June 2018 Mike Poteshman. Executive VP & CFO

Transcription

1 June 2018 Mike Poteshman Executive VP & CFO

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. Visit

3 Tupperware Business Model Brands & Products Entrepreneurial Opportunity Direct Selling Fundamentals Demonstration Selling

4 Power of our brand Well known & respected Tupperware brand: Innovation is key Relatively low product line competition Commands strong price points & margins Ability to extend to multiple categories

5 Award-Winning Innovative Product Designs FOOD CONSERVATION MOVE / ON THE GO

6 FAST MICROWAVE OVENWARE CHEF COOKING DRINKING SOLUTIONS STEAMING Innovative Products FOOD CONSERVATION MOVE / ON THE GO KITCHEN ESSENTIALS KITCHEN ESSENTIALS

7 Entrepreneurial Business Opportunity Independent Sales Consultant Micro Finance Free Training Career Path Consultant Manager Team Leader Distributor Demonstrates & sells product Income based on personal sales Builds a team of 3-5 consultants Income based on total team sales plus personal sales Develops managers within her group Income based on sales of the group, total team sales and personal sales Leads & builds a sales organization Income based on organizational sales

8 Power of demonstration selling Demonstration Unlocks Features & Benefits Education plus Entertainment Allows Selling of High Price Point Items Increases Hourly Earnings Brand Building Sales Force Additions Access to New Hostesses & Consumers

9 Direct Selling Fundamentals Grow the Sales Force + Support Consistent Activity Recruit New Sellers Meetings & Events Onboarding & Training Group Demonstration Leadership Development Recognition & Rewards

10 Why Invest Competitive Business Model Diversified Portfolio for Sustainable Performance Opportunities for Above Average Growth Significant Return of Capital to Shareholders

11 Our Global Business Share of 2017 Sales Americas* 43% Europe 24% 36% in 2006 Asia Pacific 33% 44% in % in 2006 *Americas includes North America, 24%, and South America, 19%. 11

12 Seven units over $100 million in 2017 sales $200 + M U.S. & Canada $200 + M China $100 + M Tupperware Mexico $100 + M Fuller Mexico $300 + M Brazil $100 + M Germany $100 + M Indonesia 91% of 2017 sales and 100% of net profit from international operations. 12

13 Basket of Global Currencies Key Sales and Profit Currencies: Brazilian real Chinese renminbi Euro Indonesian rupiah Mexican peso 13

14 Solid history of growth 4% CAGR* local currency sales 5.0% to 14.6%** pretax ROS in 2003 & bps** annual average Pretax ROS improvement from 2003 to 2017 *See appendix for the Company s reported sales from 2007 to 2017 and annual basis point improvement in local currency **Pre-tax ROS shown is excluding items. See GAAP to non-gaap reconciliation in the appendix 14

15 Cash producer - free cash flow $400 GAAP Net Income includes non-cash purchase accounting asset impairment charges GAAP Net Income includes Venezuelan devaluations from balance sheet items GAAP Net Income included significant, non-cash charges related to goodwill impairment and new U.S. tax law enactment $200 $- $(200) * $(400) Net Cash Flow before Financing Activities GAAP Net Income *High-end outlook as of April 25, 2018 earnings release. 15

16 Growth Opportunities Strengthen the Core Business Model Extend our Access Increase Penetration in Emerging Markets

17 Strengthen the Core Business Model with: Better Onboarding Utilize Success Formulas More Demonstration Selling Enables her to gain skills, increase her confidence and grow her results Impacts Sales Force retention Specific & consistent activities that relate to performance objectives Hands-on product experiences to engage and impress customers All these increase her ENGAGEMENT

18 Extend our Access with: Digital Tools Contact Points Brand Ambassador Building our e-commerce and digital tools to enhance personal relationships and consumer engagement Branded Tupperware locations that are close and convenient to the Sales Force and Consumers Keeping former Sales Consultants connected as preferred customer - Special Offers - Loyalty Programs 18

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21 Increase Penetration in Emerging Markets 85% of the world s population live here Relatively weak retail infrastructure outside urban centers Growing Middle Class who want quality products Low percentage of Women work outside the home The Tupperware Effect* 1. Microfinance her 2. Give her FREE training {3. Provide a business coach *Source: Newsweek Magazine 21

