Newell Brands (NWL) investor relations material

Strategic transformation and capability enhancement

• Undertook a comprehensive reassessment of 11 core capabilities, leading to a new strategy and operating model in June 2023.

• Established global segments, upgraded talent, and shifted to a high-performing, innovative, and inclusive culture.

• Improved core sales growth rate, gross margin by nearly 600 basis points, reduced net leverage, and strengthened cash flow.

• Ongoing focus on further improvement, with more work ahead to achieve desired performance.

Market outlook and consumer trends

• Category growth expected to decline by about 2% this year, with no recent catalysts for improvement.

• Lower and middle-income consumers remain under pressure, driving demand for value-oriented products.

• High-income consumers remain strong, and optimism exists for improved category growth in discretionary products next year.

• Anticipates a more favorable macro environment in 2024, with potential interest rate reductions and GDP growth above 3%.

Tariff management and supply chain adaptation

• Developed a trade expertise center for real-time tariff impact analysis and created supply chain flexibility.

• Reduced China-sourced business to under 10% by year-end and established U.S. free trade zones.

• Tariffs expected to have a $155M cash impact and $0.21/share P&L impact this year, offset by cost management and three rounds of pricing.

• 55% of U.S. business manufactured domestically, providing a tariff advantage in key categories.