1 - MDK Analyst Day Strategic Overview FINAL

8/2/2019 1 - MDK Analyst Day Strategic Overview FINAL

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Strategic Overview

Mark KetchumPresident & CEO

Todays Agenda

8:00 8:30 Strategic Overview Mark Ketchum, President & CEO

8:30 8:50 Building Brands That Matter Ted Woehrle, SVP & CMO

8:50 9:30 Home & Family Jay Gould, President H&F

9:30 9:45 Break

9:45 10:15 Tools, Hardware & Bill Burke, President TH&CP

Commercial Products

10:15 10:45 Office Products Penny McIntyre, President OP

10:45 11:15 Financial Outlook Juan Figuereo, EVP & CFO

11:15 12:15 Q&A

12:15 1:30 Lunch and Product Showcase


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Newell Rubbermaid Vision

Three Transformational Strategies

Strengthen the Portfolio

Leading brands in non-commoditized categories

Fewer, more focused business units

More global, more profitable, faster growing

Transform the Business Model

Consumer centric brands

Innovation driven

Higher Gross Margins to enable brand-building SG&A investment

Drive Best Cost and Efficiency

Restructure manufacturing and supply chain (Project Acceleration)

Leverage the scale of One Newell Rubbermaid


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Just as strong brands leverage their attributes to create value,

so too do effective companies.

BRAND NWLwill create shareholder value

through its portfolio of Brands That Matter.

Todays Focus: Brand NWL

Why Brand NWL Should Matter To You Today

We have createdthe right portfolio

Home & Family

anchored bystrong brands

that respond to

innovation andbrand building

in three logical

business segments


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We have created the right portfolio

Core sales growth has resumed

-18%

-15%

-12%

-9%

-6%

-3%

0%

3%

6%

9%

12%

2006 2007 2008 2009 2010

Quarterly CoreSales Growth Rates



We are investing in Strategic Brand Building SG&A to drive future

sales growth, with an eventual target of ~8% of net sales

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

2005 2006 2007 2008 2009 2010E Target


Annual Brand BuildingSG&A as % of Sales


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We are investing in Brand Building SG&A to drive future sales

growth, with an eventual target of ~8% of net sales

We have further, immediate opportunities for increased operational

excellence and sustainable cost reduction

Long Term Objectives

Sustainable growth

Core sales 3-5%

Acquisitions add

1-2% on average

EPS growth >10%

Superior consumer

driven innovation and

branding capabilities

Best-in-class cost

structure

ShareholderValue


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NWL Investment Thesis Point #1

This is a New NWL.Our transformation is virtually complete.


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We operate in Categories That Matter

with Brands That Matter

with low cost product sourcing and relatively low capitalinvestment

with high quality business processes that add value to eachof our businesses

with healthy and still expanding gross margins, thatsupport investment in innovation and brand building


This is a New NWL.

Our transformation is virtually complete.

Newell Rubbermaid Participates in Large,Global and Growing Categories

Home & Family

0

20

40

60

80

100%

Office ProductsTools, Hardware &

Commercial Products

Beauty -

Styling

Tools,

Accessories

& Heat

Styling

North

American

Kitchen Prep

North

American

Window

Baby &

Juvenile

Gear

Food

Storage

Home

OrganizationEveryday

Writing

Markers &

Highlighters

Fine

Writing

Technology/

Electronic

Learning

Power Tool

Accessories

Hand

Tools

Commercial

Facilities

Maintenance -

Non PoweredEquipment

7,400 3,800 7,000 8,500 3,800 26,000 8,100 4,8001,900

3,800 3,800 3,800 10,900$M Retail

Sales

14

3-5% CAGR1-2% 3-5% 0-2% 2-3% 2-3% 4-6% 4-6%2-4%

10%+2-4%

2-4% 3-4%


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Over 60% of Newell Rubbermaids business grew share in

2009

2010 brand health tracking is very encouraging

Strong Brands 2/3 of our key brands have advantages in

awareness, past usage and future intent to purchase

Brands Getting Stronger - we have good diagnostics of the

attributes that drive brand health and are reacting accordingly

Our consumer research is becoming more sophisticated and is

driving growth




with high quality business processes that add value to each

of our businesses

with healthy and still expanding gross margins, thatsupport investment in innovation and brand building




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Restructure NWL Owned Manufacturing

Driving Best Cost and Efficiency:Restructured Supply Chain

Plants Capacity Utilization Fixed Capital

Restructure DistributionDCs Capacity Utilization Avg. Warehouse Sq. Ft.

