Newell Brands Inc. (NASDAQ:NWL) Q2 2021 Results Earnings Conference Call July 30, 2021 11:00 AM ET Company Participants Sofya Tsinis - Vice President of Investor Relations Ravi Saligram - President, Chief Executive Officer Chris Peterson - Chief Financial Officer, President, Business Operations Conference Call Participants Lauren Lieberman - Barclays Kevin Grundy - Jefferies Wendy Nicholson - Citi Bill Chappell - Truist Securities Olivia Tong - Raymond James Peter Grom - UBS Operator Good morning and welcom ...

Q2 2021 Supplemental Information Newell Brands Quarterly Earnings 1 Forward Looking Statements Some of the statements in this presentation and its exhibits, particularly those anticipating future financial performance, business prospects, growth, operating strategies, the impact of the COVID-19 pandemic and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrase ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2021 Commission File Number 1-9608 NEWELL BRANDS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 6655 Peachtree Dunwoody Road, Atlanta, Georgia 30328 (Address of principal executive offices) (Zip Code) Regis ...

Financial Data and Key Metrics Changes - Net sales increased by 21.3% year-over-year to $2.3 billion, driven by core sales growth of 20.9% [51] - Normalized operating profit roughly doubled year-over-year to $230 million [54] - Normalized earnings per share grew more than threefold year-over-year to $0.30 [55] - Normalized gross margin contracted by 60 basis points year-over-year to 32.2% due to inflationary pressures [53] - Normalized operating margin expanded by 410 basis points year-over-year to 10.1% [53] Business Line Data and Key Metrics Changes - Home Appliances core sales increased by 38.9%, with growth across all major regions [56] - Home Solutions segment saw core sales growth of 33.8%, driven by double-digit growth in Food and Home Fragrance [57] - Writing business rebounded with core sales growth of 17.3%, reflecting strong performance in writing and labeling categories [57] - Outdoor & Recreation segment returned to core sales growth, increasing by 7.0% [57] - Baby business experienced mid-teens growth rate, driven by strong share gains and e-commerce penetration exceeding 50% [29] Market Data and Key Metrics Changes - International markets saw core sales growth of nearly 27%, outpacing North America [10] - U.S. experienced strong consumer demand, particularly in the last month of the quarter, aided by fiscal stimulus [10] - E-commerce sales growth accelerated into the mid-40s range, with global sales penetration improving to approximately 21% [12] Company Strategy and Development Direction - The company is focused on five strategic priorities, including galvanizing employees, sustaining top-line growth, becoming an innovation engine, accelerating international growth, and reducing complexity [37][41] - Plans to launch 3 to 5 major new product innovations per year that can scale to $50 million to $100 million in sales [40] - The leadership team has been strengthened to drive execution and innovation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued sales momentum in Q2 and beyond, despite uncertainties in the second half of 2021 [42] - The company is proactively managing inflationary pressures and supply chain challenges through productivity improvements and selective price increases [49][50] - The outlook for 2021 has been raised, with net sales forecasted to be between $9.9 billion and $10.1 billion, representing 5% to 8% growth [64] Other Important Information - The company redeemed $94 million of its senior notes and repurchased $5 million of its senior notes due in 2023 [60] - The net debt-to-normalized EBITDA leverage ratio improved to 3.3x, moving closer to the target of 3x [59] - The company has over $2 billion in available short-term liquidity, including $682 million in cash [60] Q&A Session Summary Question: Concerns about operating cash flow guidance - Management indicated that operating cash flow guidance remains strong, with expectations for continued progress on cash conversion cycle despite seasonal cash outflow in Q1 [76][77] Question: Outlook for the Writing business - Management expressed optimism about the Writing business, noting that 61% of school districts are back in-person, which bodes well for future orders and shipments [79][80] Question: Update on the outdoor business - Management acknowledged that the outdoor equipment segment is performing well, with innovations and increased consumer interest driving growth [88][89] Question: Breakdown of volumes against price/mix in appliances and