Building C O N F I D E N C E Together. Rick Goings, Chairman & CEO June 2014 March 2013

Transcription

1 Building C O N F I D E N C E Together Rick Goings, Chairman & CEO June 2014 March 2013

2 Forward Looking Statements We are making some forward looking statements today that use words like outlook or target or similar predictive words. Such forward looking statements involve risks and uncertainties detailed in our recent periodic reports as filed in accordance with the Securities and Exchange Act of These risks and uncertainties may cause actual results to differ materially from our statements today. 2

3 Our Going Forward Objective Sustain Tupperware Brands position as the premier, relationship-based global marketer of quality innovative products and brands. 3

4 Commonly Asked Questions Organizational Structure - how are you organized, by country, by region and globally; and what is your level of visibility into the business Levers for sustainable growth and to mitigate external forces Runway left in the business near term next decade Uses of Cash 4

5 How the Business is Organized Visibility Decentralized Structure Daily contact Sales Force Weekly / Daily contact Managing Directors Weekly: Reporting & Calls from markets Monthly: Monthly Performance Review, Formalized calls with markets Market: Managing Director Head of Sales Head of Marketing Head of Finance 3 Global Regions: Americas Europe Africa & Middle East Asia Pacific Group President Heads of major functional areas Corporate: CEO Leadership Development & Strategic focus COO Day to day operations Heads of major functional areas 5

6 Typical Country Structure Distributor Model TUPPERWARE GERMANY Est Headquarters in Frankfurt/Main Belgium Manufacturing & Warehouse Logistics center in Eppertshausen 130 Distributors Each controls a specific geography Approx. 270 Team Leaders Tours Manufacturing Approx. 4,050 Unit Managers Approx. 62,000 Demonstrators 6

7 Germany Distributor Structure Average German distributor has 2 Team Leaders 30 Unit Managers 450 Demonstrators Sales per Distributor varies by market 7

8 Levers For Sustainable Growth Product Innovation Entertaining & Informative Selling Method Compelling Sales Force Opportunity & Structure Solid Business Fundamentals 8

9 Success Driven by the Model Brand & Product TRUSTED, POWERFUL AND. ASPIRATIONAL BRAND HIGH QUALITY, INNOVATIVE AND DEMONSTRABLE PRODUCTS Selling Method RELATIONSHIP BASED VALUE ADDED DEMONSTRATION ENABLES PENETRATION Real Opportunity SALES OR SALES MANAGEMENT Fundamentals PRIMARY DRIVERS: RECRUIT, TRAIN, MOTIVATE SUPPLEMENTAL INCOME TO SERIOUS MONEY REINFORCED BY: CONTACT, COMPETITION, RECOGNITION 9 9

10 Product Innovation Cutlery & Cookware Kitchen Tools & Gadgets Baking & Ovenware Food Storage Table Top & Serving Microwave Kitchen Prep On-the-Go & Water Approximately 25% of Sales each year to come from new products (products introduced in the last 2 years) 10

11 Advertising Entertaining & Informative Selling Method Group Presentation = Party Party every 1.3 seconds Retail Rent 11

12 Compelling Sales Force Opportunity & Structure Earning Opportunity Career Opportunity Distributor Part Time Supplemental Income Super Seller Team Leader Unit Manager Demonstrator 12

13 Solid Business Fundamentals Training Recognition Competition Motivation 13

14 Levers to Mitigate External Forces Foreign Currency Raw Material Pricing Inflation Compression in consumer spending Hedge transaction FX exposure/ Manage business in local currency Global Purchasing Council We own the shelf / Price with consumer inflation We are Sellers 14

15 Balanced Global Portfolio 2013 Full Year Segment Sales as % of Total Beauty North America, 12% South America, 14% Europe, 29% TW North America, 14% Asia Pacific, 31% 15

16 Emerging AND Established Markets Established Markets 35% OF 2013 SALES 14% WORLD POPULATION Emerging Markets 65% OF 2013 SALES 86% WORLD POPULATION WE'RE AN AND STORY! 16

17 Tupperware AND Beauty 79% Tupperware Branded Housewares 21% Beauty & Personal Care Products *Full Year

18 TWB Supported by Social Media Living Cook Books Interactive Selling System Social Network Tupperware Hostesses and Fans Sales Force Webinars 2.9M Sales Force Party every 1.3 sec Driven by Earning Opportunity and Career path Host 2 Parties per Year Affiliation Allegiance Advocate itup (think Rosetta Stone) No Rent No Advertising Promoters of Brand & Products Over 5 million fans on Facebook and almost 7 million followers on Twitter and Weibo join us to share photos and stories about experiences with Tupperware Brands. Our videos, showcasing product demonstrations, have been viewed on YouTube over 6 million times. More than 5 million visitors come to our consumer web sites each month. Our websites provide consumers with the ability to view product information, browse online catalogs, or find a local consultant for hosting parties, buying products, and becoming new recruits in over 60 different countries. 18

19 Runway Emerging Market Penetration Global Middle Class expected to grow from 1.8B to 3.2B by 2020* Asia Pacific Middle Class expected to grow from 500 million to 1.7 billion by 2020 Central & South America Middle Class expected to grow 70M, almost 40%, by 2020 White space in existing markets New products and categories Under served urban centers and populations, millennials are entrepreneurs *Source OECD, The Emerging Middle Class in Developing Countries, January

