Primo Brands Corporation · NYSE:PRMB
Primo Brands — Investor Day (February 2025)
113 slides from Primo Brands's investor day presentation, Feb 27, 2025
Slide 1: Investor Day
INVESTOR DAY Fe br u a r y 2 7 , 2 02 5 1
Slide 2: Cautionary Statements
Cautionary Statements Disclaimer Safe Harbor Statement provided by (used in) operating activities from continuing operations determined in accordance with GAAP by excluding additions to property, plant and equipment and additions to intangible assets to present free cash flow, This presentation cont
Slide 3: Today's Agenda
Opening Remarks DEAN METROPOULOS | NON-EXECUTIVE CHAIRMAN Primo Brands: A Leading Branded ROBBERT RIETBROEK | CHIEF EXECUTIVE OFFICER Beverage Company Comprehensive Portfolio Designed KHERI TILLMAN | CHIEF MARKETING OFFICER to Serve All Occasions TODAY’S Robust Sales Engine JOE WIGGETMAN | CHIEF CUS
Slide 4: Opening Remarks
OPENING Remarks Dean Metropoulos NON-EXECUTIVE CHAIRMAN
Slide 5: Primo Brands: A Leading North American Branded Beverage Company
Primo Brands: A Leading North American Branded Beverage Company $13B Market Capitalization(1) $17B Enterprise Value(1) NYSE: PRMB #1 Player Across Our Product Offerings $6.8B Fiscal ’24 $1.35B Fiscal ’24 $645M Fiscal ’24 Combined Combined Net Combined Adj. Adj. Free Cash Portfolio of Sales(2) EBITDA
Slide 6: Transformational Combination with Rich North American Heritage
Transformational Combination with Rich North American Heritage Cott Primo Water BlueTriton Nestlé One Rock Capital Partners and Metropoulos Leading Branded Water Challenger & Co. acquired the business in 2021 and Across Product Categories renamed it BlueTriton $750M+ CapEx investment improved cost E
Slide 7: Robust Health & Wellness Trends Driving Long-Term Growth
Robust Health & Wellness Trends Driving Primo Brands’ Long-Term Growth Increasing Consumer Awareness of Water Quality Issues Ongoing and Anticipated Regulatory Trends 7
Slide 8: Primo Brands: A Leading Branded Beverage Company
PRIMO BRANDS A Leading Branded Beverage Company Robbert Rietbroek CH IEF EXECUTIVE OFFICER
Slide 9: We Are Primo Brands
We Are Primo Brands We aim to be a force for good in our communities by providing healthy hydration, local environmental stewardship, and innovative beverage and circular packaging solutions to drive growth and create value for all stakeholders 9
Slide 10: Themes You Will Hear Today
Primo Brands: Driving Strong Financial and Operational Performance Themes You Will Hear Today Market Leading Diversified, Strong Margins Updated Powerful Portfolio of Volume-Led and Cash Flow Synergy Financial Iconic Brands Business Conversion Opportunity Profile Scale to Serve Model Accretive Inves
Slide 11: Bottled Water is a Large and Growing Component of the Beverage Category
Bottled Water is a Large and Growing Component of the $135B+ Beverage Category (1) $135B+ US Beverage Category Size(1) Retail Sales Value of US Bottled Water Category(1) (2024A Retail Sales, $ in billions) Others(3) Sports Drinks $5 $11 $26 Soft Drinks $25 $44 $24 RTD Coffee & Tea $21 $11 ~95% of ho
Slide 12: Well-Positioned to Capitalize On Significant Growth Drivers
Primo Brands is Well-Positioned to Capitalize On Significant Growth Drivers BOTTLED WATER IS THE Increasing Consumer Awareness BEVERAGE OF CHOICE about Water Quality Potential Regulatory Policy Changes and Health and Wellness Trends to Minimize Processed Food and Beverage Products #1 Beverage in Ame
Slide 13: Leader in the Attractive Retail Bottled Water Category
Primo Brands is the Leader in the Attractive Retail Bottled Water Category… 19% Dollar Share of US Bottled Water Sales 43% All Others Ranked by 2024 Dollar Share of US Bottled 15% Water Retail Sales (%)(1) 10% 2% 2% 2% 3% 4% Source: IRI / Circana US Category Data as of December 29, 2024. 1. Represen
Slide 14: #1 US Market Leader Across Numerous Offerings
…And the Market Leader Across Other Major Product Offerings and Services… #1 US Market Leader Across Numerous Offerings Retail Direct Exchange Refill Dispensers 200,000 3M ~26,500 ~23,500 ~11,700 Retail Outlets Customers Retail Self-Service Retail Locations Refill Stations Locations Source: Company
