Spectrum Brands Holdings, Inc. · NYSE:SPB
Spectrum Brands — Investor Day (October 2016)
90 slides from Spectrum Brands's investor day presentation, Oct 12, 2016
Slide 1: Spectrum Brands Investor Day
Global Batteries & Appliances Pet, Home & Garden Spectrum Brands Investor Day Hardware & Home Improvement Global October 12, 2016 Auto Care
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain matters discussed in this presentation, with the exception of historical matters, may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, regarding our
Slide 3: Reconciliation Of Non-GAAP Financial Measurements
Reconciliation Of Non-GAAP Financial Measurements Management believes that certain non-GAAP financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods. Excluding the impact of current exchange rate
Slide 4: Rewarding And Safe Investment Opportunities?
Rewarding And Safe Investment Opportunities? EUR/USD Rate(a) Crude Oil Prices(a) $1.40 $110.00 $1.35 $100.00 $1.30 $90.00 $1.25 $80.00 $1.20 $70.00 $1.15 $60.00 $1.10 $50.00 $1.05 $40.00 $1.00 $30.00 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2013 2014 2014 20
Slide 5: How About Spectrum Brands?
How About Spectrum Brands? Adjusted EBITDA / Margin Performance TTM Net Sales By Division ($ in millions) $945 H&G GAC 10% $801 9% Global Pet $724 $668 $677 Supplies 17% $457 18.5% 17.1% 16.4% 15.8% 15.8% GBA 14.3% 40% HHI FY 11 FY 12 (a) FY 13 (a) FY 14 FY 15 (b) TTM 24% Adjusted Free Cash Flow TTM
Slide 6: Who Is Spectrum Brands?
Who Is Spectrum Brands? A global consumer products company with annualized sales of over $5 billion focused on • non-discretionary consumer products used in households daily • market-leading brands in categories with barriers to entry • delivering superior value to customers and consumers Global Bat
Slide 7: Global Batteries & Appliances Pet, Home
Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Global Auto Care
Slide 8: Agenda
Agenda 1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 9: Strategic Overview & Growth Initiatives
Global Batteries & Appliances Pet, Home & Garden Strategic Overview & Growth Initiatives Hardware & Home Improvement Global Andreas Rouvé Auto Care Chief Executive Officer
Slide 10: Our Vision & Our Organization
Our Vision & Our Organization VISION Be the preferred strategic partner an expanding portfolio of innovative to our customers with ... and superior value consumer products Superior Value Innovation Sales Growth Efficiency from with from Global Regional Shared Operations Sales Services Economies of s
Slide 11: Major Market Challenges
Major Market Challenges Consumer Consumer Better Focus on Informed Value Retailer Speed to Focus on Market Innovation Retailer Retailer Focus on Pressured Direct Sourcing 11
Slide 12: Roadmap To Become A Large Cap Stock
Roadmap To Become A Large Cap Stock 12
Slide 13: Above Market Sales Growth
Above Market Sales Growth More categories into existing retailers Security into NA mass retailers Rawhide into U.S. club channel More channels in existing markets Insect repellent into auto channel Batteries into food/drug and dollar More countries Hearing aid batteries into APAC Pet pro
Slide 14: Continuous Improvement Of Processes
Continuous Improvement Of Processes GAC integration completed ahead of schedule (SAP go-live, International & Shared Services) Significant new U.S. supply chain optimization program under way to deliver additional efficiencies New manufacturing and logistics facility to open in Dayton, Ohio in
Slide 15: Investment Into Improved Manufacturing Capabilities
Investment Into Improved Manufacturing Capabilities $19M investment in new aerosol manufacturing facility in St. Louis Significant annual manufacturing cost savings Working capital reduction from avoiding seasonal pre-build Improves customer service – responsive to unexpected demand Supports
Slide 16: Our Mission
eCnartyiim w WCET UIT Brands Our Mission Build Spectrum Brands into a large cap stock with superior shareholder returns through above market organic growth nwavering focus on building nable free cash flow er acquisitions Accelerated by SpectrumFirst
