WD 40 FY 3Q17 Earnings Call Notes

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Garry Ridge

Strategic initiative

“Our most important strategic initiative is to take the blue and yellow can with a little red top to more places for more people who will find more uses more frequently. ”

Attract new tribe members

“Strategic initiative number four is to attract, develop, and retain outstanding tribe members. Our goal under this initiative is to attract, develop, and retain talented tribe members. Our long-term target under this initiative is to grow employee engagement to greater than 95%. As we shared with our investors earlier this fiscal year, we completed the acquisition of a new building that will house our San Diego-based tribe members. We are currently in the final process of renovating the property and expect to relocate our tribe to the new office facilities in late August.”

Better to go slow in the right direction

” So historically in closing today which is the last conference call we will do from the facility here in Cudahy Place, I would like to share with you a quote from Simon Sinek, it’s better to go slow in the right direction than to go fast in the wrong direction.”

Jay Rembolt

Long term margin targets

Thanks, Garry. First, let’s review our 55/30/25 business model, the long-term targets we use to guide our business. As you may recall, the 55 represents gross margin, which we target to be a 55% of net sales. The 30 represents our cost of doing business, which is our total operating expenses excluding depreciation and amortization. Our target is to be at 30% of net sales. And that leaves us finally with the 25, which represents EBITDA.