Upload
truongduong
View
216
Download
0
Embed Size (px)
Citation preview
A Global Portfolio of Direct Selling CompaniesA Global Portfolio of Direct Selling Companiesg pg p
Rick GoingsRick GoingsCh i & CEOCh i & CEOChairman & CEOChairman & CEO
ForwardForward--Looking StatementsLooking Statements
We are making some forward looking statements today g g ythat use words like “outlook” or “target” or similar predictive words. Such forward looking statements involve risks and uncertainties as further contained ininvolve risks and uncertainties as further contained in our Form 10-K filed with the Securities and Exchange Commission in February 2008. These risks and
i i l l diffuncertainties may cause actual results to differ materially from our statements today.
Core business is sound
Business model allows for growth…even now
Solid performance in many established and emerging markets
Financially sound company with strong cash flowPay dividendyPay down debtShare repurchase
To be the premier global direct seller
of premium, innovative p ,products by providing…
Our Customersith high q alit inno ati ewith high quality, innovativeproducts and informative,
entertaining channels of distribution
Our Independent Sales Force
with a significant earning opportunity and personal
d l t
Our Associatesan opportunity to develop their talents and skills by
development
their talents and skills by fostering personal fulfillment,
achievements and rewards
What is Tupperware Brands TodayWhat is Tupperware Brands Today
A Global Portfolio of Direct Selling CompaniesA Global Portfolio of Direct Selling Companies
News CorporationNews CorporationNews Corporation is a diversified global media portfolio with operations in eight industry segments:seg e ts
Filmed entertainment
Television
Cable network programming
Direct broadcast satellite television
Magazines and inserts
Newspapers and information services
Book publishingBook publishing
Other (MySpace, FoxSports.com, etc.)
Similarities with Tupperware BrandsSimilarities with Tupperware Brands
Company Diversified global media company Diversified global direct selling companyp yOverview
Vision/ Mission
Creating and distributing top quality news, sports and entertainment
To be the premier global direct seller of premium, innovative products…Mission p
around the world.p p
Strategy Provide a compelling combination of information and entertainment for the
Our independent sales force with a pathway for personal development and ainformation and entertainment for the
largest audience around the world. Achieve this by maintaining the
ideal mixture of established, developing and new businesses with
pathway for personal development and a significant earning opportunity.
Our customers with high quality innovative products brought to them through an informative and entertainingdeveloping, and new businesses with
significant potential.through an informative and entertaining party.
Our associates an opportunity to develop and utilize their talents and skill and to be recognized and rewarded for itand to be recognized and rewarded for it.
1992 1992 –– 2007 Strategic Platforms2007 Strategic Platforms
Strategies to Refresh and Reconfigure
Expand into Direct Selling
Bea tvenu
e
Grow Emerging Markets
Beauty Companies
Where Appropriate
Rev
Build brand equity in products and image
Refresh the Core
Income
Phase One Largely CompletedPhase One Largely Completed
Refresh the CoreProductsPartyCompensation Structure
Emerging MarketsHave global beachheads
Expand into Direct Selling BeautyLarge rapidly growing marketg p y g gCosmetic, Fragrance and Toiletries growing 6-8% annuallyTaps into categories with higher spending
Move to Phase Two 2009 Move to Phase Two 2009 -- 20142014
MarketMarket People/People/
FOCUS, FIX & GROWFOCUS, FIX & GROW
Key Focus Priority
Market Market FocusFocus
People/ People/ ProcessesProcesses
y yMarkets
(Emerging and Established)
Leadership Development
MOBILIZEStrengthen
Sales & Marketing
Management
Leverage Brands to Grow Latin
America Businesses
Fix, Merge or Exit weak small businesses
Reconfigure Supply Chainbusinesses
Si HSi HSimon HemusSimon HemusPresident & COOPresident & COOPresident & COOPresident & COO
Tupperware Brands Business ModelTupperware Brands Business Model
Sales Force Structure And
Products We
Selling Method
CompensationTiered / Self PromoteT diti l
We Offer
TupperwareBeauty
MethodParty / Group SellingOne-on-one
Traditional Distributorship\Single Level With Salaried
BeautyCampaign Brochure
With Salaried Field Manager
Flexible Business ModelFlexible Business Model
L i A iEU S & C d A i P ifiLatin America
• Single Level / Salaried Field Manager
Europe
• Traditional Distributorship
U.S. & Canada
• Tiered / Self Promote
Asia Pacific
