From Sara Lee to Jacobs Douwe Egberts

Amsterdam, June3rd. 2014

Noordwijk, 14 November 2014

Jan SchetsD.E. Master Blenders 1753

Sander HoninghRabobank

Agenda

Refinancing

Transactions

Bank

RelationshipsKey Learnings

Wallet

DistributionQ&A

Company

Snapshot

3

Company Snapshot

We are a leading, focused pure-play coffee and tea company with operations across Europe, Brazil, Australia and Thailand.

72% of our sales are generated from markets where we have a Number 1 or Number 2 position.

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Note: 72% is total company sales in countries where D.E MASTER BLENDERS has a number 1 or 2 position in retail coffee.

4

We have strong local brands

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France

Spain

Australia

Brazil

NL & BE

Global Hungary

Denmark

Global Norway

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2013: € 2,5 bln

29%

Brazil17%

France13%

Belgium7%

Germany6%

Australia6%

Spain6%

Other16%

Netherlands

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Other includes New Zealand, Norway, Denmark, Poland, Thailand, Greece, Hungary, Czech Rep, UK

Our sales split by geography

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Roast & Ground

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Senseo

8

Capsules

9

Tea

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Intended JV with Mondelez announced

Announced on May 7th

To become the world’s leadingpure-play coffee company

JV:Mondelez #2 sales €2.9 bln 49%DEMB #3 sales €2.5 bln 51%JV #2 sales €5.4 bln 100%

Merger is complimentary in regions and in coffee expertise.

Many 1st and 2nd positions in key markets

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Our History

1936 1940s 1978 20121753 2001

Pickwick established

Senseo coffee system launched

March – June 2012: The new company name

“D.E MASTER BLENDERS 1753” revealed and

Company is listed on the NYSE Euronext Exchange

2010

Launched the L’OR EspressO capsules compatible with the

Nespresso® single-serve system

OOH: Out of Home

Douwe Egberts established

The business expands into Western Europe

Douwe Egberts acquired by Sara Lee

2013

Sept 2013Oak Leaf B.V acquired

95% of the shares In DEMB 1753

2014

May 2014DEMB announced the intended partnership

with Mondelez on combining

Coffee activities

Refinancing transactionsRefinancing transactions

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Before July 2012

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015

Utrecht Treasury- FX Global- CM ROW- Group financing

Surplus cashCM / FX banks

Chicago Treasury - DCM- CM America’s- Insurance

NYSE listedBBB ratedPublic DebtBank funded RCF

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July 2012, spin-off from Sara Lee

Sara LeeSpin-off

Bank groupExisting bank relationsSelection of banks based on our global footprint- 10 banks (out of 18)- NL banks eager- FR banks dropped out

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015

Chicago Treasury - DCM- CM America’s- Insurance Amsterdam Treasury

- Capital markets- FX Global- CM Global- Insurance

AEX-listedBBB ratedUSPP $650 mlnRCF €750 mln

NYSE listedBBB ratedPublic DebtBank funded RCF

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September 2013, JAB-led acquisition

JAB+

PrivatizedB+ / BB- ratedRCF €300 mlnLoans - banks €2,000 mln - investors €1,000 mln

Bank groupJAB / existing bank relations- 25 banks - 7 dropped-out - 4 reconsidered - 18 new

JAB ledacquisition

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015

Sara LeeSpin-off

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July 2014, refinancing in view of intended partnership with Mondelez per July 2015

PrivatizedBB / BB- ratedRCF €500 mlnLoans - banks €3,900 mln - investors €3,200 mln

Bank groupMondelez / JAB / Existing bank relations- 40 banks - 2 dropped-out - 9 reconsidered - 8 new

Mondelezrefinancing

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q32012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015

JAB ledacquisition

Sara LeeSpin-off

Mondelezpartnership

JAB+

Bank relationships

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Development of bank commitments

< 2012 2012 2013 2014Sara Lee DEMB JAB JAB/MDLZ

123456789

1011121314151617181920212223242526272829303132333435363738394041424344

Why joined:• Economics• Less crisis• Relationship• Convinced

Why declined:• Economics• Euro crisis• Rating/Leverage• Concerns

Commitments banks € 750 mln

Commitments banks € 2.3 bln

Commitments banks € 4.4 bln

Sara Lee / DE(Netherlands Antilles)

