Rimini Street, Inc. · NASDAQ:RMNI
Rimini Street — GP Investments Acquisition — SPAC Merger (June 2016)
50 slides from Rimini Street's SPAC merger presentation, Jun 13, 2016
Slide 1: World Kitchen Group, Inc. Investor Presentation
aay > 4 <a2)) World Kitchen. Group, Inc. KITCHEN Investor Presentation June 2016
Slide 2: Disclaimer
Disclaimer Investor Presentation This communication is for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to the proposed. business combination between WI Holding Company inc. WI") and GP Investments Acquisition Corp. ("GPIA
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont'd) “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potentia", seem”, “seek”, “continue”, “future”, “will, “expect”, “outlook” or other similar words, phrases or expressions. These forward-looking statements include statements regarding our industry, future events, the pro
Slide 4: Today's Presenters
Today's Presenters Antonio Bonchristiano CEO at GPIAC and GP Investments Stephen Earhart ‘SVP and Chief Financia! Officer at World Kitchen Danilo Gamboa Incoming Chief Executive Officer at World Kitchen; ‘Managing Director at GP Investments Kris Malkoski President, Global Business & Chief Commercial
Slide 5: Introduction
Introduction World Kitchen Overview Investment Highlights Financial Summary Appendix
Slide 6: I. Introduction
Slide 7: Transaction Overview
Transaction Overview | On April 18, 2016, GP Investments Acquisition Corp. (NASDAQ: “GPIAU"; “GPIA"; GPIAW”) entered into a definitive agreement to 1g Company, Inc. (“WI”) acquire WKI Hol World Kitchen manufactures and markets homeware products in the U.S. and internationally under well-recognized b
Slide 8: GP Investments History of Success
GP Investments History of Success Founded in 1993 with investments in over 50 companies, GP Investments is a leading alternative investments firm with over 20 equity capital market executions. Select Transaction Examples Initial Investment Date . hen Investment (et) Overview Return Highlights 1 Lead
Slide 9: GP's Investment Philosophy
GP’s Investment Philosophy Value creation through active management and operationally-oriented approach Significant ownership structures that ensure influence and implementation of strategic change Accelerated growth through revenue and margin expansion and M&A Cote Principles Management Tools Attra
Slide 10: Thesis for Investment in World Kitchen
Thesis for Investment in World Kitchen 10 Multiple Value Creation Levers to Drive Growth Branded Consumer , Industry-Leading Products lala feastepait Innovation Company Vv vw 4 Iconic Brands with conic Brands wi ment : Leading Market : Proprietary ; Emerging Market Share in Key Technology ; Exposure
Slide 11: II. World Kitchen Overview
Il. World Kitchen O
Slide 12: Snapshot of World Kitchen
Snapshot of World Kitchen Diverse Portfolio of Key Leading Brands visions FY 2015 Net Sales by Geography ‘Key Financials % $672 ‘$680 on vo «North America 8% \ “sac PT TSE EI ee ees saan on a Se Total Net Sales: USSE72ram FY 2013 FY 2014 FY 2015 FY 2016E er rons |
Slide 13: Key Brand Highlights
8 Key Brand Highlights Brands Brand Highlights Launetsa970 Sold in over $0 counties #1 brandin dinnerware marketin US, Korea, Canada and singapore Corete* is estimated tobe in 1/3" of all ‘American homes Proprietary manufacturing process; Vitel” glass tediologyis unmatched the world InAPAC,Corelle*
Slide 14: Key Brand Highlights (continued)
