Slides
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CAGNY 2026 Linda Rendle Chair & Chief Executive Officer Luc Bellet EVP & Chief Financial Officer
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Safe Harbor Except for historical information, matters discussed in this presentation, including statements about the success of the Company’s future volume, sales, costs, cost savings, earnings, earnings per share, including as a result of the GOJO acquisition, foreign currency exchange rates, cash flows, plans, objectives, expectations, growth or profitability, are forward-looking statements based on management’s estimates, assumptions and projections. Important factors that could affect performance and cause results to differ materially from management’s expectations are described in the Company’s most recent Form 10-K filed with the SEC, as updated from time to time in the Company’s SEC filings. Those factors include, but are not limited to, occurrence of any event, change or other circumstance related to the planned GOJO acquisition (termination of the acquisition agreement; failure to satisfy closing conditions, including regulatory approvals; integration and financing risks; failure to realize expected benefits; unexpected costs or litigation; business disruption or loss of key relationships; potential credit rating changes; and adverse impacts on operating results or stock price); unfavorable macroeconomic and geopolitical conditions (including inflation, tariffs and trade tensions, supply chain disruptions, labor shortages and wage pressures, commodity and energy cost volatility, foreign exchange fluctuations, conflicts and disease outbreaks/pandemics); market and category declines and changes in product or geographic mix; intense competition and evolving retail channels and consumer preferences; volatility in raw material, transportation and other input costs; supply chain dependencies and single-source supplier risks; cybersecurity, data privacy and IT system disruptions; failure to successfully execute strategic or transformational initiatives (including ERP transition), including related process changes and impacts to internal controls over financial reporting, or realize anticipated benefits; regulatory, tax, environmental and governmental actions; reputational harm, product liability or other legal proceedings; customer concentration and talent attraction and retention challenges; risks related to the company's acquisition of The Procter & Gamble Company's interest in, and the continued operation of, the Glad business; risks related to international operations and political instability; acquisition, divestiture and integration risks (including with respect to the planned GOJO acquisition); reliance on third-party service providers; financial market volatility, indebtedness and credit rating impacts; intellectual property risks; climate and sustainability impacts; and potential stockholder activism. We undertake no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, except to the extent required by law and we make no representation, express or implied, that the information is still current or complete. The Company may also use non-GAAP financial measures, which could differ from reported results using Generally Accepted Accounting Principles (GAAP). The most directly comparable GAAP financial measures and reconciliation to non-GAAP financial measures are set forth in the Supplemental Schedules of the Company’s quarterly financial results and in the Company’s SEC filings, including its Form 10-K and its exhibits furnished to the SEC, which are posted at TheCloroxCompany.com in the Investors/Financial Information/Quarterly Results and SEC Filings sections, respectively.
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• Advantaged portfolio of superior value brands in essential categories supported with continued investment • We are transforming into a faster growing, more resilient company by modernizing our capabilities – personalization, holistic margin management, revenue growth management, innovation, omni channel, social first • Confident in our ability to deliver consistent profitable growth over time and create long-term shareholder value Well-Positioned to Continue to Build Earnings & Create Long-Term Shareholder Value
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Who We Are
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Global Portfolio of Leading Brands Trusted & Loved by Consumers 100+ MARKETS GLOBALLY 60% OF PORTFOLIO HAS SUPERIOR CONSUMER VALUE* 38% 18% 28% 15% HEALTH & WELLNESS HOUSEHOLD LIFESTYLE INTERNATIONAL $7.1B FY25 NET SALES 80% OF SALES FROM BRANDS THAT ARE NO. 1 OR NO. 2 IN CATEGORIES Results from fiscal year 2025. The balance for net sales is included in Corporate and Other. *As measured by our consumer value metric.
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Choiceful, Disciplined Playbook Creates Competitive Advantage, Superior Consumer Value, & Shareholder Value Leading brands loved by consumers Purposeful & targeted in where we play Purpose-driven growth World class capabilities to drive operational excellence ECONOMIC PROFIT
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#1 or #2 Brands in Majority of Categories(1) Portfolio of Leading Brands with Superior Consumer Value (1) About 80% of the Company's sales are generated from brands that hold the No. 1 or No. 2 market share position in their categ ories. SOURCE: Circana Latest 52 weeks ending June 29, 2025.
