CAGE Conference March 20, 2017 - Cott Corporation
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CAGE Conference March 20, 2017
Safe Harbor Statements
Forward Looking Statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities laws conveying management's
expectations as to the future based on plans, estimates and projections at the time the Company makes the statements. Forward-looking
statements involve inherent risks and uncertainties and the Company cautions you that a number of important factors could cause actual
results to differ materially from those contained in any such forward-looking statement. The forward-looking statements contained in this
presentation include, but are not limited to, statements related to expected future operating results of the Company, anticipated market
trends, and the execution of the Company’s strategy. The forward-looking statements are based on assumptions regarding management's
current plans and estimates. Management believes these assumptions to be reasonable but there is no assurance that they will prove to
be accurate. Factors that could cause actual results to differ materially from those described in this presentation include, among others:
(1) changes in estimates of future earnings; (2) expected synergies and cost savings are not achieved or achieved at a slower pace than
expected; (3) integration problems, delays or other related costs; and (4) unanticipated changes in laws, regulations, or other industry
standards affecting the companies. The foregoing list of factors is not exhaustive. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date hereof. Readers are urged to carefully review and consider the various
disclosures, including but not limited to risk factors contained in the Company's Annual Report in the Form 10-K for the year ended
December 31, 2016. The Company does not, except as expressly required by applicable law, undertake to update or revise any of these
statements in light of new information or future events.
Non-GAAP Measures: The Company routinely supplements its reporting of GAAP measures by utilizing certain non-GAAP measures to
separate the impact of certain items from its underlying business results. In this presentation, we use non-GAAP measures such as
EBITDA, adjusted EBITDA, leverage and adjusted free cash flow and certain ratios using these measures. Since the Company uses these
non-GAAP measures in the management of its business, management believes this supplemental information, including on a pro forma
basis, is useful to investors for their independent evaluation and understanding of the business. Any non-GAAP financial measures used by
the Company are in addition to, and not meant to be considered superior to, or a substitute for, the Company's financial statements
prepared in accordance with GAAP. In addition, the non-GAAP financial measures included in this presentation reflects management's
judgment of particular items, and may be different from, and therefore may not be comparable to, similarly titled measures reported by
other companies. A reconciliation of this non-GAAP measure may be found on www.cott.com.
With respect to our expectations of performance of S&D and Eden as they are being integrated, reconciliations of first year free cash flow
accretion and adjusted free cash flow accretion are not available, as we are unable to quantify certain amounts that would be required to
be included in the relevant GAAP measures without unreasonable effort. We expect that the unavailable reconciling items, which
primarily include transaction and integration costs and phasing of capital expenditures, could significantly affect our financial results.
These items depend on highly variable factors and any such reconciliations would imply a degree of precision that would be confusing or
misleading to investors. We expect the variability of these factors to have a significant, and potentially unpredictable, impact on our
future GAAP financial results.
1
Management Attendees
Jerry Fowden
Chief Executive Officer
Jay Wells
Chief Financial Officer
Jarrod Langhans
Head of Investor Relations
2
A Diversified Beverage Company Focused on Better-For-You
Products and Broad Channel Penetration
Cott is a leading provider in the direct-to-consumer beverage services industry with 2017 Pro Forma 2016 (1)
projected sales of over $3.7 billion and strong free cash flow growth. Adjusted EBITDA
The Company operates through two major business segments: Product(1)
CSD
1 Water and Coffee Solutions (“WCS”) Platform: provides bottled water, coffee, tea and Other 11%
water filtration services to customers across 20 countries. Segment includes DS Services, 13% Juice/Juice
Drinks
Aquaterra, Eden Springs and S&D business lines 8%
Coffee &
Tea Sparkling Water
Growing products and channels associated with “Better-for-You” beverages 18% 8%
including leading, scale platforms in home and office water delivery, coffee, tea and
filtration services within North America and Europe Water
8%
HOD Water
34%
Large categories with low single digit growth across HOD Water, Custom Coffee
Roasting and Tea Blending
Channel(1)
Over 2.3 million customers providing a diverse customer base
2 Other
Traditional Cott: produces beverages on behalf of retailers, brand owners and distributors. Contract Packaging
7%
6%
Focus on cash generation and cash extraction to grow our WCS platform and deleverage. OCS
5% Private Label
Retail
Distribution 27%
Volume stability through value-added and sparkling water product category growth 4%
and growing contract manufacturing channel offsetting sugar sweetened beverage
Convenience
(“SSB”) (Carbonated Soft Drinks “CSDs” and Shelf Stable Juices “SSJs”) market Retailing
Branded Retail
declines 2%
10%
Foodservice
5%
Customer base includes the world’s leading brand owners and retailers in the HOD Water
grocery, mass-merchandise and drug store channels
___________________________
34%
Note: Financials based on FY 2016. Source: Company information, Management estimates. Terms: Home and Office Delivery (“HOD”).