Slide 17: Agenda
1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 18: Global Auto Care
Global Batteries & Appliances Pet, Home & Garden Global Auto Care Hardware & Home Improvement Global Guy Andrysick Auto Care Sr. Vice President & General Manager
Slide 19: Global Auto Care Overview
Global Auto Care Overview Net Sales By Net Sales by Geography (TTM) Adjusted EBITDA Performance Product Category (TTM) ($ in millions) LATAM Performance 4% APAC 15% 5% EMEA $47 6% Appearance $150 50% Acquired in A/C May 2015 Recharge $89 35% NA 85% (a) FY 14 FY 15 TTM TTM Revenue $449M; TTM Adj. EBI
Slide 20: Global Auto Care - Growth Drivers
Global Auto Care - Growth Drivers Strengthen Core Extend Portfolio Expand Reach Improve Value • Accelerate innovation • Adjacencies • International • Simplified sourcing, distribution and • Drive awareness and • Non-automotive • Alternative channel manufacturing education innovation distribution • L
Slide 21: Reinvesting In Protectants To Drive Growth
Reinvesting In Protectants To Drive Growth Research-Based Improve Consumer National Brand Insights Experience Support • Shopping simulations • Better label communication • Fully integrated 360 campaign • Computer eye-tracking study • Consistent graphic architecture • Multiple consumer touchpoints •
Slide 22: New 2016 Armor All TV Ad
New 2016 Armor All TV Ad Build category awareness Build brand awareness and superiority 22
Slide 23: Innovation And Simplification Driving Core Growth
Innovation And Simplification Driving Core Growth Creation of Product Build category New Innovation All-In-One Charging awareness Enhancements Add And National Brand Segment Value Support 23
Slide 24: New 2016 A/C PRO TV Ad
New 2016 A/C PRO TV Ad Build category awareness Build brand awareness and superiority 24
Slide 25: Expanding The STP Brand
Expanding The STP Brand PROTECT THE INNOVATE EDUCATE CORE Defend our position in Continue to ensure Execute a fully integrated fuel and oil additives product relevancy – traditional and digital meeting the needs of communication plan with today’s changing vehicle a focus on product technology educat
Slide 26: Adjacency Opportunities In The United States
Adjacency Opportunities In The United States Appearance Total U.S. 52 Weeks Ended July 2016: $827M at Retail Armor All STP Protectants Wipes Wheels/Tires Wax/Polish Air Fresheners Competition Under-indexed GAC channels Performance Total U.S. 52 Weeks Ended July 2016: $1.3B at Retail Fuel Additives O
Slide 27: New Product Growth Drivers
New Product Growth Drivers Wash & Wax Wipes Key Consumer Benefits TV Support • One-step wash • DRTV (build awareness and • One-step wax drive trial) • No waiting, no buffing • Social media engagement • Wipe on and enjoy the • Sampling at trade shows, races clean….enjoy the shine! and events 27
Slide 28: Grow Through New Channels And Adjacencies
Grow Through New Channels And Adjacencies RETAIL COMMERCIAL ADJACENCIES Capitalize on growing Channel expansion Expand into Home and segment and deliver through partnership with Hardware with small value-added products for heavy duty diesel engine line passenger cars and light manufacturer and truck
Slide 29: Leverage Retailer POP And Digital Marketing To Target White Space
Leverage Retailer POP And Digital Marketing To Target White Space Displays Point-of-Purchase Retailers & Consumers Online PR & Media 29
Slide 30: Mass Channel Growth Strategy: Consumer Trade-Up
Mass Channel Growth Strategy: Consumer Trade-Up R-134 plus Additives National Advertised Charging Brand Kit R-134 plus Additives Charging Kit Tiered offering R-134a with stepped Charging Kit value proposition R-134a Straight Refrigerant 30
Slide 31: Accelerate International Growth
Accelerate International Growth • Leverage Spectrum Brands scale and distribution • New go-to-market model • Competitive cost structure • Cross-selling Europe Latin America Asia / Pacific 31