• Traditional Distributorship / Tiered / RetailManager
• Beauty Focus
• Campaign B h
• Tupperware Focus
• Party / One-on-one
• Tupperware & Beauty focus
• Party
Tiered / Retail Outlets
• Tupperware & Beauty Focus
Brochure Selling
• Party & Home Demonstration
Portfolio of Established & Emerging Portfolio of Established & Emerging MarketsMarkets
SalesYTD % Force
Market Sales MixMarket Sales Mix
Established 49% 25%
Emerging 51% 75%
Key MarketsKey Markets
Established Emerging
GermanyUnited States
MexicoRussiaUnited States
AustraliaFrance
RussiaSouth AfricaChinaFrance
ItalyNordics
ChinaIndiaIndonesiaNordics
JapanIndonesia
Emerging Markets: Emerging Markets: Planting the Seeds of Future GrowthPlanting the Seeds of Future Growth
FocusFocus
Rapid Sales Force Expansion
Earnings Opportunity for Women
Less developed Retail InfrastructureLess developed Retail Infrastructure
Growing PopulationAnd…we are in the very early stages of penetrating these markets
Emerging Markets Growth YTD Q3 08Emerging Markets Growth YTD Q3 08
Over 30 countries including:
China CIS (former Soviet Union)I d i S th Af iIndonesia South AfricaIndia TurkeyBrazil Mexico
YTD Q3 08 Local Currency Sales Growth 20%
We are only in the Early InningsWe are only in the Early Innings
Distributor perDistributor per 1M Population* Party Average
Established 1.3 $398
Emerging 0 7 $101Emerging 0.7 $101
*Population defined as individuals with income above $2 per dayEmerging and Established markets in Europe and Asia Pacific defined as traditional party reporting markets
Emerging Market Growth PotentialEmerging Market Growth Potential
Geographic PenetrationGeographic Penetration
Growth of Middle ClassGrowth of Middle Class
S hi ti ti f S l FSophistication of Sales Force
B d B ildiBrand Building
Creating a Contemporary ImageCreating a Contemporary Image
Asian ConsumerAsian Consumer
Compelling Geographic ExpansionCompelling Geographic Expansion
Community Outlet - Guangzhou Commercial Outlet - Shanghai
Community Outlets: 1,800 (72%)Commercial Outlets: 736 (28%)
T l O l YTD 2 588Total Outlets YTD: 2,588Potential Outlets: 10,000
Compelling Earnings OpportunityCompelling Earnings OpportunityTupperware ChinaTupperware China
$197 502$197,502
$48,044$46,511
Our Average Annual Income
$8,808$3,780
Avg Outlet Qualified Outlet Top Outlet Avg DB Top DB
$3,066 $2,754 $2,502$3,879 $3,841 $4,148 $4,136Average Annual Income in
Comparable Industries
1Manufacturing Construction Hotels and restaurantReal Estate Education Health care
p
Real Estate Education Health carePublic Management
TUPS TUPS –– Over Ten Million Units SoldOver Ten Million Units Sold
Compelling Earnings OpportunityCompelling Earnings OpportunityTupperware IndonesiaTupperware Indonesiapppp
14 732
22,204
Amount in USD
3,007 3 063
8,135
14,732 Our Average Annual Income
1,5073,063
vg. S
F
p10
SF
vg. U
M
10 U
M
vg. T
L
p10
TL 4.952
4.161 4,230
Avg
Top1 Av
g
Top1 Av
g
Top1
3,072 3.155
1 193
2,326
2,552
1,193
Fin
otel
egal IT om acy
nce
nter
Average Annual Income inComparable Industries
(supervisory level) F
Ho Leg
Telc
o
Phar
ma
Insu
ran
Call
Cent
( p y )
Tailored ProductsTailored Products
Condiment dispenser
Pour dispenser for dry goods
Mini spice & liquid dispensers
Compelling Earnings OpportunityCompelling Earnings OpportunityTupperware IndiaTupperware India
$9,900
$14,700
pppp
$ ,
Our Average Annual Income
$533 $1,066$1,728
Avg Conslt Star Conslt Avg UM Top 10 UM Top EM
$2,800$2,666
$2,266 $2,266
$1,600
$2,666
Average Annual Income in
Manufacturing BSFI Consumer FMCG Education Healthcare
Average Annual Income inComparable Industries
Manufacturing BSFI ConsumerDurable
FMCG Education Healthcare
Wo rk Experience 1-3 yrs
Eco Water BottleEco Water Bottle
Compelling Earnings OpportunityCompelling Earnings OpportunityTupperware RussiaTupperware Russia
$63,769
$20,334
Our Average Annual Income
$8,575$5,233$2,368
Avg SF Top SF Avg UM Avg PM Top 10 UMAvg SF Top SF Avg UM Avg PM Top 10 UM
Average Annual Income in$ 6 324
$ 6 921
$ 4 562 $ 4 297 $ 4 901 $ 5 089 $ 5 137
Average Annual Income inComparable Industries
1manufacturing construction hotels & restaurantseducation health care communal servicesstate trade
160 Distributors and Room to Grow160 Distributors and Room to Grow
Paris, November 5 2007 31
Becoming a Household NameBecoming a Household Name
Compelling Geographic ExpansionCompelling Geographic Expansion
Mexico Tupperware & Beauty
Colombia
y
Brazil
Chile
Tupperware and BeautyTupperware and BeautyA Powerful CombinationA Powerful Combination
Appealing to Women With ChildrenAppealing to Women With Children
TPS EDUCATIONALEDUCATIONAL TOYS
TupperwareTupperware
PRODUCTS
GADGETS
Significant Beauty Emerging Significant Beauty Emerging Market OpportunitiesMarket Opportunities
Argentina Brazil China RussiaChileColombiaArgentina Brazil China RussiaChileColombia
