Westrock Coffee Company · NASDAQ:WEST
Westrock Coffee — SPAC Merger (April 2022)
42 slides from Westrock Coffee's SPAC merger presentation, Apr 4, 2022
Slide 1: Westrock Coffee Investor Presentation April 2022
Westrock CoffeeInvestor Presentation April 2022
Slide 2: General disclaimer
GENERAL This presentation (“Presentation”) is being furnished for informational purposes only in connection with the announced proposed business combination transaction between Westrock Coffee Holdings, LLC (“Westrock” or the “Company”) and Riverview Acquisition Corp. (“Riverview”). This Presentatio
Slide 3: Today's Presenters
Today’s Presenters CHRIS PLEDGER Chief Financial Officer Westrock Coffee Riverview Acquisition Corp. BRADMARTIN Chief Executive Officer& Chairman rbm venture company Saks, Inc. - Wikipedia SCOTT FORD Chief Executive Officer & Co-Founder Agaciro Fund Arvest Bank Finalizes Bear State Bank Acquisition,
Slide 4: Agenda
AGENDA 4 01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX
Slide 5: A Mission to Do Well by Doing Good
A MISSION TO DO WELL BY DOING GOOD We aim tobe the world's most competitive and innovative provider of beverage solutions to the most distinguished brands in order to providesmallholder farmers and their families in developing countries the ability to advance their quality of life and economic statu
Slide 6: Westrock Coffee's History
Westrock Coffee’s History 2009 Westrock Coffee opens operations in Rwanda 2010 Westrock Coffee Roasting opens in Little Rock, AR 2018 First digitally traceable coffee container ships 2016 Westrock Coffee establishes transparent supply chain from Latin America 2014 Westrock Coffee acquires Falcon Cof
Slide 7: Westrock Coffee & Riverview Create a Market Leader
Westrock Coffee & Riverview Create a Market Leader Vertically integrated, sustainably focused coffee company providing digitally traceable coffee to the retail and branded hospitality industries. One of the world’s largest custom coffee and suppliers to restaurants and convenience stores in the U.S.
Slide 8: Uniquely Situated Product and Service Offering
Uniquely Situated Product and Service Offering Beverage Solutions Sustainable Sourcing & Traceability (SS&T) Coffee & Tea Flavors, Extracts & Ingredients(FE&I) •Comprehensive product and serviceoffering to the retail, C-Store, travel centers, foodservice, non-commercial, and CPG industries. •Coffee
Slide 9: Differentiated by mission and the way it goes to market
Westrock Coffee is differentiated not only by its mission but also in the way it goes to market Westrock Coffee Company While Westrock Coffee helps customers manage their commodity price risk, customers alone bear their own exposure. IMPORT EXPORT ROAST PACKAGE DELIVER HARVEST Westrock Coffee suppli
Slide 10: Westrock Coffee By The Numbers
Westrock Coffee By The Numbers (1)WCC Management. (2)Westrock Coffee is the top provider of coffee to restaurant chains in the U.S. with at least 100 outlets and that currently sell coffee, based on total share of outlets serviced // Global Data FoodserviceIntelligence Center, Technomic Ignite Menu
Slide 11: Compelling Investment Highlights
Compelling Investment Highlights
Slide 12: Proven Management Team Is The Largest Equity Owner
Proven Management Team Is The Largest Equity Owner ERIC CHIN Chief Information Officer BOB MCKINNEY Chief Legal Officer PLEDGER Chief Financial Officer SCOTT FORD Chief Executive Officer & Co-founder CJ DUVALL Chief Human Resource Officer Experience WILL FORD Group President Of Operations Leadership
Slide 13: Purpose Driven Mission Delivers Measurable Impact
Westrock Coffee was founded on the belief that growth is an inevitable byproduct of investments in infrastructure, farmer development, supply chain, product innovation, and technological advancement. This belief is expressed through the way we interact with our community, the environment, and the fa
Slide 14: Proprietary, Digitally Traceable Technology
Proprietary, Digitally Traceable Technology A fundamental pillar of WestrockCoffee Westrock Coffee utilizes the IBM Food Trust®blockchain platform, and other proprietary technologies to link anonymous, disjointed supply chains into transparent, connected systems. Our platform gives our customers vis
