Agility / Dedication / Innovation Edgewell Personal Care 2017 Annual Report EDGEWELL AT A GLANCE SEGMENT SALES 6% Other Wet Shave 15% Feminine Care KEY BRANDS: KEY GEOGRAPHIES: Schick, Edge, Wilkinson U.S., Japan, Germany, Sword, Skintimate U.K., Canada 19% Sun and Skin Care 60% Wet Shave Sun and Skin Care KEY BRANDS: KEY GEOGRAPHIES: Banana Boat, Hawaiian U.S., Canada, Mexico, Tropic, Wet Ones, Bulldog Australia, U.K. GEOGRAPHIC SALES Feminine Care KEY BRANDS: KEY GEOGRAPHIES: Playtex, Carefree, U.S., Canada Stayfree, o.b. 42% International Infant/Other 58% U.S. KEY BRANDS: KEY GEOGRAPHIES: Playtex, Diaper Genie U.S., Canada FINANCIAL HIGHLIGHTS ($ in millions) 2017 2016 Net Sales 2,298 2,362 Organic Net Sales versus prior year(1) (2.8%) 1.4% Gross Profit Margin 49.2% 49.1% Net Earnings from continuing operations 5.7 178.7 Adjusted Net Earnings(2) 228 213 Diluted EPS from continuing operations (GAAP) $ 0.10 $ 2.99 Adjusted EPS - (Non GAAP)(2) $ 3.97 $ 3.57 In addition to Net Sales and Earnings presented in accordance with generally accepted accounting principles (GAAP), Edgewell has presented certain non-GAAP measures in the table above. These measures should be considered an alternative to, but not superior to or as substitute for, the comparable GAAP measures. (1) Reconciliation of reported Net Sales to Organic Net Sales is included on page 31 of the Company's 10-K for the 2017 fiscal year. (2) Reconciliation of Net Earnings from continuing operations to Adjusted Net Earnings and GAAP EPS to Non-GAAP EPS is included on page 30 of the Company's 10-K for the 2017 fiscal year. Edgewell Personal Care 2017 Annual Report 1 To our shareholders, investors, customers and colleagues: Two years after our successful The fiscal 2017 results: We delivered consistently over time, launching launch as an independent consumer 11 percent growth in adjusted earnings compelling product innovations that products company, the Edgewell per share and expanded our adjusted serve and excite customers. team is competing well, building on operating margin by 60 basis points, Wet Shave is a particularly exciting our foundation of strong brands, both in line with our long-term financial story of innovation and market agility. compelling innovation and disciplined algorithm. Unfortunately, reflecting Continued upgrades in product design financial management. intense category changes, organic and packaging for our Schick Hydro net sales were down for the year with Silk® and Xtreme3® brands, and the Our performance comes in the face declines in Wet Shave and Feminine Care. launch of Quattro You®, have yielded of difficult market headwinds: category Our team’s commitment to gains in sales and market share. declines; digital transformation that has Edgewell’s strategy, however, has driven Edgewell also demonstrated the shifted consumers’ buying patterns; market share growth on a 52-week power of its unique positioning in and unprecedented competitive basis across every category in Manual Wet Shave as the only company with intensity. Our results reflect this difficult Shave — men’s and women’s systems exceptional products in men’s and environment. Yet the strategy we and disposables. Meanwhile, organic women’s shaving systems, disposable designed at the launch of Edgewell has net sales grew 3.2 percent in Sun razors and private label shaving. served us well, giving us the tools to and Skin Care, propelled in part by For example, we brought value and compete — even in a difficult year — and 14 percent organic growth in our comfort to consumers in Europe position ourselves for the long term. international markets. and the United States by introducing Given the difficult environment in the private label cartridges built to fit categories in which we compete — with handles from a leading Edgewell unprecedented pricing and promotional competitor in the segment. activity in the marketplace — we’re In Feminine Care, the introduction proud of our market share, brand, of Playtex® Sport® Compact — the “most product and business resilience. It’s compact” compact tampon — represents GLOBAL MARKET SHARE INCREASE (VALUE) the result of the culture we have a major step forward for this brand in a cultivated, a culture in which all team very challenging product category. members understand how they can move Meanwhile, our leadership in Sun the business forward by supporting and Skin Care was evident as Edgewell the three pillars of Edgewell’s strategy — launched four of the top five new Focus on the Fundamentals; Reconfigure products in Sun Care in the United Men's Systems into Growth Opportunities; and Fuel States, according to Nielsen. Those Growth and Margin Expansion. products include innovations such ® Women's Systems as Hawaiian Tropic Weightless Face Sunscreen—providing ultra-light UV Focusing on the Fundamentals protection with 12 hours of moisturizing Disposable Razors benefit — and Banana Boat® Dry Edgewell’s brands are its lifeblood. Balance®, a broad UV protection Sun and Skin Care Some, like Wilkinson Sword® and formula that goes on dry and fresh. Schick®, have endured for generations, On the strength of this innovation, we while others are relative newcomers grew both net sales and market share in to the marketplace. Across the board, Sun and Skin Care in North America in Source: Edgewell Personal Care Custom Nielsen Databases; xAOC – 52 week data through end of fiscal year 2017 delivery. we are focused on building our brands fiscal 2017. 