Ranpak Holdings Corp · NYSE:PACK
Ranpak — One Madison — SPAC Merger (April 2019)
51 slides from Ranpak's SPAC merger presentation, Apr 23, 2019
Slide 1: One Madison Group / Ranpak
ONE MADISON Group @Ranpak
Slide 2: Disclaimer
ONE MADISON © Ranpak Group Disclaimer Shravan ete lua ce ln ena tinh marin of Sasa 27th Sei Al 192, amended be "Skee At a Scion DE eft Steuies Exnage Act 804 a nda (tee Eacnange Ar). roman sing samara arnt imtasto sama eprint cat agent ots angular, pe, alah, tarts araaga epasngthe kare Satur aoe nto
Slide 3: Table of contents
ig ONE MADISON Table of contents Introduction Ranpak Business Overview Industry Overview Growth Opportunities Financial and Valuation Overview Appendix
Slide 4: Introduction
. ONE MADISON @Ranpak Group Introduction
Slide 5: Situation overview
ig ONE MADISON @Ranpak Group Situation overview One Madison Corp. (NYSE: OMAD) is a special purpose acquisition company launched in 2018 to acquire an operating business that produces stable sales and robust free cash flow, with pricing power and significant opportunities for growth Ranpak Corporati
Slide 6: Why One Madison likes Ranpak
© Ranpak E MADISON Group Why One Madison likes Ranpak Only publicly traded pure-play provider of environmentally friendly product protection solutions Large market opportunity Unique and attractive business model $7bn addressable global market with growth driven by e-Commerce ‘Significant growth pot
Slide 7: The circular economy demands sustainable solutions
© Ranpak The circular economy demands sustainable solutions Environmental sustainability mindshare is accelerating among policymakers, companies, and consumers European Union ttaly India california sc packaging must be Egypte ro ® ® @ A Carmet, Me 8 United Kingdom Taiwan United States Sstsat Stand B
Slide 8: Snapshot of Ranpak
id E MADISON @Ranpak Group Snapshot of Ranpak Industry leader offering full suite of environmentally sustainable, systems-based packaging solutions for e- Commerce and industrial supply chains Installed base of over 97,000 machines using Ranpak consumables exclusively Global business with strong pre
Slide 9: Transaction overview
ig ONE MADISON Transaction overview ONE MADISON $592 © Ranpak 2019E Sales: $289 million on of available equity = Common stock private placement: $142 million at $10.00 per share = Cash from trust: $300 million fully backstopped via committed debt financing 2019E Adjusted EBITDA: $95 million 2019E Ad
Slide 10: Transaction structure
© Ranpak ONE MADISON Group Transaction structure Sources and uses Implied firm value $ in rin) (Sin mm, except per share values) Shares outstanding (mm) 68.9 ae tp ee a Share price $10.00 ‘nchor investors ‘Additional equity 442 Equity value seas. New debt 407___ Netdebt 399 Total sources $999 Enterp
Slide 11: The new Ranpak team
‘g NE MADISON @Ranpak Group The new Ranpak team Board and Operating Advisors one Madison Ranpak Omer Asa 5 etiam oe Mar Borse Trent meyer ee en agceece aes ae pow oe EE £r= sree oa a8 omen ier eee fea setaiie ee sie Larensse rtone Gressont — ‘Seeitiemeeretsic Maroy Bre Navara Ore perceanene cs Sa ee
Slide 12: Ranpak Business Overview
ONE MADISON Group Ranpak Business Overview "1
Slide 13: Attractive and diverse business fundamentals
© Ranpak MADISON Group Attractive and diverse business fundamentals Business overview 2018A sales breakdown 12 Compelling financial attributes — high growth and high margins Clear market leader in sustainable systems Full suite of solutions for global commerce Innovative IP protected systems and tec
Slide 14: Compelling financial attributes — high growth and high margins
© Ranpak Compelling financial attributes — high growth and high margins Ranpak fii » ¢ >) » @ ) (Industry 5) Stn Attractive High e-Commerce esti High Cash Aeon Unit Resilience Customer Growth rage Flow Economics Loyalty Engine sea Conversion S yx _, » q fool ALE 7.3% 15 Months Stable >31,000 > 30% 3
