Westrock Coffee Company · NASDAQ:WEST
Westrock Coffee — SPAC Merger (June 2022)
46 slides from Westrock Coffee's SPAC merger presentation, Jun 7, 2022
Slide 1: Westrock Coffee Investor Presentation
Westrock Coffee Investor Presentation June 7, 2022
Slide 2: Disclaimer
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
Slide 3: Today's Presenters
Today’s Presenters Westrock Coffee Riverview Acquisition Corp. SCOTT CHRIS BRAD FORD PLEDGER MARTIN Chief Executive Officer Chief Financial Chief Executive Officer & Co-Founder Officer & Chairman 3
Slide 4: Agenda
AGENDA 01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX 4
Slide 5: A Mission to Do Well by Doing Good
A MISSION TO DO WELL BY DOING GOOD We aim to be the world's most competitive and innovative provider of beverage solutions to the most distinguished brands in order to provide smallholder farmers and their families in developing countries the ability to advance their quality of life and economic sta
Slide 6: Westrock Coffee's History
2020 Westrock Coffee’s History Westrock Coffee publicly launches traceable technology platform – Farmer Direct Verified® Westrock Coffee acquires 2018 S&D Coffee & Tea, 2009 First digitally traceable founded in 1927, to expand blue-chip 2022 Westrock Coffee opens coffee container ships customer base
Slide 7: Westrock Coffee & Riverview Create a Market Leader
Westrock Coffee & Riverview Create a Market Leader ✓ Vertically integrated, ✓ One of the world’s ✓ Deep bench of directors with ✓ Leading integrated coffee, tea, sustainably focused coffee largest custom coffee and tea significant public company flavors, extracts, and company providing digitally man
Slide 8: We Operate our Business in Two Segments
We Operate our Business in Two Segments Beverage Solutions Sustainable Sourcing & Coffee & Tea Flavors, Extracts & Ingredients (FE&I) Traceability (SS&T) • Comprehensive product and service offering to • A full range of beverage concentrate and • We source from 35 different coffee and tea the retail
Slide 9: Westrock Coffee Company
Westrock Coffee Company Westrock Coffee Company is a leading North American private brand provider of custom coffee, tea, flavors, extracts, and ingredients to the retail, food service and restaurant, convenience store and travel center, non-commercial account, CPG, and hospitality industries. We su
Slide 10: Westrock Coffee By The Numbers
Westrock Coffee By The Numbers $960M $75M $123M 2022E Net Sales 2022E Adjusted EBITDA 2024E Adjusted EBITDA $721M $239M $70M $5M $118M $6M from from from from from from Beverage Solutions SS&T Beverage Solutions SS&T Beverage Solutions SS&T Coffee Supplier to U.S. #1 Restaurants(2) 1.5M Westrock Cof
Slide 11: Compelling Investment Highlights
Compelling Investment Highlights Proven Management Team Is The Largest Equity Owner Purpose Driven Mission Delivers Measurable Impact Proprietary, Digitally Traceable Technology Large & Growing Global Market Presents Significant Addressable Opportunity Unparalleled Customer Value Proposition Tenured
Slide 12: Experienced Leadership
Leadership Proven Management Team Is The Largest Equity Owner JOE SCOTT CHRIS ELIZABETH WILL KYLE SAM MATT BOB CJ ERIC FORD FORD PLEDGER MCLAUGHLIN FORD NEWKIRK FORD SMITH MCKINNEY DUVALL CHIN Chairman & Chief Executive Chief Financial EVP Group President EVP Product EVP Business EVP Supply Chain, C
Slide 13: Post-Closing Board of Directors
Post-Closing Board of Directors JOE FORD SCOTT FORD BRAD MARTIN JOSIE NATORI MARK EDMUNDS HUGH MCCOLL III PATRICK KRUCZEK LESLIE KEATING JEFF FOX TOYIN UMESIRI 13
Slide 14: Purpose Driven Mission Delivers Measurable Impact
Purpose Driven Mission Delivers Measurable CASE STUDY: RWANDA 2014 – 2018 Impact GIKOMERO COMMUNITY FARMER GROUP Westrock Coffee was founded on the belief that growth 250% is an inevitable byproduct of investments in infrastructure, farmer 200% development, supply chain, product innovation, 150% and
Slide 15: Proprietary, Digitally Traceable Technology
Proprietary, Digitally Traceable 01 | HARVEST Technology Farmer transaction (name, date, price) A fundamental pillar of Westrock Coffee 02 | EXPORT Westrock Coffee utilizes the IBM Food Trust® Coffee milling, exporting, blockchain platform, and other proprietary and ocean freight data technologies t
