| The Clorox Company | 
|
SupplementalInformation –VolumeGrowth
| | % Change vs. Prior Year | |
| Reportable Segments | FY12 | FY13 | MajorDrivers ofChange |
| | Q1 | Q2 | Q3 | Q4 | FY | Q1 | YTD | |
| Cleaning(1) | -1% | 0% | 7% | 5% | 2% | 4% | 4% | Q1 increase primarily driven by higher shipments in the Professional Products business, primarily due to acquisitions and base business growth; and record shipments of Clorox® Disinfecting Wipes. |
| Household | 5% | 1% | 2% | -2% | 1% | -7% | -7% | Q1 decrease primarily due to lower shipments of Kingsford® Charcoal and Cat Litter due to price increases. |
| Lifestyle(2) | 5% | 2% | 4% | 2% | 3% | -1% | -1% | Q1 decrease primarily due to lower shipments of KC Masterpiece® and Brita®. |
| International(2) | 4% | -1% | 1% | 3% | 2% | -2% | -2% | Q1 decrease primarily due to the exit of non-strategic export businesses. |
| Total Company | 2% | 0% | 4% | 2% | 2% | -1% | -1% | |
SupplementalInformation –SalesGrowth
| | % Change vs. Prior Year | |
| Reportable Segments | FY12 | FY13 | MajorDrivers ofChange |
| | Q1 | Q2 | Q3 | Q4 | FY | Q1 | YTD | |
| Cleaning(1) | -2% | 5% | 10% | 7% | 5% | 8% | 8% | Q1 variance between changes in volume and sales was driven by the benefit of price increases. |
| Household | 3% | 4% | 6% | 3% | 4% | -3% | -3% | Q1 variance between changes in volume and sales was driven by the benefit of price increases. |
| Lifestyle(2) | 6% | 6% | 10% | 3% | 6% | 1% | 1% | Q1 variance between changes in volume and sales was driven by the benefit of price increases. |
| International(2) | 10% | 0% | 4% | 3% | 4% | 3% | 3% | Q1 sales growth is due to the benefit of price increases, offsetting unfavorable foreign currency exchange rates. |
| Total Company | 3% | 4% | 7% | 4% | 5% | 3% | 3% | |
| (1) | | The Cleaning reportable segment includes the December 2011 acquisitions of HealthLink and Aplicare, Inc. |
| | |
| (2) | | Beginning in Q4 fiscal year 2012, Natural Personal Care results outside of the U.S. are being reported in the International reportable segment rather than the Lifestyle reportable segment. Historical segment financial information presented has been recast to reflect this change. |
| The Clorox Company |
|
SupplementalInformation –Gross Margin Drivers
The table belowprovides details on the drivers of grossmarginchange versus the prior year.
| Gross Margin Change vs. Prior Year (basis points) |
| Driver | FY11 | FY12 | FY13 |
| FY | Q1 | Q2 | Q3 | Q4 | FY | Q1 |
| Cost Savings | +170 | +160 | +180 | +160 | +150 | +160 | +170 |
| Price Changes | +80 | +170 | +240 | +250 | +230 | +220 | +160 |
| Market Movement (commodities)(1) | -160 | -320 | -240 | -200 | -110 | -220 | -10 |
| Manufacturing & Logistics(1) | -30 | -220 | -170 | -200 | -140 | -180 | -70 |
| All other(2) | -140 | -40 | -30 | -190 | -210 | -120 | -140 |
| | | | | | | | |
| Change vs prior year | -80 | -250 | -20 | -180 | -80 | -140 | +110 |
| Gross Margin (%) | 43.5% | 41.8% | 41.5% | 42.3% | 42.7% | 42.1% | 42.9% |
| (1) | | Market Movement (commodities) beginning in Q1 FY13 includes the change in the cost of diesel fuel. In FY11 and FY12, the change in the cost of diesel fuel is included in Manufacturing & Logistics. |
| (2) | | Other in Q1 FY13 includes -60 bps each for both other supply chain costs and product mix. |
| The Clorox Company |
|