japware VISIONS: 4 Key Brand Highlights Brands Brand Highlights Launch 1999 Leading plasticand gas storage brand with innovative id technology Dramatic increase in brand awareness, grown from 14% to 41° since aequistion in December 2010 = Comprehensive productine consists of innovative and easy-to-u
Slide 15: U.S. Homewares — Stable and Large Category
U.S. Homewares — Stable and Large Category U.S. Homewares Market ( (ssn btn) 118 118 (Goole \ (Bionerware 1 VISIONS ace Masmamee 7i/GGq clean ge Culsinart TN "i, Jom Box os mina | H ' ! 98 B cua Diy, > Peat | ‘ ! Bakeware Ve 5 i i | GS mm GB ee pedeok! | GE iat gD | H H ' it H H eisenessey Phe oS Pr
Slide 16: Leading Approach to Integrated Marketing
Leading Approach to Integrated Marketing Redefining how the consumer interacts with the World Kitchen Brand, with a shifting focus from “talking at” the consumer to establishing a more contemporary relationship-better understanding their interests. ees = or = ibotta ce tos 2 oe ee ae | — ae EA a uii
Slide 17: Track Record of Innovation
Track Record of Innovation North America dtd has 1 mm Wi: # Snapware
Slide 18: III. Investment Highlights
Slide 19: Key Investment Highlights
Key Investment Highlights WORLD KITCHEN c+) (ca) Continued Organic Growth (6s) Platform Optimization (6c) ea : i
Slide 20: Leading Market Share and Iconic Global Brands
© Leading Market Share and Iconic Global Brands Brands % 2015 Net Sales Product Category Current Market Share No.1 in Korea Hconcu | Dinnerware ‘No.1 in U.S. a a ‘No.1 in Canada No.1 in Singapore Glass Bakeware No.L in US. Pyrex: 24% Glass Food Storage Nout in Canada in Glass Bakeware Glass Prepware
Slide 21: Diverse, Global Footprint Across Products and Channels
® Diverse, Global Footprint Across Products and Channels e | Net Sales by Geography (2015) North American Channel Mix (2015) Latin ‘America/EMEA 3% Eve Asia Pacife 7 28% py rN\ cs North America Cee 68% 10% outeystoms os Total Uss672mM 'Net Sales by Brand (2015) Asia Pacific Channel Mix (2015) ‘Spoci
Slide 22: Emerging Markets Platform Highlights Large Untapped Opportunity
Emerging Markets Platform Highlights Large Untapped Opportunity in Other High-Growth Markets China Net Sates Underlying Demographics Support Untapped High Growth Opportunities (asa) through Continued Geographic and Product Expansion Initiatives 11h ACR ‘6 APAC 20158 Net Sales Ed bald Country Viable
Slide 23: Proprietary Technology
® Proprietary Technology Proprietary Technology Vitrelle® Glass Process | World Kitchen houses proprietary glass-making know- how and processes Only manufacturer of unique 3-layer Vitrelle® glass used in Corelle Vitrelle® is a lightweight yet stronger and more durable glass product relative to compe
Slide 24: Track Record of Innovation
© Track Record of Innovation ——— wpe oa 2 of Case Studies on Innovation . Y Premium price point and TSE) nterchaneabi i ton lass and plastic cos) Fe 5 oe * Beaihough crn (0) atone ota ser cing om produtlnnad nthe Syne 24 Development History (Since 2011) oe Co conn gyn pee sie tee pectin reils | Trds
Slide 25: Solid Financial Performance with Consistent Growth
(6) Solid Financial Performance with Consistent Growth © WS in mitions) | Acqustionot EEE | | inDecember2010.—— | case enue aon = 2015: 30%! en Ea cron ‘$617 baad $803 26 =" basil P=] 3 43% 23 23% a 2008 2009 2010 2011 2012 2013 2016 2018 (SS in mions) % Margin $53 _ = | om | 2008 2008 2010 26
Slide 26: Three Pillar Strategy for Growth in Sales and Profitability
