1. CFA Institute Research Challenge
San Diego, CA - Regional
University of San Diego
San Diego, CA
Jamie Arnold
Ike Ekeh
Joe LaBarbera
Louis Lukondi
Harsha Musthyala

2. Executive Summary
2015 Highlights
• Hired 57 new employees
• Acquired GT85
• $75M share buyback plan
• Operations extend to over 61
countries
Market Profile
Closing Price $97.44
52-Week High / Low $104.99 / $80.15
Average Volume (3M) 67,676
Diluted Shares Out. 14,461,000
Float 13.91M
Liquidity
$97.39-$98.76 Bid-Ask
Spread
Short Interest as a % of S/O 2.55%
Market Cap $1.49B
Dividend Yield 1.61%
Beta 0.8
EV / Revenue 13.2x
EV / EBITDA 23.1x
FCFF / Share 22.8x
Institutional Holdings 72.59%
Insider Holdings 3.84%
97.440002
0
20
40
60
80
100
120
PRICEPERSHARE($)
WD-40 Weekly Stock Price
89.88

3. • Founded 1953
• 2 Product Categories
• Maintenance
• Homecare and Cleaning
• 3 Regions
• Americas
• EMEA
• Asia-Pacific
• Low debt capital structure
• Goals:
• Double Revenue
• 55/30/25
• Growth in China
$333,306 $337,825 $320,883
$44,844 $45,172 $47,665
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
August 31, 2015 August 31, 2014 August 31, 2013
Revenue By Category
Mainenance Products Homecare and Cleaning Products
$187,344 $180,806 $180,544
$136,847 $151,368 $137,360
$53,959 $50,823 $50,644
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
August 31, 2015 August 31, 2014 August 31, 2013
Revenue by Region
Americas EMEA Asia-Pacific
Business Description

4. 0
2
4
6
8
Threat of New Entrant
Threat of Substitute Products
Bargaining Power of CustomersBargaining Power of Suppliers
Intensity of Competition
Porter's 5 Forces Analysis
- Intense industry competition
due to price sensitivity
- Threat of substitution
internationally may arise
- Strong brand loyalty will fend
off new entrant threat locally
Industry Overview

5. U.S. Demand
Demographics
Construction
& Skilled
Traders
At-Home
“Non-
Enthusiast”
At-Home
Doer-
Enthusiast
Maintenance
Repair &
Overhaul
Majority of MUP sales come
from end-users in workshops
8 out of 10 U.S. households have
at least one can of WD-40 MUP
in-home
EMEA Region
GERMANY is the 2nd largest DIY
market in the world and an area in
which the company sees future
expansion
Asia-Pacific Region
The company predicts that the
target demographic will be
commercial use in
manufacturing
Industry Overview

6. Competitive Positioning – MUP:
- Prime shelf space
- Large selection of size
- Preferred by customers
according to store
representatives
Tri-Flow by Sherwin Williams
- Largest Direct MUP competitor
- Sold at a premium
- Smaller size selection
Industry Overview

7. Competitive Positioning – Specialty Products:
• Liquid Wrench is the largest specialty lubricant
competitor
• As with other competitors, it is sold at a premium
to WD-40 products
• Larger selection of specialty products relative to competitors
• Strong brand recognition places WD-40 specialty products at the
top of consumer choice list
***WD-40 has recently purchased GT85, a well established bike lubricant company
based in the U.K. which will accelerate WD-40”s expansion in the EMEA market
Industry Overview

8. Investment Summary
SWOT
Strengths Weaknesses
ThreatsOpportunities
• Strong brand recognition
• Low input costs
• Well controlled debt use
• Short lead time for product changes (2-5
months)
• Currency translation issues; no hedging
• Weak market penetration in Latin America &
Canada
• Highly competitive market with extreme price
sensitivity
• Shift to DTC/online companies  less need for
distribution channel
• Low interest rates on credit facility  cash for
future projects and/or share buybacks
• Potential divesture of “Homecare and Cleaning”
products  cash for further investments GT85
product purchase
• Strengthening of the dollar and pound
against the Euro ( > 1/3 sales from EMEA
region)
• Weak brand recognition in Asia-Pacific
region coupled with relatively soft
regulation on intellectual property 
infringement on WDFC formula

