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March 2013 Rick Goings, Chairman & CEO November 2013 Building Confidence Changing Lives

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Page 1: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

March 2013

Rick Goings, Chairman & CEO

November 2013

Building Confidence Changing Lives

Page 2: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

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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.

www.tupperwarebrands.com

Forward Looking Statements

Page 3: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

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Sustain Tupperware Brands

Position as the Premier, Direct

to Consumer, Global Marketer

of Quality Innovative Products

Our Going Forward Objective:

Page 4: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Our Model is Actually a Multi-

Local System

• Product Innovation

• Entertaining & Informative Selling

Method

• Compelling Sales Force

Opportunity/Structure

• Solid Direct Selling Fundamentals

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Page 5: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Typical Country Structure

Distributor Model

TUPPERWARE GERMANY Est. 1962

Headquarters in Frankfurt/Main

Logistics center in Eppertshausen

Approx. 260 Team Leaders

135 Distributors Each controls a specific geography

Approx. 3,850 Unit Managers

Approx. 60,000 Demonstrators

Belgium Manufacturing & Warehouse

Tours Manufacturing

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Page 6: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Germany Distributor Structure

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2 Team Leaders

440 Demonstrators

Average German

distributor has

28 Unit Managers

Sales per Distributor varies by

market

Page 7: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Our Formula…

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PRODUCT INNOVATION

ENTERTAINING AND

INFORMATIVE SELLING METHOD

COMPELLING SALES FORCE

OPPORTUNITY/ STRUCTURE

SOLID DIRECT SELLING

FUNDAMENTALS

Page 8: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Product Innovation

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Food

Storage

Kitchen

Tools &

Gadgets

Table Top & Serving

Kitchen

Prep

Cutlery &

Cookware

Microwave

Baking &

Ovenware

Approximately 25% of Sales each year to come from new products

(products introduced in the last 2 years)

On-the-Go & Water

Page 9: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Entertaining & Informative

Selling Method

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Group Presentation = Party

Party every 1.4 seconds

Advertising Retail Rent

Page 10: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Compelling Sales Force

Opportunity & Structure

Earning Opportunity Career Opportunity

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Part Time

Supplemental

Income

Super

Seller

Demonstrator

Unit

Manager

Team

Leader

Distributor

Page 11: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Solid Direct Selling

Fundamentals • Training

• Recognition

• Competition

• Motivation

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Page 12: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

A Balanced Global Portfolio

Established Markets 39% of 2012 Sales 14% world population

Emerging Markets 61% of 2012 Sales 86% world population

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Page 13: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

76% Tupperware

Brand

Housewares

24% Beauty &

Personal Care

Products

Tupperware AND Beauty

*Full Year 2012

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Page 14: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

TWB – supported by Social Media

iTUP (think Rosetta

Stone)

Sales Force Webinars

Living Cook Books

Tupperware

Hostesses

and Fans

Host 2 Parties

per Year

− Affiliation

− Allegiance

− Advocate

Promoters of

Brand & Products − No Rent

− No Advertising

Interactive

Selling System

− 2.8M Sales Force

− Party every 1.4 sec

− Driven by Earning Opportunity and Career path

Social Network

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Page 15: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Asia Pacific • Middle Class expected to grow from 500 million

to 1.7 billion by 2020

Central & South America • Middle Class expected to grow 70M, almost

40%, by 2020

Source OECD, The Emerging Middle Class in Developing Countries, January 2010

Emerging Market Penetration

Global Middle Class expected to

grow from 1.8B to 3.2B by 2020

Key Levers for Growth…

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Page 16: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Dynamic Emerging Markets

Growth Is Happening NOW!

Brazil +30%

Indonesia

+35%

Venezuela +28%

Malaysia/ Singapore

+8%

Turkey +34%

India +17%

Tupperware Mexico

+4%

China +23%

Total Emerging Markets +13% 16

Q3 2013 Year to Date (local currency)

Page 17: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Basket of Global Currencies

Key Sales & Profit Currencies

• Euro

• Indonesian Rupiah

• Mexican Peso

• Brazilian Real

• Malaysian Ringgit

90% of 2012 sales from outside the U.S.

