november rick goings 2016 chairman & ceo

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Rick Goings Chairman & CEO November 2016

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Page 1: November Rick Goings 2016 Chairman & CEO

Rick Goings Chairman & CEO

November 2016

Page 2: November Rick Goings 2016 Chairman & CEO

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

Page 3: November Rick Goings 2016 Chairman & CEO

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Agenda

Business Model

Diversified Portfolio

Growth Opportunities

Financial Performance

Uses of Cash

Page 4: November Rick Goings 2016 Chairman & CEO

4

Powerful Business Model

Group Demonstration Selling Brands & Products

Business Fundamentals Sales Force Opportunity

Page 5: November Rick Goings 2016 Chairman & CEO

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Power of our brand

The well known, aspirational Tupperware brand along with the channel is powerful:

• Relatively low product line competition

• In our category, low channel competition

• Allows maintenance of a strong gross margin supported by innovation & unique features & benefits

• Ability to sell flanker & subcategories

Page 6: November Rick Goings 2016 Chairman & CEO

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Innovative and demonstrable product

OVENWARE

KITCHEN ESSENTIALS

FAST MICROWAVE COOKING

DRINKING SOLUTIONS

MOVE / ON THE GO

FOOD CONSERVATION

CHEF COOKING

KITCHEN ESSENTIALS

Page 7: November Rick Goings 2016 Chairman & CEO

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Power of demonstration selling

Demonstration Unlocks Features & Benefits Education plus Entertainment Allows Selling of High Price Point Items Increases Hourly Earnings Brand Building Sales Force Additions Access to New Hostesses & Consumers

Page 8: November Rick Goings 2016 Chairman & CEO

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Sales Force Opportunity

Consultant

Demonstrates & sells product Income based on

Personal sales

Manager Team Leader

Distributor

Builds a team of 3 – 5 Consultants Income based on

Total team sales Personal sales

Develops Managers within her group Income based on

Sales of the group Total team sales Personal sales

Leads & Builds a Sales Organization Income based on Organizational sales

Independent Business Owners can choose to earn a Part or Full-Time Income

Page 9: November Rick Goings 2016 Chairman & CEO

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Business Fundamentals

Find new sellers

Train new sellers

Leadership Development

Grow the Sales Force

Meetings & Events

Group Demonstration

Recognition & Rewards

Support Consistent Activity

Page 10: November Rick Goings 2016 Chairman & CEO

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Diversified Global Portfolio

Americas*

39% Asia Pacific

34%

*Americas includes Tupperware North America, 15%, Beauty North America, 11% and South America , 13%

Europe

27% 36% in 2006

Share of 2015 Sales

44% in 2006

20% in 2006

Page 11: November Rick Goings 2016 Chairman & CEO

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Emerging Market Growth

Emerging Markets 66% of Sales in 2015 12% CAGR from 2006 to 2015*

Established Market

34% of Sales in 2015 (2)% CAGR from 2006 to 2015*

*2006 – 2015 sales restated at September 2015 exchange rates

Page 12: November Rick Goings 2016 Chairman & CEO

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Seven units over $100 million in 2015 sales

Over

$200 Million

Over

$100 Million

Brazil Indonesia

China

Fuller Mexico

Germany

Tupperware Mexico

Tupperware U.S. & Canada

Page 13: November Rick Goings 2016 Chairman & CEO

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Key Sales and Profit Currencies

91% of 2015 sales and 100% of net profit from outside the U.S.

Basket of Global Currencies

Brazilian real

Chinese renminbi

Euro

Indonesian rupiah

Mexican peso

Page 14: November Rick Goings 2016 Chairman & CEO

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Growth Opportunities

1 Increase Penetration in Emerging Markets

Extend our Reach 3 2 Strengthen the Core Business Model

Page 15: November Rick Goings 2016 Chairman & CEO

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• 85% of the world’s population & 66% of sales in 2015

• Growing Middle Class

• Lower Employment of Women outside the home

• Direct Sales Channel Growth of 4-5% annually through 2019*

*Based on data found on Euromonitor

1 Increase Penetration in Emerging Markets

Page 16: November Rick Goings 2016 Chairman & CEO

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Biggest Penetration Opportunities