Slide 15: Large & Growing Global Market Presents Significant Addressable Opportunity
Large & Growing Global Market Presents Significant Addressable Opportunity $318B Global Coffee & Tea Market Size Millennial and Generation Z Demographic(2)131M Younger coffee drinkers that prefer to drink cold / RTD coffee compared to hot coffee(3)(4) 51% Cold brew menu penetration 5-yr CAGR trend(5
Slide 16: Unparalleled Customer Value Proposition
.25-person world class innovation team with branded consumer packaged goods and FE&I experience in Consumer Insights, R&D and Engineering. .Customer-centric approach that begins with specific consumer insights and product design that delivers enhanced profitability across the value chain. Global Sca
Slide 17: Brand Behind the Brands
As the “Brand Behind the Brands”we supply the largest and most recognizable names across the retail, restaurant, convenience store, travel center, non-commercial and CPG channels with your favorite coffee, tea, and extract-based beverages. The average tenure for our top 20 customers is 19+ years.(1)
Slide 18: Two Macro Tailwinds, New Retail Entrants & Capacity Shortages
Compelling Investment Opportunity: Two Macro Tailwinds Combined with New Retail Entrants & Capacity Shortages (1)Mintel Group, Coffee and RTD Coffee US 2021; LightSpeed Consumer Data May 2021.
Slide 19: Generational Shift from Hot Coffee to Cold Brew/RTD
>30% Of Millennials Prefer Cold Brew/RTD(1) Generational Shift from Hot Coffee to Cold Brew/RTD Shifts in consumer behavior accelerated the growth of new categories (ex. Ghost kitchens, RTD preferences) New Entrants Retailers Sprinting to Become Relevant in New Trends Restaurants, convenience stores
Slide 20: Customer value proposition and product innovation process
.Product implementation .Beverage menu strategy deployment Westrock Coffee’s customer value proposition enables the company to develop successful beverage solutions roadmaps, to provide product innovation, and to grow for its customers …Due to Disruptive Product Innovation and Industry Shortages Ado
Slide 21: New FE&I Facility – Conway, AR
New FE&I Facility –Conway, AR 800 million Single Serve Cups 10 million Gallons of Juice BIBs 4 million Gallons of Coffee BIBs 140 million Glass Bottles 700 million Cans 3 million Gallons of Bulk 100 million Pounds of Coffee Roasting Potential Capacity After Buildout(1) (1)Westrock Coffee is in the e
Slide 22: Strong Financial Profile & Growth Trajectory
21% CAGR(2) Net Sales Adjusted EBITDA(1) ($ in millions) Strong Financial Profile & Growth Trajectory ($ in millions) 38% CAGR(2) (1)See Appendix for Adjusted EBITDA GAAP Reconciliation. (2)CAGR represents compounded annual growth ratefor years 2021A-2024E. (3)Excludes intercompany sales. (4)Coffee
Slide 23: Agenda
23 01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX
Slide 24: Growth Initiatives
Growth Initiatives Expand Our Customer Base Demonstrated ability to win new customers through insights-driven, product development-led sales cycle New Customer Pipeline 100+ Targets $1.2B+ Sales Acquisitions Can be Used to Accelerate: 50+ Targets $5B+ Sales Proven ability to execute and integrate ac
Slide 25: Expand Our Product Offering
Expand Our Product Offering WestrockCoffee has demonstrated its capability to create innovative products for consumers’ changing preferences and deliver to its customers in whatever packaging format they need Liquid Coffee & Beverage Concentrates Roasted Coffee Tea Tote Drum Bag-in-Box (BIB) Retail
Slide 26: Expand Our Customer Base
Expand Our Customer Base WestrockCoffee’s compelling customer value proposition and innovation process leads to long customer tenures(2) Existing customers provide opportunity to cross-sell FE&I products and expand internationally(2) Market participants value WestrockCoffee’s innovation and manufact
Slide 27: Geographic Expansion