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IGNITE Creates a Resilient, Faster-Growing Company Deliver Sales Growth of Expand Adj. EBIT Margin by Generate Free Cash Flow of 3 to 5% +25 to 50bps 11 to 13% Adjusted EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income, interest expense and other significant items that are nonrecurring or unusual. Adjusted EBIT margin is a measure of Adjusted EBIT as a percentage of net sales.
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IGNITE Strategy Choices Innovate Experiences Reimagine Work Fuel Growth Evolve Portfolio
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Built the Foundation for IGNITE’s Success Fuel Growth Rebuilt gross margin to fuel growth Created the infrastructure for increased operating efficiencies Innovate Experiences Industry-leading advertising ROI Stronger innovation pipeline Stronger retailer partnerships Reimagine Work Tech & data transformation complete Streamlined operating model Evolve Portfolio Acquired majority interest in Saudi JV Divested VMS and Argentina businesses Planned acquisition of GOJO Industries
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Modern Capabilities
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Consumer Insights Drive Growth Opportunities Driving New Occasions Attracting New Households Drive Category Growth Increase Market Share
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Consumers are Stressed bulk and large sizes coupons and deals 88% Value-Seeking Behaviors make it stretch private label
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Private Label Remains Stable in Our Categories 2019 2020 2021 2022 2023 17% 20252024 17%17% 16% 17%17% 18% Private Label Dollar Share SOURCE: Circana Market Advantage — Total U.S. MULO+ and Pet Spec and Pet Ecommerce
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Megatrends Create Emerging Needs Joy & Comfort New Wave Wellness Home Life Redefined Home at the Center Digitally Transformed Engagement Integrated Experiences Responsibility Responsibility to Self & Family IGNITE Evolved Trend New Expression
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Scan to read the report
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How We Create Growth & Margin Expansion Consumer Insights Leading Brands Modernized Capabilities
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Modernized Capabilities • Personalization • Holistic Margin Management • Revenue Growth Management • Innovation • Omni Channel • Social First
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Leveraging Modern Data & Tech Foundation
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Modernized Capability - Personalization • Proprietary data of 100M known users • Next-Gen consumer data platform • High efficiency content hub 70% of all media spending is personalized Industry leading ROI Source: ROI measurement results from Clorox marketing mix modeling compared to Nielsen benchmarks, 2024.
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Personalize to Drive Improved Experience & ROI Right Person Right Time Right Content+ +
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Create Content & Optimization at Scale AI Agent Orchestration Process Creative Brief & Generate Copy Geographic Optimization and Search Engine Optimization Safety / Claims Legal Reviews & Guardrails AI-Driven Content Creation Accelerated
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Future Personalization Goal 50% Media Spend is One-to-One
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Pricing Price Pack Architecture Trade Optimization Network Optimization Procurement Productivity Enhancement Design to Value Modernized Capability - Holistic Margin & Revenue Growth Management
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Logistics Savings & Efficiencies OLD NEW
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Warehouse Savings • Standardized Formula • Increased Stackability • Reduced Cost
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Manufacturing Network Value Levers Loss & Waste Make vs. Buy Automation & Technology Enablement Complexity & Network Footprint Optimization Volume shifting & Load Balancing Labor Productivity Optimization Least Landed Cost Analysis
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Pricing Forecast Digital Spend Analytics Sourcing Events Contract Lifecycle Management Risk Management Procurement Value Levers
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Procurement – Commodities Forecasting • AI-enabled inflation forecasting • Almost 90% reduction in cycle time • Improved forecasting accuracy
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Pricing WHAT WE DID • New modeling for price elasticities and price gap impact • Testing sharper our price on certain sizes and counts of bags • Grew dollar share at leading retailer on 80 count bags from ~25% to ~32-35% • Highest share in this segment at this retailer since early 2022 EARLY RESULTS RESULT: Oct. 2025-Jan. 2026
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Design to Value - Growth Value drivers: Versatility Solution: Clear bottle Wins: Everyday cleanup, Safe to use around kids & pets Maintains: Clorox efficacy
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Trade Optimization Opportunities Increase ROI & Sales