Baby business - Management highlighted strong international performance in appliances and ongoing innovations, while the Baby business benefits from strong brand power and new product launches [100][110] Question: Supply chain disruptions and outlook - Management confirmed ongoing supply chain challenges but noted significant improvements compared to previous months, with proactive inventory management in place [112][114] Question: Capital allocation strategy post-leverage target - Management stated that the primary focus remains on investing in the business, maintaining dividends, and reducing leverage, with future capital allocation decisions to be guided by shareholder value creation [120][122]

Q1 2021 Supplemental Information Newell Brands Quarterly Earnings 1 Forward Looking Statements Some of the statements in this presentation and its exhibits, particularly those anticipating future financial performance, business prospects, growth, operating strategies, the impact of the COVID-19 pandemic and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements generally can be identified by the use of words or phrase ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2021 Commission File Number 1-9608 NEWELL BRANDS INC. (Exact name of registrant as specified in its charter) Delaware 36-3514169 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 6655 Peachtree Dunwoody Road, Atlanta, Georgia 30328 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED COMMISSION FILE NUMBER December 31, 2020 1-9608 NEWELL BRANDS INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware 36-3514169 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 6655 Peachtree Dunwoody Road, 30328 Atlanta, Georgia (Zip Code) (Address of p ...

Newell Brands, Inc. (NASDAQ:NWL) Q4 2020 Earnings Conference Call February 12, 2020 8:30 AM ET Company Participants Sofya Tsinis - VP Investor Relations Ravi Saligram - President and CEO Chris Peterson - CFO and President, Business Operations Conference Call Participants Bill Chappell - Truist Securities Olivia Tong - Bank of America Kevin Grundy - Jefferies Wendy Nicholson - Citi Joe Altobello - Raymond James Lauren Lieberman - Barclays Steve Powers - Deutsche Bank Operator Good morning, and welcome to Ne ...

Q4 & Full Year 2020 Supplemental Information 1 Q4 & Full Year 2020 Supplemental Information Newell Brands Quarterly Earnings Forward Looking Statements Some of the statements in this presentation and its exhibits, particularly those anticipating future financial performance, business prospects, growth, operating strategies, the impact of the COVID-19 pandemic and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company reported net sales of $2.7 billion for Q3 2020, a 5.1% increase year-over-year, and a net income of $304 million, a significant turnaround from a net loss of $626 million in Q3 2019. For the nine months ended September 30, 2020, net sales decreased 5.6% to $6.7 billion, and the net loss widened to $897 million, primarily due to a $1.5 billion impairment charge related to the COVID-19 pandemic's impact. The balance sheet shows total assets decreased to $14.7 billion from $15.6 billion at year-end 2019, while cash and cash equivalents more than doubled to $858 million. Operating cash flow for the nine-month period significantly improved to $820 million from $424 million in the prior year Condensed Consolidated Statements of Operations Q3 and Nine Months 2020 vs 2019 Operating Results (in millions) | Metric | Q3 2020 | Q3 2019 | YoY Change | Nine Months 2020 | Nine Months 2019 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $2,699 | $2,569 | +5.1% | $6,696 | $7,091 | -5.6% | | **Gross Profit** | $914 | $847 | +7.9% | $2,195 | $2,367 | -7.3% | | **Operating Income (Loss)** | $363 | $(857) | N/A | $(882) | $(614) | -43.6% | | **Net Income (Loss)** | $304 | $(626) | N/A | $(897) | $(687) | -30.6% | | **Diluted EPS from Continuing Ops** | $0.71 | $(1.51) | N/A | $(2.12) | $(1.40) | -51.4% | Condensed Consolidated Balance Sheets Balance Sheet Summary (in millions) | Account | Sep 30, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Cash and cash equivalents | $858 | $349 | | Total current assets | $4,704 | $4,110 | | Goodwill | $3,523 | $3,709 | | Other intangible assets, net | $3,567 | $4,916 | | **Total Assets** | **$14,720** | **$15,642** | | Total current liabilities | $3,108 | $2,978 | | Long-term debt | $5,794 | $5,391 | | **Total Liabilities** | **$10,970** | **$10,646** | | **Total Stockholders' Equity** | **$3,750** | **$4,996** | Condensed Consolidated Statements of Cash Flows Cash Flow Summary for Nine Months Ended