Q3 2013 Earnings Call October 23, 2013
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. www.tupperwarebrands.com 2
Q3 2013 Highlights Record Sales +6% local currency Adjusted EPS of $1.00, up 5% and 16% in local currency Strong sales across emerging markets • Emerging markets drove strong growth ,+13% (69% of sales) • Challenges in some developed markets, -8% (31% of sales) Strong YTD Cash Flow* of $92M, $21M ahead of last year Returned $132M to shareholders via $32M in dividends and $100M/1.21M shares repurchased *Cash from operating activities net of investing activities 3
2013 Balanced Global Portfolio Q3 Segment Sales as % of Total Q3 YTD Segment Sales as % of Total South America, South America, 16% Europe, 25% 14% Beauty North Europe, 29% Beauty North America, 12% America, 12% TW North Asia Pacific, TW North America, 13% 34% Asia Pacific, 32% America, 13% 4
Brand AND Channel Distributor Team Leader Unit Manager Demonstrator 2.8 million Sales Force 5
Increased Local Currency Sales Despite Lower Active Sales Force 2 point impact from Q3 2012 Q3 2013 change by Tupperware U.S. and 8% Canada to measuring activity on a +6% +3pp weekly rather than monthly basis 6% Positive 6 point impact from mix 4% +6pp shifts, primarily away from Fuller 2% Mexico that has a lower-than- -5% average order size 0% -2% Positive 3 point impact from +2pp productivity increases in -4% individual markets: -6% Significant price increases in South Decrease in Change in Mix Productivity Sales Increase America Active Sales Calculation in Local Force Methodology Currency Switch from beauty to more housewares products in Argentina Improved productivity in Asia, most significantly in China and Indonesia 6
Total Company Sales +6% LC Q3 2013 (local currency) TW U.S./Canada Germany France even -20% -13% Italy BeautiControl Turkey China +12% -20% +34% +23% TW Mexico India +4% +3% Fuller Mexico -11% Venezuela Malaysia/ Indonesia +63% Singapore +31% +10% Brazil +36% TW S. Africa -11% Argentina +39% Established Markets Emerging Markets 31% of Sales 69% of Sales 7 -8% vs. 2012 +13% vs. 2012
Financial Highlights 8
Earnings Per Share (diluted) Q3 Adjusted EPS Q3 2013 Roll-Forward $1.20 $1.05 Includes Intangible $1.00 Asset Impairment $1.00 $1.00 $0.95 $0.01 $1.00 $0.07 $0.83 $0.80 $0.95 ($0.09) $0.95 $0.09 $0.60 $0.90 $0.40 ($0.03) $0.85 $0.20 $- $0.80 2011 2012 2013 2012 FX Int Exp Ops Share Tax Rate 2013 Impact GAAP EPS EPS Excluding Items* * GAAP to non-GAAP reconciliation provided in Appendix 9
Outlook Q4 2013 Full-year 2013 USD Sales +2 – 4% +4% GAAP EPS $1.75 - $1.80 $5.17 - $5.22 GAAP Pre-tax ROS 16.4 – 16.6% 13.6 % Local Currency Sales +5 – 7% +6 - 7% EPS, excluding items* $1.83 - $1.88 $5.45 - $5.50 Pre-tax ROS, excluding items 17.3 – 17.4% 14.3% FX Impact on EPS comparison, ($0.06) ($0.19) excluding items * GAAP to non-GAAP reconciliation provided in Appendix 10
Uses of Cash Invest in the business Share Repurchases Dividends • $75M in Q4 2013 Targeted at 50% of Prior • 2014 Share Repurchase Full Year Diluted EPS Target to be Announced Without Items in January 11
Cash Flow (operating net of investing as reported) GAAP Net Inc. includes impact of non-cash $300 purchase accounting asset impairment charges $250 Large VAT & $200 FX hedge contract payments $150 $100 $50 $0 2007 2008 2009 2010 2011 2012 2013* ($50) Full Year Cash Flow Q3 YTD Cash Flow GAAP Net Income * Full-year cash flow and GAAP net income shown at high end of guidance range provided on October 23, 2013. 12
Brazil Overview 13
Market Facts The Facts Performance & The Model • • Population of 190M with a third in the Sales +36% in local currency in full- middle class* year 2012 and +30% YTD 2013 • • From 2000 to 2010, the share of 200,000+ Sales Force sell both households in the middle class grew from Tupperware and Beauty 24% to 29%** • Selling Method: mainly one-on-one • • By 2020, 37% of the 60 million Opportunity for productivity via households will be middle class** party training • • Retail spending increasing at rapid rate Mega Distributors fulfill non- stocking Distributors’ product • Looking for premium quality products needs and getting familiar with international brands *Source: “ In Brazil, an Emergent Middle Class Takes Off ,” The World Bank . Web. November 13, 2012 14 **Source: “ Redefining Brazil’s Emerging Middle Class ,” BCG Perspectives. Web. July 4, 2013