Transform Finished Product Supply BaseSourced Goods Low Cost Countries Nature of Suppliers

Ongoing Capital Spend (ex SAP)

~40

~50

136 $1.8B85-90%63% $0.6B

350K145K80-90%68%96

StrategicOpportunistic70%16%


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Drive Best Cost and Efficiency:Leverage One Newell Rubbermaid

SAP across the company

Shared Service Centers

Center-led distribution andtransportation

Center-led procurement

Consolidated andco-located offices

Newell OPEX process

Brand strategy process

Innovation process (CDI)

Sales excellence andcategory management

Personnel developmentand review process

Common culture/values

Economies of Scale Accelerate Advantage

Accelerate adoption of best-in-classbusiness processes versus what

business units could do on their own

SAP 65% completeAll others 90% complete

Harness scale company-wideto maximize cost efficiency innon-market-facing activities

100% deployed;working on optimization





with high quality business processes that add value to each

of our businesses

and healthy and still expanding gross margins, thatsupport investment in innovation and brand building.



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24%

26%

28%

30%

32%

34%

36%

38%

40%

2005 2006 2007 2008 2009 2010E

29.9%*

35.2%

33.4%

36.7%

32.8%

40%

* As reported in 2005 Form 10K. In subsequent year reports, 2005 numbers were adjusted to reflect impact of divestitures.

Gross Margin

Gross Margin Expansion EnablingGreater Brand Building Investments

+75-100

bps



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The portfolio makes sense.


We have divested or exited low consumer interest, low profitability

businesses, and added more global, innovation driven brands

Our remaining categories and product lines all respond to investments

in Innovation and Marketing

We have consolidated our categories into three focused, logical and

synergistic business groups products for the home & family,

products for office and education, and products for buildingconstruction and maintenance

The portfolio is well balanced, diversified and increasingly global



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Reshaping the Portfolio Since 2004

Glassware

Anchor Hocking, Pyrex

Low End Cookware

Mirro, Wearever, Panex,Cookware Europe

Picture Frames

Burns of Boston, FramesEurope

Molded Resin Toys

Little Tikes

Commodity Resin Products

Curver (Europe)

Drapery Hardware

Home Dcor Europe

MiscellaneousGrumbacher, Dakota Balance,Bulldog UK

Chairmats

OPP Storage Totes

OPP Refuse

Plastic Desktop Organization

NA Woodcase Pencils

Plastic Shelving

Various Private Label

Office Products

Dymo

Mimio

Endicia

Card Scan

Rubbermaid Commercial

Tomki (Brazil)

United Metal Receptacle

Technical Concepts

Baby & Parenting

Bebe Sounds

Teutonia

Aprica

Beauty & Style

Solano





in innovation and marketing







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Standardized consumer driven innovation process

Brand management/marketing

Talent acquisition at VP and Director levels

Training and development at all levels

Brand building SG&A (R&D, Advertising, Consumer

Promotion) increased to meaningful levels

Our approach to brand building differentiates us from our

competitors, providing a competitive advantage

Invest inAwareness &Trial

ConsumerUnderstanding

Insights &Concepts

ProductInvention

Product &ConceptValidation

Investing in Brand Building Capability



businesses, and added more global, innovation-driven brands









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Strengthen Portfolio:Focus and Profitability

Business Segments 5 3

Business Units 24 13

Net Sales $6.3B* $5.6B

Gross Margin 29.9%* 36.7%

2005 2009

* As reported in 2005 Annual Report on Form 10-K. In subsequent Annual Reports, amounts have been retr oactively adjusted to reflect the impact of divestitures.

2009 Sales $2.4 billion

5 Global Business Units

~15% of sales outside

North America

Home & Family Group

Targets the femalehead of household


16/28




North America

Office Products Group

Targets the office andeducation verticals, servingboth consumer andcommercial end users




North America

Tools, Hardware & Commercial Products

Targets buildingmaintenance andconstruction professionals


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synergistic business groups products for the home and family,

products for office and education, and products for building

construction and maintenance



OfficeProducts

Tools, Hardware& Commercial

ProductsHome &Family

14%

Balanced, Diversified, More Global Portfolio

2009 Net Sales: $5.6 billion

3 sizable, focused business

groups

Diversity of key customers and

competitors lowers risk

Organic growth, acquisitions

and category exits have

increased international sales

to >30% of the portfolioInternationalUnited States

30%

43%

27%

31%24%

2005 2009


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Our biggest opportunities are still ahead of us.


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We are fully on track to reach our gross margin target of 40%

We will create increasingly important and more successful

innovation

We are increasing our investment in Brand Building SG&A

The accelerated pace of International growth will drive higher

total NWL growth

Investments in systems, processes and people will drive

best-in-class results


+350 bps

+185 bps

-240 bps

+390 bps

+75-100bps

29.9%*

35.2%

33.4%

36.7%

32.8%

40%

* As reported in 2005 Form 10K. In subsequent year reports, 2005 numbers were adjusted to reflect impact of divestitures.