20 Dynamic Emerging Market Sales TW Mexico +6% Turkey +32% Venezuela +35% Brazil +27% India +12% Malaysia/ Singapore +11% China +22% Indonesia +35% EMERGING MARKETS 65% OF 2013 Argentina +27% SALES % LC FY

21 Basket of Global Currencies Key Sales & Profit Currencies Euro Indonesian Rupiah Mexican Peso Brazilian Real Malaysian Ringgit >90% of 2013 sales and profit from outside the U.S. 21

22 Consistently Growing Sales & EPS Sales $million $3,000 Diluted EPS includes impact of non-cash purchase accounting asset impairment charges Diluted EPS includes impact of Venezuelan devaluation from balance sheet items EPS $Dollar $7 $2,500 $6 $2,000 $5 $1,500 $4 $3 $1,000 $2 $500 $1 $ * Sales Diluted EPS Adjusted Diluted EPS $0 *High end of guidance range provided in April 23, 2014 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: 22

23 $millions $300 $250 Free Cash Flow (as Reported) GAAP Net Inc. includes Impact of non-cash Purchase Accounting Asset impairment charges GAAP Net Inc. includes impact from Venezuelan devaluation on balance sheet items $200 $150 $100 $50 $ * Net Cash Flow before Financing Activities (Free Cash Flow) GAAP Net Income * High end of guidance range provided in April 23, 2014 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: 23

24 Business Use of Cash Full Year 2013 Full Year 2014 Invest in the Business Invest in the Business Quarterly Dividends Declared 72% increase Open Market Share Repurchases Quarterly Dividends Declared 10% increase Open Market Share Repurchases $2.48 per share annualized $128M $375M in Million Shares $2.72 per share annualized $135M $185M in 2014 Cash Returned to Shareholders $9.54* Cash Returned to Shareholders > $6.00* *Based on full year diluted shares and for 2014 guidance provided on April 23,

25 Quarterly Dividends Declared Dividend per Share $0.80 $0.70 $0.60 Announce 50% Payout target on trailing EPS ex. items +72% $ % $0.68 $0.50 $0.40 $0.30 $0.20 $ % $ % $ % $0.36 Annualized Dividend 2011 $ $0.10 $

26 2014 Full Year Outlook* Local Currency Sales: +5% to 7% Emerging markets up low double digit Established markets even with prior year to down low single digit EPS Excluding Items: $ $5.81 Up 12-15% LC, 4-7% USD, vs. $5.43 in 2013 GAAP $4.97 to $ cents negative FX on EPS excluding items Pre-Tax ROS, excluding items: 14.4% GAAP pre-tax ROS 12.9% Longer range ROS increase target 50 bp 2014 LC Operating Margin Improvement +90 Incremental 2014 interest vs translation FX -42 Other +13 High end pretax ROS fcst 30 bp *Guidance range provided in April 23, 2014 Earnings Release. ROS high end. Impact of changes in foreign currency versus prior year are updated monthly and posted on: 26

27 Outlook* Q Full-year 2014 USD Sales (1) to 1% 0 to 2% GAAP EPS $1.24 $1.29 $4.97 $5.12 GAAP Pre-tax ROS % % Local Currency Sales +5 to 7% +5 to 7% EPS, excluding items $ $1.49 $ $5.81 Pre-tax ROS, excluding items % % FX Impact on EPS comparison, excluding items ($0.13) ($0.38) *Guidance range provided in April 23, 2014 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: -Venezuela first quarter operating activity translated at 6.3 Bs/$. Monetary assets on the balance sheet at the end of March 2014 and operating activity for reminder of 2014 translated at 10.8 Bs/$. 27

28 Full Year 2014 EPS* Outlook 7% Increase $ % Increase $5.90 $0.24 $5.81 $5.70 $5.50 $5.43 ($0.38) $0.68 $5.30 $5.05 $5.10 $4.90 ($0.12) ($0.08) $0.04 $4.70 $ FX 2013 at 2014 Rates Int Exp Tax Unalloc Ops Share Imp *High end of guidance range excluding items, provided in April 23, 2014 earning release. 28

29 Long Range Outlook* Double Digit EPS Growth driven by: Local Currency Sales: +6% to 8% Emerging markets about 10% Established markets low single digit Pre-Tax ROS, excluding items: 50 bps improvement per year into the mid- to high-teens Some offset from tax rate: going to 27-28% over time Share repurchases * As of April 23,

30 Non-GAAP Financial Measures Reconciliation Q Q2 2014* 2014* Net Income (GAAP) $218.3 $193.0 $274.2 $52.2 $66.6 $260.7 Adjustments: Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.7) (1.8) (0.1) (1.9) Re-engineering and other restructuring costs Impact of Venezuelan bolivar devaluation on balance sheet positions Swap impairment and debt cost write-off 19.8 Acquired intangible asset amortization Purchase accounting intangibles and goodwill impairment Income tax impact of adjustments (9.6) (4.8) (3.5) (3.7) (1.4) (6.7) Net Income (Adjusted) $273.3 $281.4 $288.3 $66.9 $76.8 $295.5 Adjusted ROS 13.9% 14.1% 14.1% 13.5% 14.6% 14.4% Average number of diluted shares (millions) *High end of guidance range provided in April 23, 2014 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: 30

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32 March 2013 Building C O N F I D E N C E Together