Starboard Value Activist Presentation Deck | Slidebook.io

Starboard Value Activist Presentation Deck

October 2024, 71 slides

active passive investor summit | Starboard Value

disclaimer | Starboard Value

if you have a headache you likely to take | Starboard Value

if you have allergies you likely to take | Starboard Value

or you might take ich pet ary i tablets | Starboard Value

if you have a minor cut you ask for a band aid | Starboard Value

and you also likely to use | Starboard Value

when you think of mouthwash you think of | Starboard Value

and are household skin care brands | Starboard Value

collectively these are among the most well known and widely used consumer health brands band aid baby | Starboard Value

but what you might not know is all of these brands are owned by the same company | Starboard Value

be | Starboard Value

was recently created through the spin of and consumer health business | Starboard Value

we believe the separation had substantial merit as consumer health is a fundamentally different business from core | Starboard Value

management astutely recognized the differences between consumer health and its core businesses leading to its separation | Starboard Value

in summary we believe the consumer health separation had tremendous merit and liberated a great business with amazing brands consumer health is a fundamentally different business from consumer health was not the priority | Starboard Value

consumer health made up a smaller and smaller mix of overall business over time | Starboard Value

operates three segments with an impressive portfolio of brands that is impossible to replicate gena i so i band aid | Starboard Value

we believe brands compare favorably to a ady speed aes band aid a | Starboard Value

we believe brands compare favorably to band aid | Starboard Value

we believe brands compare favorably to band aid crest fide sie campers | Starboard Value

we believe brands compare favorably to church band aid res | Starboard Value

we believe brands compare favorably to band aid iss | Starboard Value

we believe brands compare favorably to clark woon band aid | Starboard Value

categories are also more defensible than peers with less threat from private label alternatives clark peg | Starboard Value

lastly categories are also supported by attractive end markets | Starboard Value

given its strong brands in attractive categories where would you expect is valued relative to its peers | Starboard Value

trades at a valuation discount to peers | Starboard Value

share price performance since its spin has been frustrating on | Starboard Value

has great brands and its separation from made perfect sense but its share price has since its why | Starboard Value

prior to the spin grew than its underlying markets | Starboard Value

and following the spin growth missed expectations even after lowering guidance | Starboard Value

looking forward organic growth is expected to continue lagging its peer group | Starboard Value

still even accounting for lower growth outlook the company valuation discount appears excessive | Starboard Value

which we believe presents an opportunity as the company renewed focus should result in more consistency and credibility | Starboard Value

with even greater upside potential as increased focus translates into better execution | Starboard Value

although consolidated growth has fallen short individual segment performance has varied | Starboard Value

self care segment has performed extremely well coll | Starboard Value

the essential health segment also performed well in band aid aby | Starboard Value

the problem opportunity lies in skin health and beauty | Starboard Value

importantly skin health and beauty growth has weighed on consolidated organic growth | Starboard Value

notably skin health and beauty lackluster growth is a specific issue as its peers have grown nicely | Starboard Value

skin health and beauty margins have also declined | Starboard Value

skin health and beauty margins now trail peers | Starboard Value

given strong underlying fundamentals why has the company and skin health and beauty in particular | Starboard Value

we believe skin health beauty issues trace back to its prior ownership and will now be addressed that is an independent company | Starboard Value

skin health and beauty is a fundamentally different business than core business | Starboard Value

at its core businesses depend on long cycle rigorous and extremely expensive | Starboard Value

unlike skin health and beauty which depends more on marketing and faster product cycles | Starboard Value

as an independent company we believe has the potential to significantly improve the struggling skin health and beauty segment but it must embrace a new marketing driven culture | Starboard Value

and remain highly regarded brands | Starboard Value

skin health and beauty is a priority for management | Starboard Value

improved focus and resource allocation is evidenced by its increasing advertising spend | Starboard Value

critically the company appears to have embraced a marketing first mentality for its skin health and beauty focused on social media | Starboard Value

recent collagen bank launch highlights marketing first mentality as well as on trend product innovation | Starboard Value

case study highlights the importance of social media marketing for skin health and beauty success | Starboard Value

case study highlights the importance of social media marketing for skin health and beauty success | Starboard Value

case study highlights the importance of social media marketing for skin health and beauty success a a | Starboard Value

summary | Starboard Value

we believe can improve performance specifically within its skin health and beauty business | Starboard Value

we believe a revitalized skin health and beauty can improve its organic growth rate to at least industry growth rates | Starboard Value

resulting in improved consolidated growth | Starboard Value

we believe consistent execution along with improved growth is likely to result in an improved multiple in line with peers | Starboard Value

in addition skin health and beauty should also be able to return to margins which would be in line with peers | Starboard Value

restoring skin health and beauty margins would also improve consolidated margins to best in class | Starboard Value

collectively we believe current valuation presents a compelling investment opportunity with asymmetric upside potential | Starboard Value

| Starboard Value

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