Utz Brands Inc · NYSE:UTZ

Utz Brands — Merger or Acquisition (November 2020)

13 slides from Utz Brands's merger presentation, Nov 12, 2020

  1. Slide 1: Utz Brands, Inc. ON THE BORDER Tortilla Chips Acquisition Announcement

    ℠ Utz Brands, Inc. ON THE BORDER® Tortilla Chips Acquisition Announcement November 2020 1

  2. Slide 2: Disclaimer – Forward-Looking Statements

    Disclaimer – Forward-Looking Statements This presentation includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this presentation include, without limitation, state

  3. Slide 3: Disclaimer – Non-GAAP Financial Measures

    Disclaimer – Non-GAAP Financial Measures “Adjusted EBITDA” is defined as EBITDA further adjusted to exclude certain non-cash items, such as stock-based compensation, hedging and purchase commitments adjustments, and asset impairments; acquisition and integration costs; business transformation initia

  4. Slide 4: Today's Presenters

    Today’s Presenters ℠ Dylan Lissette Cary Devore Chief Executive Chief Financial Officer Officer  CEO of Utz since  EVP & CFO, joined 2012 Utz in 2016  Joined Utz in  Former Managing 1995; worked in a Director at variety of Metropoulos & Co. capacities prior to  25 years in private becoming CEO

  5. Slide 5: ON THE BORDER a Perfect Fit for the Utz Brands Platform

    ON THE BORDER® a Perfect Fit for the Utz Brands Platform Truco Overview Select Products  Leading independent provider of tortilla chips (~80%), salsas 1 (~12%), and dips (~8%) through the ON THE BORDER® brand  Established in 1991 and headquartered in Dallas, TX with approximately 50 employees  Th

  6. Slide 6: Acquisition Aligned with Utz Value Creation and M&A Strategy

    Acquisition Aligned with Utz Value Creation and M&A Strategy 1 #3 Salty Snack  Will increase Utz’s percentage of total retail sales in the $28 billion Salty Snack category from 3.9% to 4.7%, making Utz the #3 brand platform in U.S. Salty Snacks with approximately $1.3 billion in total Platform reta

  7. Slide 7: Transaction Highlights

    Transaction Highlights  Purchase price of $480M1 represents an acquisition multiple of approximately 9.2x estimated 2020E Truco Adjusted EBITDA of $50 million excluding synergies and 8.4x 2020E Truco Adjusted EBITDA including run-rate Transaction cost synergies of at least $5 million, in each case

  8. Slide 8: ON THE BORDER Well Positioned Across Products and Channels

    ON THE BORDER® Well Positioned Across Products and Channels Mass & Club Grocery High- Quality Blue Chip Customers Significant expansion in Mass & Club over last 10 years with Grocery expansion underway Tortilla Chips Salsa / Queso Compelling Product Portfolio 8 ℠

  9. Slide 9: Utz to Become Clear #3 Scale Competitor

    Utz to Become Clear #3 Scale Competitor Total United States Salty Snack Dollar Sales1 Scale is Important $ 17,248 ℠  Increases relevance with key retailers  Optimizes our ability to capitalize on growth opportunities across channels, sub-categories, and geographies $ 1,356 $ 1,301  Leverages our

  10. Slide 10: Improved Competitive Positioning By Sub-Category

    Improved Competitive Positioning ℠ ℠ Category / Channel2 Market Size ($B) L52 % Growth Rank / % of Retail Sales Rank / % of Retail Sales1 Salty Snacks $27.6 8.4% #4 / 3.9% #3 / 4.7% MULO-C Salty Snacks – $6.1 10.0% #4 / 2.6% #3 / 4.1% By Channel Mass Channel Salty Snacks – $1.4 15.2% #3 / 4.2% #2 /

  11. Slide 11: Increased Scale in Expansion & Emerging Geographies, and Mass & Club Channels

    Increased Scale in Expansion & Emerging Geographies, and Mass & Club Channels1 Utz Retail Sales by Geography ON THE BORDER® Retail Sales by Geography Combined Retail Sales by Geography2 Core 14% Expansion Expansion Expansion 30% 42% 32% Core Core 60% 52% Emerging Emerging 43% 10% Emerging 16% Utz Re

  12. Slide 12: Strong Margin and Cash Flow Benefits

    Strong Margin and Cash Flow Benefits ℠ ℠ FY 2020E1 FY 2020E2 Adj. EBITDA $129M - $132M $184M - $187M Adj. EBITDA Margin ~14% ~16% CapEx $28M ~$28M Adj. EBITDA – CapEx $101M - $104M $156M - $159M Adj. EBITDA – CapEx as 78% - 79% 85% % of Adj. EBITDA 1 Utz 2020E is 53 weeks ending January 3, 2021. 2 B

  13. Slide 13: Q&A

    Q&A AVOCADO OIL pee. i CLASSIC SEA SALT ey kerviesrvte ocaro caps ¢ ve

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