Other product category includes concentrates, filtration services and other. Sparkling waters includes mixers.
(1) 2016 Pro forma Adjusted EBITDA allocated based upon pro-rata 2016 revenues by product category and channel between DS Services (HOD Water, OCS, Water and Other), Traditional Cott (CSD, Juice/Juice Drinks, Sparkling Waters and Other), Eden (HOD
Water, OCS, Water and Other) and S&D (Coffee & Tea).
(2) Corporate costs allocated based upon management estimates 3
With a Track Record of Financial Growth Alongside the
Diversification
Scale revenue player supports operational Expected Mid teen compound growth in Doubling of EBITDA over 3 year period
and procurement leverage with low free cash flows 2016 to 2019
customer concentration
Net Revenue Adjusted Free Cash Flow Adjusted EBITDA
($ in millions) ($ in millions) ($ in millions)
~$3.7B
$3,236 $155 - $175
$150 $357 $373
$2,944
$134
$107
$2,103
$180
2014 2015 2016 2017E 2014 2015 2016 2017E 2014 2015 2016
___________________________
Source: Company information, Management estimates
4
Key Businesses Include: 1. DS Services (Including Aquaterra)
A leading US Direct-to-Consumer Services Provider Across HOD Water, Office Coffee
and Filtration Services
Overview Geographic Coverage and Brand Ownership(1)
Leading bottled water, including many well-known
brands, and coffee direct-to-consumer services
provider to ~1.6mm customers locations through daily 1
operation of >2,000 routes that cover ~90% of the US
1 1
1 1
1
1
37 plants 1 1
National DSD (direct-store-delivery) system 1 3
Vast customer base of homes and small office 1 1 2
Includes Aquaterra, the largest Canadian distributor of 1 1
1
HOD water including well-known brands such as 1 1
2
Labrador Source and Canadian Springs to ~70,000 1 3
customers
1 2
Leading market share (~31%) in the 2015 U.S. HOD 2
bottled water category(2)
Products & Services Net Revenue Contribution
(3)
Other / Filtration Services
Water Delivery Services 10% % of WCS: 53%
$104mm
% of Total Cott: 28%
Office Coffee Retail
15%
Services (“OCS”) Water Delivery
$165mm Services
64%
Retail OCS $681mm
11%
$118mm
Filtration Services
___________________________
2016 Net Revenue(4): $1,067mm
(1) Figures represent regional market share
(2) Market share based on consumption volume
(3) Other net revenue included in Filtration Services net revenue
(4) Includes Aquaterra net revenue of $61mm
Source: Company information 52. Eden Springs
Europe’s Leading Direct-to-Consumer (Home and Office) Water and Office Coffee
Services Provider
Overview Geographic Coverage
Europe’s largest office water and office coffee services Eden Springs geographic presence
company with operations across 18 countries and BWC water position(1)
~800,000 customers Norway 1 1 Finland
2
Meaningful scale across Europe with access to Denmark 2
Sweden 2 Estonia
Latvia
2
Russia
2
attractive end-markets with positive growth outlook
1 2
Netherlands Lithuania
UK
1
(A leading European player with multiple value- 2
Germany
Poland 2
creative tuck-in acquisition opportunities)
1
1
France 1 Switzerland
Expands direct-to-consumer business – High-quality 1
3
and loyal customer base (Combination of DS Services, Portugal Spain
Aquaterra and Eden Springs has >2 million direct to 1
customer delivery points) Israel
Products & Services Net Revenue Contribution
Water Services
Filtration % of WCS: 19%
Retail
6%
€22mm % of Total Cott: 10%
12%
Office Coffee €41mm
Services Water Services
Office Coffee 63%
Services €224mm
Filtration 19%
€66mm
Retail
2016 Net Revenue: €353mm
___________________________
(1) BWC represents total bottled water coolers but is not a market in and of itself as the HOD water business consists of coolers, bottled water as well as other products such as case pack water and single serve products
(2) Market share based on consumption volume
Source: Company information 63. S&D Coffee and Tea
Leading U.S. Foodservice Coffee, Tea Manufacturing and Services Company
Overview Geographic Coverage
Attractive Synergy and Distribution Opportunity with DS Services OCS
One of the largest custom coffee roasters and Business
distributor of coffee and tea-based beverage solutions Third-Party Distribution Direct Route & Third-Party Distribution
to the U.S. foodservice industry
Direct route sales
accounted for ~20%
Four facilities contain dedicated coffee and tea of 2015 net revenue
manufacturing capabilities, extract and ingredient
technology, and over 625,000 total square feet of
warehouse space
3rd Party Distribution sales
Serves over 24,000 blue-chip customers mainly in the accounted for ~80% of total
2015 net revenue
foodservice industry, and delivers to over 102,000
customer locations across U.S.