9. Impact
High
Raw Materials
Cost
Environmental
Regulation
Medium Quality & Safety
Government
Instability
Global Economic
Conditions
Brand Name &
Recognition
Foreign Taxes &
Fees
Low
Talent Retention
Low Medium High
Probability
Risk

10. 0
5,000
10,000
15,000
20,000
3/3/13 9/3/13 3/3/14 9/3/14 3/3/15 9/3/15
In$
World Markets
NASDAQ Nikkei (japan) SSE Composite (China)
DAX (Germany) FTSE 100 (London)
Countries Stability Rating
Yemen -2.53
Pakistan -2.44
Ukraine -1.93
Lebanon -1.72
Egypt -1.58
Colombia -1.12
Turkey -1.06
Israel -0.99
India -0.96
Bahrain -0.94
Crude Oil WTI Futures
Date Price Change
Mar-16 $29.59
Apr-16 $30.88 4.36%
May-16 $31.97 3.53%
Jun-16 $32.90 2.91%
Jul-16 $33.62 2.19%
Aug-16 $34.06 1.31%
Sep-16 $34.70 1.88%
Oct-16 $35.13 1.24%
Nov-16 $35.45 0.91%
Dec-16 $35.95 1.41%
Jan-17 $36.53 1.61%
Feb-17 $36.88 0.96%
Mar-17 $35.59 -3.50%
Apr-17 $36.96 3.85%
May-17 $36.69 -0.73%
Jun-17 $37.69 2.73%
Jul-17 $38.49 2.12%
Aug-17 $36.85 -4.26%
Sep-17 $37.73 2.39%
Oct-17 $37.97 0.64%
Nov-17 $38.22 0.66%
Dec-17 $39.20 2.56%
Risk

11. Rating Methodology
Executive Management - STRONG
Board of Directors - STRONG
Takeover Defense - STRONG
Rights of Shareholders - MEDIUM
Disclosure and Transparency - MEDIUM
Corporate Governance

12. Financial Analysis
Debt Analysis:
- No long-term debt
-108 mil revolving credit
Total liabilities/ MV of Equity:
Projected ratio of 0.165
EBITDA margin:
Approximately 22% against expected 25%
- 25% seems over-achieving
- Unless new sales come in or growth in sales
in China

13. Valuation Methods
EV/Sales
LTM
15%
DCF
70%
EV/EBITDA
LTM
15% Weighted
Average Implied
Share Price
?

14. Relative Valuation
Valuation Statistics Capitalization Enterprise Value / Enterprise Value /
Share Equity Enterprise Revenue(1) EBITDA(1) P / E Multiple(1)
Company Name Price Value(1) Value(1) LTM 12/31/15 12/31/16 LTM 12/31/15 12/31/16 LTM 12/31/15 12/31/16
Clorox CLX $127.89 $16,555.00 $18,461.00 3.24 x 3.26 x 3.24 x 14.84 x 15.77 x 14.78 x 24.7 x 24.7 x 26.0 x
Church & Dwight CHD $89.51 $11,737.00 $12,507.00 3.68 x 3.68 x 3.60 x 16.13 x 16.13 x 15.23 x 29.2 x 29.2 x 25.6 x
Spectrum Brands SPB $93.26 $5,538.00 $9,548.00 1.97 x 1.97 x 1.87 x 12.95 x 12.96 x 10.40 x 31.5 x 31.5 x 19.2 x
Colgate-Palmolive CL $67.22 $60,010.00 $65,544.00 4.09 x 4.09 x 4.31 x 14.95 x 14.95 x 14.88 x 44.2 x 44.2 x 24.3 x
Maximum $127.89 $60,010 $65,544 4.1 x 4.1 x 4.3 x 16.1 x 16.1 x 15.2 x 44.2 x 44.2 x 26.0 x
75th Percentile 101.92 27,419 30,232 3.8 x 3.8 x 3.8 x 15.2 x 15.9 x 15.0 x 34.7 x 34.7 x 25.7 x
Median $91.39 $14,146 $15,484 3.5 x 3.5 x 3.4 x 14.9 x 15.4 x 14.8 x 30.3 x 30.3 x 24.9 x
25th Percentile 83.94 10,187 11,767 2.9 x 2.9 x 2.9 x 14.4 x 14.5 x 13.7 x 28.0 x 28.0 x 23.0 x
Minimum 67.22 5,538 9,548 2.0 x 2.0 x 1.9 x 13.0 x 13.0 x 10.4 x 24.7 x 24.7 x 19.2 x
WD-40 WDFC $105.80 $1,523.00 $1,529.00 4.1 x 4.1 x 3.9 x 20.8 x 20.8 x 19.6 x 33.7 x 33.7 x 31.5 x

