Slide 1: Investor Presentation
Investor Presentation September 2020
Slide 2: Disclaimer (1/2)
Disclaimer (1/2) Forward Looking Statements Certain statements in this presentation may be considered forward-looking statements. Forward-looking statements generally relate to future events or future financial or operating performance of Conyers Park II Acquisition Corp. (“CP”) or Advantage Solutio
Slide 3: Disclaimer (2/2)
Disclaimer (2/2) Use of Projections This presentation contains financial forecasts with respect to the Company’s projected financial results, including Revenue and Adjusted EBITDA, for the Company's fiscal years 2020 through 2021. The Company's independent auditors have not audited, reviewed, compil
Slide 4: Today’s Participants
Today’s Participants Conyers Park II Advantage Solutions Brian Stevens Jill Griffin Chief Financial President and Jim Kilts Dave West Brian Ratzan Tanya Domier Officer and Chief Chief Executive Chief Executive Chief Financial Chief Executive Operating Commercial Chairman Officer Officer Officer Offi
Slide 5: Today’s Agenda
Today’s Agenda 1. Key Messages / Introduction 2. Advantage Solutions Business Overview 3. Advantage Solutions Financial Overview 4. Advantage Solutions Transaction Details 5. Conclusion 4
Slide 6: Key Messages / Introduction
Key Messages / Introduction Section 1
Slide 7: Situation Overview
Situation Overview We are pleased to share with you our thoughts on the business combination of Conyers Park II with Advantage Solutions (“Advantage” or the “Company”) As part of the combination, we will deploy our $450mm held in trust as well as the proceeds from a $700mm common stock private p
Slide 8: Our Investment Thesis
Our Investment Thesis Advantage is the leader in the mission-critical sales and marketing services industry – Emerged as the go-to-company in the industry – Significant and durable competitive advantages due to scale, differentiated capabilities and investment in talent and technology over time
Slide 9: Why We Believe Advantage Is a Terrific Business and a Terrific Value
Why We Believe Advantage Is a Terrific Business and a Terrific Value Advantage is better positioned versus competition today than it ever has been – Clear leader in the space – #1 share in key business units – Unmatched scale and capabilities and proprietary technology tools Resilient business m
Slide 10: Transaction Overview
Transaction Overview Enterprise value of $5.2bn – Compelling valuation at 10.1x 2021E Adjusted EBITDA of $515mm and 10.9x 2021E Adjusted EBITDA less CapEx of $475mm (CapEx of $40mm) Transaction proceeds used to reduce company leverage – Resulting net debt of $1.9bn(1), or 3.7x LTM June Adjusted
Slide 11: Advantage Solutions Business Overview
Advantage Solutions Business Overview Section 2
Slide 12: Company Snapshot
Company Snapshot Advantage manages critical sales, merchandising and marketing activities for clients at scale across the entire consumer ecosystem… 400+ Data Analytics 200,000+ Retail 3,500+ Clients 58,000+ Associates Professionals Outlets Select Brands Select Retailers …resulting in durable compet
Slide 13: What Advantage Does
What Advantage Does Essential partner to leading brands and retailers, helping clients reach consumers every day in- store and online through technology-enabled sales and marketing solutions Represents activity supported by proprietary SALES PRODUCT'S PATH TO PURCHASE technology and insights 1 3 Ret
Slide 14: We Divide Advantage Into Two Operating Segments
We Divide Advantage Into Two Operating Segments 2019A Total Revenue of $3.8bn Sales Revenue of Marketing Revenue of $1,955mm $2.0bn $1,830mm $1.8bn (52% of Total) (48% of Total) Sales Marketing Clear market leader across core service lines in both Sales and Marketing segments with attractive platfor