Products & Services Net Revenue Contribution
Other
1% % of WCS: 28%
Coffee $5mm % of Total Cott: 15%
Distribution
32%
$181mm
QSR & Restaurants
Tea 48%
$269mm
Convenience
Retailing
Specialty extracts & 19%
Ingredients $104mm
(e.g. Cold Brew Coffee)
2016 Net Revenue: $558mm
___________________________
(1) Market share based on consumption volume
Source: Company information
74. Traditional Business
Leading Beverage Platform With Extensive Manufacturing Footprint for Private
Label, Contract Manufacturing and Own Brands
Overview & Strategic Rationale Geographic Coverage
Industry-leading beverage manufacturer and distributor
focused on private label, contract manufacturing and
own brands Canada
Leader in private label shelf stable juices, CSDs
and value-added and sparkling water in North U.S.
America with a growing contract manufacturing
business
Fully integrated concentrate facility with strong R&D
capabilities and vertical integration with high service, Sangs(McDuff)
Sangs
Sangs
Sangs
Sangs
Sangs
Sangs
Sangs (McDuff)
(McDuff)
(McDuff)
(McDuff)
(McDuff)
(McDuff)
(McDuff)
low-cost production model supplying quality
concentrates and exports to customers outside of North Mexico
MEXICO U.K.
America Nelson
Nelson
Nelson
Nelson
Nelson
Nelson
Nelson
Nelson
Merseyside
Merseyside
Merseyside
Merseyside
Merseyside
Merseyside
Merseyside
Merseyside
Bondgate
Bondgate
Bondgate
Bondgate
Bondgate
Bondgate
Bondgate
Bondgate
Wrexham
Wrexham
Wrexham
Wrexham
Wrexham
Wrexham
Wrexham
Wrexham
Kegworth
Kegworth
Kegworth
Kegworth
Kegworth
Kegworth
Kegworth
Kegworth
Customer relationships with over 500 leading retailers in Puebla
Puebla
Puebla Cold Fill
Hot Fill
the grocery, mass-merchandise and drug store channels Other
and band owners
Products & Services Net Revenue Contribution
CSDs Other % Better-for-You: 22%
24% % of Total Cott: 47%
$432mm
Juice / Juice Drinks CSD
31%
Sparkling $559mm
Waters /
Sparkling Waters / Mixers Mixers Juice / Juice
23% Drinks
$401mm 22%
$392mm
Other
2016 Net Revenue: $1,784mm
The strong FCF from the Traditional Business enables us to delever quickly and invest in our growing “WCS” platform
___________________________ 8
Source: Company informationCott’s Vision – To Become the Leading North American and European
Water, Coffee, Tea and Filtration Service Provider Within Home and
Office Delivery, Foodservice, Convenience and Hospitality
• 2% to 3% Organic Growth Within Our Water and Coffee
1 Solutions Segment
• Accretive Small HOD Water, OCS and Filtration Tuck-In
2 Acquisitions in North America and Europe
• Synergy Capture and Integration Within Our Water and Coffee
3 Solutions Businesses
• Maintain Free Cash Flow Generation and Optimize Cash
4 Extraction From Our Traditional Business
• Strengthening Balance Sheet Through Strong Compound Free
5 Cash Flow Growth, Interest Reduction, and Deleveraging
Vision Drives Shareholder Value Creation Via:
Leading North American and European Water, Coffee, Tea and Filtration Service Provider
With Higher Margins and Compound Growth in Revenue and Free Cash Flow
9Key Investment Highlights
1 Diversified Beverage Platform (low product, channel and customer concentration)
2 “Better-for-You” Product Offerings (positioned against growing categories)
3 Leading International HOD Platform (multiple accretive tuck-in opportunities)
