M&A Business Case Presentation Project [NAME] Date

M&A Business Case Presentation Project [NAME] Date

User Guide This template PowerPoint forms part of Midaxo’s M&A Academy and is intended to highlight an M&A business case to the decision makers within your organization. Graphics, maps, tables and charts are editable/customizable. To edit charts and graphs: Right Click Edit Data. To edit tables: Right Click Edit Worksheet Object. Inputs in tables are highlighted in blue font. Outputs in tables are in black font. To edit maps (slides 9 & 10) ungroup then select country and color. Countries can be grouped/ungrouped and moved/re-sized, etc. via selecting the map and Format Group/Ungroup. Expanded view maps can be found in Appendix 1. Color themes can be changed and your own corporate logo used via Themes Edit Master. 2 Midaxo 2020 For additional M&A Academy resources see here: http://www.midaxo.com/knowledge-center-v2 Questions? Email: [email protected] www.midaxo.com

Contents 1. Executive Summary – Project [Name] 3 14. Transaction Process 20 2. Target Evaluation 5 15. Key Focus Areas For Due Diligence 21 3. Summary Of Operations 6 16. Proposed Timetable 22 4. Ownership Structure 7 17. Comparable Company Analysis 24 5. Sales By Region 8 18. Indicative Valuation 25 6. Proposed Market Expansion 9 19. Funding – Sources & Uses 26 7. Summary of Financial Performance 11 20. Exit Analysis 27 8. Revenue Analysis 12 21. Transaction Rationale 29 9. Balance Sheet Summary 13 22. High Level Integration Plan 30 10. Cash Position 14 Appendices 11. Strategic Fit 16 Appendix 1 – Maps 12. Business Environment 13. SWOT Analysis 3 Midaxo 2020 www.midaxo.com 32

1. Executive Summary – [Project Name] Target Overview 4 Name [ADD TEXT HERE]; Location(s) [ADD TEXT HERE]; Latest financials [ADD TEXT HERE]; Number of employees [ADD TEXT HERE]; Key product/service offering [ADD TEXT HERE]; Competition [ADD TEXT HERE]; Midaxo 2020 Transaction Highlights [EXAMPLE] Targeting an indicative valuation of [X]m based on analysis of comparable transactions in the sector over the past [X] years and a multiple of [X] times adjusted earnings (EBITDA); [EXAMPLE] Cost synergy; [EXAMPE] Cost synergy; [EXAMPLE] Revenue synergy; [EXAMPLE] Revenue synergy; [ADD TEXT HERE]; [ADD TEXT HERE]; www.midaxo.com Team/Timeline/Key Issues Project Lead [NAME]; M&A Lead [NAME]; PMI Lead [NAME]; Legal Lead [NAME]; Analysts [NAME/NAME/NAME]; Targeting commencement of due diligence [DATE]; Targeting offer negotiations [DATE]; Targeting close [DATE]; Day One PMI [DATE];

Target Evaluation

2. Target Evaluation Overview Customers & Sales Channels Market leader in [X]; Highly experienced key management team willing to remain posttransaction; Strong sales force; Establised in [X] with average revenue growth of [X]% per annum, resulting in the development of a [X]m company in[X] years; Retail operations in [X] countries, covering [X] continents. Revenue Mix [X]% of revenue is generated from [X]; 4 countries currently account for 100% of sales; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; 6 Midaxo 2020 EXAMPLES [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; Competitors www.midaxo.com [ADD [ADD [ADD [ADD [ADD [ADD TEXT TEXT TEXT TEXT TEXT TEXT HERE]; HERE]; HERE]; HERE]; HERE]; HERE];

3. Summary of Operations Facilities Manufacturing Capabilities EXAMPLES EXAMPLES [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; Product Lines EXAMPLES [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; 30% 37% 11% 22% 7 Midaxo 2020 www.midaxo.com Primary Secondary Tertiary Other

4. Ownership Structure Current Proposed (Post-Transaction) HOLDING COMPANY [Country] HOLDING COMPANY [Country] Subsidiary Subsidiary [Country] [Country] Subsidiary Subsidiary [Country] [Country] Subsidiary Subsidiary [Country [Country] Target [Country Target [Country] 8 Midaxo 2020 Subsidiary Subsidiary [Country] [Country] Target [Country] Target [Country] www.midaxo.com

5. Sales by Region Locations 3. 1.USA (HQ) 20 Stores 1,500 employees 250m 2. 1. 2.UK 3 Stores 100 employees 50m 3.SWEDEN 5 Stores 250 employees 75m 9 Midaxo 2020 www.midaxo.com

6. Proposed Market Expansion Locations 1.NORWAY [ADD TEXT HERE] 1. 2. 2.FINLAND [ADD TEXT HERE] 3.NETHERLANDS [ADD TEXT HERE] 4.FRANCE [ADD TEXT HERE] 3. 5. 10 Midaxo 2020 5.SPAIN [ADD TEXT HERE] 4. www.midaxo.com

