EX-99.1 3 d315198dex991.htm EX-99.1 EX-99.1

Exhibit 99.1


LOGO

 

The Rebirth of The Blend


LOGO

 

Disclaimer

DE International Holdings B.V. has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. You should read the prospectus in that registration statement and other documents DE International Holdings B.V. has filed with the SEC for more complete information about DE International Holdings B.V. and this offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www. sec.gov . Alternatively, you can obtain a copy of the prospectus by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, . The Netherlands or by sending an email to coffeeteaco@saralee. com These materials do not constitute an offer to acquire securities or a prospectus within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht) . In connection with the admission to trading on NYSE Euronext in Amsterdam, a prospectus approved by the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten or “AFM”) will be made generally available in The Netherlands. Any investor should make his investment decision solely on the basis of the information contained in the prospectus. When made generally available, copies of the AFM? approved prospectus may be obtained at no cost by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, The Netherlands or by sending an email to coffeeteaco@saralee. com .

Some of the information presented herein contains forward ? looking statements. All statements other than statements of historical fact regarding our business, financial condition, results of operations and certain of our plans, objectives, assumptions, projections, expectations or beliefs with respect to these items and statements regarding other future events or prospects, are forward ? looking statements. These statements include, without limitation, those concerning: the anticipated costs and benefits of restructuring actions taken to prepare for the separation; our ability to complete the separation; the timetable for completion of the separation; the expected benefits of the separation; CoffeeCo’s ability to declare and pay the CoffeeCo Special Dividend; our access to credit markets; and the funding of pension plans. These statements may be preceded by terms such as “expects,” “anticipates,” “projects” or “believes. “ In addition, this presentation may include forward ? looking statements relating to our potential exposure to various types of market risks, such as commodity price risks, foreign exchange rate risks, interest rate risks and other risks related to financial assets and liabilities. We have based these forward ? looking statements on our management’s current view with respect to future events and financial performance. These forward ? looking statements are based on currently available competitive, financial and economic data, as well as management’s views and assumptions regarding future events, and are inherently uncertain. Although we believe that the estimates reflected in the forward ? looking statements are reasonable, such estimates may prove to be incorrect. By their nature, forward ? looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward ? looking statements. These factors include, among other things, those listed in the section of the prospectus entitled “Risk Factors. “ We urge you to read the sections of the prospectus entitled “Risk Factors,” “Operating and Financial Review,” “Industry Overview” and “Business” for a discussion of the factors that could affect our future performance and the industry in which we operate. Additionally, new risk factors can emerge from time to time, and it is not possible for us to predict all such risk factors. Given these risks and uncertainties, you should not place undue reliance on forward ? looking statements as a prediction of actual results.

All forward ? looking statements included herein are based on information available to us on the date of this presentation. We undertake no obligation to update publicly or revise any forward ? looking statement in this presentation, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward ? looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout the prospectus.


LOGO

 

Introduction

Jan Bennink Executive Chairman


LOGO

 

Jan Bennink

Nationality Dutch

Current Position

Executive Chairman Sara Lee (2011) Member Board of Directors CCE

Previous Experience Numico – 5 yrs Danone – 7 yrs

Reckitt Benckiser – 7 yrs P&G – 7 yrs

4

 


LOGO

 

The Rebirth of the Blend

A New Company

Our Focus Our Objectives Our Agenda

5

 


LOGO

 

Great Potential

The brands The marketplace The management The intangibles

6

 


LOGO

 

First, Critical Steps

Shaping the new company Forming our vision Preparing the organization Innovation, innovation, innovation

7

 


LOGO

 

Our Key Assets

Strong and established brands Excellent and experienced R&D Innovation pipeline already flowing Management team is quickly coming together

8

 


LOGO

 

Addressing the Sceptics

Can Western Europe really grow? How can you revitalize Roast & Ground? How do you fight off Private Labels?

Can you restore margins to historical levels?

9


LOGO

 

Agenda ? Day 1

Discovery and Creation

Brand Reveal

From Field to Factory From Factory to Cup The Buzz on Coffee

Rebirth: Renovations

Michiel Herkemij

Rudy Schwab

Jos Sluys

Pascal Mignolet Ingrid Baron

Michiel Herkemij Ingrid Baron

10


LOGO

 

Agenda ? Day 2

Rebirth: Innovations Michiel Herkemij Ingrid Baron

R&D and Operations Jos Sluys Luc Volatier

Out of Home: Living the Café Culture Nick Snow

Close? up on Countries Luc Van Gorp Harm? Jan van Pelt Lara Brans

Dantes Hurtado

Financials Michel Cup

11


LOGO

 

Discovery and Creation

Michiel Herkemij CEO


LOGO

 

Michiel Herkemij

Nationality Dutch

Current Position CEO (2011)

Previous Experience Heineken – 6 yrs

Royal Friesland Campina – 6 yrs BAT – 7 yrs ABN AMRO – 3 yrs

13


LOGO

 

Discovery: Facts and Figures

14


LOGO

 

Pure? Play Coffee/Tea Company

€ 2.6 bn sales

€ 363 mln adjusted EBIT IFRS

Number 3 player globally

72% of sales from markets with No. 1 and No.2 positions

Note: 72% is total company sales in countries where DE Master Blenders has a number 1 or 2 position in retail coffee Source: Company data,

15


LOGO

 

Sales by Category

FY 2011 Other Tea 6% 6% Instant 10%

Roast & 10% Ground 49% Liquid Roast

19%

Single Serve

Source: Company data, sales excluding green coffee export

16


LOGO

 

Revenue Split by Business

Retail accounts for 74% of total sales OOH accounts for 26% of total sales

Source: Company data, sales excluding green coffee export

17


LOGO

 

Sales Split by Geography

FY 2011

Other

Netherlands

26% 28%

6%

Germany 7% 21% 12%

Belgium

Brazil

France

Source: IFRS financials, Brazil includes exports

18


LOGO

 

Strong Local Brands

Denmark France Spain Brazil Australia

Hungary Spain NL & BE Global Global

19


LOGO

 

Leading Coffee Positions in Key Countries

Country Market Share Position

Netherlands 48.5% #1

Belgium 46.3% #1

Denmark 27.3% #1

Hungary 23.3% #1

Brazil 20.4% #1

Australia 25.5% #2

France 21.2% #2

Spain 17.4% #3

Poland 10.7% #5

Source: Nielsen total coffee (R&G + instant) value share CY 11

20


LOGO

 

Leading Tea Positions in Selected Markets

Country Market Share Position

Netherlands 52.9% #1

Denmark 31.8% #1

Hungary 31.4% #1

Czech Republic 21.8% #1

Spain 27.8% #2

Source: Nielsen value share FY11

21


LOGO

 

Diverse Coffee Competitors

Country #1 #2 Netherlands CTC Private Label Belgium CTC Private Label Denmark CTC Kraft Australia Nestle CTC Hungary CTC Tchibo Brazil CTC Strauss France Kraft CTC Spain Nestle Private Label Poland Kraft Tchibo

Source: Nielsen total coffee (R&G + instant) value share CY 11

22


LOGO

 

Diverse Tea Competitors

Country #1 #2 Netherlands CTC Private Label Czech Republic CTC Teekanne Hungary CTC Unilever Denmark CTC Fredsted Spain Private Label CTC

Source: Nielsen value share FY11

23


LOGO

 

Great Margins

Moderate Top Line Growth

(in € mln) FY09 FY10

Net sales 2,235 2,315 Like? for? like growth (0.9)% A&P spend (118) (132) Adjusted EBIT 355 371 Adjusted EBIT margin 15.9% 16.0%

Source: Company data

24


LOGO

 

Profit Dip in 2011 due to Commodity Cost

(in € mln) FY09 FY10 FY11

Net sales 2,235 2,315 2,602

Like? for? like growth (0.9)% +10.1%

A&P spend (118) (132) (138)

Adjusted EBIT 355 371 363

Adjusted EBIT margin 15.9% 16.0% 14.0%

Source: Company data

25


LOGO

 

OOH Platform to Build On

Present in 18 markets

# 1 and # 2 in 6 markets

Global distributor network in 52 countries

Source: Company data

26


LOGO

 

Discovery: My Observations


LOGO

 

Getting to Know the Company

Met the top 100 managers Market and customer visits Business assessments

28


LOGO

 

The Bottom Line

Great margins, moderate top line growth

Profit dip in 2011 due to commodity cost

29


LOGO

 

Discovery: Company Strengths

Strong research, product development and blending capabilities

Strong foundation in consumer preference mapping Solid OOH knowledge France and Spain star performers Willingness to change

30


LOGO

 

Discovery: Some Issues

Under? managed company Inconsistent sales execution Retail and OOH disconnected

31


LOGO

 

Discovery: The Brands

Strong local, iconic brands

Solid market positions for future growth Potential for brand extension is high Underinvestment in some segments in the portfolio

32


LOGO

 

Coffee Market is Large and Growing

World retail coffee sales World retail coffee volumes (in € bn) (in mln ton)

CAGR +7.8%

50.2

34.5

CAGR +2.6%

3.8

4.3

2006 2011

2006 2011

Source: Euromonitor retail sales (Fixed 2011 exchange rates), volume data includes R&G and instant coffee

33


LOGO

 

Single Serve Fastest Growth Segment

Growth by segment (CAGR CY06 – CY11, retail value)

30%

25%

7.8% 5.8% 3.3% 1.3%

Roast & Ground Beans

Value

Source: Euromonitor retail sales (Fixed 2011 exchange rates), additional company estimates

8.0% 5.0%

Single Serve Instant

Volume

34


LOGO

 

Signs of Premiumization in R&G

Very clear in US market

Specialty bagged ~30% of grocery sales and growing 8%

Starbucks: 8% CAGR R&G retail sales (‘08? ‘11) Peet’s: 17.7% CAGR R&G retail sales (‘05? ‘10)

Untapped potential in Europe

Source: Annual reports, investor presentations

35


LOGO

 

Instant is Growing

World retail Instant sales (in € bn)

CAGR +8.0%

13.0

19.1

2006

2011

World retail Instant volumes (in mln ton)

CAGR +6.5%

0.7

0.9

2006

2011

Source: Euromonitor retail sales (Fixed 2011 exchange rates)

36


LOGO

 

Opportunity: Instant

Grab “fair share” of instant segment in existing markets

Capitalize on consumer desire for authentic taste

Leverage Via®’s credibility boost for Instant

37


LOGO

 

Tea Market: Growth

World retail Tea sales (in € bn)

CAGR +8.5%

18.7

2006

28.0

2011

World retail Tea volumes (in mln ton)

CAGR +6.5%

1.7

2006

2.4

2011

Source: Euromonitor retail sales (Fixed 2011 exchange rates)

38


LOGO

 

Observations About Tea

We are perfectly positioned to apply the growth lessons from the coffee market to tea

Premiumization

Importance of Variety/Blend/Origin Niche and specialty appeals Sustainability/Naturality

Growth among millenials and men

39


LOGO

 

Creation

Ambition and Strategic Priorities


LOGO

 

Our Ambition

To Become The Number Two Coffee/Tea Company In The World Through Value? added Offerings, Innovations And Expansion.


