Economic Forces Driving the Cold Chain Sector Bram Stevens - Head of - PowerPoint PPT Presentation

Economic Forces Driving the Cold Chain Sector Bram Stevens - Head of Sponsor Coverage, Rabobank Martijn Breur - Mergers & Acquisitions, Rabobank Matteo Iagatti - Food Logistics Analyst, FAR Rabobank

Table of contents Sections I Introduction 4 II Market fundamentals driving the cold chain market 9 III Key trends in the cold storage market 14 2

Your Rabobank team presenting today Bram Stevens Martijn Breur Matteo Iagatti Managing Director Executive Director Analyst Head of Sponsor Coverage Mergers & Acquisitions Food & Agri Supply Chains North America Martijn.Breur@Rabobank.com Matteo.Iagatti@Rabobank.com Bram.Stevens@Rabobank.com • Over 15 years of Private Equity, • Over 12 years of M&A experience in • Joined the F&A Supply chain team Investment Banking and Leveraged the Netherlands, Singapore and in April 2018 Finance experience in Europe and New York • Extensive experience in F&A North America • Responsible for the foodservice, market, worked as a lobbyist for the • Heads sponsor coverage for North food distribution and cold chain European sugar beet growers. America and closely coordinates sectors Previous experiences include with his counterpart in Europe as consultancy and rural development • Advised clients such as Cargill, CP well as the various Global Sector projects Foods, FrieslandCampina, Lineage Heads linking the various parts of • Responsible for market analysis in Logistics, Post Holdings and Sysco the food value chain the food logistic sector covering • Selected transactions include the • Core member in Rabobank’s efforts cold chain, food distribution and acquisition of Partner Logistics and in Supply Chain and together with agri bulk commodities logistics Yearsley Group by Lineage GSH Tjard Westbroek, Matteo • Main focus of 2019 research will be Logistics, Weetabix by Post Iagatti and Martijn Breur driving Holdings, a Russian poultry the mapping of the European cold Rabobank’s agenda around the cold processor by CP Foods and the sale chain sector and the contribution of chain of CSM Bakery Supplies to Rhône food distribution to food supply sustainability 3

I Introduction 3

Rabobank is a leader in Consumer Food and Agriculture globally USD 740bn of assets with Located in USD 40 120bn ranked amongst the Active in all Top 25 committed to the (1) segments in the F&A sector countries Netherlands with a safest banks F&A focus globally worldwide 5 Note 1: Ranking as per Global Finance 2017

Trusted global Food & Agri financial advisory franchise Over 50 strategic transactions in the last 24 months for industry leading clients Groupe Soufflet Axéréal/Boortmalt Le Martiniquaise Chomthana Gmyrek Mars, Incorporated Konspol E&A Scheer Ourofino Química Disposal of Ceres to Acquisition of Cargill’s Acquisition of Cutty Sark Sale of 96.5% stake to Yili Sale of Gmyrek to Group Sale of Mars’ drinks Sale of Konspol to Cargill Sale of E&A Scheer to Sale of a minority stake to Dossche Mills Riverside malting business from Edrington Group for USD 81m of Butchers (backed by business to the Lavazza Mitsui and ISK Equistone) Group Pending Pending Pending 2018 2018 2018 2018 2018 Pending Bay Grove / Lineage Marfrig Global Foods Marfrig Global Foods Algar Agro Foremost Farms ED&F Man Holdings Permira Neovia Logistics Adama & Syngenta Sale of Keystone Foods to USD 969m acquisition of Sale of 100% of Algar Sale of its Pharmaceutical Sale of SIS Group to Acquisition of a 50% stake Sale of Neovia’s animal Acquisition of Yearsley USD 490m sale of certain in Grobest health division to Group Tyson Foods for USD 51% membership interest Agro to ADM Lactose business to Kerry crop protection products in Mitsui Sugar and Mitsui for 2.4bn in National Beef Group c. USD 100m Huvepharma Europe by Adama and Syngenta to Nufarm 2018 2018 2018 2018 2018 2018 2018 2018 2018 Refresco Autogrill Sioux Sun European Partners Bugaboo International Exponent Private Equity NPM capital Food Freshness The Scoular Company Technology Sale of the Nelson A-PET Acquisition of Le Crobag Sale of its 40.5% Acquisition of a majority Sale of Bugaboo to Bain Acquisition of Meadow Acquisition of Ploeger Acquisition of stake in Sale of Mississipi River Foods by Exponent from Oxbo Food Freshness Delta grain facilities plant to Sunmagic Juices from Groupe Soufflet shareholding in Phenom- stake in Afriflora Capital Ltd World to FEI Paine Schwartz Partners Technology 2018 2018 2018 2018 2018 2018 2018 2018 2018 Post Holdings Monsanto Sazerac Company, Inc. Davide Campari-Milano Lineage / Bay Grove Syngenta Adama Cargill Fresh Del Monte Produce USD 1.8bn acquisition of Acquisition of Partner Acquisition of Nidera Sale of certain crop Sale of Monsanto’s seed Sale of soy crushing Acquisition of 43% stake Disposal of Campari’s soft USD 361m acquisition of Weetabix Logistics by Lineage / Bay Seeds protection assets in the plant in Brazil to in John Distilleries Pvt. drinks division to Royal Mann Packing & refining assets in Grove US to AMVAC Tecnoseeds NW Europe to Bunge Ltd. Unibrew 2017 2017 2017 2017 2017 2017 2018 2018 2017 6

