XTRA Liquid Detergent 100 127 Oxiclean Powder 100 200 Clumping Litter 100 1061 Spinbrush 100 1341 Orajel 100 122 First Response 100 205 Condoms 100 130 Nair 100 101
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!" # $%& 2 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.” 3 OP OP 4 ! " !" # $%& 5 '()*+ ,- .+ */ 0 6 '()*- .+ */ 0 ($ in millions) 7 8 9 10 2008 2009 2010 11 2010 vs. 2009 Cost Savings +250 bps Other Net +40 bps Commodities -150 bps Pricing/Mix -150 bps Total Gross Margin Change -10 bps 12 13 A&H Liquid Detergent +1.0+1.0 ppts.ts. A&H Clumping Litter +1.9 pts. OxiClean -1.1 pts. Spinbrush +0.4 pts. First Response +1.3 pts. TROJAN +0.1 pts. Nair +0.8 pts. Orajel +0.3 pts. XTRA -0.6 pts. 1 " 2 - #3. " 4#4 &3! 14 M $400.0 $300.0 $200.0 $100.0 $0.0 15 ($ in millions) 12/31/09 12/31/10 Accounts Receivable $222 $231 Inventory $217 $195 Trade A/P ($178) ($206) Working Capital (WC) $261 $220 Cash Conversion Cycle 42 Days 29 Days 16 2007 2008 2009 2010 5 65 5 *6- ./ * 7+ 17 Total Debt / Bank EBITDA 2.7x 2.3x 1.9x 1.6x 0.6x 18 $ MM OP 19 20 Balance Sheet Cash Flow TSR Debt to EBITDA : 0.6x $600 Million EBITDA Run Rate 10 Year: 17.6% Credit Rating: BBB- $330+ Annual FCF 5 Year: 16.7% $500MM Undrawn Bank Lines $1 Billion FCF 2011 to 2013 1 Year: 15.3% $500MM Accordion Feature Target: Top Tier vs. S&P 500 21 *Based on $70.00 share 22 ! " !" # $%& 23 24 25 26 # 8 9# 9 8 ## 27 Buying Households Latest 52 weeks % Chg vs. 52 Weeks Pre-2008 Recession Source: Nielsen Homescan Panel, 52 W/E 6/28/08 vs. 52 W/E12/25/10 28 M Liquid Detergent Price Tiers $ Share of LLD – All-Outlet $ Share of LLD – All-Outlet Calendar Year 2007 Calendar Year 2010 6&%:,;&,+ ),,&< ), =,7 , > 6- 2 > .,&3! ,#@4((* 4A4 9#@4( 4#4 6? ,2 ,&,@",( , * 6* , + 29 M 50.0% 50% 45.0% 40.0% 35% 34% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Value Premium Mid-Tier Nielsen All-Outlet Panel 30 Detergent Manufacturers By Price Tier $ Share of Premium/Mid LLD $ Share of Value LLD Calendar Year 2010 Calendar Year 2010 Source: Nielsen Channel Views, All-Outlet, 52 W/E 12/29/07 vs. 52 W/E 12/25/10 31 Dollar Share of Value Liquids by Manufacturerrer Calendar Year 2007 Calendar Year 2010 Source: Nielsen Channel Views, All-Outlet, 52 W/E 12/29/07 vs. 52 W/E 12/25/10 32 Dollar Share Liquid Detergent Manufacturers Calendar Year Calendar Year 2007 2010 Source: Nielsen Channel Views, All-Outlet, 52 W/E 12/29/07 vs. 52 W/E 12/25/10 33 M 34 Source: Nielsen, All-Outlet FDDMx+BJ’s 6- *2 6)B5R 35 V V FDDMx+BJ’ 6- *2 6)B5RD . " * * 4#4 36 37 ᧹ 38 W 39 Consumers Love Our Products 40 M X Organic Revenue Growth 8 9E 6 #E #E 4 E E 2 0 2006 2007 2008 2009 2010 * Consumer Domestic 41 CHD 2001 – 2010 Marketing Spending Marketing spending has increased from $75MM 14.0% (7.8% NR) to $338MM (13.1% NR). 13.1% 12.1% 11.6% 10.6% 7.8% 8.4% 2001 2003 2005 2007 2008 2009 2010 $75MM $89MM $138MM $257MM $294MM $354MM $338MM 42 Church & Dwight has doubled its marketing spending between 2004 and 2010, and as a result, has significantly outperformed peers in growth in excess of category growth over the same period. Marketing Spend ($MM) “Excess” Growth vs. Categories Organic Category $400 Growth Growth “Excess” Growth $338 Church & Dwight 5.3% 2.8% 2.5% $300 Colgate 7.2% 4.8% 2.4% Avon 6.5% 5.3% 1.2% $200 $161 Kimberly-Clark 4.6% 3.5% 1.1% Clorox 3.7% 3.3% 0.4% $100 P&G 5.2% 4.8% 0.4% Estée Lauder 4.8% 5.3% (0.5%) $0 (1.0%) 2004 2010 Energizer 3.2% 4.2% U.S. Peer Average 5.0% 4.5% 0.5% 43 Source: Company filings, Euromonitor and Wall