We have an exceptional, and often overlooked, international food 2 business ‘Hain 3.0’ will firmly establish Hain as a high growth, highly 3 profitable, global foo
Slide 24: Hain 3.0 Establishes Hain as a High Growth, Global Food Company
Hain 3.0 Establishes Hain as a High Growth, Global Food Company Hain 1.0 Hain 2.0 Hain 3.0 Growth Growth at any cost Profit growth Leading sales, profit growth Simplicity Complexity encouraged Simplification focused Coherence and integration M&A & Divest Growth driven by M&A Divest for coherence Tar
Slide 25: Hain 3.0 Algorithm Will Deliver Leading Sales and Profit Growth
Hain 3.0 Algorithm Will Deliver Leading Sales and Profit Growth FY 19 FY 21 Achieve by FY 25 Adjusted Sales -2% 1% 6 to 9% Growth 1 Adjusted EBITDA -24% 24% 8 to 11% Growth 2 Note: 1) Net sales growth adjusted for the impact of foreign exchange, divestitures and discontinued brands. 2) Adjusted EBIT
Slide 26: Hain 3.0 Redefines Our Portfolio with a Focus on Global Growth
Hain 3.0 Redefines Our Portfolio with a Focus on Global Growth • 40% Hain Sales, 41% EBITDA 1 Turbocharge • High growth categories Get Growth • Leading share brands Bigger • High teens margin Growth • 33% Hain Sales, 37% EBITDA 1 Targeted • Low growth categories Investment • Leading share brands • H
Slide 27: Hain 3.0 Redefines Our Portfolio with a Focus on Global Growth
Hain 3.0 Redefines Our Portfolio with a Focus on Global Growth Meat & Dairy Alternatives Turbocharge Food Growth & Snacks Growth Beverage Targeted Tea Baby Yogurt Investment PC Personal Care Fund Growth Fuel Investments Premium Pantry Simplify Monetize Sub-Scale Tail
Slide 28: >$1 Billion of Uplift Opportunities Identified as Part of Hain 3.0
>$1 Billion of Uplift Opportunities Identified as Part of Hain 3.0 Hain 3.0 Drivers of Growth Distribution Innovation Marketing SIMPLIFY STRENGTHEN EXPAND REINVIGORATE the portfolio & capabilities margins and profitable organization cash flow topline growth >$600MM >$450MM >$200MM Funded by Producti
Slide 29: Wolfgang Goldenitsch, CEO, Hain Celestial Europe
Wolfgang Goldenitsch CEO, Hain Celestial Europe
Slide 30: Turbocharge Growth
Turbocharge Growth Meat & Dairy Alternatives Turbocharge Food Growth & Snacks Growth Beverage Targeted Tea Baby Yogurt Investment PC Personal Care Fund Growth Fuel Premium Pantry Investments Simplify Monetize Sub-Scale Tail
Slide 31: Turbocharge Growth: Strong Brands
Turbocharge Growth: Strong Brands Strong Hain Brand Assets 1 Strong Hain Performance Annual Sales: ~$750MM 2 EBITDA Margin: High Teens 3 Sales Growth: ~18% 4 Market Share Gain: +1pp 5 Note: 1) Based on Share in Natural Product Market; 2) FY 21 Net Sales; 3) FY 21 Adjusted EBITDA margin; 4) Cumulativ
Slide 32: Turbocharge Growth: Meat & Dairy Alternatives
Turbocharge Growth: Meat & Dairy Alternatives Meat & Dairy Alternatives Turbocharge Food Growth & Snacks Growth Beverage Targeted Tea Baby Yogurt Investment PC Personal Care Fund Growth Fuel Premium Pantry Investments Simplify Monetize Sub-Scale Tail
Slide 33: Plant-Based Meat: Leading Brands in Large and High Growth Markets
Plant-Based Meat: Leading Brands in Large and High Growth Markets with Expandability Strong Hain Brand Assets Attractive Category Plant-Based Meat: $2B 1 +18% Category Growth2 Meat: $55B1 +6% Category Growth2 #1 #2 Chilled Plant-Based Plant-Based Meat Meat in Canada in the UK Notes: 1) Western Europ
Slide 34: Plant-Based Meat: Strong Revenue and Margin Growth