Slide 15: Strong growth driven by machine placement
id ONE MADISON @Ranpak ~ Group Strong growth driven by machine placement Sales) # of Machines (YE in 000s) {Sra rilons, unless otherwise noted) Nota: Based an unaudted sles pir to 205. 14 (1) Basedion constant curency at €/ 1.18. 2015 to 2017 sales ae po ferme fer he eSneo acquston. 2015 to 2019 sal
Slide 16: Global infrastructure to support growth
E MADISON © Ranpak’ Group Global infrastructure to support growth Each manufacturing facility is equipped to convert paper Adequate capacity for future expansion without into rolls and fan-fold products significant capital expenditures nyrany, c7ech 302) Seles Offee Paper Conversion v 3 Cty, mo Pepe
Slide 17: Full suite of solutions for global commerce
id INE MADISON @Ranpak Group Full suite of solutions for global commerce Cushioning (45% of sales) Void-Fill (44% of sales) '= Focused on protection of fragile objects from shocks '= Focused on fling empty space in secondary packages and vibrations through cushioning 1 System converts paper to fll e
Slide 18: Continuous innovation leading to high-quality, patent-protected systems
@Ranpak ONE MADISON Ranpak Group Continuous innovation leading to high-quality, patent-protected systems mass B PadPak SR PadPak JR PadPak AJR PadPak LC Plus Voia-Fil i & | 4 q Fupak st FIIPak TT Frlpak TTC Fak M — 2 & Ff ue WrapPak FS Geami HV WrapPak PS Geami Exbdox 2003 Weapping ONE cess Void Fa
Slide 19: Industry-leading intellectual property and patent portfolio
@Ranpak E MADISON Group Industry-leading intellectual property and patent portfolio Intellectual property overview = Ranpak has maintained a comprehensive patenting program since its inception for its converting equipment and accessories, processes and packaging material = Ranpak maintains substanti
Slide 20: End markets
© Ranpak ONE MADISON Group B26 528 Underiying aa Market ‘Automotive e-Commerce auto aftermarket ITLelectronics Machinery Home aoods % of market ~40% 5% ~% 10% 2% % of Ranpak sales 35% ~10% ~8% Th 6% Est growth rate Low to mid teens GDP plus = Integrated packaging |= Strong protective = Lowneed for 1
Slide 21: Why Ranpak wins
© Ranpak ONE MADISON Group Why Ranpak wins Systems placed at no cost to end user '= No capital outlay required for end users to improve efficiency of their business '= High speed and reduced handling results in higher productivity ® Throughput and speed () Reliability of machines and service = Paper
Slide 22: Razor / razorblade model supports long-term relationships
@Ranpak ONE MADISON Ranpak Group Razor / razorblade model supports long-term relationships and favorable economics ‘Systems and consumables sold direct and through exclusive distributors > = Customers exclusively use Ranpak’s consumables = High customer satisfaction due to reliability and high quali
Slide 23: Asset-light distribution model through exclusive distributors
ia E MADISON @Ranpak Group Asset-light distribution model through long-term exclusive partnerships with top tier distributors Long-standing customer partnerships Exclusive distributors 1 Sells value-added consumables to end-users through an Sales breakdown by relationship Number of distributor-servi
Slide 24: Human Capital Overview
© Ranpak E MADISON Group Human Capital Overview” Employee Count 1 Ranpak maintains a highly skilled workforce Funetion As of April 30, 2018 Manufacturing 258 = North American workforce of 256 is non-union Sales 139 Engineering 6 = European workforce of 274 has 165 employees in the cee i" Netherlands
Slide 25: Industry Overview
ONE MADISON Industry Overview 24
Slide 26: Clear market leader in sustainable, system-based solutions
id ONE MADISON @Ranpak _ Clear market leader in sustainable, system-based solutions for e-Commerce and industrial supply chains Global protective packaging Paper “in-the-box” packaging’) SealedAir> = $7 billion global Airbags a 8 market 1 Paper to gain share from less Foam environmentally 39% ing fr