China • Over $100 million sales in 2015 • 5,500 studios • 20,000 studio potential India • Less than $100 million sales in 2015 • Population: 1.25 Billion people • Brazil: 200 million people; >$200M sales

Page 17: November Rick Goings 2016 Chairman & CEO

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Strengthen the Core Business Model

Extend our Reach

Page 18: November Rick Goings 2016 Chairman & CEO

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Strengthen the Core Business Model 2 Onboarding & Activation Demonstration Selling

Consistent global program of training, support, activities, and rewards for new consultants to learn fundamentals that will increase productivity & longevity

Brazil & Germany Pilot

Greater penetration of demonstration selling: • Brochure 1 on 1 demo • 1 on 1 group demo • Group demo culinary

Mexico & Brazil

Page 19: November Rick Goings 2016 Chairman & CEO

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3 Extend our Reach

Party + Experience Studios Brand Ambassador

Blending of the live, in home party and e-commerce through video technology

Tupperware U.S. Pilot

Partnering with sales force leaders to establish modern contact centers more accessible to our sales force and consumers

Evolution Across All Markets

Opportunity to engage former sellers through the use of more consistent marketing efforts including digital

4 Europe Units

Pilot testing begins

Page 20: November Rick Goings 2016 Chairman & CEO

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The Studio

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The Studio

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Vision 2020 Strategies Timeline

Late 2013

Group Formed

1st Half 2014

Selection of areas of focus

2nd Half 2014

Creation of best practices & toolkits

1st Half 2015

Proof of concept begins

2nd Half 2015

First results for Pilots captured

Refinement of

toolkits

2016

Integration of Onboarding & Success Formula initiatives

Proof of concept for Extend the Reach initiatives

2017

Strengthen the Core & Extend the Reach

More widely adopted

Page 23: November Rick Goings 2016 Chairman & CEO

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4% to 9%* local currency sales growth each year

2007 - 2015

Strong history of growth

5.0% to 12.8%** pretax ROS in 2003 & 2015

65 bps** annual average margin

improvement from 2003 to 2015 *See appendix for the Company’s reported sales from 2007 to 2015 and annual basis point improvement in local currency **Pre-tax ROS shown is excluding items. See GAAP to non-GAAP reconciliation in the appendix

Page 24: November Rick Goings 2016 Chairman & CEO

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Cash producer - free cash flow

$-

$50

$100

$150

$200

$250

$300

2009 2010 2011 2012 2013 2014 2015 2016*Net Cash Flow before Financing Activities (Free Cash Flow)GAAP Net Income

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

*Outlook as of October 19, 2016 earnings release

Page 25: November Rick Goings 2016 Chairman & CEO

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Capital Allocation Policy

1

Dividend payout based on 50% of

trailing year’s EPS without items

Cash Flow from Operating net of Investing Activities

2

Manage Debt under leverage target of

1.75x Net Debt to EBITDA

3

Repurchase shares in the open market

with remaining cash and debt capacity

Allows Flexibility

Page 26: November Rick Goings 2016 Chairman & CEO

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Uses of Cash 2016 Guidance

Dividends 68 cents per share quarterly

Yield 4.5%**

Improve Leverage Ratio Toward 1.75X Target

through moderate EBITDA growth & debt repayment*

*As of October 19, 2016 earnings release **Yield based on $2.72 annual dividend and closing share price of $60.22 on November 7, 2016

Cash Flow from Operating Net of Investing Activities Guidance: $195 to $205 million*

Page 27: November Rick Goings 2016 Chairman & CEO

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Why Invest

Competitive Business Model

Opportunities for Above Average Growth

Diversified Portfolio for Sustainable Performance

Significant Return of Capital to Shareholders

Page 28: November Rick Goings 2016 Chairman & CEO

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Appendix

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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 $225.6

Adjustments:

Gains on disposal of assets including insurance recoveries (3.6) (13.1) (4.0) (12.3) (11.8) (24.9) (21.9) (0.2)

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

Debt refinancing costs associated with Sara Lee acquisition 29.1

Acquired intangible asset amortization 1.8 25.0 13.6 11.9 5.1 3.9

Purchase accounting intangibles and goodwill impairment 11.3 9.0 28.1 4.3

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 (3.3)

Net Income (Adjusted) $48.8 $83.3 $90.5 $109.6 $141.2 $169.7 $196.1 $237.9

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Non-GAAP Financial Reconciliation

*High end of guidance range provided in October 19, 2016 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.

