Tim Hortons — Merger or Acquisition (August 2014)
30 slides from Tim Hortons's merger presentation, Aug 26, 2014
Slide 1: Creating a Global QSR Leader
Exhibit 99.1 Tim Hortons® BURGER Creating August 26th, a KING Global 2014QSR Leader
Slide 2: Forward-looking statements
This regarding (2) delays, the by for have 1of Burger cautionary expectations the combined presentation affected year and(1) King (3) ended expectations and company. statements expectations or for includes could Tim December theHortons. effects These inand whether forward-looking the for 31, risk fu
Slide 3: Participants
Marc Caira Participants President Alexandre Executive Daniel Cynthia 2Chief Executive Financial Schwartz J.& Chairman Devine Behring Chief Officer, Officer, Executive of the Tim Burger Board, Hortons Officer, King Burger Tim Inc. Worldwide Hortons King Worldwide Inc. Inc. Inc.
Slide 4: The Companies at a Glance
Companies Tim Canada’s Undisputed +$6bn BURGER #2 Iconic Present Market 1) 32) As Substantially Fast Hortons® of60 inCap: Food in August system Leading year nearly KING at QSR C$9 $10 Hamburger aold Glance all 22, sales 100 billion(2) leader billion, QSR brand of 2014 countries these with Chain in u
Slide 5: Transaction Agenda
Transaction Agenda Tim Burger Transformational 4Financing Hortons King Highlights Highlights Overview Opportunity and Timetable
Slide 6: Transaction Overview
Transaction Consideration Offer Premium 3G Closing Subject Value Leading Attractive Potential Structure Tim Franchisee 5NewCapital Hortons® Hortons company price Creation to expected growth to of free regulatory relationships will of unlock Overview 39% and C$89.32 and cash to BURGER own and Burger
Slide 7: Creating a New Global QSR Leader
Creating New Catalyzing Opportunity Tim Preserving Independently Continuing Actively Generating 6Significant Hortons public a Global 3rd support Rich Tim premium Substantial Commitment company to Largest growth managed apply Hortons Heritages both QSRfor Global Burger will companies’ Value Leader br
Slide 8: Transaction Agenda
Transaction Agenda Tim Burger Transformational 7Financing Hortons King Highlights Highlights Overview Opportunity and Timetable
Slide 9: Tim Hortons Overview
Canada’s 42% Strong 3,630 Fully-Franchised 99.5% 5Vertically Significant Of Deep Founded Leader Signature 8Tim distribution, 4,546 Hortons Hortons® traffic Canadian Canadian franchised Customer inin units, Leading Fast-Growing offerings Integrated International share 1964 Overview 2only Roots units
Slide 10: Canada's Beloved Brand
AnSource: Beloved #1 #6 Canada Ipsos Most #61 Worldwide APCO Canada’s Total % All STARBUCKS Tim 10% McDonald’s® 5% Canadian 77% 76% 65% 75% 91) Share Unparalleled Other Hortons® Total Cold Brewed Hot Trusted Caffeinated Influential Beloved Reid Insight and of Tea Specialty Favourite Caffeinated QSR
Slide 11: Tim Hortons Strategic Vision
Tim Hortons® Lead, Must-Win Build Grow, Continue 10 Hortons scalable, Defend Learn leadership to Battle build & Strategic &profitable Expand Grow onin success Vision Canada business in will through GCC Continue in core while dayand pursuing partpriority expansion, new markets international menuwhile
Slide 12: Track Record of Growth
TrackHortons® Tim Store +4.2% Canada 2013A 2012A 2011A 2010A 4,417 4,240 4,009 3,750 11 Q2’14 Q1’14 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2% 1% 3% 4% 6% 8% 5% Count Record CAGR Same of Store Consistent Sales %Growth
Slide 13: Tim Hortons Global Footprint
Strong Tim 3,588 5Canada Fleet 859 1U.S. 38 International Operating Source: Note: 12distribution manufacturing Middle stores U.S. stores Hortons® of Excludes Canada stores Canadian THI branded Units across in East in 2013 the 11 centers Units 11 (19%) Units 255 states UAE, U.S. Middle trucks facilit
Slide 14: Transaction Agenda
Transaction Agenda Tim Burger Transformational Financing 13 Hortons King Highlights Highlights Overview Opportunity and Timetable
Slide 15: Burger King Overview
Burger #2 $16bn+ Global ~14,000 Fully-Franchised QSR Accelerating Among Revitalized Menu, Rich Founded Stable, Actively BURGER 14 Fast Heritage industry-leading Marketing, Brand Reliable King Food fastest-growing in restaurants managed inKING sales, 1954 US Overview International Hamburger Presence
Slide 16: Burger King Strategy and Results
