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42
May 2015
Transcript

May 2015

2

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 or download our Investor Relations app

3

OUR GOING FORWARD OBJECTIVE

Sustain Tupperware Brands position as

the premier, relationship-based global

marketer of quality innovative products

and brands.

4

POWERFUL

BUSINESS MODEL

EMERGING MARKETS PENETRATION OPPORTUNITY

STRATEGY TO INCREASE SALES

FORCE AND ACTIVE SELLERS

OPERATING LEVERAGE TO INCREASE

PROFITABILITY

EXPERIENCED GLOBAL

MANAGEMENT TEAM

SIGNIFICANT RETURN OF CAPITAL TO

SHAREHOLDERS

INVEST IN TUPPERWARE BRANDS

5

COMMONLY ASKED QUESTIONS

• Organizational structure

o How are you organized, by country, by region and globally?

o What is your level of visibility into the business?

• Levers for sustainable growth and to mitigate

external forces

• Opportunities for growth…near term…next decade

• Uses of cash

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

>

>

>

HOW THE BUSINESS IS ORGANIZED

6

Average Brazil Distributor Has about

1.5 Team Leaders

100 Managers

2,500 Consultants

Sales by Distributor varies by geography

DISTRIBUTOR STRUCTURE BRAZIL

7

8

Sales Office in Sao Paulo

78 Distributors

118 Team Leaders

8,000 Unit Managers

200,000+ Total Sales Force

Plant in Rio de Janeiro

Market Coverage

78 Distributors

Plant Sales Office

COUNTRY STRUCTURE BRAZIL

9

SALES

FORCE SIZE Recruit MORE

Retain MORE

Activate MORE Sell to MORE Customers

Sell HIGHER Priced Products

ACTIVATION PRODUCTIVITY

SALES GROWTH FORMULA MORE SELLERS, SELLING MORE

10

LEVERS FOR SUSTAINABLE GROWTH POWERFUL BUSINESS MODEL

Relationship

Based

Selling

Method

Direct to

Consumer

Fundamentals

Brand &

Product

Real

Opportunity

INNOVATIVE & DEMONSTRABLE PRODUCT

COOKWARE &

CUTLERY

BAKING &

OVENWARE

KITCHEN

TOOLS &

GADGETS

MICROWAVE

WATER &

ON THE GO

TABLETOP &

SERVING KITCHEN

PREP

FOOD CONSERVATION

Approximately

25% of Sales

each year

comes from

new products

introduced in

the last two

years

Around

100 new

concepts

normally in the

innovation

pipeline

11

12

A group selling situation or party

is held every

1.3 sec

Rent Advertising

RELATIONSHIP BASED SELLING METHOD

Earnings Opportunity Career Opportunity

13

Part-time

Supplemental

Income

Super

Seller

Demonstrator

Unit Manager

Team Leader

Distributor

REAL & COMPELLING SALES FORCE OPPORTUNITY

• Training

• Recognition

• Competition

• Motivation

14

DIRECT TO CONSUMER FUNDAMENTALS

15

RECRUIT

MORE

SELLERS

MORE

ACTIVE &

PRODUCTIVE

STAY

LONGER

STRENGTHEN THE CORE

THROUGH

16

DIVERSIFIED GLOBAL PORTFOLIO

2014 SEGMENT SALES AS % OF TOTAL NINE MARKETS OVER $100M

Brazil

Fuller Mexico

Indonesia

$200M +

China

France

Germany

Malaysia &

Singapore

TW Mexico

TW U.S. & Canada

$100M +

EMERGING AND ESTABLISHED MARKETS

Established

Markets

14% of World’s Population

34% of 2014 Sales

17

Emerging

Markets

86% of World’s Population

66% of 2014 Sales

18 *Full Year 2014

80% Tupperware

Branded

Housewares

20% Beauty &

Personal

Care Products

TUPPERWARE AND BEAUTY

Foreign Currency

Raw Material Pricing Inflation

Compression in consumer spending

Hedge transaction & cash flow FX exposure/ Manage business in local currency

Global Purchasing Council, product mix, promotional programs

We own the shelf / Price with consumer inflation

We are Sellers with our sales force taking us to consumers 19

LEVERS TO MITIGATE EXTERNAL FORCES

20

Key Sales & Profit Currencies

• Euro

• Indonesian rupiah

• Mexican peso

• Brazilian real

• Malaysian ringgit

• Chinese renminbi

92% of 2014 sales and 100% of net

profit from outside the U.S.

