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February 21, 2014 Leading Change in Turbulent Times Michael B. Polk – President & Chief Executive Officer Newell Rubbermaid

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Page 1: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

February 21, 2014

Leading Change in Turbulent TimesMichael B. Polk – President & Chief Executive Officer Newell Rubbermaid

Page 2: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Forward-looking StatementsStatements in this presentation that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about theeffects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, capital and other expenditures, cashflow, dividends, restructuring and other project costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, changes inexchange rates, product recalls, expected benefits, synergies and financial results from recently completed acquisitions and planned acquisitions and divestitures and management'splans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe,""estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actualresults to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrialsectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with othermanufacturers and distributors of consumer products; major retailers' strong bargaining power and consolidation of our retail customers; changes in the prices of raw materials andsourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop,maintain and strengthen our end-user brands, including the ability to realize anticipated benefits of increased advertising and promotion spend; product liability, product recalls orregulatory actions; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; a failure of one of our key informationtechnology systems or related controls; the potential inability to attract, retain and motivate key employees; future events that could adversely affect the value of our assets and requireimpairment charges; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pensionplans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreignoperations, including exchange controls and pricing restrictions; our ability to realize the expected benefits, synergies and financial results from our recently acquired businesses andpending acquisitions; our inability to obtain stockholder or domestic and foreign regulatory approvals required to complete planned acquisitions and divestitures; failure to satisfy acondition to closing of planned acquisitions and divestitures; our ability to complete planned acquisitions and divestitures; difficulties or high costs associated with securing financingnecessary to pay the cash portion of the merger consideration contemplated by the pending Jarden transaction; risks related to the substantial indebtedness that Newell Rubbermaid willincur in connection with the pending Jarden transaction and our ability to maintain our investment grade credit ratings; difficulties integrating our business with Jarden and unexpectedcosts or expenses associated with the pending Jarden transaction; and those factors listed in our most recently filed Quarterly Report on Form 10-Q and Exhibit 99.1 thereto filed with theSecurities and Exchange Commission. Changes in such assumptions or factors could produce significantly different results. The information contained in this presentation is as of the dateindicated. The company assumes no obligation to update any forward-looking statements contained in this presentation as a result of new information or future events or developments.

This presentation contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission and includes a reconciliation ofthese non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP. While the company believes that these non-GAAP financialmeasures are useful in evaluating the company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the relatedfinancial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.

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Additional Information

Nancy O’DonnellVP, Investor Relations(770) [email protected]

Alisha DubiqueSr. Manager, Investor Relations(770) [email protected]

INVESTOR RELATIONS CONTACTS:

Additional Information and Where to Find it

In connection with the pending Jarden transaction, Newell Rubbermaid and Jarden have filed a registration statement on Form S-4 that includes the Joint Proxy Statement of NewellRubbermaid and Jarden and that also constitutes a prospectus of Newell Rubbermaid. Newell Rubbermaid and Jarden plan to mail to their respective shareholders the Joint ProxyStatement/Prospectus in connection with the pending Jarden transaction. WE URGE INVESTORS AND SHAREHOLDERS TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANYOTHER RELEVANT DOCUMENTS, BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT NEWELL RUBBERMAID, JARDEN, AND THE PENDING JARDEN TRANSACTION. Investorsand shareholders are able to obtain copies of the Joint Proxy Statement/Prospectus and other documents filed with the SEC by Newell Rubbermaid and Jarden free of charge at theSEC’s website, www.sec.gov. In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents filed with the SEC byNewell Rubbermaid by accessing Newell Rubbermaid’s website at www.newellrubbermaid.com by clicking on the “Investor Relations” link and then clicking on the “SEC Filings” link orby contacting Newell Rubbermaid Investor Relations at [email protected] or by calling 1-800-424-1941. Shareholders may also read and copy any reports,statements and other information filed by Newell Rubbermaid or Jarden with the SEC, at the SEC public reference room at 100 F Street, N.E., Washington D.C. 20549. Please call theSEC at 1-800-SEC-0330 or visit the SEC’s website for further information on its public reference room.

