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Driving delivery, Driving change Michael Polk, President & Chief Executive Officer

Driving delivery, Driving changes1.q4cdn.com/122517005/files/doc_events/Strategic_Up… ·  · 2016-05-25Driving delivery, Driving change Michael Polk, ... * excludes impact of SAP

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Page 1: Driving delivery, Driving changes1.q4cdn.com/122517005/files/doc_events/Strategic_Up… ·  · 2016-05-25Driving delivery, Driving change Michael Polk, ... * excludes impact of SAP

Driving delivery, Driving change

Michael Polk, President & Chief Executive Officer

Page 2: Driving delivery, Driving changes1.q4cdn.com/122517005/files/doc_events/Strategic_Up… ·  · 2016-05-25Driving delivery, Driving change Michael Polk, ... * excludes impact of SAP

Forward Looking Statement

This presentation includes forward looking statements. Forward-looking statements are not guarantees since there are inherent difficulties in predicting future results, and actual results could differ materially from those expressed or implied. For a list of major factors that could cause actual results to differ materially from those projected, refer to Newell Rubbermaid’s most recently filed quarterly report on Form 10-Q and Exhibit 99.1 thereto. The presentations also include certain non-GAAP financial measures within the meaning of SEC Regulation G, including normalized operating income and earnings per share. Reconciliations of these financial measures are available in the appendix and in the archived presentation available in the Investor Relations section of the Newell Rubbermaid website.

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Three phases to strengthened performance

Delivery

Consistently do what we say

Strategic

Shape the future

Acceleration

Accelerate performance

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Driving more consistent delivery

0.1%

3.2%

3.7%

2.9%*

Half 1 11 Q3 11 Q4 11 Q1 12

Core sales growth

* excludes impact of SAP sell in Q1 2012

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Driving change

One NWL

Working

Capital

reduction

One NWL

Customer

Development

Organization

One NWL

Indirect

procurement

program

Décor and

Baby recovery

plans

Project

Renewal

SAP/EPC

EMEA

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Writing the Next Chapter

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Growth led business model

Reinvest in strategic

SG&A

Core sales growth

Gross margin expansion

Productivity, mix, pricing

Structural SG&A

reduction

Operating margin expansion

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Strong team of number 1 or 2 brands

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Brands that can win in fragmented markets

$35

$20

$12

$11

$10

$9

$8

$5 $4 $3

Global market size estimates for top categories

($B)

Market size globally

$120B+

Average NWL global share

5%

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Leveraging five major trends

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Going where the growth in the world is

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

NWL net sales World GDP@PPP

$35tn +81%

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NWL Today NWL in 10 years

Bigger, faster growing, more global

emerging

developed

emerging

developed

~13% growth

~1% growth

~3% growth

~15% growth

~2% growth

>5% growth

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Growth Game Plan will direct efforts

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Two fields of play

PROFESSIONAL CONSUMER common capabilities

brand led growth

insights at foundation

superior products & innovation

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Two repeatable models

common capabilities

brand led growth

insights at foundation

superior products & innovation

CONSUMER

Win at the point of decision

through

excellence in performance,

design and innovation

PROFESSIONAL

Win the loyalty of the chooser

through

improving the productivity

and performance of the user

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Sharper portfolio choices

Win bigger

Win where we are

Incubate for growth

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Resources focused to portfolio roles

Win bigger

Commercial Products

Writing CT&A IP&S Labeling Fine

Writing

Win where we are

Hardware Home Org

& Style Culinary Lifestyles

Incubate for growth

Endicia Baby Medical

Solutions Mimio

consumer facing professional facing

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Win Bigger will drive 75% of NWL growth

Win Bigger

75%

Win Where Are

15%

Incubate

10%

5 Year Growth Contribution

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5 Ways to Win shapes activities

Make brands really matter

Build an execution powerhouse

Unlock trapped capacity for growth

Extend our boundaries

Develop a growth team

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Make brands really matter: Big brand ideas

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Make brands really matter: Big brand ideas

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Make brands really matter: Big brand ideas

Rubbermaid Bathroom Cleaning

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Make brands really matter: Big innovation platforms

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Make brands really matter: Digital first

<20% >60%

Evolution of spend

% advertising on digital

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Build an execution powerhouse: Win with winning customers

One NWL Customer Development Organization (USA)

Strategic Channels

distribution depth

distribution breadth

channel development

Strategic Accounts

joint business planning

value creation across enterprise

market development

Food & Drug / Mass

Club & e-tail

Office Depart & Specialty

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Build an execution powerhouse: Reach shoppers where they shop