Slide 32: What You Can Expect From Global Auto Care
What You Can Expect From Global Auto Care Strong first full year with Spectrum Brands Executing core business growth with advertising and innovation Leveraging Spectrum Brands scale and distribution to accelerate international growth Simplifying supply chain to improve margin and reduce work
Slide 33: Agenda
1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 34: Global Batteries & Appliances
Global Batteries & Appliances Pet, Home & Garden Global Batteries & Appliances Hardware & Home Improvement Global Steve Fraundorfer Auto Care Sr. Vice President & General Manager
Slide 35: Global Batteries & Appliances Overview
Global Batteries & Appliances Overview Net Sales By Net Sales By Geography (TTM) Adjusted EBITDA Performance(a) Product Category (TTM) ($ in millions) Personal APAC $(84) LATAM $(67) Care 4% 25% 13% Batteries NA 42% 44% $327 $307 $306 Small Appliances EMEA 33% 39% FY 14 FY 15 TTM TTM Revenue $2,043M
Slide 36: Battery Distribution Opportunities Expanding With Rayovac
Battery Distribution Opportunities Expanding With Rayovac Into More Channels In North America Total Market: $4.5B Rayovac*: $500M *Alkaline, HD, Rechargeable. Excludes private label Mass DIY Grocery Drug Dollar All Other 31% 9% 16% 9% 7% 28% Rayovac Competition Rayovac Development Opportunity 36 Sou
Slide 37: Additional Battery Distribution Opportunities Expanding With VARTA
Additional Battery Distribution Opportunities Expanding With VARTA Into More Countries In Europe Total Market: $3.5B VARTA*: $485M Alkaline, HD, Rechargeable. Excludes private label DACH SWE BNL UK/IRL EE Nordic (POP 97m) (POP 184m) (POP 28m) (POP 67m) (POP 413m) (POP 25m) VARTA Competition VARTA De
Slide 38: Rayovac Brand Initiatives
Rayovac Brand Initiatives More Investment Into Awareness And Performance Enhance Our Brand Improve Packaging • Leverage our differentiated brand personality • Clarify product performance differences • Contemporize our brand Good Better Best Trade up story on back! Invest In Technology Get The Word O
Slide 39: Rayovac Lights & Portable Power
Rayovac Lights & Portable Power Complement Core Offerings And Drive Brand Awareness Hero Product Launches Media & Market Promotion Indestructible #IndestructibleStories Oprah Magazine ABC news feature Merchandising Online Outreach Review seeding with A+ content Clip strips Counter displays 39
Slide 40: Hearing Aid Batteries Gaining Share In A Growing Market
Hearing Aid Batteries Gaining Share In A Growing Market Aging Population Improved Technology & User Differentiation Est. world population suffering from hearing loss >25 dBHL in both ears (2000 to 2050) Hearing loss increases High rate performance with age High humidity resistance Baby boome
Slide 41: Personal Care And Small Appliances
Personal Care And Small Appliances Delivering Meaningful, Consumer-Focused Innovation Without Compromise 41
Slide 42: Small Electric Appliances Providing Superior Value
Small Electric Appliances Providing Superior Value With Meaningful Innovation Blenders Toaster Ovens New blades shred ice Save time - no into snow preheat Quiet technology Cooks faster Mess-free serving Expert results Hair Care Shave & Groom Better styling Closer shave Longer lasti
Slide 43: Small Electric Appliances Multi-Channel/Country Strategy
Small Electric Appliances Multi-Channel/Country Strategy Enabled By Industrial Design & Technology Toaster Ovens Blenders Mass Department Premium Mass Department Premium Hair Care Shavers Mass Department Premium Mass Department Premium 43
Slide 44: Small Electric Appliances Major Opportunities To Expand
Small Electric Appliances Major Opportunities To Expand Into More Categories Small Appliances Personal Care Core Expansion Expansion 44
Slide 45: E-Commerce
E-Commerce Increased Investment In Digital Marketing To Drive Awareness And Communicate Innovations Accelerate Growth RETAILER.COM Support Online Retail End User Engage, Entertain, Educate 45
Slide 46: What You Can Expect From Global Batteries & Appliances