Plant-Based Meat: Strong Revenue and Margin Growth What We Did What We Achieved Expanded Forms and Flavors YoY Sales Growth 1 EBITDA Margin 2 Mid Teens 11% Mid Teens 9% Increased Marketing FY 19 FY 21 FY 19 FY 21 Notes: 1) Growth in constant currency; 2) Adjusted EBITDA margin
Slide 35: Plant-Based Meat: Path to Accelerate Growth via Distribution
Plant-Based Meat: Clear Path to Accelerate Growth via DISTRIBUTION ~$150MM of DISTRIBUTION Opportunity Identified Grow # of Stores and Shelf Space Expansion into Europe Rest of W. Eur UK $2B Market with 13% forecast growth Source: 1) Euromonitor; CY 20-25 CAGR
Slide 36: Plant-Based Meat: Path to Accelerate Growth via Innovation
Plant-Based Meat: Clear Path to Accelerate Growth via INNOVATION ~$100MM of INNOVATION Opportunity Identified Expanding Frozen Range Launching Chilled Range
Slide 37: Plant-Based Meat: Path to Accelerate Growth via Marketing
Plant-Based Meat: Clear Path to Accelerate Growth Via MARKETING ~$50MM of MARKETING Opportunity Identified
Slide 38: Dairy Alternatives: Leading Provider in Large and High Growth Markets
Dairy Alternatives: Leading Provider in Large and High Growth Markets Strong Hain Brand Assets 1 Attractive Category Non-Dairy Beverages: $3B 1 +11% Category Growth 2 Dairy Beverages: $21B1 +3% Category Growth2 #3 Non-Dairy Beverage in Western Europe (including Private Label) Notes: 1) Assume 20% re
Slide 39: Dairy Alternatives: Accelerating Growth and Significant Margin Expansion
Dairy Alternatives: Accelerating Growth and Significant Margin Expansion What We Did What We Achieved New Flavors New Forms New Benefits YoY Sales Growth1 EBITDA Margin2 13% Low 20s High Teens 6% FY 19 FY 21 FY 19 FY 21 Notes: 1) Growth in constant currency; 2) Adjusted EBITDA margin
Slide 40: Dairy Alternatives: Path to Accelerate Growth via Distribution
Dairy Alternatives: Clear Path to Accelerate Growth via DISTRIBUTION ~$150MM of DISTRIBUTION Opportunity Identified European Union Expansion Enter New Markets - UK
Slide 41: Dairy Alternatives: Path to Accelerate Growth via Innovation
Dairy Alternatives: Clear Path to Accelerate Growth via INNOVATION ~$100MM of INNOVATION Opportunity Identified New Flavors New Formats New Benefits
Slide 42: Dairy Alternatives: Path to Accelerate Growth via Marketing
Dairy Alternatives: Clear Path to Accelerate Growth via MARKETING ~$50MM of MARKETING Opportunity Identified
Slide 43: Chris Boever, EVP and Chief Commercial Officer
Chris Boever EVP and Chief Commercial Officer
Slide 44: Turbocharge Growth: Snacks
Turbocharge Growth: Snacks Meat & Dairy Alternatives Turbocharge Food Growth & Snacks Growth Beverage Targeted Tea Baby Yogurt Investment PC Personal Care Fund Growth Fuel Premium Pantry Investments Simplify Monetize Sub-Scale Tail
Slide 45: Snacks: Leading Hain Brands with Strong Momentum and Expandability
Snacks: Leading Hain Brands with Strong Momentum and Expandability Strong Hain Brand Assets 1 Strong Hain Performance Annual Sales: ~$425MM 2 #1 #1 #3 US Vegetable US Vegetable US Natural Straw Chip Tortilla Chip EBITDA Margin: Mid Teens 3 Sales Growth: ~10% 4 #1 #3 #2 UK Everyday UK Baby Finger US
Slide 46: Snacks: High Growth Health and Wellness Segments
Snacks: We Compete in High Growth, Health and Wellness Segments with Further Expansion Opportunities Global Health & Wellness Snacks Market Size ($B) 1.0 Participating Untapped segments 0.8 0.6 0.4 0.2 0.0 Veg Snack Popcorn Puff & Crackers Tortilla Baby Potato Pita & Bagel Pudding Chips Mixes Straws
Slide 47: Snacks - What We Did: Built Distribution with Breakthrough Innovation
Snacks - What We Did: Built Distribution with Breakthrough Innovation New Flavors New Segments Formats/Occasions Renovation