4 Recent Scale Acquisitions (meaningful synergies/cost savings opportunities)
Strong Free Cash Flow Generation and De-leveraging (mid teen compound annual growth in
5
adjusted free cash flow)
10Diversified Beverage Platform With Low Product, Channel and
1 Customer Concentration Increasingly Focused on Growing
Categories of Water, Coffee, Tea and Filtration
2016 Pro Forma Adjusted EBITDA(1)
Products Channels
CSD
11% Contract Packaging Other
Other 6%
13% 7%
Juice/Juice Drinks OCS
8% 5% Private Label Retail
27%
Distribution
Coffee & Tea 4%
18% Sparkling Water
8%
Convenience Retailing
2%
Branded Retail
Water 10%
8% Foodservice
HOD Water 5%
34% HOD Water
34%
Better For You(2)
Other
32%
Better For You
68%
___________________________
(1) Corporate costs allocated based upon management estimates. Adjusted EBITDA is a non-GAAP financial measure. See appendix for reconciliation
(2) Other product category includes concentrates, filtration services, energy and other. Sparkling water includes mixers. Better For You platform includes HOD Water, OCS, Coffee & Tea, Water and Sparkling Waters / Mixers
Source: Company information, Management estimates 11“Better-For-You” Product Offering Increasingly Positioned
2
Against Growth Categories
HOD Water Category Filtration Market
HOD Water Volume (gallons in millions) Point of Use Units (units in millions)
CAGR: 3.0% CAGR: 9.0%
2.1
1,338 1.9
1,225 1,285 1.8
1,156 1,174 1,204 1.6
1.5
1.4
891 916
819 835 852 863
337 339 352 362 394 422
2010 2011 2012 2013 2014 2015 2015 2016E 2017E 2018E 2019E 2020E
DSS Other
Source: Beverage Marketing Corporation, The Automatic Merchandiser Source: Zenith International
Out of Home Coffee(1) Hospitality Tea(2)
($ in billions) ($ in billions)
$17.5
$16.6
$15.8 $8.2 $8.5
$14.9 $7.9
$13.9 $7.3 $7.6
$12.9 $7.1
$11.9 $6.7
$6.1 $6.3
$10.7 $11.3 $5.5 $5.7
$9.5
$7.9
2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E 2010 2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E 2020E
Source: Mintel Group, Ltd. Source: Mintel Group, Ltd.
___________________________
(1) Includes roasted, single-cup, instant, ready-to-drink and cold-brew, and refrigerated cold-brew / concentrate U.S. coffee retail sales at current prices; projections exclude refrigerated cold-brew / concentrate coffee retail sales. Excludes
wholesale net revenue
(2) Includes canned / bottled, refrigerated, bagged / loose leaf, and single-cup U.S. tea sales at current prices. Excludes wholesale net revenue
12Leading International HOD Platform With Regional Scale and
3
Multiple Accretive Tuck-in Opportunities
Norway 1 1 Finland
2
Estonia Russia
Sweden 2
Latvia
Denmark 2 2 2
1
Netherlands 2 Lithuania
UK
1
2 Poland
2
Germany
1
1
France 1 Switzerland
3
1
Portugal Spain
Eden geographic presence 1
Israel
BWC water position(3)
DS Services – U.S. Market Leader Eden Springs – European Market Leader
HOD Water(1) OCS(2) HOD Water OCS
Company A
DS Services Eden 6%
~3% 20%
DS Services Eden
~31% Company A 4%
Smaller
Remainder of 3%
Competitors
Top 5
~39% Other
~17%
Other 89%
61% Company B
3%
Smaller Next 5
Competitors 13%
Nestle ~80%
~30%
___________________________
Note: 2015 market shares based on management estimates; market share figures represent regional market share
(1) Source: Beverage Marketing Corporation. Category size of $1.7 billion reflects only bottled water and excludes items such as cooler rent, cups, etc.
