Newell Brands Inc. · NASDAQ:NWL
Newell Brands — Q3 2015 Earnings Presentation
27 slides from Newell Brands's earnings presentation, Oct 30, 2015
Slide 1: Q3 2015 Earnings Call Presentation
Q3 2015 Earnings Call Presentation October 30, 2015
Slide 2: Forward-looking Statements
Forward-looking Statements Statements in this presentation that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin
Slide 3: Q3 2015 Summary
Q3 2015 Summary Net sales of $1.53 billion grew 3.1% compared with $1.48 billion in the prior year Core sales grew 5.9%, driven by growth in all five segments and all four geographic regions Win Bigger businesses grew core sales 8.8% Normalized gross margin improved 30 basis points to 39.5%
Slide 4: Q3 YTD 2015 Summary
Q3 YTD 2015 Summary Net sales of $4.35 billion grew 3.7% compared with $4.20 billion in the prior year Core sales grew 5.2%, driven by growth in all five segments and all four geographic regions Win Bigger businesses grew core sales 8.7% Normalized gross margin improved 30 basis points to 39
Slide 5: Q3 2015: Core Sales Growth by Segment
Q3 2015: Core Sales Growth by Segment Acquisitions Net of Core Sales Net Sales % Currency % Planned/Completed % Divestitures % Writing 1.4% (9.6)% -- 11.0% Home Solutions 10.2 (1.8) 11.2% 0.8 Tools (8.4) (11.5) -- 3.1 Commercial Products (5.1) (3.3) (5.5) 3.7 Baby & Parenting 14.4 (5.1) 11.4 8.1 Tot
Slide 6: Q3 YTD 2015: Core Sales Growth by Segment
Q3 YTD 2015: Core Sales Growth by Segment Acquisitions Net of Core Sales Net Sales % Currency % Planned/Completed % Divestitures % Writing 0.5% (9.9)% -- 10.4% Home Solutions 13.0 (1.4) 13.4% 1.0 Tools (6.8) (9.3) -- 2.5 Commercial Products (3.4) (3.1) (4.8) 4.5 Baby & Parenting 12.1 (5.0) 12.1 5.0
Slide 7: Innovation: Paper Mate InkJoy 2in1 Stylus Pen
Innovation: Paper Mate® InkJoy® 2in1 Stylus Pen 7
Slide 8: New Sharpie Mexico Marketing Campaign
New Sharpie Mexico Marketing Campaign 8
Slide 9: Innovation: Dymo XTL Industrial Labelers
Innovation: Dymo® XTL™ Industrial Labelers Simplifies the most complex labeling 9
Slide 10: Innovation: Irwin Vise-Grip Multi-Tool
Innovation: Irwin® Vise-Grip® Multi-Tool Four-tools-in-one design 10
Slide 11: Innovation: Graco Modes Lite Click Connect
Innovation: Graco® Modes™ 3 Lite Click Connect™ 5 Ways to Ride Easy one-second, one-hand fold 11
Slide 12: Innovation: Calphalon Signature Cookware
Innovation: Calphalon® Signature™ Cookware 12
Slide 13: Completed Elmer's Products, Inc. Acquisition
Completed Elmer’s Products, Inc. Acquisition Leading provider of activity-based adhesive and cutting products that inspire creativity at school, at home, in the office, in the workshop and at the craft table Expected 2015 net sales of approximately $240 million; acquisition expected to be accret
Slide 14: Strategic Rationale for Elmer's Acquisition
Strategic Rationale for Elmer’s Acquisition Strong, iconic brands are highly complementary to the Writing business and provide scale in the key Back-to-School drive period Increases Newell’s footprint in youth art and crafts where we have strong growth with Mr. Sketch Significant distribution,
Slide 15: FY 2015 Core Sales and Normalized EPS Guidance
FY 2015 Core Sales and Normalized EPS Guidance FY 2015 Revised Outlook* Core Sales 5.0% to 5.5% Currency (5.5)% to (6.0)% Acquisitions Net of Planned & Completed Divestitures 3.5% to 4.0% Net Sales Growth 3.0% to 3.5% Normalized EPS** $2.14 to $2.20 * Reflects outlook communicated in the October 30,
Slide 16: FY 2016 Core Sales and Normalized EPS Guidance