Slide 48: Snacks: Achieved Strong Market and Financial Performance
Snacks: Achieved Strong Market and Financial Performance Market Performance 1 YoY Sales Growth EBITDA Margin 2 +23% 9% Mid Teens Mid Single +15% Digit ~0% HH Pen. Repeat Buyers FY 19 FY 21 FY 19 FY 21 Growth Growth Notes: 1) HH Pen and Repeat Rate based on L12WK as of 8-8-21 vs 2-yr ago in US All Ou
Slide 49: Snacks: Path to Accelerate Growth Via Distribution
Snacks: Clear Path to Accelerate Growth Via DISTRIBUTION ~$200MM of DISTRIBUTION Opportunity Identified Grow # of MULO Stores and Extend into Under Penetrated Shelf Space Channels Drug Channel Convenience Channel Current ACV Target ACV Source: SPINs
Slide 50: Snacks: Path to Accelerate Growth Via Innovation
Snacks: Clear Path to Accelerate Growth Via INNOVATION ~$150MM of INNOVATION Opportunity Identified New Flavors New Formats & Size Adjacent Segments
Slide 51: Snacks: Path to Accelerate Growth Via Marketing
Snacks: Clear Path to Accelerate Growth Via Increased MARKETING ~$50MM of MARKETING Opportunity Identified Partnerships Seasonal Promotion Digital, Social, Mobile
Slide 52: Targeted Investment
Targeted Investment Meat & Dairy Alternatives Turbocharge Food Growth & Snacks Growth Beverage Targeted Tea Baby Yogurt Investment PC Personal Care Fund Growth Fuel Premium Pantry Investments Simplify Monetize Sub-Scale Tail
Slide 53: Targeted Investment: Strong Brand Assets Growing Faster than Market
Targeted Investment: Strong Brand Assets Growing Faster than Market Strong Hain Brand Assets 1 Strong Hain Performance Annual Sales: ~$625MM 2 #1 #1 #1 #2 NA Herbal Tea US Baby Formula UK Baby Food Canada Hand Sanitizer EBITDA Margin: High Teens 3 Sales Growth: ~2% 4 #1 #2 #2 #3 Market Share Gain: +
Slide 54: Targeted Investment: Gained Shares through Well-Focused Actions
Targeted Investment: Gained Shares through Well-Focused Actions Renovation Innovation New Flavors/Scents New Sublines
Slide 55: Targeted Investment: Path to Accelerate Growth Via Distribution
Targeted Investment: Clear Path to Accelerate Growth Via DISTRIBUTION ~$100MM of DISTRIBUTION Opportunity Identified Leverage Partnerships New Channels New Regions
Slide 56: Targeted Investment: Path to Accelerate Growth Via Innovation
Targeted Investment: Clear Path to Accelerate Growth Via INNOVATION ~$100MM of INNOVATION Opportunity Identified Personal Care Tea Baby
Slide 57: Targeted Investment: Path to Accelerate Growth Via Marketing
Targeted Investment: Clear Path to Accelerate Growth Via Increased MARKETING ~$50MM of MARKETING Opportunity Identified Personal Care Tea Baby Yogurt
Slide 58: Fuel and Simplify
Fuel and Simplify Meat & Dairy Alternatives Turbocharge Food Growth & Snacks Growth Beverage Targeted Tea Baby Yogurt Investment PC Personal Care Fund Growth Fuel Investments Premium Pantry Simplify Monetize Sub-Scale Tail
Slide 59: Fuel: Stabilized Brands and Improved Margins
Fuel: Stabilized Brands and Improved Margins Stabilized Topline Growth 1 Profitable Businesses Preserve Reliable Fuel for Growth EBITDA Margin 2 FY 19 FY 21 Mid Teens Productivity: Margin Improvements Double Digit -2% Scrappy Innovation Space Optimization -9% FY 19 FY 21 Note: 1) Year over Year net
Slide 60: Simplify: Sell, Shut or Transfer $150MM Brands with Limited Potential
Simplify: Sell, Shut or Transfer $150MM Brands with Limited Potential Declining Topline 1 Low Margins EBITDA Margin 2 FY 19 FY 21 Exiting declining brands 9% materially enhances our -15% total company growth rate and maximizes 1% shareholder value FY 19 FY 21 -39% Note: 1) Year over Year net sales g