2.25% Notes due 2012EUR 300 million

Joint Bookrunner

March2010

Sara Lee / DE(Netherlands Antilles)

2.274% FRN due 2006EUR 250 million

Joint Bookrunner

November 2004

Sara Lee / DE(Netherlands Antilles)

5.211% FRN due 2002EUR 200 million

Joint Bookrunner

November 2000

Sara Lee(Netherlands Antilles)

6% Notes due 1997NLG 200 million

Joint Bookrunner

J uli 1994

D.E MASTER BLENDERS 1753 B.V.Syndicated Revolving Credit Facility

EUR 750,000,000

Coordinator, Bookrunner,Mandated Lead Arranger &

Documentation AgentMay 2012

D.E MASTER BLENDERS 1753 B.V.Syndicated Revolving Credit Facility

EUR 750,000,000

Coordinator, Bookrunner,Mandated Lead Arranger &

Documentation AgentMay 2012

D.E MASTER BLENDERS 1753 B.V.Advisory

Financial Advisor2012

D.E MASTER BLENDERS 1753 B.V.Advisory

Financial Advisor2012

Value added cooperation

D.E MASTER BLENDERS 1753 N.V.

Financial Advisor public-to-privatePaying & Exchange Agent

Joint Lead ArrangerJoint Global Coordinator

2013

D.E MASTER BLENDERS 1753 N.V.

Financial Advisor public-to-privatePaying & Exchange Agent

Joint Lead ArrangerJoint Global Coordinator

2013

Jacobs Douwe Egberts B.V.

Acquisition FinanceFinancial Logistics

Mandated Lead Arranger2014

Jacobs Douwe Egberts B.V.

Acquisition FinanceFinancial Logistics

Mandated Lead Arranger2014

Wallet distribution

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Quote uit termsheet coffee machines leasing proposal

Banks, fees & services

...... een vast bedrag per maand waarmee de meeste diensten

gratis worden aangeboden.

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• Asset takers

– Yield is sufficient

• Ancillary business– Nice to have– Fair share– Demanding

Why do banks participate in the financing

Increased focus on cross-sell

Why?

ECB belooft strenge stresstestBasel 3:• Higher minimum capital

requirement• Capital needs to be of higher

quality• Additional capital

requirements for system banks

Company No. of deals

1. Rabobank 41

2. ABN AMRO 22

3. ING 27

4. Leonardo & Co. 6

5. Lazard 4

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• Lending/RCF is the entry ticket

– Level playing field taking Tiering into account

• Ancillary business– Cash management– Foreign exchange– Interest rate management– Financing– Credit cards– Pensions

Wallet / Ancillary business

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The Treasurer’s mantra:

PROFITAN

OPINION

&

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&

The reality is:

PROFITAN

OPINION

Cash

Profit

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The reality of Treasury is:

Too much on reporting

Too little on cashResearch?Benchmarks?Education?

Treasury is procurement!

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What do we do:

Financing• Fees, interest marginsCash management • Fees, interest marginsFX• Spot / forward 0.5 - 2 bps, FX-swaps 1.5 bpsSwaps• IRS 1 bps, CCS 1,5 bps, coordinationInvestments• Depo’s / MMF’s 10 bps

Capital• Total of loans + % of commitments

Total Fees / Total Capital = Return on Capital

Total Fees

Total Capital

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Risk perception drives return level

(Gross)RAROC

Risk Adjusted Return

Economic Capital

IncomeLiquidity

CostsExpected

Loss

Credit Risk Transfer Risk

Key learnings

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Vision on the role of banks

Before 2012Service providerTrusted advisor

After 2012Finance provider - newService providerTrusted advisor

Internal / external factors have major impact on relationships

Treasury community needs to step up on wallet distribution

increased

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Relationships with banks

Trust between banks and corporate at various levels is key

United Nation's World Happiness Report:

Denmark most happiest country of the world

Why: they trust each other….NRC 23-10-14

Thank you