Participants in the Merger Solicitation

Newell Rubbermaid, Jarden and certain of their respective directors, executive officers and other persons may be considered participants in the solicitation of proxies from therespective shareholders of Newell Rubbermaid and Jarden in respect of the proposed combination contemplated by the Joint Proxy Statement/Prospectus. Information regardingNewell Rubbermaid’s directors and executive officers is available in Newell Rubbermaid’s Form 10-K filed with the SEC on March 2, 2015, its proxy statement filed with the SEC onApril 1, 2015 in connection with its 2015 annual meeting of stockholders and its Forms 8-K filed with the SEC on February 12, 2015, May 19, 2015, October 9, 2015, November 16,2015, December 14, 2015 and December 29, 2015. Information regarding Jarden’s directors and executive officers is available in Jarden’s Form 10-K filed with the SEC on March 2,2015, its proxy statement filed with the SEC on April 20, 2015 in connection with its 2015 annual meeting of stockholders and its Forms 8-K filed with the SEC on January 5, 2015, June9, 2015, December 17, 2015 and January 7, 2016. Other information regarding persons who may be considered participants in the proxy solicitation and a description of their directand indirect interests, by security holdings or otherwise, are contained in the Joint Proxy Statement/Prospectus and other relevant materials filed with the SEC.

Page 4: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Some background on me . . . Procter & Gamble (3 years)

— Paper Manufacturing and R&D (Mehoopany, Cincinnati)

General Foods/Kraft/Kraft Foods International (16 years)

— Coffee, Beverages, Cereal, Cookies, Crackers, Confections (North America)

— All brands and categories (Asia Pacific)

— Brand, Sales, General Management, and Executive (New York, Chicago, Melbourne)

Unilever (8 years)

— All brands and categories

— Americas, Global (New York, London)

Newell Rubbermaid (~5 years as CEO; ~7 years on Board of Directors)

— Global; all brands & categories (Atlanta)

Currently on Boards of Newell Rubbermaid, Colgate Palmolive, and Morehouse College

Cornell University (Operations Research & Industrial Engineering) ‘82; Harvard Business School ‘87

Married with seven children (3 boys, 4 girls; 3 in college, 4 in high school)

Page 5: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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$6bn 85% D15% E

Five GlobalSegments

40+Brands

Some background on Newell Rubbermaid . . .

Page 6: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Leading change in turbulent times

Page 7: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Leading portfolio of consumer durable brands

Presenter
Presentation Notes
For background, Newell Rubbermaid is a $6 billion company with leading brands from Sharpie, Calphalon to Irwin Tools to premium beverage ware like Contigo, which was part of the Ignite Holdings acquisition we completed in September and Baby Jogger, an acquisition that we closed at the end of last year. We have approximately 17,000 employees globally and sales in more than 100 countries. Our ambition is to accelerate growth to become the preeminent consumer durable company in the world.
Page 8: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Compete in large, unconsolidated markets

Source: euromonitor

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Markets responsive to investment and ideas

-5.0

0.0

5.0

10.0

15.0

POS GRPs

CumulativePOS growth $m Cumulative GRPs

US advertised product categories only

NWL NWL

Page 10: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Markets with low cost of growth

Share of Voice USA

NWL USshare of voice

HPC leadershare of voice

#1 HPC28%

NWL US47%

#1 HPC USA ~10% revenuefor 28% SOV

NWL USA ~2% revenuefor 47% SOV

Advertising Investment USA

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Great potential for top and bottom line growth

LOW COST

NWL USshare of voice

HPC leadershare of voice

#1 HPC28%

NWL US47%

LESS CONSOLIDATED

FMCG top 3category share

NWL US top 3category share

FMCG75%+

NWL US48%

RESPONSIVE

Innovationvitality target

Innovationvitality target

FMCG30%

NWL30%

over$35bn

NWL USmarket size

LARGE

Page 12: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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NWL Strategic Opportunity (2011)

“Holding company” approach deleveraged scale

High cost structure and low brand investment

Resources allocated democratically

“Holding company” approach disabled core capabilities

Page 13: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Sharp choices via new strategy (2012)

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Established transformation roadmap (2012)

Page 15: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Reshaped the company (2013)

Corporate

3 Groups

13 Global BUs

Functions in GBUs

Holding Company

Corporate

Operating Company

FunctionsWriting

Commercial

Tools

Baby

Home

Page 16: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Simultaneously launched new org model (2013)

New Model Two Core Activity Systems

Brand Development

Commercial Delivery

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Unlocked capacity to grow

Corporate

New Operating Model

Functions

Writing

Commercial

Tools

Baby

Home

Reduced Overhead

Headcount as of mid-2011 and mid-year 2015

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Invested to create advantaged capabilities