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Innovation Enhanced by AI Leveraging data and AI to get better insights... • 3x pipeline (1) • ½ of the time (2) • Higher consumer appeal (3)f Digital Core (1) Risk-adjusted pipeline is 3x larger in FY26–28 vs. FY23–24 (2) Refers to the modernized discovery process, designed to reduce time to market by half vs. legacy discovery process (3) Based on concept testing, as measured by claimed purchase intent in the top two points of a five-point scale (“probably would buy” or “definitely would buy”)
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Clorox PURE Opportunity Maturity Curve 25.1% current NEW IDEAS ESTABLISHED IDEAS MAINSTREAM ACCEPTANCE EARLY CONSENSUS 30.6% predicted SOURCE: MotivBase 2025, modeled trend development
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• New methodology • Breakthrough technology • Competitive advantage
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Retailers Deeply Involved • Early engagement • Heavy co-development
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Early Retailer Wins
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Strong Investments • 2x spend of our typical launch • eCom first, real-time pivots • 80+ Influencers, 5x average launch
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And We’re Just Getting Started
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Consumer Insights Consumer seeking moments of joy Chemical smells interrupt the mood of my home
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Expanding the Platform Internationally Clorox inspired by the fragrances of Poett
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Consumers Look to Their Home to be a Place of Wellness Trash bag leaks are the grossest, most disruptive trash problem
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Clearly Superior Solution Glad LeakGuard Based on internal assessments of product performance and consumer appeal
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Consumer Insights Self-Care Is growing in importance People seeking advanced face care benefits for the rest of their bodies
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Boosted Lip & Body Care Boosted with Vitamins C, E, & F and Shea Butter
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Consumer Insights MORE PEOPLE OWNING MORE CATS PET HUMANIZATION MAKES PETS FAMILY
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Fresh Step Reinvention Omni First Price Pack Architecture Improved Distribution Improved Packaging Improved Product Pricing
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Fresh Step Reinvention
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Fresh Step Reinvention Base Tier Premium Tier
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Fresh Step Reinvention
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Fresh Step Reinvention
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Evolving With Shoppers
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eCommerce – Leading Brick & Click Retailer ~19% growth in eCommerce year over year(1) Higher digital penetration vs. category on majority of our brands Clorox PURE is the top ship-to- home item in our department via early digital launch (1) SOURCE: Scintilla L52 weeks
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Modernized Capability - Social First TO: Engagement & Early-Stage Commerce Platform FROM: Media Platform
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Pine-Sol 2025 Results: • +200% organic content (1) • From 2 audiences to 107 for stronger engagement (2) • Social have become the brand’s most efficient marketing vehicles (3) (1) Results as of Calendar year 2025 (2) Results as of FY25 Q2 through FY26 Q1 (3) SOURCE: Vayner Media social media analytics
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Brita 2025 Results: • +200% consumer social engagement • Share of voice increased 20% across TikTok and Instagram • +860% increase in social impressions Results as of Calendar Year 2025. CY25 social media engagement, impressions, and share of voice are derived from syndicated data
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Clorox PURE
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Portfolio Updates
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Advances Portfolio Evolution to Strengthen Strategic Advantage Acquired majority interest in Saudi JV Divested Argentina business Divested VMS business Planned acquisition of GOJO Industries
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Health & Wellness Segment – An Area of Strength Portfolio of #1 & #2 share brands with superior consumer value Long track record of consistent share growth supported by strong consumer tailwinds Health & Wellness is Clorox’s largest, fastest-growing & most profitable segment 4% sales CAGR over the last 10 years
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GOJO Industries – A Leader in Skin Health & Hygiene Stable Installed Base Leading Brand Decades of Strong Growth Attractive Tailwinds 20M Installed Dispenser Base #1 Hand Sanitizer Brand 5% 3 Year Sales CAGR Low Household Penetration Faster-growing B2B Channel World- class Capabilities Vertically Integrated +680 Patents
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Your company has a very special place in my family’s heart. When my daughter was diagnosed with Leukemia at the age of 5, Purell quickly became a daily essential for us. She’s now 24 and thriving, and Purell is still something we rely on and trust every single day. “ ”
