Lowe's Companies, Inc. · NYSE:LOW
Lowe's Companies — Merger or Acquisition (February 2016)
12 slides from Lowe's Companies's merger presentation, Feb 5, 2016
Slide 1: Lowe's to acquire RONA
“IMPROVING Lowe’s to acquire RONA Creates Canada’s leading home improvement retailer February 3, 2016 No Offer or Solicitation to purchase or to sell shares of RONA.
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Powe’ balsa This it , q *should’, “would”, ‘plan’, "potential, “intend”, “anticipate”, “believe”, “estimate” or “expect” and other word: statements atl tions, goals, forecast ti statements includ Transacti Lowe's or RONA's plans, objecti the Transact nd pert fl ctatic i ta
Slide 3: Compelling Strategic Rationale
COMPELLING STRATEGIC RATIONALE ges "i885 ine Accelerates Lowe’s growth in Canada through the addition of RONA’s attractive business and real estate portfolio Provides entry into Quebec, almost 25% of the Canadian home improvement market’, where Lowe’s has no presence Fortifies a strong market presen
Slide 4: Identified Opportunities
IDENTIFIED OPPORTUNITIES CS “RGvinc * Over C$1 billion of opportunities to further increase revenue and operating profitability in Canada. These include: . ing customer t by utilizing Lowe’s strengths as a leading omni-channel home improvement company and drawing on its customer experience design ca
Slide 5: Attractive Canadian HI Market
ATTRACTIVE CANADIAN HI MARKET CS “vine * Currently estimated at over C$45 billion * Stable market with forecasted CAGR of 3.9% from 2014 to 2018 * High level of home ownership and well-developed distribution infrastructure Canada HI Market Size (CAD billions) and Annual Growtht Market Size Distribut
Slide 6: Background: RONA
BACKGROUND: RONA ORS "vine * One of Canada’s largest retailers and distributors of hardware, building materials, home renovation and gardening products, with locations across Canada * Operates a multi-format, multi-bannered portfolio of stores: Retail- 236 corporate owned stores, using three differe
Slide 7: Background: Lowe's Canada
BACKGROUND: LOWE’S CANADA Ces “eRSvine Began growing organically in 2007 and now operates 42 stores Tailored store format and offering for the Canadian market, and optimized pricing and promotional strategy Launched e-commerce site in 2012, providing customers across Canada access to nearly 200,000
Slide 8: Transaction Summary
TRANSACTION SUMMARY CS “vine Structure and Consideration Compelling Financial Impact Approvals and Closing Lowe’s to acquire all issued and outstanding common and preferred shares of RONA for C$24.00 and C$20.00 in cash per share, respectively Total transaction value of C$3.2 billion (US$2.3 billion
Slide 9: Appendix
tes ihERvinc APPENDIX
Slide 10: Non-GAAP Measures
NON-GAAP MEASURES CS “vine Management is using non-GAAP financial measures in this document because it considers them to be important supplemental measures of the Company’s performance. Management also believes that these non-GAAP financial measures provide additional insight for analysts and invest
Slide 11: Non-GAAP Measures
NON-GAAP MEASURES CRS "vine EBIT Margin (Operating Margin) We define EBIT Margin as earnings before interest and taxes as a percentage of sales. Lowe’s believes that EBIT Margin is a useful measure to describe the Company’s operating profit. Lease-Adjusted Debt We define Lease-Adjusted Debt as short
Slide 12: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Powe’ balsa TIFFANY MASON Senior Vice President, Corporate Finance and Treasurer 704.758.2033 tiffany.I.mason@lowes.com HEATHER HOLLANDER Director, Investor Relations and Strategic Assessment 704.758.3579 heather.hollander@lowes.com Investor Relations Website www.Lowes.co
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