November Rick Goings 2016 Chairman & CEO Forward looking - - PowerPoint PPT Presentation

Rick Goings

Chairman & CEO

November 2016

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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

• ur 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

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Agenda

Business Model Diversified Portfolio Growth Opportunities Financial Performance Uses of Cash

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Powerful Business Model

Group Demonstration Selling Brands & Products Business Fundamentals Sales Force Opportunity

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Power of our brand

The well known, aspirational Tupperware brand along with the channel is powerful:

• Relatively low product line competition
• In our category, low channel competition
• Allows maintenance of a strong gross margin

supported by innovation & unique features & benefits

• Ability to sell flanker & subcategories

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Innovative and demonstrable product

OVENWARE KITCHEN ESSENTIALS FAST MICROWAVE COOKING DRINKING SOLUTIONS MOVE / ON THE GO FOOD

CONSERVATION

CHEF COOKING KITCHEN ESSENTIALS

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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

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Sales Force Opportunity

Consultant

Demonstrates & sells product Income based on Personal sales

Manager Team Leader Distributor

Builds a team

• f 3 – 5 Consultants

Income based on Total team sales Personal sales Develops Managers within her group Income based on Sales of the group Total team sales Personal sales Leads & Builds a Sales Organization Income based on Organizational sales

Independent Business Owners can choose to earn a Part or Full-Time Income

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Business Fundamentals

Find new sellers Train new sellers Leadership Development

Grow the Sales Force

Meetings & Events Group Demonstration Recognition & Rewards

Support Consistent Activity

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Diversified Global Portfolio

Americas*

39%

Asia Pacific

34%

*Americas includes Tupperware North America, 15%, Beauty North America, 11% and South America , 13%

Europe

27%

36% in 2006

Share of 2015 Sales

44% in 2006 20% in 2006

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Emerging Market Growth

Emerging Markets

66% of Sales in 2015 12% CAGR from 2006 to 2015*

Established Market

34% of Sales in 2015 (2)% CAGR from 2006 to 2015*

*2006 – 2015 sales restated at September 2015 exchange rates

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Seven units over $100 million in 2015 sales

Over

$200

Million Over

$100

Million

Brazil Indonesia China Fuller Mexico Germany Tupperware Mexico Tupperware U.S. & Canada

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Key Sales and Profit Currencies

91% of 2015 sales and 100% of net profit from outside the U.S.

Basket of Global Currencies

Brazilian real Chinese renminbi Euro Indonesian rupiah Mexican peso

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Growth Opportunities

1 Increase Penetration in Emerging Markets

Extend our Reach

3 2 Strengthen the Core Business Model

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• 85% of the world’s population & 66% of

sales in 2015

• Growing Middle Class
• Lower Employment of Women outside the

home

• Direct Sales Channel Growth of 4-5%

annually through 2019*

*Based on data found on Euromonitor

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Increase Penetration in Emerging Markets

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Biggest Penetration Opportunities

China

• Over $100 million sales in 2015
• 5,500 studios
• 20,000 studio potential

India

• Less than $100 million sales in 2015
• Population: 1.25 Billion people
• Brazil: 200 million people; >$200M sales

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Strengthen the Core Business Model Extend our Reach

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Strengthen the Core Business Model

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Onboarding & Activation Demonstration Selling

Consistent global program of training, support, activities, and rewards for new consultants to learn fundamentals that will increase productivity & longevity Brazil & Germany Pilot Greater penetration of demonstration selling:

• Brochure  1 on 1 demo
• 1 on 1  group demo
• Group demo  culinary

Mexico & Brazil

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3

Extend our Reach

Party + Experience Studios Brand Ambassador

Blending of the live, in home party and e-commerce through video technology Tupperware U.S. Pilot Partnering with sales force leaders to establish modern contact centers more accessible to our sales force and consumers Evolution Across All Markets Opportunity to engage former sellers through the use of more consistent marketing efforts including digital 4 Europe Units Pilot testing begins

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The Studio

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The Studio

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Vision 2020 Strategies Timeline

Late 2013 Group Formed 1st Half 2014 Selection of areas

• f focus

2nd Half 2014 Creation of best practices & toolkits 1st Half 2015 Proof of concept begins 2nd Half 2015 First results for Pilots captured Refinement of toolkits 2016 Integration of Onboarding & Success Formula initiatives Proof of concept for Extend the Reach initiatives 2017 Strengthen the Core & Extend the Reach More widely adopted

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4% to 9%*

local currency sales growth each year 2007 - 2015

Strong history of growth

5.0% to 12.8%**

pretax ROS in 2003 & 2015

65 bps**

annual average margin improvement from 2003 to 2015

*See appendix for the Company’s reported sales from 2007 to 2015 and annual basis point improvement in local currency **Pre-tax ROS shown is excluding items. See GAAP to non-GAAP reconciliation in the appendix

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Cash producer - free cash flow

$- $50 $100 $150 $200 $250 $300 2009 2010 2011 2012 2013 2014 2015 2016*

Net Cash Flow before Financing Activities (Free Cash Flow) GAAP Net Income

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

*Outlook as of October 19, 2016 earnings release

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Capital Allocation Policy

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Dividend payout based on 50% of trailing year’s EPS without items