BASKET OF GLOBAL CURRENCIES

First

Tie

r

Second

Tie

r

22

Over $100 Million in 2014 Sales

1 OUTLET PER 260,000 PEOPLE

Under $100 Million in 2014 Sales

1 CONSULTANT PER 4,900 PEOPLE

CHINA & INDIA ARE TWO OF OUR LARGEST OPPORTUNITIES FOR PENETRATION

23

TUPPERWARE PENETRATION

AVG 1.2 consultants/

1,000 inhabitants

TUPPERWARE BRAZIL

Over $200 million

in 2014 sales

Market Coverage

78 Distributors

Plant Sales

Office

1.2

2.1

2.1

1.2

0.8

NORTH

NORTHEAST

SOUTHEAST

SOUTH

CENTERWEST

TWO LARGEST

COMPETITORS

AVG 6.5 consultants/

1,000 inhabitants

WE STILL HAVE PENETRATION OPPORTUNITIES IN OUR LARGEST MARKETS

LEVERAGING TECHNOLOGY TO ENABLE THE SALES FORCE

24

ENGAGE

MILLENNIALS

ENHANCE SALES

FORCE DIGITAL

TOOLS

REACH MORE

CONSUMERS

25

VALUE

STRONG RECORD of

GROWTH and of RETURNING

26

Local currency sales*

growth each year

2007–2014

*See GAAP to non-GAAP sales reconciliation for reported sales growth

SOLID HISTORY of GROWTH

5% to 9%

27

Annual Pre-tax ROS

Improvement

from 2003 to 2014*

5% to 13.9%

*Pre-tax ROS shown is excluding items. See GAAP to non-GAAP reconciliation

Average annual

local currency

margin improvement

from 2003 to 2014*

70 bps

STEADY MARGIN IMPROVEMENT

$0

$50

$100

$150

$200

$250

$300

2009 2010 2011 2012 2013 2014 2015*

$M

illio

ns

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

28 *High end of guidance range provided in April 22, 2015 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

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

FREE CASH FLOW (as reported)

29

DIVIDENDS AND SHARE REPURCHASES

Annualized Dividend 2011

2012

$1.20

$1.44

2013

2014

$2.48

$2.72

2015 $2.72

$0.22 $0.25

$0.30 $0.36

$0.62 $0.68 $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 2015

Dividends per Share

+20%

Announce 50% Payout

target on EPS ex. items

YIELD

4.1%*

+20%

+72% +10% EVEN

*Yield based on April 24, 2015 closing stock price of $66.41

SHARE

REPURCHASES 2007-2014

21.3 MILLION

SHARES

For $1.3 BILLION

WE’VE RETURNED $33 PER SHARE FROM 2007 TO 2014

30

$1.53 $2.75 $4.84

$6.77

$14.90

$19.82

$29.09 $33.35

$-

$10.00

$20.00

$30.00

$40.00

2007 2008 2009 2010 2011 2012 2013 2014

Shares Repurchased Dividends

*2015 assumes no share repurchases, $132M in dividends paid, and 50.3m average diluted shares.

Per share amounts are based on each year’s diluted shares.

