Signet Jewelers Limited · NYSE:SIG
Signet Jewelers — Merger or Acquisition (February 2014)
16 slides from Signet Jewelers's merger presentation, Feb 19, 2014
Slide 1: Combining Two of Today's Leading Jewelry Retailers
Every kiss begins with Kay.® Combining Two of Today’s Leading Jewelry Retailers Investor Presentation February 19, 2014 1
Slide 2: Safe Harbor for Forward-Looking Statements
Safe Harbor for Forward-Looking Statements Statements in this presentation regarding the proposed transaction, the expected timetable for completing the proposed transaction, future financial and operating results, future capital structure and liquidity, benefits and synergies of the proposed transa
Slide 3: Combining Two of Today's Leading Jewelry Retailers
Combining Two of Today’s Leading Jewelry Retailers FY 20131 Revenue $3,983 million $1,888 million FY 20131 EBITDA $660 million $68 million Number of retail stores as of FYE 20131 1,954 1,694 Number of retail brands 17 6 Major retail brands Geographic footprint United States and United Kingdom United
Slide 4: Signet is the #1 Specialty Jeweler in the U.S. & U.K.
Signet is the #1 Specialty Jeweler in the U.S. & U.K. Kay Jewelers #1 Jewelry store in U.S. Sales: ~$2.0 billion Stores: 1,057 in 50 states Jared The Galleria Of Jewelry #1 U.S. Off-Mall Specialty Jeweler Sales: ~$1.0 billion Stores: 205 in 39 states H.Samuel #1 in U.K. Sales: ~$0.4 billion Stores:
Slide 5: The Addition of Zale Complements Signet's Core Growth Strategies
The Addition of Zale Complements Signet’s Core Growth Strategies Companies that build from core strengths create sustained value Build upon existing growth strategies Increase innovation and testing to drive merchandise initiatives Maximize Mid-Market Explore and expand through formats, lo
Slide 6: Complementary Strengths Align to Drive Future Growth
Complementary Strengths Align to Drive Future Growth Iconic retail brands in U.S. & U.K. Maximize Iconic retail brands in U.S. & Canada Mid-market Successful development and growth of Successful development and growth branded, differentiated and exclusive of branded, differentiated and merchandise (
Slide 7: A Compelling Value Proposition
A Compelling Value Proposition Broadens geographical footprint with Zale’s locations across the United States and Delivers Scale & Canada Geographic Expansion Allows Signet to significantly expand into Canada via Peoples Jewellers, the #1 specialty fine jeweler in Canada with 146 locations Enhan
Slide 8: The Combination Creates a More Diversified Retailer…
The Combination Creates a More Diversified Retailer… Signet: 1,974 stores1 Zale: 1,679 stores1 Pro forma: 3,653 stores Canada: 0 Canada: 199 Canada: 199 Global footprint U.S.: 1,478 U.S.: 1,480 U.S.: 2,958 U.K. & Ireland: 496 U.K. & Ireland: 0 U.K. & Ireland: 496 Canada U.K. 5% Breakdown 25% Canada
Slide 9: … With an Expanded Portfolio of Attractive, Differentiated and Exclusive Brands
… With an Expanded Portfolio of Attractive, Differentiated and Exclusive Brands to Drive Future Growth Key exclusive brands 27.4% Exclusive 19.0% brands as % 8.0% 11.0% of sales¹ Jan-10 Jan-13 Jul-12 2 Jul-13 1 For Zale Corporation: as % of fine jewelry sales 2 Earliest reported date for exclusive b
Slide 10: Transaction Summary
Transaction Summary $21.00 per Zale share all cash offer, implying ~$1.4 billion enterprise value for Zale Represents EV / LTM Oct-13 Adjusted EBITDA¹ multiple of 7.4x2 Structure and J.P. Morgan has provided new underwritten term loan facility and bridge Consideration financing commitment St
Slide 11: Combined Financial Overview
Combined Financial Overview Revenue ($ billion) Standalone Signet Pro Forma Signet $6.2 Additional distribution points $3.4 $3.7 $4.0 and geographic reach provide $3.3 $3.3 solid platform for top line growth Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Pro formaLTM Oct-20131 Operating efficiencies will dr
Slide 12: Overview of Synergies
Overview of Synergies Estimated $100 Million Synergy Potential Provides Opportunity for Substantial Value Creation Signet’s manufacturing knowledge, buying processes, and proprietary systems in partnership with Zale’s team will accelerate Supply Chain / Purchasing and ensure gross margin improveme
Slide 13: Additional Business Benefits
Additional Business Benefits The Alliance Data Systems agreement will improve Zale’s credit offering and lower the cost of credit Credit Optimization Enhanced credit approval rates, strengthened lifecycle marketing and improved in-store credit presentation. Store rationalization continues In
Slide 14: Financing and Capital Structure
Financing and Capital Structure Expected financing includes a combination of: Significant accounts receivable securitization Bank debt Other debt financing J.P. Morgan has committed to provide financing for the transaction Company expected to achieve investment grade rating post transaction gi
Slide 15: Transaction Strengthens Signet's Foundations and Unlocks New Growth Opportunities
Transaction Strengthens Signet’s Foundations and Unlocks New Growth Opportunities We are going to invest in and grow the Zale brands Maintain Zales as a collection of stand alone brands within the Signet portfolio of brands Optimize marketing and promotional spend on Zales to drive brand recogni
Slide 16: Important Additional Information Will Be Filed With The SEC
Important Additional Information Will Be Filed With The SEC Zale Corporation plans to file with the Securities and Exchange Commission (the “SEC”) and mail to its stockholders a Proxy Statement in connection with the proposed transaction. The Proxy Statement will contain important information about
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