Good morning. My name is Tia, and I'll be your conference operator for today. At this time, I would like to welcome everyone to Energizer Holdings second quarter fiscal 2015 results conference call. I would now like to turn the conference over to Jackie Burwitz, Vice President, Investor Relations. You may begin your conference.

Thank you, Tia, and good morning, everyone, and thanks for joining us on Energizer's conference call to discuss our second quarter fiscal 2015 results. With me this morning are Ward Klein, Chief Executive Officer; and Dan Sescleifer, Chief Financial Officer. Joining us for the Q&A portion of the call are David Hatfield, CEO of Personal Care; and Alan Hoskins, CEO of Household Products. This call is being recorded and will be available for replay via our website, energizerholdings.com. During the call, we may make statements about our expectation for future plans and performance, including future sales, earnings, advertising and promotional spending, product launches, savings and costs related to restructuring, changes to our working capital metrics, currency fluctuations, commodity costs, category value, future plans for return of capital to shareholders, whether the spinoff of the Household Products business is completed as expected or at all, the timing, costs and terms of a spinoff, and whether the expected benefits of the spinoff can be achieved. Any such statements are forward-looking statements, which reflect our current views with respect to future events. These statements are based on assumptions and are subject to risk, including those described under the caption Risk Factors in our Annual Report on Form 10-K, filed November 18, 2014. These risks may cause our actual results to be materially different from those expressed or implied by our forward-looking statements. We do not undertake to update these forward-looking statements. During this call, we will refer to non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with Generally Accepted Accounting Principles. A reconciliation of the non-GAAP financial measures to those most directly comparable GAAP measures is shown in the press release issued earlier today, which is available in the Investor Relations section of our website, energizerholdings.com. Management believes these non-GAAP…

The first question comes from the line of Olivia Tong with Bank of America. Please proceed.

Good morning. Can you hear me? Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: Yes, we can.

Oh, perfect. Thanks for the question. Appreciate it. Why don't we get a little bit more detail on the overhead? You had mentioned in the press release that it would take about three to four quarters to work off. Apologies if I missed some of your opening remarks. But just want to see if you could give a little bit more color behind that. What are some of the things that – talk about some of the things that you're working on? And what's going to drive that getting you back to that normalized run rate? Thank you. Ward M. Klein - Chief Executive Officer & Director: Sure. Maybe I'll give that over to Dan. Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: Olivia, if you think about what we're doing, we're separating entities in 50 markets around the world. We're creating two new corporate entities. And unfortunately, both businesses are going to have some interactions going forward. So there'll be some transition services agreement that'll be in place. We certainly have some redundant costs as we work to implement our new go-to-market strategies and organizations internationally. And so with all of that, there's going to be duplicate costs and higher costs with the TSAs that we have in place, and our anticipation is that after a year both companies will be free-standing into the targeted cost structures that have already been determined.

Got it. And then did you also give the impact of the sell-in for EcoAdvanced? Alan R. Hoskins - President & CEO-Energizer Household Products: Do you want me to take that? Ward M. Klein - Chief Executive Officer & Director: Give that to Alan. Alan R. Hoskins - President & CEO-Energizer Household Products: Hi, Olivia. It's Alan.

Hi, Alan. Alan R. Hoskins - President & CEO-Energizer Household Products: So on EcoAdvanced – hi. We're actually very pleased with the results so far. They're tracking to our launch plan. Our customers and our consumers are also elated with the launch thus far. We've got over 1 billion impressions in the market already on the launch of the brand in just two months, so we're very excited about that as well. We've shipped roughly $17 million in EcoAdvanced product into the stores to fill the pegs in the planograms as well as the promotional displays. And we expect over the next two quarters for the turn to occur on that fill-in, and then we'll see retail inventory levels return to normalized levels.

