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

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

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.
source: The Rebirth of the Blend (1.1aIntroandDiscovery&Creation(SS).pptx)
Slide 12
Note: 72% is total company sales in countries where D.E MASTER BLENDERS has a number 1 or 2 position in retail coffee. 2

3. We have strong local brands
Denmark
France
Spain
Brazil
Australia
Hungary
Norway
NL & BE
Global
Global

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

5. Roast & Ground

6. Senseo

7. Capsules

8. Tea

9. Intended JV with Mondelez announced
Announced on May 7th
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 bln 100%
Merger is complimentary in regions and in coffee expertise.
Many 1st and 2nd positions in key markets

10. Our History
March – June 2012:
The new company name “D.E MASTER BLENDERS 1753” revealed and Company is listed on the NYSE Euronext Exchange
May 2014
DEMB announced the intended partnership with Mondelez on combining
Coffee activities
The business expands into Western Europe
Senseo coffee system launched
Douwe Egberts established
1753
1936
1940s
1978
2001
2010
2012
2013
2014
Pickwick established
Sept 2013
Oak Leaf B.V acquired 95% of the shares
In DEMB 1753
Launched the L’OR EspressO capsules compatible with the
Nespresso® single-serve system
ADD: STOCK LISTING AND SENSEO SARISTA LAUNCH
Douwe Egberts acquired by Sara Lee
OOH: Out of Home

11. Refinancing transactions

12. Before July 2012 Chicago Treasury DCM CM America’s Insurance
Utrecht Treasury
FX Global
CM ROW
Group financing
NYSE listed
BBB rated
Public Debt
Bank funded RCF
Surplus cash
CM / FX banks Q2 Q3 Q4 Q1
2012
2013
2014
2015 12

13. July 2012, spin-off from Sara Lee
Chicago Treasury
DCM
CM America’s
Insurance
Amsterdam Treasury
Capital markets
FX Global
CM Global
Insurance
NYSE listed
BBB rated
Public Debt
Bank funded RCF
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
AEX-listed
BBB rated
USPP $650 mln
RCF €750 mln
Sara Lee
Spin-off Q2 Q3 Q4 Q1
2012
2013
2014
2015 13

14. September 2013, JAB-led acquisition
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
Sara Lee
Spin-off
JAB led
acquisition Q2 Q3 Q4 Q1
2012
2013
2014
2015 14

15. July 2014, refinancing in view of intended partnership with Mondelez per July 2015
JAB+
Bank group
Mondelez / JAB / Existing
bank relations
- 40 banks
- 2 dropped-out
- 9 reconsidered
- 8 new
Privatized
BB / BB- rated
RCF €500 mln
Loans
- banks €3,900 mln
- investors €3,200 mln
Sara Lee
Spin-off
JAB led
acquisition
Mondelez
refinancing
Mondelez
partnership Q2 Q3 Q4 Q1
2012
2013
2014
2015 15

16. Bank relationships

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

18. Value added cooperation
Jacobs Douwe Egberts B.V.
Acquisition Finance
Financial Logistics
Mandated Lead Arranger
2014
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 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

19. Wallet distribution

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

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

22. Increased focus on cross-sell
Why?
ECB belooft strenge stresstest
Basel 3:
Higher minimum capital requirement
Capital needs to be of higher quality
Additional capital requirements for system banks
Company
No. of deals
1. Rabobank 41
2. ABN AMRO 22
3. ING 27
4. Leonardo & Co. 6
5. Lazard 4

23. Wallet / Ancillary business
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

24. The Treasurer’s mantra:
PROFIT AN
OPINION
&

25. The reality is:
PROFIT AN
OPINION
&
Cash
Profit

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

27. What do we do: Financing Fees, interest margins Cash management 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
Total Fees
Capital
Total of loans + % of commitments
Total Capital
Total Fees / Total Capital = Return on Capital

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

29. Key learnings

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

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

32. Thank you