Graph indicates cumulative return per share from 2007 to 2014

Outlook*

31

Second Quarter 2015

Guidance

2015 Full Year Guidance

USD Sales* (13)% to (11)% (10)% to (8)%

GAAP EPS $0.99 – $1.04 $3.80 – $3.90

GAAP Pre-tax ROS 11.8 – 12.1% 11.3 – 11.4%

Local Currency Sales +5% to 7% +4 to 6%

EPS, excluding items** $1.14 – $1.19 $4.60 – $4.70

Pre-tax ROS, excluding items 13.1% – 13.4% 13.2% – 13.3%

FX Impact on EPS comparison, excluding items ($0.40) ($1.13)

*Guidance issued as of the April 22, 2015 earnings release. Venezuelan operating activity was translated at 50 bolivars/$ in January 2015, and at

the Simadi rate for the remainder of 1Q 2015. Expect to use the Simadi rate, which was approximately 195.0 as of April 20, 2015 to translate future

operating activity.

**GAAP to non-GAAP reconciliation attached to 1Q 2015 earnings release

Full Year 2015 EPS* Outlook

32 *Reflects April 22, 2015 high-end guidance. See information on GAAP basis in appendix

Pre-Tax ROS, excluding items: 13.3% GAAP pre-tax ROS 11.4%

2014 Pre-Tax ROS 13.9%

2015 vs. 2014 translation FX -125 bp 2014 Pre-Tax ROS in Local Currency 12.7% 2015 LC Operating Margin Improvement +60

Incremental 2015 interest -8

Other/ Rounding 10

2015 High end pretax ROS 13.3%

33 *Pre-tax ROS reflects high end April 22, 2015 guidance

Impact of changes in foreign currency versus prior year are updated monthly and posted on: http://ir.tupperwarebrands.com/foreign-exchange-impact.cfm

2015 FULL YEAR ROS OUTLOOK*

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

•CAPEX $70 - $80 million a year

•Share repurchases

34

LONG RANGE OUTLOOK

35

POWERFUL

BUSINESS MODEL

EMERGING MARKETS PENETRATION OPPORTUNITY

STRATEGY TO INCREASE SALES

FORCE AND ACTIVE SELLERS

OPERATING LEVERAGE TO INCREASE

PROFITABILITY

EXPERIENCED GLOBAL

MANAGEMENT TEAM

SIGNIFICANT RETURN OF CAPITAL TO

SHAREHOLDERS

INVEST IN TUPPERWARE BRANDS

APPENDIX

$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 2015*

Sales Diluted EPS Adjusted Diluted EPS37

Sales

$million

Diluted EPS includes impact of non-cash

purchase accounting asset impairment charges

EPS

$Dollar

*High end of guidance range provided in April 22, 2015 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 from balance

sheet items of Venezuelan

devaluations

CONSISTENTLY GROWING SALES & EPS

38

Non-GAAP FINANCIAL RECONCILIATION

2003 2004 2005 2006 2007 2008 2009 2010*

Net Income (GAAP) 47.9 86.9 85.4 94.2 116.9 161.4 175.1 221.2

Adjustments:

Gains on disposal of assets including insurance recoveries (3.6) (13.1) (4.0) (12.3) (11.8) (24.9) (21.9)

Re-engineering and other restructuring costs 6.9 7.0 14.3 7.6 9.0 9.0 8.0 10.0

Debt refinancing costs associated with Sara Lee acquisition 29.1

Acquired intangible asset amortization 1.8 25.0 13.6 11.9 5.1 3.8

Purchase accounting intangibles and goodwill impairment 11.3 9.0 28.1

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 (4.0)

Net Income (Adjusted) 48.8 83.3 90.5 109.6 141.2 169.7 196.1 231.0

* High end of 2010 outlook provided in July 19, 2010 Earnings Release

39

2010 2011 2012 2013 Q4 2014 2014 Q1 2015 Q2 2015* 2015*

Net Income (GAAP) $225.6 $218.3 $193.0 $274.2 $79.9 $212.0 $29.5 $52.3 $196.6

ADJUSTMENTS:

Gains on disposal of assets including insurance

recoveries (0.2) (3.8) (7.9) (0.7) (0.4) (2.7) (0.6) (0.7)

Re-engineering and other restructuring costs 7.6 9.6 22.1 9.3 2.8 13.4 16.2 3.6 24.6