Got it. So should we expect that batteries dips down before it comes back to a normalized run rate again going forward? Alan R. Hoskins - President & CEO-Energizer Household Products: I think the best way to explain that, and it may be a recurring question today, during the latest 12 weeks we did see some stabilization in the category, with volume up 1.1%, value essentially flat. As Ward alluded to, that was driven by both North America and Europe. To the latest 52 weeks, it is in the normal run rate we've been projecting, which is in that minus 2.2% range and up to 4% as we've seen in previous years. Going forward, near term, we expect the category to be in low single-digit decline.

Got it, thank you so much.

Your next question comes from the line of Bill Schmitz with Deutsche Bank. Please proceed.

Bill, can you – are you on? Tia?

The next question comes from the line of Kevin Grundy with Jefferies. Please proceed.

Hey. Good morning, guys. Ward M. Klein - Chief Executive Officer & Director: Good morning, Kevin.

Dan and Jackie, congratulations and best of luck to both of you.

Thank you.

So my question, I actually have a couple here. Dan, is there anything else you'd point out? You talked about the dyssynergies and your ability to offset those over the next three to four quarters. Anything else that investors should be aware of where the EBITDA for both businesses should look any different than currently what's in the marketplace I guess and based on your existing disclosures? Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: So the two biggest items, and we've talked about this in our outlook, is we're facing some pretty significant currency headwinds, so that's going to be a negative. And then we're taking Venezuela out of the results going forward. So those would probably be the two biggest parts.

But there should be no other drag, Dan, route-to-market changes, shift in the distributor model, anything like that that would change the EBITDA base. Is that fair? Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: The go-to market changes are just now being executed and put in place. So really I'd almost want to defer until June when we know more and when the two businesses are on the road shows because there clearly is risk. We think we can manage that risk, but I really don't know enough at this point in time to give you an answer on that.

Okay, and then two quick ones unrelated. Fair to say Venezuela has been about 0.5 point contributor to the top line for you guys going forward, so we can be cognizant of that modeling going forward? And then thanks for the capital structure commentary. That's helpful. Should we take that as certainly a view of what the more permanent capital structure – optimal capital structure will be for both businesses? That's it for me. Thank you. Ward M. Klein - Chief Executive Officer & Director: On your second part, I'd say it's our best guess right now. But as I alluded to in my comments, it's really going to be up to the two boards. But we've announced who is on the two boards. Both board members are aware of this thinking at this point in time, but really in the end it's going to be their decision after July 1. That's our best estimate right now on capital structure, Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: And the only other comment is on Venezuela it's been about 1.5 points, I believe, on the top line.

Okay. Oh, Dan, just to growth, not in terms of what it comprises of revenue. Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: Oh, I'm sorry. Yeah. Yeah. I'm sorry. Yes, you do know that. Yes.

So 0.5 point is fair? Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: I haven't done the math on that number. We've disclosed it in the back. You can take a look in the back of the earnings release, the back two pages. I just haven't done the math on that, but you can see how much it contributes to – let's go back to...

$54 million. Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: So $54 million of sales in fiscal 2014, so roughly a little over a point then. Yeah.

Okay, thank you. Ward M. Klein - Chief Executive Officer & Director: Thank you.

The next question comes from the line of Bill Chappell with SunTrust Bank. Please proceed.

Thanks, good morning. Ward M. Klein - Chief Executive Officer & Director: Good morning.

Just looking at the competitive landscape and what you're seeing both Battery and Wet Shave, are you seeing any positive signs, as Duracell looks like it's going to go into a new home? I know it's still early and still hasn't happened. And then conversely, on the Wet Shave, do you think some of the competitive pressures are – I think at one point you thought that Wet Shave would be picking up by now and the overall category trends would be improving as we moved into the spring/summer? Do you think that a competitor is kind of taking advantage of the split to try to put excess pressure? Ward M. Klein - Chief Executive Officer & Director: I tell you what, Bill, let me turn the Battery side over to Alan to answer and then to David on the Wet Shave. Alan R. Hoskins - President & CEO-Energizer Household Products: Hey, Bill. Good morning.

