WD-40 Company (WDFC) Corporate presentation summary

Strategic positioning

• Maintenance products represent >90% of net sales and are the primary growth engine; homecare and cleaning brands serve niche segments and are under strategic review.

• Products are available in >176 countries and territories and >62 trade channels; an estimated ~70% of developed-market product volume is used by professionals.

• Core capabilities span brand, end-user loyalty, culture and distribution, reinforced by global scale, learning velocity and a long-term horizon.

• Strategic priorities include pivoting toward a sustainable future, learning faster to grow faster and realizing emerging-market potential.

Growth strategy

• Long-term segment CAGR targets: Americas 5–8%, EMEA 8–11% and Asia-Pacific 10–13%; total growth target is mid- to high-single digits.

• Four growth priorities: geographic expansion of WD-40 Multi-Use Product, premiumization, WD-40 Specialist growth and digital commerce.

• Estimated global opportunity for WD-40 Multi-Use Product is ~$1B.

• FY22 premiumized products generated $188M, or 47% of WD-40 Multi-Use Product global sales; target is >60%.

• WD-40 Specialist Degreaser and Cleaner EZ-Pods offer concentrated industrial-strength formula and recyclable packaging; available in the United States.

Financial performance and targets

• FY22 net sales were $518.8M, up 6%; gross margin was 49.1%, down 490 bps; operating income was $87.3M, net income $67.3M and diluted EPS $4.90.

• FY22 FX changes reduced net sales by ~$11.6M; at FY21 exchange rates, sales were $530.4M versus $518.8M reported.

• Maintenance product net sales reached $485M in FY22; 10-year constant-currency CAGR was 6.4%, with regional CAGRs of 5.3% Americas, 7.9% EMEA and 6.2% Asia-Pacific.

• YTD FY23 gross margin was 51%, cost of doing business 33% and EBITDA 18%, versus targets of 55%, 30% and 25%, respectively.

• FY23 guidance was reiterated at 3.5–7.5% sales growth, $535–560M net sales, 51–52% gross margin, $64.5–68.5M net income and $4.80–5.00 diluted EPS; management expected results toward the lower end.