WD-40 Company (WDFC) Corporate presentation summary

Portfolio and market position

• Maintenance products account for >90% of net sales and are the core strategic focus; homecare and cleaning brands provide healthy profit returns but are not core.

• Products reach more than 176 countries and territories through over 62 trade channels; estimated usage is 60% by professionals and 40% in homes.

• US multi-purpose lubricant market-share proxy: WD-40 Multi-Use Product held 57% among work users and 79% among home users, based on 2019 data.

Growth strategy

• Must-win battles: geographic expansion, premiumization, WD-40 Specialist growth and digital commerce.

• Estimated global WD-40 Multi-Use Product opportunity is ~$1.0B; premiumized products were 49% of global sales at FY21-end, with a target of >60% Smart Straw penetration.

• 2025 product targets: ~$525M net sales for WD-40 Multi-Use Product, ~$125M for WD-40 Specialist and $50M from portfolio opportunities.

• 2025 revenue aspiration is $650M-$700M; segment CAGR targets are 5-8% Americas, 8-11% EMEA and 10-13% Asia-Pacific.

• Maintenance product revenue grew at a 5.8% 10-year CAGR through FY21; segment CAGRs were 4.5% Americas, 7.0% EMEA and 6.6% Asia-Pacific.

FY21 financial performance

• FY21 net sales were $488.1M, up 19%; gross margin was 54.0% versus 54.6%, operating income rose 15% to $88.8M, and net income rose 16% to $70.2M.

• Diluted EPS was $5.09, up 16%; on a constant-currency basis, FY21 net sales rose 15% to $468.4M and operating income rose 9% to $84.3M.

• Foreign exchange changes increased FY21 net sales by ~$17.5M, including a $19.7M transaction impact and a -$2.2M translation impact.

• The 55/30/25 model targets gross margin above 55%, cost of doing business at 30% and EBITDA at 25%; FY21 actuals were 54%, 35% and 20%, respectively.