Good morning. Alan R. Hoskins - President & CEO-Energizer Household Products: So in terms of – as you know, we won't comment specifically on a competitor. Duracell has and always will be a strong competitor, regardless of who runs that business. We will continue to monitor the competitive environment, but firmly believe that, as we announced at CAGNY, we've got three core strategies that are going to allow us to really control our own destiny. We're very focused on leading with innovation, continuing to operate with excellence from the point of manufacturer all the way to the shelf. And then finally, continuing to drive productivity in our business. I think as you see the new Energizer going forward, those three strategies will continue to be in play for us and driving productivity will continue to be on the forefront as we look at ways to optimize our costs. So we're going to continue to monitor the environment. We're going to play our game plan out because we're very satisfied with the results thus far. We have a lot of momentum behind the activities we have in the market and we expect that to continue. David P. Hatfield - President & CEO-Energizer Personal Care: And then on the shaving side, if you remember last quarter, we actually characterized the promotional pressure as the highest we've ever seen in the shaving business, higher even than what was implemented two years ago under the 40-country category combination directive of a prior regime. This quarter, it was equally high and, in fact, it increased or held on the women's system side on the disposable side. So this was very high levels. I wouldn't really comment about why it's that high and I really can't comment about where it'll go from here. What we're really focused on is driving innovation in the marketplace. We're actually feeling good about our share of shelf and our baseline shares have been strengthening. So we're feeling good coming out of the second quarter. So that's kind of how we see it there.

I appreciate it. I guess, just a follow-up to that, on the battery so is it as sign that there's really no change right now on the competitive landscape? And then, on Wet Shave, I mean, do you think we can get back to a mid-single digit category growth in the U.S.? Or are we kind of past those days while the competitive environment is like that? Alan R. Hoskins - President & CEO-Energizer Household Products: So on the battery side, I think, the simplest way to think about it is, we plan on continuing to bring innovation to market both in the forms of new product launch and marketing news, both of which our customers and consumers are certainly appreciating. We're seeing that translate into a number of different positives for our business. So as an example, our brand health measures are improving as we've increased our level of A&P. We're also seeing strengthening of our brands. And as you've seen in the latest results, we've been able to build our market share globally up 1.1 point. So we're going to continue down that path because of the momentum we have behind it. Again, as I alluded to earlier, we're really seeing the category in a low-single-digit decline, following the stabilization we've seen in the latest 12 weeks. David P. Hatfield - President & CEO-Energizer Personal Care: And then on the shaving side for the U.S. category, I think we see it in the low 1% to 2% for the near future. Now recognize that that's just U.S. From a global point of view, we're actually seeing higher growth rates internationally. I'll also say that with the changes in the category, we actually feel like we're positioned well to compete. We have Hydro on the premium side, but we have brands to meet the needs of consumers in the middle, and then we have private label to meet the value needs and the opening price point niches.

Great, thanks for the color. And, Dan and Jackie, thanks, you'll be missed.

The next question comes from the line of Megan Cody with UBS. Please proceed.

Hi, thanks. So I know you guys had indicated that A&P spend will be up meaningfully in the June quarter. And it seems like perhaps some new innovations are in the pipeline. But I was wondering if you could go through some more specific puts and takes for what you think will drive an improvement in your Personal Care business, maybe some more specifics on those innovations? Or if you think competitive pressures will abate? Have you seen any of that happen one month into the June quarter? David P. Hatfield - President & CEO-Energizer Personal Care: We really feel like we've increased A&P as a percent of sales in the fiscal year 2014. We've increased it as a percent of sales in the first half of fiscal year 2015. And we're actually seeing the results of that in our baseline shares of the Shave and Fem Care. So those baseline shares have been stabilizing and are actually strengthening. We actually think that that leads in well to quarter three where we'll also see the benefit of innovation. And we've seen category growth accelerating for the second straight quarter. So we're feeling pretty good about quarter three. We also see international growth, which we had in quarter two, where we saw in all areas both volume growth and also price mix growth. We see that continuing into quarter three. Ward M. Klein - Chief Executive Officer & Director: This is Ward. If I could add just from a corporate point of view, the innovation that we're launching right now is why the A&P spend is up and will be up again in the current quarter. You look at the EcoAdvanced launch on the battery side, a true innovation in the category. We're just getting started on that in the U.S. and that's just the U.S. and opportunities elsewhere affect that. And you look on the personal care side, with Fem Care, with bringing sport into pads and liners. The pads and liners are innovative in and of themselves and the sports theme resonates with consumers. Again, we're just getting started on that. Razors, the TrimStyle that we've introduced is, I think, the best trimmer that's out there right now and, again, we're just getting started on that. And then you look back on Hydro Sensitive, which was our big launch last year, especially in the developed markets like the U.S. We're going against high comparables on that right now with Hydro, but Hydro is still stable but growing. And we have opportunities with Hydro Sensitive in international markets. We're just getting going on that. So I hope that gives you kind of a sense of the innovation that our teams are pursuing even in the midst of the split. We haven't dropped that ball at all. In fact, there's quite a bit of activity right now.

