Betterware De Mexico, S.a.p.i. De C.v. · NYSE:BWMX
Betterware De Mexico, S.a.p.i. De C.v — Betterware de Mexico — SPAC Merger (November 2019)
31 slides from Betterware De Mexico, S.a.p.i. De C.v's SPAC merger presentation, Nov 18, 2019
Slide 1: Investor Presentation, November 2019
3 ACQUISITION CORP. Bétterware: Investor Presentation November 2019 Strictly Confidential
Slide 2: Disclaimers and Other Important Information
. . — ° Disclaimer rata Béttérware ACQUISITION CORP. Disclaimers and Other Important Information This presentation (this “Presentation”)is for Informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combinatio
Slide 3: Today's Presenters
Today’s Presenters —_— Béttéerware’ ACQUISITION CORP. a a | Martin Werner Andres Campos Dp ACQUISITION CORP. . CEO and Chairman of DD3 Acquisition Corp. . Prior to DD3, Martin Werner served as: = Partner at Goldman Sachs (2006-2016); Co- Head of Investment Banking for LatAm = Managing Director at Go
Slide 4: Transaction Summary
a Transaction Summary iatiile| Bétterware’ ACQUISITION CORP. Experienced Teams Combined 3 Bétterware: ACQUISITION CORP. = Over 40 years of combined experience in the financial sector = Management team with over 30 years of experience in the = Extensive network of privileged relationships and proven
Slide 5: Target Embodies DDMX's Investment Thesis and Meets Original Criteria
Target Embodies DDMX’s Investment Thesis and Meets Original Criteria Rane on ————————————OOOOOOOOOOOOOOOOOOOOOOOOOOO—OOOOOOOOOOOOOOOOOOOOOOOOOO—O—erereeeeeeeeeree Bétterware: Betterware is a fast growing, mid-cap company with solid fundamentals and significant upside potential to materialize in the
Slide 6: Betterware Executive Summary
. a. @ Betterware Executive Summary eer Béttéerware ACQUISITION CORP. Overview Key Financial Metrics (USS Millions) * — Mission Net Company Sales! and Sales Force (in 000’s) ‘Net Company Sales = To be the go-to company for home CAGRs organization solutions in Mexico and 543, 343 443 529 2015-18 Lati
Slide 7: Key Investment Highlights
Key Investment Highlights ral Bétterware: ACQUISITION CORP. | Constantly innovated and unique product portfolio Efficient sales model supports a growing customer base Best-in-class logistics and supply chain platform 1 aetna ene intone dna 6 Planned organic expansion and several additional opportuni
Slide 8: Attractive Direct-to-Consumer Selling Sector
Bétterware: 1 | Attractive Direct-to-Consumer Selling Sector : ACQUISITION CORP. Overview = Mexico is the 7‘ largest direct-to-consumer market in the world and the 2 in Latin America with ~US$6bn in 2018 = Betterware’s model is tailored to Mexico’s unique geographic, demographic and economic dynamic
Slide 9: Unique and Innovative Product Portfolio
Bétterware’ 2 | Unique and Innovative Product Portfolio ACQUISITION CORP. Overview Net Company Sales by Category = Eight different categories are offered in the product of Total Net Sales, as of 2016) Home portfolio, all focused in the home organization Kitchen Promotionals Solutions Bathrsom segmen
Slide 10: Sales Force Model
Sales Force Model Overview —_— Béttéerware’ ACQUISITION CORP. Two Tier Sales Model Betterware’s sales force is divided in two groups, Distributors and Associates Sales force is incentivized by: i) discounts on products price; and, ii) earning Betterware Points through sales & recruiting. Betterware
Slide 11: Supply Chain & Logistics
Bétterware: “| Supply Chain & Logistics ACQUISITION CORP. Optimized Process Manufacturing = Betterware’s products are designed and branded by the Company, but manufactured by 200+ third party factories certified under Betterware’s quality standards = 89% of its products are manufactured in China and
Slide 12: Unequal Business Intelligence Unit
. . . — @ 5 | Unequal Business Intelligence Unit mad Béttéerware ACQUISITION CORP. Best-in-class Technological Tools Clear Strategy Product Intelligence ht Monitoring . Well-mapped sales force locations and . Extensive product analysis to track LJ Proprietary live performance _ tracking penetration
Slide 13: Current Penetration and Expansion Strategy
6 | Current Penetration and Expansion Strategy ral Bétterware ACQUISITION CORP. 2019-2022 Growth Roadmap Mexico’s Geographic Focus? . Ly i i ' a Well-mapped execution plan focused on new and _ under. Seamert s | acess: | 42™*S | cates share| AGEB’S ' Homes penetrated neighborhoods Share Coverage®| P
Slide 14: Multiple Additional Growth Sources
Wa] Jean Multiple Additional Growth Sources OW Digital Platform - E-commerce © sevice fe Productivity Bétterware: ACQUISITION CORP. . New App launching in 4Q-2019 7 Clients are directed to the nearest distributor Main Features: = Automatic order process = Cash or credit — = Avoid cannibalization of
Slide 15: Key Executives & Directors