Sep 30 (in millions) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $820 | $424 | | Net cash provided by (used in) investing activities | $(138) | $581 | | Net cash used in financing activities | $(174) | $(1,024) | | **Increase (decrease) in cash** | **$494** | **$(30)** | Notes to Condensed Consolidated Financial Statements - Due to the COVID-19 pandemic, the company concluded a triggering event occurred in Q1 2020, leading to impairment tests for goodwill and intangible assets. This resulted in an aggregate non-cash impairment charge of approximately **$1.5 billion** in Q1 2020[17](index=17&type=chunk) - The company initiated a new restructuring program in Q2 2020 in response to the COVID-19 pandemic, designed to reduce overhead costs. The estimated aggregate charges are **$20 million** to **$25 million**[42](index=42&type=chunk) - In May 2020, the company issued **$500 million** of **4.875%** senior notes due 2025. Debt rating downgrades by S&P and Moody's resulted in a **50 basis point** interest rate increase on approximately **$4.5 billion** of existing senior notes[70](index=70&type=chunk)[72](index=72&type=chunk) - The company received a subpoena from the SEC on January 31, 2020, relating to its sales practices and certain accounting matters from January 1, 2016, onwards[126](index=126&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's turnaround strategy and the significant impact of the COVID-19 pandemic, which caused disruptions but also led to a 5.1% net sales increase in Q3 2020 as demand shifted. For the first nine months, sales were down 5.6%. The report details segment performance, highlighting strong Q3 growth in Appliances & Cookware, Commercial Solutions, Home Solutions, and Outdoor & Recreation, while Learning & Development declined due to delayed school openings. The company took actions to improve liquidity, including issuing $500 million in new debt and managing working capital, resulting in a significant increase in operating cash flow. Management also addresses the impact of tariffs, a dispute with the U.S. Treasury over tax regulations, and critical accounting estimates related to goodwill and intangible asset impairments Recent Developments - The COVID-19 pandemic caused significant business disruptions, including temporary facility closures and shifts in consumer demand. However, the company saw positive momentum in Q3 2020 with **5%** year-over-year sales growth[158](index=158&type=chunk)[159](index=159&type=chunk)[163](index=163&type=chunk) - The company estimates the gross impact of U.S. tariffs on Chinese goods to be approximately **$80 million** in 2020, primarily affecting the Appliances and Cookware, Commercial Solutions, and Outdoor and Recreation segments[167](index=167&type=chunk) - The company is challenging U.S. Treasury regulations related to the 2017 Tax Reform. If its position is not sustained, it could face an additional income tax expense of approximately **$180 million** to **$220 million** related to a 2018 tax benefit[168](index=168&type=chunk) Results of Operations Q3 2020 vs Q3 2019 Consolidated Operating Results (in millions) | Metric | Q3 2020 | Q3 2019 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net sales | $2,699 | $2,569 | $130 | 5.1% | | Gross profit | $914 | $847 | $67 | 7.9% | | Operating income (loss) | $363 | $(857) | $1,220 | NM | - The significant improvement in Q3 2020 operating income was primarily due to the absence of the **$1.07 billion** impairment charge recorded in Q3 2019[173](index=173&type=chunk) Nine Months 2020 vs 2019 Consolidated Operating Results (in millions) | Metric | 9M 2020 | 9M 2019 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Net sales | $6,696 | $7,091 | $(395) | (5.6)% | | Gross profit | $2,195 | $2,367 | $(172) | (7.3)% | | Operating loss | $(882) | $(614) | $(268) | (43.6)% | - The increased operating loss for the first nine months of 2020 was driven by non-cash impairment charges of **$1.5 billion**, compared to **$1.1 billion** in the same period of 2019[195](index=195&type=chunk) Business Segment Operating Results Q3 2020 Net Sales Growth by Segment | Segment | Q3 2020 Net Sales (M) | YoY Change | | :--- | :--- | :--- | | Appliances and Cookware | $479 | +11.4% | | Commercial Solutions | $535 | +12.6% | | Home Solutions | $574 | +18.6% | | Learning and Development | $728 | -11.7% | | Outdoor and Recreation | $383 | +7.6% | - The Learning and Development segment's sales decline was primarily due to the impact of delayed and limited re-opening of schools and offices as a result of the COVID-19 pandemic[188](index=188&type=chunk) Liquidity and Capital