2Company SnapshotWe are a leading, focused pure-play coffee and tea company with operations across Europe, Brazil, Australia and Thailand. 72% of our sales are generated from markets where we have a Number 1 or Number 2 position.source: The Rebirth of the Blend (1.1aIntroandDiscovery&Creation(SS).pptx)Slide 12Note: 72% is total company sales in countries where D.E MASTER BLENDERS has a number 1 or 2 position in retail coffee.2
3We have strong local brands DenmarkFranceSpainBrazilAustraliaHungaryNorwayNL & BEGlobalGlobal
4Our sales split by geography 2013: € 2,5 blnOther includes New Zealand, Norway, Denmark, Poland, Thailand, Greece, Hungary, Czech Rep, UK
9Intended JV with Mondelez announced Announced on May 7thTo become the world’s leadingpure-play coffee companyJV:Mondelez #2 sales €2.9 bln 49%DEMB #3 sales €2.5 bln 51%JV #2 sales €5.4 bln 100%Merger is complimentary in regions and in coffee expertise.Many 1st and 2nd positions in key markets
10Our HistoryMarch – June 2012:The new company name “D.E MASTER BLENDERS 1753” revealed and Company is listed on the NYSE Euronext ExchangeMay 2014DEMB announced the intended partnership with Mondelez on combiningCoffee activitiesThe business expands into Western EuropeSenseo coffee system launchedDouwe Egberts established175319361940s197820012010201220132014Pickwick establishedSept 2013Oak Leaf B.V acquired 95% of the sharesIn DEMB 1753Launched the L’OR EspressO capsules compatible with theNespresso® single-serve systemADD: STOCK LISTING AND SENSEO SARISTA LAUNCHDouwe Egberts acquired by Sara LeeOOH: Out of Home
12Before July 2012 Chicago Treasury DCM CM America’s Insurance Utrecht TreasuryFX GlobalCM ROWGroup financingNYSE listedBBB ratedPublic DebtBank funded RCFSurplus cashCM / FX banksQ2Q3Q4Q1201220132014201512
13July 2012, spin-off from Sara Lee Chicago TreasuryDCMCM America’sInsuranceAmsterdam TreasuryCapital marketsFX GlobalCM GlobalInsuranceNYSE listedBBB ratedPublic DebtBank funded RCFBank groupExisting bank relationsSelection of banks based on our global footprint- 10 banks (out of 18)- NL banks eager- FR banks dropped outAEX-listedBBB ratedUSPP $650 mlnRCF €750 mlnSara LeeSpin-offQ2Q3Q4Q1201220132014201513
20Banks, fees & servicesQuote uit termsheet coffee machines leasing proposaleen vast bedrag per maand waarmee de meeste diensten gratis worden aangeboden.
21Why do banks participate in the financing Asset takersYield is sufficientAncillary businessNice to haveFair shareDemanding
22Increased focus on cross-sell Why?ECB belooft strenge stresstestBasel 3:Higher minimum capital requirementCapital needs to be of higher qualityAdditional capital requirements for system banksCompanyNo. of deals1. Rabobank412. ABN AMRO223. ING274. Leonardo & Co.65. Lazard4
23Wallet / Ancillary business Lending/RCF is the entry ticketLevel playing field taking Tiering into accountAncillary businessCash managementForeign exchangeInterest rate managementFinancingCredit cardsPensions
26The reality of Treasury is: Too much on reportingToo little on cashResearch?Benchmarks?Education?Treasury is procurement!
27What do we do: Financing Fees, interest margins Cash management FX Spot / forward bps, FX-swaps 1.5 bpsSwapsIRS 1 bps, CCS 1,5 bps, coordinationInvestmentsDepo’s / MMF’s 10 bpsTotal FeesCapitalTotal of loans + % of commitmentsTotal CapitalTotal Fees / Total Capital = Return on Capital
30Vision on the role of banks Before 2012Service providerTrusted advisorAfter 2012Finance provider newInternal / external factors have major impact on relationshipsTreasury community needs to step up on wallet distributionincreased
31Relationships with banks Trust between banks and corporate at various levels is keyUnited Nation's World Happiness Report:Denmark most happiest country of the worldWhy: they trust each other….NRC