Financial Summary

7. Summary of Financial Performance Group EBITDA/Earnings 70 65 Group EBITDA/Earnings ( m) 12 40% 50 45 40 30 29% 35 30% 20% 17% 20 10% 10 0 17 Y F 50% 44% 60 30 Observations Group EBITDA Growth (%) 0% TU C A AL 18 Y F Midaxo 2020 TU C A AL 19 Y F O U T TU RN 20 Y F FO ST A C RE www.midaxo.com [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE];

8. Revenue Analysis Revenue by Region Revenue by Region (%) FY18 600 532 500 465 382 400 Revenue ( m) 3% 16% 415 US UK SWEDEN AUSTRALIA TOTAL 300 200 100 27% 0 FY17 ACTUAL 13 54% Midaxo 2020 FY18 ACTUAL FY19 FY20 OUTTURN FORECAST www.midaxo.com US UK SWEDEN AUSTRALIA

9. Balance Sheet Summary Observations 14 Midaxo 2020 [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; www.midaxo.com

10. Cash Position 40 Closing Group Cash/Debt ( m) 40 15 40 45 30 35 27 20 10 20 0 15 -10 2018 ACTUAL 2017 ACTUAL CASH DEBT NET CASH/(DEBT) 10 -20 5 -30 0 Midaxo 2020 30 25 CURRENT Observations Net Cash/(Debt) ( m) 50 www.midaxo.com [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE];

Strategic Fit

11. Strategic Fit 4 [ADD TEXT HERE] [ADD TEXT HERE] [ADD TEXT HERE] 3 [ADD TEXT HERE] [ADD TEXT HERE] [ADD TEXT HERE] Commercial 2 Culture 1 Corporate Strategy 17 Midaxo 2020 Functions/Operations [ADD TEXT HERE] [ADD TEXT HERE] [ADD TEXT HERE] [ADD TEXT HERE] [ADD TEXT HERE] [ADD TEXT HERE] 17 www.midaxo.com

12. Business Environment Examples Market issues; Growth potential; Customer requirements; B2B or B2C. Examples MARKET FORCES INDUSTRY FORCES Examples 18 Technology trends; Regulatory trends; Social trends; Socioeconomic trends. Midaxo 2020 Competitors; New entrants; Substitute products/services; Stakeholders. Examples KEY TREND S MACRO ECONOMIC www.midaxo.com Global market conditions; Capital markets; Exchange rates; Market confidence.

13. SWOT Analysis Strengths Weaknesses EXAMPLES Opportunities 19 Midaxo 2020 EXAMPLES Profitable & cash generative; Highly experienced key management team; Strong sales force; Global network and international presence; Revenue growth from recent acquisiitons. High transportation costs; Limited flexibilty in pricing; Competitors can offer similar products quickly; 4 countires account for 100% of revenue. Threats [X]% of revenue is generated from [X]; 4 countries currently account for 100% of sales; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; www.midaxo.com [ADD [ADD [ADD [ADD [ADD [ADD TEXT TEXT TEXT TEXT TEXT TEXT HERE]; HERE]; HERE]; HERE]; HERE]; HERE];

Transaction Process

14. Transaction Process TARGET APPRAISAL APPROACH DUE DILIGENCE NEGOTIATION & CLOSE Key Areas Target & market analysis; Initial assessment of synergies & value drivers; Indicative valuation; Go or No-Go decision; Preparation of transaction documents (NDA – Non-disclosure Agreement/LOI-Letter of Intent); Select Transaction team; Appoint advisors; Consider funding ability. Initial approach letter; Signing of NDA; Prepare & share initial information requests; Formulation of LOI (Letter of Intent) & possible negotiations; Initial meeting and Q&A; Circulate information on the Target to the Transaction team. Set scope of due diligence; Set up VDR (virtual data room); Coordinating of due diligence, further meetings and Q&A sessions; Consider points relevant to the Post-Merger (PMI) phase; POST MERGER INTEGRATION (PMI) Revisit indicative valuation & prepare detailed valuation based on due diligence findings; SPA negotiations with the seller; Development of final structure (share/asset deal) and final valuation; Approvals; Signing of SPA & Close. Consider the extent of integration; Development of 100 Day PMI Plan; Consider short & long term objectives; Estimate requirements to capture synergies; Determine resource needs & optimal allocation. Company general counsel; Lawyers; Senior management. Company general counsel; Lawyers; Senior management/HR. Parties Involved CFO; Head of M&A; Accountants; Corporate finance advisors; Midaxo 2020 21Consultants. Senior management; CEO, CFO, CTO; Strategy director; Head of M&A; Head of Business Development; Consultants. www.midaxo.com