Slide 61: Hain 3.0 Algorithm: Assumes Only a Fraction of the Potential
Hain 3.0 Algorithm: Assumes Only a Fraction of the Potential $1Billion+ of clearly identified opportunity Distribution Innovation Marketing >$600MM >$450MM >$200MM We have way more ideas than we need to achieve our 3.0 algorithm
Slide 62: David Karch, EVP and Chief Transformation Officer
David Karch EVP and Chief Transformation Officer
Slide 63: Growth will be Funded through Industry Leading Productivity
Growth will be Funded through Industry Leading Productivity Hain 3.0 Drivers of Growth Distribution Innovation Marketing >$600MM >$450MM >$200MM Funded by Productivity
Slide 64: Hain 2.0 Established a Performance-Driven Culture
Hain 2.0 Established a Performance-Driven Culture Transformation Processes Key Results • Organization structure • Accountability • Productivity Management System • Customer Focused • Continuous improvement • Disciplined/Repeatable • Productivity Ideation Sessions • Alignment • Cross functional owner
Slide 65: $100MM of Projects Delivered FY 20-21
$100MM of Projects Delivered FY 20-21 FY 20-21 Completed Hain 2.0 Accomplishments $100MM Supply Chain: $60MM SG&A: $40MM 500+ Basis Points margin FY 20-21 $60MM Supply Chain cost Total # Projects 300 $40MM SG&A cost
Slide 66: Another $100MM of Projects Identified for FY 22-23
Another $100MM of Projects Already Identified for FY 22-23 FY 22-23 Pipeline Hain 3.0 Focus Areas $100MM • Global Sourcing Supply Chain: $90MM • Global Baby and plant- based SG&A: $10MM meat synergies • Manufacturing footprint FY 22-23 automation and process Total # Projects efficiencies 300 • Produ
Slide 67: Javier Idrovo, EVP and Chief Financial Officer
Javier Idrovo EVP and Chief Financial Officer
Slide 68: Growth Brands Will Drive Our Top and Bottom Line Algorithm
The Growth Brands in Hain 3.0 Will Drive our Top and Bottom Line Algorithm Growth Achieved by FY 25 FY 21 Turbocharge Targeted Total Growth Adjusted Sales 1% 10 to 13% 3 to 6% 7 to 10% Growth 1 Adjusted EBITDA 24% 11 to 14% 4 to 7% 9 to 12% Growth 2 Notes: 1) Net sales growth adjusted for the impact
Slide 69: Our Hain 3.0 Algorithm Will Drive Profitable Growth
Our Hain 3.0 Algorithm Will Drive Profitable Growth Growth Achieved by FY 25 FY 21 Total Growth Fuel Simplify Total Hain Adjusted Sales 1% 7 to 10% -1 to 2% N/A 6 to 9% Growth 1 Adjusted EBITDA 24% 9 to 12% 2 to 5% N/A 8 to 11% Growth 2 Notes: 1) Net sales growth adjusted for the impact of foreign e
Slide 70: New Portfolio Segmentation Reflects Focus on Growth Categories
New Portfolio Segmentation Reflects Focus on Building the Growth Categories % of Sales % of EBITDA 1 Hain 1.0 Hain 2.0 Hain 3.0 Hain 1.0 Hain 2.0 Hain 3.0 Turbocharge Growth 28% 40% 50% 37% 41% 53% Growth Targeted 28% 33% 34% 42% 37% 34% Investment Total Growth 56% 73% 84% 78% 77% 87% Fuel 18% 19% 1
Slide 71: Hain 3.0 Continues to Focus on Enhancing Shareholder Value
Hain 3.0 Continues to Focus on Enhancing Shareholder Value Driving Profitable Growth Enhanced Optimizing Capital Generating Significant Deployment Shareholder Cash Flow Value Leveraging Balance Sheet Flexibility
Slide 72: Close to $2B Available to Strategically Invest and Enhance Shareholder Returns
Close to $2B Available to Strategically Invest and Enhance Shareholder Returns FY 22-FY 25: Cash Available $0.7B - $1.1B $1.4B - $1.8B $0.4B $0.4B $1.0B -$0.3B $0.7B $0.7B $1.4B Operating CapEx Oper. Free Incremental Debt Cash Available Cash Flow Cash Flow (3x-4x Leverage) Note: Figures represent pr
Slide 73: Capital Allocation Priorities
