Rick Goings, Chairman & CEO June 2014 - Tupperware/media/Files/T/... · Brand & Products− No Rent...

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March 2013 Rick Goings, Chairman & CEO June 2014 Building C O N F I D E N C E Together

Transcript of Rick Goings, Chairman & CEO June 2014 - Tupperware/media/Files/T/... · Brand & Products− No Rent...

Page 1: Rick Goings, Chairman & CEO June 2014 - Tupperware/media/Files/T/... · Brand & Products− No Rent No Advertising Interactive Selling System 2.9M Sales Force • Party every 1.3

March 2013

Rick Goings, Chairman & CEO

June 2014

Building C O N F I D E N C E

Together

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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

Forward Looking Statements

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Sustain Tupperware Brands position as the premier, relationship-based

global marketer of quality innovative products and brands.

Our Going Forward Objective

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Commonly Asked Questions

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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

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How the Business is Organized

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Market: Managing Director

• Head of Sales • Head of Marketing • Head of Finance

3 Global Regions: • Americas • Europe Africa & Middle East • Asia Pacific Group President Heads of major functional areas

Corporate: CEO – Leadership Development & Strategic focus COO – Day to day operations Heads of major functional areas

Visibility

Weekly: Reporting & Calls from markets Monthly: Monthly Performance Review, Formalized calls with markets

Weekly / Daily contact Managing Directors

Daily contact Sales Force

Decentralized Structure

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Typical Country Structure Distributor Model

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TUPPERWARE GERMANY Est. 1962

Headquarters in Frankfurt/Main

Logistics center in Eppertshausen

Approx. 270 Team Leaders

130 Distributors Each controls a specific geography

Approx. 4,050 Unit Managers

Approx. 62,000 Demonstrators

Belgium Manufacturing &

Warehouse

Tours Manufacturing

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Germany Distributor Structure

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2 Team Leaders

450 Demonstrators

Average German distributor has

30 Unit Managers

Sales per Distributor varies by market

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Levers For Sustainable Growth

Product Innovation

Entertaining & Informative Selling Method

Compelling Sales Force Opportunity & Structure

Solid Business Fundamentals

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Selling Method

RELATIONSHIP BASED

VALUE ADDED DEMONSTRATION

ENABLES PENETRATION

Fundamentals

PRIMARY DRIVERS: RECRUIT, TRAIN,

MOTIVATE

REINFORCED BY: CONTACT, COMPETITION,

RECOGNITION

Real Opportunity

SALES OR SALES MANAGEMENT

SUPPLEMENTAL INCOME TO SERIOUS MONEY

Brand & Product

TRUSTED, POWERFUL AND. ASPIRATIONAL BRAND

HIGH QUALITY, INNOVATIVE AND DEMONSTRABLE PRODUCTS

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Success Driven by the Model

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Product Innovation

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Food Storage

Kitchen Tools & Gadgets

Table Top & Serving

Kitchen Prep

Cutlery & Cookware

Microwave

Baking & Ovenware

Approximately 25% of Sales each year to come from new products (products introduced in the last 2 years)

On-the-Go & Water

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Entertaining & Informative Selling Method

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Group Presentation = Party Party every 1.3 seconds

Advertising Retail Rent

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Compelling Sales Force Opportunity & Structure

Earning Opportunity Career Opportunity

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Part Time Supplemental

Income

Super Seller

Demonstrator

Unit Manager

Team Leader

Distributor

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Solid Business Fundamentals

• Training

• Recognition

• Competition

• Motivation

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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

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Balanced Global Portfolio

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Europe, 29%

Asia Pacific, 31%

TW North America, 14%

Beauty North America, 12%

South America, 14%

2013 Full Year Segment Sales as % of Total

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Emerging AND Established Markets Established Markets 35% OF 2013 SALES

14% WORLD POPULATION

Emerging Markets 65% OF 2013 SALES

86% WORLD POPULATION

WE'RE AN

AND STORY!

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Tupperware AND Beauty

*Full Year 2013

79% Tupperware Branded Housewares

21% Beauty & Personal Care Products

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TWB – Supported by Social Media

Tupperware Hostesses and

Fans

Host 2 Parties per Year

− Affiliation − Allegiance − Advocate

Promoters of Brand & Products

− No Rent − No Advertising

Interactive Selling System

2.9M Sales Force

• Party every 1.3 sec

• Driven by Earning Opportunity and Career path

Social Network

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.