Cash Flow from Operating net of Investing Activities

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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 Flexibility

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Uses of Cash 2016 Guidance

Dividends 68 cents per share quarterly Yield 4.5%** Improve Leverage Ratio Toward 1.75X Target through moderate EBITDA growth & debt repayment*

*As of October 19, 2016 earnings release **Yield based on $2.72 annual dividend and closing share price of $60.22 on November 7, 2016

Cash Flow from Operating Net of Investing Activities Guidance: $195 to $205 million*

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Why Invest

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

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Appendix

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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 $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 6.9 7.0 14.3 7.6 9.0 9.0 8.0 7.6 Debt refinancing costs associated with Sara Lee acquisition 29.1 Acquired intangible asset amortization 1.8 25.0 13.6 11.9 5.1 3.9 Purchase accounting intangibles and goodwill impairment 11.3 9.0 28.1 4.3 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 (3.3) Net Income (Adjusted) $48.8 $83.3 $90.5 $109.6 $141.2 $169.7 $196.1 $237.9

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Non-GAAP Financial Reconciliation

http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm. 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016* 2016* Net Income (GAAP) $218.3 $193.0 $274.2 $214.4 $185.8 $43.4 $52.4 $48.8 $71.0 $215.6 Adjustments: Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.7) (2.7) (13.7) (0.1) (0.8) (24.2)

• (24.2)

Other Income from real estate operations sold (0.9)

• (0.9)

Re-engineering and other restructuring costs (includes Pension Settlement costs) 9.6 22.1 9.3 13.4 21.8 1.1 2.7 3.3 3.9 9.3 Impact of Venezuelan bolivar devaluation from balance sheet positions 4.2 42.4 14.9 0.2 3.6 0.3 2.0 7.0 Acquired intangible asset amortization 2.9 2.1 4.8 11.9 10.2 2.0 2.0 1.9 1.8 7.6 Swap impairment and debt cost write-off 19.8 Purchase accounting intangibles and goodwill impairment 36.1 76.9 Income tax impact of adjustments (9.6) (4.8) (3.5) (4.8) 1.5 (0.7) (1.2) 15.0 (6.4) 6.6 Net Income (Adjusted) $273.3 $281.4 $288.3 $274.6 $220.5 $45.9 $58.7 $44.2 $72.3 $221.0 Pre –tax Adjusted ROS 13.9% 14.1% 14.1% 13.9 % 12.8% 11.7% 13.7% 11.5% 15.4% 13.2% Average number of diluted shares (millions) 61.4 56.4 53.1 51.0 50.4 50.6 50.7 50.8 51.0 50.8

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Reported Sales 2008 – 2015

2008 2009 2010 2011* 2012 2013 2014 2015 2016** Sales $2,162 $2,128 $2,300 $2,585 $2,584 $2,672 $2,606 $2,284 $2,266 Reported Sales Growth 9% (2)% 8% 12% 0% 3% (2)% (12)% (2)% Local Currency Sales Growth*** 8% 6% 6% 9% 5% 6% 5% 4% 3%

* 2011 included 53 weeks. ** High-end of guidance range included in October 19, 2016 earnings release, including 53rd week in Q4. ***Calculated by comparing sales with prior year translated at the current year exchange rate.

32 *Guidance provided in October 19, 2016 Earnings Release. ** GAAP to non-GAAP reconciliation on slide 30

Outlook*

Fourth Quarter 2016 Guidance 2016 Full Year Guidance

USD Sales +5% – 7% (2)% GAAP EPS $1.34 – $1.39 $4.20 – $4.25 GAAP Pre-tax ROS 13.9% – 14.2% 13.2% – 13.3% Local Currency Sales +4% – 6% +3% EPS, excluding items** $1.37 – $1.42 $4.30 – $4.35 Pre-tax ROS, excluding items 15.2% – 15.5% 13.1% – 13.2% FX Impact on EPS comparison, excluding items $0.03 ($0.34)

33 * High end of guidance range provided in October 19, 2016 Earnings Release. **GAAP to non-GAAP reconciliation on slide 30

Return on Sales Guidance*

2016 Fourth Quarter High-End Guidance 2016 Full Year High-End Guidance

2015 Pretax ROS 15.1% 12.8% Translation FX 20 bp (40) bp 2015 Pretax ROS (constant currency) 15.3% 12.4% LC Operating Margin Improvement 10 bp 70 bp Net Interest Expense

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2016 Pretax ROS (high end guidance)** 15.4% 13.2%

34 $4.37 ($0.34) ($0.04) ($0.03) $0.29 $0.09 $4.35 $0.01

$3.50 $4.00 $4.50

2015 FX 2015 at 2016 Rates Tax Shares Interest Unallocated Ops 2016

2 cent decrease in Reported $ 8% increase in Local Currency**

$4.03

Full Year 2016 EPS Outlook* (diluted)

** High end of guidance range provided in October 19, 2016 Earnings Release.

Rick Goings

Chairman & CEO

November 2016