<10% >30%

Evolution of sales

% global revenue in e-commerce

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Unlock trapped capacity for growth: Sources and uses of funds

ONENWLIndirect

procurement

Hit working capital targets

Sources Uses

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Extend our borders: Portfolio deployment main growth driver

Market Growth

30%

Market Share Gain (Home Markets)

25%

Portfolio Deployment (Emerging Markets)

45%

5 year growth contribution

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Extend our borders: Geographic footprint evolution

North America

EMEA Latin

America APAC

revenue

10

yea

r ab

solu

te g

row

th

from

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Extend our borders: Geographic footprint evolution

North America

EMEA

Latin America

APAC

revenue

N America ~60% of revenue

APAC and L America > 30% of revenue

EMEA ~10% of revenue

10

yea

r ab

solu

te g

row

th

to

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10

yea

r ab

solu

te g

row

th

Extend our borders: Portfolio footprint evolution

revenue

win bigger

win where we

are incubate

from

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10

yea

r ab

solu

te g

row

th

Extend our borders: Portfolio footprint evolution

revenue

win bigger

win where we

are incubate

Win Bigger 75% of NWL growth

APAC/Latin America ~50% of Win Bigger

to

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Extend beyond our borders: Requires reset of algorithm

operating income margin %

emerging

developed

full portfolio, local needs and local price points

full investment in sales and marketing

enabled by tackling high cost in developed world

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Develop a team for growth: Build international perspective

developed

emerging

marketing & sales headcount

2011

key international development roles

increased international experience

invest in people and infrastructure

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Develop a team for growth: Incentivized to perform

core sales growth

operating cash flow

EPS relative

TSR

annual long term

one program/one set of targets

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Develop a team for growth: Aligned and energized

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Clear corporate strategy: Growth Game Plan

BU

SIN

ESS

MO

DEL

5 W

AY

S TO

WIN

WH

ERE

TO P

LAY

WIN BIGGER

WIN WHEREWE ARE

INCUBATEFOR

GROWTH

CT&A, IP&S, LABELING, COMMERCIAL PRODUCTSFINE WRITINGWRITING & CREATIVE EXPRESSION

HOME ORGANIZATION & STYLECULINARY LIFESTYLESHARDWARE

BABY & PARENTINGENDICIA, MIMIORUBBERMAID MEDICAL SOLUTIONS

NWL is a growing brand-led business with a strong home in the United States and global ambition

Our Consumer brands win at the point of decision through excellence in performance, design and innovation

Our Professional brands win the loyalty of the chooser by improving the productivity and performance of the user

We collaborate with our supplier and customer partners across the total enterprise in a shared commitment to growth and creating value

We deliver competitive returns to our shareholders through consistent, sustainable and profitable growth

Sharpen brand strategies on highest impact growth levers

Launch new USA customer development organization

Deliver European Transformation, Project Renewal savings, and working capital reduction

Drive performance culture aligned to business strategy

Accelerate Latin Americaand Asia in Win BiggerCategories.

MAKE OUR BRANDS REALLY MATTER

BUILD AN EXECUTIONPOWERHOUSE

UNLOCK TRAPPEDCAPACITY FOR GROWTH

DEVELOP THE TEAMFOR GROWTH

EXTEND BEYONDOUR BORDERS

Partner to win with customers and suppliers

Develop joint business plans for new channel penetration and broader distribution

Simplify everything to release costs for growth

Build a more global perspective and talent base

Strategic insight program in China

Newell Rubbermaid helps people flourish every day, where they live, learn, work and play

EDGE: EVERY DAY GREAT EXECUTION

PU

RP

OSE

AM

BIT

ION

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Base case: Performance accelerates over time

Delivery

Consistently do what we say

Strategic

Shape the future

Acceleration

Accelerate performance

Core sales +2 to 3% +3 to 4% > +4%

EPS +3 to 6% +5 to 8% +6 to 9%

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Delivery

Consistently do what we say

Strategic

Shape the future

Acceleration

Accelerate performance

Base case: Compelling value creation story

Consistent growth (sales, EPS)

Strengthened leverage metrics

Increased dividends

Repurchased shares

Accelerated growth (sales, EPS)

Strong earnings and cash flow

Increased dividends

Surplus cash

2012/2013 2013/2014 2015 and beyond

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Opportunity to accelerate timetable and strengthen impact (growth, EPS)

consistent growth and results

capacity/speed to tackle costs (beyond SAP/EPC, Renewal, 5 Ways to $50m)

strong base case cash flow as enabler

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Everything flows from the Growth Game Plan

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Driving delivery, Driving change Michael Polk

President & Chief Executive Officer