Resources - The company strengthened its financial position by issuing **$500 million** in senior notes, enhancing working capital management, and prioritizing expenditures. As of September 30, 2020, cash and cash equivalents were **$858 million**[213](index=213&type=chunk)[214](index=214&type=chunk)[225](index=225&type=chunk) Cash Flow Comparison for Nine Months Ended Sep 30 (in millions) | Cash Flow Activity | 2020 | 2019 | | :--- | :--- | :--- | | Cash provided by operating activities | $820 | $424 | | Cash provided by (used in) investing activities | $(138) | $581 | | Cash used in financing activities | $(174) | $(1,024) | - Debt rating downgrades by S&P and Moody's eliminated the company's ability to borrow from the commercial paper market on favorable terms, though its ability to borrow under its **$1.25 billion** Credit Revolver was not affected[216](index=216&type=chunk)[226](index=226&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=65&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that there have been no material changes to the market risk information previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019 - There were no material changes in the company's market risk exposures from what was reported in the 2019 Annual Report on Form 10-K[252](index=252&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of September 30, 2020. This is due to a continuing material weakness in internal control over financial reporting related to the accounting for certain aspects of income taxes, specifically state income tax and uncertain tax positions. A remediation plan is underway, including implementing new software, enhancing processes, and hiring experienced personnel - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were not effective as of September 30, 2020[254](index=254&type=chunk) - A material weakness in internal control over financial reporting persists, related to the accounting for certain aspects of income taxes, including state income tax and uncertain tax positions[257](index=257&type=chunk) - Management has implemented a remediation plan which includes new tax reporting software, enhanced processes, hiring experienced resources, and extensive training[258](index=258&type=chunk)[260](index=260&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=68&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the information on legal proceedings detailed in Footnote 18 of the financial statements. Key matters include an SEC subpoena regarding sales and accounting practices, shareholder derivative lawsuits, and a securities class action lawsuit - This item refers to the legal proceedings detailed in Footnote 18 of the financial statements[261](index=261&type=chunk) [Risk Factors](index=68&type=section&id=Item%201A.%20Risk%20Factors) The company highlights significant risks, with a primary focus on the ongoing COVID-19 pandemic. Key risks include potential reductions or volatility in product demand, disruptions to manufacturing and supply chains, and the failure of third-party partners. The company also notes that if it cannot resume normal operations, it may be unable to maintain compliance with financial covenants in its debt facilities, which could lead to default - The company's business is subject to significant risks from the COVID-19 pandemic, including demand volatility, supply chain disruptions, and failure of third-party suppliers and partners[263](index=263&type=chunk)[264](index=264&type=chunk) - A key risk is the potential inability to maintain compliance with financial covenants in debt facilities if COVID-19-related disruptions prevent a return to normal operations, which could lead to default and acceleration of debt[265](index=265&type=chunk)[267](index=267&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of 2020, the company purchased 32,200 shares of its own stock at an average price of $15.86 per share. These purchases were made solely to satisfy employees' tax withholding obligations related to the vesting of restricted stock units. The company's share repurchase program expired on December 31, 2019, and was not extended - The company purchased **32,200** shares during Q3 2020 to satisfy employee tax withholding obligations on vested stock awards[268](index=268&type=chunk)[269](index=269&type=chunk) - The company's share repurchase program expired on December 31, 2019 and has not been renewed[268](index=268&type=chunk) [Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act of 2002 and XBRL data files - Lists exhibits filed with the report, including CEO/CFO certifications and XBRL data[270](index=270&type=chunk)