Earnings From Continuing Operations Before Interest and Taxes (EBIT),
Earnings From Continuing Operations Before Interest, Taxes, Depreciation and
Amortization (EBITDA)(1)
Reconciliation of earnings from continuing operations before income taxes to EBIT and EBITDA
Dollars in millions and percentages based on rounded numbers
| FY2012 | | | FY 2013 |
| | | | | | | | | | | | | | | | | | | | | | |
| Q1
9/30/11 | | Q2
12/31/11 | | Q3
3/31/2012 | | Q4
6/30/12 | | FY
6/30/12 | | | Q1
9/30/12 |
| | |
| Earnings from continuing | | | | | | | | | | | | | | | | | | | | | | |
| operations before income taxes | $ | 187 | | | $ | 155 | | | $ | 198 | | $ | 251 | | | $ | 791 | | | | $ | 194 |
| Interest income | | (1 | ) | | | (1 | ) | | | - | | | (1 | ) | | | (3 | ) | | | | - |
| Interest expense | | 29 | | | | 30 | | | | 33 | | | 33 | | | | 125 | | | | | 33 |
| EBIT(2) | | 215 | | | | 184 | | | | 231 | | | 283 | | | | 913 | | | | | 227 |
| EBIT margin(2) | | 16.5% | | | | 15.1% | | | | 16.5% | | | 18.4% | | | | 16.7% | | | | | 17.0% |
| Depreciation and amortization | | 46 | | | | 43 | | | | 44 | | | 45 | | | | 178 | | | | | 44 |
| EBITDA(3) | $ | 261 | | | $ | 227 | | | $ | 275 | | $ | 328 | | | $ | 1,091 | | | | $ | 271 |
| EBITDA margin(3) | | 20.0% | | | | 18.6% | | | | 19.6% | | | 21.3% | | | | 20.0% | | | | | 20.3% |
| Net sales | $ | 1,305 | | | $ | 1,221 | | | $ | 1,401 | | $ | 1,541 | | | $ | 5,468 | | | | $ | 1,338 |
| (1) | | In accordance with SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management believes the presentation of EBIT, EBIT margin, EBITDA and EBITDA margin provides additional useful information to investors about current trends in the business. |
| | |
| | Note: The Company calculates EBITDA for compliance with its debt covenants using net earnings for the trailing four quarters, as contractually defined. |
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| (2) | | EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income and interest expense, as reported above. EBIT margin is a measure of EBIT as a percentage of net sales. |
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| (3) | | EBITDA (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income, interest expense, depreciation and amortization, as reported above. EBITDA margin is a measure of EBITDA as a percentage of net sales. |
| The Clorox Company |
|
Supplemental Information – Balance Sheet
(Unaudited)
As of September 30, 2012
Working Capital Update
| Q1 | | | | |
| FY 2013 | FY 2012 | Change | Days(5) | Days(5) | |
| ($ millions) | ($ millions) | ($ millions) | FY 2013 | FY 2012 | Change |
| Receivables, net | $503 | | $439 | | +$ | 64 | 36 | 33 | +3 days |
| Inventories, net | $421 | | $407 | | +$ | 14 | 47 | 47 | -- |
| Accounts payable(1) | $388 | | $357 | | +$ | 31 | 45 | 45 | -- |
| Accrued liabilities | $458 | | $434 | | +$ | 24 | | | |
| Total WC(2) | $205 | | $140 | | +$ | 65 | | | |
| Total WC % net sales(3) | 3.8 | % | 2.7 | % | | | | | |
| Average WC(2) | $202 | | $127 | | +$ | 75 | | | |
| Average WC % net sales(4) | 3.8 | % | 2.4 | % | | | | | |
- Receivables increased due to higher sales and timing of receipts.
- Accounts Payable increased due to higher capital spending for infrastructure investments.
- Accrued liabilities increased due to higher trade-promotion spending accruals.