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#1 & #2 brands in attractive categories End-to-end solution creates B2B & retail cross-selling opportunities Strategic advantage from complementary capabilities Combined Scale & Capabilities Enhances Profitable Growth Across B2B & Retail Channels Health & Wellness Segment • Consumer-led innovation and brand-building • Wide retail distribution & strong customer relationships • Fast-growing Professional business • Holistic margin management capabilities • Strong innovation capabilities in skin health & hygiene category • Wide reach, deep expertise, strong relationships in B2B • Large & stable installed revenue base • Patent-protected formulations & technology $3.5B+ Trusted Brand Portfolio in Health & Hygiene 66 GOJO Industries
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Path to Value Creation Drives further growth with enhanced B2B reach and capabilities Poised to accelerate Purell’s growth opportunities in retail Combined Scale >$50M in run-rate cost synergies (1) (1) Projected run-rate cost synergies based on management estimates
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Scale Matters Across the Complex B2B Ecosystem
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Advances Portfolio Evolution to Strengthen Strategic Advantage Strengthens strategic advantage Drives more consistent, profitable growth Builds a stronger, more resilient company Acquired majority interest in Saudi JV Divested Argentina business Divested VMS business Planned acquisition of GOJO Industries
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Financial Update Luc Bellet EVP & Chief Financial Officer
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FY26 Financial Outlook Organic Sales Growth (1) OSG Excluding ERP Transition +220bps +25% +11% (3) Gross Margin Expansion Adjusted EPS Growth(2) Adjusted EPS Growth Excluding ERP Transition -9% to -5% -1.5% to +2.5% (3) -100 to -50 bps -23% to -18% Flat to +6% (3) FY26 Outlook(3) (1) Organic sales growth (a non-GAAP measure) is defined as net sales growth / (decrease) excluding the effect of any acquisitions and divestitures and foreign exchange rate changes. See reconciliation on page 86. (2) Adjusted EPS (a non-GAAP measure) is defined as diluted earnings per share that excludes or has otherwise been adjusted for significant items that are nonrecurring or unusual. FY26 outlook for adjusted EPS is expected to be between $5.95 and $6.30, that represents a year -over-year decrease of 23% to 18%, respectively. FY26 adjusted EPS outlook includes $0.90 of negative impact related to the reversal of the impact from incremental shipments associated with the ERP transition in the prior fiscal year. See reconciliation on page 87. (3) Organic sales growth and adjusted EPS growth based on Outlook as of February 3, 2026, excluding the impact from ERP implementation. FY25 +5% +1.5% (3)
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Long Term Financial Goals IGNITE Strategy Sales Growth +3 to 5% (1) Adjusted EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income, interest expense and other significant items that are nonrecurring or unusual. Adjusted EBIT margin is the ratio of adjusted EBIT to net sales. (2) Free cash flow (a non-GAAP measure) represents net cash (GAAP measure) less capital expenditures. Adj. EBIT Margin Expansion(1) Free Cash Flow (2) +25 to 50bps +11 to 13%
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Organic Sales Growth Positioned To Accelerate • Mixed performance in recent years • Rebuilding momentum after operational disruptions • Future growth strengthened by innovation, capabilities and portfolio evolution 1% 10% 9% -2% 6% 0% 5% FY19 FY20 FY21 FY22 FY23 FY24 FY25 +3.5% from ERP +2.5% Average 1% excl. ERP FY22 +5% Average
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Fully Rebuilt Gross Margins With Expansion Opportunities Ahead 44% 46% 44% 36% 39% 43% 45% FY19 FY20 FY21 FY22 FY23 FY24 FY25 • Inflation-driven decline in FY22 • Fully rebuilt GM with pricing, cost savings & portfolio evolution • Future expansion opportunities leveraging holistic margin management
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GOJO Acquisition Expands Global Health & Hygiene and Creates a More Stable, Faster-Growing Core FY19 FY26 Proforma, incl. GOJO ~40% Global Health & Hygiene >50% Global Health & Hygiene Global Health & Hygiene net sales include Health & Wellness Segment, Cleaning portfolio within International Segment and GOJO (in Proforma FY26)
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Healthy Free Cash Flow Generation Fuels Business Reinvestment & Cash Returned to Shareholders Free cash flow as a percentage of net sales. Free cash flow (a non-GAAP measure) represents net cash (GAAP measure) less capital expenditures. See reconciliation on page 81 13% 19% 13% 8% 13% 7% 11% FY19 FY20 FY21 FY22 FY23 FY24 FY25 Average: 12%
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Disciplined Uses of Cash Consistent Reinvestment Support for Dividend Growth Maintain Debt Leverage (1) Strong Cash Return (2) 11-13% Free Cash Flow CapabilitiesBrands Supply Chain 1.9x 2.9x 2.5x 2.2x FY21 FY22 FY23 FY24 FY25 1.6x $1.5 B $0.6 B $0.6 B $0.6 B $0.9 B FY21 FY22 FY23 FY24 FY25 ~8% 20Y Dividend Growth >50Y Dividend Payment (1) Debt leverage (a non-GAAP measure) represents total debt divided by adjusted EBITDA for the trailing four quarters. . See reconciliation on page 82 (2) Cash returned to shareholders is defined as cash dividends paid plus treasury stock purchased as outlined in the statements o f cash flows.
