Fourth Quarter Earnings Release 2016 February 1, 2017 Forward - - PowerPoint PPT Presentation

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Fourth Quarter Earnings Release 2016 February 1, 2017 Forward - - PowerPoint PPT Presentation

Mar 10, 2024 371 likes •555 views

Fourth Quarter Earnings Release 2016 February 1, 2017 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

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Earnings Release

February 1, 2017

Fourth Quarter 2016

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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

  • ur 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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Fourth Quarter Highlights

  • Sales* up 1% in dollars
  • Sales* up 3% in local currency
  • Emerging markets, +8% (65% of sales)
  • Established markets, -4% (35% of sales)
  • Adjusted EPS of $1.45. Up 9% in local currency, 3 cents over

high end of guidance range, up 7% in dollars

  • Returned $35M to shareholders through dividends
  • Total Sales Force count up 1% year-over-year
  • Active Sellers down 8% compared with last year

*Includes 4 – point benefit from an additional week in the fiscal quarter.

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Fourth Quarter Sales* up 3% in Local Currency+

Brazil +32% Indonesia

  • 17%

Malaysia/ Singapore +9% India

  • 14%

TW Mexico +1% Germany

  • 10%

France

  • 6%

TW S. Africa +53% TW U.S./Canada +8% BeautiControl

  • 24%

Fuller Mexico

  • 8%

Avroy Shlain +13% Korea +5% Argentina +42% Turkey

  • 11%

Emerging Markets

+8% in Local Currency Sales 65% of Fourth Quarter Sales

Established Markets

  • 4% in Local Currency Sales

35% of Fourth Quarter Sales

China +31% Philippines +1% CIS +6%

* The fourth quarter contained a 14th week under the Company’s fiscal calendar.

+ See information in dollars in the appendix.

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Financial Highlights

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Seven units over $100 million in 2016 sales

$200M+

Brazil TW U.S. & Canada China Fuller Mexico Germany Indonesia Tupperware Mexico

$100M+ Major Currencies

Brazilian real Chinese renminbi Euro Indonesian rupiah Mexican peso

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$1.33

( $0.01) ( $0.02) ( $0.02) $0.08 $0.09

$1.45

$1.25 $1.30 $1.35 $1.40 $1.45 $1.50 $1.55

2015 at 2016 Rates Shares Tax Interest Unallocated Ops 2016

9% Increase in Local Currency

*See GAAP to NON-GAAP reconciliation attached to Q4 2016 earnings release

Q4 Adjusted Earnings per Share Roll-Forward* (diluted)

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2016 Fourth Quarter High End Guidance 2016 Fourth Quarter Actual 2016 Full Year High End Guidance 2016 Full Year Actual

2015 Pretax ROS 15.1% 15.1% 12.8% 12.8% Translation FX 20 bp 10 bp (40) bp (40) bp 2015 Pretax ROS (constant currency) 15.3% 15.2% 12.4% 12.4% LC Operating Margin Improvement 10 bp 130 bp 70 bp 100 bp Net interest expense

  • (20) bp

10 bp

  • 2016 Pretax ROS

15.4% 16.3% 13.2% 13.4%

Return on Sales*

*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q4 2016 earnings release

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Uses of Cash

Cash Flow from Operating Net of Investing Activities* Guidance: $185 to $195 million Dividends 68 cents per share quarterly Improve Leverage Ratio to below 1.75X Target at year-end through EBITDA growth & debt repayment Cash Flow from Operating Net of Investing Activities $213 million Dividends Quarterly: 68 cents per share $139 million Debt Repayments Net Debt to EBITDA ration to 1.78X

2016 2017 Guidance

*2017 guidance excludes potential land sales and capital expenditures related to land development.

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First Quarter 2017 Guidance Full Year 2017 Guidance

USD Sales 0% – 2% 0% – 2% GAAP EPS $0.84 – $0.89 $4.26 – $4.36 GAAP Pre-tax ROS 10.9% – 11.4% 13.1% – 13.2% Local Currency Sales +1% – 3% +1% – 3% EPS, excluding items* $0.89 – $0.94 $4.47 – $4.57 Pre-tax ROS, excluding items 11.6% – 12.1% 13.9% FX Impact on EPS comparison, excluding items ($0.02) ($0.06)

Outlook*

*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q4 2016 earnings release

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2017 First Quarter High End Guidance 2017 Full Year High End Guidance

2016 Pretax ROS 11.7% 13.4% Translation FX (10) bp

  • 2016 Pretax ROS (constant currency)

11.6% 13.4% LC Operating Margin Improvement 35 bp 40 bp Net Interest Expense 10 10 2017 Pretax ROS (high end guidance) 12.1% 13.9%

Return on Sales Guidance*

*Excluding items. GAAP to non-GAAP reconciliation in attached appendix and in the Q4 2016 earnings release

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Appendix

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$4.37

($0.06) ($0.03) ($0.03) $0.34

$4.57

$3.50 $4.00 $4.50 $5.00

2016 FX 2016 at 2017 Rates Unallocated Shares Tax Ops 2017 ($0.02)

20 cent increase in Reported $ 6% increase in Local Currency

$4.31

*High end of range. See information on GAAP basis in appendix

Full Year 2017 EPS Outlook Excluding Items* (diluted)

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Non-GAAP Financial Reconciliation

*High-end of guidance range provided in February 1, 2017 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.

2015 Q4 2016 2016 Q1 2017* 2017* Net Sales $2,283.8 600.9 $2,213.1 $533.9 $2,248.6 Net Income (GAAP) $185.8 $79.0 $223.6 $45.5 $222.2 Adjustments: Gains on disposal of assets, including insurance recoveries (13.7) (2.2) (27.3)

  • Other Income from real estate operations sold
  • (0.9)
  • Re-engineering and other restructuring costs

(includes Pension Settlement costs) 21.8 4.8 11.9 2.0 10.0 Impact of Venezuelan bolivar devaluation from balance sheet positions 14.9 0.1 4.3

  • Acquired intangible asset amortization

10.2 1.8 7.6 1.8 7.0 Income tax impact of adjustments 1.5 (9.8) 3.3 (1.3) (6.0) Net Income (Adjusted) $220.5 $73.7 $222.5 $48.0 $233.2 Adjusted EPS $4.37 $1.45 $4.39 $0.94 $4.57 Pre-tax Adjusted ROS 12.8% 16.3% 13.4% 12.1% 13.9% Average number of diluted shares (millions) 50.4 50.8 50.7 50.9 51.0

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Fourth Quarter Sales* Up 1% in Dollars

Brazil +57% Indonesia

  • 14%

Malaysia/ Singapore +8% India

  • 16%

TW Mexico

  • 15%

Germany

  • 12%

France

  • 8%

TW S. Africa +55% TW U.S./Canada +8% BeautiControl

  • 24%

Fuller Mexico

  • 22%

Avroy Shlain +14% Korea +3% Argentina

  • 3%

Turkey

  • 22%

Emerging Markets

+5% in Dollar Sales 65% of Fourth Quarter Sales

Established Markets

  • 4% in Dollar Sales

35% of Fourth Quarter Sales

China +22% Philippines

  • 3%

CIS +10%

* The fourth quarter contained a 14th week under the Company’s fiscal calendar.

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Global Portfolio – Fourth Quarter

Europe 27% Asia Pacific 32% Tupperware N.A 16% Beauty NA 7% South America 18%

Segment Sales Share

32% 82% 37% 74% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Europe Asia Pacific Tupperware NA Beauty NA South America

Established Emerging

Emerging/Established %

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Earnings Release

February 1, 2017

Fourth Quarter 2016