(2) Source: ‘Coffee sales rise, so do costs: State of the Coffee Service Industry’, Automatic Merchandiser, September 2015
(3) BWC represents total bottled water coolers but is not a market in and of itself as the HOD water business consists of coolers, bottled water as well as other products such as case pack water and single serve products
Source: Company information, Management estimates
13Recent Acquisitions Provide Meaningful Cost Savings
Opportunities
4
Scales business and meaningfully Improves product and channel mix, Provides scaled growing coffee and
enhances margin profile while reducing exposure to “Big tea production and delivery platform
Box” retail and input costs
Diversifies product mix and improves Furthers Cott’s platform
growth Creates an international HOD diversification strategy across
Strategic platform with leading market share multiple products and channels
across all regions, with significant
Rationale consolidation opportunities
Broadens channel mix
Significant synergies with existing
coffee business
Meaningful synergies and new Increases scale, margin and growth
revenue opportunities generated profile
from new channel and new routes to
market
Eden Springs and S&D Coffee acquisitions are expected to generate total
Expected to generate $25mm of cost synergies of $23mm(1) by 2020
synergies over 3 years
($ in millions) $23
$21
Cost
$21mm of $25mm realized to-date
Synergies
$12
Expected to achieve run-rate $4
synergies by the end of FY2017
2017 2018 2019 2020
___________________________
(1) Eden Springs synergies converted from EUR to USD using 1.102
Source: Company information, Management estimates 145
Strong Free Cash Flow Generation and Compound Annual Growth in
Adjusted Free Cash Flow Supports Rapid De-Leveraging
Adjusted Free Cash Flow (1)(2) Free Cash Flow Drivers
($ in millions)
$134
$150
$155 - $175
Maintain free cash flow generation and optimize
cash extraction from our traditional business
$107
Organic growth of 2% to 3% from our Water, Coffee
& Tea service businesses
2014 2015 2016 2017E
Full-year impact and associated free cash flow from
Eden Springs and S&D Coffee & Tea
~$23mm of synergy generation from Eden Springs
($ in millions)
Adjusted Free Cash Flow (1) and S&D Coffee & Tea as these businesses become
fully integrated
$225 -
$275
Continue to execute-on highly accretive, synergistic
$155 -
$175 and deleveraging tuck-in acquisitions in the HOD
water, office coffee and filtration industries
Opportunistically refinance high coupon debt at
2017E 2019E lower rates and better terms in 2017, subject to
market conditions
___________________________
(1) Adjusted free cash flow calculated as cash flow from operations (excluding acquisition, integration and transaction costs) less capital expenditures
(2) See appendix for adjusted free cash flow reconciliation
Source: Company information 15Strong Free Cash Flow Generation and Compound Annual Growth in Adjusted
5
Free Cash Flow Supports Rapid De-Leveraging - Continued
Proven track-record of quickly deleveraging after acquisitions
Significant free cash flow conversion allows for accelerated deleveraging
Additional deleveraging through cash extraction from traditional business (e.g. sale leasebacks, tight capital
control, various monetization options)
Capital deployment strategy assessed upon reaching 3x range
Pro Forma Net Debt to Adj. EBITDA
High 4x(1)
~3.0x
PF2016 2017E 2018E 2019E Long-term net
leverage target
(1) Pro Forma Leverage subsequent to closing Eden Springs and S&D Coffee and Tea in August 2016. See modeling deck presented August 17, 2016.
Source: Company information
16Strong Free Cash Flow Generation and Compound Annual Growth in
Adjusted Free Cash Flow Supports Rapid De-Leveraging - Continued
Shareholder Value Creation Via:
Leading North American and European Water, Coffee, Tea and Filtration Service Provider With Higher
Margins and Compound Growth in Revenue and Free Cash Flow
Highly diversified product, package and channel mix.
Strong and growing adjusted free cash flow that drives returns to shareholders through a more balanced scale
business with a goal of $225 plus million in adjusted free cash flow by the end of 2019.
Rapid deleveraging results in transfer of value from debt to equity holders.
FREE CASH FLOW YIELD
9.5%
7%
5%
4%
(a) (b) (c)
Cott High Cash Flow Bottlers Route Based
Consumer Services
Note: Adjusted free cash flow yield defined as cash flow from operations less capital expenditures / market capitalization. Market data as of December 31, 2016 (Cott share price: $11.33).
