Ranpak Holdings Corp · NYSE:PACK
Ranpak — One Madison — SPAC Merger (December 2018)
38 slides from Ranpak's SPAC merger presentation, Dec 13, 2018
Slide 1: Investor Presentation
0 Investor Presentation
Slide 2: Disclaimer
1 Disclaimer CAUTION ABOUT FORWARD - LOOKING STATEMENTS The information in this press release may contain “forward - looking statements” within the meaning of Section 27A of the Securiti es Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as ame
Slide 3: Table of contents
2 Table of contents Introduction Ranpak Business Overview Growth Opportunities Financial and Valuation Overview 4 3 2 1 Appendix
Slide 4: Introduction
The Paper Packaging Experts ™ 3 Introduction
Slide 5: Situation overview
4 Situation overview One Madison Corp. (NYSE: OMAD) is a special purpose acquisition company formed in 2018 to acquire an operating business that produces stable revenues and robust free cash flow, with pricing power and significant opportunities for growth Ranpak Corporation (“Ranpak”) is the leadi
Slide 6: Snapshot of Ranpak
5 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 90,000 machines using Ranpak consumables exclusively Global business with strong presence in U.S. and Eu
Slide 7: Why One Madison likes Ranpak
6 Why One Madison likes Ranpak Large market opportunity $7bn addressable global market with growth driven by e - Commerce Significant growth potential, particularly in wrapping, thermal, and APAC Ranpak is a platform for additional industry - leading eco - friendly solutions (developed organic
Slide 8: Transaction overview
7 Transaction overview Creation of the only publicly traded provider of 100% fiber - based solutions for product protection for e - Commerce and industrial supply chains Pro forma enterprise value of $1.1 billion Compelling valuation of 11.5x ’19E Adj. EBITDA Omar Asali to serve as Executive C
Slide 9: Transaction structure
Public investors 43% Anchor investors 28% Private placement 21% Sponsor promote 8% 8 Transaction structure (1) Includes 30 million public shares, 15 million forward purchase shares, 14.2 million shares from common stock private placemen t, 9 million promote shares and 0.8 million shares related to t
Slide 10: One Madison Team
9 One Madison Team One Madison has the industry and functional expertise to drive growth at Ranpak Managing Director, Blue Strat Advisors Previous roles − Chief Information Officer for the National Basketball Association (NBA) − Senior Vice President, Application Development for Viacom, MTVN, Sh
Slide 11: One Madison Team
Most recently at Drivetrain LLC, a provider of independent fiduciary services for companies. Previous roles − Investment Counsel at Harbinger Capital Partners − Weil, Gotshal & Manges LLP, Corporate Department 10 One Madison Team One Madison has the proven M&A capability to enhance growth in Ran
Slide 12: Ranpak Business Overview
The Paper Packaging Experts ™ 11 Ranpak Business Overview
Slide 13: Attractive and diverse business fundamentals
12 Attractive and diverse business fundamentals 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 technology Razor / razorblade model drives high retentio
Slide 14: Fast growing, high return and resilient worldwide leader in sustainable packaging
13 Fast growing, high return and resilient worldwide leader in sustainable systems - based packaging solutions Compelling financial attributes – high growth and high margins (1) FCF Conversion defined as Adj. EBITDA - Maintenance Capex / Adj. EBITDA. >29,500 Broad Customer Base 15 Months Payback Per
Slide 15: Strong growth driven by machine placement
24 24 27 31 36 45 50 52 54 57 60 64 70 76 82 90 97 104 02A 03A 04A 05A 06A 07A 08A 09A 10A 11A 12A 13A 14A 15A 16A 17A 18E 19E 14 Strong growth driven by machine placement $85 $89 $100 $112 $128 $149 $158 $144 $156 $176 $176 $188 $216 $218 $233 $246 $267 $289 02A 03A 04A 05A 06A 07A 08A 09A 10A 11A
Slide 16: Clear market leader in sustainable, system-based solutions
+ Other additional regional players 50% + 15 Clear market leader in sustainable, system - based solutions for e - Commerce and industrial supply chains Source: Management Estimates, Freedonia . (1) Represents North America and Europe systems based segment. Paper “in - the - box” packaging (1) Global
Slide 17: Full suite of solutions for global commerce
Note: User Fees make up remaining 5% portion of sales. Installed base as of December 2017. Unaudited sales figures gross of 1% c ustomer payment discount. 16 Full suite of solutions for global commerce Wrapping (6% of sales) Cushioning (41% of sales) e3neo (3% of sales) Void - Fill (45% of sales)
Slide 18: Continuous innovation leading to patent-protected systems
Void Fill 8% Cushioning 92% Void Fill 45% Cushioning 41% Wrapping 6% Automation 3% User Fees 5% Patent Protection 17 Continuous innovation leading to high - quality, patent - protected systems WrapPak PS WrapPak FS Geami HV Wrapping Geami Exbox 22 current patents 62 pending applications Consistent n
Slide 19: Diversified and growing end-markets
% of market ~40% ~5% ~5% ~10% ~2% % of Ranpak sales ~35% ~10% ~8% ~7% ~6% Est growth rate Low teens GDP plus B2C B2B 18 Diversified and growing end - markets Source: Freedonia and US Census. Underlying Market e - Commerce Automotive auto aftermarket IT / electronics Machinery Home goods Integrated
Slide 20: Razor / razorblade model supports long-term relationships
Customers exclusively use Ranpak’s consumables High retention / renewal rates (90%+) with customers due to reliability and high quality Reliable provider of fulfillment service 19 Razor / razorblade model supports long - term relationships and favorable economics Machines provided at low cos