Slide 15: Driven by Our Portfolio of Iconic Brands
…Driven by Our Portfolio of Iconic Brands… Premium Brands Regional Spring Brands Purified Brands Flavored & Enhanced Brands 15
Slide 16: Deep Heritage and Loyalty – 7 Brands 100 Years and Older
…With Deep Heritage and Loyalty – 7 Brands 100 Years and Older 1792 1845 1871 1872 1873 1905 1925 16
Slide 17: Portfolio Serving Consumers Whenever, Wherever and However They Hydrate
Portfolio Serving Consumers Whenever, Wherever and However They Hydrate Product Format / Offering Depth All Channels RETAIL DISPENSERS DIRECT DELIVERY MASS CLUB RESIDENTIAL COMMERCIAL AWAY FROM HOME EXCHANGE REFILL FILTRATION HOME IMPROVEMENT CONVENIENCE GROCERY RESTAURANTS HOSPITALITY HOSPITALS SCH
Slide 18: Brand Reach Amplified by Scaled National Platform
Our Brand Reach is Amplified by Our Scaled National Platform and Route-to-Market Strength 30 90+ ~5,900 Brands Spring Source Fleet Locations 90%+ 70+ 240+ National Direct Production Depots Distribution Coverage Facilities Source: Primo Brands website, public filings and management estimates. 18
Slide 19: Focused Sustainability Efforts Are a Competitive Advantage
Focused Sustainability Efforts Are a Competitive Advantage Circular Greenhouse Gas Packaging Reduction Reduce, Reuse, Dedicated to reducing Recycle greenhouse gases across our footprint Water Community Stewardship Engagement Committed to A force for good in the conservation of Earth’s communities we
Slide 20: Our Accretive Approach
Our Accretive Approach Capitalize on Category Tailwinds and Continue to Sustainably Grow Market Share Harness the Full Strength of Our Brand Portfolio Expand Our Points of Distribution Across Channels & Product Formats Disciplined M&A Across Healthy Hydration Stringent Focus on Synergies Integration
Slide 21: Updated Expected Cost Synergy Opportunity: Larger and Faster
Updated Expected Cost Synergy Opportunity: Larger and Faster Today At Announcement $200M $300M By the end of Year 3 By the end of 2026 Post-Closing (with $200M Generated in 2025) 50% VERSUS ANNOUNCEMENT 21
Slide 22: Introducing Our Long-Term Organic Growth Algorithm
Introducing Our Long-Term Organic Growth Algorithm 3% - 5% ~20% 25% Net Sales Growth(1) Adjusted EBITDA Margins(2) (+500bps margin expansion from FY 2024 to FY 2027) ~4% 2.0x - 2.5x CapEx as % of Net Sales(3) Net Leverage Target(4) 1. Comparison period includes 2024 Combined Financials, less results
Slide 23: Our Must-Win Battles to Fuel Growth
Our Must-Win Battles to Fuel Growth Flawless Integration Execution Brand Leadership Seamless Integration, Setting the Standard, Limitless Potential Leading the Pack First Choice for Stakeholders Net Organic Growth Where Trust Meets Performance New Faces, Loyal Spaces Superior Customer Operational Ex
Slide 24: The Right Team to Drive Our Growth
The Right Team to Drive Our Growth… LEADERSHIP COMPRISED OF BRANDED CPG AND ROUTE-TO-MARKET VETERANS Robbert Rietbroek David Hass Robert Austin Marni Morgan Poe Hih Song Kim Chief Executive Officer & Chief Financial Officer Chief Operating Officer General Counsel & Chief Administrative Officer & Dir
Slide 25: Key Takeaways
KEY TAKEAWAYS Synergy Scaled Target Diversified, Attractive Portfolio of Expected to Volume-Led Organic Iconic Brands be 50% Business Growth to Serve Larger with Model Algorithm Consumers Faster Achievement 25
Slide 26: Comprehensive Portfolio Designed to Serve All Occasions
COMPREHENSIVE PORTFOLIO Designed to Serve All Occasions Kheri Tillman CH IEF MARKETING OFFICER
Slide 27: Our Marketing and Sales Engine
Our Marketing and Sales Engine 27
Slide 28: Key Messages
KEY MESSAGES Diversified Strength Robust Sales Iconic Portfolio for Brands Across & Marketing All Consumer Channels Engine Needs 28
Slide 29: Portfolio of Large, Growing and Highly Valued Brands
Our Portfolio of Large, Growing and Highly Valued Brands BY WATER TYPE (1) $1B+ Regional Spring Water 57% $1.2B $1.2B Purified 37% $300M+ $565M(1) $540M $500M $385M $330M Other Premium $100M+ Water 2% 4% $240M $225M $170M Approaching $100M Based on FY 2024 Comparable Brand Net Sales of $5.9B(2) 2. D
Slide 30: Brand Profile: $1.2B FY 2024 Net Sales