» & © Three Pillar Strategy for Growth in Sales and Profitability e| oD = Online "Optimized Store Network |= New Channels, Categories L. = © OEE: Lean Manufacturing / Revitalize Brands Improved Select Rates = Lean G&A Sector Consolidation Opportunity = Complementary Sales | Cost Synergies = Advanced
Slide 27: Continued Organic Growth
Continued Organic Growth e Econmarcentat ses nine 30 33 a7 a Online or lS 20124 ex 2014a 20184 e = Pursue omni channel opportunities ee iyi > Ex Development \} | | AE wang ner | Enhance presence in underrepresented channels such as Expand Channels > foodservice and high-end specialty stores (> US$2
Slide 28: Platform Optimization
Platform Optimization Identified specific areas of improvement and developed initiatives that will yield $10+ million in EBITDA improvement — majority of which will be achieved in the next 12 — 18 months with remainder achieved within 2 — 3 years. Implement OEE/Select Rate Improvement: From “68% to
Slide 29: WKI Has Category White Space in a Highly Fragmented Industry
WKI Has Category White Space in a Highly Fragmented Industry Housewares Market by Category Keon ont & Ormereee Saagets Underpenetrated categories for WI; Categories in which epoch —— sp einen) i "8 Coa pusulag oreo ‘arm of otal Peseta expansion to capitalize within these categories tory 459% of oat
Slide 30: IV. Financial Summary
Slide 31: Historical Financial Summary
Historical Financial Summary 2015 CAGR: 28 02s $672 3644 ‘sot head $91 ‘$617 ‘990. na $89 | a | “ hha 13.8% 13.6% stn a me nm = - er = so ws (1) Dowrnet nude 8A aoested wth WI zoe ete at
Slide 32: Q1 2016 Update
Q1 2016 Update Observations um lusSin mon) Qi 2016 12015 12016 Net Sales: Decreased due to timing of ‘new product pipeline fill at Costco ($4.7mm), FX (CAD, AUD, KRW, CNY - $3.4mm), and non-repeating loyalty Net Sales $133.2 sua $660.8 propain Wietieo Gross Profit: Decreased due to lower Gross Profi
Slide 33: Summary of Key Drivers For WKI
Summary of Key Drivers For WKI = Growth in e-commerce New product launches (e.g. Corelle Market Steet line) Distribution gains Revenue Product, channel and geographic expansion in China Growing beyond Corelle in Korea | Growth in emerging markets | Corningplant improvements | Product assortment (NPD
Slide 34: Top Line and Gross Margin Outlook
Top Line and Gross Margin Outlook 2016E 20178 g 5 Sales 460m 2-4% Growth € < re £ ; 25-75bps 5 Grose Margin ch) improvement 2 2 Sales $198m 5-7% Growth 8 é Ss - 25-75bps 3 3 Gross Margin 36% improverent a Sales $22m 4-6% Growth = fr ~ € - 25-75bps. & Gross Margin 29% paeial § 24 Note: Regional gross
Slide 35: Guidance for FY 2016 and FY 2017
Guidance for FY 2016 and FY 2017 Net Sales Gross Profit Adjusted EBITDA Adjusted Net Income 36 2016E 2017E $680m $715m $201m $215m 29.6% 30.1% $78m $84m 11.5% 11.8% $13-18m $18-24m
Slide 36: FY 2018 and Beyond
36 FY 2018 and Beyond 1 Top line growth of 2-3%... In line with GDP § Gross margin leveraged with fixed cost and geographic mix @ A&P at 3.5% - 3.75% of net sales ™@ SG&A improving as % of net sales
Slide 37: Financial Policy
Financial Policy Target Leverage Acquisition Policy jidend Policy a7 Sustained leverage of 3 ~ 4x Preserve adequate liqui ity with sufficiently sized ABL Will make acquisitions selectively to add capabilities / products / categories Will finance acquisitions responsibly with cash flow and appropriat
Slide 38: Transaction Structure
