Our new strategy, Our new financial reporting structure. May 4, 2017

Transcription

1 Our new strategy, Our new financial reporting structure May 4,

2 Leading portfolio of brands and Ball TMs Ball Corporation, used under license Hearthmark, LLC. All Rights Reserved. 2

3 Reaches hundreds of millions of consumers every day 3

4 Strategic clarity drives choices What we believe Ambition Business model We put the consumer at the heart of all that we do. Growth is the engine that powers us. Build meaningful relative market share advantage and become a truly international company. Leverage leading brands in large and fragmented markets, responsive to activity and with low cost of growth. How we win How we work Building our team Big brand activity, big impact with big customers, reach the consumer where they want to buy. Money flows to growth, we drive choices into action, we constantly increase ambition since good enough never is. We are transformative leaders that embrace a dynamic and bold agenda. When we grow, the team grows. 4

5 Two operating models 1 2 Development & Delivery Model Investment in Insights, Ideation and Innovation, Brand Communications, International expansion Complimented by execution led growth and broad assortment and availability in major channels Entrepreneurial model General manager led business model, empowered choices with budget framework Selectively leverage corporate capabilities at best cost Development & Delivery growth model not yet affordable in this model 5

6 Development & Delivery divisions Writing Appliances & Cookware Consumer & Commercial Outdoor & Recreation Food Baby Home Fragrance Fishing and Ball TMs Ball Corporation, used under license Hearthmark, LLC. All Rights Reserved. 6

7 Entrepreneurial divisions Jostens Waddington Process Solutions Safety & Security Home & Family Team Sports Fine Writing 7

8 2017 segment reporting structure Appliances & Cookware Writing Consumer & Commercial Outdoor & Recreation Food Fine Writing Waddington Fishing Baby Jostens Safety & Security Team Sports Home Fragrance Other Process Solutions Home & Family Held for Sale* * Includes Tools (excluding Dymo industrial labeling), which the Company divested in March 2017, Winter Sports, Fire Building, and Lehigh 8

9 Percent segment net sales to 2017 segments Legacy Reporting Segments Live 95% 49% 37% 100% Learn <1% 23% 100% 4% Work 42% 25% 100% Play 65% 20% Other 5% 9% 12% 100% 17% 96% 9

10 Quarterly Sales Restated Under New Segments NEWELL BRANDS INC. Core Sales Analysis by Segment Adjusted Pro Forma Basis (Unaudited) (Proforma) [1] $ in Millions For the three months ended March 31, For the three months ended June 30, Divestitures [3] Base Business Currency Impact Core Sales [2] Divestitures (Proforma) [1] [3] Base Business Currency Impact Core Sales [2] LIVE 1,028.3 (50.4) LIVE 1,241.6 (63.9) 1,177.7 (8.0) 1,169.7 LEARN LEARN (4.7) WORK (23.6) WORK (27.6) (5.7) PLAY (0.8) PLAY (1.2) (3.8) OTHER (332.6) OTHER (307.4) (2.1) TOTAL COMPANY $ 3,332.8 $ (407.4) $ 2,925.4 $ 10.0 $ 2,935.4 TOTAL COMPANY $ 4,236.9 $ (400.1) $ 3,836.8 $ (24.3) $ 3,812.5 Less: Jarden Acquisition $ (2,017.9) Less: Jarden Acquisition $ (378.3) (Reported) $ 1,314.9 (Reported) $ 3,858.6 For the three months ended September 30, For the three months ended December 31, (Reported) [1] Divestitures [3] Base Business Currency Impact Core Sales [2] Divestitures (Reported) [1] [3] Base Business Currency Impact Core Sales [2] LIVE 1,450.2 (75.5) 1,374.7 (5.4) 1,369.3 LIVE 1,679.8 (35.5) 1, ,656.5 LEARN (6.2) LEARN (0.6) WORK (23.2) (3.1) WORK (35.7) PLAY (0.8) (5.1) PLAY (0.2) OTHER (317.7) (3.4) OTHER (397.9) TOTAL COMPANY $ 3,954.6 $ (417.2) $ 3,537.4 $ (23.2) $ 3,514.2 TOTAL COMPANY $ 4,135.9 $ (469.3) $ 3,666.6 $ 19.4 $ 3,