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Disciplined Uses of Cash Driving Top-Tier ROIC CLX 25% Peer average 15% Return on invested capital (ROIC) 5-yr average as of fiscal year ending June 30, 2025. ROIC (a non-GAAP measure) is calculated as earnings before income taxes and interest expense (GAAP measures), adjusted for other nonrecurring or unusual items, computed on an after -tax basis as a percentage of average invested capital. Average invested capital represents a five-quarter average of total assets less non-interest bearing liabilities. ROIC is a measure of how effectively the company allocates capital. Information on the Peer ROIC is based on latest publicly available fiscal-end data from FactSet . Data as of June 30, 2025. See reconciliation on page 84. Peers consists of 16 companies: CHD, CL, EL, GIS, HSY, K, KHC, KMB, KO, MDLZ, NESN-CH, REYN, RKT-GB, PEP, PG and ULVR-GB. Peer companies with data unavailable to us are excluded.
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Strong Long-Term Investment Case • Portfolio of leading brands in essential categories • Consistent reinvestments and transformation to strengthen brands, capabilities as well as competitive advantage • ERP implementation complete • Attractive business model that delivers strong cash flow • Continued discipline in cash allocation to drive long-term shareholder value
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APPENDIX
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Free Cash Flow Reconciliation Dollars in millions & percentages based on rounded numbers 81 (1) In accordance with the SEC's Regulation G, this schedule provides the definition of certain non -GAAP measures and the reconciliation to the most closely related GAAP measure. Management uses free cash flow and free cash flow as a percentage of net sales to help assess the cash generation ability of the business and funds available for investing activities, such as acquisitions, investing in the business to drive growth, and financing activities, includin g debt payments, dividend payments and stock repurchases. Free cash flow does not represent cash available only for discretionary expenditures since the Company has mandato ry debt service requirements and other contractual and non-discretionary expenditures. In addition, free cash flow may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. These non -GAAP financial measures should not be considered in is olation or as a substitute for the comparable GAAP measures and should be read in connection with the company’s consolidated financial statements presented in acco rdance with GAAP. FY19 FY20 FY21 FY22 FY23 FY24 FY25 Net cash provided by operations – GAAP $992 $1,546 $1,276 $786 $1,158 $695 $981 Less: Capital expenditures $206 $254 $331 $251 $228 $212 $220 Free cash flow – non-GAAP (1) $786 $1,292 $945 $535 $930 $483 $761 Free cash flow as a percentage of net sales – non-GAAP (1) 13% 19% 13% 8% 13% 7% 11% Net sales $6,214 $6,721 $7,341 $7,107 $7,389 $7,093 $7,104
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Debt to Adjusted EBITDA Reconciliation (Debt Leverage) Dollars in millions & percentages based on rounded numbers 82(*) Refer to the next slide for footnotes. FY21 FY22 FY23 FY24 FY25 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 Earnings before income taxes $900 $607 $238 $398 $1,078 Interest income ($5) ($5) ($16) ($23) ($9) Interest expense $99 $106 $90 $90 $88 EBIT (1)(4) $994 $708 $312 $465 $1,157 EBIT margin (1)(4) 13.5% 10.0% 4.2% 6.6% 16.3% Digital capabilities and productivity enhancements investment (cash) (5) $0 $61 $100 $108 $111 Saudi JV acquisition gain (6) ($82) $0 $0 $0 $0 VMS impairment (7) $329 $0 $445 $0 $0 Professional Products supplier charge (8) $28 $0 $0 $0 $0 Streamlined operating model (cash) (9) $0 $0 $60 $32 $0 Loss on divestiture (10) $0 $0 $0 $240 $118 Pension settlement charge (11) $0 $0 $0 $171 $0 Cyberattack costs, net of insurance recoveries (cash) (12) $0 $0 $0 $29 ($70) Adjusted EBIT (2)(4) $1,269 $769 $917 $1,045 $1,316 Adjusted EBIT margin (2)(4) 17.3% 10.8% 12.4% 14.7% 18.5% Depreciation and amortization $211 $224 $236 $235 $219 Net sales $7,341 $7,107 $7,389 $7,093 $7,104 Total Debt (13) $2,784 $2,711 $2,527 $2,485 $2,488 2.5 1.6Debt to Adjusted EBITDA (14) 1.9 2.2 20.2% 13.1% 2.9 13.4% 21.6% $932 $993 $1,535 $1,111 15.7%Adjusted EBITDA margin (3)(4) $1,480 Adjusted EBITDA (3)(4)