Slide 27: Paper-based packaging is the only protective packaging product usable across all applications
© Ranpak Paper-based packaging is the only protective packaging product that can be used across all random “in-the-box” applications “In-the-box” protective packaging appli Cushioning and Void-fill Wrapping biccnae Beane Foamin-place Non-random Engineered foam Random and Insulated shipping container
Slide 28: Fiber is the preferred solution
IE MADISON Ranpak “Group Fiber is the preferred solution Customers want it... GG t you look at the millenriats, they are the fst generation now who are wiling consciously to spend more for better quality, for sustainability, for traceability. | think there is a change. 99 Peter Brabeck-Letmathe, Cha
Slide 29: Paper packaging, the sustainable solution for in-the-box protection
© Ranpak MADISON Group Paper packaging, the sustainable solution for in-the-box protection ¥ 85% of Ranpak’s paper packaging in the US consists of either entirely or partially ‘ recycled content Y Significant cost savings via reduced packing time and materials © || © 100% Biodegradable] | 100% Renew
Slide 30: Growth Opportunities
ONE MADISON Group 29 Growth Opportunities
Slide 31: Compelling building blocks for sales and Adj. EBITDA growth
@Ranpak ONE MADISON Group Compelling building blocks for sales and Adj. EBITDA growth Sales growth Base growth =) a tailwinds 2%-3% — Pree MEE Demograpnic Wespoing ere TT tatands oF BE = mroatve induct! millonnals = Geographic = Vohiso aging" procucts(loT/proguction —=—ctering txpansion a oceacivele
Slide 32: Compelling e-Commerce and automation tailwinds
INE MADISON Compelling e-Commerce and automation tailwinds Number of shipped packages is growing "Green" passive cold-chain\” Automation capability (Gackagesin ions) = Wel-posioned for growth gen ‘no acauistion Historical USPS packaging volume fewpetted adoptenofcaldchan boxing Te race cao OD & groc
Slide 33: Priority growth opportunities
© Ranpak Priority growth opportunities APAC Ranpak’s APAC business currently represents only 5% of overall company Wrapping Paper-based systems led by Geami & WrapPak are compelling alternatives to plastic bubble wraps Parcel Shipping Business is Booming Worldwide ‘China USA Japan s=Parcels (nb) = S
Slide 34: Near-term value creation levers
E MADISON Ranpak en Gem Near-term value creation levers One Madison’s expertise and network can be utilized immediately to improve Ranpak’s core business Areas of Focus = significant opportunity that historically has not been a focal point Retail distribution for = Focused marketing efforts devoted
Slide 35: Other growth opportunities - One Madison-led initiatives
io E MADISON ies - One Madison-led initiatives Other growth opportuni Ranpak is an attractive platform and brand to grow beyond its current three core applications Areas of Focus Substantial opportunity in growing grocery delivery / Click & Collect Growth of online Pharmacy, meal kits Cold chain / T
Slide 36: Financial and Valuation Overview
ONE MADISON Group 36 Financial and Valuation Overview
Slide 37: Financial summary
@Ranpak Financial summary (S inmitons, unless cherie noted) Net Sales(? Pro Forma Adj. EBITDA $289 $95 $86 $85 978 $80 20158 20168 20178 20188 2019 20158 20168 20178 20188 2019E mee Revenue Revenue Growth mes EBITDA, EBITDA Margin % Growth (constant currency) é 3% 7% (196) 11% Capex Free cash flow®)
Slide 38: Ranpak has started off strong in 2019
ie INE MADISON Ranpak has started off strong in 2019 ‘Systems installed base Net sales(®) (machines in thousands) (Sin milfons) Ca > 98.5 $665 ate $59.5 ants arg ante. arta Gross profit”? PF adj. EBITDA (Sin mitins) ‘Sin mitions) 38 $19.4 ants Cory aris Cry = Drivers of growth — Top-line driven by s
Slide 39: Ranpak is a best-in-class asset with superior financial metrics