2017 Annual Report 2 Edgewell Personal Care SERVING NEW NEEDS. Launched Hawaiian Tropic® Weightless Face, a 12-hour moisturizing UV protector with an ultra-light feel, and Banana Boat® Dry Balance®, sun protection that goes on dry and fresh. REACHING NEW MARKETS. Positioned for e-retail growth with a new Amazon splash page; new flagship store on China’s Tmall; and SchickHydro.com, with Schick Hydro Connect® refills for Gillette® handles. Entered Europe with “Fits Mach3®” private label razors.* SATISFYING NEW LIFESTYLES. At 30 percent of the size of conventional tampons, Playtex® Sport® Compact became the “most compact” product on the market, a major step forward for the brand. *Schick Hydro Connect® is not manufactured or distributed by The Gillette Company LLC. Gillette®, Fusion® and Mach3® are registered trademarks of The Gillette Company LLC. Edgewell Personal Care 2017 Annual Report 3 Reconfiguring into Growth Opportunities ® 2016 acquisition of the Bulldog brand BULLDOG SKIN CARE of skin care products made specifically With a rising focus on e-retail, digital for men. From a strong position in and international, our markets and the United Kingdom, where Bulldog’s categories are evolving rapidly. We are share grew from 14 percent to investing to capitalize on these growth 15.3 percent after Edgewell took opportunities, recognizing the rapid over, our teams have moved quickly change in the consumer products to expand the brand’s footprint in the world, where growth requires more United States and internationally. than mere mastery of the fundamentals. We’ve entered markets in Germany We measure this year's progress and The Netherlands; Bulldog® is not only in terms of sales and share, No. 1 in Sweden and already holds a but also in terms of organization, where solid position in South Korea. we established a center of excellence Bulldog® is just one example of for e-commerce. our strong track record of growing We launched SchickHydro.com in internationally, not only by introducing the spring, providing offers unavailable new products to market, but by from any other direct-to-consumer site introducing existing brands to new or retailer. Visitors can order unique markets. For example, this year purchases or subscribe to regular Edgewell introduced Hydro Connect shipments of razor cartridges in the for Men in Italy and Central Europe quantity and frequency that works and extended our Sun Care franchise for them — going head-to-head in Spain with the launch of the Banana with the shaving clubs. They can also Boat® brand, joining Hawaiian Tropic® sample the Hydro® razor line by in the market. The result: Share growth ordering our 3-blade or 5-blade internationally in Wet Shave and Sun cartridge systems that fit either Mach3® and Skin Care. or Fusion® h a n dl e s*. A large part of e-retail growth will come from pure-play online retailers Fueling Growth and Margin Expansion such as Amazon, where we have upgraded our landing page to better As I indicated earlier, Edgewell’s success highlight our products and offerings. depends on the dedication of its team Meanwhile, in March, we launched our members and their understanding of ESTIMATED FISCAL YEAR Tmall flagship store in China, where their role in making Edgewell a success. RESTRUCTURING AND ZBS SAVINGS e-commerce penetration is higher Our colleagues are driving cost savings ($ in millions) than anywhere in the world and will and increased productivity through continue to grow. every part of our business, allowing $20 Although these businesses are still Edgewell to invest in our brands, grow $40 small, we made significant progress. profit and expand margins for our For the full year, total e-commerce shareholders, and improve the return $30 net sales were up 45 percent and we on our investments and spending. gained share for the third consecutive In 2017, our teams delivered $20 $22 year. In China, total e-commerce and million in net savings as part of our zero- $20 brick-and-mortar sales increased nearly based spending (ZBS) initiative—well $15 15 percent as we gained share as well. above our goal of $10-$15 million. That $10 In addition to e-retail, we continue initiative has realized savings through to recognize M&A as another route advertising agency fee reductions; to growth — a strategy that showed changes to travel policies; reductions in 2016 2017 2018P immediate results in the November facilities and lease costs; streamlining • Restructuring Savings • ZBS Savings *3-blade cartridges fit Mach3® handles.