#1 (1) CPG item in the $1.2B FY 2024 Net Sales grocery store in region 99% (2) 45% (2) Since 1845 Brand Awareness Favorite Brand Key Retailers Northeast Coverage Product Formats Case Pack, Occasion Pack, Multi-Serve, Bulk & Sparkling 180 Years of Local Relevance 1. IRI / Circana Top UPC Data as of F
Slide 31: Brand Profile: $1.2B FY 2024 Net Sales
$1.2B 84% (1) FY 2024 Net Sales Brand Awareness Since 1998 Broad Distribution with Nationwide Coverage Product Formats Case Pack, Occasion Pack, MASS DIRECT AWAY FROM CONVENIENCE CLUB Singles & Multi-Serve DELIVERY HOME GROCERY RESTAURANTS SCHOOLS HOSPITALS HOSPITALITY Key Retailers 1. Primo Brands’
Slide 32: Brand Profile: ~$565M FY 2024 Net Sales
~$565M 18% (1) FY 2024 Primo Brand Water Brand Sales Awareness Includes branded dispenser and empty refill bottles net sales Since 2004 2024 Sales Contribution National Coverage 37% Exchange Product Formats Large Format 34% 34% Refill • 1-Gallon • 3-Gallon 18% Direct Delivery 37% 18% • 5-Gallon 11%
Slide 33: Brand Profile: ~$70M FY 2024 Sales
~$70M FY 2024 Sales +76% ’21 – ’24 Sales CAGR(1) Key Retailers 1. See slide later in deck titled “Leveraging Our Platform to Transform and Grow Acquired Brands” for historical figures. 33
Slide 34: Brand Profile: ~$170M FY 2024 Sales
~$170M FY 2024 Sales +37% ’21 – ’24 Sales CAGR(1) Key Retailers 1. See slide later in deck titled “Leveraging Our Platform to Transform and Grow Acquired Brands” for historical figures. 34
Slide 35: Our Marketing Strategy
Our Marketing Strategy Customer Engagement Grow Brand Love Innovation Consumer Connectivity Consistent, meaningful Deepen bonds with the Anticipating needs and Building a connected engagement that keeps consumer to increase delivering solutions that meet ecosystem for consumers to our brands top of
Slide 36: Brand Investment Principles
Brand Investment Principles 1 Where Insights Insights We Invest I Media Shopper Events Partnerships (TV, Social, Digital, SEO) 2 What It Top of Mind Awareness Velocities Brand Love Drives Consideration HH Penetration Cultural Relevance New Distribution Reach 3 How We Execute 36
Slide 37: Invested in Innovation
Invested in Innovation Innovation Growth Territories Consumers at the core of innovation/renovation 67% Establish ‘right to win’ in Of shoppers prioritize health Hydration+ segment over price in beverage choices(1) 75% Create robust pipeline of Still & Sparkling flavors Of adults seek new flavors(2)
Slide 38: Robust Ecosystem that Allows Connectivity
Robust Ecosystem that Allows Connectivity Integrated Digital Platforms DIGITAL DIGITAL RETAIL ADVERTISING WATER.COM SEO DELIVERY APP IN-STORE BRAND WEBSITES 38
Slide 39: Activating Our Brands and Growing Love
Activating Our Brands and Growing Love Outstanding In The Field 39
Slide 40: Robust Sales Engine
ROBUST Sales Engine Joe Wiggetman CH IEF CUSTOMER OFF ICER
Slide 41: Leading Differentiated Portfolio with Scale, Presence, and Momentum
Leading Differentiated Portfolio with Scale, Presence, and Momentum Iconic Diversified Across Product Omni-Channel Brands Offerings & Packaging Types Strength Case Pack 13 Core Brands Bulk 7 100+ Year-Old Brands Occasion Pack 2 Multi-Serve $1B+ Brands Portfolio Designed to Serve All Day Parts, Lifes
Slide 42: Unmatched Branded Leadership
Key Differentiators Unmatched Ubiquity Across Strong Branded Portfolio and in our Industry Leadership Route to Market Momentum 42
Slide 43: Diversified Offerings Across Products, Price Points, and Day Parts
Diversified Offerings Across Products, Price Points, and Day Parts… Spring / Purified Flavored / Enhanced Premium RETAIL Refill Exchange Direct Delivery LARGE FORMAT (-) Price Per oz. Value Across the Pricing Spectrum (+) Price Per oz. (-) Time / Convenience (+) Time / Convenience 43
Slide 44: Diversified Offerings Across Products, Price Points, and Day Parts
Diversified Offerings Across Products, Price Points, and Day Parts… Spring / Purified Flavored / Enhanced Premium RETAIL Refill Exchange Direct Delivery LARGE FORMAT (-) Price Per oz. Value Across the Pricing Spectrum (+) Price Per oz. (-) Time / Convenience (+) Time / Convenience 44