Slide 15: Our Sales Business: Leader in Essential Sales and Merchandising Services
Our Sales Business: Leader in Essential Sales and Merchandising Services Provides essential sales and merchandising services Market Leader with Scale Advantages to increase consumer product sales in-store and online for leading brands and retailers U.S. Sales Agency Revenue (Data as of 2018) Lar
Slide 16: Our Marketing Business: Leader in Attractive Large and Growing Categories
Our Marketing Business: Leader in Attractive Large and Growing Categories Market leader in experiential marketing and Strong #1 Market Share Position sampling – $1bn+ of revenue Manage Leading Retailers’ Critical In-store and Online Sampling – Sticky long-term partnerships with leading Programs re
Slide 17: Our Digital Commerce Services: Unique Capabilities to Win in E-commerce Market
Our Digital Commerce Services: Unique Capabilities to Win in E-commerce Market Building end-to-end platform to manage all aspects of clients’ e-commerce value chain across sales, merchandising and marketing activities Leading partner at key e-commerce retailers including: Well positioned to ca
Slide 18: Advantage is an Indispensable Component of the Value Chain…
Advantage is an Indispensable Component of the Value Chain… Deeply integrated with leading brands and retailers, managing critical components of how they execute their go-to-market strategy to grow their business every day Brand Partnership: Leading CPG Manufacturer Retailer Partnership: Leading Gro
Slide 19: …With Expanding Partnerships from Earned Trust…
…With Expanding Partnerships from Earned Trust… Strong Partnership Providing Critical Services for 25+ Years E-Commerce Leading CPG Manufacturer Agency Shopper Marketing Agency Consumer Promotion Agency Sales Food Service Marketing Marketing Business Intelligence and Technology Retail Experiential N
Slide 20: …Resulting in Strong, Long-Term Relationships…
…Resulting in Strong, Long-Term Relationships… Service Offering Client Length of Relationship Sales Marketing 25+ 25+ 25+ Brands 15+ 15+ 10+ 10+ 10+ 25+ 25+ 25+ Retailers 25+ 25+ 25+ 20+ 20+ From 2009 through 2019, Advantage has achieve
Slide 21: …Creating a Proven Track Record Across Economic Cycles
…Creating a Proven Track Record Across Economic Cycles Revenue CAGR: 12.6% Organic Revenue CAGR(2): 4.0% $3,708 $3,785 Adj. EBITDA CAGR(1): 11.0% 2008 – 2010 Revenue CAGR: 9.6% $2,417 Adjusted EBITDA(1): 11.8% $2,100 $1,895 $1,714 $1,575 $1,401 $1,171 $1,110 $924 $953 $907 $471 $504 $411 $440 $327 $
Slide 22: Daymon Acquisition Significantly Strengthened Competitive Position
Daymon Acquisition Significantly Strengthened Competitive Position Combination created the industry’s leading provider of services to both brands and retailers #1 Provider of Brand Services #1 Provider of Retailer Services 1 Filled Retailer-Centric Merchandising Added pioneer and leader in retaile
Slide 23: COVID-19 Temporary Headwinds for Portions of Advantage
COVID-19 Temporary Headwinds for Portions of Advantage Post-COVID- Current 19 Long-Term % of 2019A Revenues COVID-19 Impact Status Outlook Brand and retailer centric sales ↑ Sales 52% Digital commerce ↑ Positive Positive Foodservice and all other ↓ Experiential In-Store Sampling ↓ Temporary
Slide 24: Advantage Solutions Financial Overview
Advantage Solutions Financial Overview Section 3
Slide 25: Summary Financials – Revenue
Summary Financials – Revenue Sales Marketing $3,708 $3,785 $3,470 $3,206 $2,045 $1,955 $2,025 $1,857 $1,851 $1,830 $2,417 $1,588 $1,425 $1,182 $828 2017A 2018A 2019A 2020E 2021E 2017A 2018A 2019A 2020E 2021E 2017A 2018A 2019A 2020E 2021E Growth: 9.7% 16.9% 5.3% 3.6% 1.0% 27.1% 123.4% (1.1%) (35.4%)