15. Implied Equity Value and Share Price EV/Sales LTM
Enterprise Value $1,296.3
Less: Total Debt (125.0)
Plus: Cash and Cash Equivalents 102.5
Implied Equity Value $1,273.8
Dilluted Shares Out 14.6
Implied Share Price $87.25
Implied Equity Value and Share Price EV/EBITDA LTM
Enterprise Value $1,093.8
Less: Total Debt (125.0)
Plus: Cash and Cash Equivalents 102.5
Implied Equity Value $1,071.3
Implied Share Price 14.6
Implied Share Price $73.37
$87.25
$73.37
EV / Sales LTM
EV / EBITDA LTM
Relative Valuation

16. DCF Assumptions
Revenue Breakdown by Geography
2016E 2017E 2018E 2019E 2020E
Total Revenue Growth 2.77% 3.19% 3.51% 3.73% 3.60%
The Americas
Multi-purpose maintenance products 4.24% 4.75% 5.00% 5.25% 5.00%
Homecare and cleaning products -6.42% -6.42% -5.00% -5.00% -4.75%
Europe
Multi-purpose maintenance products 2.18% 2.50% 2.60% 2.70% 2.50%
Homecare and cleaning products -4.46% -4.46% -3.00% -3.00% -3.00%
Asia-Pacific
Multi-purpose maintenance products 6.50% 6.50% 6.25% 6.25% 6.00%
Homecare and cleaning products 2.94% 2.94% 2.50% 2.50% 2.50%
2016E 2017E 2018E 2019E 2020E
NOPAT $54.63 $59.10 $62.59 $66.39 $67.26
Plus: Depreciation & Amortization 1.98 2.04 2.11 2.19 2.27
Less: Capital Expenditures -4.10 -4.10 -4.10 -4.10 -4.10
Less: Increase in Net Working Capital -1.83 -1.89 -1.95 -2.03 -2.10
Unlevered Free Cash Flow $50.68 $55.16 $58.65 $62.45 $63.33
WACC 8.33% 8.33% 8.33% 8.33% 8.33%
Discount Period 1.00 2.00 3.00 4.00 5.00
Discount Factor 0.9231 0.8521 0.7866 0.7261 0.6703
Present Value of Free Cash Flow $46.79 $47.00 $46.13 $45.35 $42.45
Capital Structure
Equity 157,900
Debt 118,000
Total 275,900
Cost of Equity 8.73%
Weight E 93%
Prime Rate 4.50%
Weight 7%
Tax Rate 32%
WACC 8.33%
LT WACC 8.50%

17. DCF Assumptions
Enterprise Value Multiple Method
Cumulative Present Value of FCF $227.7
Terminal Value
Terminal Year EBITDA (2020EE) $101.2
Exit Multiple 14.9x
Terminal Value $1,507.6
Discount Factor 0.6703
Present Value of Terminal Value $1,010.5
% of Enterprise Value 81.6%
Enterprise Value $1,238.3
Implied Equity Value and Share Price
Enterprise Value $1,238.3
Less: Total Debt 118.0
Plus: Cash and Cash
Equivalents 102.5
Implied Equity Value $1,458.8
Diluted Shares Out 14.6
Implied Share Price $99.91
Gordon Growth Method
Cumulative Present Value of FCF $227.7
Terminal Value
Terminal Year Free Cash Flow (2020EE) $63.3
Terminal WACC 8.5%
Perpetuity Growth Rate 2.5%
Terminal Value 1055.55
Implied Multiple 16.67
Enterprise Value $1,283.27
Less: Total Debt 118.0
Plus: Cash and Cash Equivalents 102.5
Implied Equity Value $1,267.77
Implied Share Price $86.83
$93.97