Slide 45: Full Portfolio Leverages Multiple Points of Interruption Throughout the Store
Our Full Portfolio Leverages Multiple Points of Interruption Throughout the Store Format diversity allows for a best-in-class presence in retail Mainstream brands Dispensers / Pumps (case packs) 4 Exchange racks with both spring and purified brands 1 6 Premium brands 2 (case packs) Refill station (w
Slide 46: Leveraging Full Portfolio at Retail and Omni Channel
Leveraging Our Full Portfolio of Offerings at Retail and Omni Channel Powered by Away From Home Retail 5 Retail 7 1 3 2 4 3 Online 1 Drive dispenser penetration and distribution 2 Expand exchange presence 3 Grow premium brands presence across channels 46 4 Selectively grow case packs & multi-serve i
Slide 47: Strength & Leadership Across Channels
…With Strength & Leadership Across Channels Away from Home Emerging - Specialty & Other(1) $476.9M | +10.1% YoY $300.1M | +22.1% YoY 4% 7% RESTAURANTS HOSPITALITY CONVENIENCE RETAIL Mass 12% 40% Direct Delivery(3) FY 2024 $819.7M | +5.9% YoY $2,716.0M | 5.7% YoY Net hgp Sales(2) RETAIL 16% HOME OFFI
Slide 48: Growing Presence Away from Home
Growing Presence Away from Home, Keeping Our Brands Top of Mind Our Premium Brands Have a Significant Market Share Opportunity in Upscale Restaurants MARKET SHARE GROWT H BRAND PRODUCT SP LIT RANK (2 ) RATE (1 ) Leverage our expanded geotargeting team to grow in 1 5.1% existing areas of presence 2 3
Slide 49: Our Formula for Commercial Success
Our Formula for Commercial Success Optimize Cost to Expand Retail Build Pass-Through Location & Digital to Lower Retail Prices e-Commerce Presence Increase Scale Increase Unit & Efficiencies Sell-Through Drive Water Increase Connectivity & Penetration of Route Density Dispensers Cross-Sell Opportuni
Slide 50: Key Takeaways
KEY TAKEAWAYS Strong Meeting All Robust Significant Brands, Consumer Commercial Runway for Getting Even Occasions Engine Growth Stronger and Day Parts to Drive Growth 50
Slide 51: Advantaged Route-to-Market
ADVANTAGED Route-to-Market Rob Austin CH IE F O PERATING O FFICE R
Slide 52: Key Messages
KEY MESSAGES Differentiated Vertical Recent Portfolio to Integration Unmatched Investments Serve All with Scale Spring Will Drive Consumer from Source Network Growth and Usage to Consumer Efficiency Occasions 52
Slide 53: Source to Consumer Creates Competitive Advantage
Source to Consumer Creates Competitive Advantage VERTICALLY SCALED NATIONAL INVESTMENTS IN SUSTAINABILITY INTEGRATED PLATFORM TECHNOLOGY AND AND ASSOCIATE OPERATIONS EXPERIENCE 90+ Direct Distribution $750M+(1) Water Stewardship Spring Sources to90% of Overall Operations and ERP Actively Manage Over
Slide 54: Vertical Integration is Challenging to Replicate
Vertical Integration is Challenging to Replicate 54
Slide 55: Differentiated by Scaled Platform and Hybrid Route-to-Market Model
Differentiated by Our Scaled Platform and Hybrid Route-to-Market Model... Key Inputs ~40% Factories ~30% Customers & Consumers capacity direct to customer off the line opportunity Ecosystem 90+ Springs CLUB RESIDENTIAL Customer Distribution 16 Pipelines Center 70+ Production Facilities 175+ Number o
Slide 56: Opportunity to Optimize Supply Chain Through Investment
Continued Opportunity to Optimize Supply Chain Through Investment Procurement Automation • Bottle production insourcing • Shipping optimization • Packaging improvement • Improved space utilization • Deeper supplier partnerships • Capability to manage SKU complexity Production Logistics Spring Manage
Slide 57: Leveraging Investments in Technology to Improve Growth & Efficiency
Leveraging Investments in Technology to Improve Growth & Efficiency IT/ERP Call Center Digital Invested in IT Call center is a Frictionless website for future growth competitive advantage platform water.com • E2E network enablement • AI agent • Improved UI & UX • Automating back office • Optimized W
Slide 58: Key Takeaways
KEY TAKEAWAYS Vertical Differentiated Recent Integration with Portfolio to Serve Investments Will Scale from Source All Consumer Drive Growth and to Consumer Usage Occasions Efficiency 58
Slide 59: Significant Synergy Opportunity
