Presentation Transcript

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 www.tupperwarebrands.com 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.
3. Sustain Tupperware Brands position as the premier, relationship-based global marketer of quality innovative products and brands. Our Going Forward Objective
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
5. How the Business is Organized Visibility Decentralized Structure Market: Managing Director Head of Sales Head of Marketing Head of Finance 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. Typical Country Structure Distributor Model TUPPERWARE GERMANY Est. 1962 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
7. Germany Distributor Structure Average German distributor has 2 Team Leaders 30 Unit Managers 450 Demonstrators Sales per Distributor varies by market
8. Levers For Sustainable Growth Multi Local System Formula Based on 4 Drivers: Product Innovation Entertaining & Informative Selling Method Compelling Sales Force Opportunity & Structure Solid Business Fundamentals
9. SuccessDriven by theModel SellingMethod Brand&Product TRUSTED, POWERFUL AND.ASPIRATIONAL BRAND RELATIONSHIPBASED VALUEADDED DEMONSTRATION HIGHQUALITY, INNOVATIVEAND DEMONSTRABLE PRODUCTS ENABLES PENETRATION Fundamentals Real Opportunity PRIMARYDRIVERS: RECRUIT,TRAIN, MOTIVATE SALESORSALES MANAGEMENT REINFORCEDBY: CONTACT,COMPETITION, RECOGNITION SUPPLEMENTALINCOME TOSERIOUSMONEY 9 9
10. Product Innovation Cutlery & Cookware Kitchen Tools & Gadgets Food Storage Baking & Ovenware 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)
11. Entertaining & Informative Selling Method Retail Rent Advertising Group Presentation = Party Party every 1.3 seconds
12. Compelling Sales Force Opportunity & Structure Earning Opportunity Career Opportunity Distributor Team Leader Part Time Supplemental Income Super Seller Unit Manager Demonstrator
13. Solid Business Fundamentals Training Recognition Competition Motivation
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
15. Balanced Global Portfolio 2013 Full Year Segment Sales as % of Total
16. EmergingAND EstablishedMarkets EstablishedMarkets 35%OF 2013SALES 14% WORLDPOPULATION EmergingMarkets 65%OF2013SALES 86%WORLDPOPULATION WE'REAN AND STORY! 16
17. Tupperware AND Beauty 21% Beauty & Personal Care Products 79% Tupperware Branded Housewares *Full Year 2013
18. TWB – Supported by Social Media Social Network Living Cook Books Interactive Selling System TupperwareHostesses and Fans 2.9M Sales Force Party every 1.3 sec Driven by Earning Opportunity and Career path Host 2 Parties per Year Affiliation Allegiance Advocate Sales Force Webinars 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.
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 2010
20. DynamicEmergingMarketSales Turkey +32% China +22% TW Mexico +6% India +12% Venezuela +35% Indonesia +35% Malaysia/ Singapore +11% Brazil +27% Argentina +27% EMERGING MARKETS 65% OF 2013 SALES +13% LC FY 2013 20 20
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.
22. Consistently Growing Sales & EPS Diluted EPS includes impact of Venezuelan devaluation from balance sheet items Diluted EPS includes impact of non-cash purchase accounting asset impairment charges Sales $million EPS $Dollar *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: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm
23. Free Cash Flow(as Reported) GAAP Net Inc. includes impact from Venezuelan devaluation on balance sheet items $millions GAAP Net Inc. includes Impact of non-cash Purchase Accounting Asset impairment charges * 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: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm
24. Business Use of Cash Full Year 2014 Full Year 2013 Invest in the Business Invest in the Business Quarterly Dividends Declared 72% increase $2.48 per share annualized $128M Open Market Share Repurchases $375M in 2013 4.6 Million Shares Quarterly Dividends Declared 10% increase $2.72 per share annualized $135M Open Market Share Repurchases $185M in 2014 Cash Returned to Shareholders > $6.00* Cash Returned to Shareholders $9.54* *Based on full year diluted shares and for 2014 guidance provided on April 23, 2014
25. Quarterly Dividends Declared Announce 50% Payout target on trailing EPS ex. items +10% +72% +20% +20% Annualized Dividend $1.20 1.44 2.48 2.72
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: $5.66 - $5.81 Up 12-15% LC, 4 - 7% USD, vs. $5.43 in 2013 GAAP $4.97 to $5.12 38 cents negative FX on EPS excluding items Pre-Tax ROS, excluding items: 14.4% GAAP pre-tax ROS 12.9% Longer range ROS increase target 50 bp 2014 LC Operating Margin Improvement +90 Incremental 2014 interest -31 2014 vs. 2013 translation FX -42 Other+13 High end pretax ROS fcst 30 bp *Guidancerange provided in April 23, 2014 Earnings Release. ROS high end. Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm
27. Outlook* *Guidance range provided in April 23, 2014 Earnings Release. Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm -Venezuela first quarter operating activity translated at 6.3 Bs/$. Monetary assetson the balance sheet at the end of March 2014 and operating activity for reminder of 2014 translated at 10.8 Bs/$ .
28. Full Year 2014 EPS* Outlook 7% Increase 15% Increase $5.05 *High end of guidance range excluding items, provided in April 23, 2014 earning release.
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, 2014.
30. Non-GAAP Financial Measures Reconciliation *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: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm
31. Building C O N F I D E N C E Together March 2013