LOGO

 

Strategic Priority: Value? Added Offerings

Reinvent R&G to grow relevancy

With tea, ascend the value chain toward more premium products

Packaging and segmentation

Commitment to renew entire

product line in 24 months

42


LOGO

 

Strategic Priority: Innovation

Senseo will have a new machine launch annually Boost innovation rate by better leveraging R&D Consumer focused, brand led

Preference mapping to guide innovation

43


LOGO

 

Strategic Priority: Expansion

Move into new markets either through:

Extensions of our own product innovations Selective acquisitions, where appropriate

Geographical focus:

Eastern Europe Asia Latin America

44


LOGO

 

Strategic Priority: Organization

Streamline, shift mindset and focus

Reinforce management: countries, marketing & sales

45


LOGO

 

Strategic Priority: Organization

Streamline, shift mindset and focus

Reinforce management: countries, marketing & sales Build marketing category teams Performance ? driven incentives in place

46


LOGO

 

Strategic Priority: Operations

Best? in? class implementation capability Best practice sharing Reduce time? to? market

47


LOGO

 

Strategic Priority: Financial

Return company margins to historical levels Strategic pricing Working capital optimization (“Run4cash “) Cost optimization (“Fit4growth “) Upgrade financial reporting

48


LOGO

 

Moving Forward


LOGO

 

First Phases of our New Company

Year I: Seedling

Calendar Year 2012

First innovations

Re-launch Senseo Launch cost saving programs Start working capital reduction Organization

50


LOGO

 

Improvements Begins to Take Root

Year I: Seedling

Year II: Flowering

First innovations

Re? launch Senseo Launch cost saving programs Start working capital reduction Organization

Innovations in all categories

Invest in brands

51


LOGO

 

Programs have Matured

Year I: Seedling

Year II: Flowering

Year III: Harvesting

First innovations

Re? launch Senseo Launch cost saving programs Start working capital reduction Organization

Innovations in all categories

Invest in brands

Innovation program at cruising speed Acceleration of top and bottom line growth

52


LOGO

 

The Rebirth of the Blend


LOGO

 

Notes

54


LOGO

 

Notes

55


LOGO

 

Notes

56


LOGO

 

From Field to Factory

Rudy Schwab

Chief Procurement Officer


LOGO

 

Rudy Schwab

Nationality Swiss

Current Position

Chief Procurement Officer (2006)

Previous Experience

Barry Callebaut – 8 yrs Danone – 3 yrs Kraft – 6 yrs

Various Int’l companies – 9 yrs

2

 


LOGO

 

Disclaimer

DE International Holdings B.V. has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. You should read the prospectus in that registration statement and other documents DE International Holdings B.V. has filed with the SEC for more complete information about DE International Holdings B.V. and this offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www. sec.gov . Alternatively, you can obtain a copy of the prospectus by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, . The Netherlands or by sending an email to coffeeteaco@saralee. com These materials do not constitute an offer to acquire securities or a prospectus within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht) . In connection with the admission to trading on NYSE Euronext in Amsterdam, a prospectus approved by the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten or “AFM”) will be made generally available in The Netherlands. Any investor should make his investment decision solely on the basis of the information contained in the prospectus. When made generally available, copies of the AFM? approved prospectus may be obtained at no cost by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, The Netherlands or by sending an email to coffeeteaco@saralee. com .

Some of the information presented herein contains forward ? looking statements. All statements other than statements of historical fact regarding our business, financial condition, results of operations and certain of our plans, objectives, assumptions, projections, expectations or beliefs with respect to these items and statements regarding other future events or prospects, are forward ? looking statements. These statements include, without limitation, those concerning: the anticipated costs and benefits of restructuring actions taken to prepare for the separation; our ability to complete the separation; the timetable for completion of the separation; the expected benefits of the separation; CoffeeCo’s ability to declare and pay the CoffeeCo Special Dividend; our access to credit markets; and the funding of pension plans. These statements may be preceded by terms such as “expects,” “anticipates,” “projects” or “believes. “ In addition, this presentation may include forward ? looking statements relating to our potential exposure to various types of market risks, such as commodity price risks, foreign exchange rate risks, interest rate risks and other risks related to financial assets and liabilities. We have based these forward ? looking statements on our management’s current view with respect to future events and financial performance. These forward ? looking statements are based on currently available competitive, financial and economic data, as well as management’s views and assumptions regarding future events, and are inherently uncertain. Although we believe that the estimates reflected in the forward ? looking statements are reasonable, such estimates may prove to be incorrect. By their nature, forward ? looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward ? looking statements. These factors include, among other things, those listed in the section of the prospectus entitled “Risk Factors. “ We urge you to read the sections of the prospectus entitled “Risk Factors,” “Operating and Financial Review,” “Industry Overview” and “Business” for a discussion of the factors that could affect our future performance and the industry in which we operate. Additionally, new risk factors can emerge from time to time, and it is not possible for us to predict all such risk factors. Given these risks and uncertainties, you should not place undue reliance on forward ? looking statements as a prediction of actual results.

All forward ? looking statements included herein are based on information available to us on the date of this presentation. We undertake no obligation to update publicly or revise any forward ? looking statement in this presentation, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward ? looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout the prospectus.

3

 


LOGO

 

Coffee is Grown Around the Equator

4

 


LOGO

 

There are Two Bean Varieties

Arabica

Washed

Full character, fine aroma and flavor

Unwashed

Mild flavor

Robusta

Strong character, somewhat bitter taste

5

 


LOGO

 

Arabica and Robusta Producing Countries

Arabica & Arabica Robusta Robusta

6

 


LOGO

 

Brazil is the Largest Producer in the World

Arabica Robusta

Others Others

Brazil Vietnam 23% India 13% 7% 45% 39% Mexico 5% 13% 5% Honduras 5% 7% 10% Indonesia Peru 28% Ethiopia Colombia Brazil

Source: Company data

7

 


LOGO

 

Altitude is a Key Quality Driver

1800 m

Strictly high? grown coffees

?Washed Arabicas

1300 m

High grown coffees

?Mainly Arabicas (washed and unwashed)

800 m

Lowland coffees

?Robustas

?Unwashed Arabicas

8

 


LOGO

 

Other Factors Influencing Quality

Climate, rainfalls, drought Soil composition Topography

Nature driven

Harvesting Processing Storage

Human care

9


LOGO

 

Coffee is a Tree Crop

Planting methods and farm structures differ from region to region

Sprouting coffee seed

3? 4 years to get the first fruits

Freshly planted coffee trees

7

 

years to get to full potential

2

 

year old coffee trees

10


LOGO

 

Coffee Farming is a Delicate Process

Coffee blossom

Coffee is a sensitive crop requiring constant attention

Regular cherry ripening and bean development is key for high? quality coffees

Unripe beans

Ripe beans

One complete crop cycle lasts 8? 9 months

11


LOGO

 


LOGO

 

Harvesting

Manual

Selective picking required to ensure regular quality

Mechanical

Only possible on flat lands

13


LOGO

 

Second Most Traded Commodity

Annual crop approx. 8 ? 9 mln tons

Futures market volumes up to 20 times larger NY ICE most important Futures coffee exchange Increasingly seen as an asset class

14


LOGO

 

Quality Drives Price Differences

Low

High

Basis: New York 200 $ cts/lb

80

150

150

210

190

270

270

320

Low Grade Arabicas Unwashed Arabicas Washed Arabicas Premium / Organic / Robustas Certified

Source: Company data

15


LOGO

 

Prices are Not Only Supply and Demand Driven

Supply & demand Weather Funds & speculators Macro economics Currencies Government regulations

16


LOGO

 

Different Factors Have Driven Price Volatility

$ cts/lb 400 350 300 250 200 150 100 50 0

Frost

Drought

Frost

Panic buying

Macroeconomics

1975 1980 1985 1990 1995 2000 2005 2010

Source: NY ICE

17


LOGO

 

Procurement


LOGO

 

We are the Third Largest Roaster in the World

Volume (in bags of 60 kg)

12? 15 mln

~7 mln

2? 5 mln

Companies

Nestlé Kraft

Aldi Lavazza Segafredo Smuckers Starbucks Strauss Tchibo

Source: Company data and estimates

19


LOGO

 

Our Mix is Defined by Local Taste Patterns

Green Coffee Usage Europe Green Coffee Usage Brazil

(Total: ~4 mln bags) (Total: ~3 mln bags)

Washed Unwashed

Robustas

arabicas arabicas

30%

33%

38%

70%

29%

Robustas

Unwashed

arabicas

Source: Company data

20


LOGO

 

Two Buying Centers

Switzerland: Europe/Asia/Pacific

Brazil: domestic + export to EU

75 FTE

Activities:

Buying Quality assurance Blending Supply chain Risk management

21


LOGO

 

Buying Combines Discipline and Intuition

‘Free on Board’, afloat or spot (no farming) Physical and Futures contracts Up to 12 months forward buying Reliable counterparties

22


LOGO

 

We can Procure any Coffee we Want

Direct contacts with farms and cooperatives

Access to specialty coffees, e.g.:

Weekly auction in Mombasa Finca coffees from Nicaragua

Multiple field trips and farm visits of our Zug buyers

23


LOGO

 

Stringent Quality Control Along the Supply Chain

Four? fold quality control of green coffee:

Prior to purchase At port of departure At port of arrival At factory

Quality control:

Visual Food Safety Taste

24


LOGO

 

Constant Focus On Risk Mitigation

Integrated green coffee value chain management

Connected team of experts Short decision ? making lines

Financial risk policy

Closely linked to retail pricing Commodity and currency exposure

Hedging tools in place

25


LOGO

 

Committed to Sustainable Sourcing

14% sustainable certified coffee sourced in 2011 Commitment to achieve 20% by 2015

UTZ CERTIFIED stands for:

Broad scope (People, Planet, Profit) Transparant chain of custody Good fit with the business

26


LOGO

 

Summary

From field to factory is…

Complex

Nature driven Price volatile

Requires multiple skills and discipline Impacts on quality and yield Needs appropriate risk management

Our answer is…

Business intelligence Connected team PASSION

27


LOGO

 

From Factory to Cup

Jos Sluys

VP Research & Development


LOGO

 

Jos Sluys

Nationality

Dutch

Current Position

VP Research & Development (2007)

Previous Experience

Sara Lee – 4 yrs

Akzo Nobel – 7 yrs

TNO – 5 yrs

2

 


LOGO

 

There are Many ‘Best Cups Of Coffee’

4

 


LOGO

 

Most Consumers only Know How Strong they Want their Coffee

Light Mild

Medium Regular

Dark Strong

5

 


LOGO

 

Coffee is More Complex than Wine

Wine 16 key aroma groups

Coffee >50 key aroma groups

6

 


LOGO

 

Consumers are Using all their Senses to Appreciate their Coffee

Crema

Aroma

Mouthfeel

Intensity

Light Mild

Medium Regular

Dark Strong

Acidity

Appearance

Color

Bitterness

7

 


LOGO

 

We use Preference Mapping to Understand Consumer Liking

Unique in? house developed tool and database

8

 


LOGO

 

How Preference Mapping Works

Each time, 300 consumers evaluate up to 20 different coffees

Do you like it? Why?