Country Structure Sales Office in Sao Paulo Plant in Rio de Janeiro 20 Mega Distributors 58 Distributors 118 Team Leaders 8,000 Unit Managers 200,000+ Total Sales Force Plant Market Coverage Sales 58 Distributors Office
Brazilian Business Model The key factor of the success Splitting of tasks and responsibilities Commission Distributors MEGA Distributors Responsible for 100% Focused on BUSINESS MANAGEMENT Sales Force Development providing good quality (training, assemblies, recruiting, etc) SERVICES TO THE SALES FORCE and Sales Force Development (training, assemblies, recruiting, etc)
Commission Distributors Builds Sales Organization • Trains Sales Force • Conducts Weekly Meetings • Leadership Development Focus
Mega Distributors Builds Sales Organization (like a commission distributor) Services the Sales Force • Holds and manages inventory • Processes orders and collects on behalf of Commission Distributors
Q & A 19
Confidently Moving Forward Quality management teams around the world Premium brands and products Emerging markets • Growth of middle class • Penetration of under and unserved geographies Established markets • Execute better and more consistently • Significant white space to drive growth Grow our 2.8M sales force 20
Appendix
Appendix: Non-GAAP Financial Measures Reconciliation 2011 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013* 2013* Net Income (GAAP) $218.3 $193.0 $58.2 $76.3 $49.9 $92.5 $276.9 Adjustments: Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.2) (0.8) (1.1) Re-engineering and other restructuring costs 9.6 22.1 2.2 2.2 2.7 3.3 10.4 Impact of Venezuelan bolivar devaluation on balance sheet positions 3.9 0.3 4.2 Swap impairment and debt cost write-off 19.8 Acquired intangible asset amortization 2.9 2.1 0.3 0.3 1.2 2.9 4.8 Purchase accounting intangibles and goodwill impairment 36.1 76.9 Income tax impact of adjustments (9.6) (4.8) (0.2) (0.7) (0.5) (2.1) (3.5) Net Income (Adjusted) $273.3 $281.4 $64.4 $78.2 $52.5 $96.6 $291.7 * High end of guidance rage 22
Q3 Segment Sales Local Currency Q3 2013 Sales, +6% YTD 2013 Sales, +7% $250.0 $700.0 $614.5 $205.1 $600.0 $564.3 $200.0 $500.0 $146.9 $150.0 $400.0 $96.7 $271.4 $300.0 $263.1 $100.0 $241.2 $80.6 $73.8 $200.0 $50.0 $100.0 $- $- Europe Asia Pacific TW North Beauty North South Europe Asia Pacific TW North Beauty North South America America America America America America Q3 2011 Q3 2012 Q3 2013 YTD 2011 YTD 2012 YTD 2013 Prior year amounts translated at current year foreign exchange rates. See appendix for U.S. dollar information. 23
Q3 Segment Sales Reported Q3 2013 sales, +1% YTD 2013 Sales, +4% $250.0 $700.0 $614.5 $205.1 $600.0 $564.3 $200.0 $500.0 $146.9 $150.0 $400.0 $96.7 $271.4 $300.0 $263.1 $100.0 $241.2 $80.6 $73.8 $200.0 $50.0 $100.0 $- $- Europe Asia Pacific TW North Beauty North South Europe Asia Pacific TW North Beauty North South America America America America America America Q3 2011 Q3 2012 Q3 2013 YTD 2011 YTD 2012 YTD 2013 24 On a Reported basis
Q3 Emerging Market Sales By Segment Local Currency Q3 2013 Emerging Market Emerging/Established % Sales +13% Q3 2013 Emerging Market Sales, 69% of Total $180.0 100% $167.6 $160.0 90% 80% $140.0 70% $120.0 60% $96.7 $100.0 50% 100% $80.0 82% 40% $58.5 72% $53.4 $60.0 30% $39.5 49% $40.0 20% 40% $20.0 10% $- 0% Europe Asia Pacific TW North Beauty North South America Europe Asia Pacific TW North Beauty North South America America America America America Q3 2011 Q3 2012 Q3 2013 Emerging Established Prior year amounts translated at current year foreign exchange rates 25 See appendix for U.S. dollar information.
Q3 Emerging Market Sales By Segment Reported Q3 2013 Emerging Market Emerging/Established % Sales, +7% $180.0 100% $167.6 $160.0 90% 80% $140.0 70% $120.0 60% $96.7 $100.0 50% 100% $80.0 82% 40% $58.5 72% $53.4 $60.0 30% $39.5 49% $40.0 20% 40% $20.0 10% $- 0% Europe Asia Pacific TW North Beauty North South America Europe Asia Pacific TW North Beauty North South America America America America America Q3 2011 Q3 2012 Q3 2013 Emerging Established 26 On a reported basis
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