Acco Brands Corporation · NYSE:ACCO
Acco Brands — Merger or Acquisition (November 2020)
23 slides from Acco Brands's merger presentation, Nov 11, 2020
Slide 1: PowerA Acquisition Investor Presentation
PowerA Acquisition Investor Presentation November 11, 2020
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, operating strategies and similar matters, including without limitation, statements about the benef
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. We use our non-GAAP financial measures both to explain our results to stockholders and the investment community and in the internal evaluation and management of our businesses. We believe our non-GAAP measures provid
Slide 4: Executing Our Strategy
Executing Our Strategy Expanding our • Acquisitions of Esselte, Pelikan Artline, GOBA, Foroni global footprint • Esselte: Leitz® staplers and laminators, Rapid® DIYtools Growing our portfolio • Pelikan Artline: Artline® pens and markers of consumer • GOBA: Barrilito® school and craftproducts brands
Slide 5: Recent Acquisitions
Recent Acquisitions PELIKAN ARTLINE ESSELTE GOBA INTERNACIONAL FORONI (2016) (2017) (2018) (2019) Leading distributor of Leading European Premier marketer and seller Premier manufacturer, academic, consumer and manufacturer and marketer of school and craft marketer and seller of business products in
Slide 6: Acquisitions Are Core to Our Growth Strategy
Acquisitions Are Core to Our Growth Strategy Strategic Focus Areas Categories/ • Categories with proven growth potential 1. Geographies with • Geographies with demographic tailwinds Opportunity for Growth • More focus on consumer-oriented brands and categories • Acquired brands are market share lead
Slide 7: PowerA Strategic Rationale
PowerA Strategic Rationale Acquisition Criteria & Rationale Growth: Brands: Channels: Categories/Geographies with Complementary Brand Attributes Channel Diversity Opportunity for Growth • The Company has had strong • Recognizable brands (licensed and • Increases our presence in faster organic growth
Slide 8: PowerA at a Glance
PowerA at a Glance Leading provider of third-party controllers and power solutions in North America Founded HQ Products Sold 1984 Woodinville, WA 75% U.S. 2019 Revenue 2019 Adj. EBITDA Double-digit $166M $34M sales growth 8 ACCO Brands Investor Presentation
Slide 9: PowerA at a Glance
PowerA at a Glance TRUSTED PARTNER PARTNER OF CHOICE FOR LEADING GAMING PLATFORM PROVIDERS MARKET LEADER #1 PROVIDER OF THIRD-PARTY CONTROLLERS AND POWER SOLUTIONS IN NORTH AMERICA CONNECTING GAMERS TO GAMES PROVIDES ENABLING TECHNOLOGY FOR THE 2.9 BILLION WORLD’S FASTEST GROWING ENTERTAINMENT MEDIU
Slide 10: Trusted Licensing Partner for Gaming Platforms, Publishers and Game Titles
Trusted Licensing Partner for Gaming Platforms, Publishers and Game Titles CONSOLE PLATFORMS PUBLISHERS GAME TITLES 10 ACCO Brands Investor Presentation
Slide 11: Growth Opportunities
Growth Opportunities Proven track record of increasing market share across all core product categories due to best-in-class products, speed to market, aligned incentives with partners and utilization of data-driven consumer and market insights Launch of next generation console platforms (Xbox Se
Slide 12: Well positioned to Capitalize on Expansion of Cloud Gaming
Well positioned to Capitalize on Expansion of Cloud Gaming Cloud gaming will require controllers and power solutions that enable a consistent gaming experience across all gaming modalities (PC, console, mobile) Cloud Gaming Services Will Controllers and Power Solutions Will PowerA Has First Mover Ad
Slide 13: Product Overview/Relationships
Product Overview/Relationships 20 YEARS 13 YEARS 13 YEARS CONSOLES SELECT PRODUCTS CONSOLES SELECT PRODUCTS CONSOLES SELECT PRODUCTS Wii Wireless Controller Xbox 360 PlayStation 3 Wired Controller Wired Controller Switch Wireless Controller PlayStation 4 Switch Charging FUSION Wireless Dock Xbox One
Slide 14: Many Customer Synergies with ACCO Brands
Many Customer Synergies with ACCO Brands Global Distribution Through Network of Leading Retail and eCommerce Partners REGION KEY RETAIL AND ECOMMERCE PARTNERS NORTH AMERICA EMEA POWERA HAS LONG-TERM, WELL-ESTABLISHED RELATIONSHIPS WITH KEY RETAILERS 14 ACCO Brands Investor Presentation
Slide 15: Acquisition Terms
Acquisition Terms 15
Slide 16: Transaction Details
Transaction Details Total upfront consideration of $340M plus additional earnout of $55M based on achieving one- and two-year sales and profit growth objectives Accretive to earnings and normalized cash flow for full year 2021 Subject to customary closing conditions, including contract consent
Slide 17: Pro Forma Capital Structure
Pro Forma Capital Structure Pro Forma capital structure as of December 31, 2020 No maturities until 2024 ($ in millions) Facility Balance1 Interest Rate Methodology Rate $600M multicurrency revolver 352 LIBOR + 250 bps, 50 bps unused 3.75% USD Term Loan A 93 U.S. LIBOR3 + 250 bps 3.70% EUR Term
Slide 18: Executing On Capital Allocation Strategy
Executing On Capital Allocation Strategy Priorities • Expect to generate more than $100M in FCF in 2020 (at least $120M cash from operations minus < $20M capex) Capital • Near-term focus on funding dividend and reducing debt Allocation • Long-term strategy remains to deploy FCF to fund dividends, re
Slide 19: Outlook
Outlook Due to the uncertainty associated with the global economic disruption from the COVID-19 pandemic and related government and business measures, the company withdrew its annual guidance for sales and adjusted earnings per share on April 13, 2020. The following outlook is for 4Q. 4Q 2020 Outl
Slide 20: PowerA Financials
PowerA Financials Sales Adjusted EBITDA (in Millions) (in Millions) $250 $250 $200* $200 $200 $166 $150 $150 $129 $100 $100 $71 $56 $50* $50 $50 $34 $25 $7 $12 $0 $0 69% 2016 2017 2018 2019 2020 E 2016 2017 2018 2019 2020 E *2020 sales and adjusted EBITDA are estimates Historic sales and adjusted EB
Slide 21: ACCO Brands Corporation Q&A
ACCO Brands Corporation Q&A 21 ACCO Brands Investor Presentation
Slide 22: Invest With Us as We Transform Our Company
Invest With Us as We Transform Our Company Focused on ~75% of net sales Leading branded Scale, strategies and increasing sales from brands that supplier of consumer capabilities to concentration to faster occupy the #1 and #2 and business significantly grow growing, consumer positions within their p
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