Global customers are calling for Westrock Coffee’s international expansion Geographic Expansion Current Markets Served USA Canada Mexico Benin Singapore Malaysia South Korea Pakistan UK Accelerated Expansion Opportunity UK EU MENA China Japan Southeast Asia UK USA MEXICO CANADA MENA JAPAN EU CHINA S
Slide 28: M&A | Proven Acquisition Platform
M&A | Proven Acquisition Platform 1996 2007 AT START 0.6MILLION Wirelesssubscribers $0.4BILLION Inwirelessrevenues $5.6BILLION MarketCapforAlltelCorporation 19% Compounded annual return for shareholders vs. ~9% for S&P 500 5X Increase in # of states served #1 Industry leading Adjusted EBITDA margins
Slide 29: Agenda
29 01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX
Slide 30: Financial Summary
Financial Summary ($ in millions) Adjusted EBITDA (’20A –’24E)(1) ($ in millions) Net Sales (’20A –’24E) 21% CAGR Single serve cup volumes growth and expansion of FE&I drive long-term Adjusted EBITDA growth and margin expansion 38% CAGR (4) (3) Consolidated 38% Beverage Solutions 42% Adjusted EBITDA
Slide 31: Historical & Projected Financials
Historical & Projected Financials ($ in millions) 2020A (2) 2021A 2022E 2023E 2024E Revenues, net Beverage Solutions Sustainable Sourcing & Traceability (1) Total Revenues, net Revenue Growth Beverage Solutions Sustainable Sourcing & Traceability Total Revenue Growth Adjusted EBITDA Beverage Solutio
Slide 32: Agenda
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX
Slide 33: Transaction Overview
Pro Forma Valuation(1) Sources & Uses(1) Transaction Overview •Riverview has proposed to enter into a business combination with Westrock Coffee. •Pro forma enterprise value of ~$1,086mm (14.5x 2022E Adjusted EBITDA). Existing shareholders rollover shares in Westrock expected to be valued at ~$369mm
Slide 34: Defining the Opportunity Set
Defining the Opportunity Set .Coffee & tea providers with value-added capabilities .Product portfolio tailored to meet consumer trends & preferences .Scaled players with global reach .Strong customer following & engagement .Integrated specialty manufacturers of value-added ingredients .Diversified r
Slide 35: Growth Benchmarking
Growth Benchmarking Revenue CAGR (2022E –2024E) JDE Peet's successfully prices inaugural EUR 2 billion We welcome Treatt as a SAI Platform member — SAI Platform Adjusted EBITDA CAGR (2022E –2024E) We welcome Treatt as a SAI Platform member — SAI Platform Nestle Logo, history, meaning, symbol, PN
Slide 36: Valuation Benchmarking
Valuation Benchmarking EV / 2022E Adjusted EBITDA EV / 2023E Adjusted EBITDA We welcome Treatt as a SAI Platform member — SAI Platform We welcome Treatt as a SAI Platform member — SAI Platform Nestle Logo, history, meaning, symbol, PNG Nestle Logo, history, meaning, symbol, PNG Home | Dutch Bros Hom
Slide 37: Agenda
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX
Slide 38: The Opportunity to Accelerate the Company's Growth Is Now
Today, WestrockCoffee is uniquely positioned to sustainably meet global blue-chip company coffee, tea, and extract demand, while improving the lives of farmers around the world. Now is the company’s opportunity to scale its business and amplify its economic,s ocial, and environmental impact. THE OPP
Slide 39: Agenda
39 01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX
Slide 40: Financial Model Assumptions
Financial Model Assumptions (2) •Included in this presentation are the Company’s estimates of its financial performance for fiscal years 2022 through 2024 (the “Financial Projections”), based on information known as of the date of this presentation. These projections were prepared by the Company’s m
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA Reconciliation(1)(2) ($ in millions) (1)See Non-GAAP Financial Measures on slide 42 in the Appendix. (2)Amounts may not foot due to rounding. Figures based on Company’s Credit Agreement methodology. (3)Westrock Coffee acquired S&D in February 2020. As such, 20
Slide 42: Non-GAAP Financial Measures
Non-GAAP Financial Measures Description of Financial Measures We refer to EBITDA and Adjusted EBITDA in our analysis of our results of operations, which are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). While we believe that