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Debt to Adjusted EBITDA Reconciliation (Debt Leverage) 83 (1) EBIT (a non-GAAP measure) represents earnings before income taxes (a GAAP measure), excluding interest income and interest expense, as reported above. EBIT margin is the ratio of EBIT to net sales. (2) Adjusted earnings (losses) before interest and income taxes (adjusted EBIT) represents earnings (losses) excluding interest income, interest expense, income taxes and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental costs, net of insurance recoveries, related to the cyberattack, asset impairments, charges related to the streamlined operating model, charges related to the digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions / divestitures and other nonrecurring or unusual items impacting comparability). Adjusted EBIT margin is the ratio of adjusted EBIT to net sales. (3) Adjusted EBITDA (a non-GAAP measure) represents earnings from income taxes (a GAAP measure), excluding interest income, interest expense and other significant items that are nonrecurring or unusual (such as the pension settlement charge, incremental costs, net of insurance recoveries, related to th e cyberattack, asset impairments, charges related to the streamlined operating model, charges related to digital capabilities and productivity enhancements investment, significant losses/(gains) related to acquisitions / divestitures and other nonrecurring or unusual items impacting comparability), depreciation and amortization, as reported above. For fiscal years 2024 and earlier, for purposes of calculating a liquidity measure, the impacts of charges or liabilities that require cash settlement were included in the calculation of Adjusted EBITDA. Starting in FY25 Adjusted EBITDA is aligned with Adjusted EBIT and excludes both cash and non-cash adjustments. If this methodology was used for fiscal years 2021, 2022, 2023 and 2024, the debt to adjusted EBITDA ratio would have been 1.9, 2.7, 2.2 and 1.9, respectively. Adjusted EBITDA margin is the ratio of Adjusted EBITDA to net sales. (4) In accordance with the SEC's Regulation G, this schedule provides the definition of certain non-GAAP measures and the reconciliation to the most closely related GAAP measure. Management believes the presentation of EBIT, EBIT margin, Adjusted EBIT, Adjusted EBIT Margin, EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA Margin and debt to Adjusted EBITDA provides useful additional information to investors about trends in the company's operations and is useful for period-over-period comparisons. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read in connection with the company’s consolidated financial statements presented in accordance with GAAP. (5) Reflects the operating expenses incurred by the company related to its digital capabilities and productivity enhancements investment. The majority of these expenses relate to external consulting fees. The remaining expenses relate to internal IT project management and supporting personnel costs and other costs. (6) On July 9, 2020, the company increased its investment in each of the two entities comprising its joint venture in the Kingdom of Saudi Arabia (Saudi joint venture). As a result of this transaction, a noncash nonrecurring net gain was recognized of $82 ($76 after tax) in Other (income) expense, net in the quarter ended September 30, 2020, primarily due to the remeasurement of the carrying value of the company’s previously held equity investment to fair value. (7) During the quarter ended March 31, 2021 and March 31, 2023 noncash impairment charges of goodwill, trademarks and other assets were recorded of $329 ($267 after tax) and $445 ($362 after tax) respectively, related to the VMS business. (8) During the quarter ended June 30, 2021, noncash charges of $28 ($21 after tax) were recorded on investments and related arrangements made with a Professional Products SBU supplier. (9) Reflects the restructuring and related implementation