Impact of Venezuelan bolivar devaluation from

balance sheet positions 4.2 0.2 42.4

9.3 1.0 10.3

Swap impairment and debt cost write-off 19.8

Acquired intangible asset amortization 3.9 2.9 2.1 4.8 2.9 11.9 2.7 2.7 10.9

Purchase accounting intangibles and goodwill

impairment 4.3 36.1 76.9

Income tax impact of adjustments (3.3) (9.6) (4.8) (3.5) 1.4 (2.4) (5.9) 0.2 (5.3)

Net Income (Adjusted) $237.9 $273.3 $281.4 $288.3 $86.8 $274.6 $51.2 $59.8 $236.4

Adjusted ROS 13.9% 13.9% 14.1% 14.1% 16.9% 13.9 % 11.8% 12.1% 13.3%

Average number of diluted shares (millions) 61.4 61.4 56.4 53.1 50.6 51.0 50.3 50.3 50.3

*High end of guidance range provided in April 22, 2015 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

Non-GAAP FINANCIAL RECONCILIATION

40

2009 2010 2011* 2012 2013 2014 2015**

Sales $2,128 $2,300 $2585 $2,584 $2,672 $2,606 $2,388

Reported Sales Growth (2)% 8% 12% 0% 3% (2)% (8)%

Local Currency Sales Growth 6% 6% 9% 5% 6% 5% 6%

*2011 had 53 weeks compared with 52 weeks in 2010

**2015 assumes the high-end of local currency sales growth

2009 THROUGH 2015 FULL YEAR GUIDANCE REPORTED AND LOCAL CURRENCY SALES

* 2011 included 53 weeks.

**High end of guidance range included in April 22, 2015 earnings release.

1H – 2014

Q3 – 2014

Q4 – 2014

FY 2014

Q1 – 2015(1)

Q2 – 2015(1)

FY 2015(1)

Total Company Percentage Point Impact on Sales from Changes in Rate

(0.7pp) (3.5pp) (3.4pp) (2.1pp) (4.7pp) (3.3pp) (2.3pp)

Translation Impact of Changes in Rate on Diluted EPS Comparison ($0.04) ($0.10) ($0.08) ($0.21) ($0.13) ($0.13) ($0.28)

Re-measurement Impacts on Net Monetary Assets for 1H – 2014 and gain on conversion of bolivars to U.S. dollars (Q3 - 2014) (2)

($0.51) $0.09 ($0.08)(3) ($0.50) ($0.11)(4) N/A N/A

Transaction Impacts on cost of sales at Stronger Rates than Sales (2) ($0.12) ($0.23) $0.01(3) ($0.35) ($0.03)(4) ($0.03) (4) ($0.06) (4)

(1) The bolivar to U.S. dollar exchange rate used in translating the Company’s first quarter 2014 operating activity was 6.3 bolivars to the U.S. dollar, was 10.8 bolivars to the U.S. dollar in

the second quarter and was 50.0 in the second half of 2014 and in January 2015. In February 2015, the Venezuelan government launched an overhaul of its foreign currency exchange

structure for obtaining U.S. dollars, eliminating the SICAD 2 auction process and introducing the Marginal Currency System, or Simadi, which was approximately 195.0 bolivars to the U.S.

dollar as of April 20, 2015. The Company's outlook used the Simadi rate to translate its February and March 2015 and expects to use it to translate future operating activity. (2) The pretax expense impact from amounts on the balance sheet when the bolivar devalued are included in the U.S. GAAP earnings per share and return on sales data above, but not in

the data excluding items. (3) Reflects tax recognized on an annualized basis under U.S. GAAP. (4) With the change to the Simadi exchange rate there will be a negative profit impact related to its net monetary assets and inventory of about $9.4 million. This change in rates in February

2015 has also triggered a long-term fixed write off of $13.5 million in the first quarter of 2015.

VENEZUELA FX IMPACT IN 2014 AND 2015

41

May 2015


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