Burger BURGER International Results Initiatives Strategy Accelerate Capitalize Increased Expanded U.S. Increase Marketing Image 3Menu Operations On Franchised Transformed Completed Best-in-class 15consecutive track & King’s Canada average toNRG brand on KING Communications NRG growth Business refran
Slide 17: Growing Burger King Global Footprint
Growing BURGER Burger Brazil 3X 102 China 5x 38 Russia 17x 2010 10 1) 16 Master Store Store Store 2013 JV JV King Count Global Count Franchise Count KING has190 Global 317 Brand 174 quadrupled Footprint Joint Venture the pace of its international growth over the past four years with its proven MFJV(
Slide 18: Transaction Agenda
Transaction Agenda Tim Burger Transformational Financing 17 Hortons King Highlights Highlights Overview Opportunity and Timetable
Slide 19: Creating a New Global QSR Leader
Creating New Catalyzing Opportunity Preserving Independently Continuing Actively Generating Significant 18 public a Global 3rd support Rich Tim premium Substantial Commitment company to Largest managed apply Hortons Heritages both QSRfor Global Burger will companies’ Value Leader brands Tim Untapped
Slide 20: Creating the Third Largest QSR Company
Creating The ~$23bn Companies Fully-franchised Franchise Real Extensive Highly-efficient Distribution Global Company McDonalds Yum! SUBWAY BURGER Wendy’s dunkin’ Domino’s Tim Chick-fil-A 1) 2) 19 Source: transaction Hortons Estate #2System #7 in3rd $43.0(1) #6 will Rank real Pizza KING system #4 Mor
Slide 21: Catalyzing Tim Hortons International Growth
Catalyzing By Burger Leveraging Net 5.6% Today Yum! Note: Units 1) 20 Master leveraging Unit 5.4% /2013 BURGER Wendy’s 2012 King Growth Franchise Tim 3.2% Net Burger Total has Burger New Dunkin Hortons KING successfully 2.4% %Units King’s Joint International King’s 1.6% Domino’s brands Untapped Vent
Slide 22: Creating a New Global Multi-Brand Platform
Creating We New Global Burger Miami, Tim Oakville, Revenue International U.S. Canada Brand Franchisee Restaurant Corporate Opportunity 21 plan Hortons 20% Company and Headquarters King Florida 67% to Aby Ontario to operational images Global, manage relationships Geography to manage 13% apply to be t
Slide 23: Continuing Commitment to Communities and Causes
Continuing Both Tim TIM COMMUNITY OUR HORIZONS CORPORATE Scholarships lazos EDUCATING TWO BURGER RELIEF EMERGENCY EDUCATION 22 Hortons® HORTON HORTONS companies LOCAL PILLARS KING Commitment TIM inREGIONAL THE GIVING North CHILDREN’S INITIATIVES: are MAKING SCHOLARS McLAMORE FAMILY HORTONS WORLD’S d
Slide 24: Commitment to Canada and Governance
Commitment The 3Governance New No Employees There Investment Transaction Tim Community 23ofplans New new Hortons company willcompany’s to Company be and will change will Headquarters franchisee will to no will Growth have Canada accelerate facilitate changes maintain be franchisee creates 11 more he
Slide 25: Generating Substantial Value
Generating The Value 39% Substantial Long-Term New Fast-growing, Significant Strong Opportunity Revenue: Purchasing: Costs: 24 New premium Company for Enhance cash Tim Company Accelerate cash potential Substantial premium Shareholder flow Leverage forHortons highly-profitable towill global Significa
Slide 26: Strategic Partner: 3G Capital
Strategic 3G Family Long-term Focus Deep LOJAS World’s Second Largest Year Current 25 Capital of understanding on investors Investment: largest AMERICANS non-food ketchup Market Largest Partner business approach and fast its Cap: Brewer producer with who retailer affiliates operations food 1983 of t
Slide 27: Transaction Agenda
Transaction Agenda Tim Burger Transformational Financing 26 Hortons King Highlights Highlights Overview Opportunity and Timetable
Slide 28: Financing: Sources and Uses
3G Capital, Other Substantial Sources USD Preferred 9.0 Debt $0.6 Cash New 3.0 2.9 Uses $15.5 Amount Value $89.32 $81.57 $10.9 Tim 1.0 Burger $11.9 Total 3.6 27 Hortons Common of billions Sources Uses Burger per King Funds &Investment ofShare Uses $15.5 Funds free Burger Debt TEV shareholders Equity
Slide 29: Subject to Timetable
Subject oTimetable Tim Specific Anti-trust Transaction 28Tim Investment Hortons Hortons to undertakings and customary isand Canada competition expected stockholder Burger Act closing will toKing approval close be law approval conditions, given are approvals late committed with 2014respect regulatory
Slide 30: Creating a Global QSR Leader
Tim Horton Creating a Global BurgerQSR kingLeader