Okay, great. Thank you so much. Ward M. Klein - Chief Executive Officer & Director: You're welcome.

The next question comes from the line of Ali Dibadj with Bernstein. Please proceed. Ali Dibadj - Sanford C. Bernstein & Co. LLC: Hey, guys. I just have really one question. And it's if you can tell us a little bit more about what your advisors or legal counsel has said about either of the future two businesses being potentially sold within the two years, given the fact pattern of your split and any tax risk with the IRS? Could you give us some detail and some thought process around that? Ward M. Klein - Chief Executive Officer & Director: Really, Ali, as we've said in prior quarters, we're really just focusing on getting the two companies launched to be long-term successful companies in their own right. So everything that we've been sharing with you today and in past quarters, whether it relates to investments in the brand equities as indicated by A&Ps or percent of sales, whether it's indicated by the innovation that we've already talked about, whether it's indicated by some of the investments we're making in capital and people as we do the split, all these are to set both companies up for long-term success. And so that really remains our focus, and that's what we're going to execute. Ali Dibadj - Sanford C. Bernstein & Co. LLC: And so you've never had any thoughts about any of these businesses being sold as a lot us clearly have? Ward M. Klein - Chief Executive Officer & Director: You know, that's not really our focus right now. Ali Dibadj - Sanford C. Bernstein & Co. LLC: Okay, thanks. Ward M. Klein - Chief Executive Officer & Director: You're welcome.

The next question comes from the line of Bill Schmitz with Deutsche Bank. Please proceed.

Hey, guys. Good morning. Ward M. Klein - Chief Executive Officer & Director: Good morning, Bill.

You might have already been asked this, but why are the spin costs so high? What goes into those numbers? And I guess a related follow-up to that, are you largely done with the changeover in distributors in some of the international markets, or is that still an ongoing process? Ward M. Klein - Chief Executive Officer & Director: Let me give you some top line comments and maybe turn over it to Dan if there's more granularity. But when you think about what we're doing here in taking a $4.5 billion company and splitting it across 50 countries, it's not your typical spin. And so you have to go and really rethink your entire global footprint. That's by country, that's by region, and that obviously is globally. So you clone two IT systems, for example. You clone two supply chain systems, for example, HR systems, finance, the whole nine yards. It's really not just spinning off 50% of your business exercise. And so the reason why we've been very deliberate on this is the reason why it's taken 15 months and we called that out early on. It has been difficult. I've really been impressed with how this organization has stepped up and done this project while keeping the wheels on the bus, keeping the momentum on the businesses. And so I think that gives you at least a 50,000-foot flavor of what we're doing is extraordinary. I'm not aware of any other consumer packaged goods company frankly going through the sort of split that we are in fact are doing and doing successfully. And then I'll turn it over to Dan to add any other color to that. Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: I think Ward covered most of the items. If…

