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

November Rick Goings 2016 Chairman & CEO

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 2

Agenda Business Model Diversified Portfolio Growth Opportunities Financial Performance Uses of Cash 3

Powerful Business Model Group Demonstration Selling Brands & Products Sales Force Opportunity Business Fundamentals 4

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 5

Innovative and demonstrable product FAST MICROWAVE DRINKING OVENWARE CHEF COOKING COOKING SOLUTIONS FOOD MOVE / KITCHEN KITCHEN ON THE GO ESSENTIALS ESSENTIALS CONSERVATION 6

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 7

Sales Force Opportunity Independent Business Owners can choose to earn a Part or Full-Time Income Distributor Team Leader Manager Consultant Leads & Builds a Sales Organization Develops Managers Builds a team within her group Income based on of 3 – 5 Consultants Demonstrates Organizational sales Income based on & sells product Income based on Sales of the group Income based on Total team sales Total team sales Personal sales Personal sales Personal sales 8

Business Fundamentals Support Consistent Activity Grow the Sales Force Meetings & Events Find new sellers Group Demonstration Train new sellers Recognition & Rewards Leadership Development 9

Diversified Global Portfolio Share of 2015 Sales Europe 27% Americas* Asia Pacific 36% in 2006 39% 34% 44% in 2006 20% in 2006 *Americas includes Tupperware North America, 15%, Beauty North America, 11% and South America , 13% 10

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 11

Seven units over $100 million in 2015 sales Over Over China Brazil $100 $200 Fuller Mexico Indonesia Million Million Germany Tupperware Mexico Tupperware U.S. & Canada 12

Basket of Global Currencies Key Sales and Profit Currencies Brazilian real Chinese renminbi Euro Indonesian rupiah Mexican peso 91% of 2015 sales and 100% of net profit from outside the U.S. 13

Growth Opportunities 1 Increase Penetration in Emerging Markets 2 Strengthen the Core Business Model 3 Extend our Reach 14

1 Increase Penetration in Emerging Markets • 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 15

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 16

Strengthen the Core Business Model Extend our Reach 17

2 Strengthen the Core Business Model Onboarding & Activation Demonstration Selling Consistent global program of training, Greater penetration of demonstration selling: Brochure  1 on 1 demo support, activities, and rewards for new • 1 on 1  group demo consultants to learn fundamentals that will • Group demo  culinary increase productivity & longevity • Mexico & Brazil Brazil & Germany Pilot 18

3 Extend our Reach Experience Studios Brand Ambassador Party + Blending of the live, in home Opportunity to engage former Partnering with sales force party and e-commerce sellers through the use of leaders to establish modern through video technology more consistent marketing contact centers more efforts including digital accessible to our sales force and consumers Tupperware U.S. Pilot Evolution Across All 4 Europe Units Markets Pilot testing begins 19

The Studio 20

The Studio 21

Vision 2020 Strategies Timeline 2016 1 st Half 2014 1 st Half 2015 Integration of Onboarding & Success Formula initiatives Selection of areas Proof of of focus concept begins Proof of concept for Extend the Reach initiatives 2 nd Half 2015 2017 2 nd Half 2014 Late 2013 First results for Pilots Strengthen the Core & captured Extend the Reach Creation of best Group practices & toolkits Formed More widely adopted Refinement of toolkits 22

Strong history of growth 4% to 9%* local currency sales growth each year 2007 - 2015 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 23

Cash producer - free cash flow GAAP Net Income includes GAAP Net Income includes impact of non-cash impact of Venezuelan purchase accounting asset devaluations from balance impairment charges sheet items $300 $250 $200 $150 $100 $50 $- 2009 2010 2011 2012 2013 2014 2015 2016* Net Cash Flow before Financing Activities (Free Cash Flow) GAAP Net Income *Outlook as of October 19, 2016 earnings release 24

Capital Allocation Policy Cash Flow from Operating net of Investing Activities 1 2 3 Dividend payout Repurchase shares Manage Debt under based on 50% of in the open market leverage target of trailing year’s EPS with remaining cash 1.75x without items and debt capacity Net Debt to EBITDA Allows Flexibility 25

Uses of Cash 2016 Guidance Cash Flow from Operating Net of Investing Activities Guidance: $195 to $205 million* 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 26

Why Invest Competitive Business Model Diversified Portfolio for Sustainable Performance Opportunities for Above Average Growth Significant Return of Capital to Shareholders 27

Appendix 28

Non-GAAP Financial Reconciliation 2008 2009 2003 2004 2005 2006 2007 2010 Net Income (GAAP) $47.9 $86.9 $85.4 $94.2 $116.9 $161.4 $175.1 $225.6 Adjustments: (24.9) (21.9) (0.2) Gains on disposal of assets including insurance recoveries (3.6) (13.1) (4.0) (12.3) (11.8) 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 29

Non-GAAP Financial Reconciliation 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016* 2016* 2011 2012 2013 2014 Net Income (GAAP) $218.3 $193.0 $274.2 $214.4 $185.8 $43.4 $52.4 $48.8 $71.0 $215.6 Adjustments: (13.7) (0.1) (0.8) (24.2) -- (24.2) Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.7) (2.7) 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 * High end of guidance range provided in October 19, 2016 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. 30