Primo Brands Corporation · NYSE:PRMB
Primo Brands — JP Morgan Opportunities Forum 2024
32 slides from Primo Brands's conference presentation, Nov 14, 2024
Slide 1: A Leading North American Branded Beverage Company
A Leading North American Branded Beverage Company November 2024
Slide 2: Cautionary Statements
Cautionary Statements Disclaimer Safe Harbor Statement This presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities legislation, including Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchan
Slide 3: Today's Agenda
Today’s Agenda 01 Introducing Primo Brands 02 Investment Highlights 03 Financial Update
Slide 4: Primo Brands Executive Officers
Primo Brands Executive Officers Robbert Rietbroek David Hass Robert Austin Chief Executive Officer Chief Financial Officer Chief Operating Officer Jason Ausher Marni Morgan Poe Hih Song Kim Chief Accounting Officer General Counsel & Corporate Secretary Chief Administrative Officer & Assistant Corpor
Slide 5: The Primo Brands Board of Directors
The Primo Brands Board of Directors Robbert Rietbroek C. Dean Metropoulos Kurtis Barker Britta Bomhard Susan E. Cates Non-Executive Chairman Sustainability Committee Audit Committee (Chair) Michael J. Cramer Eric Foss Jerry Fowden Tony Lee Billy D. Prim Compensation Committee (Chair), Compensation C
Slide 6: Introducing Primo Brands
A PRIMO ‘BRANDS! Introducing Primo Brands
Slide 7: Primo Brands: A Leading North American Branded Beverage Company
Primo Brands: A Leading North American Branded Beverage Company Primo Brands Overview (LTM 9/30/24)(1) $10Bn $14Bn Market Enterprise Capitalization(2) Value(2) NYSE: PRMB #1 $6.7Bn $1.5Bn / 23% $700MM+ Player in Retail Combined Combined Adj. EBITDA / Combined Adj. Branded Water(3) Net Revenue Margin
Slide 8: Our Scaled Portfolio of Iconic Brands
Our Scaled Portfolio of Iconic Brands Nationwide Presence, Regional Heritage Brands with $1Bn+ = in annual sales Nationwide Brands Premium Brands Est. 1871 Est. 1872 Since 1871 Since 1872 Since 1998 Since 2005 Since 2002 Since Spring 1845 Brands Est. 1845 Est. 2002 Est. 1905 Est. 1894 Est. 1873 Est.
Slide 9: Our Brand Reach is Amplified by Our Scaled National Platform and Route-to-Market Strength
Our Brand Reach is Amplified by Our Scaled National Platform and Route-to-Market Strength Key Statistics 13 Core Brands 90%+ National Direct Distribution Coverage ~5,900 Fleet Multi-Channel Razor / Razorblade Business Model 50+ Depots & Production Production Facilities Sites 200+ Depots 90+ Water So
Slide 10: Our Strategy: Serve Our Customers Anywhere and Anyway They Hydrate
Our Strategy: Serve Our Customers Anywhere and Anyway They Hydrate BRANDS FORMAT / OFFERINGS Retail Dispensers Direct Delivery Refill Exchange Filtration Offerings Across the Pricing Spectrum CHANNELS USAGE OCCASIONS 12AM 12PM 12AM RETAIL HOME OFFICE CONVENIENCE MORNING MID-DAY EVENING Getting ready
Slide 11: Investment Highlights
PRIMO ‘BRANDS! Investment Highlights
Slide 12: Investment Highlights
Investment Highlights 1 Large and Growing Category with Attractive Long-Term Consumer Tailwinds 2 Branded Beverage Platform with Leadership Position Across Channels 3 Diversified, Scaled Offering with Differentiated National Footprint 4 Powerful Financial Profile with Meaningful Growth Prospects 5 M
Slide 13: Bottled Water is One of the Largest Components of the ~$135Bn US Beverage Category
Bottled Water is One of the Largest Components of the ~$135Bn 1 US Beverage Category Bottled Water is the Retail Sales Value of US Bottled ~$135Bn US Beverage Category Size(1) Beverage of Choice(5) Water Category(1) (2023A Retail Sales, $ in billions) Sports Drinks Others (3) $5 #1 ($ in billions) $
Slide 14: Our Portfolio of Iconic Brands is the Retail Category Leader in Water
2 Our Portfolio of Iconic Brands is the Retail Category Leader in Water… Dollar Share of US Bottled Water Sales Ranked by 2023 Dollar Share of US Bottled Water Retail Sales (%) (1) Our Iconic Brands 19% All Others 41% 16% 3c 10% 4% 3% 2% 2% 2% Source: IRI / Circana US Category Data as of December 31
Slide 15: Our Brand Reach is Amplified by the Strength of Our Go-To-Market Strategy and Platform
…And Our Brand Reach is Amplified by the Convenience and Strength 2 of Our Go-To-Market Strategy and Platform Retail Home Office Restaurants Convenience Hospitality Schools Hospitals • Serve millions of customers nationwide • Across channels, formats, geographies and usage occasions • Leverage techn
Slide 16: Diversified Offering Across Products, Formats, Channels and Price Points
3 Diversified Offering Across Products, Formats, Channels and Price Points (-) Price Per oz. Value Across the Pricing Spectrum (+) Price Per oz. (-) Time / (+) Time / Convenience REFILL EXCHANGE DIRECT Convenience Large Format Spring / Purified Flavored / Enhanced Premium Single-Serve
