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From Sara Lee to Jacobs Douwe Egberts Amsterdam, June3rd. 2014 Noordwijk, 14 November 2014 Jan Schets D.E. Master Blenders 1753 Sander Honingh Rabobank.

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Presentation on theme: "From Sara Lee to Jacobs Douwe Egberts Amsterdam, June3rd. 2014 Noordwijk, 14 November 2014 Jan Schets D.E. Master Blenders 1753 Sander Honingh Rabobank."— Presentation transcript:

1 From Sara Lee to Jacobs Douwe Egberts Amsterdam, June3rd Noordwijk, 14 November 2014 Jan Schets D.E. Master Blenders 1753 Sander Honingh Rabobank

2 Agenda Refinancing Transactions Bank Relationships Key Learnings Wallet Distribution Q&A Company Snapshot Company Snapshot

3 2 Company Snapshot We 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. 2 Note: 72% is total company sales in countries where D.E MASTER BLENDERS has a number 1 or 2 position in retail coffee.

4 3 We have strong local brands 3 FranceSpainAustraliaBrazil NL & BEGlobalHungary Denmark GlobalNorway

5 4 2013: € 2,5 bln 4 Other includes New Zealand, Norway, Denmark, Poland, Thailand, Greece, Hungary, Czech Rep, UK Our sales split by geography

6 5 Roast & Ground

7 6 Senseo

8 7 Capsules

9 8 Tea

10 9 Intended JV with Mondelez announced Announced on May 7 th To become the world’s leading pure-play coffee company JV: Mondelez #2 sales €2.9 bln 49% DEMB #3 sales €2.5 bln 51% JV #2 sales €5.4 bln100% Merger is complimentary in regions and in coffee expertise. Many 1 st and 2 nd positions in key markets

11 10 Our History s Pickwick established Senseo coffee system launched March – June 2012: The new company name “D.E MASTER BLENDERS 1753” revealed and Company is listed on the NYSE Euronext Exchange 2010 Launched the L’OR EspressO capsules compatible with the Nespresso ® single-serve system OOH: Out of Home Douwe Egberts established The business expands into Western Europe Douwe Egberts acquired by Sara Lee 2013 Sept 2013 Oak Leaf B.V acquired 95% of the shares In DEMB May 2014 DEMB announced the intended partnership with Mondelez on combining Coffee activities

12 Refinancing transactions

13 12 Before July 2012 Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q Utrecht Treasury -FX Global -CM ROW -Group financing Utrecht Treasury -FX Global -CM ROW -Group financing Surplus cash CM / FX banks Surplus cash CM / FX banks Chicago Treasury -DCM -CM America’s -Insurance Chicago Treasury -DCM -CM America’s -Insurance NYSE listed BBB rated Public Debt Bank funded RCF NYSE listed BBB rated Public Debt Bank funded RCF

14 13 July 2012, spin-off from Sara Lee Sara Lee Spin-off Bank group Existing bank relations Selection of banks based on our global footprint - 10 banks (out of 18) - NL banks eager - FR banks dropped out Bank group Existing bank relations Selection of banks based on our global footprint - 10 banks (out of 18) - NL banks eager - FR banks dropped out Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q Chicago Treasury -DCM -CM America’s -Insurance Chicago Treasury -DCM -CM America’s -Insurance Amsterdam Treasury -Capital markets -FX Global -CM Global -Insurance Amsterdam Treasury -Capital markets -FX Global -CM Global -Insurance AEX-listed BBB rated USPP $650 mln RCF €750 mln AEX-listed BBB rated USPP $650 mln RCF €750 mln NYSE listed BBB rated Public Debt Bank funded RCF NYSE listed BBB rated Public Debt Bank funded RCF

15 14 September 2013, JAB-led acquisition Privatized B+ / BB- rated RCF €300 mln Loans - banks €2,000 mln - investors €1,000 mln Privatized B+ / BB- rated RCF €300 mln Loans - banks €2,000 mln - investors €1,000 mln Bank group JAB / existing bank relations - 25 banks - 7 dropped-out - 4 reconsidered - 18 new Bank group JAB / existing bank relations - 25 banks - 7 dropped-out - 4 reconsidered - 18 new JAB led acquisition Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q Sara Lee Spin-off