Capital Allocation Priorities Focus on Delivering Highest Risk-Adjusted Shareholder Returns Capital Structure • Target Net Debt Leverage of 3-4x • Drive Capacity Increases Internal Investments • Improve Operational Efficiencies • Fulfill Regulatory Requirements • Focused M&A in Growth Categories Ext
Slide 74: Balance Sheet Flexibility to Enhance Shareholder Returns
We have Created Balance Sheet Flexibility to Enhance Shareholder Returns Consolidated Adjusted Operating Cash Flow Net Debt Leverage EBITDA (Net Debt/EBITDA) 3.9x $Million $Million $197 $259 $157 $200 $165 1.7x $39 0.7x FY 2019 FY 2020 FY 2021 2019 2020 2021 FY 2019 FY 2020 FY 2021 Note: See appendi
Slide 75: Share Repurchases
We have Created Balance Sheet Flexibility to Enhance Shareholder Returns Share Repurchases ($MM) $155MM $107MM $60MM Avg Share Avg Share Avg Share Price: $23.59 Price: $34.87 Price: $38.71 2020 2021 Q1 FY 22 (As of 9/20/21) Note: Average share repurchase price excludes commissions.
Slide 76: FY 22 is a Bridge Year as we Pivot to Hain 3.0
FY 22 is a Bridge Year as we Pivot to Hain 3.0 Spanning FY 23-25 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 Hain 1.0 Hain 2.0 Hain 3.0
Slide 77: Hain 3.0 Builds on Strong Momentum in FY 22 H2
Hain 3.0 Builds on Strong Momentum in FY 22 H2 FY 22 H1 FY 22 H2 Achieve by FY 25 Adjusted Decline Low Sales to Mid Mid to High 6% to 9% Single Digits Single Digits Growth 1 Adjusted High Single EBITDA Close to Flat Digits to Low 8% to 11% Growth 2 Double Digits Notes: 1) Net sales growth adjusted f
Slide 78: Growth Brands Showing Strong Consumption Momentum
Growth Brands Showing Strong Consumption Momentum $ Growth vs. 2 YAG 1 16% 14% 12% 10% 8% 6% 4% 2% 0% 12 WE 4/18/21 12 WE 5/16/21 12 WE 6/13/21 12 WE 7/11/21 12 WE 8/8/21 12 WE 9/5/21 Notes: 1) IRI Source: IRI MULO + C, PE 9/5/21
Slide 79: Kristy Meringolo, EVP, General Counsel, Chief Compliance Officer
Kristy Meringolo EVP, General Counsel, Chief Compliance Officer and Corporate Secretary 78
Slide 80: Environmental, Social & Governance Program
Environmental, Social & Governance Program Mission: Create and inspire a Healthier Way of Life® for our employees, consumers, customers, stockholders and global communities in which we work and live Reduce environmental Provide affordable and Positively impact the lives footprint and accessible prod
Slide 81: Significant Progress to Date
Check build Significant Progress to Date Progress in FY 21: • Published our 2021 Global ESG Report • Publicly declared commitment to setting a science- based target • Completed global carbon footprint assessment • Established baseline for setting FY 22 goals • Embedded ESG goals into all processes,
Slide 82: FY 22 ESG Goals
FY 22 ESG Goals Goal Scope Year (CY) Develop scope 1,2,3 emissions targets and achieve validation by the Science Based Targets initiative Global 2023 100% renewable electricity for Hain Celestial operated facilities Global 2025 Zero food waste for Hain Celestial manufactured product Global 2025 Zero
Slide 83: Mark Schiller, President and Chief Executive Officer
Mark Schiller President and Chief Executive Officer
Slide 84: Hain 3.0 Will Create a Differentiated and Advantaged Company
Hain 3.0 Will Create a Differentiated and Advantaged Company Average CPG Hain 3.0 Positioning Healthy eating not core Singular focus on healthy eating Mature categories with low High growth categories Markets potential with expandability Portfolio Conventional, undifferentiated brands Differentiated
Slide 85: Thank You
Thank You
Slide 86: Appendix
Appendix
Slide 87: Adjusted Net Sales Growth – Total Hain