Slide 17: Powerful Financial Profile
4 Powerful Financial Profile… Illustrative Combined Financial Profile (LTM 9/30/24)(1) Estimated Cost + Synergy Opportunity Combined Net Revenue $6.7Bn Combined Adj. EBITDA / Margin %(2,3) $1.5Bn / 23% Targeted Combined Normalized Capex as a % of Net Revenue(4) ~4.0%-5.0% Combined Adj. Free Cash Flo
Slide 18: With Meaningful Growth Prospects
4 …With Meaningful Growth Prospects 1 2 3 Leverage Our Differentiated Grow Existing and New Customer Premiumization Route-to-Market and Base and Expand Retail Locations National Footprint • Innovation • Improving • Leverage premium brands across • Cross-sell retention rates water delivery and format
Slide 19: ~$200MM Run-Rate Cost Synergy Opportunity
5 ~$200MM Run-Rate Cost Synergy Opportunity Functional Areas Identified Opportunities • Optimization of manufacturing locations, routes, branches and inventory management 1 Operations • Brand portfolio alignment opportunity • Improvement of manufacturing efficiencies and leveraging operating resourc
Slide 20: Focused Sustainability Efforts
6 Focused Sustainability Efforts Water Stewardship Community Engagement Circular Packaging Climate Action 4 1MM+ ~1,000 1,600+ Sites verified against the Alliance for Cases of drinking water donated to Individual plastic bottles avoided for Water Stewardship standard and Existing propane-powered veh
Slide 21: Financial Update
A PRIMO ‘BRANDS! Financial Update
Slide 22: Primo Brands Combined Financial Summary
Primo Brands Combined Financial Summary Illustrative Combined Financial Highlights (LTM 9/30/24)(1) $6.7Bn $1.5Bn / 23% $700MM+ Combined Combined Combined Adj. Free Net Revenue Adj. EBITDA / Margin %(2,3) Cash Flow(4) ~4.0%-5.0% 3.1x ~$200MM Targeted Combined Normalized Est. Combined Run-Rate Cost C
Slide 23: Strong Q3'2024 Financial Performance for Both Primo Water & BlueTriton
Strong Q3’2024 Financial Performance for Both Primo Water & BlueTriton Primo Water Q3’2024 Highlights* BlueTriton Brands Q3’2024 Highlights ($ in millions) ($ in millions) Q3'2024 Q3'2023 Change Q3'2024 Q3'2023 Change Revenue $511.4 $470.0 8.8% Revenue $1,305.1 $1,252.6 4.2% Adj. EBITDA(1) $124.7 $1
Slide 24: Primo Brands Balance Sheet & Capital Structure
Primo Brands Balance Sheet & Capital Structure Combined Q3’2024 ($ in millions) Combined Maturity Pricing Cash and equivalents (1) $419 CFL Revolver ($350mm) -- 09/25 S+150 bps ABL Revolver ($350mm) -- 03/26 S+150 bps Term Loan B 2,710 03/28 S+350 bps Non-Fungible Term Loan B 397 03/28 S+400 bps Cap
Slide 25: Thank You
PRIMO BRANDS" THANK You fe. oly DEER om *@% PRIMO @ ©. parkletts ee iim < oe; a WATER" J sAnatoca & Ea “re
Slide 26: Appendix
PRIMO ‘BRANDS! Appendix
Slide 27: LTM Primo Water & BlueTriton Brands Q3'2024 Revenue by Quarter
LTM Primo Water & BlueTriton Brands Q3’2024 Revenue by Quarter Non-GAAP Reconciliation - Unaudited Primo Water Corporation Triton Water Parent, Inc. Combined For the Three Months Ended LTM For the Three Months Ended LTM LTM December 31, March 31, June 30, September 30, September 30, December 31, Mar
Slide 28: LTM Primo Water & BlueTriton Brands Q3'2024 Adj. EBITDA by Quarter
LTM Primo Water & BlueTriton Brands Q3’2024 Adj. EBITDA by Quarter Non-GAAP Reconciliation - Unaudited For the Three Months Ended LTM Primo Water Triton Water Primo Water Triton Water Primo Water Triton Water Primo Water Triton Water Corporation Parent, Inc. Combined Corporation Parent, Inc. Combine
Slide 29: 2023 Primo Water & BlueTriton Brands Adj. EBITDA by Quarter
2023 Primo Water & BlueTriton Brands Adj. EBITDA by Quarter Non-GAAP Reconciliation - Unaudited For the Three Months Ended For the Fiscal Year Ended Primo Water Triton Water Primo Water Triton Water Primo Water Triton Water Primo Water Triton Water Corporation Parent, Inc. Combined Corporation Paren
Slide 30: LTM Primo Water & BlueTriton Brands Q3'2024 Adj. Free Cash Flow by Quarter
LTM Primo Water & BlueTriton Brands Q3’2024 Adj. Free Cash Flow by Quarter Non-GAAP Reconciliation - Unaudited Primo Water Triton Water Parent, Primo Water Triton Water Parent, Primo Water Triton Water Parent, Corporation Inc. Combined Corporation Inc. Combined Corporation Inc. Combined Combined For
Slide 31: LTM Combined Q3'2024 Net Leverage Ratio
LTM Combined Q3’2024 Net Leverage Ratio Non-GAAP Reconciliation - Unaudited (In millions of U.S. dollars) Primo Water Corporation Triton Water Parent, Inc. Combined (1) Total Debt $ 1,294.0 $ 3,864.5 $ 5,158.5 (2) Unrestricted Cash as Reported $ 667.3 $ 174.8 $ 842.1 Less: Transaction Fees(3) (74.3)
Slide 32: PRIMO
py Am PRIMO BRANDS" ARROWHEAD DEER PARK Sh Ae KS aan 0 PRIMO WATER™ “rere Ny SARATOGA (Sparkletts. Ea