22 Emerging Market Growth Emerging Markets 69% of Sales in % CAGR from 2007 to 2017* Established Markets 31% of Sales in 2017 (3)% CAGR from 2007 to 2017* * sales restated in constant currency. 22

23 Biggest Penetration Opportunity - China China Over $200 million sales in ,400 experience studios and growing Leverage digital marketing Population: 1.4 Billion For Perspective: Brazil s population is 200 million; yielded $300 + M sales in

24 Face-to-Face AND Online Engagement Social Media or Walk In First Purchase Membership Invite (70% of Sales from Members) Digital Engagement Future Purchases Membership Items TUP Member WeChat Targeted Content Social Media Lifestyle Content Videos Recipes Online Games Promotional Offers Online & Offline Offline Sales Commerce Scan QR code Recruit Contact Engage Purchase 24

25 Capital Allocation Approach Cash Flow from Operating net of Investing Activities 1 Dividend payout based on 50% of trailing year s EPS without items 2 Manage Debt under leverage target of 1.75x Net Debt to EBITDA* 3 Repurchase shares in the open market with remaining cash and debt capacity Allows for Flexibility * Over time. Announced opportunistic repurchase of $200M on April 25, Leverage ratio above 1.75X. 25

26 Why Invest Competitive Business Model Diversified Portfolio for Sustainable Performance Opportunities for Above Average Growth Significant Return of Capital to Shareholders 26

27 FINAL Thought: Biggest Penetration Opportunities Top 5 Populations United States & Canada: 360 million India: 1.3 billion China: 1.4 billion Brazil: 200+ million Indonesia: 260 million 27 27

28 Appendix 28

29 Non-GAAP Financial Reconciliation Net Income (GAAP) $47.9 $86.9 $85.4 $94.2 $116.9 $161.4 $175.1 $225.6 Adjustments: Gains on disposal of assets including insurance recoveries (3.6) (13.1) (4.0) (12.3) (11.8) (24.9) (21.9) (0.2) Re-engineering and other restructuring costs Debt refinancing costs associated with Sara Lee acquisition 29.1 Acquired intangible asset amortization Purchase accounting intangibles and goodwill impairment Cumulative effect of accounting change 0.8 Costs associated with implementing 2007 credit agreement 9.6 Income tax impact of adjustments (2.4) 2.5 (36.9) (4.9) (7.4) (3.3) Net Income (Adjusted) $48.8 $83.3 $90.5 $109.6 $141.2 $169.7 $196.1 $

30 Non-GAAP Financial Reconciliation Q Q2 2018* 2018* Net Income (GAAP) $218.3 $193.0 $274.2 $214.4 $185.8 $223.6 $(265.) $35.7 $61.9 $211.7 Adjustments: Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.7) (2.7) (13.7) (27.3) (9.1) (2.2) (9.9) (12.1) Other Income from real estate operations sold (0.9) Re-engineering and other restructuring costs (includes Pension Settlement costs) Impact of Venezuelan bolivar devaluation from balance sheet positions Acquired intangible asset amortization Swap impairment and debt cost write-off 19.8 Purchase accounting intangibles and goodwill impairment Income tax impact of adjustments (9.6) (4.8) (3.5) (4.8) (1.8) Net Income (Adjusted) $273.3 $281.4 $288.3 $274.6 $220.5 $222.5 $248.3 $ $239.1 Pre tax Adjusted ROS 13.9% 14.1% 14.1% 13.9 % 12.8% 13.4% 14.6% 12.5% 15.7% 15.5% Average number of diluted shares (millions) * High end of guidance range provided in April 25, 2018 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: 30

31 Sales * * ** Sales $2,162 $2,128 $2,300 $2,585 $2,584 $2,672 $2,606 $2,284 $2,213 $2,256 $2,271 Reported Sales Growth Local Currency Sales Growth*** 9% (2)% 8% 12% 0% 3% (2)% (12)% (3)% 2% 1% 8% 6% 6% 9% 5% 6% 5% 4% 2% 1% 0% * 2011 and 2016 included 53 weeks assessed to have a 1-point impact on year-over-year comparisons. ** High-end of guidance range included in April 25, 2018 earnings release. Includes a 2-point negative impact from closure of Beauticontrol in 2017 and the merging of the Tupperware and NaturCare units in Japan. *** Calculated by comparing sales with prior year translated at the current year exchange rate. 31

32 June 2018 Mike Poteshman Executive VP & CFO