(a) High cash flow consumer peer group includes B&G Foods, Campbell, Pinnacle Foods, Post Holdings, JM Smucker, Snyder’s-Lance, Spectrum Brands and TreeHouse Foods
(b) Bottlers peer group includes National Beverage, A.G. Barr, Britvic, Coca-Cola Amatil, Coca-Cola European Partners and Coca-Cola Femsa
(c) Route base services peer group includes G&K Services, Unifirst, ABM Industries, Chemed, ServiceMaster, Cintas and Aramark 17
Source: Company filings, FactsetQuestions and Answers
18Appendix
19Cott's Diversified Business Platform
Water and Coffee Services Traditional
DS Services
Eden Springs S&D Coffee
(incl. Aquaterra)
Leading SSJ, CSD, and sparkling water /
mixer manufacturer and distributor with a
focus on private label and contract
Leading custom coffee roaster and manufacturing
Direct-to-consumer providers of HOD services company in the U.S. that Customers include leading grocers, drug
water and filtration services across the provides vertical integration benefits stores, mass-merchandisers and global
U.S. (DS Services), Europe (Eden
Springs) and Canada (Aquaterra) Improves overall growth profile by brand owners
Description
providing access to new customers, High cash flow generation through 4C’s
Provides access and leadership position channels and growing categories (strong customer relationships, low
in the growing HOD water and filtration
services industry Provides a leadership position within the operating costs, rigorous capex
growing “On-the-Go” coffee category management and strong free cash flow)
Cash generation and extraction used for
Water and Coffee Solutions growth and
deleveraging
2016 Pro Forma
$1,067mm $389mm(1)(2) $558mm(2) $1,784mm
Net Revenue
Largest or second-largest HOD water Four production facilities: two dedicated
provider in 39 of 43 largest U.S. cities and coffee facilities, one tea facility and one
market leader in Canada Global manufacturing footprint with over
extract and ingredient facility
30 facilities in the U.S., Canada, UK and
Leading European market player across Production space: 625,000 ft.2 with the Mexico
18 countries via the Eden Springs platform ability to add multiple roasters over the
High service levels and low freight costs
Strong platform for accretive tuck-ins coming years as necessary
Footprint Fully integrated concentrate facility with
across geographies in both North America Capable of producing 130-150 million
and Europe at attractive multiples strong R&D capabilities and vertical
pounds of coffee and 40-50 million pounds
integration
37 plants and 15 water sources in the U.S. of tea annually
Customer relationships with over 500
and Canada Since 2010, S&D has invested over
leading retailers and global brand owners
27 water sources across 18 countries in $50mm to expand and upgrade its
Europe (~1/3 owned) production facilities
___________________________
(1) Eden Springs figures translated using EUR to USD FX rate of 1.102
(2) See appendix for reconciliation of Eden Springs and S&D Coffee reported to pro forma net revenue
Source: Company information 20Cott has Successfully Built a “Better-for-You” Beverage
Platform
Transformed the Business Through Strategic Acquisitions
Acquisition Date December 2014 January 2016 August 2016 August 2016
Leading bottled water and
Largest Canadian distributor
coffee direct-to-consumer
of HOD water including well- Europe’s largest office water One of the largest custom
services provider to ~1.5mm
known brands such as and office coffee services coffee roasters and
customer locations through
Business Overview Labrador Source and company with operations distributor of coffee and tea-
daily operation of >2,000
Canadian Springs to ~70,000 across 18 countries and based beverage solutions to
routes with well known
customers and ~C$80 million ~800,000 customers the U.S. foodservice industry
brands such as Sparkletts,
in annual net revenue
Hinckley and Crystal Springs
2016 PF Net Revenue $1,006mm $61mm(1) $389mm(2)(3) $558mm(3)
Geographic Focus United States Canada Primarily Europe United States
Market leader in the U.S. Leading player in the Creates a international home Provides scaled growing
home and office water Canadian home and office and office water delivery coffee & tea production and
delivery category water delivery category platform with leading market delivery platform
shares across regions
Improves Cott’s growth Provides Canadian platform Further improves Cott’s
profile and diversification for further tuck-in Further improves Cott’s product and channel mix
acquisitions similar to DS product and channel mix
Strategic Rationale
Enhances margin profile and Services Significant synergies with
accretive to adjusted FCF Substantial cost and revenue existing coffee business
Attractive multiple due to synergies with DS Services
Provides platform for significant synergies with DS
accretive tuck-in acquisitions Services
The Creation of the “Better-for-You” Platform has been Accretive to Free Cash Flow
___________________________
(1) Aquaterra figures translated using CAD to USD FX rate of 0.755
(2) Eden Springs figures translated using EUR to USD FX rate of 1.102
(3) See appendix for reconciliation of Eden Springs and S&D Coffee reported to pro forma net revenue
(4) Market share based on consumption volume 21
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