Offer a panel of taste experts the same set of coffee

Describe the coffee in 28 characteristics

Link consumers’ preferences to coffee characteristics using multidimensional modeling

Create consumer clusters with similar taste preferences

9


LOGO

 

Preference Mapping is Complex and Difficult to Replicate

Test “extreme” products to explore the full range of taste

Match the product to both category and brewing method

Interpretation of the data, consumer context and coffee characteristics

10


LOGO

 

We Identified Five Consumer Clusters

Aromatic Fresh

Delicate Smooth

Balanced Round

Full bodied Sophisticated

Powerful

Intense

11


LOGO

 

Same Clusters in Each Country, Only Size Varies

Full bodied Sophisticated

Powerful Intense

Balanced Round

Delicate Smooth

Aromatic Fresh

NL

15% 25% 25%

20%

15%

D

25% 10% 25%

30%

10%

F

40% 20% 20%

0%

20%

12


LOGO

 

Preference Mapping Provides Huge Advantages

Target innovations

Improve current products Optimize costs Enable consumer taste navigation

13


LOGO

 

Making Many “Best Cups of Coffee” Requires …

SCIENCE

ART

CRAFTSMANSHIP

14


LOGO

 

The Coffee Manufacturing Process

Selecting Blending Roasting Grinding Packing

15


LOGO

 

Blending to Magnify the Strengths of the Individual Components

Ensures consistent in? cup quality balancing raw material variety

Orchestrates the sensorial experiences

The defining factor for truly excellent coffee


LOGO

 

Roasting to Create Aroma and Taste

Water evaporates

Aroma and color develop

Swelling of the bean

Abrupt cooling to avoid over? roasting

17


LOGO

 

We Have the Science, Art and

… Craftsmanship to

Make a “Kilimanjaro” coffee without using Kilimanjaro beans

Make consistently great tasting coffee despite what mother nature provides

Translate consumer preferences into targeted innovations and marketing efforts

Give consumers a new language to explore coffee

18


LOGO

 

We Have Master Blenders

Who are they?

13 Master Blenders (10 for Coffee, 3 for Tea) 400 yrs of combined experience 1,000,000 cups of coffee cupped each Mentor future Master Blenders

Why are they important?

Exceptional sensorial skills

Can assess the qualities of the green beans Orchestrate 80 different blends from 30 components

19


LOGO

 

We Have Highly Skilled Master Blenders

Why this is important to consumers?

Introduce new coffee experiences consumers will love Enjoy their favorite cup of coffee all year round

Why are they important to our future?

Drive the design and innovation of new products Work with an increasing pace of scientific advances Ensure consistency of our core brands

20


LOGO

 

The Buzz on Coffee

Pascal Mignolet Director Mkt Intelligence

Ingrid Baron CMO


LOGO

 

Pascal Mignolet

Nationality Belgian

Current Position

Director Mkt Intelligence (2006)

Previous Experience

Orange/France Telecom – 7 yrs Ipsos – 10 yrs

2

 


LOGO

 

3,500,000,000 cups consumed per day

4

 


LOGO

 

1,000,000,000 cups per day in DE Master Blenders’ footprint

5

 


LOGO

 

Three Main Types of Coffee

Roast & Ground

Instant

Single Serve

6

 


LOGO

 

History: Roast and Ground

Modern coffee was invented by the Turks (1450)

Beans were roast and ground and then boiled with sugar in an “Ibrik”

Coffee spread over Europe after the defeat of the Turkish army at Vienna (1683)

7

 


LOGO

 

History: Roast and Ground

Several European innovations aimed at better separating the grinds from the beverage

Paper filter was invented in 1912 Spread quickly in most coffee markets:

Cheap Effective Convenient

8

 


LOGO

 

History: Instant

Invented in its current form in 1938

Spread with the armies during/after WW II

Adopted as main coffee system in traditional tea drinking countries

Same brewing system as tea Quick Intuitive dosing

9


LOGO

 

History: Instant

In most communist countries, R&G coffee was scarce in quantity and poor in quality Instant coffee was only available in “dollar shops” After 1989, conversion to instant coffee

Modern

Upgrade in quality No equipment needed

Affordable luxury in Eastern Europe

10


LOGO

 

History: Single Serve

Growing popularity since 2000

Perfect fit with modern lifestyles and socio-demographic trends

Convenience Customization Design

11


LOGO

 

Coffee Types Differ Strongly by Geography

North America & Western Europe

N.A. 68% 9% 23%

W.E. % %

44% 24 32

Latin America

2%

66% 32%

R&G Instant Pods

Eastern Europe

% 1%

33% 64

Asia

% 2%

28% 70

Retail value shares. Source: Euromonitor, Nielsen, company estimates

12


LOGO

 

Key Elements Driving Coffee Consumption

History Habits Brewing method Purchasing power Climate

13


LOGO

 

Coffee Consumption Differs Widely by Country

Daily cups per consumer

Source: Company analysis based on U&A, Euromonitor, ABIC and company estimates

8.3

7.0

6.2

5.2

5.0

4.5

4.1 4.0

3.9

3.8 3.6

3.3 3.3

3.1

2.8 2.7

2.6 2.5 2.5

Finland Norway Sweden Denmark Belgium Netherlands Germany Kingdom France Brazil Italy Greece Australia Poland Hungary Republic Russia Spain Portugal United Czech

14


LOGO

 

Some Extremes Explained

Finland:

High purchasing power Cold climate Drip filter

Spain:

High purchasing power Mediterranean climate Napolitana

Russia:

Low purchasing power Continental climate Instant coffee

8.3 cups per capita per day

2.5 cups per capita per day

2.6 cups per capita per day

Source: Company analysis based on U&A, Euromonitor, ABIC and company estimates

15


LOGO

 

Several Motivations to Drink Coffee

Energy

Relax

Social Ritual

With Meal

Routine

Treat

16


LOGO

 

Motives Differ by Time of Day

Energy

55

Breakfast

Energy Meal Relax Treat

38

32

39

33

Morning

Lunch

Afternoon

Evening

(1): % of cups

Source: Company Usage & Attitude survey program, Synovate 2009/2011, average across countries

17


LOGO

 

Coffee is Not Only About Drinking Coffee

Main source of Coffee Enjoyment (1)

Others

Drinking

37%

9%

29%

Brewing

25%

Serving / sharing

(1)

 

% of coffee consumers, 12 country average

Source: Company Usage & Attitude survey program, Synovate 2009/2011

18


LOGO

 

Coffee Consumption Differs by Age

Daily coffee consumption in cups many

none

10 12 12 14 16 18 20 24 26 28

age

51 53 55 57 59 61 63 65 67 69 71 73 75

Source: Company Usage & Attitude survey program, Synovate 2009/2011

19


LOGO

 

Milk and Sugar Play an Important Role in Drinking Coffee

Tempering the intrinsic acidity (milk) and bitterness (sugar) of coffee

In instant countries also used to cool down boiling hot coffee

20


LOGO

 

Milk Usage Varies by Country

% of coffee drank with milk

Australia

83

UK

83

Spain

68

Germany

65

Hungary

60

Czech R.

54

Poland

52

Belgium

50

Netherlands

47

Russia

45

Denmark

34

France

21

Source: Company Usage & Attitude survey program, Synovate 2009/2011

21


LOGO

 

Sugar Usage Varies by Country

% of coffee drank with sugar

Spain

86

Russia

83

Hungary

80

Poland

73

Australia

67

France

62

Czech R.

60

UK

57

Netherlands

45

Germany

39

Belgium

39

Denmark

17

Source: Company Usage & Attitude survey program, Synovate 2009/2011

22


LOGO

 

Young Consumers are more Likely to Drink Milk? Based Coffees

% of consumers that like milk? based coffee beverages (Cappuccino, Latte, etc.)

44

18? 29 years

33

30? 54 years

23

55+ years

Source: Company Usage & Attitude survey program, Synovate 2009/2011

23


LOGO

 

Conclusions

Big global category with important local variations

Instant and R&G are both ‘best cups of coffee’

Ideal cup of coffee varies with moment of day and mood

Milk is an important part of the coffee experience

24


LOGO

 

Rebirth: Renovations

Michiel Herkemij CEO

Ingrid Baron CMO


LOGO

 

Ingrid Baron

Nationality Canadian

Current Position CMO (2011)

Previous Experience IDEO – 11 yrs Electrolux – 6 yrs

2

 


LOGO

 

The Roast & Ground Market


LOGO

 

Roast & Ground: A Large and Stable Market

Global R&G retail sales (in € bn)

CAGR +6.0%

Global R&G retail volumes (in mln ton)

CAGR +1.4%

Source: Euromonitor

5

 


LOGO

 

Western Europe is the Largest Roast & Ground Market

Global R&G retail sales by region (in %, 2011)

Eastern Europe

Asia

Latin America

Western Europe

North America

10%

14%

20%

22%

34%

Source: Euromonitor

6

 


LOGO

 

Multiple Global Competitors, Large and Small

Global R&G retail sales by company (in %)

Other

61%

11%

7%

5%

4% 4% 3%

3% 2%

Tchibo Lavazza Smuckers Melitta

Starbucks

Source: Euromonitor and Company estimates retail value

7

 


LOGO

 

Western Europe Slightly More Concentrated

Western European R&G retail sales by company (in %)

Other

46%

19%

9%

8%

7%

4%

4%

3%

Nestlé

Tchibo

Melitta

Dallmayr

Source: Euromonitor and Company estimates retail value

8

 


LOGO

 

Our Roast & Ground Business


LOGO

 

Roast & Ground Today

Company heritage

€ 1.2 bn business 55% of retail business Present in all DE countries

10


LOGO

 

Sales Development in Line With Market

Retail sales growth Roast & Ground (1)

(1)

 

Indexed FY08 = 100, retail sales Source: Company information

11


LOGO

 

Powerful Brands

Netherlands Spain France France Denmark Brazil Belgium

12


LOGO

 

Strong Positions in Key Countries

Country Our share Our position Netherlands 60% #1 Belgium 52% #1 Hungary 35% #1 Denmark 31% #1 Brazil 22% #1 Spain 20% #2 France 15% #3 Poland 18% #4

Source: Nielsen value sales CY11. Roast & Ground, excluding Single Serve and Instant

13


LOGO

 

High Levels of Brand Awareness/Consideration

Source: Company data

14


LOGO

 