Slide 16: Accessing the Public Markets to Expedite Our Growth
Accessing the Public Markets to Expedite Our Growth 1. Capitalize on Consumer Shift to Cold Coffee Beverages 2. Expand Beverage Solutions business to Europe & APAC • Today, younger generations are drinking more coffee than their parents, but • We have deep and tenured relationships with a broad and
Slide 17: Large & Growing Global Market Presents Significant Addressable Opportunity
Large & Growing Global Market Presents Significant Addressable Opportunity (1) Global Coffee $318 billion wholesale global coffee and tea market 1 forecasted to grow at 6% CAGR $318B & Tea Market Size Younger coffee drinkers Millennial and Generation Z that prefer to drink cold / RTD coffee Generati
Slide 18: Compelling Customer Value Proposition
Compelling Customer Value Proposition Leading brands choose Westrock Coffee because it is uniquely positioned to meet their needs, while simultaneously driving a new standard for sustainably sourced products Innovation Traceable Technologies ✓ 25-person world class innovation team with branded ✓ Pro
Slide 19: Tenured, Flagship Customers with Global Operations
Tenured, Flagship Customers with Global Operations 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 aver
Slide 20: Two Macro Tailwinds Combined with New Retail Entrants & Capacity Shortages
Compelling Investment Opportunity: Two Macro Tailwinds Combined with New Retail Entrants & Capacity Shortages Consumer preferences shifting away from Hot Coffee and the lack of supply capacity are generating a unique opportunity for Westrock Coffee Shift in Consumer Preferences Competitive Dynamic 1
Slide 21: Flavors, Extracts, and Ingredients Business Poised for Dynamic Growth
Flavors, Extracts, and Ingredients Business Poised for Dynamic Growth… Total Foodservice Beverages poised for Consumers Switching from Regular Younger Generations have Higher High Growth(1) Brewed Coffee to Iced / Specialty Preference for Cold / RTD Coffee(2) (Growth rate 2018-2023E) Coffee(3) Gener
Slide 22: Due to Disruptive Product Innovation and Industry Shortages
…Due to Disruptive Product Innovation and Industry Shortages 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 Product Innovation RTD Coffee Unit Sales Process by Packaging
Slide 23: New FE&I Facility – Conway, AR
New FE&I Facility – Conway, AR In 2021, we purchased a 524k square foot manufacturing facility with the intent to build out the capacity and capabilities needed to meet our customer demand. The facility is currently in the engineering and design phase, and we are in active discussions with prospecti
Slide 24: Strong Financial Profile & Growth Trajectory
Strong Financial Profile & Growth Trajectory Net Sales Adjusted EBITDA(1) ($ in millions) ($ in millions) 21% CAGR(2) 38% CAGR(2) Beverage Solutions 10% SS&T $1,248 Adjusted ’21A-’24E EBITDA $123 $1,060 Margin 8% $299 CAGR 8% $960 $165 $124 45% FE&I 7% $88 $698 6% $75 $99 $551 $695 Coffee $649 15% $
Slide 25: Growth Strategy
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX 25
Slide 26: How We Plan to Grow
How We Plan to Grow 1 Expand Our 2 Expand Our 3 Geographic 4 Acquisitions Can be Used Product Offering Customer Base Expansion to Accelerate: with Existing and New 1 2 3 Customers We leverage superior Demonstrated ability to win new Current customers are Proven ability to execute and product develop
Slide 27: Expand Our Product Offering
1 Expand Our Product Offering Westrock Coffee 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 Bottles Ready to Drink Bag-in-Box (BIB) Cup Build
Slide 28: Expand Our Customer Base
2 Expand Our Customer Base Westrock Coffee is the sole coffee provider to more than 80% of its top 20 customers creating the opportunity to cross-sell FE&I products and to drive customer success(1) Existing customers provide opportunity to Westrock Coffee’s compelling customer Market participants va
Slide 29: Geographic Expansion
3 Geographic Expansion Global customers are calling for Westrock Coffee’s international expansion Current Markets Served USA Malaysia Canada South Korea Mexico Pakistan JAPAN Benin UK Singapore CANADA UK CHINA Accelerated Expansion Opportunity USA UK China EU Japan SOUTHEAST ASIA MENA Southeast Asia