Gross Margin

Gross Margin Expansion On Trackto Reach 40% Target in 3-4 Years

24%

26%

28%

30%

32%

34%

36%

38%

40%

2005 2006 2007 2008 2009 2010E Target


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Residual benefit from product line exits and Project Acceleration

Will accrue in 2010 and 2011

Ongoing productivity (OPEX)

Methodology delivers ever green improvements

Fixed manufacturing cost leverage

As sales rebound

Improved mix

Resulting from innovation, branding and prioritizing growth

Most significant new margin driver

Ongoing Drivers of FutureGross Margin Expansion

Mix improvement, productivity, innovation and branding

will drive Gross Margin expansion to 40% over next 3-4 years




innovation


The accelerated pace of International growth will drive higher

total NWL growth





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Innovative Products Helped to Drive 2009 MarketGains Even Despite a Challenging Economy

Sharpie Pen Nonstick cookware that lets you cooklike a professional, with both sear andslide surfaces in each cookware set.

(Premier, Easy Find Lids, Produce Saver, Lock-Its)

Lids snap to each other and to bases; nest forcompact storage. Produce Saver keeps producefresh up to 33% longer. Lock-Its have locking tabsfor extra secure seal.

The everyday writing experienceof a Sharpie marker withoutthe ink bleed through.

Calphalon Unison

Rubbermaid Food Storage Systems

Robust Pipeline of Consumer Driven Innovationwill Drive Sales and Market Share 2010 and Beyond

Transforms seamlessly from anextremely functional highchair toan infant feeding booster, atoddler booster and a youth chair.

Trusted quality plus components that arebiodegradable in soil/compost.

Designed for superior performancein maintaining healthy, safeenvironments, including microfiber

mops (over 3x faster),microfiber cloths (clean25% better) andcomprehensive trainingand support system.

Graco Blossom 4-in-1Seating System

Paper Mate Biodegradable Pen

Rubbermaid HYGENMicrofiber Cleaning System


22/28


23/28

Our brands are making bigger

investments in consumer

insights research

Our research mix is becoming

more sophisticated andgrowth-focused

ProductPerformance

Product Development

Focus Groups,Consumer Validation

Field Testing

Consumersand

Segmentation

Needs-based Segmentation

Usage Occasions

BrandFundamentals

Brand Positioning

Design Alternatives

Brand Tracking

Brand Hierarchy

ActivationEffectiveness

Market EntryCategory Entry

Brand Extensibility

Category ReframingCategory Creation

CategoryExpansionPricing

Shopper

Channel Strategies

Integrated Marketing Plan

Campaign Qualitative &

Quantitative

Communicating Benefits

POP/Display & Packaging

Attitude & UsageStudies

Power Users

Problem Identification

Insights Capability Building:Research Investment and Mix

SG&A Trends Rigorous Management in a Tough Environment

Rigorous expense management

SG&A $ have declined $225MM versus mid 2008 spend rate

Offset by significant deleveraging

SG&A % of Sales has increased 120bps since mid 2008 despiteabsolute dollar decline due to top line pressure

Mid 2008Run Rate*

2008Actual

2009Actual

2010Estimate

Revenue - $ millions 6,850 6,470 5,578 low to mid singledigit growth

SG&A - $ millions 1,600 1,503 1,375

SG&A/Revenue - % 23.4 23.2 24.6 25.0

We expect significant SG&A leverage as the top line rebounds

* Company guidance as of Q1 2008 earnings call.


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SG&A - % Sales Model

Brand Building

R&D, Advertising, Consumer Promotions

Other Ongoing Strategic

Direct Sales, Channel Marketing, Training & Development

Short Term Strategic

SAP, Transformation Expenses

Structural Expense

6%

6%

1%

12%

8%

7%

< 1%

~9%

2009 Target

25% total unchanged,

but components will change




innovation


The accelerated pace of international growth will drive higher

total NWL growth





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>90% 50%-90%


26/28




innovation


The accelerated pace of international growth will drive higher

total NWL growth




Capability Investments Are Paying Off

Examples

Investment Payoff

Global SAP Platform Lower inventory and working capital

Better customer service

Better business analysis

Supply Chain Restructuring

(Project Acceleration)

Best cost

Business simplification andinnovation speed to market

Consumer Driven Innovation Process Brands that really matter

Share growth / category expansion

Training and Development More flexible, better performingorganization

More openings filled internally

Shared Services Lower cost and better performance


27/28

Summary

This is a New NWL Our transformation is virtually complete

The portfolio The business model

The cost and margin structure

The portfolio makes sense

Three focused, synergistic segments leveraging business practices,innovation, brand building, and back office operations

Our biggest opportunities are still ahead of us

Margin growth, geographic expansion and leveraging out ourbest-in-class capability investments

And We Have The Right Team To Do It


28/28

Summary

This is a New NWL Our transformation is virtually complete

The portfolio The business model

The cost and margin structure

The portfolio makes sense

Three focused, synergistic segments leveraging business practices,innovation, brand building, and back office operations

Our biggest opportunities are still ahead of us

Margin growth, geographic expansion and leveraging out ourbest-in-class capability investments

Documents

1 - MDK Analyst Day Strategic Overview FINAL