18. Valuation Methods
$87.25
$93.97
$73.37
Discounted Cash Flow (DCF)
70%
EV/Sales LTM
15%
EV/EBITDA
15%
Implied Share Price
$89.88

19. Recommendation
Pros
• Strong Brand
• Low debt
structure
• Acquisition of
GT85
Cons
• Increased margins
result of
temporarily low
raw material costs
• Decreased sales
$89.88
HOLD

20. Questions?
?

22. Pro Forma Income Statement
Historical Period CAGR Projection Period CAGR
2011 2012 2013 2014 2015 ('11-'15) 2016E 2017E 2018E 2019E 2020E ('16-'20)
Sales 336.4 342.8 368.5 383.0 378.2 2.4% $388.6 $401.0 $415.1 $430.6 $446.1 2.8%
% growth 4.6% 1.9% 7.5% 3.9% -1.3% 2.8% 3.2% 3.5% 3.7% 3.6%
COGS 168.297 174.302 179.4 184.1 178.0 180.7 182.5 186.8 191.6 200.7
Gross Profit $168.1 $168.5 $189.2 $198.9 $200.2 3.6% $207.9 $218.6 $228.3 $239.0 $245.3 3.4%
% margin 50.0% 49.2% 51.3% 51.9% 52.9% 53.5% 54.5% 55.0% 55.5% 55.0%
SG&A 106.943 109.52 122.0 125.6 122.7 125.6 129.6 134.1 139.1 144.2
R&D 5.5 5.1 7.2 6.9 9.0 7.0 7.2 7.9 8.4 8.9
Other Operating Expense 0 0 1.1 - 1.4 1.5 1.5 1.6 1.7
EBITDA $55.7 $53.9 $58.9 $66.4 $68.4 4.2% $82.3 $89.0 $94.2 $99.8 $101.2 4.2%
% margin 16.5% 15.7% 16.0% 17.3% 18.1% 21.2% 22.2% 22.7% 23.2% 22.7%
Depreciation & Amortization 1.537 2.133 2.3 2.6 3.0 2.0 2.0 2.1 2.2 2.3
EBIT $54.1 $51.7 $56.6 $63.7 $65.4 3.9% $80.3 $86.9 $92.0 $97.6 $98.9 4.2%
% margin 16.1% 15.1% 15.4% 16.6% 17.3% 20.7% 21.7% 22.2% 22.7% 22.2%
Taxes 17.098 15.428 17.1 19.2 18.3 25.7 27.8 29.5 31.2 31.7
EBIAT $37.0 $36.3 $39.6 $44.5 $47.1 4.9% $54.6 $59.1 $62.6 $66.4 $67.3 4.2%
Plus: Depreciation & Amortization 1.5 2.1 2.3 2.6 3.0 2.0 2.0 2.1 2.2 2.3
Less: Capital Expenditures 2.88 3.77 2.9 4.1 5.8 (4.1) (4.1) (4.1) (4.1) (4.1)
Less: Increase in Net Working Capital -10.4 3.4 (1.7) (7.1) 4.1 (1.8) (1.9) (2.0) (2.0) (2.1)
Unlevered Free Cash Flow $50.7 $55.2 $58.6 $62.5 $63.3
WACC 8.33% 8.33% 8.33% 8.33% 8.33%
Discount Period 1 2 3 4 5
Discount Factor 0.9231 0.8521 0.7866 0.7261 0.6703
Present Value of Free Cash Flow $46.8 $47.0 $46.1 $45.3 $42.5