SIGNIFICANT Synergy Opportunity Jeff Johnson CH IE F TRANS FORMATION OF FICE R
Slide 60: Key Messages
KEY MESSAGES Significant Expected Cost Experienced Synergy Synergy Team With Opportunity Opportunities: Strong Track Across Key Larger and Record of Functional Faster in 2025 Integration Areas 60
Slide 61: Updated Expected Cost Synergy Opportunity: Larger and Faster
Updated Expected Cost Synergy Opportunity: Larger and Faster Today At Announcement $200M $300M By the end of Year 3 By the end of 2026 Post-Closing (with $200M Generated in 2025) 50% VERSUS ANNOUNCEMENT 61
Slide 62: Breaking Down $300M in Anticipated Cost Synergies
Breaking Down $300M in Anticipated Cost Synergies Operations Procurement IT/ERP • Optimization of manufacturing • Optimization of direct material • Optimization of IT systems locations and transportation procurement and sourcing • Opportunity for to leverage newly • Optimization of routes, depots, a
Slide 63: Operating Network Optimization Update
Operating Network Optimization Update PRE-INTEGRATION (2 ) POS T-INTEGRATION (3 ) Brands 30 13 Associates(1) ~14k ~12k Fleet 5.9k 5.2k Factories 70+ 52 Depots 240+ 185 1. Fully-staffed associate counts. 2. Company Information. 3. Management Estimates. 63
Slide 64: Case Study: Synergies from Production Depot Consolidation
Case Study: Realization of Synergies from Production Depot Consolidation Current Combined Facilities Network Optimization Strategy • Maximize Efficiency • Maximize Reliability • Optimize Resources • Optimize Routes • Optimize Loads ■ Primo Water ■ Blue Triton Brands • Optimize Equipment Current Stat
Slide 65: Case Study: Strong Track Record of Route Optimization
Case Study: Strong Track Record of Route Optimization Pre-Integration: Two Depot Route Density Overlap Example Single Branch Route Density Engineered ■ Primo Water ■ Blue Triton Brands Pre-Optimization Post Optimization 64 Routes 55 42 Miles/Route 30 224 Units/Route 262 1.3 Stops/Mile 1.9 65 Source:
Slide 66: Experienced Team Leading the Integration Process
We Have an Experienced Team Leading the Integration Process Integration Executive Committee Steering Committee Robbert Rietbroek David Hass CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER & DIRECTOR OFFICER Mike Cramer Jack Rosenberg DIRECTOR, DIRECTOR COMMITTEE CHAIR Rob Austin Jeff Johnson Eric Lord CHIEF
Slide 67: Key Takeaways
KEY TAKEAWAYS Expected Cost Actively Capturing Experienced Team Synergy Significant With Strong Track Opportunity: Synergies Across Record of Faster and Key Functional Integration Larger in 2025 Areas 67
Slide 68: Break
sLOOD GRAI: flavor with other naiura’ iavois
Slide 69: Exciting Growth Story
EXCITING Growth Story Robbert Rietbroek CH IEF EXECUTIVE OFFICER
Slide 70: Key Messages
KEY MESSAGES Harness the Pursue Strength of Volume- Expand Our Our Brand Disciplined Driven Points of Portfolio to M&A Organic Distribution Grow Market Growth Share 70
Slide 71: Harness the Full Strength of Our Brand Portfolio
Harness the Full Strength of Our Brand Portfolio Disciplined Focus on Core Brands Offering an extensive portfolio of highly 30 Legacy Brands recognizable, responsibly sourced and conveniently packaged branded beverages. Focused on optimizing our brand portfolio 13 Core Brands to drive growth, manage
Slide 72: Accelerating the Growth of Our Premium Brands
Accelerating the Growth of Our Premium Brands Investments in Our Expand Distribution Cross-Selling Enter New Premium Existing Brands and Reach Opportunities Categories • Continued investments • Leverage existing • Opportunity to grow • Leverage our premium at our Mountain Valley customer relationshi
Slide 73: Expand Points of Distribution Across Channels & Product Formats
Expand Our Points of Distributions Across Channels & Products Formats Increasing Dispenser Adoption Exchange Expansion with Continued Investment in our industry leading Regional Spring Water Brands line-up of innovative water dispensers Build on the success of our Exchange through retail and digital
Slide 74: Leveraging Numerous Points of Disruption Across the Store
…By Leveraging Numerous Points of Disruption Across the Store 74
Slide 75: Well-Defined Criteria for Assessing M&A Opportunities