Street research. CHD Power Brands Beat Category Growth 26 Out of 32 Times from 2007 - 2010 W Source: Nielsen All Outlet YE 2007, 2008, 2009, 2010 44 *FDMx 45 46 CHD Acquired OxiClean in 2006 - #1 Laundry Additive - 27% Market Share C 47 *an’ Stain Fighters Share 38.0% 27.0% 2006 2009 Nielsen FDMxWM, Dollar Share of Stain Fighters 48 G 2007 2008 2009 2009-10 Increased Premium Pretreat Increased Liquid Versatility Pretreat support line extension support emphasis “See it Work “The Best in Stain “Cleaner, Whiter, “Gets tough stains before your Removal” Brighter”” out all around the eyes” home” 49 …And Increased Marketing Spending 400% 500 Annual Marketing Index 450 400 350 300 500 250 200 150 100 50 100 0 2006 2009 50 Source: First Response Actual Yearly Marketing Spending 50 51 More Power Seeks out Clings to In Every Drop! stains in your and breaks wash! down stains 52 Despite the Untimely Death of OxiClean’s Famous Pitchman 53 M Market Share 2009 2010 Change OxiClean 39.9 38.8 -1.1 P&G 10.4 17.5 7.1 Reckitt 15.0 12.3 -2.7 SC Johnson 17.8 17.0 -0.8 " 2 - #3. " 4#4 &3! 54 55 M CHD has transformed from almost totally a U.S. business to more of a global player. 2001 2010 INTERNATIONAL - 2% INTERNATIONALNTERN - 19% 56 2010 vs. 2009 Net Sales +7% Gross Profit +10% Operating Profit +25% 57 2005 vs. 2010 CAGR Net Sales +7% Gross Profit +8% Operating Profit +18% 58 2005 vs. 2010 CAGR Brazil +13% Canada +11% Australia +10% Mexico +6% England +6% France (1)% 59 International Power Brands Leading cosmetic #1 Topical Analgesic Sea water based #1 Nausea Relief tooth whitening in Canada nasal hygiene spray in Canada product in Europe/ sold in 84 countries Australia 60 Key Drivers of Continued Strong Growth Increase scale in our subsidiary companies by: Expanding corporate power brands Focus resources on corporate and international power brands Leveraging ‘one company’ strengths across all functions Enter new markets by: Driving export growth Acquisition 61 62 M 44.8% 44.7% 40.5% 39.1% 36.7% 29.1% 30.0% 2001 2003 2005 2007 2008 2009 2010 63 W SKU’s, 64 The Davies Plant; York, Pennsylvania 65 66 2001 – 2010 SG&A Increased 190 bps Due to International Expansion and Stock Option Expense 2001 2003 2005 2007 2008 2009 2010 67 OP 20.2% 17.1% % 15.5% 14.2% 15.0%* % % % Reckitt C&D Clorox Colgate P&G * Increased 1.5% to make expenses from Marketing to SG&A for Adjusted to beApples-to-Apples comparable. comparison. 68 69 W Numbers taken from last Annual Report for each company. 70 OP 71 72 73 OP 74 W Premium Pregnancy & Ovulation Tests Price/Value Pregnancy & Ovulation Tests 75 Pregnancy/Ovulation Test Category 30 Answer 25 First Response 25.5% 19.1% 20 23.1% 15 7.1% 10 13.4% 11.4% 5 12.0% 7.6% 0 Private Label PfizerPfizer CHD UnipathUnipath Other Abbott 76 Total Pregnancy/Ovulation Test Category 35.8% 7.0% Answer 28.8% 29.6% First Response 18.9% 15.1% +4.2 pts. -0.9 pts. -1.4 pts. -1.9 pts. CHD Private Label Inverness/P&G J&J Source: Nielsen FDMx Q4 2010 77 “6 Days Sooner” Claim “6 Days “Claim & Economic Empathy Programs Pregnancy $ Share More Media “Most Accurate” “Moment” 5 Days Sooner Campaign Project Superiority/ ”Most Accurate Results 5 Days Sooner” Went on TV Increased Media 27.7% +3.1 +1.6 +1.9 +3.6 +2.4 +1.2 +1.6 +1.1 +0.4 +1.9 78 Source: Nielsen FDMx Innovative New Products Strong Claims Trusted By Women For Over 20 Years 79 Marketing Index ($MM) 270 100 Source: First Response Actual Yearly Marketing Spending 80 81 82 83 84 W M W $2,404 $2,521 $2,5899 $2,221 $1,9466 $1,737 $1,462$ $1,057$