ia E MADISON @Ranpak Group Ranpak is a best- financial metrics n-class asset with superior Sales growth Adj. EBITDA margin FCF margin® Return on tangible assets) (20184 - 20198) (20198) (20198) (20184) Ranpak 33% Expects ‘Middleby 9% 35% 7% 34% Rockwall Automation CH Robinson Nerésen 8% 33% ‘Sealed
Slide 40: Superior top-line growth and profitability
© Ranpak ONE MADISON Group Superior top-line growth and profitability ‘Sales Growth and EBITDA margin 34% Maintains Ranpak — leading wore OG with coor wy ae ow @ Nordson 5 a gout a 24% 5 pelea 6 nay 3 ohne z é 5 a 19% ea © Sealed Ar $ co. ° 14% Egnttos 9% ° © Kuehne + Nagel 4% CH Robinson a%) 1% 3%
Slide 41: Ranpak valuation in perspective
‘i ONE MADISON @Ranpak Group Ranpak valuation in perspective EV/ EBITDA 2019 ‘Average ‘Average ‘Average 13.1x 15.7K 12.1x 178 18.1x 1 te4x 15.4x cette 13.5x 144% 13.0x 13.3x 1S 110x _11.4x 11.8x Kuehne CH Expediters Middleby TW Rockwell Notdson IDEX Graco CCL Sealed Air Apter Ball Renpak + Nagel Rob
Slide 42: Recurring sales from consumables historically has made Ranpak recession resistant
© Ranpak Recurring sales from consumables historically has made Ranpak recession resistant Modest Sales Decline in 2009 Recession ‘Stable Adj. EBITDA in 2009 Recession ‘Srv = Kraft Paper inmitions) ( +380 BPS ; I 2008 - 2009 Price: (3%) 1 set set 20088 20088 20088 20088 Revenue MEEEBITDA =€=% of Rev
Slide 43: Investment highlights
© ONE MADISON @Ranpak Group Investment highlights Financial highlights Incremental upsides ¥ Long-term sales growth — 7.3% 2015A to 2019E CAGR v e-Commerce led growth — 30%+ e-Commerce exposure ¥ Industry-leading EBITDA margin — 32% 201 8A Adjusted EBITDA Margin Y High cash flow conversion — 84% 201
Slide 44: Appendix
ONE MADISON Group 43 Appendix
Slide 45: One Madison Team
@Ranpak ONE MADISON Group One Madison Team One Madison has the industry and func' nal expertise to drive growth at Ranpak = Previgus roles = CEO and President of HRG Group = Cortiead af Geidman Sachs Hedge Fund Strategies, ‘omar Asati = Geidman Sachs Investment Banking Chaiiman & 00 ‘One Madison Boa
Slide 46: One Madison Team
Ranpal ONE MADISON Group One Madison Team One Madison has the proven M&A capability to enhance growth in Ranpak’s key areas of focus and / or add adjacent businesses to Ranpak’s product offering J + Mostreconty Vic President nesients at HRG } «Most econty Parner, Senior Research Analyst Geus Orang C
Slide 47: Ranpak management team
@Ranpak’ Erie Laurensse = Momentive Managing Director General Electric Europe ‘years Larry Thomas = Toyota Tsusho Bert Cals sm ). Managing Director = AirProducts Director of Busi . yelopment, Europe 1Yeor Dow. 15 years Jean-Yves Sia . Michele Smolin CColins & Scanlon LLP. = General Electric - \VP~ G
Slide 48: Non GAAP metric reconciliation
ONE MADISON @Ranpak Group Non GAAP metric reconciliation Gross to net sales $000 Fyi5'” | FY16 FY17 FY18 aris” aig” Repoted net sales $210,982 $224,708 $244,092 $267,860 961.607 956,083, Proforma esneo 3,159 4087 6 (406) (405) - Currency adustmont 3.556 4.399 219 @,120) 208) 465 Pro forma net sales
Slide 49: Consolidated statements of comprehensive income (loss)
@Ranpak" E MADISON Group Consolidated statements of comprehensive income (loss) 3000 Net sales Cost of sales Gross proft Seling, ganeral and administrative Depreciation and amortization Other operating expense (inceme). net income from operations Interest expense Foreign currency (ain) loss Loss bef
Slide 50: Consolidated balance sheets
@Ranpak ONE MADISON Group Consolidated balance sheets $000 FY17 FY18 Tell property ent nl quent -net 74533 73.0408 Tol ants 53320 72761 4 ‘The summary fnenil statement cts has boon derived fom aucted fnancils of Rack Holdings In. includedin the Regitration Statement on Form S$
Slide 51: Additional Information
Additional Information In connection with the proposed acquisition, One Madison filed a registration statement on Form S-4 (File No. 333-230030) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”), which includes a preliminary proxy statement/prospectus, that is bo