Living Cook Books

iTUP (think Rosetta

Stone)

Sales Force

Webinars

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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

*Source OECD, The Emerging Middle Class in Developing Countries, January 2010

Emerging Market Penetration

Global Middle Class expected to grow from 1.8B to 3.2B by 2020*

Runway…

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White space in existing markets • New products and categories • Under served urban centers and populations,

millennials are entrepreneurs

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Dynamic Emerging Market Sales

TW Mexico +6%

Brazil +27%

Turkey +32%

India +12%

China +22%

EMERGING MARKETS 65% OF

2013 SALES 20

Argentina +27%

+13% LC FY 2013

Venezuela +35% Malaysia/

Singapore +11%

Indonesia +35%

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Basket of Global Currencies

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Key Sales & Profit Currencies

• Euro

• Indonesian Rupiah

• Mexican Peso

• Brazilian Real

• Malaysian Ringgit

>90% of 2013 sales and profit from

outside the U.S.

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Consistently Growing Sales & EPS

$0

$1

$2

$3

$4

$5

$6

$7

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2009 2010 2011 2012 2013 2014*

Sales Diluted EPS Adjusted Diluted EPS

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Sales $million Diluted EPS includes impact of non-cash purchase accounting asset impairment charges

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

Diluted EPS includes impact of Venezuelan devaluation from balance sheet items

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Free Cash Flow (as Reported)

$0

$50

$100

$150

$200

$250

$300

2009 2010 2011 2012 2013 2014*

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

* 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

GAAP Net Inc. includes Impact of non-cash

Purchase Accounting Asset impairment

charges

GAAP Net Inc. includes impact from Venezuelan devaluation on balance sheet items

$millions

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Business Use of Cash

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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

Invest in the Business Invest in the Business

Full Year 2013 Full Year 2014

Cash Returned to Shareholders $9.54* Cash Returned to Shareholders > $6.00*

*Based on full year diluted shares and for 2014 guidance provided on April 23, 2014

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Quarterly Dividends Declared

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$0.22 $0.25

$0.30

$0.36

$0.62

$0.68

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

1996-2009 2010 2011 2012 2013 2014

Dividend per Share

+14%

Announce

50% Payout

target on trailing EPS ex. items

+20%

+20%

+72%

+10%

Annualized Dividend 2011 $1.20 2012 1.44 2013 2.48

2014 2.72

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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

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2014 Full Year Outlook*

*Guidance range 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

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Outlook* Q2 2014 Full-year 2014

USD Sales (1) to 1% 0 to 2%

GAAP EPS $1.24 – $1.29 $4.97 – $5.12

GAAP Pre-tax ROS 12.7 – 12.9% 12.8 – 12.9%

Local Currency Sales +5 to 7% +5 to 7%

EPS, excluding items $1.44 - $1.49 $5.66 - $5.81

Pre-tax ROS, excluding items 14.4 – 14.6% 14.3 – 14.4%

FX Impact on EPS comparison, excluding items

($0.13) ($0.38)

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*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 assets on the balance sheet at

the end of March 2014 and operating activity for reminder of 2014 translated at 10.8 Bs/$ .

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Full Year 2014 EPS* Outlook

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$5.43 ($0.38)

($0.12)

($0.08) $0.04

$0.68

$0.24 $5.81

$4.50

$4.70

$4.90

$5.10

$5.30

$5.50

$5.70

$5.90

$6.10

2013 FX 2013 at2014 Rates

Int Exp Tax Unalloc Ops Share Imp. 2014

*High end of guidance range excluding items, provided in April 23, 2014 earning release.

$5.05

7% Increase

15% Increase

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* As of April 23, 2014.

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

Long Range Outlook*

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Non-GAAP Financial Measures Reconciliation

2011 2012 2013 Q1 2014 Q2 2014* 2014*

Net Income (GAAP) $218.3 $193.0 $274.2 $52.2 $66.6 $260.7

Adjustments:

Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.7) (1.8) (0.1) (1.9)

Re-engineering and other restructuring costs 9.6 22.1 9.3 2.3 4.2 10.2

Impact of Venezuelan bolivar devaluation on balance sheet positions 4.2 15.0 4.5 21.3

Swap impairment and debt cost write-off 19.8

Acquired intangible asset amortization 2.9 2.1 4.8 2.9 3.0 11.9

Purchase accounting intangibles and goodwill impairment 36.1 76.9

Income tax impact of adjustments (9.6) (4.8) (3.5) (3.7) (1.4) (6.7)

Net Income (Adjusted) $273.3 $281.4 $288.3 $66.9 $76.8 $295.5

Adjusted ROS 13.9% 14.1% 14.1% 13.5% 14.6% 14.4%

Average number of diluted shares (millions) 61.4 56.4 53.1 51.1 51.1 50.9

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*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

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March 2013

Building C O N F I D E N C E

Together