Key Executives & Directors El mm & Luis Campos — Chairman of Betterware de Mexico Prior to Betterware, Luis Campos served as: Chairman of Tupperware Americas (1994-1999); Chairman of Sara Lee — House of Fuller Mexico (1991-1993); Chairman of Hasbro Mexico (1984-1990) Andres Campos — CEO & Board Memb
Slide 16: Financial Overview
Bétterware: ACQUISITION CORP. Financial Overview
Slide 17: Financial Overview
Financial Overview Distributors and Associates Bétterware: ACQUISITION CORP. Retail Sales and Net Company Sales (in 000s) - 16% 529 443 _ STs 113 162 mT 01 225 gg 30 2015 2016 2017 2018 lor 2020P 2021P 2022P 17 ptt 20 1H18 1H19 MDistributors Ml Associates Gross Margin and EBITDA Margin? Retail Sales
Slide 18: Financial Overview (Cont'd)
Financial Overview (Cont’d) Bétterware: ACQUISITION CORP. Strong Balance Sheet and Cash Generation =" Capex requirements are low and approximately 50% of annual capex is deployed toward technology infrastructure. In 2019 and 2020, the company expects to invest ~USS20mm in the construction of its new
Slide 19: Attractive Free Cash Flow Generation
Attractive Free Cash Flow Generation Detailed Cash Conversion Bétterware: ACQUISITION CORP. Comments (USS in millions) 2018 = 2019P 2020P Net Company Sales $125 $161 $196 (-) Costs and SG&A (93) (118) (144) EBITDA 32 43 52 @v) Other Expense (1) (2) (2) QW Tex (9) (a4) (a4) @u Change in Working Capit
Slide 20: Historical Financial Statements
Historical Financial Statements Summary Income Statement Bétterware: ACQUISITION CORP. Summary Balance Sheet Income Statement (US$ mm) 2016A 2017A 2018A 1H2018 1H2019™m™Balance Sheet (USS mm) 2016A___2017A__2018A___1H2018_1H2019) Assets Retail Sales $108.2 $146.3 $233.8] $104.4 $149.4 Cash and Equiv
Slide 21: Company Updates and Recent Developments
Bétterware: ACQUISITION CORP. Company Updates and Recent Developments
Slide 22: Digital Platform — Web App
Digital Platform — Web App rata Bétterware: ACQUISITION CORP. Current Status and Main Objectives = In October 2019, Betterware launched its B2C web app platform in the state of 1 Pilot Test Chihuahua, Mexico = E-commerce platform is an additional selling channel and important tool which will: \ ° At
Slide 23: New Campus Development
. — New Campus Development — Service 1D/D/3| Béttérware Overview and Highlights Operational Benefits = Betterware has commenced with the development of its new +73,000 sqm, USS25mm campus, and expects to reach a 20% completion rate by the end of 2019 and finish by the end of 2020 Elimination of prod
Slide 24: Additional Developments - Casa Betterware & International Expansion
Additional Developments - Casa Betterware & International Expansion AEOSTONO Bétterware’ Casa Betterware — Mexico City = La Casa Betterware in Mexico City opened its doors during the third quarter of 2019 in Paseo de la Reforma, the city’s main commercial and financial corridor, which seeks to: " Of
Slide 25: Transaction Summary
Bétterware: ACQUISITION CORP. Transaction Summary
Slide 26: Transaction Summary
. a. @ Transaction Summary eer Bétterware ACQUISITION CORP. = Enterprise value of ~US$366mm (transaction implied multiple of 7.0x and 5.9x 2020P and 2021P EBITDA, respectively) Transaction highlights = Current Betterware shareholders expected to remain ~70% owners of the combined company, while curr
Slide 27: Key Transaction Metrics
Key Transaction Metrics Key Transaction Terms Bétterware: ACQUISITION CORP. Transaction Use of Proceeds = Transaction EV/2020P EBITDA multiple of 7.0x = Current shareholders to continue operating and owning ~70%1 of the company = Issuance of 26.7mm shares; proceeds estimated to be 50% primary and 50
Slide 28: Comparables — EV/EBITDA Multiples
Comparables — EV/EBITDA Multiples raised Béttérware’ ACQUISITION CORP. ee EV/2020P EBITDA & EV/2021P EBITDA [J] 2020 sia Margin Direct Selling | [27% |! [16% | Li | [16% | [9% ] [16%] [15%] [19% ] US Retailers Mexican Retailers [47%] [12%] [asx | Te Ge Les% |] [Laa% ] [14% |] [16% | ' ' | i ‘ 1 ' 1
Slide 29: Comparables — Key Metrics
Comparables — Key Metrics rated Béttérware: ACQUISITION CORP. EV/2020P EBITDA vs 2020P EBITDA Margin EV/2020P EBITDA vs ‘18-’21P EBITDA Growth 30% cesee 30% ere 5 ss , eortee, 5% loa 1 2% a sBeétterware: 20% { Bétterware: 20% - we-ee 15% Sellen” ° e 15% e $e fe ee 10% - # ion e 5% e ° e g e e s ow e
Slide 30: Sponsor Overview
Sponsor Overview rated Bétterware: ACQUISITION CORP. DD3 Capital Partners is a Mexico City based company founded in 2016 by a group of professionals with unparalleled financial expertise “The firm distinguishes itself by providing holistic investment advice, access to exclusive investment opportunit
Slide 31: For further information, please reach out
Bétterware: ACQUISITION CORP. For further information, please reach and access: contact@dd3.mx http://ir.dd3.mx/