11 Annual Sales Restated Under New Segments NEWELL BRANDS INC. Core Sales Analysis by Segment Adjusted Pro Forma Basis (Unaudited) (Proforma) [1] $ in Millions For the twelve months ended December 31, Divestitures [3] Base Business Currency Impact Core Sales [2] LIVE 5,399.9 (225.3) 5,174.6 (0.2) 5,174.4 LEARN 2, ,730.6 (11.0) 2,719.6 WORK 2,798.9 (110.1) 2,688.8 (2.6) 2,686.2 PLAY 2,549.7 (3.0) 2,546.7 (3.5) 2,543.2 OTHER 2,181.1 (1,355.6) (0.8) TOTAL COMPANY $ 15,660.2 $ (1,694.0) $ 13,966.2 $ (18.1) $ 13,948.1 Less: Jarden Acquisition $ (2,396.2) (Reported) $ 13,264.0 (1) Includes pre-acquisition Jarden net sales from January 1, to March 31, for three months ended March 31,, from April 1, to April 15, for the three months ended June 30,, and from January 1, to April 15, for the twelve months ended December 31,. (2) "Core Sales" is determined by applying a fixed exchange rate, calculated as the 12-month average in, to the current and prior year local currency sales amounts, with the difference between the change in "As Reported" sales and the change in "Core Sales" reported in the table as "Currency Impact". Core Sales Growth excludes the impact of currency, acquisitions and divestitures. (3) Divestitures include both actual and planned divestitures comprised of the Levolor and Kirsch window coverings brands ("Décor") and the Tools business (excluding Dymo industrial labeling), which the Company divested in June and March 2017, respectively, both in the Other segment; as well as the planned divestitures of businesses held for sale, including two winter sports units, Völkl and K2, Lehigh and the Fire building business, in the Other segment, Teutonia and the Humidifiers and Fans business within the Live segment, and Rubbermaid Consumer Storage business and the planned exit of a distribution agreement with Sprue Aegis (during the first quarter of 2017) within the Work segment. 11

12 Quarterly Operating Income Restated Under New Segments NEWELL BRANDS INC. Financial Worksheet - Segment Reporting $ in Millions Three months ended March 31, Three months ended June 30, Reported Reported Normalized Normalized Reported Reported Normalized Normalized Operating Operating Excluded Operating Operating Operating Operating Excluded Operating Operating Income Margin Items (1) Income Margin Income Margin Items (1) Income Margin LIVE % % LIVE 1, % % LEARN % % LEARN % % WORK % % WORK % % PLAY 61.1 (2.1) (3.4)% (2.1) (3.4)% PLAY % % OTHER % % OTHER % % RESTRUCTURING (17.7) % 17.7 % RESTRUCTURING (11.0) % 11.0 % CORPORATE (41.0) % 23.5 (17.5) % CORPORATE (130.6) % 72.7 (57.9) % $ 1,314.9 $ % $ 46.4 $ % $ 3,858.6 $ % $ $ % Three months ended September 30, Three months ended December 31, Reported Reported Normalized Normalized Reported Reported Normalized Normalized Operating Operating Excluded Operating Operating Operating Operating Excluded Operating Operating Income Margin Items (1) Income Margin Income Margin Items (1) Income Margin LIVE 1, % % LIVE 1, % % LEARN % % LEARN % % WORK % % WORK % % PLAY % % PLAY % % OTHER % % OTHER % % RESTRUCTURING (13.0) % 13.0 % RESTRUCTURING (33.2) % 33.2 % CORPORATE (90.1) % 52.2 (37.9) % CORPORATE (100.6) % 46.6 (54.0) % $ 3,954.6 $ % $ $ % $ 4,135.9 $ % $ $ % 12

13 Annual Operating Income Restated Under New Segments NEWELL BRANDS INC. Financial Worksheet - Segment Reporting $ in Millions For the year ended December 31, Reported Reported Normalized Normalized Operating Operating Excluded Operating Operating Income Margin Items (1) Income Margin LIVE 4, % % LEARN 2, % % WORK 2, % % PLAY 1, % % OTHER 1, % % RESTRUCTURING (74.9) % 74.9 % CORPORATE (362.3) % (167.3) % $ 13,264.0 $ 1, % $ $ 2, % (1) Excludes costs associated with Project Renewal ($60.0 million); Graco product recall costs ($0.7 million); amortization of acquired intangible assets ($154.7 million); divestiture costs ($8.4 million), primarily associated with the Décor business and the planned divestiture of Tools (excluding Dymo Industrial); Jarden integration costs ($199.6 million), primarily related to personnel and advisory services; Jarden transaction costs ($61.7 million); and costs related to the fair value step-up of Jarden inventory($479.5 million). 13