Slide 26: Summary Financials – Adjusted EBITDA (and % Margin)
Summary Financials – Adjusted EBITDA (and % Margin) Sales Marketing $504 $515 $471 $475 $440 $342 $348 $352 $295 $310 $194 $176 $163 21.5% $127 18.2% $98 14.8% 14.8% 15.9% 15.8% 17.2% 17.2% 12.7% 13.3% 11.8% 9.5% 10.6% 10.7% 11.4% 2017A 2018A 2019A 2020E 2021E 2017A 2018A 2019A 2020E 2021E 2017A 201
Slide 27: First Half of 2020 Update
First Half of 2020 Update Revenue Adjusted EBITDA (and % Margin) Q1 Results Q2 Results Q1 Results Q2 Results $922 $869 $879 $119 $112 $106 $96 $642 17.5% 11.0% 12.1% 12.9% Q1 2019 Q1 2020 Q2 2019 Q2 2020 Q1 2019 Q1 2020 Q2 2019 Q2 2020 Growth: -- 1.2% -- (30.4%) -- 10.9% -- (5.8%) Commentary Stron
Slide 28: Long-Term Outlook
Long-Term Outlook Long-term organic revenue growth: 1% – 3% Underlying growth of the CPG industry and food inflation Historical ’08 – ’19 organic revenue CAGR of 4.0% Upside from whitespace with existing clients, new business wins and outsourcing trends Near-term expect to exceed baseline gr
Slide 29: Strategic and Financially Attractive Tuck-In Acquisition Strategy
Strategic and Financially Attractive Tuck-In Acquisition Strategy Philosophy Number of Acquisitions Per Year 13 13 11 10 9 9 9 6 5 3 Disciplined approach to M&A that has delivered consistent and attractive returns 28
Slide 30: Advantage Solutions Transaction Details
Advantage Solutions Transaction Details Section 4
Slide 31: Transaction Overview
Transaction Overview Enterprise value of $5.2bn compelling valuation at 10.1x 2021E Adj. EBITDA of $515mm and 10.9x 2021E Adj. EBITDA less CapEx of $475mm (CapEx of $40mm) Transaction proceeds used to reduce leverage – Resulting net debt of $1.9bn(1), or 3.7x LTM June Adj. EBITDA and expect to
Slide 32: Operating Benchmarking to Peers
Operating Benchmarking to Peers 6.0% 3.7 % 1-3% 2.6 % 3.0% 2.4 % 0.9 % Long Term 0.0% Advantage U.S. Median CPGs (Median) of Select Best-in-class Median ofBusiness Other Business Outsourcers Median of SelectMedian Info Services of Revenue (5) U.S. CPGs(1) Select Best-in-Class Other Business Select I
Slide 33: Valuation Benchmarking to Peers
Valuation Benchmarking to Peers At $10.00 per share value, Advantage is attractively valued relative to the median of all peer sets – A more attractive valuation is implied on an Adj. EBITDA less CapEx basis 30.0 x 22.1 x 20.0 x 16.3 x 18.5 x 10.1 x 12.2 x CY’21E 10.0 x Adj. 0.0 x EBITDA Advantage
Slide 34: Conclusion
Conclusion Section 5
Slide 35: In Conclusion…
In Conclusion… Advantage is an attractive asset for Conyers Park II Clear leader in the mission-critical sales and marketing industry – Better positioned versus competition today than it ever has been Robust financial profile resiliency across economic cycles and industry changes High qual
Slide 36: Appendix
Appendix
Slide 37: Peer Benchmarking
Peer Benchmarking Adjusted Enterprise Closing % of 52 Equity Adjusted Value Multiples Calendarized CY2021E CY2021 CY2021 Price Week Market Enterprise EBITDA P/E Multiples EBITDA EBITDA-Capex FCF Long Term Dividend Company 1-Sep-2020 High Cap ($bn) Value ($bn) 2020 2021 2020 2021 Margin Multiple Conv
Slide 38: Non-GAAP Reconciliation (1/2)
Non-GAAP Reconciliation (1/2) Adjusted EBITDA reconciliation for Q1 and Q2 results (for 2019 and 2020) 3-Months Ended 3-Months Ended March March June June 31, 2019 31, 2020 30, 2019 30, 2020 Net Income / (Loss) ($44) ($22) ($13) ($38) Income Tax Expense / (Benefit) 1 1 (2) (14) Interest Expense 61 5
Slide 39: Non-GAAP Reconciliation (2/2)
Non-GAAP Reconciliation (2/2) Adjusted EBITDA reconciliation on annual basis for 2007 – 2019 time period Fiscal Year Ended December 31, 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A Unaudited Unaudited Net Income / (Loss) $6 ($201) $21 ($35) ($25) $4 $35 ($99) $25 $31