Well-Defined Criteria for Assessing M&A Opportunities WE MAINTAIN A PIPELINE O F AC TIO NABLE M&A OPPORTUNITIES Consumer Cost Iconic brands Attractive financial profile Acquire new and distinct customers and expand Accretive multiples consumer reach / TAM M&A Active lifestyle partnerships and CRITER
Slide 76: Key Takeaways
KEY TAKEAWAYS Leverage our Pursue Volume- Expand Points Iconic Brands Driven Organic of Distribution and Portfolio Growth Synergies & Strategic & Integration-Our Disciplined M&A Top Priority 76
Slide 77: Powerful Financial Profile With Attractive Growth Algorithm
POWERFUL Financial Profile With Attractive Growth Algorithm David Hass CH IEF F INANCIA L OF FICER
Slide 78: Key Messages
KEY MESSAGES Introducing Our Strong Finish Reiterating Our Long-Term to 2024 2025 Guidance Growth Algorithm Capital Structure Capital Allocation Optimization Priorities 78
Slide 79: Strong Comparable Full Year 2024 Results
Strong Comparable Full Year 2024 Results Strong Net Sales growth coupled with 230 bps of Adjusted EBITDA margin expansion and doubling of Adjusted Free Cash Flow Net Sales(1) Adjusted EBITDA(1) Adjusted Free Cash Flow(2) +5.5% +19.3% +118.1% $6,726 $6,376 $1,347 $645 $1,129 v $296 2023A 2024A 2023A
Slide 80: Maintaining Strategic Flexibility with Healthy Balance Sheet
Maintaining Strategic Flexibility with Healthy Balance Sheet Net Leverage Ratio(1) Simplified and Consolidated Capital Structure: ~3.3x 2.0x - 2.5x $3,567 (Current) (Target) • Ratings upgrades: Focus on deleveraging • Moody’s (B1 Positive) • S&P (BB- Positive) • Raised new $750M Available Liquidity(
Slide 81: Go-Forward Financial Disclosures
Go-Forward Financial Disclosures (All Data Utilizing Comparable(1) Results) 1 Annual guidance for Net Sales, 2 Organic and inorganic EBITDA, and Free Cash Flow contributions to Net Sales Volume and Price / Mix Net Sales disaggregation Net Sales disaggregation 3 4 5 contributions to Net Sales growth
Slide 82: Flywheel to Drive Sustained Organic Growth and FCF Generation
Flywheel to Drive Sustained Organic Growth and FCF Generation 1 Sustainable Topline Growth Net Sales Growth 2 Increased Productivity Driving 5 Productivity Margin Expansion Reinvestment in the Business Strong FCF Generation Profile 3 4 Margin Expansion FCF Marketing & CapEx Generation Investments to
Slide 83: 2025 Guidance Reflects Continued Positive Momentum
2025 Guidance Reflects Our Continued Positive Momentum 2024 2025 Organic Net Sales Growth(1) $6.726B 3% - 5%(1) Adj. EBITDA w/ Synergies(1) $1.347B $1.600B – $1.628B % margin 20.0% 23.1% at Mid-Point Adj. Free Cash Flow(2) $645M $790M – $810M Net Leverage ~3.3x ~0.5x Reduction at Mid-Point Note: Pri
Slide 84: Anticipated Synergy Capture and One-Time Costs
Anticipated Synergy Capture and One-Time Costs ~$300M ~$200M in 2025 ~$100M in 2026 Total Estimated Cost Synergy Opportunity Total One-Time Costs Integration CAPEX ~$250M ~$70M in 2025 ~$200M in 2025 ~$100M ~$30M in 2026 ~$50M in 2026 • Production and depot closures including • IT integration / ERP
Slide 85: Our Organic Growth Algorithm
Our Organic Growth Algorithm 3% - 5% ~20% 25% Net Sales Growth(1) Adjusted EBITDA Margins(2) (+500bps margin expansion from FY 2024 to FY 2027) ~4% 2.0x - 2.5x CapEx as % of Net Sales(3) Net Leverage Target(4) 1. Comparison period includes 2024 Combined Financials, less results of exited Eastern Can
Slide 86: Organic Algorithm Drivers: Net Sales Growth
Organic Algorithm Drivers: Net Sales Growth Opportunity to Close Retail 3% - 5% 2024 POD(2) POD Gap to Peers Net Sales Growth(1) +1.5x 5,268 5,569 3,494 Category Growth Competitor A Competitor B Increase Points of Distribution Key Growth Strategies Leverage Brand Portfolio Strength Market Share Gain
Slide 87: Organic Algorithm Drivers: Adjusted EBITDA Margin Growth
Organic Algorithm Drivers: Adjusted EBITDA Margin Growth Adj. EBITDA Margin Progression 3% - 5% 20% 25% ~25% Net Sales Growth(1) Adj. EBITDA Margin(2) 20% Category Growth Realization of Full Synergies 2024A Est. Cost Incremental Adj. Potential 2027E Adj. EBITDA Synergy EBITDA from Sales, Adj. EBITDA
Slide 88: Organic Algorithm Drivers Summary