Pace of Innovation has been Modest

Company focus has been on Single Serve Only incremental changes made Limited support of re? launches Historically, lower sense of urgency

15


LOGO

 

Reawaken Roast & Ground


LOGO

 

Strategic Mission:

Revitalize the Roast & Ground Offer

In 24 months, no sku will be unturned

Broader product range New premium offerings New packaging concepts

Engage new

and existing consumers

17


LOGO

 

Key Strategic Guidelines

Optimization

Segmentation

Differentiation

Premiumization

18


LOGO

 

Optimization:

Serve Different Price Points

Early Example

250g

200g

Same size impression

Same number of cups per pack Optimized blend thru grinding Lower cash outlay

(€ 1.99 vs € 2.49)

19


LOGO

 

Optimization: Innovate to Meet Consumer Needs

Desired improvements of R&G consumers (in % of respondents)

More easy opening Better taste Easier dosing Better aroma when brewing Better freshness protection

27%

19%

18%

13%

12%

Source: Usage & Attitude survey program, Synovate 2009/2011

20


LOGO

 

Segmentation:

Address Consumer Taste Preferences

Extend the range to fully cover preference clusters

21


LOGO

 

Segmentation:

Direct Consumers to Taste Experiences

New package iconography:

22


LOGO

 

Differentiation: Bring Excitement to Shelf and Palate

Marketing concepts to bring distinction and flair to renewed brand offers

Flavor extensions

Geographic and ‘vintage’ Dessert Flavors Special Blends Seasonals

Packaging

Simple Elegant Create shelf excitement

23


LOGO

 

Premiumization

Bringing offer into premium arena requires brand proximity to the committed coffee culture:

Quality: Leverage freshness, roasting expertise, bean quality

Intimacy: Authentic, small batch, artisanal qualities keep the brand close

Lifestyle Fit: Amplify brand experience with personalized offerings, suiting style and attitude of target

Holistic Connection: Bind brand to consumer through social connection and social responsibility

24


LOGO

 

Springtime for Capsules


LOGO

 

Single Serve is the Fastest Growing Segment in Coffee

Estimated world Single Serve sales (in € bn)

5.4

CAGR +30%

1.6

2006 2011

Estimated world Single Serve volumes (in mln ton)

191

CAGR +25%

64

2006 2011

Source: Company analysis based on Euromonitor, Nielsen and company estimates

26


LOGO

 

Four Large Global Players

Estimated company shares global Single Serve market (in %)

Others Private Label 3% 8% 6%

9%

50%

24%

Source: Company analysis based on Euromonitor, Nielsen and company estimates

27


LOGO

 

Portioned Espresso Represents 44% of the Single Serve Market

Global Single Serve market by segment (in %)

Long Single 56% Serve

Portioned 44% Espresso

Source: Company estimates

28


LOGO

 

Our Capsule


LOGO

 

Our Capsule Business

Launched in 2010

Proprietary capsule technology

Approx. €100 mln business in 1.5 years

Usable in Nespresso® machines

30


LOGO

 

Proprietary Technology

Patented Developed in house Distinctive capsule

Transparent Optimal aroma release

IP landscaping main enabler

31


LOGO

 

Launched in Four Countries

April 2011 May 2011

April 2010

April 2011

32


LOGO

 

We Have Successfully Extended Our Range


LOGO

 

One of Our Most Successful Launches


LOGO

 

Full? Blown Outdoor and Press Campaign


LOGO

 

Full? Blown Outdoor and Press Campaign

36


LOGO

 

Supported by 360°Online Campaign

37


LOGO

 

Large? Scale In Store Execution

38


LOGO

 

Impressive Sales Growth

Capsules sales by semester (in € mln)

Source: Company data

39


LOGO

 

Success Across Geographies

Quarterly sales since launch

Spain

France

Netherlands

Belgium

Source: Company data

40


LOGO

 

Capsules: The Next Phase

Enhance ownability

Elevate offer

Further improve product quality More distinctive packaging

Maintain excitement through new varieties and blends

Roll? out to selected geographies

41


LOGO

 

Notes


LOGO

 

Notes


LOGO

 

Notes


 

LOGO

Rebirth: Innovations

Michiel Herkemij CEO

Ingrid Baron CMO


LOGO

Disclaimer

DE International Holdings B.V. has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to which this communication relates. You should read the prospectus in that registration statement and other documents DE International Holdings B.V. has filed with the SEC for more complete information about DE International Holdings B.V. and this offering. You may get these documents for free by visiting EDGAR on the SEC website at

ov. Alternatively, you can obtain a copy of the prospectus by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, The Netherlands or by sending an email to offeeteaco@saralee.com

These materials do not constitute an offer to acquire securities or a prospectus within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht). In connection with the admission to trading on NYSE Euronext in Amsterdam, a prospectus approved by the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiele Markten or “AFM”) will be made generally available in The Netherlands. Any investor should make his investment decision solely on the basis of the information contained in the prospectus. When made generally available, copies of the AFM-approved prospectus may be obtained at no cost by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, The Netherlands or by sending an email to offeeteaco@saralee.com

Some of the information presented herein contains forward-looking statements. All statements other than statements of historical fact regarding our business, financial condition, results of operations and certain of our plans, objectives, assumptions, projections, expectations or beliefs with respect to these items and statements regarding other future events or prospects, are forward-looking statements. These statements include, without limitation, those concerning: the anticipated costs and benefits of restructuring actions taken to prepare for the separation; our ability to complete the separation; the timetable for completion of the separation; the expected benefits of the separation; CoffeeCo’s ability to declare and pay the CoffeeCo Special Dividend; our access to credit markets; and the funding of pension plans. These statements may be preceded by terms such as “expects,” “anticipates,” “projects” or “believes.”

In addition, this presentation may include forward-looking statements relating to our potential exposure to various types of market risks, such as commodity price risks, foreign exchange rate risks, interest rate risks and other risks related to financial assets and liabilities. We have based these forward-looking statements on our management’s current view with respect to future events and financial performance. These forward-looking statements are based on currently available competitive, financial and economic data, as well as management’s views and assumptions regarding future events, and are inherently uncertain. Although we believe that the estimates reflected in the forward-looking statements are reasonable, such estimates may prove to be incorrect. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, among other things, those listed in the section of the prospectus entitled “Risk Factors.”

We urge you to read the sections of the prospectus entitled “Risk Factors,” “Operating and Financial Review,” “Industry Overview” and “Business” for a discussion of the factors that could affect our future performance and the industry in which we operate. Additionally, new risk factors can emerge from time to time, and it is not possible for us to predict all such risk factors. Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results.

All forward-looking statements included herein are based on information available to us on the date of this presentation. We undertake no obligation to update publicly or revise any forward-looking statement in this presentation, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout the prospectus.

2


LOGO

Creating the Senseo Sensation


LOGO

Source: Company analysis based on Euromonitor, Nielsen and company estimates 4

Single Serve is the Fastest Growing

Segment in Coffee

Estimated world single serve sales (in € bn)

Estimated world single serve volumes (in mln ton)

CAGR +30%

CAGR+25%

2006 2011 2006 2011

5.4

1.6

191

64


LOGO

Estimated company shares global single serve market (in %)

Others Private Labels

MASTER

BLENDERS Nestle

Source: Company analysis based on Euromonitor, Nielsen and company estimates 5


LOGO

Senseo Today

• 11 years in the market

• € 400 mln business

• 95% of sales in 4 key countries (NL, B, F, D)

• Successfully launched in Spain in 2009


LOGO

Market shares (NL-B-F-D)

Other

Private

Labels

MASTER

BLENDERS

1753

Source: Nielsen, retail sales CY11, additional company estimate 7


LOGO

Four Main Appliance Platforms

MASTER

BLENDERS

TQSSIMO


LOGO

Senseo Dominates Appliance Sales

in Key Markets

Appliance sales (NL, B, F, D)

Nespresso

Dolce Gusto

Senseo

Tassimo

Source: GfK, CY10


LOGO

Senseo Outsells the Other Appliance Platforms in Its Key Markets

Annual appliances sales single serve (in mln units)

Senseo Tassimo Dolce Gusto Nespresso

Source: GfK, 2010, NL-B-F-D


LOGO

26 mln Senseo Machines Being Used

Senseo installed base (in mln units, excl. US)

CY01 CY02 CY03 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11

Source: Company data


LOGO

Solid 4-Year Sales Growth

Retail sales growth Senseo (1)

FY08 FY09 FY10 FY11

(1)

Indexed FY 08 = 100, retail ales Source: Company data


LOGO

Solid Brand KPIs

Brand KPIs—The Netherlands

Awareness Consideration Current buyer Committed buyer


LOGO

Consumers Value Senseo for its Simplicity and Convenience

Drivers of preference (% of consumers)

Simplicity

Convenience

Senseo

Other Looks

Passion Variety

Product

Simplicity Convenience

Nespresso

Dolce

Looks

Source: U&A Research NL 2009


LOGO

Summary

• We are fortunate to play in the growth market

• We are solid but not fully participating in the growth

• Large user base

• Leadership position in single serve machines

• Positive brand imagery

• Strong market position, with potential to take back from PL

15


LOGO

Insights For Future Growth


LOGO

We Can Broaden our Purchase Appeal

Beyond Convenience

Main purchase driver (% of consumers)

Convenience (42%)

Looks (42%)

Product (28%)

Senseo

Dolce Gusto

Nespresso

Source: U&A Research NL 2009


LOGO

We Have an Opportunity to Build Milk as a Consumption Partner

Share of milk in total cups consumed and Senseo sales (in %)

Germany France Netherlands Belgium

% cups consumed with milk

% Senseo sales with milk

Source: U&A survey program, Synovate 2009/2011


LOGO

We Can Build Consumer Loyalty

Through Sampling

• Example: in Germany 50% increase in loyalty

Source: Company data


LOGO

We Must Accelerate our Innovation Rate

2001

2011


LOGO

Senseo Strategy: Creating the Future


LOGO

Re-Launch The Senseo Brand Aggressively

• Institutionalize regular appliance innovation

• Strengthen brand through:

• Improved differentiation

• Segmentation

• Expansion to new countries

• Senseo as master brand for aM high-tech offers

22


LOGO

Strengthen the Brand

• Upgrade taste quality and experience

• Introduce more varieties

• Premiumize offering

• Provide specific offers for defined consumer segments

• Focus investments behind innovations


LOGO

Brick Pack: Brings Basic R&G into the 21st Century with Modernity, Style, Variety


