October 23, 2013 Forward Looking Statements We are making some - - PowerPoint PPT Presentation
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
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We are making some forward looking statements today that use words like “outlook” or “target” or similar predictive
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
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Record Sales +6% local currency Adjusted EPS of $1.00, up 5% and 16% in local currency Strong sales across emerging markets
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
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Europe, 25% Asia Pacific, 34% TW North America, 13% Beauty North America, 12% South America, 16%
Q3 Segment Sales as % of Total
Europe, 29% Asia Pacific, 32% TW North America, 13% Beauty North America, 12% South America, 14%
Q3 YTD Segment Sales as % of Total
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Demonstrator Unit Manager Team Leader Distributor
2.8 million Sales Force
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Q3 2013
0% 2% 4% 6% 8% Decrease in Active Sales Force Change in Calculation Methodology Mix Productivity Sales Increase in Local Currency +3pp +2pp +6%
+6pp
2 point impact from Q3 2012 change by Tupperware U.S. and Canada to measuring activity on a weekly rather than monthly basis Positive 6 point impact from mix shifts, primarily away from Fuller Mexico that has a lower-than- average order size Positive 3 point impact from productivity increases in individual markets:
Significant price increases in South America Switch from beauty to more housewares products in Argentina Improved productivity in Asia, most significantly in China and Indonesia
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Q3 2013 (local currency)
Brazil
+36%
Indonesia
+31%
Venezuela
+63%
Malaysia/ Singapore
+10%
Turkey
+34%
India
+3%
TW Mexico
+4%
China
+23%
Established Markets
31% of Sales
Emerging Markets
69% of Sales +13% vs. 2012
Germany
France
TW S. Africa
TW U.S./Canada
even
BeautiControl
Fuller Mexico
Argentina
+39%
Italy
+12%
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$0.83 $0.95 $1.00 $- $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 2011 2012 2013 GAAP EPS EPS Excluding Items*
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* GAAP to non-GAAP reconciliation provided in Appendix (diluted)
Q3 Adjusted EPS Roll-Forward Q3 2013
Includes Intangible Asset Impairment
$0.95 ($0.09) ($0.03) $0.09 $0.07 $0.01 $1.00 $0.80 $0.85 $0.90 $0.95 $1.00 $1.05 2012 FX Int Exp Ops Share Impact Tax Rate 2013
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, excluding items ($0.06) ($0.19)
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* GAAP to non-GAAP reconciliation provided in Appendix
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Dividends
Targeted at 50% of Prior Full Year Diluted EPS Without Items
Share Repurchases
Target to be Announced in January
Invest in the business
($50) $0 $50 $100 $150 $200 $250 $300
2007 2008 2009 2010 2011 2012 2013*
Full Year Cash Flow Q3 YTD Cash Flow GAAP Net Income
GAAP Net Inc. includes impact of non-cash purchase accounting asset impairment charges
* Full-year cash flow and GAAP net income shown at high end of guidance range provided on October 23, 2013. Large VAT & FX hedge contract payments
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(operating net of investing as reported)
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Market Facts
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year 2012 and +30% YTD 2013
Tupperware and Beauty
party training
non-stocking Distributors’ product needs
middle class*
households in the middle class grew from 24% to 29%**
households will be middle class**
and getting familiar with international brands
*Source: “In Brazil, an Emergent Middle Class Takes Off,” The World Bank. Web. November 13, 2012 **Source: “Redefining Brazil’s Emerging Middle Class ,” BCG Perspectives. Web. July 4, 2013
The Facts Performance & The Model
Country Structure
Sales Office in Sao Paulo
20 Mega Distributors
Market Coverage 58 Distributors
58 Distributors 118 Team Leaders 8,000 Unit Managers 200,000+ Total Sales Force
Plant in Rio de Janeiro
Plant Sales Office
Brazilian Business Model
MEGA Distributors
The key factor of the success
Splitting of tasks and responsibilities
Responsible for
BUSINESS MANAGEMENT
providing good quality
SERVICES TO THE SALES FORCE
Commission Distributors
100% Focused on Sales Force Development
(training, assemblies, recruiting, etc) and
Sales Force Development
(training, assemblies, recruiting, etc)
Commission Distributors
Builds Sales Organization
Mega Distributors
Builds Sales Organization
(like a commission distributor)
Services the Sales Force
inventory
collects on behalf of Commission Distributors
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Quality management teams around the world Premium brands and products Emerging markets
Established markets
Grow our 2.8M sales force
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
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Q3 2013 Sales, +6% YTD 2013 Sales, +7%
Prior year amounts translated at current year foreign exchange rates. See appendix for U.S. dollar information.
$146.9 $205.1 $80.6 $73.8 $96.7 $- $50.0 $100.0 $150.0 $200.0 $250.0 Europe Asia Pacific TW North America Beauty North America South America Q3 2011 Q3 2012 Q3 2013 $564.3 $614.5 $263.1 $241.2 $271.4 $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 Europe Asia Pacific TW North America Beauty North America South America YTD 2011 YTD 2012 YTD 2013
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Q3 2013 sales, +1% YTD 2013 Sales, +4%
On a Reported basis
$146.9 $205.1 $80.6 $73.8 $96.7 $- $50.0 $100.0 $150.0 $200.0 $250.0 Europe Asia Pacific TW North America Beauty North America South America Q3 2011 Q3 2012 Q3 2013 $564.3 $614.5 $263.1 $241.2 $271.4 $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0 $700.0 Europe Asia Pacific TW North America Beauty North America South America YTD 2011 YTD 2012 YTD 2013
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Q3 2013 Emerging Market Sales +13% Emerging/Established % Q3 2013 Emerging Market Sales, 69% of Total
Prior year amounts translated at current year foreign exchange rates See appendix for U.S. dollar information.
$58.5 $167.6 $39.5 $53.4 $96.7 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 Europe Asia Pacific TW North America Beauty North America South America Q3 2011 Q3 2012 Q3 2013 40% 82% 49% 72% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Europe Asia Pacific TW North America Beauty North America South America Emerging Established
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Q3 2013 Emerging Market Sales, +7% Emerging/Established %
On a reported basis
$58.5 $167.6 $39.5 $53.4 $96.7 $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 Europe Asia Pacific TW North America Beauty North America South America Q3 2011 Q3 2012 Q3 2013 40% 82% 49% 72% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Europe Asia Pacific TW North America Beauty North America South America Emerging Established
* As of October 23, 2013. Specific guidance for 2014 to be provided in January 2014 fourth quarter 2013 earnings release.
Double Digit EPS Growth driven by:
improvement per year into the mid- to high-teens
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