What You Can Expect From Global Batteries & Appliances Continuous growth from expanding distribution in the U.S. and globally Apply design and technological innovation for price and channel differentiation Broaden product portfolio and expand into adjacent categories Increase digital marketi
Slide 47: Agenda
1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 48: Pet, Home & Garden
Global Batteries & Appliances Pet, Home & Garden Pet, Home & Garden Hardware & Home Improvement Global Randy Lewis Auto Care Sr. Vice President & General Manager
Slide 49: Global Pet Supplies Overview
Global Pet Supplies Overview Net Sales By Net Sales By Geography (TTM) Adjusted EBITDA Performance(a) Product Category (TTM) ($ in millions) $141 Companion RoW $125 Animal 5% $113 64% EMEA 33% NA Aquatics 62% 36% FY 14 FY 15 TTM TTM Revenue $838M; TTM Adj. EBITDA $141M (a) FY14, FY15 and TTM include
Slide 50: An Improved Business Poised For Strategic Growth
An Improved Business Poised For Strategic Growth Improved Integrated Invested Strategies Globally Operationally • Customer and consumer • Global platforms • Capacity and efficiency • Brands and products • Regional teams • Quality and compliance • Categories and channels • Local control • NPD and ins
Slide 51: Strong Portfolio Of Leading Brands
Strong Portfolio Of Leading Brands Premium performing products PET CARE designed to allow pet parents to care for their pets, keeping them healthy and happy Food, Water Care and Equipment Aquatics for animals suitable for an aquarium Rawhide, Clean-Up, Grooming, Chews & Care Healthcare, Accessories
Slide 52: New & Improved Product Growth Drivers
New & Improved Product Growth Drivers Companion Animal Dog & Cat Food Aquatics 52
Slide 53: Pet Channel Opportunities In The United States
Pet Channel Opportunities In The United States Total 2015 U.S. Category: $14B at Retail Pet Specialty Dollar Food Drug Mass All Other Under-indexed Pet Competition Pet Channels 53
Slide 54: Driving Chews & Treats Growth With Brand & Category Leadership
Driving Chews & Treats Growth With Brand & Category Leadership Supplied by owned, scalable Latin America manufacturing • Speed to market • Form factor flexibility • Quality control • FSMA compliant Vertically Integrated Supply Chain 54
Slide 55: Reinventing Nature's Miracle To Drive Growth
Reinventing Nature’s Miracle To Drive Growth Upgrading Resetting Retooling Products Categories Marketing • Overhauling formulations • Expanding distribution • Connecting with new users • Improving communications • Increasing awareness and trial • Telling our “trust” story • Innovating usage and deli
Slide 56: Home & Garden Overview
Home & Garden Overview Net Sales By Net Sales By Geography (TTM) Adjusted EBITDA Performance Product Category (TTM) ($ in millions) $143 RoW 1% $125 Repellents 29% Controls $102 40% NA Household 99% 31% FY 14 FY 15 TTM TTM Revenue $523M; TTM Adj. EBITDA $143M 56 Note: TTM reflects the trailing 12 mo
Slide 57: Strong Portfolio of Recognized Brands
Strong Portfolio of Recognized Brands Pesticides as defined by FIFRA(a) HOME & GARDEN include Insecticides, Herbicides, Fungicides, Repellents & Rodenticides) Outdoor pesticides used to Controls control insects, weeds and animals around the home Indoor pesticides used to Household control insects an
Slide 58: New & Improved Product Growth Drivers
New & Improved Product Growth Drivers Repellents Outdoor Controls Household 58
Slide 59: Home & Garden Channel Opportunities In The United States
Home & Garden Channel Opportunities In The United States Total 2015 U.S. Category: $3.2B at Retail DIY Mass Food Drug Dollar All Other Under-indexed H&G Competition H&G Channels 59
Slide 60: The Answer To Consumer Needs
The Answer To Consumer Needs Give Them MORE of What They Want… -Better Access- -Better Value- -Better Experience- -Better Results- 60
Slide 61: Protecting You And Your Family With Cutter