LOGO

L’OR: Makes Range More Competitive by Moving Upscale with Improved Variety


LOGO

Senseo: Aesthetic Captures Brand Essence of Simplicity and Elegance


LOGO

Senseo Base: Upgraded for Better Taste

While Retaining Simplicity


LOGO

Senseo Black: Designed for More Sophisticated Tastes and Palates


LOGO

Senseo Milk: Only 1 Pad Solution

Patented Technology


LOGO

Sarista: Machine/Bean System is Ownable, Flexible, Accessible


LOGO

Sarista Beans: Offer Freshness, High Quality and Convenience


LOGO

R&D: Creating the Future

Jos Sluys

VP Research & Development


LOGO

We Have Organized Ourselves for Growth

• 125 people with a passion for Coffee & Tea

• 12 nationalities

• Deliver innovations (90 people)

• Integrated in category business teams

• Resource deployment in line with business needs

• Project driven and results oriented


LOGO

We Have Organized Ourselves for Growth

• Leading technology platforms (35 people)

• Exceptional technical and scientific expertise

• Entrepreneurial and external oriented

• Aggressive patent strategy

• Leverage innovations synergistically across categories

34


LOGO

Way of Working

Flexible

Focused

Fast


LOGO

Flexible by Working with the Best

Science partners

Global innovators

Integrated suppliers

Strategic alliances

? Build knowledge

? Explore new technologies Generate new innovations

? Reduce cost ?Fast implementation

? Route-to-market


LOGO

Focus on Key Competences

Consumer science

Sensorial profiling (preference mapping)

Technology platforms

Liquid roast Appliances Aroma and taste Innovative packaging


LOGO

We Have a Unique Liquid Roast Platform

Pure, liquid coffee concentrate

50 years of continuous development

High quality coffee, Barista standard

Difficult to replicate, delicate product, sensitive to degradation

Proprietary technology

Packing

Freezing

Roast & Ground

Extracting

Concentrating


LOGO

Recent Breakthrough: Ambient Liquid

Roast

New aroma preservation technology Maintaining pure coffee character Product stable at ambient temperature

• Providing access to ambient distribution channels

• Enabling future innovations building upon high quality and versatility of the liquid format


LOGO

Inventing the Future Senseo Sarista

Consumer insights:

• Aroma is key

• Fresh beans give the best coffee experience

• Varying consumer preferences

Current systems

• ln-cup quality suboptimal

• Cumbersome and expensive

Develop proprietary system that

maximizes freshness


LOGO

Sarista Challenge:

Our inventions (1) Bean packs

• Clicked onto appliance

• Top quality beans

• Stored under nitrogen Precise measuring Cup-by-cup dosing

Maximum Freshness

41


LOGO

Sarista Challenge: Maximum Freshness

Our inventions (2) Non-contamination grinder

• Cup-by-cup grinding

• Optimal grind size

• Full discharge of ground coffee


LOGO

Sarista Challenge: Making it

Non-Refillable

• Bean pack recognition

• Countdown mechanism

• Dosing falls into disuse

Proprietary system further developed with our domestic appliance partner Philips

43


LOGO

Delivering Coffee-Milk Solutions:

Senseo

Consumer insights:

• Perfect cappuccino and cafe latte at home

• Simple and easy to prepare

• Variation

No 1-step single serve solutions on the market Develop proprietary pads, technically solving:

• Low milk powder solubility and dissolving rate

• Clogging of systems due to coffee-milk interaction

_14


LOGO

Design honeycomb-filter combination

Swirling motion inside pad at multiple, specific places

High dissolving rate, clogging avoided

Delivers high flexibility of innovations in flavored cappuccinos

Our Proprietary Solution: One-Step

Cappuccino


LOGO

Fast to Market with Innovations

Conventional stage gating innovation process

Opportunity Concept

Prototype

Technical Supplier solution selection

mplementation

• Long time-to-market

• Risks and failures saved for last


LOGO

Fast to Market with Innovations

Our approach

Get Inspired Go create

Make it happen

Twice as fast in market

• L’Or Espresso Lungo range (4 months)

• R&G new brick product range (6 months)

• New Senseo product range (Q3 12) (9 months)


LOGO

Strong Number 2 Position in Coffee Patent Applications

First filings (2006—July 2010)

250 200 150 100 50

Comp 1

MASTER Comp 2 Comp 3 Comp 4 Comp 5

BLENDERS

Number of Patent applications increased 5-fold vs period 2002—July 2006

Source: Thomson Innovation


LOGO

Unique Proprietary Technology

R&G

Superior taste profiles thru preference mapping

Senseo

Portioned espresso

Patented honeycomb pads Sarista (patents pending)

Patented capsules

Instant

Patented aroma and processing technologies

Liquid roast

Patented aroma, packing and dosing technologies

49


LOGO

Operations: First Impressions

Luc Volatier SVP Supply Chain


LOGO

Luc Volatier

*

Nationality French

• Current Position

SVP Supply Chain (2012)

• Previous Experience GrandVision—3 yrs Numico—6 yrs

Upstream Purchasing Consulting—4 yrs Danone—9 yrs


LOGO

Manufacturing Footprint

*2 process steps split over two locations and move to 1 in CY13

Coffee

RG Roast & Ground L Liquid I Instant

Tea

12 locations

Brazil

Thailand

Australia

A


LOGO

Brazil SP 135

Netherlands Utrecht 55

Belgium 40

Poland_20_

France_20_

Netherlands Joure 20 7

Brazil Bahia 15

Spain 10

Hungary 10 3

Thailand 10

Australia <5

Greece <5


LOGO

Good Fundamentals

• High competency in coffee and tea sourcing

• Solid manufacturing expertise and footprint

• Some re-alignment and optimization has been done

• Supply chain is well organized and ready for the challenge

54


LOGO

Observations

• Very different asset utilization rates and efficiencies

• Available capacity in roasters and grinders to accommodate innovations

• Some bottlenecks in specific processing and packaging

• Majority of new investments will be innovation specific

• Weak link between Operations and the Business


LOGO

Areas for Investigation

• Ways to increase speed to market

• Opportunities to take further costs out

• A plan to drive best practices across the organization

• Concrete actions to drastically reduce working capital

• A road map to develop an end-to-end holistic supply chain


LOGO

Out Of Home: Living the Cafe Culture

Nick Snow COO Out of Home


LOGO

Nationality British

Current Position

COO Out of Home (2006)

Previous Experience Johnson Diversey—4 yrs Unilever -15 yrs

Nick Snow

58


LOGO

Coffee and Tea the Largest Beverage Category Within OOH

Other

Coffee

Juices

Soft Drinks

Tea

Water

Source: European Segment Research Foodstep, Share of OOH non-alcoholic beverage categories (in %, 2011, Europe)


LOGO

OOH Represents 23% of the Global Coffee Market

77%

23%


LOGO

The Market is Relatively Stable

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

CAGR +3%

Source: Euromonitor OOH volumes (mln kg)


LOGO

Business & Institutions are the Largest European Customer Segments

Source: European Segment Research Foodstep, volume segment split, CY11

62

Leisure & other

Petrol stations

Fast food

BaReCa

Hotels & gaming

Education

Healthcare

Business


LOGO

Our OOH Business


LOGO

A Profitable Solid Business

Net sales 606 614 634

Growth vLY n/a 1.3% 3.4%

Adjusted EBIT 102 109 110

Adjusted EBIT margin 16.8% 17.7% 17.3%


LOGO

We are Number Three in a Highly Fragmented European Market

Unbranded

Nestle

Kraft

Lavazza

Branded Others

Source: Company data, excluding coffee shops, market share Europe in % of volume


LOGO

Our Portfolio Covers all Segments of the

Coffee Categor

Espresso

Instant

Liquid Roast

Liquid Roast

Filter

Espresso

Instant

Source: Master Blenders’ share of coffee categories in value


LOGO

Liquid Roast is our Proprietary System

• High-quality coffee

• Concentrated

• Packed in ‘closed7 Bag-in-Box

• Deep frozen to preserve full flavour and aroma

• Ready to use pack = 400 servings

• Compatible only with our machines

67


LOGO

It Provides Major Advantages Over Conventional Coffee Systems

• Low operating cost

• Consistent taste delivery

• Fast dosing, high volume

• No waste, limited cleaning

• Simple to operate

• Hygienically sealed

68


LOGO

A Major Competitive Advantage for High Volume Customers

• Hotels

• Large business

• Hospitals

• Gaming

• Event parks


LOGO

We Have Two

Direct

Consumer brand

Liquid roast & complete portfolio Direct selling & technical service Brand synergies with retail

Scale is profit driver

Strategic partner branded or DE branded

Supply liquid roast product and equipment

Bridge to future retail presence

Liquid roast

Distributor


LOGO

The Direct Model is Most Important

Distributors

Note: ‘Distributors’ in this context means sales in countries where we only have distributors and no physical presence. We also sell through distributors where we have a direct business model

Source: Company data, sales split FY11

71

Direct


LOGO

Distributors are More Profitable

Distributors

Note: ‘Distributors’ in this context means sales in countries where we only have distributors and no physical presence. We also sell through distributors where we have a direct business model

Source: Company data, EBIT split FY11

72

Direct


LOGO

The Direct Business Model


LOGO

Our Business is Highly Concentrated

Denmark

Other

Australi

Spain

Belgium

Germany

Netherlands

Source: Company data


LOGO

The Netherlands: Our Success Model

• 45% market share

• 65,000 customers

• 124,000 coffee machines

• 1,100 employees

• 250 service engineers

• 450 operators

• 200 mln DE branded cups per year

Source: POS Research Foodstep, company data


LOGO

Liquid Roast 50% of Coffee Sales

in the Netherlands

Instant

Source: Master Blenders’ share of coffee categories in value

Liquid Roast

Espresso

Roast & Ground


LOGO

We Have a Unique Operating Model

We are market leaders


LOGO

We Have a Unique Operating Model

Liquid roast is our unique competitive advantage

78

Liquid Roast


LOGO

We Have a Unique Operating Model

We offer a full portfolio to cover all customer needs

Full

Portfolio

79


LOGO

Technical Service to ensure good quality coffee

• Technical service (250 FTE)

Technical service

80


LOGO

We Have a Unique Operating Model

Service organization to deep sell and provide value added services

Operating service (450 FTE)

Route sales(50 FTE)

Value-added services

81


LOGO

Organization focused on the needs of OOH customers

Dedicated OOH Organization (350 FTE)

Customer

Support


LOGO

We Have a Unique Operating Model

Long term customer satisfaction creates loyalty

High Customer Satisfaction & Retention

83


LOGO

40% of Sales is from Value Added Services

Coffee & tea Accessories Equipment & Operation &

spares technical service

Source: Company data, indicative split of sales NL

84_


LOGO

Strong OOH Company Supports Brand Awareness in the Netherlands


LOGO

The Distributor Model


LOGO

We Have Four Major Strategic Distributor Partners

Source: Company data


LOGO

Our Distributor Model Serves

Three Goals

• Leverage liquid technology to drive profitability

• Create a network of strategic partners

• Create brand presence in countries where we do not have a retail brand

88


LOGO

UCC our Strategic Partner in Japan

• Leading branded Coffee Company

€ 1 bn sales

• Highly innovative coffee market

• We provide:

