Davidstea Inc. · TSXV:DTEA
Davidstea — Proxy Contest (May 2018)
14 slides from Davidstea's proxy contest presentation, May 25, 2018
Slide 1: DAVIDsTEA has a Compelling Vision to Maximize Value for ALL Shareholders
DAVIDsTEA has a Compelling Vision to Maximize for ALL Shareholders Value • Management has a clear, focused plan to address the realities of the current retail landscape. • The dissident, Herschel Segal, has only presented a vague, antiquated vision for DAVIDsTEA. • Mr. Segal is attempting to gain co
Slide 2: Timeline of Events to buy out the minority holders of DAVIDsTEA
Timeline of Events to buy out the minority holders of DAVIDsTEA and take the company private. • March 5, 2018 Mr. Segal and Lorenzo Salvaggio, President and COO of RDI, stepped down from the board of DAVIDsTEA. • DAVIDsTEA shareholders, Porchlight Equity Management, TDM Asset Management and Edgepoin
Slide 3: Positioned for Value Creation: Right Team, Right Plan
Positioned for Value Creation: Right Team, Right Plan • Rebuilt most of DAVIDsTEA’s senior leadership team and filled all open positions in fiscal 2017 In the last 12 months, key strategic hires include Finance, Human Resources, Retail/Store, Merchandising/Buying and Marketing, areas that previously
Slide 4: DAVIDsTEA's Proposed Slate: Qualified & Independent
DAVIDsTEA’s Proposed Slate: Qualified & Independent •Was an audit partner at KPMG Barbados. Group Inc. and chaired the Audit and Risks served as its Executive Vice Chairman Securities Held: including The Home Depot, Vinquiry, Yoga Works Gary O’Connor DTEA Director (2017 to present) •Brings significa
Slide 5: DAVIDsTEA's Proposed Slate: Qualified & Independent
DAVIDsTEA’s Proposed Slate: Qualified & Independent Sydney (Australia) based investment firm •Brings valuable management and finance Ben Gisz New Nominee •Partner at TDM Asset Management, a with a global mandate experience to the Board Additional •Has extensive financial markets experience, includin
Slide 6: DAVIDsTEA has a Go-Forward Plan to Create Value for ALL Shareholders
DAVIDsTEA has a Go-Forward Plan to Create Value for ALL Shareholders Historically, DAVIDsTEA’s growth initiatives have focused on expanding its retail footprint, however the evolving retail landscape calls for adjustments to its growth strategy. Four pillar plan to position DAVIDsTEA to succeed in t
Slide 7: RDI's "Vision" is Vague and Antiquated
RDI’s “Vision” is Vague and Antiquated DAVIDsTEA’s Go-Forward Plan RDI’s Proposed Plan beyond retail programs to drive increased traffic and sales Additionally, Mr. Segal’s plan proposes to “assess DAVIDsTEA’s senior management and make any necessary changes.” This volatile approach to turnover is b
Slide 8: The Facts Matter: Setting the Record Straight
The Facts Matter: Setting the Record Straight RDI’s Critique Reality shareholder value partnerships, licensing or other value-creating digit growth led to the challenges DAVIDsTEA is addressing today 9 Strategic Review x Asserts that the strategic review process underway at DAVIDsTEA is exclusively
Slide 9: RDI's Slate: Questionable Independence
RDI’s Slate: Questionable Independence The majority of management's nominees own shares and will act in the best interests of DAVIDsTEA and ALL of its shareholders. *As referenced in the Dissident Proxy Circular 10 Management Nominees (6) Dissident Nominees (7) •2 nominees are shareholders represent
Slide 10: Major Shareholders Do Not Support RDI's Slate
Major Shareholders Do Not Support RDI’s Slate In a March 28, 2018 letter, three of DAVIDsTEA’s largest shareholders stated: “ The board must continue to represent the interests of all shareholders, not just those of DTEA’s largest shareholder. As such, it is not in the best interests of DTEA or its
Slide 11: Conclusion
Conclusion • Management has a clear, focused plan to address the realities of the retail landscape. • The dissident, Herschel Segal, has only presented a vague, antiquated vision for DAVIDsTEA. • Mr. Segal is attempting to gain control of the company without paying for it. • Mr. Segal is the archite
Slide 12: Vote the YELLOW Proxy prior to June 12, 2018
Vote the Tuesday, YELLOW Proxy prior to 5 pm Eastern Time on June 12, 2018 For questions or voting assistance, please contact Laurel Hill Advisory Group at 1-877-452-7184 toll free (416-304-0211 collect) or by email at assistance@laurelhill.com. 13
Slide 13: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of
Slide 14: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements. These forward-looking statements generally can be identified by the Use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of s