Newell Brands Inc. · NASDAQ:NWL
Newell Brands — Newell Rubbermaid — Q1 2014 Earnings Presentation
22 slides from Newell Brands's earnings presentation, May 2, 2014
Slide 1: Q1 2014 Earnings Call Presentation
Q1 2014 Earnings Call Presentation May 2, 2014
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: Q1 2014 Summary
Q1 2014 Summary Net sales of $1.23 billion, a 0.7% decline versus prior year. Core sales, excluding 1.4% negative foreign currency impact, grew 0.7%. Normalized gross margin of 38.8%, a 60 bps improvement versus prior year. Pricing and productivity more than offset inflation and the negative i
Slide 4: Q1 2014: Core Sales Growth by Segment
Q1 2014: Core Sales Growth by Segment Core Net Sales % Currency % Sales % Writing 6.1% (1.9)% 8.0% Home Solutions (5.2) (0.7) (4.5) Tools (0.4) (2.8) 2.4 Commercial Products (0.3) (0.5) 0.2 Baby & Parenting (5.4) (1.0) (4.4) Total Company (0.7)% (1.4)% 0.7% 4
Slide 5: FY 2014 Outlook
FY 2014 Outlook FY 2014 Outlook* Core Sales 3% to 4% Currency ~ -2.0% Net Sales Growth 1% to 2% Normalized Operating Margin Up to +40 basis points Normalized EPS** $1.94 to $2.00 Cash Flow from Operations $600 to $650 million Capital Expenditures $150 to $175 million * Reflects outlook communicated
Slide 6: Significant Increase in Advertising in 2014
Significant Increase in Advertising in 2014 6
Slide 7: New Sharpie Clear View Highlighter
New Sharpie® Clear View™ Highlighter 7
Slide 8: New Paper Mate Clearpoint Mix & Match
New Paper Mate® Clearpoint® Mix & Match Clearpoint Mix & Match 8
Slide 9: Mr. Sketch Relaunch
Mr. Sketch® Relaunch FEED YOUR — | ¥ IMAGIN + RON! | aS je Brands That Matter GROWTH | ~~» GAME PLAN 3
Slide 10: InkJoy A&P Driving LATAM Success
InkJoy® A&P Driving LATAM Success Mexico: POS +34% Share +880 bps $7.3M TV Advertising 2 Million Samples in LATAM 10
Slide 11: Irwin Big Bang Brazil - Wave 2
Irwin Big Bang Brazil - Wave 2 New Products 6 New Categories Van Program Tradesman Day Brazil Sampling 1M Blades Merchandising 11
Slide 12: Calphalon Ceramic Non-Stick
Calphalon® Ceramic Non-Stick 12
Slide 13: Rubbermaid Shaker Bottle
Rubbermaid® Shaker Bottle Savor the Summer Promo 13
Slide 14: Baby & Parenting New Strollers & Jogger
Baby & Parenting New Strollers & Jogger Innovative design meets comfort & convenience Expanding the Modes family Graco Relay Performance Jogger Graco Aire3 Click Graco Modes™ Sport Connect Stroller Click Connect Stroller 10 riding options from infant to toddler, in a sporty 3 wheel design for increa
Slide 15: Reconciliation: Q1 2014/2013 Normalized EPS
Reconciliation: Q1 2014/2013 Normalized EPS Q1 2014* Q1 2013* Diluted earnings per share (as reported) $0.19 $0.19 Restructuring and restructuring-related costs 0.05 0.12 Costs associated with harness buckle recall 0.02 - Currency devaluation – Venezuela 0.09 0.02 Resolution of income tax contingenc
Slide 16: Reconciliation: FY 2014 Normalized EPS
Reconciliation: FY 2014 Normalized EPS FY 2014 Diluted earnings per share $1.50 to $1.56 Restructuring and restructuring-related costs $0.29 to $0.37 Costs associated with harness buckle recall $0.02 Currency devaluation - Venezuela $0.09 Normalized EPS $1.94 to $2.00 16 16
Slide 17: Reconciliation: Q1 2014/2013 Normalized Gross Margin
Reconciliation: Q1 2014/2013 Normalized Gross Margin $ in millions Q1 2014 Q1 2013 Net sales $ 1,232.2 $ 1,240.8 Gross margin (as reported) $ 469.3 $ 473.6 Costs associated with harness buckle recall $ 8.6 $ - Gross margin (normalized) $ 477.9 $ 473.6 Gross margin % (normalized) 38.8% 38.2% 17 17
Slide 18: Reconciliation: Q1 2014/2013 Normalized Operating Income/Margin
Reconciliation: Q1 2014/2013 Normalized Operating Income/Margin $ in millions Q1 2014 Q1 2013 Net sales $ 1,232.2 $ 1,240.8 Operating income (as reported) $ 105.2 $ 97.8 Costs associated with harness buckle recall $ 11.0 $ - Restructuring and restructuring-related costs $ 19.7 $ 41.0 Operating incom
Slide 19: Reconciliation: Q114 GAAP & Non-GAAP Certain Line Items
Reconciliation: Q114 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 March 31, 2014 GAAP Measure Restructuring and Charge resulting from Non-GAAP Measure Product restr
Slide 20: Reconciliation: Q113 GAAP & Non-GAAP Certain Line Items
Reconciliation: Q113 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 March 31, 2013 GAAP Measure Restructuring and Charge resulting from Non-GAAP Measure restructuring
Slide 21: Reconciliation: Q1 2014/2013 Segment Operating Income/Margin
Reconciliation: Q1 2014/2013 Segment Operating Income/Margin Newell Rubbermaid Inc. Financial Worksheet- Segment Reporting (In Millions) 2014 2013 Reconciliation (1,2) Reconciliation (1) Year-over-year changes Reported Excluded Normalized Operating Reported Excluded Normalized Operating Net Sales No
Slide 22: Reconciliation: Q1 2014 Core Sales
Reconciliation: Q1 2014 Core Sales Newell Rubbermaid Inc. Three Months Ended March 31, 2014 In Millions Currency Analysis By Segment Net Sales, Core Year-Over-Year As Reported Sales (1) Increase (Decrease) Increase Increase Currency Excluding Including Currency 2014 2013 (Decrease) 2014 2013 (Decrea