FY 2016 Core Sales and Normalized EPS Guidance FY 2016 Outlook* Including Venezuela Excluding Venezuela Core Sales 5.0% to 6.0% 4.0% to 5.0% Currency (2.0)% to (3.0)% (1.0)% to (2.0)% Acquisitions Net of Planned & Completed (0.5)% to 0.5% (0.5)% to 0.5% Divestitures Net Sales Growth 2.5% to 3.5% 2.5
Slide 17: Appendix
NewellRubbermaid Brands That Matter Appendix baby jogger <P PARKER. WATERMAN
Slide 18: Reconciliation: FY 2015 Normalized EPS
Reconciliation: FY 2015 Normalized EPS Year Ending December 31, 2015 Year Ending December 31, 2015 Diluted earnings per share $ 1.59 to $ 1.65 Graco product recall $ 0.03 Restructuring and other Project Renewal costs $ 0.35 to $ 0.45 Acquisition and integration costs $ 0.01 Devaluation of the Venezu
Slide 19: Reconciliation: FY 2016 Normalized EPS
Reconciliation: FY 2016 Normalized EPS Year Ending December 31, 2016 Year Ending Excluding Venezuela December 31, 2016 Diluted earnings per share $ 1.81 to $ 1.90 Restructuring and other Project Renewal costs $ 0.35 to $ 0.45 Normalized earnings per share $ 2.21 to $ 2.30 Year Ending Including Venez
Slide 20: Q3 2015 GAAP & Non-GAAP Certain Line Items
Reconciliation: Q3 2015 GAAP & Non-GAAP Certain Line Items Newell Rubbermaid Inc. RECONCILIATION OF GAAP AND NON-GAAP INFORMATION CERTAIN LINE ITEMS (in millions, except per share data) Three Months Ended September 30, 2015 GAAP Measure Project Renewal Costs (1) Inventory charge from Acquisition Cha
Slide 21: Q3 2014 GAAP & Non-GAAP Certain Line Items
Reconciliation: Q3 2014 GAAP & Non-GAAP Certain Line Items Newell Rubbermaid Inc. RECONCILIATION OF GAAP AND NON-GAAP INFORMATION CERTAIN LINE ITEMS (in millions, except per share data) Three Months Ended September 30, 2014 GAAP Measure Restructuring and Inventory charge Advisory costs for Acquisiti
Slide 22: Q3 YTD 2015 GAAP & Non-GAAP Certain Line Items
Reconciliation: Q3 YTD 2015 GAAP & Non-GAAP Certain Line Items Newell Rubbermaid Inc. RECONCILIATION OF GAAP AND NON-GAAP INFORMATION CERTAIN LINE ITEMS (in millions, except per share data) Nine Months Ended September 30, 2015 GAAP Measure Project Renewal Costs (2) Inventory charge from Acquisition
Slide 23: Q3 YTD 2014 GAAP & Non-GAAP Certain Line Items
Reconciliation: Q3 YTD 2014 GAAP & Non-GAAP Certain Line Items Newell Rubbermaid Inc. RECONCILIATION OF GAAP AND NON-GAAP INFORMATION CERTAIN LINE ITEMS (in millions, except per share data) Nine Months Ended September 30, 2014 GAAP Measure Restructuring and Inventory charge Charge resulting Advisory
Slide 24: Segment Normalized Operating Income/Margin
Reconciliation: Segment Normalized Operating Income/Margin Newll Rubbermaid Inc. Financial Worksheet- Segment Reporting (In Millions) 2015 2014 Reconciliation (1,2,3,4) Reconciliation (1,2) Year-over-year changes Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales
Slide 25: Segment Normalized Operating Income/Margin
Reconciliation: Segment Normalized Operating Income/Margin Newll Rubbermaid Inc. Financial Worksheet- Segment Reporting (In Millions) 2015 2014 Reconciliation (1,3,4) Reconciliation (1,2,3,4) Year-over-year changes Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sal
Slide 26: Q3 2015 Core Sales
Reconciliation: Q3 2015 Core Sales Newell Rubbermaid Inc. Three Months Ended September 30, 2015 In Millions Currency Analysis By Segment Net Sales, Core As Reported Sales (1) Year-Over-Year Less Less Constant Inc. (Dec.) Excl. Increase (Decrease) Increase Planned Less 2015 Planned 2014 Currency Plan
Slide 27: Q3 YTD 2015 Core Sales
Reconciliation: Q3 YTD 2015 Core Sales Newell Rubbermaid Inc. Nine Months Ended September 30, 2015 In Millions Currency Analysis By Segment Net Sales, Core As Reported Sales (1) Year-Over-Year Less Less Constant Inc. (Dec.) Excl. Increase (Decrease) Increase Planned Less 2015 Planned 2014 Currency P