Organic Algorithm Drivers Summary 3% - 5% 20% 25% ~4% Net Sales Growth(1) Adj. EBITDA Margin(2) CapEx as % of Net Sales(3) Category Growth Realization of Full Synergies Growth Initiative Support Increase Points of Distribution Benefits of Scale IT & Digital Capabilities Leverage Brand Portfolio Stre
Slide 89: Adjusted Free Cash Flow Expected to Approach ~$1B by 2027
Adjusted Free Cash Flow(1) Expected to Approach ~$1B by 2027 ~$1.0B ~$645M (2) 2024E 2027E (3) Full Synergy Net Working Capital Capture Improvements Adjusted EBITDA Growth in Targeted Excess of Net Sales Growth Deleveraging 1. Adjusted Free Cash Flow is defined as net cash provided by operating acti
Slide 90: Balanced Approach to Capital Allocation
Balanced Approach to Capital Allocation Invest in Our Business Fund disciplined investments that drive growth and productivity Deleveraging Dividend Strategy Share Repurchases Disciplined M&A Reduce our net leverage to • Increased our annual Board and management will Complement organic our target of
Slide 91: Organic Growth to be Enhanced by Disciplined M&A Strategy
Organic Growth to be Enhanced by Disciplined M&A Strategy Strong FCF Generation 1 Profile Allows Strategic Net Sales Flexibility Growth 2 Healthy Balance Sheet Increased 5 Productivity and Liquidity to Pursue Inorganic Disciplined M&A Growth / Reinvestment in the M&A Business Continued Tuck-In M&A 3
Slide 92: Tuck-In M&A Value Drivers
Additional Detail on Integration Costs Value Drivers Actively Maintained Pipeline for Direct Delivery, Refill, and Filtration Tuck-Ins ~1.0x - 1.5x Sales Average Purchase Price of Tuck-in Transactions • Tuck-in strategy focused on increasing route density and expanding our national ~3.4x footprint/c
Slide 93: Leveraging Our Platform to Transform and Grow Acquired Brands
Leveraging Our Platform to Transform and Grow Acquired Brands Mountain Valley: Saratoga’s Rapid Growth High-Growth (Since Acquisition) Premium Brand +24,500 new retail stores +45% $ change YoY Doubled on-premise locations +29% (Hotels/Restaurants/Airports) Bottled right at the source – Still / Spark
Slide 94: Key Takeaways
KEY TAKEAWAYS Well- Strong 2024 Powerful Positioned to Disciplined with Organic Deliver on Our Capital Momentum Growth New Long- Allocation Continuing in Flywheel Term Growth Strategies 2025 Algorithm 94
Slide 95: Key Themes You Heard Today
KEY THEMES You Heard Today Market Leading Diversified, Strong Margins Updated Powerful Portfolio of Volume-Led and Cash Flow Synergy Financial Iconic Brands Business Conversion Opportunity Profile Scale to Serve Model Accretive Investment Larger and Faster Attractive Organic Consumers Whenever, Targ
Slide 96: Thank You
THANK YOU for Joining For Additional Jon Kathol Information, V I C E P R E S I D E N T, I N V E S T O R R E L AT I O N S Please Contact: investorrelations@primobrands.com
Slide 97: Appendix
APPENDIX
Slide 98: Definitions and Meanings
Definitions and Meanings GAAP Results Reflect BlueTriton's financial results plus the addition of legacy Primo Water, beginning November 8th, 2024, the closing date of the merger. Combined Results Include the combination of legacy Primo Water with BlueTriton for the full calendar year in addition to
Slide 99: Comparable Base Clarification
Comparable Base Clarification Clarifying Results Attributable to the Exited Eastern Canadian Operations Comparable Base Clarification (in millions of U.S. dollars) Q1 Q2 Q3 Q4 2024 Net Sales $19.9 $25.6 $23.2 $15.7 $84.4 Adjusted EBITDA $(0.6) $2.9 $3.4 $0.3 $6.0 Source: Primo Brands company informa
Slide 100: 2024 Combined and Comparable Net Sales by Water Type
2024 Combined and Comparable Net Sales by Water Type Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 31, 2024 Primo Brands Comparable Net Adjustments2 Combined Net Sales Adjustments3 Net Sales Corporation 1 Sales Regional Spring Water $ 3,234.5 $
Slide 101: 2023 Combined and Comparable Net Sales by Water Type
2023 Combined and Comparable Net Sales by Water Type Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 31, 2023 Primo Brands Comparable Net Adjustments2 Combined Net Sales Adjustments3 Net Sales Corporation 1 Sales Regional Spring Water $ 3,146.1 $