Brazil & Argentina – Existing Markets China, RussiaColombia, Chile
Potential Future Markets
Established MarketsEstablished Markets
FocusFocus
Sales Force Expansion
I d Fi ld St tImproved Field Structure
Focused Segmentation
Contemporize
Leverage Brand EquityLeverage Brand Equity
Improved Field StructureImproved Field Structure
Team Leader Opportunity Distributor
Team Leader
Manager
Consultant
Focused Market SegmentationFocused Market Segmentation
Armand DupreeCatalog
TupperwareHispanic Market
Brochure
BeautiControl African American
Catalog
BeautiControl Hispanic Market
Brochure
Lifestyle CompanyLifestyle Company
From Basic
To Elegant & Differentiated
Reaching New ConsumersReaching New Consumers
Celebrity ChefsCelebrity Chefs
TV Cooking Shows
Appealing to New Younger ConsumerAppealing to New Younger Consumer
Premium ConsumablesPremium Consumables
The Power of CelebrityThe Power of Celebrity
LicensingLicensing
Longer Range Local Currency Sales Longer Range Local Currency Sales OutlookOutlook
Market Low High
E t bli h d 1% 2%Established 1% 2%
Emerging 12% 14%Emerging 12% 14%
Total Company 6% 8%Total Company 6% 8%
Mike PoteshmanMike PoteshmanMike PoteshmanMike PoteshmanExecutive VP & CFOExecutive VP & CFOExecutive VP & CFOExecutive VP & CFO
Third Quarter ResultsThird Quarter Results
High End of Sales guidanceHigh End of Sales guidance
5 cents above high end of diluted EPS5 cents above high end of diluted EPS guidance, excluding items
S i li A i P ifiSegments in line – Asia Pacific up, Beauty North America downLower incentive cost and tax rateLower incentive cost and tax rate
Full Year ForecastFull Year Forecast
Sales to high end of previous local currency range g p y gup 8-9%
Emerging markets up 17 – 18% in local currencyE t bli h d k t b t ith 2007 i l lEstablished markets about even with 2007 in local currency
il d S $2 2 62 l di iDiluted EPS range $2.57 – 2.62 excluding itemsDown from Sept 18th by 10 cents for FXUp 3 cents from Q3 resultsUp 3 cents from Q3 results
Long range local currency sales growth guidance of +6 to 8% with pretax return on sales of 9 5 toof +6 to 8% with pretax return on sales of 9.5 to 10.5%
Cash Flow & LiquidityCash Flow & Liquidity
Inventory, Short Term Receivables and Accounts PayableDays all at or slightly better than September 2007
Cash Flow forecast for full year remains at$110 – 120M, including significant Q4 insurance recovery
bDebtClosed quarter with $100M of Revolver Borrowings▫ Revolver facility is $200M▫▫ Held $145M of cash at September 2008▪ $55M would normally have paid down revolver
Based on mid point of Cash Flow forecast and otherBased on mid point of Cash Flow forecast and other assumptions, full year 2008 debt reduction of $60M+ to $535M range
May adjust repayments down based on credit marketsMay adjust repayments down based on credit markets
Share RepurchasesShare Repurchases
Will accelerate share repurchases under existing $150M authorization
$64M h d i 2007 d t d t 2008$64M purchased in 2007 and year to date 2008Expect to begin accelerated purchases under raised authorization in Q4 in $10M range with $40M expected in2009Comparable to 75% increase in dividend paymentsp p y
In target Debt/EBITDA leverage range of 1.5 – 2.0x beginning this quarter
2 3x at September 20082.3x at September 20082.1x if had paid down debt with available cash
Expect to continue to also reduce debt
Significantly higher repurchase constrained by debt covenants
May still consider dividend increases going forward
Value ChainValue Chain
Lower oil/natural gas prices have improved cost outlook mainly in 2009outlook mainly in 2009
2008 – negative impact of $9 to $10M2009 – based on current oil and gas prices, expect to make up at least most of the 2008 impactmake up at least most of the 2008 impact
Value chain improvement and flexibilityA d i l lik T U S d F llAverage order size – places like Tup U.S. and Fuller ArgentinaRestructuring in South AmericaPromotional spend – 17% of salesPromotional spend – 17% of salesFixed costs in light of volume and opportunitiesDistribution costs; order size and delivery pointsGross margin management – pricing and mixGross margin management pricing and mix
Why Invest in Tupperware Brands?Why Invest in Tupperware Brands?
Strong sources of competitive advantageQuality of direct sales managementGl b lGlobal presenceStrength of brands
Sales and profit growth opportunityp g pp yEmerging marketsEstablished
Strong cash flow and dividendsTUPTUP
Strong cash flow and dividendsBusiness model generates cash
Multiple expansion opportunityp p pp y
Dynamics of TWB’s business modelLevers exist to adapt to external forces
A Global Portfolio of Direct Selling CompaniesA Global Portfolio of Direct Selling Companiesg pg p