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Page 18: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Consistently Growing Sales & Profit

$0

$50

$100

$150

$200

$250

$300

$350

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2005* 2006 2007 2008 2009 2010 2011 2012 2013**

Sales GAAP Net Income Net Income-excluding items

* Acquired Sara Lee direct selling businesses December 2005 ** High end of guidance range provided in October 23, 2013 Earnings Release

$million

GAAP Net Inc. includes impact of non-cash purchase accounting asset impairment charges

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Page 19: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Our Pre-Tax Return on Sales is also

Growing

5.0%

7.8% 8.4%

7.1%

8.7% 9.6%

12.1% 13.7%

13.9% 14.2% 14.3%

0%

2%

4%

6%

8%

10%

12%

14%

16%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

GAAP Pre-Tax ROS Pre-Tax ROS Excluding Items**

* High end of guidance range provided in October 23, 2013 Earnings Release

** GAAP to non-GAAP reconciliation provided in Appendix 19

Page 20: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Free Cash Flow is Strong!

$0

$50

$100

$150

$200

$250

$300

2007 2008 2009 2010 2011 2012 2013*

Net Cash Flow before Financing Activities (Free Cash Flow) GAAP Net Income

* High end of guidance range provided in October 23, 2013 Earnings Release.

Large VAT &

FX hedge

contract payments

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Page 21: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Financially Sound with

Strong Cash Flow

• Strong and improving ROS

• Uses of Cash:

– Invest in the business

– Growing dividend:

• Payout ratio 50% of diluted EPS excluding items

• Likely will increase in line with earnings growth as achieved

– Share repurchases:

• Debt/EBITDA leverage targeted at 1.75X

Between Dividend and anticipated Share Repurchases

in 2013, we expect to pay out almost $10 per share

to our shareholders. 21

Page 22: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Local Currency Sales: +6% to 7% • Emerging markets up low teens

• Established markets down low single digit

EPS Excluding Items: $5.45 - $5.50 • Up 14-15% LC, 9-10% USD, vs. $4.99 in 2012

• GAAP $5.17 to $5.22

• 19 cents negative FX on EPS excluding items

Pre-Tax ROS, excluding items: 14.3% • GAAP pre-tax ROS 13.6%

• Longer range ROS increase target 50 bp

Incremental 2013 interest (new debt) -20

2013 vs. 2012 translation FX -20

High end pretax ROS fcst +10 bp

* As of October 23, 2013 Earnings Release without current confirmation/update

2013 Full Year Outlook*

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Page 23: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

* Specific guidance for 2014 to be provided in January 2014 earnings release

Double Digit EPS Growth driven by:

• Local Currency Sales: +6% to 8% • Emerging markets about 10%

• Established markets low single digit

• Pre-Tax ROS, excluding items: 50 bps

improvement per year into the mid- to high-teens

• Share repurchases

Longer Range Outlook

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Page 24: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

Appendix: Non-GAAP Financial Measures Reconciliation

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

Net Income (GAAP) 47.9 86.9 85.4 94.2 116.9 161.4 175.1 225.6 218.3 193.0 276.9

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) (3.8) (7.9) (1.1)

Re-engineering and other restructuring costs 6.9 7.0 14.3 7.6 9.0 9.0 8.0 7.6 9.6 22.1 10.4

Impact of Venezuelan bolivar devaluation on balance sheet positions 4.2

Swap impairment and debt cost write-off 19.8

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 2.9 2.1 4.8

Purchase accounting intangibles and goodwill impairment 11.3 9.0 28.1 4.3 36.1 76.9

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) (9.6) (4.8) (3.5)

Net Income (Adjusted) 48.8 83.3 90.5 109.6 141.2 169.7 196.1 237.9 273.3 281.4 291.7

* High end of 2013 outlook provided in October 23, 2013 Earnings Release

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Page 26: Rick Goings, Chairman & CEO November 2013 - Tupperware …/media/Files/T/...Nov 19, 2013  · Tupperware Hostesses and Fans Host 2 Parties ... in 2013, we expect to pay out almost

March 2013

Building Confidence Changing Lives