15. Key Focus Areas for Due Diligence Financial Commercial Operational Legal Key Steps Review financial statements & management accounts; Indicative valuation & deal financing; Tax; Quality of earnings; Progress against forecast; Contingent & unrecorded liabilities; Accounting standards; Related party transactions. Market overview; Customers; Industry structure and trends; Competitive positioning; Business plan; Scope for market expansion (new geographies); Distribution channels; Barriers to entry. Cost structures & value drivers; Operational improvement potential; Cost & revenue synergy assessment; Risks & opportunities; Scope to integrate; Rationalization of business functions; Other (Technology/HR/ET C.) Adherence to regulations; Litigation; Liabilities and potential risks; Governing documents; Competition authority implications; Contracts; Ownership of title; Insurance; Transaction mechanics, execution & closing; Cost of redundancies & downsizing; Retention of key employees; Terms of employment/contracts; Compensation & employment related expenses; Culture; Data retention; IT operations; Operational needs. Negotiation; Warranties, indemnities & representations; Bridging of value gap via earn out mechanism; Communicate the deal to stakeholders. Capture synergies ASAP; Build Day One plan early in the process; Implement work stream plans & monitor milestones. Key Success Factors Consider the possible transaction structure early on; Ask “is the deal right for us”? Consider key milestones and timeframes to 22close. Midaxo 2020 Establish best point of contact; Be flexible with timeframes imposed by the seller; A period of exclusivity should be granted. Comprehensive checklists covering all areas in scope; Consider mitigating actions if necessary; Be prepared to “walk away”. www.midaxo.com

16. Proposed Timetable Milestone 1 Month [X] Milestone 2 Milestone 3 Month [X] May Task 1 Here Task 2 Here Task 3 Here Task 4 Here Task 5 Here Task 6 Here Jun Milestone 6 Milestone 4 Month [X] Aug X/X/XX Milestone 5 1. 2. Month [X] 3. 4. Sep Oct 5. 6. Month [X] Jul Observations Month [X] [ADD [ADD [ADD [ADD [ADD [ADD TEXT HERE] TEXT HERE] TEXT HERE] TEXT HERE] TEXT NovHERE] TEXT HERE] Milestone 7 Month [X] Dec X/X/XX X/X/XX X/X/XX X/X/XX X/X/XX Observations 23 [ADD TEXT HERE]; [ADD TEXT HERE]; Midaxo 2020 [ADD TEXT HERE]; [ADD TEXT HERE]; www.midaxo.com [ADD TEXT HERE]; Month [X] 2018 X/X/XX X/X/XX Milestone 8

Valuation & Exit Analysis

17. Comparable Company Analysis Observations 25 [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; Midaxo 2020 [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; www.midaxo.com

18. Indicative Valuation Observations 26 Midaxo 2020 www.midaxo.com [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE];

19. Funding – Sources & Uses Observations 27 Midaxo 2020 www.midaxo.com [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE]; [ADD TEXT HERE];

20. Exit Analysis 28 Midaxo 2020 www.midaxo.com

Integration Plan

21. Transaction Rationale Cost & Revenue Synergies Group Positioning Financial Consideratio ns 30 Midaxo 2020 Elimination of duplicate expenses such as [X], [X] and [X] will drive margin increases at the gross profit and operating profit level; Leverage of international distribution channels enables [X]; Attractive customers, minimal overlaps and opportunity to cross-sell; Broadens product range and compliments current product offering via [X]; The Company’s [x] and [X] emphasis aligns with [TARGET’s] focus on [X]; Provides the ability to leverage the supply chain via greater bargaining power – therefore realizing economies of scale in [X] and [X]. Meets the Group’s acquisition objectives and is consistent with long-term growth strategy; Creates an addressable market of [VALUE] across [X] countries; Provides a more efficient platform for growth via access to new geographies – filling the gaps in [COUNTRIES/REGIONS]; Diversifies the Group’s revenue stream via [X]; Accelerates development of [X]; Provides new commercial scale opportunities via [X]; [COUNTRY/REGION] operation provides a base for expansion; Strengthens competitive position with the combination of two of the top [X] in the market. Expect results to be accretive to EPS (earnings per share) in [DATE] achieved via [X]; Targeting a payback period of [X] years and IRR of [X]; Anticipate [X] of operating improvements and [X]; Expect EBITDA multiple arbitrage - exit multiple in the region of [X] to [Y]; Based on [YEAR] forecast EBITDA exit value targeted at [VALUE] – yielding cash-on-cash return of [X]; Larger/stronger balance sheet – therefore expanding access to capital; [TARGET] would be more valuable as part of the Group due to [X]; www.midaxo.com

22. High Level Integration Plan Opportunity Expected Synergies 31 Midaxo 2020 Commercial Cross selling of products into new customer base; Product development; Leverage sales capabilities; New market entry/expansion; Key customer retention & continuity of customer contracts; Pricing optimization; Sharing of distribution channels. Operational Overall strategy refinement & 100 Day Plan; Elimination of duplicate expenses such as [X] and [X]; Sales and marketing cost reduction; Finance/HR and IT consolidation; Expansion of warehouse, distribution and logistics footprint; Outline key skills & competencies; Financial Working capital reduction; Sale of surplus assets; Cash flow management; Consistency of accounting policies; Restructuring of debt and banking facilities; Tax planning. www.midaxo.com [X]% – [Y] % net revenue gain [X]% - [Y] % net cost reduction [X]% - [Y] % EBITDA accretion

Appendix

Appendix 1 – Maps 33 Midaxo 2020 www.midaxo.com