• Liquid roast ingredient & machines

• Sales & technical training

• Key account support

• Marketing assistance

Source: Company data, company website, Factiva, D&B,

89


LOGO

Using Distributors for Brand Visibility -

Example Turkey

• Two distributor partners

• Non coffee roasters

• Complete portfolio

• Leader in 5 star hotels and resorts

• Building DE brand

90


LOGO

Going Forward


LOGO

Further Innovate our Liquid Roast Technology

• Upgrade our Liquid Roast quality to match espresso taste

• Further deploy ambient Liquid Roast to increase distribution and open new channels

92


LOGO

Strengthen Quality Perception

• Upgrade equipment design and appearance existing park

• Innovate consumer interface

93


LOGO

Use OOH Touch Points as Brand Building Tool

Brazil

Spain

94


LOGO

Grow our Business Geographically

• Selectively drive scale in countries with retail presence

• Look for further distribution opportunities

95


LOGO

France: The Growth Engine of W-Europe

Luc Van Gorp GM France


LOGO

Luc Van Gorp

• Nationality Belgian

• Current Position GM France (2010)

• Previous Experience Sara Lee—9 yrs Campbell’s-4 yrs Diageo—3 yrs

2


LOGO

Facts About France

63.1 mln citizens

27.2 mln households

2.3 persons per household 3.9 cups of coffee per day

Source: INSEE, Government of France, Liquid intake monitor

98


LOGO

Third Largest Coffee Market in Europe

4,874

2,920

2,472

1,627

1,244

Germany Russia France Italy UK

Source: Euromonitor retail sales (fixed 2011 exchange rates), € mln

99


LOGO

Room to Grow in Terms of Consumption

Daily cups per consumer

8.3

7.0

6.2

5.2

5.0

4.1

4.0

3.9

3.8

3.6

3.3

3.3

3.1

2.8

2.7

2.6

2.5

2.5

Source: Company analysis based on U&A, Euromonitor, ABIC and company estimates

100


LOGO

A Growing Market

100

103

106

113

127

2007 2008 2009 2010 2011

Source: Nielsen 2011, Retail sales, € mln

101


LOGO

Market Growth is Driven by Single Serve

Avg. Price / kg

% market

2011 vs 2006

Single Serve caps

€28.00

17%

+36%

Single Serve pads

€15.40

22%

+15%

Premium R&G

€10.80

46%

+1%

Mainstream R&G

€5.30

15%

+1%

Source: Nielsen, value share CY11


LOGO

The French have a Distinctive

Coffee Culture

• 48% drink coffee black

• 37% drink coffee black with sugar

• Indulgence and energy are main consumption drivers

• 56% of Roast & Ground is consumed in the morning

• 63% of Single Serve is consumed in the afternoon

• 66% of households has both R&G and Single Serve appliance

103


LOGO

A Highly Branded Market

Other

PL

Nestle

Kraft

MASTER

BLENDERS

Source: Nielsen retail value shares CY11

104

13%

21%

17%

12%

37%


LOGO

France

MASTER

BLENDERS


LOGO

Our Portfolio in 2009

Roast & Ground

Single Serve

Private label

Mainstream

Premium

Pads

106


LOGO

Strategic Decision to Unlock French Market Growth Potential

• The 3 strategic pillars to take full advantage of the great French market opportunity :

• Premiumize Roast & Ground

• Significantly grow Single Serve

• Step up Senseo

• Create super premium portioned espresso in retail

• Improve our trade approach

107_


LOGO

Premiumize Roast & Ground

• Exit Private Label manufacturing

• Stabilize our mainstream Maison du Cafe business

• Grow premium L’Or brand


LOGO

L’Or Premium Business Growth

• Introduce innovations: L’Or Elixir

• Consistent advertising with strong ownable codes

• Qualitative in store promo to stimulate multiple L’Or purchases

109


LOGO

L’Or In Store Activation

110


LOGO

Impressive Results for L’Or R&G

FY09-FY11 Results

2% volume growth

12% sales growth

Record high market share of 14.3%

Source: Company data, Nielsen retail value share MAT Jan 2012

111


LOGO

Significantly Step Up Senseo

Strategy:

• Aggressively build appliance-park penetration

• Extend portfolio

• Focus communication on indulgence & quality

112


LOGO

Aggressively Build Appliance Penetration

• Limited editions

• Strong consumer activation

• Demo’s

• Tastings

• Consumer advertising

• Strong cooperation with Philips France

113


LOGO

Christmas 2011 Limited Edition

Senseo

114


LOGO

Sneak Preview: Limited Edition Mother’s Day 2012

115


LOGO

Strong Results in Appliance Penetration

• Leading Single Serve appliance with 34% penetration

• 10% penetration increase in 2011

• Record high sales in 2011:1.2 mln appliances

• 9 mln appliances sold

since launch in 2002

34%

12%

9%

4%

116


LOGO

Significant Portfolio Innovation

Launch FY10 FY10 FY11 FY11

Consumer Heavy Pure Premium Sustainable

need user loyalty indulgence Black range development

117


LOGO

Key Advertising Messages

• Focus on “indulgence” and “trust”

• Not on “convenience”

• Build on appliance news

118


LOGO

Impressive Results in Senseo Coffee Sales

FY09—FY11

18% volume growth

23% sales growth

Senseo already 30% of Single Serve category

Source: Company data, Nielsen retail value share, MAT Jan 2012

119


LOGO

Create Retail Portioned Espresso Category

• Use strong L’Or equity as brand platform

• Super Premium price positioning

• >200% premium vs retail capsules

• Only 10% price discount vs Nespresso

• No trade promos / no price deals

• Swiftly extend portfolio


LOGO

Successful Launch

• 95% distribution in four weeks

• 4% penetration after 6 months

• Brand awareness at 87% after 6 months

• Market share 10% of single serve

• “Best Innovation” 2010 Nielsen nomination

Source: Company data 2010, Kantar 2010, Nielsen MAT Jan 2012

121


LOGO

Successful Portfolio Roll Out

October 2011:

Lungo and Strong

May 2011:

Premium range

February 2011:

Extension of base

April 2010:

Base Range

122


LOGO

L’Or Espresso Shows Significant Constant Growth Since Launch

L’Or Espresso sales growth (indexed)

236

Apr 10-Aug 10 Sep 10-Feb 11 Mar 11—May 11 Junll-Octll Nov 11—Feb 12

236

206

177

147

100

Source: Company data

123


LOGO

Excellent Point of Sale Execution


LOGO

Improve Our Trade Approach

• Shopper marketing

• Category Captain for Single Serve in all customers

• Central and field sales people driven by value and margin

• Optimized price & promotion management


LOGO

Results of Our Strategy


LOGO

Reached Record Market Share Levels

CAGR+6%

21.2

20.0

18.8

19.1

18.5

2007 2008 2009 2010 2011

Source: Nielsen, Value Share CY11


LOGO

Significantly Improved Volume Mix

k Tons

35.4 363 363 35.8

Premium Mainstream

FY07 FY08 FY09 FY10 FY11

Source: Company data base on GAAP


LOGO

Premiumization Driving Growth

• Sales and margin improvement

• Achieved with a stable 9% A&P/Sales

296

247

231 233

Sales € mln 205

Premium Mainstream

FY07 FY08 FY09 FY10 FY11

Source: Company data, based on US GAAP

129


LOGO

NL: A Multi-Tier Strategy in Action

Harm-Jan van Pelt Regional COO

Sm


LOGO

Nationality Dutch

Current Position Regional COO

Previous Experience Sara Lee -13 yrs Henkel—9 yrs

Harm-Jan van Pelt


LOGO

Facts About The Netherlands

16.7 mln citizens

7.5 mln households

2.2 persons per household

Source: CBS


LOGO

Dutch Coffee and Tea Culture

4.5 cups of coffee per day

• 70% is in home consumption

• 40% of coffee drinks are pure black

• 47% with milk

• 40% of all coffee consumption is in the morning

• 3.1 cups of tea per day

• 80% is in home consumption

• 67% of consumers drink pure tea

• Important moments: breakfast 25%, afternoon 30%

Source: Liquid intake monitor


LOGO

The Coffee Market is Diversified

includes all Single Serve except Espresso Capsules which are shown separately Source: Nielsen, value share, total coffee market incl. instants, total tea market, CY11

134

Instant

Espresso Capsules

Roast & Ground

Beans

Single Serve1


LOGO

The Tea Market is Segmented

Source: Nielsen, value share, total coffee market incl. instants, total tea market, CY11

Well Being Tea

Black Tea

Pleasure Tea


LOGO

Coffee is a Growing Market

FY07 FY08 FY09 FY10 FY11

Source: Nielsen, € mln

546

572

612

619

676

CAGR +5.5%


LOGO

Tea is a Growing Market

104

109

119

CAGR+4:2%

125

123

FY07 FY08 FY09 FY10 FY11

Source: Nielsen, € mln


LOGO

Our Business


LOGO

Tea

Instant 1% 1%

Capsules ^% Beans

Senseo ‘

Roast & Ground

We are Present in all Segments

Roast & Senseo Beans Capsules Instant Tea

Ground

Source: Master Blenders’ share of categories in value, FY11, non-core category excluded 139


LOGO

We Have a Very Strong Market

Position in Coffee

Private Labels

Other

Nestle

Source: Nielsen, FY11


LOGO

We Have an Equally Strong Market

Private Labels

Other

Wessanen

Unilever

Source: Nielsen, FY11

Position in Tea


LOGO

Flat Sales Development over Last Five Years

100 101 99 101

FY07 FY08 FY09 FY10 FY11

Sales The Netherlands (indexed)

Source: Company data, based on US GAAP


LOGO

Company was Managed for Profit

• Lowered A&P spend

• Stopped investment behind Senseo

• No innovations or big introductions

• Limited in store and consumer activation


LOGO

Market Shares have only Declined Slowly

Coffee

52.7%

51.3%

50.1%

48.6%

58.5%

Tea

55.0%

53.8%

52.9%

FY08 FY09 FY10 FY11 FY08 FY09 FY10 FY11

Source: Nielsen, value share, total coffee market incl. instant, total tea market


LOGO

Why We Still Have a 50% Market Share

• Strong Brands

• High Loyalty

• Social Connectivity


LOGO

Douwe Egberts is the Fourth Strongest

Brand in the Netherlands

Brand Asset™ Valuator 2011

1. Google

2. IKEA

3. Coca-Cola

^4. Douwe Egberts _

5. Eftellng

6. Albert Heijn

7. Marktplaats,nl

8. Philips

9. Bol.com

10.