Protecting You And Your Family With Cutter VALUE VISIBILITY PROMOTION Provide consumers Draw attention at Promote the brand in with value pricing, retail through venues where combo packs and compelling off-shelf consumers are coupon offers displays and looking for protection educational materials 61
Slide 62: Expanding The Black Flag Brand
Expanding The Black Flag Brand STRENGTHEN EXPAND PROMOTE Modernize brand imagery Expand into outdoor Comprehensive and delivery systems to chemicals, with premium traditional and digital reflect premium position efficacy that trades media campaign to drive consumers up awareness for Black Flag and i
Slide 63: Leveraging Spectrum First To Expand Beyond United States Market
Leveraging Spectrum First To Expand Beyond United States Market Initial Launch Strategy: Win With Core Line 2 Brands: RapidRepel (Repellents); Black Flag (Insecticides) Core assortment of drive items Hybrid of U.S.-manufactured and LATAM-sourced Source: Nielsen, Euromonitor, Management Estimat
Slide 64: What You Can Expect From Pet, Home & Garden
What You Can Expect From Pet, Home & Garden Winning with strong brands and a strong innovation engine Leveraging vertically-integrated, lowest-cost supply chain Investing in capacity to drive productivity and growth Consistent history of highly profitable growth in the H&G business Solid i
Slide 65: Agenda
1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 66: Hardware & Home Improvement
Global Batteries & Appliances Pet, Home & Garden Hardware & Home Improvement Hardware & Home Improvement Global Phil Szuba Auto Care Sr. Vice President & General Manager
Slide 67: Hardware & Home Improvement Overview
Hardware & Home Improvement Overview Net Sales By Net Sales By Geography (TTM) Adjusted EBITDA Performance(a) Product Category (TTM) ($ in millions) $238 Builders Hardware LATAM 14% Plumbing & 6% Accessories $226 20% RoW 1% $210 NA 93% Residential Locksets 66% FY 14 FY 15 TTM TTM Revenue $1,244M; TT
Slide 68: Hardware & Home Improvement – Product Categories
Hardware & Home Improvement – Product Categories Security (66%) Plumbing (20%) Hardware (14%) 68
Slide 69: Great Brands, Market-Leading Positions, Compelling Value Propositions
Great Brands, Market-Leading Positions, Compelling Value Propositions Est. 1946 Est. 1901 Est. 1910 Pfister - the people’s choice for great design & #1 U.S. lock brand #1 U.S. Builders Hardware brand quality at the best value Kwikset - Made for the world you live in! National - The most trusted bran
Slide 70: How Our Brands Reach Our Customers And Consumers
How Our Brands Reach Our Customers And Consumers Lumber Yards, Builders, Home Technology Commercial E-commerce Hardware Distributors, Centers Providers Contractors Stores Showrooms Metal Do It Pro Home Modular Yourself Contractor Automation Buildings Sustain & Scale Grow 70
Slide 71: Market-Leading Growth In Electronics And IoT - Locksets
Market-Leading Growth In Electronics And IoT - Locksets Lock 71
Slide 72: Growth – Commercial Hardware Expansion
Growth – Commercial Hardware Expansion 72
Slide 73: Growth – Multifamily And Wholesale
Growth – Multifamily And Wholesale 73
Slide 74: International Growth
International Growth Large Market Opportunity Focused On Americas Situation Focus • Strong anchor brand • Grow Tell retail and • Strong margins wholesale CANADA • Strong Tell growth • Leverage in other brands opportunity with “more, more, more…” • Large, profitable sales base • Continue effective •
Slide 75: Security – Clear Channel Opportunities In The United States
Security – Clear Channel Opportunities In The United States U.S. Residential Security Market: $1.5B DIY DIY Mass Light Tech/IoT Wholesale Branded Private Label Retail Commercial HHI Competition Under-indexed HHI Channels 75
Slide 76: White Space – Extending Share Positions
White Space – Extending Share Positions Private Label E-commerce Technology Commercial Prof. Repair & Remodel DIY Repair & New Construction Home Light Remodel Architects and Automation Commercial Designers 76
Slide 77: Continuous Improvement Drives Value