Transaction Structure ‘Transaction Summary Sources & Uses (4 $10/s ) Total Sources, $578 Total Uses. 5578. © GP will be the largest single shareholder, with ~28% ownership PF Capitalization Post Merger Shares and Ownership @ po a ene om um oe Fn aaa a: Firm Value Build Wore x Share Price: $10.00 me
Slide 39: Valuation Metrics Comparables
Valuation Metrics Comparables “) 2016E EV/EBITDA a — see —— 1.2: 125% i ag i LU TL [| a 5 E Henottey evel” heen nobia user 2017E EV/EBITDA 13% 11.0% 10.5 10.3 ae = : [| | LC a He tote Z8AEVEROAr bine ads 3.2 Mlesan afervardbas oe natal | Bor GED reall” Broverare nobia @vio0er
Slide 40: Key Investment Highlights
Key Investment Highlights WORLD .) KITCHEN (ca) Continued Organic Growth (6s) Platform Optimization & cea 40
Slide 41: V. Appendix
V. Appendix
Slide 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation (SS in mitions) FY 2013 Fy 2014 FY 2015 TIM at 2016 [Net heome (Loss) (8122) (9755) st16 $60 Interest Expense - Net 182 207 196 190 Income Tax Expense (Benefit) (08) 200 36 64 Dea, 419 418 73 365 eBITDA $473 $67.0 $724 $067 ‘Management Adjustments ‘Stock Based Compensation 15
Slide 43: Seasonality
Seasonality [ss nmiions FY 2012 at a2 4H Qs a4 2H Net Sales soir BE% 21% 40.8% 287% 325% 59.2% Adj. EBITDA $63 24% 7.0% 29.4% 24.2% 463% 70.6% ss emuions FY 2013, at az 4H a3 as 2H Net Sales $630 29% 210% 40.9% 26.2% 329% 59.1% Adj. EBITDA 74 43% 19% 32.2% 25.0% 427% 67.8% ss emuions FY 2014 at az 4
Slide 44: Track Record of Modest Leverage
Track Record of Modest Leverage Net Debt / Adj. EBITDA {heen mca | v 33x 3x 3.0 2% 20% 23x 2010 20118 20128 2013 20148 zorsa®) PE LTMosos2016 44
Slide 45: Net Working Capital Seasonality
Net Working Capital Seasonality Net Working Capital Seasonality WC usage typically within $40mm 200 80 60 a0 120 00 20 6 0 20 101320133013. 40S | 1014 = td = gtd) aats | 1015 201s, 0S NS (1) Yoke ecm Racabies veto —Accos arable 48
Slide 46: Historical Capital Expenditures
Historical Capital Expenditures (USS in mitons) $25 $25 33 $3 s19 $14 $14 $8 $9 2012 20134 20148 201A ‘=Tank Rebuilds Maintenance = Growth 46
Slide 47: Proprietary Manufacturing Facilities
Proprietary Manufacturing Facilities Coming, AN ie Johor tru, Malaysia Chatea. PA Mra Lera,cA Charleroi, PA Mira Loma, CA Johor Bahru, Malaysia | Bu = Fallvomeds2acepntsie, —— Fulyowned2 axe pln ste fsabshedin1994andacnuted—— fsabshedin1989andarited Seton sre ot ay prcosedn 998 ‘noma ior purcaseain
Slide 48: Optimized Sourcing Model
Optimized Sourcing Model ‘Manufactured vs. Sourced Product Mix Sourced Product Sourced Product Manufactured Manufactured Product Product Benefits of Strategic Sourcing Model Initiatives to Achieve 6 eters Strategic relationships with sourcing partners s proadersoureforinnovetion Y Joint manutacturin
Slide 49: North America Category Outlook
49 North America Category Outlook Growth in housewares tracks GDP and the industry should benefit from positive tailwinds from trends such as urbanization, economic growth and increased disposable income Online retailingis the fastest growing channel havingincreased at 29% from 2010 -2014 and is pro
Slide 50: Company Timeline
Company Timeline GP Investments Acquisition Corp. to acquire World Kitchen 2016 AeautedSnapware e 2015 RIN Celebrate Pyrex 100th Year (XO sold to Helen of Troy for $275m e- 2006 Te Entered China Wir fle chapters. e Entered china - e™ Bie 2 glass technology (Vitrelle) oo ayer, 2 lass technology Vr me