costs, net incurred by the company as part of the streamlined operating model. These expenses were primarily attributable to employee-related costs, as well as implementation and other associated costs. (10) Represents losses related to the divestiture of the Argentina (FY24) and the Vitamins, Minerals and supplements (FY25) businesses. (11) Represents costs related to the settlement of the domestic qualified pension plan. (12) Reflects costs related to the cyberattack, net of insurance recoveries. (13) Total debt represents the sum of notes and loans payable, current maturities of long-term debt and long-term debt. Current maturities of long-term debt and long-term debt are carried at face value net of unamortized discounts, premiums and debt issuance costs. (14) Debt to Adjusted EBITDA (a non-GAAP measure) represents total debt divided by Adjusted EBITDA for the trailing four quarters.
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Return on Invested Capital Reconciliation 84 Dollars in Millions and percentages based on rounded numbers (*) Refer to the next slide for footnotes. FY21 FY22 FY23 FY24 FY25 $900 $607 $238 $398 $1,078 Add back: $357 $61 $605 $580 $159 $99 $106 $90 $90 $88 Less: ($82) $1,274 $774 $933 $1,068 $1,325 ($264) ($174) ($220) ($215) ($284) $1,010 $600 $713 $853 $1,041 $9 $9 $12 $12 $14 $1,001 $591 $701 $841 $1,027 $3,858 $3,462 $3,408 $3,236 $2,978 26% 17% 21% 26% 34% (Amounts shown below are five quarter averages) FY21 FY22 FY23 FY24 FY25 Total assets $6,524 $6,256 $6,024 $5,880 $5,580 Less: non-interest bearing liabilities ($2,716) ($2,822) ($2,837) ($2,921) ($2,706) Average invested capital $3,808 $3,434 $3,187 $2,959 $2,874 After tax certain U.S. GAAP items(2) $50 $28 $221 $277 $104 Adjusted average invested capital(4) $3,858 $3,462 $3,408 $3,236 $2,978 Adjusted Average invested capital (4) Certain U.S. GAAP charges(2) Less: after tax profit attributable to noncontrolling interests Adjusted after-tax profit attributable to Clorox Income taxes before income taxes and interest expense adjusted for certain U.S. GAAP items (3) Earnings before income taxes (GAAP measure) Earnings before income taxes, certain U.S. GAAP items and interest expense Saudi JV acquisition gain(5) Interest expense Adjusted after-tax profit Return on invested capital (1)
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Return on Invested Capital Reconciliation 85 (1) In accordance with SEC's Regulation G, this schedule provides the definition of a non -GAAP measure and the reconciliation to the most closely related GAAP measure. Return on invested capital (ROIC), a non-GAAP measure is calculated as earnings before income taxes and interest expense, adjust ed for other nonrecurring or unusual items, computed on an after-tax basis as a percentage of average invested capital. Management believes ROIC provides additional inform ation to investors about current trends in the business. ROIC is a measure of how effectively the company allocates capital. ROIC should not be considered in isolation or as a substitute for the comparable GAAP measures and should be read in connection with the company's consolidated financial statements presented in accordance with G AAP. (2) Certain U.S. GAAP charges for fiscal year 2025 include after tax charge of $118 related to the divestiture of the Better Health VMS Business, $111 ($85 after tax) of expenses related to the company’s digital capabilities and productivity enhancements investments and $70 ($53 after tax) of insurance rec overies related to the cyberattack. Fiscal year 2024 include $240 ($231 after tax) of costs related to the divestiture of the Argentina business, $171 ($130 after tax) of costs related to the settlement of the domestic qualified pension plan, $108 ($82 after tax) of expenses related to the company’s digital capabilities and productivity enhance ments investments, $32 ($25 after tax) of restructuring and related costs, net for implementation of the streamlined operating model and $29 ($22 after tax) of costs r elated to the cyberattack net of insurance recoveries. Fiscal year 2023 include $445 ($362 after tax) for a noncash impairment charge related to the VMS business, $100 ($7 6 after tax) of