Slide 30: M&A | Proven Acquisition Platform
4 M&A | Proven Acquisition Platform Management has a proven track record of successful M&A execution and integration Powerful Acquisition Platform Proven Integration Expertise Highly Accretive +10% Acquisitions Adjusted EBITDA margin growth Driven by cost discipline, YoY in 2021A in the Beverage man
Slide 31: Financial Overview
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX 31
Slide 32: Financial Summary
Financial Highlights: Financial Summary Projected Growth Rates CAGR From ’21A – ’24E(2) Single serve cup volumes growth and expansion of FE&I drive long-term Adjusted EBITDA growth and margin expansion Net Sales Net Sales (’20A – ’24E) ($ in millions) Adjusted EBITDA (’20A – ’24E)(1) ($ in millions)
Slide 33: First Quarter 2022 Results
Financial Highlights: First Quarter 2022 Results Growth Rates Year Over Year ($ in millions) Q1 2021 Q1 2022 YoY Growth Net Sales Net Sales Beverage Solutions $127.3 $148.4 16.6% Sustainable Sourcing & Traceability (1) Total Net Sales $28.1 $155.3 $38.1 $186.4 35.6% 20.0% 20% Consolidated Net Loss C
Slide 34: Historical & Projected Financials
Historical & Projected Financials ($ in millions) 2020A(2) 2021A 2022E 2023E 2024E Net Sales Beverage Solut ions $424.9 $551.0 $721.3 $813.8 $994.3 Sust ainable Sourcing & Traceabilit y (1) 125.9 147.1 239.1 246.0 253.4 Total Net Sales $550.8 $698.1 $960.4 $1,059.9 $1,247.7 Sales Growth Beverage Sol
Slide 35: Transaction and Valuation Benchmarking
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX 35
Slide 36: Transaction Overview
Transaction Overview • Riverview has proposed to enter into a business combination with Westrock Coffee, and, together with other investors, has committed to fund a $250mm common stock pipe at the closing of the transaction. • Pro forma enterprise value of ~$1,086mm (14.5x 2022E Adjusted EBITDA). Ex
Slide 37: Defining the Opportunity Set
Defining the Opportunity Set 1 Mission-driven, scaled specialty manufacturer in the massive and growing coffee, tea, and extracts market 2 Innovative, value-added beverage solutions provider for global blue-chip customer base 3 High growth platform (28% Adjusted EBITDA CAGR)(1) led by a world-class
Slide 38: Growth Benchmarking
Growth Benchmarking Revenue CAGR (2022E – 2024E) Value-Added Coffee & Tea Food & Beverage Ingredients 14% Median: 4.7% 30.4% Median: 5.3% 9.2% 5.5% 4.4% 6.2% 5.1% 4.2% 5.0% 3.8% 0.9% N/A Adjusted EBITDA CAGR (2022E – 2024E) Value-Added Coffee & Tea Food & Beverage Ingredients 28% Median: 6.4% 45.6%
Slide 39: Valuation Benchmarking
Valuation Benchmarking EV / 2022E Adjusted EBITDA Value-Added Coffee & Tea Food & Beverage Ingredients Median: 15.4x Median: 18.3x 24.6x 24.3x 18.8x 18.3x 20.1x 16.0x 17.5x 16.3x 14.5x 14.9x 12.0x 10.9x EV / 2023E Adjusted EBITDA Value-Added Coffee & Tea Food & Beverage Ingredients Median: 14.2x Med
Slide 40: Conclusion
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX 40
Slide 41: The Opportunity to Accelerate the Company's Growth Is Now
THE OPPORTUNITY TO ACCELERATE THE COMPANY’S GROWTH IS NOW Today, Westrock Coffee 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 ampl
Slide 42: Appendix
01 | COMPANY OVERVIEW 02 | GROWTH STRATEGY 03 | FINANCIAL OVERVIEW 04 | TRANSACTION AND VALUATION BENCHMARKING 05 | CONCLUSION 06 | APPENDIX 42
Slide 43: Financial Model Assumptions
Financial Model Assumptions (2) Financial Projections • 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 prep
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA Reconciliation(1)(2) ($ in millions) Consolidated Beverage Solutions SS&T 2020A (3) 2021A 2022E 2023E 2024E 2020A(3) 2021A 2022E 2023E 2024E 2020A(3) 2021A 2022E 2023E 2024E Net Income / (Loss) ($128.9) ($21.3) $23.8 $34.8 $56.9 ($129.4) ($24.4) $22.3 $33.1 $5
Slide 45: Non-GAAP Reconciliation – First Quarter Results
Non-GAAP Reconciliation – First Quarter Results Adjusted EBITDA Reconciliation(1)(2) ($ in millions) Consolidated Beverage Solutions SS&T 1Q 22 1Q 21 1Q 22 1Q 21 1Q 22 1Q 21 Net Income/(Loss) ($4.7) ($6.1) ($5.2) ($7.1) $0.5 $1.0 Interest Expense 8.0 7.4 7.3 6.8 0.7 0.6 Income Tax (Benefit)/Expense
Slide 46: 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