16 15 July 2014, refinancing in view of intended partnership with Mondelez per July 2015 Privatized BB / BB- rated RCF €500 mln Loans - banks €3,900 mln - investors €3,200 mln Privatized BB / BB- rated RCF €500 mln Loans - banks €3,900 mln - investors €3,200 mln Bank group Mondelez / JAB / Existing bank relations - 40 banks - 2 dropped-out - 9 reconsidered - 8 new Bank group Mondelez / JAB / Existing bank relations - 40 banks - 2 dropped-out - 9 reconsidered - 8 new Mondelez refinancing Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q JAB led acquisition Sara Lee Spin-off Mondelez partnership

17 Bank relationships

18 17 Development of bank commitments Why joined: Economics Less crisis Relationship Convinced Why joined: Economics Less crisis Relationship Convinced Why declined: Economics Euro crisis Rating/Leverage Concerns Why declined: Economics Euro crisis Rating/Leverage Concerns Commitments banks € 750 mln Commitments banks € 2.3 bln Commitments banks € 4.4 bln

19 D.E MASTER BLENDERS 1753 B.V. Syndicated Revolving Credit Facility EUR 750,000,000 Coordinator, Bookrunner, Mandated Lead Arranger & Documentation Agent May 2012 D.E MASTER BLENDERS 1753 B.V. Syndicated Revolving Credit Facility EUR 750,000,000 Coordinator, Bookrunner, Mandated Lead Arranger & Documentation Agent May 2012 D.E MASTER BLENDERS 1753 B.V. Advisory Financial Advisor 2012 D.E MASTER BLENDERS 1753 B.V. Advisory Financial Advisor 2012 Value added cooperation D.E MASTER BLENDERS 1753 N.V. Financial Advisor public-to-private Paying & Exchange Agent Joint Lead Arranger Joint Global Coordinator 2013 D.E MASTER BLENDERS 1753 N.V. Financial Advisor public-to-private Paying & Exchange Agent Joint Lead Arranger Joint Global Coordinator 2013 Jacobs Douwe Egberts B.V. Acquisition Finance Financial Logistics Mandated Lead Arranger 2014 Jacobs Douwe Egberts B.V. Acquisition Finance Financial Logistics Mandated Lead Arranger 2014

20 Wallet distribution

21 20 Quote uit termsheet coffee machines leasing proposal Banks, fees & services een vast bedrag per maand waarmee de meeste diensten gratis worden aangeboden.

22 21 Asset takers – Yield is sufficient Ancillary business – Nice to have – Fair share – Demanding Why do banks participate in the financing

23 Increased focus on cross-sell Why? Basel 3: Higher minimum capital requirement Capital needs to be of higher quality Additional capital requirements for system banks Basel 3: Higher minimum capital requirement Capital needs to be of higher quality Additional capital requirements for system banks

24 23 Lending/RCF is the entry ticket – Level playing field taking Tiering into account Ancillary business – Cash management – Foreign exchange – Interest rate management – Financing – Credit cards – Pensions Wallet / Ancillary business

25 24 The Treasurer’s mantra: &

26 25 & The reality is: Cash Profit

27 26 The reality of Treasury is: Too much on reporting Too little on cash Research? Benchmarks? Education? Treasury is procurement!

28 27 What do we do: Financing Fees, interest margins Cash management Fees, interest margins FX Spot / forward bps, FX-swaps 1.5 bps Swaps IRS 1 bps, CCS 1,5 bps, coordination Investments Depo’s / MMF’s 10 bps Capital Total of loans + % of commitments Total Fees / Total Capital = Return on Capital Total Fees Total Capital

29 Risk perception drives return level 28 (Gross) RAROC Risk Adjusted Return Economic Capital Income Liquidity Costs Expected Loss Credit RiskTransfer Risk

30 Key learnings

31 30 Vision on the role of banks Before 2012 Service provider Trusted advisor After 2012 Finance provider - new Service provider Trusted advisor Internal / external factors have major impact on relationships Treasury community needs to step up on wallet distribution increased

32 31 Relationships with banks Trust between banks and corporate at various levels is key United Nation's World Happiness Report: Denmark most happiest country of the world Why: they trust each other…. NRC

33 Thank you


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