expenses related to the company’s digital capabilities and productivity enhancements investments and $60 ($45 after tax) of restructuring and related costs, net for implementation of the streamlined operating model. Fiscal year 2022 includes $61 ($47 after tax) of expenses related to the Company's digital capabilities and productivity enhancements investment. Fiscal Year 2021 includes noncash impairment charges of $329 ($267 after tax) and noncash charges of $28 ($21 aft er tax) on investments and related arrangements made with a Professional Products business supplier. (3) The tax rate applied is the effective tax rate before the identified U.S. GAAP items was 21.4%, 20.1%, 23.6%, 22.5% and 20.7% in fiscal years 2025, 2024, 2023, 2022 and 2021 respectively. (4) Adjusted average invested capital represents a five-quarter average of total assets less non-interest bearing liabilities adjusted for other nonrecurring or unusual items. (5) On July 9, 2020, the company increased its investment in each of the two entities comprising its joint venture in the Kingdom of Saudi Arabia (Saudi joint venture). As a result of this transaction, a non-cash nonrecurring net gain was recognized of $82 ($76 after tax) in Other (income) expense, net in th e quarter ended September 30, 2020, primarily due to the remeasurement of the carrying value of the company’s previously held equity investment to fair value.
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Organic Sales Growth / (Decrease) Reconciliation 86 The following table provides a reconciliation of organic sales growth / (decrease) (non-GAAP) to net sales growth / (decrease) (GAAP), the most comparable GAAP measure: (1) Organic sales growth (a non-GAAP measure) is defined as net sales growth / (decrease) excluding the effect of any acquisitions and divestitures and foreign exchange rate changes. Fiscal year 2025 full year Impact Low High Net sales growth / (decrease) (GAAP) 0 % (10)% (6)% Add: Foreign Exchange 0 % — — Add/(Subtract): Divestitures/acquisitions 5 % <1 <1 Organic sales growth / (decrease) (non-GAAP) (1) 5 % (9)% (5)% Note: Expected impact from incremental shipments related to ERP transition 3.5 % (7.5)% (7.5)% Fiscal year 2026 full year outlook
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Adjusted Diluted Earnings Per Share Reconciliation 87 Dollars in Millions except per share data (1) During the twelve months ended June 30, 2025, the company incurred losses of approximately $118 ($118 after tax) on the sale of the Better Health VMS business. During the twelve months ended June 30, 2024, the company incurred losses of approximately $240 ($231 after tax) on the sale of the Arge ntina business. (2) During the twelve months ended June 30, 2024, the company incurred approximately $171 ($130 after tax) of costs related to the termination of the domestic qualified pension plan. (3) During the twelve months ended June 30, 2025, the company recognized insurance recoveries of approximately $70 ($53 after tax ) related to the August 2023 cyberattack. In the twelve months ended Jun. 30, 2024, the company incurred approximately $29 ($22 after tax) of costs related to the August 2023 cyberattack, net of insurance recoveries. The costs relate primarily to third-party consulting services, including IT recovery and forensic experts and other professional ser vices incurred to investigate and remediate the attack, as well as incremental operating costs from the resulting disruption to the company's business operations. (4) During the twelve months ended June 30, 2024, the company incurred $32 ($25 after tax), respectively, of restructuring and re lated costs, net related to implementation of the streamlined operating model. (5) During the twelve months ended June 30, 2025, the company incurred approximately $111 ($85 after tax), respectively, and during the twelve months ended June 30, 2024, the company incurred approximately $108 ($82 after tax), respectively, of operating expenses related to its digital capabilities and productivity enhancements investment. The following table provides reconciliation of adjusted diluted earnings per share (non-GAAP) to diluted earnings per share, the most comparable GAAP measure: