FORWARD LOOKING STATEMENTS

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Transcription:

May 2015

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 1934. These risks and uncertainties may cause actual results to differ materially from our statements today. Visit www.tupperwarebrands.com or download our Investor Relations app 2

OUR GOING FORWARD OBJECTIVE Sustain Tupperware Brands position as the premier, relationship-based global marketer of quality innovative products and brands. 3

INVEST IN TUPPERWARE BRANDS EXPERIENCED GLOBAL MANAGEMENT TEAM POWERFUL BUSINESS MODEL STRATEGY TO INCREASE SALES FORCE AND ACTIVE SELLERS EMERGING MARKETS PENETRATION OPPORTUNITY OPERATING LEVERAGE TO INCREASE PROFITABILITY SIGNIFICANT RETURN OF CAPITAL TO SHAREHOLDERS 4

COMMONLY ASKED QUESTIONS Organizational structure o How are you organized, by country, by region and globally? o What is your level of visibility into the business? Levers for sustainable growth and to mitigate external forces Opportunities for growth near term next decade Uses of cash 5

HOW THE BUSINESS IS ORGANIZED Decentralized Structure Market: Managing Director Head of Sales Head of Marketing Head of Finance > Visibility Daily contact Sales Force 3 Global Regions: Americas Europe Africa & Middle East Asia Pacific Group President Heads of major functional areas > Weekly / Daily contact Managing Directors Corporate: CEO Leadership Development & Strategic focus COO Day to day operations Heads of major functional areas > Weekly: Reporting & Calls from markets Monthly: Monthly Performance Review, Formalized calls with markets 6

DISTRIBUTOR STRUCTURE BRAZIL Average Brazil Distributor Has about 1.5 Team Leaders 100 Managers 2,500 Consultants Sales by Distributor varies by geography 7

COUNTRY STRUCTURE BRAZIL Sales Office in Sao Paulo Plant in Rio de Janeiro 78 Distributors 118 Team Leaders 8,000 Unit Managers 200,000+ Total Sales Force Market Coverage 78 Distributors Sales Office Plant 8

SALES GROWTH FORMULA MORE SELLERS, SELLING MORE SALES FORCE SIZE Recruit MORE Retain MORE ACTIVATION Activate MORE PRODUCTIVITY Sell to MORE Customers Sell HIGHER Priced Products 9

LEVERS FOR SUSTAINABLE GROWTH POWERFUL BUSINESS MODEL Brand & Product Relationship Based Selling Method Real Opportunity Direct to Consumer Fundamentals 10

INNOVATIVE & DEMONSTRABLE PRODUCT COOKWARE & CUTLERY BAKING & OVENWARE KITCHEN PREP KITCHEN TOOLS & GADGETS FOOD CONSERVATION TABLETOP & SERVING MICROWAVE WATER & ON THE GO 11 Approximately 25% of Sales each year comes from new products introduced in the last two years Around 100 new concepts normally in the innovation pipeline

RELATIONSHIP BASED SELLING METHOD A group selling situation or party is held every 1.3 sec Rent Advertising 12

REAL & COMPELLING SALES FORCE OPPORTUNITY Earnings Opportunity Career Opportunity Distributor Team Leader Part-time Supplemental Income Super Seller Unit Manager Demonstrator 13

DIRECT TO CONSUMER FUNDAMENTALS Training Recognition Competition Motivation 14

STRENGTHEN THE CORE THROUGH RECRUIT MORE SELLERS MORE ACTIVE & PRODUCTIVE STAY LONGER 15

DIVERSIFIED GLOBAL PORTFOLIO 2014 SEGMENT SALES AS % OF TOTAL NINE MARKETS OVER $100M $200M + Brazil Fuller Mexico Indonesia $100M + China France Germany Malaysia & Singapore TW Mexico TW U.S. & Canada 16

EMERGING AND ESTABLISHED MARKETS Established Markets 14% of World s Population 34% of 2014 Sales Emerging Markets 86% of World s Population 66% of 2014 Sales 17

TUPPERWARE AND BEAUTY 80% Tupperware Branded Housewares 20% Beauty & Personal Care Products *Full Year 2014 18

LEVERS TO MITIGATE EXTERNAL FORCES Foreign Currency Raw Material Pricing Inflation Compression in consumer spending Hedge transaction & cash flow FX exposure/ Manage business in local currency Global Purchasing Council, product mix, promotional programs We own the shelf / Price with consumer inflation We are Sellers with our sales force taking us to consumers 19

Second Tier First Tier BASKET OF GLOBAL CURRENCIES Key Sales & Profit Currencies Euro Indonesian rupiah Mexican peso Brazilian real Malaysian ringgit Chinese renminbi 92% of 2014 sales and 100% of net profit from outside the U.S. 20

OPPORTUNITES FOR GROWTH 3rd Billion Emerging Middle Class Urbanization Technology Millennials 21

CHINA & INDIA ARE TWO OF OUR LARGEST OPPORTUNITIES FOR PENETRATION Under $100 Million in 2014 Sales 1 CONSULTANT PER 4,900 PEOPLE Over $100 Million in 2014 Sales 1 OUTLET PER 260,000 PEOPLE 22

WE STILL HAVE PENETRATION OPPORTUNITIES IN OUR LARGEST MARKETS 2.1 TUPPERWARE BRAZIL Over $200 million in 2014 sales NORTH NORTHEAST SOUTHEAST SOUTH CENTERWEST Market Coverage 78 Distributors 2.1 0.8 1.2 1.2 Sales Office Plant TUPPERWARE PENETRATION AVG 1.2 consultants/ 1,000 inhabitants TWO LARGEST COMPETITORS AVG 6.5 consultants/ 1,000 inhabitants 23

LEVERAGING TECHNOLOGY TO ENABLE THE SALES FORCE ENHANCE SALES FORCE DIGITAL TOOLS REACH MORE CONSUMERS ENGAGE MILLENNIALS 24

STRONG RECORD of GROWTH and of RETURNING VALUE 25

SOLID HISTORY of GROWTH 5% to 9% Local currency sales* growth each year 2007 2014 *See GAAP to non-gaap sales reconciliation for reported sales growth 26

STEADY MARGIN IMPROVEMENT 5% to 13.9% Annual Pre-tax ROS Improvement from 2003 to 2014* 70 bps Average annual local currency margin improvement from 2003 to 2014* *Pre-tax ROS shown is excluding items. See GAAP to non-gaap reconciliation 27

$Millions FREE CASH FLOW (as reported) GAAP Net Income includes impact of non-cash purchase accounting asset impairment charges GAAP Net Income includes impact of Venezuelan devaluations from balance sheet items $300 $250 $200 $150 $100 $50 $0 2009 2010 2011 2012 2013 2014 2015* Net Cash Flow before Financing Activities (Free Cash Flow) GAAP Net Income *High end of guidance range provided in April 22, 2015 Earnings Release. **Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm 28

DIVIDENDS AND SHARE REPURCHASES Dividends per Share $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 $0.22 $0.25 +20% $0.30 +20% $0.36 +72% $0.62 Announce 50% Payout target on EPS ex. items +10% EVEN $0.68 $0.68 YIELD 4.1%* 1996-2009 2010 2011 2012 2013 2014 2015 SHARE REPURCHASES 2007-2014 21.3 MILLION SHARES Annualized Dividend 2011 2012 $1.20 $1.44 2013 2014 $2.48 $2.72 For $1.3 BILLION 2015 $2.72 *Yield based on April 24, 2015 closing stock price of $66.41 29

WE VE RETURNED $33 PER SHARE FROM 2007 TO 2014 $40.00 $30.00 $20.00 $14.90 $19.82 $29.09 $33.35 $10.00 $4.84 $6.77 $1.53 $2.75 $- 2007 2008 2009 2010 2011 2012 2013 2014 Shares Repurchased Dividends Graph indicates cumulative return per share from 2007 to 2014 *2015 assumes no share repurchases, $132M in dividends paid, and 50.3m average diluted shares. Per share amounts are based on each year s diluted shares. 30

Outlook * Second Quarter 2015 Guidance 2015 Full Year Guidance USD Sales * (13)% to (11)% (10)% to (8)% GAAP EPS $0.99 $1.04 $3.80 $3.90 GAAP Pre-tax ROS 11.8 12.1% 11.3 11.4% Local Currency Sales +5% to 7% +4 to 6% EPS, excluding items ** $1.14 $1.19 $4.60 $4.70 Pre-tax ROS, excluding items 13.1% 13.4% 13.2% 13.3% FX Impact on EPS comparison, excluding items ($0.40) ($1.13) *Guidance issued as of the April 22, 2015 earnings release. Venezuelan operating activity was translated at 50 bolivars/$ in January 2015, and at the Simadi rate for the remainder of 1Q 2015. Expect to use the Simadi rate, which was approximately 195.0 as of April 20, 2015 to translate future operating activity. **GAAP to non-gaap reconciliation attached to 1Q 2015 earnings release 31

Full Year 2015 EPS * Outlook * Reflects April 22, 2015 high-end guidance. See information on GAAP basis in appendix 32

2015 FULL YEAR ROS OUTLOOK* Pre-Tax ROS, excluding items: 13.3% GAAP pre-tax ROS 11.4% 2014 Pre-Tax ROS 13.9% 2015 vs. 2014 translation FX -125 bp 2014 Pre-Tax ROS in Local Currency 12.7% 2015 LC Operating Margin Improvement +60 Incremental 2015 interest -8 Other/ Rounding 10 2015 High end pretax ROS 13.3% *Pre-tax ROS reflects high end April 22, 2015 guidance Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm 33

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 CAPEX $70 - $80 million a year Share repurchases 34

INVEST IN TUPPERWARE BRANDS EXPERIENCED GLOBAL MANAGEMENT TEAM POWERFUL BUSINESS MODEL STRATEGY TO INCREASE SALES FORCE AND ACTIVE SELLERS EMERGING MARKETS PENETRATION OPPORTUNITY OPERATING LEVERAGE TO INCREASE PROFITABILITY SIGNIFICANT RETURN OF CAPITAL TO SHAREHOLDERS 35

APPENDIX

CONSISTENTLY GROWING SALES & EPS Sales $million $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 Diluted EPS includes impact of non-cash purchase accounting asset impairment charges Diluted EPS includes impact from balance sheet items of Venezuelan devaluations 2009 2010 2011 2012 2013 2014 2015* Sales Diluted EPS Adjusted Diluted EPS EPS $Dollar *High end of guidance range provided in April 22, 2015 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm $7 $6 $5 $4 $3 $2 $1 $0 37

Non-GAAP FINANCIAL RECONCILIATION 2003 2004 2005 2006 2007 2008 2009 2010* Net Income (GAAP) 47.9 86.9 85.4 94.2 116.9 161.4 175.1 221.2 Adjustments: Gains on disposal of assets including insurance recoveries (3.6) (13.1) (4.0) (12.3) (11.8) (24.9) (21.9) Re-engineering and other restructuring costs 6.9 7.0 14.3 7.6 9.0 9.0 8.0 10.0 Debt refinancing costs associated with Sara Lee acquisition 29.1 Acquired intangible asset amortization 1.8 25.0 13.6 11.9 5.1 3.8 Purchase accounting intangibles and goodwill impairment 11.3 9.0 28.1 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 1.7 (4.0) Net Income (Adjusted) 48.8 83.3 90.5 109.6 141.2 169.7 196.1 231.0 * High end of 2010 outlook provided in July 19, 2010 Earnings Release 38

Non-GAAP FINANCIAL RECONCILIATION 2010 2011 2012 2013 Q4 2014 2014 Q1 2015 Q2 2015 * 2015 * Net Income (GAAP) $225.6 $218.3 $193.0 $274.2 $79.9 $212.0 $29.5 $52.3 $196.6 ADJUSTMENTS: Gains on disposal of assets including insurance (0.2) (3.8) (7.9) (0.7) (0.4) (2.7) recoveries (0.6) (0.7) Re-engineering and other restructuring costs 7.6 9.6 22.1 9.3 2.8 13.4 16.2 3.6 24.6 Impact of Venezuelan bolivar devaluation from 4.2 0.2 42.4 balance sheet positions 9.3 1.0 10.3 Swap impairment and debt cost write-off 19.8 Acquired intangible asset amortization 3.9 2.9 2.1 4.8 2.9 11.9 2.7 2.7 10.9 Purchase accounting intangibles and goodwill impairment 4.3 36.1 76.9 Income tax impact of adjustments (3.3) (9.6) (4.8) (3.5) 1.4 (2.4) (5.9) 0.2 (5.3) Net Income (Adjusted) $237.9 $273.3 $281.4 $288.3 $86.8 $274.6 $51.2 $59.8 $236.4 Adjusted ROS 13.9% 13.9% 14.1% 14.1% 16.9% 13.9 % 11.8% 12.1% 13.3% Average number of diluted shares (millions) 61.4 61.4 56.4 53.1 50.6 51.0 50.3 50.3 50.3 *High end of guidance range provided in April 22, 2015 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm 39

2009 THROUGH 2015 FULL YEAR GUIDANCE REPORTED AND LOCAL CURRENCY SALES 2009 2010 2011* 2012 2013 2014 2015** Sales $2,128 $2,300 $2585 $2,584 $2,672 $2,606 $2,388 Reported Sales Growth (2)% 8% 12% 0% 3% (2)% (8)% Local Currency Sales Growth 6% 6% 9% 5% 6% 5% 6% * 2011 *2011 included had 53 weeks. compared with 52 weeks in 2010 **High**2015 end of assumes guidance the range high-end included of local in April currency 22, sales 2015 growth earnings release. 40

VENEZUELA FX IMPACT IN 2014 AND 2015 1H 2014 Q3 2014 Q4 2014 FY 2014 Q1 Q2 FY 2015 (1) 2015 (1) 2015 (1) Total Company Percentage Point Impact on Sales from Changes in Rate Translation Impact of Changes in Rate on Diluted EPS Comparison (0.7pp) (3.5pp) (3.4pp) (2.1pp) (4.7pp) (3.3pp) (2.3pp) ($0.04) ($0.10) ($0.08) ($0.21) ($0.13) ($0.13) ($0.28) Re-measurement Impacts on Net Monetary Assets for 1H 2014 and gain on conversion of ($0.51) $0.09 ($0.08) (3) ($0.50) ($0.11) (4) N/A N/A bolivars to U.S. dollars (Q3-2014) (2) Transaction Impacts on cost of sales at Stronger Rates than Sales (2) ($0.12) ($0.23) $0.01 (3) ($0.35) ($0.03) (4) ($0.03) (4) ($0.06) (4) (1) The bolivar to U.S. dollar exchange rate used in translating the Company s first quarter 2014 operating activity was 6.3 bolivars to the U.S. dollar, was 10.8 bolivars to the U.S. dollar in the second quarter and was 50.0 in the second half of 2014 and in January 2015. In February 2015, the Venezuelan government launched an overhaul of its foreign currency exchange structure for obtaining U.S. dollars, eliminating the SICAD 2 auction process and introducing the Marginal Currency System, or Simadi, which was approximately 195.0 bolivars to the U.S. dollar as of April 20, 2015. The Company's outlook used the Simadi rate to translate its February and March 2015 and expects to use it to translate future operating activity. (2) The pretax expense impact from amounts on the balance sheet when the bolivar devalued are included in the U.S. GAAP earnings per share and return on sales data above, but not in the data excluding items. (3) Reflects tax recognized on an annualized basis under U.S. GAAP. (4) With the change to the Simadi exchange rate there will be a negative profit impact related to its net monetary assets and inventory of about $9.4 million. This change in rates in February 2015 has also triggered a long-term fixed write off of $13.5 million in the first quarter of 2015. 41

May 2015