Great, that's really helpful. And I'm sure you guys already addressed this and I apologize because I got on so late. But on the Battery side, how much of the growth this quarter was the pipeline fill from the launch? And then how much is it just like share gains in the ongoing health in the category? Because the holiday period obviously was super aggressive by you guys. I don't know if there were price rollbacks, like list price rollbacks or they were just promotional activity, but I'm just curious if the holiday pricing is being carried forward, or if that was an anomaly in a sort of high-volume, high-demand season and kind of back to normal now? Alan R. Hoskins - President & CEO-Energizer Household Products: Hey, Bill. It's Alan. So a couple of things. First, the EcoAdvanced was roughly $17 million that we shipped in of our total to fill pegs and to fill displays. As you look at the category, we did see improvement in the category during the latest 12 weeks. As I mentioned earlier up 1.1 point in volume and basically flat in value, attributed to performance improvement in the category in both North America and in Europe. Now, the North America piece, a part of that, don't forget, was driven by winter storms which impacted that number. So as we go forward again we're anticipating sort of low-single-digit decline in the category. As we look forward, for Energizer, we believe that the opportunity for us really lies in a few things. So first and foremost, we're going to continue to drive the EcoAdvanced that the launch right now was just in North America. Our plans obviously going forward entail the globe, but we'll get into that later at a different point in time. We've also got a cycle plan of marketing news that we're bringing to customers. These are consumer solutions that come out of our global brand group, which also help us fill momentum behind our products in our portfolio in the stores. So we're very excited about what we've got into play. There's a lot more detail that we'll be sharing in June at Investor Day. But right now, we're going to stay in the course because we're pleased with the momentum we're getting both in terms of our rebound in share and what we're seeing in the category. As you look at pricing and promotion in general, if you go back to June of 2014, we've actually seen a continued decline both in the level of promotions that we have in the market and the depth of those promotions. And that comes pulsing certainly out of holiday. You're going to see a normal spike-up in promotional activity during that O&D period, but it subsides after that and gets back to more normalized levels. And that's what we're seeing.

Okay, great. That's very helpful. Thank you, guys. Sorry if I repeated other questions. Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: No worries.

The next question comes from the line of John Faucher with JPMorgan. Please proceed.

Thank you and I'm going to repeat Bill's comment. I apologize if this has been covered already. Can you talk a little bit about sort of the raw material trends? And sort of two questions on this. How we should think about this over the next couple of quarters? And then maybe longer-term as we look at some of the potential for dyssynergies on the raw material side? As you fully separate the two companies, is purchasing going to be a negative leverage point? Thanks. Ward M. Klein - Chief Executive Officer & Director: Dan, do you want to get that? Daniel J. Sescleifer - Chief Financial Officer & Executive Vice President: Yeah. So on raw materials, John, we've been primarily focused on Q3. I think we're going to have some spike out of this. Obviously, petroleum costs are down and so that's a benefit to both businesses, so I would expect slightly positive raw material impacts in Q3. Longer-term, in terms of dyssynergies, yes, procurement dyssynergies are part of that calculation. And – but we do believe that overall and as we've said in the release and in the script – I know you didn't listen to the prepared comments, but basically, we think we can offset all dyssynergies going forward with other cost reductions. So yes, there will be some adverse impacts from separating the two procurement organizations. I'd like to defer specifics to the road shows in June because Brian [Hamm] and Sandy [Sheldon] will have more details at that point in time.

Any particular commodities that we would look at that would be an issue there? Or... Ward M. Klein - Chief Executive Officer & Director: I think it's anything that's jointly purchased, right, so packaging, I think, might be an example. Certainly, there's some benefits to having combined warehousing and distribution that we will lose going forward. So those are two examples.

Okay. Thank you.

At this time, there are no further questions in queue. I would now like to turn the call back to Mr. Ward for any closing remarks. Ward M. Klein - Chief Executive Officer & Director: Thank you, operator. And again, thank you, everyone, for listening in and for your questions and for your interest in this company as it embarks on its upcoming split. We'll, I'm sure, be seeing a lot of you here in June in New York. Have a good day.