WD-40 Company (WDFC) Corporate presentation summary

Business profile

• 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.

• Product volumes are estimated at ~60% professional use in workshops and factories and 40% home use; products reach >176 countries and territories through 62 trade channels.

• Maintenance product sales grew at a 5.8% CAGR over FY12-FY21; FY21 sales were $448.8M, with prior years shown on a constant-currency basis using FY21 exchange rates.

• The stated brand advantage centers on recognizable packaging and perceived quality and reliability; the WD-40 Multi-Use Product formula remains a trade secret.

Strategy and growth aspirations

• Six strategic initiatives include building for the future, engaging tribe members, operational excellence, growing WD-40 Multi-Use and Specialist, and supporting portfolio opportunities.

• 2025 revenue ambition is $650M, with an aspiration to reach the higher end of the target range at $700M; historical revenue is unadjusted for FX changes.

• 2025 initiative targets are ~ $525M in WD-40 Multi-Use sales, ~ $125M in Specialist sales, and $50M from portfolio opportunities.

• Segment CAGR targets are 5-8% for Americas, 8-11% for EMEA and 10-13% for Asia-Pacific; total growth target is mid- to high-single digits.

• Key growth levers include geographic expansion, premiumization, Specialist penetration and digital commerce; the estimated global WD-40 Multi-Use opportunity is ~$1.0B.

FY21 financial performance

• FY21 net sales were $488.1M, up 19% YoY; gross margin was 54.0% versus 54.6%, operating income $88.8M, net income $70.2M and diluted EPS $5.09.

• On a constant-currency basis, FY21 net sales were $468.4M, up 15%; operating income rose 9% to $84.3M, net income 10% to $66.6M and diluted EPS 10% to $4.83.

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

• FY21 reported net sales growth reflected elevated renovation and maintenance activity, market recoveries and increased e-commerce distribution and sales.