WD-40 Company (WDFC) Corporate presentation summary

Business profile and strengths

• 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 a core growth focus.

• Products reach more than 176 countries and territories through 62+ trade channels; ~60% of developed-market product volumes are estimated to be used by professionals in workshops and factories.

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

• 2022 employee engagement survey average was 93.5%; individual results included 98.3% for pride in telling others about employment and 98.1% for understanding how work contributes to goals.

• Steve Brass became CEO effective 9/1/22; Sara Hyzer became CFO effective 11/1/22, succeeding Garry Ridge and Jay Rembolt, respectively.

Strategic priorities and growth aspirations

• Priorities: build a future-ready business, attract and engage talent, improve operational excellence, grow WD-40 Multi-Use Product and Specialist, and expand supporting portfolio opportunities.

• 2025 targets: ~$525M net sales from Multi-Use Product, ~$125M from Specialist and $50M from Strategic Initiative #6; anticipated total revenue target of $650M-$700M.

• Long-term ambition is mid-to-high-single-digit total revenue CAGR; regional targets are 5-8% for Americas, 8-11% for EMEA and 10-13% for Asia-Pacific.

• Four global must-win battles: geographic expansion, premiumization, Specialist growth and digital commerce; estimated global Multi-Use Product opportunity is ~$1B.

• Premiumized products generated $188M, or 47% of Multi-Use Product global sales, at FY22 end; target is >60% of product global sales.

FY22 financial performance

• FY22 reported net sales were $518.8M, up 6% YoY; gross margin was 49.1%, down 490 bps; operating income was $87.3M, down 2%.

• FY22 net income was $67.3M, down 4%, and diluted EPS was $4.90, down 4%; FX reduced net sales by ~$11.6M.

• On a constant-currency basis, FY22 net sales were $527.1M, up 8%; operating income was $88.3M, down 1%, and diluted EPS was $4.96, down 3%.

• Maintenance product revenue reached $485M in FY22; 10-year CAGR was 6.4%, with segment CAGRs of 5.3% for Americas, 7.9% for EMEA and 6.2% for Asia-Pacific.