Rabobank leading Food & Agri banking globally Global F&A – 2018 # deals 1 Rank Mandated Lead Arranger Deal count. 1 Rabobank 98 Bank of America Merrill 2 Lynch 75 3 JPMorgan 74 4 MUFG 66 5 BMO 56 6 BNP Paribas 49 7 Wells Fargo 48 8 Mizuho 48 9 ING 44 10 Citi 42 Suzano Papel e Celulose WestRock Co (Brazil) (United States) USD 9,200,000,000 USD 3,800,000,000 Credit Facilities Credit Facilities Joint Lead Arranger and Joint Lead Arranger and Bookrunner Bookrunner March 2018 March 2018 Note 1: Source: Dealogic, 01-01-2018 – 31-12-2018 7

Rabobank is highly active in the cold chain industry Selected recent advisory & financing transactions Americold Lineage Logistics Confidential Lineage Logistics Acquisition financing in relation to Acquisition of Yearsley Group Refi acquisition in Asia-Pacific region Limited USD 550,000,000 Senior Secured IPO and Follow-On Offering Undisclosed Credit Facilities USD 1,050,000,000 Lead Financial Advisor Joint Lead Arranger Senior Co-Manager Pending 2018 2018 2018 Americold Arhma Holding B.V. Lineage Logistics Refinancing EUR 10,400,000 Acquisition of Partner Logistics USD 1,275,000,000 Senior Secured Credit Facilities Global Client Solutions Undisclosed Joint Lead Arranger, Joint Sole Arranger Bookrunner Growth Capital Provider Financial Advisor 2017 2018 2018 8

II Market fundamentals driving the cold chain market 10

Global market and regional relevance Eating habits in Specific Concentration of Globalized Food emerging Regional Population Market markets Products Sectorial regional Larger city to be Fresh and frozen Global approach to specialization of supplied in the food consumption F&A logistics food production future on the rise Demanding Need ability to Attractive Demand for consumers and consistently deliver demographic premium products closer cooperation in multiple markets trends rising with retailers Demands for Integrity of supply Proximity vs. First signs of Organic, Local and chain economies of scale premiumization Sustainable Variety of Need for modern Large CPGs under Different service distribution and flexible cold pressure models channels chain infrastructure F&A logistics Follow the Consolidation Opportunity to Serving the consumption involves also grow organically in growing city smaller specialized trends in emerging different region population economies players 10 Source: Rabobank

Consumer megatrends have an impact on logistics, mainly through convenience and health & safety Convenience Hybrid Health & Sustainability safety consumer Informed consumer 11 Source: Rabobank

Distribution Channels: getting closer to the consumer Market share for grocery distribution channels in Western Distribution channels in Western Europe: Europe - % of retail sales value CAGR 2013-2017 vs. CAGR 2018-2023 12.0% 100% 6% 6% 6% 6% 6% 7% 7% 7% 90% 10.0% 11% 11% 12% 13% 13% 14% 15% 16% Convenience 80% Stores 8.0% Internet 70% 29% 27% 26% 24% 22% 20% 20% Retailing 19% 6.0% 60% CAGR 2013-2017 Discounters 50% 4.0% 25% 25% 24% 23% 25% 25% 24% 25% 40% Supermarkets 2.0% 30% 0.0% 20% 33% 33% 32% 32% 32% 31% 31% 31% Hypermarkets 10% -2.0% Traditional 0% Grocery … -4.0% 2004 2006 2008 2010 2012 2014 2016 2018 -2% 3% 8% 13% Supermarkets Hypermarkets CAGR 2018-2023 Traditional Grocery Retailers Discounters Convenience Stores Internet Retailing 12 Source: Euromonitor, Rabobank, 2019

Multi-layered approach to food supply and logistics GDP Regional Distribution Segmentation of Economic and • Food supply chain Fine tuning of market analysis • on multiple layers F&A Logistics Define specific opportunity • and threat Deep knowledge of the market • Frozen Food Consumption Food Production European Cold Stores 13

III Key trends in the cold storage market 10

Key trends in cold chain logistics Technology – Big Data 1 Thinking outside the traditional storage box 2 Value added services 3 Adaptation to change in consumer preferences 4 Disruptive innovations 5 Consolidation driven by institutional investors 6 15 Source: Rabobank FAR