Microsoft


LOGO

Douwe Egberts is the Third Most Sold Brand in Retail

*1 Campina

*2

Marlboro

*3 Douwe Egberts

*4

Coca-Cola

*5

Heineken

#27 Nescafe

#43 Pickwick

Source: GfK, supermarket sales in the Netherlands € mln

147


LOGO

We Have a Strong Savings Program that Has Driven Loyalty Since 1924

• Loyalty points on all DE and Pickwick products

• 65% of Dutch households collect our loyalty points

• Points can be reimbursed for coffee & tea related products

148


LOGO

Consumers Visit our Shops to Collect Gifts

75% of all points redeemed

People collect their gifts at our 13 stores

Result: 550,000 qualitative consumer contacts per year

Website www.de.nl takes 11% of total gifts

149


LOGO

Our Consumers are Very Loyal

150

Loyalty %

51

56

46

23

31

32

Coca Cola

Pepsi

Heineken

Grolsch

Source: GfK


LOGO

Participation is a Cornerstone of

Douwe Egberts

• Douwe Egberts Neighbors’ day connects communities

• Brings people together to activate their neighborhood

• 1.3 mln participants

• Sales up 6% vs last year

• Sponsorship at large events

• 150,000 youngsters

• 300,000 cups of coffee sold

23


LOGO

2011 Changing Course


LOGO

Strategic Decision to Bring Back Growth

• Change Culture

• Focus on value added offerings and innovation

• Premiumization

• Increase marketing support

25


LOGO

Major Turnaround in Culture

• Full replacement of Dutch leadership team

• Inject sense of urgency, accountability and entrepreneurship in the team

• Focus on profitable growth and market share


LOGO

Innovate Tea: Introduced Spices Segment

• Developed a new premium tea segment

with a surprising taste • Launch date: October 2011

Results:

• Total market share 9.3% for new Pickwick segment

• 2.9% market share new variants only

Source: Nielsen, week 4 CY12


LOGO

Launched Dutch Blend

• Premium Black Tea, co-created with consumers

• Launch date: October 2010 Results:

• Black tea segment +4.1% m.s.

• Total tea market +1.3% m.s.

Source: Nielsen, week 4 CY12


LOGO

Coffee: Launched Portioned Espresso

New retail segment

• Launch date: April 2011 Results:

• Awareness 77%

• Market share 5.5% in Single Serve segment in one year

Source: Nielsen, week 4 CY12

100% ARABICA

10

CAPSULES


LOGO

Introduced a New Senseo Fresh Milk-Based Machine

New Senseo innovation with fresh milk compartment in machine to make cappuccino

• Launch date: November 2011

Results:

• Total machine sales December 2011 + 50% vs. 2010

158

Source: Company data


LOGO

Premiumized Coffee: Douwe Egberts Beans

• Beans is the fastest growing segment: +54% vs LY

• Premium Douwe Egberts beans, specially selected for the true coffee connoisseur

• +20% cons, price difference

• Activation date: December 2011

Source: Nielsen and Company data

159


LOGO

Strengthened Category Leadership

• Introduced shopper marketing into the company

• We increased category leadership in the 4 main retailers

• To work jointly in driving category growth

160


LOGO

Rejuvenate DE Cafe’s

• 25 DE cafe’s

• Use cafe’s to activate innovations

• Restyle in line with new brand image

• Rollout in mainstream areas


LOGO

Acquired

• 35 cafe’s

• Connect with early coffee adopters

• Use as laboratory for new coffee experiences

• Leverage knowledge base for new innovations and customer insights

Company

Coffee


LOGO

Initial Signs of Recovery

Coffee

Tea

FY08 FY09 FY10 FY11 FY12 FY12 FY08 FY09 FY10 FY11 FY12 FY12

Ql Q2 Ql Q2

Source:Nielsen, value share, total coffee market incl. instant, total tea market

52.7%

51.3% _ 50.1%

48.6% 48.6% 48.8%

58.5%

55.0% 53% 5290/o 53.3%


LOGO


LOGO

2012: The Year of Acceleration


LOGO

Our Strategic Objectives

• Become the launch platform for all product innovations

• Become the preferred supplier for 100% of the trade

• Utilize our unique loyalty system to create a one-on-one relationship with our consumers

• Use the coffee cafe’s as an innovation laboratory


LOGO

39

March April Sept Oct

2012 2012 2012 2012


LOGO

Brazil: Focus on Profitable Growth

Dantes Hurtado GM Brazil


LOGO

Dantes Hurtado

*

Nationality Brazilian

Current Position GM Brazil (2003)

Previous Experience Best Foods—2 yrs Philip Morris—3 yrs Unilever—24 yrs


LOGO

Brazil is Five Countries in One

North Pop.: 16 mln $6,960/capita,

West Pop.: 14 mln $13,910/capita

Northeast Pop.: 78 mln $6,690/capita

SP AND RIO * Pop.: 58 mln $16,150/capita

! South Pop.: 28 mln $12,460/ca pita

4,400 km

Source: IBGE 2010 Census and Company Estimates


LOGO

Sao Paulo and Rio are 44% of the Economy

North

Northeast

SP&Rio

South

Source: IBGE 2010 Census and Company Estimates

West


LOGO

The Brazilian Coffee Market


LOGO

USA Germany Brazil Japan Russia France

Brazil is the Third Largest Coffee Market

$bn

9.1

6.9

6.6

5.4

4.1

3.5

Source: Euromonitor 2011


LOGO

Growing Steadily

Coffee Consumption (billions of cups)

98

165

236

CAGR+3.6%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010

Source: ABIC 2011


LOGO

With Potential for Further Growth

Daily cups per consumer

Source: Company analysis based on U&A, Euromonitor, ABIC and company estimates

8.3

7.0

6.2

“ 5.0

4.5

? 4.1 4.0

3.8 3.6

Li 3.3. 3.1

2.8 2.7 2.6 2.5 2.5


LOGO

Coffee is Part of our Daily Routine

• 95% of people drink coffee

• Children drink coffee with milk from the age of 3

• 40% of total coffee is consumed during breakfast

• 50% with milk

• 91% with sugar

Source: U&A study


LOGO

We Drink Mainly Roast and Ground

Instant Beans

Single Serve

Roast & Ground

Source: Nielsen 2011, retail sales value


LOGO

Roast and Ground is Premiumizing

Premium 6.70 11% +22%

Mainstream 5.20 83% +1%

Economy 4.40 6% (33)%

Source: Nielsen 2011, R&G coffee value share


LOGO

Four Large Players and Many Locals

Other

(1,200 players)

Source: Nielsen 2011, Retail value share


LOGO

Leaders are Geographically Focussed

Source: Nielsen 2011, total coffee value share

SP and Rio South and SP Northeast and

Metro Inland Others

(46%) 21% 9%

20% 7% 28%)

12% (19%) 2%

4% 10% 5%


LOGO

Brazil

MASTER

BLENDERS


LOGO

Our Brand Portfolio

Source: Company data

182

Do Ponto Others

Caboclo

Damasco

Moka

Pilao


LOGO

Pilao is the Biggest Coffee Brand in Brazil

• The strong coffee of Brazil1

15% national share (40% in SP and Rio)

55% top of mind

47% loyalty

10% premium price

PIIAO

O Cafe Forte


LOGO

Caboclo: Tradition and Heritage

• The country flavor in your home’

• 5th largest brand

• 7-8% in Sao Paulo and South

• Since 1930


LOGO

Damasco: A Valuable Acquisition

• Acquired November 2010

• To strengthen the presence in the South

• Leader in Parana state (40% of the South)

• 10% premium price

• OOH presence


LOGO

Presence Across Regions and Segments

SP and Rio SP Inland and Northeast and

Metro South Other

Premium

Mainstream

Economy


LOGO

State of the Art Factory in Jundiai

• Operating since 2006

• One of the largest coffee factories in the world

• 135,000 tons/year

• High technology equipment

• ISO 14.000 certified

• Process will be carbon neutral as of Apr’12


LOGO

100

110

126

127

135

Organic: +4%

With acquisitions: +8%

Our Sales are Growing

FY07 FY08 FY09 FY10 FY11

Source: Company data, in BRL, indexed, based on US GAAP


LOGO

Our Mainstream is Growing

Net Sales

Premium

Mainstream

Economy

FY07 FY08 FY09 FY10 FY11

31% 27% 28% 27% 24%

Note: Acquisitions excluded

Source: Company data, in BRL, based on US GAAP

65%

69%

69%

70%

74%


LOGO

Our Strategy

Focus growth on Sao Paulo and Rio Metro Maintain position in the rest of the country


LOGO

Sao Paulo and Rio Metro are the Most Affluent Areas

• Highest income region

• Population 32 mln, with 40% AB class

• Higher prices than average (111 Rio, 102 SP)

• Pilao grew 2x faster than the market over the last 3 years

191


LOGO

• 50% of our sales

• Higher margins

Sao Paulo and Rio Metro are Important and Profitable for us

SP and Rio SP Inland Northeast

Metro and South and Others

GP index 100 88 65


LOGO

Strategy for Sao Paulo and Rio Metro

• Fortify the Economy range

• Launch value added propositions and premiumize

• Innovate, starting with Senseo

• Extend presence in Out of Home

• Take trade to the next level


LOGO

Fortify the Economy Range

• Position range correctly against price competition

• Rebuild distribution

• Get fair share of shelf space


LOGO

Started Launching Value Added Line

Extensions

Mild and more aromatic Ideal for the summer season Launched October 2009

Intense and extra-dark Strengthens brand positioning ‘The strong coffee of Brazil’ Launched March 2010


LOGO

Innovation: SP and Rio, the Perfect Region for Senseo

• Single Serve starting to emerge

• Nespresso and Dolce Gusto already launched

• 4.4 mln high income households (Sao Paulo and Rio metro)

• Smaller (3.3 persons/HH) family size seeking convenience

196


LOGO

Senseo: Full Roll-Out in 2013

Encouraging market test results

• 62,000 machines during test period

• 56% “definitely buy” intention

• High output per machine

• Capturing critical breakfast consumption

• Price/cup 9x higher than regular coffee


LOGO

Extend Presence in OOH

• Three pillars:

• Liquid roast

• Espresso operating servic

• Branding

• Drinking experience

• Selective M&A


LOGO

Liquid Roast as our Entry Point

• Pilao Cafitesse in leading hotels

CAFITESSE

I

FASANO

S O F I T E L_

luxury hotels CuarujA Jequitimar

O Sol Mel id

HOTELS & RESORTS

HOTELS & RESORTS

ES rANPJ .AZA

HOEtllfilmm AlITi Br killtil*.

ATLANTIC A

HOTFLS I NTFR NATIONAL

NOVOTEL

GOLDEN TULIP

HOTfLS . SUITES ? RESOHTL

199


LOGO

Building Pilao Presence in Padarias

• Espresso in 156 padarias


LOGO

Building Pilao Presence in Coffee Shops

• 91 coffee shops


LOGO

Taking Trade Management to the Next Level

• From ‘category captain” to ‘shopper marketing expert7 at WalMart, Carrefour and Casino

• Leverage our Cash & Carry position to expand national distribution

• Perfect store program


LOGO

‘A Perfect Store’


LOGO

Like France in 2000

We are.