Adjusted Net Sales Growth – Total Hain $ in thousands FY 19 FY 20 FY 21 Net sales as reported $ 2,104,606 $ 2,053,904 $ 1,970,302 Divestitures and discontinued brands (379,701) (272,952) (110,857) Impact of foreign currency exchange 44,525 27,470 (61,307) Net sales on a constant currency basis adjus
Slide 88: Adjusted Net Sales Growth – North America
Adjusted Net Sales Growth – North America $ in thousands FY 19 FY 20 FY 21 Net sales as reported $ 1,195,979 $ 1,171,478 $ 1,104,128 Divestitures and discontinued brands (148,650) (93,447) (35,314) Impact of foreign currency exchange 6,047 2,227 (6,083) Net sales on a constant currency basis adjuste
Slide 89: Adjusted Net Sales Growth – International
Adjusted Net Sales Growth – International $ in thousands FY 19 FY 20 FY 21 Net sales as reported $ 908,627 $ 882,425 $ 866,174 Divestitures and discontinued brands (231,051) (179,505) (75,543) Impact of foreign currency exchange 38,478 25,243 (55,224) Net sales on a constant currency basis adjusted
Slide 90: Adjusted EBITDA Margin by Segment – FY 19
Adjusted EBITDA Margin by Segment – FY 19 $ in thousands North America International Corporate/Other Hain Consolidated FY 19 Operating income (loss) $ 32,682 $ 58,808 $ (123,983) $ (32,493) Depreciation and amortization 16,993 31,515 2,390 50,898 Stock-based compensation, net 1,517 970 6,984 9,471 S
Slide 91: Adjusted EBITDA Margin by Segment – FY 20
Adjusted EBITDA Margin by Segment – FY 20 $ in thousands North America International Corporate/Other Hain Consolidated FY 20 Operating income (loss) $ 95,934 $ 55,333 $ (95,225) $ 56,042 Depreciation and amortization 16,890 31,437 3,761 52,088 Stock-based compensation, net 2,716 1,316 9,046 13,078 G
Slide 92: Adjusted EBITDA Margin by Segment – FY 21
Adjusted EBITDA Margin by Segment – FY 21 $ in thousands North America International Corporate/Other Hain Consolidated FY 21 Operating income (loss) $ 129,010 $ 38,036 $ (59,666) $ 107,380 Depreciation and amortization 16,816 29,915 2,838 49,569 Stock-based compensation, net 3,410 1,535 10,714 15,65
Slide 93: Adjusted EBITDA Growth – Total Hain
Adjusted EBITDA Growth – Total Hain $ in thousands FY 19 FY 20 FY 21 Adjusted EBITDA as reported $ 165,112 $ 199,993 $ 258,938 Divestitures and discontinued brands (7,493) (2,358) (3,498) Impact of foreign currency exchange 5,715 3,427 (10,704) Adjusted EBITDA on a constant currency basis excluding
Slide 94: Adjusted EBITDA & Margin Growth – Total Hain (FY 18 & FY 19)
Adjusted EBITDA & Margin Growth – Total Hain (FY 18 & FY 19) $ in thousands Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 FY 18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY 19 Net Sales $ 547,090 $ 567,770 $ 582,563 $ 568,247 $ 2,265,670 $ 518,478 $ 533,566 $ 547,257 $ 505,305 $ 2,104,606 Net income (loss) 19,846 47,103 12
Slide 95: Adjusted EBITDA & Margin Growth – Total Hain (FY 20 & FY 21)
Adjusted EBITDA & Margin Growth – Total Hain (FY 20 & FY 21) $ in thousands Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 FY 20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY 21 Net Sales $ 482,076 $ 506,784 $ 553,297 $ 511,746 $ 2,053,904 $ 498,627 $ 528,418 $ 492,604 $ 450,653 $ 1,970,302 Net (loss) income $ (107,021) $ (9
Slide 96: Net Debt Leverage
Net Debt Leverage $ in thousands FY 19 FY 20 FY 21 Long-term debt, less current portion $ 613,537 $ 281,118 $ 230,492 Current portion of long-term debt 17,232 1,656 530 Total debt 630,769 282,774 231,022 Less: Cash and cash equivalents 31,017 37,771 75,871 Net debt $ 599,752 $ 245,003 $ 155,151 Adju
The Hain Celestial Group — Investor Day (September 2021) on 6ix