Slide 102: 2024 Combined and Comparable Net Sales by Channel of Trade
2024 Combined and Comparable Net Sales by Channel of Trade Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 31, 2024 Primo Brands Comparable Net Adjustments2 Combined Net Sales Adjustments3 Corporation1 Sales Net Sales Direct Delivery $ 1,381.9 $ 1
Slide 103: 2023 Combined and Comparable Net Sales by Channel of Trade
2023 Combined and Comparable Net Sales by Channel of Trade Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 31, 2023 Primo Brands Comparable Net Adjustments2 Combined Net Sales Adjustments3 Net Sales Corporation1 Sales Direct Delivery $ 1,124.7 $ 1
Slide 104: Full Year Primo Brands EBITDA and Adj. EBITDA
Full Year Primo Brands EBITDA and Adj. EBITDA Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended December 31, 2024 1 December 31, 2023 1 Net sales $5,152.5 $4,698.7 Net (loss) income from continuing operations $(12.6) $92.8 Interest and financing expense, net
Slide 105: Full Year BlueTriton Stand Alone Net Sales, EBITDA and Adj. EBITDA
Full Year BlueTriton Stand Alone Net Sales, EBITDA and Adj. EBITDA Non-GAAP Reconciliation - Unaudited Primo Brands Corporation Primo Water BlueTriton BlueTriton For the Fiscal Year Ended For the Period Ended Stand Alone Stand Alone A B C D =B -C (D/A)^(1/2)-1 December 31, December 31, (in millions
Slide 106: Full Year Primo Water Stand Alone EBITDA and Adj. EBITDA
Full Year Primo Water Stand Alone EBITDA and Adj. EBITDA Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Period Ended September 28, 20241 November 8, 20242 December 31, 2024 3 December 31, 2024 Primo Water Corporation Net sales $1,448.4 $221.1 $254.4 $1,923.9 Accounting pol
Slide 107: 2024 Combined and Comparable Net Sales, EBITDA and Adj. EBITDA
2024 Combined and Comparable Net Sales, EBITDA and Adj. EBITDA Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Period Ended Primo Brands Corporation Primo Water Corporation Primo Water Corporation Combined December 31, 20241 September 28, 20242 November 8, 20243 December 31
Slide 108: 2023 Combined and Comparable Net Sales, EBITDA and Adj. EBITDA
2023 Combined and Comparable Net Sales, EBITDA and Adj. EBITDA Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended Primo Brands Primo Water Corporation Corporation Combined December 31, 20231 Net sales $1,771.8 $4,698.7 $6,470.5 Accounting policy conformity ad
Slide 109: 2024 Combined Free Cash Flow and Adjusted Free Cash Flow
2024 Combined Free Cash Flow and Adjusted Free Cash Flow Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Period Ended Primo Water Primo Water Primo Brands Corporation Corporation Corporation Combined December 31, 20241 September 28, 2024 2 November 8, 20243 December 31, 202
Slide 110: 2023 Combined Free Cash Flow and Adjusted Free Cash Flow
2023 Combined Free Cash Flow and Adjusted Free Cash Flow Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) For the Fiscal Year Ended Primo Brands Corporation Primo Water Corporation Combined December 31, 20231 Net cash provided by operating activities from continuing operations $320.
Slide 111: Interest Coverage Ratio and Net Leverage Ratio - Combined
Interest Coverage Ratio and Net Leverage Ratio - Combined Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars, except financial ratios) FY 2024 Adjusted EBITDA 1 $1,352.5 Interest Expense, net $367.6 Total debt 2 $5,141.9 Unrestricted cash 3 $613.7 Interest Coverage Ratio 4 3.7x Net Lev
Slide 112: Organic/Inorganic Growth - Comparable Results
Organic/Inorganic Growth - Comparable Results Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) Full Year Comparable Net Sales 20231 $6,375.7 Inorganic growth (from acquisitions) 22.6 Organic growth 327.4 2024 Comparable Net Sales1 $6,725.7 Inorganic growth (from acquisitions) 0.4% O
Slide 113: Comparable Net Sales Growth
Comparable Net Sales Growth Non-GAAP Reconciliation - Unaudited (in millions of U.S. dollars) Low High 2024 Combined Net sales1 $6,810.1 $6,810.1 2024 Eastern Canadian operations2 (84.4) (84.4) 2024 Comparable Net sales 6,725.7 6,725.7 Comparable Net sales increase from 2024 202.0 336.0 2025 Estimat