Continuous Improvement Drives Value Evolving Platform Lowest Cost Keep It Simple High volume vertical 30% Chassis Scalable systems integration harmonization China factory SKU Automation relocation rationalization Philippines cost Non-strategic Spectrum Brands position synergy segments Insourcing 77
Slide 78: What You Can Expect From Hardware & Home Improvement
What You Can Expect From Hardware & Home Improvement Winning with #1 brands and a strong innovation engine Leveraging vertically-integrated, lowest-cost supply chain Growing with strong markets in housing and electronics Growth opportunities in accessible but under-indexed markets Track re
Slide 79: Agenda
1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 80: Financial Overview
Global Batteries & Appliances Pet, Home & Garden Financial Overview Hardware & Home Improvement Global Doug Martin Auto Care Executive Vice President & Chief Financial Officer
Slide 81: We Have A Strong, Well-Balanced Portfolio Of Categories
We Have A Strong, Well-Balanced Portfolio Of Categories TTM Net Sales - $5,098 Million TTM Adjusted EBITDA - $945 Million Corporate H&G -3% 10% GAC 9% GAC 16% Global Pet GBA Supplies 32% 17% H&G 15% GBA 40% HHI Global Pet 24% Supplies HHI 15% 25% The Spectrum Value Model drives adjusted EBITDA growt
Slide 82: Global Shared Services Are Efficient & Scalable
Global Shared Services Are Efficient & Scalable 82
Slide 83: We Drive Sustainable Free Cash Flow And Shareholder Returns
We Drive Sustainable Free Cash Flow And Shareholder Returns Strong and expanding EBITDA Opportunity for further working capital improvement Modest capital requirements Adjusted Free Cash Flow Total Shareholder Return - CAGR: 31%(b) ($ in millions) (a) $505-$515 $137.69 $454 $359 $91.51 $90.53
Slide 84: Anticipated Future Cash Flow Results In Additional Value Creation Flexibility
Anticipated Future Cash Flow Results In Additional Value Creation Flexibility 2016-2018 Operating Cash Flow = ~$2.1 Billion Uncommitted Cash Optionality ($ in millions) Share Repurchases Pay down debt $0.3 Acquisitions Dividends $0.3 Share repurchases Uncommitted Free Cash Flow $1.2 Further
Slide 85: Supporting Growth Through Synergistic Bolt-On Acquisitions
Supporting Growth Through Synergistic Bolt-On Acquisitions Hardware & Global Pet Supplies Home & Garden Global Auto Care Home Improvement Spectrum Brands continually evaluates synergistic, bolt-on acquisitions to expand its product lines, extend market penetration and grow its geographic footprint 8
Slide 86: Successful Track Record Of Delevering After Acquisitions
Successful Track Record Of Delevering After Acquisitions Strong free cash flow used to manage capital structure and drive value Proven integrator – Russell Hobbs, HHI, FURminator, Black Flag/TAT, Tong Lung, Liquid Fence, Tell, Salix, IAMS/Eukanuba, Global Auto Care Fiscal Year-end Total Leverage
Slide 87: We Have A Strong Capital Structure
We Have A Strong Capital Structure Debt/Capital(a) Debt Maturity Schedule(b) 73% ($ in millions) 71% $1,250 69% $1,123 42% 39% 36% $570 $477 9/30/2014 9/30/2015 7/3/2016 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 25 FY 26 FY 27 Total Debt/Capital Total Debt/Market Capital Term Loans Bonds (a
Slide 88: Summary
Summary Stable, non-discretionary product categories Strong innovation pipeline Global infrastructure and investment to support above market growth Strong financial profile Focus on sustainable EBITDA and free cash flow growth 88
Slide 89: Agenda
1. Strategic Overview & Growth Initiatives Andreas Rouvé 2. Global Auto Care Guy Andrysick 3. Global Batteries & Appliances Steve Fraundorfer 4. Pet, Home & Garden Randy Lewis 5. Hardware & Home Improvement Phil Szuba 6. Financial Update Doug Martin 7. Q&A Session All
Slide 90: Spectrum Brands
Spectrum Brands Global Batteries Pet, Home Hardware Global & Appliances & Garden & Home Improvement Auto Care RAYO@VAC Md VARTA @ Russell Hobbs = REMINGTON J QWCo cutter GEORGE FOREMAN = [/TTERMATD =— PROSENSE. = @ END) FORTIS TAF ane gyeetracide @ "PRO RPL TO Gp Kwikse GF WEISER. ZLGH © MARINELAND.
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