2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016* 2016*

Net Income (GAAP) $218.3 $193.0 $274.2 $214.4 $185.8 $43.4 $52.4 $48.8 $71.0 $215.6

Adjustments:

Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.7) (2.7) (13.7) (0.1) (0.8) (24.2) -- (24.2)

Other Income from real estate operations sold (0.9) -- (0.9)

Re-engineering and other restructuring costs (includes Pension Settlement costs) 9.6 22.1 9.3 13.4 21.8 1.1 2.7 3.3 3.9 9.3

Impact of Venezuelan bolivar devaluation from balance sheet positions 4.2 42.4 14.9 0.2 3.6 0.3 2.0 7.0

Acquired intangible asset amortization 2.9 2.1 4.8 11.9 10.2 2.0 2.0 1.9 1.8 7.6

Swap impairment and debt cost write-off 19.8

Purchase accounting intangibles and goodwill impairment 36.1 76.9

Income tax impact of adjustments (9.6) (4.8) (3.5) (4.8) 1.5 (0.7) (1.2) 15.0 (6.4) 6.6

Net Income (Adjusted) $273.3 $281.4 $288.3 $274.6 $220.5 $45.9 $58.7 $44.2 $72.3 $221.0

Pre –tax Adjusted ROS 13.9% 14.1% 14.1% 13.9 % 12.8% 11.7% 13.7% 11.5% 15.4% 13.2% Average number of diluted shares (millions) 61.4 56.4 53.1 51.0 50.4 50.6 50.7 50.8 51.0 50.8

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Reported Sales 2008 – 2015

2008 2009 2010 2011* 2012 2013 2014 2015 2016**

Sales $2,162 $2,128 $2,300 $2,585 $2,584 $2,672 $2,606 $2,284 $2,266

Reported Sales Growth 9% (2)% 8% 12% 0% 3% (2)% (12)% (2)%

Local Currency Sales Growth*** 8% 6% 6% 9% 5% 6% 5% 4% 3%

* 2011 included 53 weeks. ** High-end of guidance range included in October 19, 2016 earnings release, including 53rd week in Q4. ***Calculated by comparing sales with prior year translated at the current year exchange rate.

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*Guidance provided in October 19, 2016 Earnings Release. ** GAAP to non-GAAP reconciliation on slide 30

Outlook* Fourth Quarter 2016 Guidance

2016 Full Year Guidance

USD Sales +5% – 7% (2)%

GAAP EPS $1.34 – $1.39 $4.20 – $4.25

GAAP Pre-tax ROS 13.9% – 14.2% 13.2% – 13.3%

Local Currency Sales +4% – 6% +3%

EPS, excluding items** $1.37 – $1.42 $4.30 – $4.35

Pre-tax ROS, excluding items 15.2% – 15.5% 13.1% – 13.2%

FX Impact on EPS comparison, excluding items $0.03 ($0.34)

Page 33: November Rick Goings 2016 Chairman & CEO

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* High end of guidance range provided in October 19, 2016 Earnings Release. **GAAP to non-GAAP reconciliation on slide 30

Return on Sales Guidance* 2016

Fourth Quarter High-End Guidance

2016 Full Year

High-End Guidance

2015 Pretax ROS 15.1% 12.8%

Translation FX 20 bp (40) bp

2015 Pretax ROS (constant currency) 15.3% 12.4%

LC Operating Margin Improvement 10 bp 70 bp

Net Interest Expense -- 10

2016 Pretax ROS (high end guidance)** 15.4% 13.2%

Page 34: November Rick Goings 2016 Chairman & CEO

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$4.37 ($0.34)

($0.04) ($0.03)

$0.29

$0.09

$4.35

$0.01

$3.50

$4.00

$4.50

2015 FX 2015 at 2016Rates

Tax Shares Interest Unallocated Ops 2016

2 cent decrease in Reported $

8% increase in Local Currency**

$4.03

Full Year 2016 EPS Outlook* (diluted)

*Excluding items. See Non-GAAP reconciliation on slide 30. ** High end of guidance range provided in October 19, 2016 Earnings Release.

Page 35: November Rick Goings 2016 Chairman & CEO

Rick Goings Chairman & CEO

November 2016