Supplemental Information – Cash Flow
(Unaudited)
For the quarter ended September 30, 2012
Capital expenditures for the first quarter were $54 million versus $37 million in the year-ago quarter
Depreciation and amortization for the first quarter was $44 million versus $46 million in the year-ago quarter
Net cash provided by operations in the first quarter was $208 million, or 16 percent of sales.
| (1) | | Days of accounts payable is calculated as follows: average accounts payable / [(cost of products sold + change in inventory) / 90]. |
| (2) | | Working capital (WC) is defined in this context as current assets minus current liabilities excluding cash, assets held for sale, and short-term debt, based on end of period balances. Average working capital represents a two-point average of working capital. |
| (3) | | Represents working capital at the end of the period divided by annualized net sales(current quarter net sales x 4). |
| (4) | | Represents a two-point average of working capital divided by annualized net sales(current quarter net sales x 4). |
| (5) | | Days calculations based on a two-point average. |
The Clorox Company
Updated: 10-31-12 |
|
U.S. Retail Pricing Actions from CY2008 - CY2012
| Brand / Product | Average Price Change | | Effective Date |
| Home Care | | | | | |
| Pine-Sol®cleaners | | +13 | % | | May 2008 |
| Clorox Clean-Up®cleaners | | +8 | % | | August 2008 |
| Formula 409®, Tilex®, and Clorox®Disinfecting Bathroom cleaners | | +12 | % | | August 2008 |
| Liquid-Plumr®products | | +9 | % | | August 2008 |
| Clorox®Toilet Bowl Cleaner and Clorox®ToiletWandTMproducts | | +8 to +13 | % | | August 2008 |
| Green Works®cleaners | | -7 to -21 | % | | May 2010 |
| Formula 409® | | +6 | % | | August 2011 |
| Clorox Clean-Up®cleaners | | +8 | % | | August 2011 |
| Clorox®Toilet Bowl Cleaner | | +5 | % | | August 2011 |
| Liquid-Plumr®products | | +5 | % | | August 2011 |
| Pine-Sol®cleaners | | +17 | % | | April 2012 |
| Laundry | | | | | |
| Clorox®liquid bleach | | +10 | % | | August 2008 |
| Green Works®liquid detergent | | approx. -30 | % | | May 2010 |
| Clorox®liquid bleach | | +12 | % | | August 2011 |
| Clorox 2®stain fighter and color booster | | +5 | % | | August 2011 |
| Glad | | | | | |
| Glad®trash bags | | +7 | % | | February 2008 |
| GladWare®disposable containers | | +7 | % | | February 2008 |
| Glad®trash bags | | +10 | % | | October 2008 |
| Glad®trash bags | | -10 | % | | December 2008 |
| GladWare®disposable containers | | -7 | % | | April 2009 |
| Glad®trash bags | | -7 | % | | May 2009 |
| Glad®trash bags | | +5 | % | | August 2010 |
| Glad®trash bags | | +10 | % | | May 2011 |
| Glad®wraps | | +7 | % | | August 2011 |
| Glad®food bags | | +10 | % | | November 2011 |
| GladWare®disposable containers | | +8 | % | | July 2012 |
| Litter | | | | | |
| Cat litter | | +7 to +8 | % | | August 2008 |
| Cat litter | | -8 to -9 | % | | March 2010 |
| Cat litter | | +5 | % | | May 2012 |
| Food | | | | | |
| Hidden Valley Ranch®salad dressing | | +7 | % | | August 2008 |
| Hidden Valley Ranch®salad dressing | | +7 | % | | August 2011 |
| Charcoal | | | | | |
| Charcoal | | +6 | % | | January 2008 |
| Charcoal and lighter fluid | | +7 to +16 | % | | January 2009 |
| Charcoal and lighter fluid | | +8 to 10 | % | | January 2012 |
| Brita | | | | | |
| Brita®pitchers | | +3 | % | | August 2011 |
| Brita®pitchers and filters | | +5 | % | | July 2012 |
Notes:
- Individual SKUs vary within the range.
- This communication reflects pricing actions on primary items, and does not reflect pricing actions on our Professional Products business.