Insights Design Marketing Selling E-comm

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Strengthened quality of advertising

High Impact Creative Strong Ad Test Results

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Doubled the value of our innovation funnel

Note: Annualized irev is projected incremental revenue as validated through concept test and sometimes product/concept fulfilment testing

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Strengthened innovation to market in 2015

Sharpie® ExtremePaper Mate® InkJoy

2in1stylus Mr. Sketch® Washable

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Strengthened innovation to market in 2015

RCP Maximizer™ Mop4Ever™ Car Seat Calphalon® SharpIn™

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Strengthened innovation to market in 2015

Vise-Grip® Cutting Pliers Vise-Grip® Multi-Tool Lenox® Curved Recip

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Stronger commercial innovation

Writing Displays in Mexico and Argentina

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Increased investment in brands

2.7 3.2

3.6 4.3

4.9

2.5

3.5

4.5

5.5

2011 2012 2013 2014 2015

A&P % of Revenue

Note: Actual rates; 2013/2014 adjusted for discontinued operations

Winning Innovation

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Driving organic growth acceleration

+2.4%2011

+2.7%2012

+3.0%2013

+3.6%1

2014+5.5%2015

Core Sales Growth Rate 2011 to 2015

1 2014 excludes $25m of product line exits (EMEA) and the planned contraction of the Rubbermaid Consumer Storage business (USA) ; combined impact 60bps

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Simultaneous margin and earnings development

1.54

1.67

1.82

2.00

2.18

1.30

1.50

1.70

1.90

2.10

2011 2012 2013 2014 2015

13.1 13.2

13.4

13.8

14.3

12.8

13.2

13.6

14.0

14.4

2011 2012 2013 2014 2015

*Both normalized EPS and operating income margin restated for discontinued operations

Normalized Operating Margin Normalized EPS

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Actively managing portfolio: $0.5bn rev out

Hardware

Teach

Postage

Medical

Disposals

Electrics (Beauty, Culinary)

EMEA (Baby, Gifting)

Rubbermaid Consumer Storage

Exits/De-Emphasized

~425 millionNo to low margin

Increasingly commoditizedStrategically unattractiveExcluded from core sales

~85 millionNo to low margin

Strategically unattractiveNot excluded from core sales

Page 29: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Actively managing portfolio: $0.3bn rev in

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So far so good for shareholders . . .

NWL Share Price NWL Annualized Dividend

20 cents

2010

76 cents

2015

Page 31: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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With significantly more opportunity ahead

Project Renewal Savings

$360m to date

$315m to come

Source: Latest Company 10-K; Newell 2014 Actuals

Overhead Ratio (including R&D)

Page 32: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Fund ideas that are larger, more disruptive

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Bigger better ideas in 2016

PaperMate® InkJoy® Gel Pens

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Bigger better ideas in 2016

Expo® 2 in 1 Dry Erase MarkersSharpie® Clearview Fine

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Bigger better ideas in 2016

Rubbermaid® Food Preservation

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Bigger better ideas in 2016

Rubbermaid® Food on-the-go

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Bigger better ideas in 2016

Dymo® Industrial XTL Labellers & Tapes

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On track to surpass historical guidance metrics

First Five Years 2012 to 2017 – GGP Outcomes

Core growth consistently 3 to 5%

Normalized gross margin greater than 40%

Normalized operating margin greater than 15%

Note: Newell long term guidance metrics prior to Growth Game Plan (3 to 5% core growth; 40% normalized gross margin; 15% normalized operating margin)

Page 39: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Sharper choices and big ambition next five years

Portfolio Priorities 2016 to 2020

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Both win share at home

InnovationBrand buildinge-Commerce

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Extend Footprint of business

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Challenges present, but manageable

Foreign Exchange

Changing Retail

Landscape

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Growth Game Plan our blueprint

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The next transformative swing . . .

Page 46: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

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Leading change in turbulent times

Page 47: Leading Change in Turbulent Times - spim.org · In addition, investors and shareholders are able to obtain free copies of the Joint Proxy Statement/Prospectus and other documents

February 21, 2014

Leading Change in Turbulent TimesMichael B. Polk – President & Chief Executive Officer Newell Rubbermaid