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Earnings ReleaseApril 24, 2019
First Quarter 2019
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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
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Strategic Roadmap
Driving
Innovation
Extending Access
Deploying Technology
Contemporizing the Service Model
Simplifying & Streamlining the
Structure
• New Products
• New Alliances
• New Experience Studios
• Retail Outlet Growth
• New Partnerships (B2B)
• Digital Engagement
• Online Presence
• No Admin and Logistics model–Continental Europe
• Competitive Compensation Models – Asia Pacific
• Business Model Changes – Asia Pacific
• Creating Operational Efficiency –Europe
• Review and Benchmark Globally
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First Quarter Highlights
• Sales down 10% in dollars and 2% local currency
• Emerging markets, -3% L.C. (69% of sales)
• Established markets, -2% L.C. (31% of sales)
• Adjusted EPS of $0.90, down 1% in dollars and up13% in local currency
• Within guidance range
• Returned $34 million to shareholders through dividends
• Total Sales Force down 3% year-over-year (2pp sequential improvement)
• Active Sellers down 8% compared with last year (1pp sequential improvement)
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International Design Awards
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Experience Studio Expansion
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Strategic Roadmap
Driving
Innovation
Extending Access
Deploying Technology
Contemporizing the Service Model
Simplifying & Streamlining the
Structure
• New Products
• New Alliances
• New Experience Studios
• Retail Outlet Growth
• New Partnerships (B2B)
• Digital Engagement
• Online Presence
• No Admin and Logistics model–Continental Europe
• Competitive Compensation Models – Asia Pacific
• Business Model Changes – Asia Pacific
• Creating Operational Efficiency –Europe
• Review and Benchmark Globally
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Financial Highlights
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First Quarter Sales down 2% in Local Currency
Brazil -8%
Indonesia -17%
India -45%
TW Mexico -1%
Germany-11%
France+69%
TW S. Africa+5%
TW U.S./Canada
-16%
Fuller Mexico -11%
Argentina +35%
EmergingMarkets -3% in Local Currency Sales69% of First Quarter Sales
Established Markets -2% in Local Currency Sales31% of First Quarter Sales
China +7%
+ See information in dollars in the appendix.
CIS+16%
Italy-4%
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Return on Sales*
*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and the Q1 2019 earnings release.
2019 First Quarter Low End Guidance
2019 First Quarter Actual
2018 Pretax ROS 12.5% 12.5%
Translation FX (40) bp (40) bp
2018 Pretax ROS (constant currency) 12.1% 12.1%
LC Operating Margin 20 bp — bp
Net Interest Expense 10 10
2019 Pretax ROS 12.4% 12.2%
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*GAAP to NON-GAAP reconciliation in attached appendix and the Q1 2019 earnings release.
2019Q1 Adjusted EPS vs January Guidance*(diluted)
At low-end guidance range
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13% Increase in Local Currency
*GAAP to NON-GAAP reconciliation in attached appendix and the Q1 2019 earnings release.
Q1 Adjusted EPS Roll-Forward* (diluted)
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Uses of Cash - 2019 Guidance
Dividends 27 cents per share quarterly($73M with $52M run rate)
Cash Flow from OperatingNet of Investing Activities:
$120 - $140 million (incl. $40M Revitalization/Transformation Payments)
Potential Share Repurchases up to $100 million
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Second Quarter 2019 Guidance Full Year 2019 Guidance
USD Sales (8)% - (6)% (5)% - (3)%
GAAP EPS $1.09 - $1.14 $3.65 - $3.76
GAAP Pre-tax ROS 13.7% - 14.1% 12.8% - 13.0%
Local Currency Sales (4)% - (2)% (2)% - 0%
EPS, excluding items* $1.00 - $1.05 $4.03 - $4.14
Pre-tax ROS, excluding items 13.3% - 13.7% 13.5% - 13.6%
FX Impact on EPS comparison, excluding items $(0.06) $(0.14)
Outlook*
* Excluding items. GAAP to non-GAAP reconciliation in attached appendix and the Q1 2019 earnings release.
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Q & A
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Appendix
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Second Quarter 2019 Guidance
Full Year 2019 Guidance
2018 Pretax ROS 15.0% 13.8%
Translation FX (10) bp — bp
2018 Pretax ROS (constant currency) 14.9% 13.8%
LC Operating Margin Change (120) bp (20) bp
2019 Pretax ROS (high end guidance) 13.7% 13.6%
Return on Sales Guidance*
*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and the Q1 2019 earnings release.
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4% decrease in Reported $
2-cent decrease in Local Currency
*High end of range.
Full Year 2019 EPS Outlook Excluding Items* (diluted)
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Non-GAAP Financial Reconciliation
*High-end of guidance range provided in April 24, 2019 Earnings Release.Impact of changes in foreign currency versus prior year are updated monthly and posted on: https://ir.tupperwarebrands.com/foreign-exchange-impact.cfm.
2017 2018 Q1 2019 Q2 2019* 2019*
Net Sales $2,255.8 $2,069.7 $487.3 $506.0 $2,004.4
Net Income (loss) (GAAP) $(265.4) $155.9 $36.9 $55.8 $183.6
Adjustments:
Losses (Gains) on disposal of assets, including insurance recoveries (9.1) (18.7) 0.9 (10.0) (29.8)
Purchase accounting intangibles impairments 62.9 — — — —
Re-engineering and other restructuring costs (includes Pension Settlement costs) 74.4 19.3 4.6 6.2 35.1
Impact of Venezuelan bolivar and Argentine peso devaluation 7.4 2.1 0.3 — 0.3
Acquired intangible asset amortization 7.9 7.6 1.8 1.8 7.2
Income tax impact of adjustments 370.2 49.6 (0.6) (2.5) 5.7
Net Income (Adjusted) $248.3 $215.8 $43.9 $51.3 $202.1
Adjusted EPS 4.84 4.30 0.90 1.05 4.14
Pre-tax Adjusted ROS 14.6% 13.8% 12.2% 13.7% 13.6%
Average number of diluted shares (millions) 51.3 50.2 48.8 48.8 48.8
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First Quarter Sales Down 10% in Dollars
Brazil -21%
Indonesia -20%
India -49%
TW Mexico -3%
Germany-19%
France+55%
TW S. Africa-12%
TW U.S./Canada
-17%
Fuller Mexico -14%
Argentina -32%
EmergingMarkets-11% in Dollar Sales69% of First Quarter Sales
Established Markets-7% in Dollar Sales
31% of First Quarter Sales
China +1%
CIS+1%
Italy-11%
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Global Portfolio – First Quarter
Segment Sales ShareEmerging/Established %
Earnings ReleaseApril 24, 2019
First Quarter 2019