Slide 21: Exclusive distribution network enables sales reach
E - Commerce Auto OE & aftermarket IT / electronics Machinery Home goods Revenue breakdown by relationship length (1) Number of distributor - serviced accounts by size (1) 20 Exclusive distribution network enables sales reach to thousands of small, fragmented end - users while maintaining an asset -
Slide 22: Experienced and proven management team
21 Experienced and proven management team Note: Recruitment in progress for CFO. (1) Jean - Yves Sia founded e3neo and has been with Ranpak since 2017 acquisition. Mark Borseth President & CEO 3 Years Antonio Grassotti Managing Director APAC 2 Years Jean - Yves Sia Managing Director e3neo 1 Year (1)
Slide 23: Growth Opportunities
The Paper Packaging Experts ™ 22 Growth Opportunities
Slide 24: Compelling building blocks for revenue and Adj. EBITDA growth
23 Compelling building blocks for revenue and Adj. EBITDA growth 3% 7% - 11%+ 2% - 3% 1% - 2% 1% - 3% GDP growth Ranpak base growth e - Commerce Automation (e3neo ) Other initiatives and M&A Preferred protection solution − Sustainability − Cost Wrapping (Geami) Geographic expansion − Asia
Slide 25: Compelling e-Commerce and automation tailwinds
e 3neo acquisition Acquired in March 2017 Expands automation capabilities and machine product offering − High demand in e - Commerce Allows Ranpak to cross - sell and penetrate new customers − Now better positioned to capitalize on e - Commerce tailwinds Offers critical solutions for custome
Slide 26: Fiber is the preferred solution for environmental sustainability
25 Fiber is the preferred solution for environmental sustainability … Ranpak’s fiber - based solution is winning in the marketplace Source: Company management, industry research. Fiber Airbags Foam Bubble wrap Loose fill (peanuts) Main application Cushioning Void - fill Wrapping Void - fill
Slide 27: Priority growth opportunities: APAC
Focus on areas with: higher labor costs , internet penetration, IP protection, industrial growth Aggressively pursue growth in China and India, especially related to e - Commerce Leverage relationships with existing multi - national customers Partner with local distributors and end use customers to
Slide 28: Other growth opportunities - One Madison-led initiatives
27 Other growth opportunities - One Madison - led initiatives Ranpak is an attractive platform and brand to grow beyond its current three core applications Massive opportunity in growing grocery delivery / Click & Collect Growth of online Pharmacy, meal kits Cold chain / Thermal Areas of Focus
Slide 29: Financial Overview
The Paper Packaging Experts ™ 28 Financial Overview
Slide 30: Financial summary
Capex (2) Free cash flow (3) % Growth (constant currency) - 3% 7% 2% 9% 29 Financial summary Source: Company management. Figures shown for historical periods derived from GAAP financial statements. (1) Based on constant currency at € / $ 1.15. 2015 to 2017 results are pro forma for the e3neo acquisi
Slide 31: Ranpak is a best-in-class asset with superior financial metrics
30 Ranpak is a best - in - class asset with superior financial metrics Sales growth Adj. EBITDA margin FCF margin (1) (1%) 2% 3% 3% 4% 5% 5% 5% 5% 6% 6% 8% 10% 8% Ball ITW Sealed Air Nordson Rockwell Automation IDEX Graco Kuehne + Nagel CH Robinson CCL Expeditors Aptar Middleby Ranpak 16% 27% 18% 28
Slide 32: Ranpak valuation in perspective
31 Ranpak valuation in perspective Source: FactSet , market data as of 12/5/2018 . Sales Growth and Valuation in Perspective EV / EBITDA 2019E Sales Growth 2018E - 2019E FV / 2019E EBITDA Valuation gap Industrial automation peers Packaging peers Logistics peers Average 13.3x Average 11.2x Average 13
Slide 33: Recurring revenue from consumables makes Ranpak recession resistant
32 Recurring revenue from consumables makes Ranpak recession resistant Source: Company management. Note: Based on constant currency at € / $ 1.15. Figures based on internal company financial statements (1) Unbleached Kraft Paper 30lb, $ per Ton. (2) Free Cash Flow calculated as Adj. EBITDA – Total C
Slide 34: Investment highlights
33 Investment highlights (1) FCF Conversion defined as Adj. EBITDA - Maintenance Capex / Adj. EBITDA. x Long - term revenue growth – 7.3% 2015A to 2019E CAGR x e - Commerce led growth – 30%+ e - Commerce exposure x Industry - leading EBITDA margin – 33% 2018E Adjusted EBITDA Margin x High cash flow
Slide 35: Appendix
The Paper Packaging Experts ™ 34 Appendix
Slide 36: Key financial reconciliation
35 Key financial reconciliation Gross to net revenue $000 FY15 FY16 FY17 Reported net revenue $210,982 $224,708 $ 244,092 Pro forma e3neo 3,159 4,087 68 Currency adjustment 3,556 4,399 2,119 Pro forma net revenue $217,697 $233,194 $ 246,239 Pro forma Adjusted EBITDA $000 FY15 FY16 FY17 Net Loss ($69
Slide 37: Consolidated statements of comprehensive loss
36 Consolidated statements of comprehensive loss $000 FY15 FY16 FY17 Net sales $210,982 $224,708 $244,092 Cost of sales 96,876 102,782 112,559 Gross profit $114,106 $121,926 $131,533 Operating expenses 156,819 159,245 165,738 Operating income (loss) ($42,713) ($37,319) ($34,205) Other (income)/ expe
Slide 38: Consolidated balance sheets
37 Consolidated balance sheets $000 FY 15 FY 16 FY 17 Cash and cash equivalents $6,293 $5,322 $8,635 Receivable, net 19,029 20,119 29,436 Inventory, net 8,166 7,066 12,378 Prepaid expenses and other current assets 4,786 6,418 5,944 Total current assets $38,274 $38,925 $56,393 Total property, plant,