• refreshing and premiumizing our R&G base

• launching Senseo

• building strong trade partnerships

. while developing an OOH presence


LOGO

Australia: An Instant Success Story

Lara Brans GM Australia


LOGO

Nationality Dutch

Current Position GM Australia (2007)

Previous Experience Sara Lee -10 yrs VODW Marketing—6 yrs

206

Lara Brans


LOGO

Our Instant Success Story ‘Down Under’

• Coffee market

• Our business & brands

• Growth strategy

• Our results


LOGO

Facts About Australia

22.8 mln citizens

8.6 mln households

2.6 persons per household


LOGO

Moderate Coffee Consumption

Daily cups per consumer

Source: Company analysis based on U&A, Euromonitor, ABIC and company estimates


LOGO

Mainly an Instant Coffee Market

Source: Aztec Scan Data 2011

210

81%

19%


LOGO

A Unique Coffee Culture

• In home:

• 55% of coffee consumption is in the morning

• 83% drink coffee with milk and 67% with sugar

Source: Company data


LOGO

A Unique Coffee Culture

• Out of Home:

• Emerging boutique coffee cafe’s


LOGO

A Growing Coffee Market

2005 2006 2007 2008 2009 2010 2011

Source: Aztec Scan Data Jan 2012, AUD mln

573

652

693

767

835

835

868

CAGR~


LOGO

A Concentrated Branded Market

Source: Aztec Scan Data Jan 2012, Value Shares

Cantarella Group

Nestle

Other

PL


LOGO

The Instant Market is Premiumizing

Avg. CAGR

% market

Price/cup 2002—2011

Single serve mixes $ 0.37 25% +24.8%

Premium $0.16 35% +11.7%

Mainstream $0.10 34% (0.3)%

Economy $0.06 6% (6.3)%

Source: Aztec Scan Data Jan 2012, AUD


LOGO

Australia

MASTER

BLENDERS


LOGO

Harris: our Mainstream R&G Brand

from Down Under

• 12% of sales

• 17% market share R&G

• Australian heritage

• Locally roasted

• Over 128 years old

Source: Company data, Aztec Scan Data Jan 2012


LOGO

Moccona: the Premium Instant Brand

from Europe

• 88% of sales

• 29% instant market share

• European heritage

• Iconic jar

• 10% price premium

• Imported from NL

• High loyalty 52%

Source: Aztec Scan Data Jan 2012, Company data

218


LOGO

We were a Small Player 11 Years ago

• Nescafe market leader

• Little differentiation and variety in market

• Mainly lower quality coffees

• Moccona offered two qualities: mainstream and premium

Source: Aztec Scan Data Jan 2012, Moccona value share of the instant market CY99


LOGO

Our Growth Strategy: Drive Value and Increase Margins

• Premiumization

• Focus on better quality coffee

• Value growth

• Margin focus

• Trading consumers up in $/cup


LOGO

We Extended and Premiumized

our Portfolio

Base range

“Every Day Classic”

AUD 14 cts/cup 3 variants


LOGO

We Extended and Premiumized

our Portfolio

Base Inspirations

range range

AUD 14 cts/cup AUD 15 cts/cup 3 variants 3 variants

“Every Day Classic”

“Escape”


LOGO

We Extended and Premiumized

our Portfolio

Base Inspirations Gourmet

range range range

AUD 14 cts/cup AUD 15 cts/cup AUD 21 cts/cup 3 variants 3 variants 3 variants

“Every Day Classic”

“Escape”

“Indulgence”


LOGO

We Extended and Premiumized

our Portfolio

Base Inspirations Gourmet Mixes

range range range range

AUD 14 cts/cup AUD 15 cts/cup AUD 21 cts/cup AUD 51 cts/cup 3 variants 3 variants 3 variants 11 variants

“Every Day Classic”

“Escape”

“Indulgence”

“Your Moment”


LOGO

We Built Strong Trade Relationships

• Effective pricing & promotional management

• Thorough promotional analysis

• Established partnerships with top 3 customers, driving growth via joint customer plans

coles

Woolworths


LOGO

We Claimed Category Captain Position

• Credible coffee experts across all segments

Leverage on premium brand positioning

Extensive shopper insights translated into shelf navigation tools and displays

226


LOGO

We Build Very Consistent Brand Positioning

• 1989: Rolls

• 2009: Cinderella

• 2012: Key


LOGO

Our Results


LOGO

Double-Digit Top-line Growth with Consistent High Margins

FY06 FY07 FY08 FY09 FY10 FY11

Source: Company data, indexed sales, based on US GAAP

100

116

124

147

160

171

CAGK ,__+11.3%^


LOGO

Growth Through Premiumization

100

116

124

147

160

171

Premium

Mainstream

FY06 FY07 FY08 FY09 FY10 FY11

Source: Company data, indexed sales, based on US GAAP


LOGO

Strong Market Share Development

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Source: Aztec Scan Data Jan 2012, value shares

13%”

23%


LOGO

The Way Forward


LOGO

Keep Momentum Going

• Keep leadership in premium instant

• Continue to add local & global innovations

• Continue to claim category captainship as coffee expert


LOGO

Extend Premiumization into R&G

Extend into upper premium R&G

• Launch of our OOH Piazza d’Oro cafe brand into Retail

Leverage OOH & Retail

SERVED IN ALL GOOD CAFES.

AND NOW IN ALL GOOD HOMES


LOGO

Notes


LOGO

Notes


LOGO

Notes


LOGO

Notes


LOGO


LOGO

Michel Cup

Nationality

Dutch

Current Position

CFO (2011)

Previous Experience

Provimi – 1 yrs

Akzo Nobel – 2 yrs

Numico – 8 yrs

Deloitte – 6 yrs


LOGO

Disclaimer

DE International Holdings B.V. has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (SEC) for the offering to whichthis communication relates. You should read the prospectus in that registration statement and other documents DE International Holdings B.V. has filed with the SEC for more complete information about DE International Holdings B.V. and this offering. You may get these documents for free by visiting EDGAR on the SEC website at http://www.sec.gov. Alternatively, you can obtain a copy of the prospectus by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, The Netherlands or by sending an email to coffeeteaco@saralee.com.

These materials do not constitute an offer to acquire securities or a prospectus within the meaning of the Dutch Financial Markets Supervision Act (Wet op het financial toezicht). In connection with the admission to trading on NYSE Euronext in Amsterdam, a prospectus approved by the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten or “AFM”) will be made generally available in The Netherlands. Any investor should make his investment decision solely on the basis of the information contained in the prospectus. When made generally available, copies of the AFM approved prospectus may be obtained at no cost by writing to DE International Holdings at: DE International Holdings, Attn: Investor Relations, Vleutensevaart 100, Utrecht, 3532 AD, The Netherlands or by sending an email to coffeeteaco@saralee.com.

Some of the information presented herein contains forward looking statements. All statements other than statements of historical fact regarding our business, financial condition, results of operations and certain of our plans, objectives, assumptions, projections, expectations or beliefs with respect to these items and statements regarding other future events or prospects, are forward looking statements. These statements include, without limitation, those concerning: the anticipated costs and benefits of restructuring actions taken to prepare for the separation; our ability to complete the separation; the timetable for completion of the separation; the expected benefits of the separation; CoffeeCo’s ability to declare and pay the CoffeeCo Special Dividend; our access to credit markets; and the funding of pension plans. These statements may be preceded by terms such as “expects,” “anticipates,” “projects” or “believes.”

In addition, this presentation may include forward looking statements relating to our potential exposure to various types of market risks, such as commodity price risks, foreign exchange rate risks, interest rate risks and other risks related to financial assets and liabilities. We have based these forward looking statements on our management’s current view with respect to future events and financial performance. These forward looking statements are based on currently available competitive, financial and economic data, as well as management’s views and assumptions regarding future events, and are inherently uncertain. Although we believe that the estimates reflected in the forward looking statements are reasonable, such estimates may prove to be incorrect. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. These factors include, among other things, those listed in the section of the prospectus entitled “Risk Factors.”

We urge you to read the sections of the prospectus entitled “Risk Factors,” “Operating and Financial Review,” “Industry Overview” and “Business” for a discussion of the factors that could affect our future performance and the industry in which we operate. Additionally, new risk factors can emerge from time to time, and it is not possible for us to predict all such risk factors. Given these risks and uncertainties, you should not place undue reliance on forward looking statements as a prediction of actual results.

All forward looking statements included herein are based on information available to us on the date of this presentation. We undertake no obligation to update publicly or revise any forward looking statement in this presentation, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout the prospectus.


LOGO

Ready to Operate Stand Alone

Teams in place

Systems separated

Started to simplify processes

Stand alone financials prepared


LOGO

Financial Reporting Objectives

Transparency

Comparability

Minimize volatility


LOGO

Understanding the Carve Out


LOGO

Understanding the Carve Out

1. Impact stand alone reporting

2. Conversion to IFRS Main Impacts

3. Minimize the volatility of adjusted EBIT


LOGO

1. Impact Stand Alone Reporting

• Carve out financials reflect the ongoing business

• A portion of Sara Lee corporate unallocated costs included

• Inherited liabilities reflected on the Balance Sheet


LOGO

2. Conversion to IFRS

Main Impacts

• Pensions:

• Reset actuarial gains/losses to zero within equity

• Future actuarial gain/losses remain in equity

• Impact of asset ceiling test reflected in equity

• Currency Translation Adjustments zero as of transition date


LOGO

3. Minimize the Volatility

of Adjusted EBIT

• Reclassification from adjusted EBIT to financial income and expense:

Pension interest costs and expected return on pension assets

Mark to market of currency derivatives on raw material purchases

No impact on net result or cash flow


LOGO

3. Minimize the Volatility of Adjusted EBIT

Gains/(losses) reflected in the reported segment

results by Sara Lee:

(€mln) FY 2009 FY 2010 FY 2011

Pension interest costs and expected return on pension assets 5 6 17

Mark to market of currency derivatives on raw material purchases (6) 23 (33)

(1)

30 (16)


LOGO

Carve Out Financials Explained – FY 2011

Reported segment results by Sara Lee € 358 mln *) € 16 mln

3. Minimize the volatility of adjusted EBIT

Pensions (€ (17) mln)

Mark to market (€ 33 mln)

*) Equivalent of $ 489 mln as reported in full year earnings release Sara Lee

2. Conversion to IFRS € 8 mln € (19) mln

1. Impact stand alone reporting

Allocated Sara Lee corporate costs (€ (25) mln)

Impact unrealized commodity derivatives (€ 6 mln)

Adjusted EBIT IFRS as reported in F 1 € 363 mln


LOGO

Comparable Baseline FY 2011


LOGO

Comparable Baseline FY 2011

• Stranded costs

• Related to divestments H&BC and Bakery prior to spin

• Annualized € 30 mln*

• Partially reflected in the first half 2012 results of Coffee & Tea Segment by Sara Lee

• Actions implemented to phase out

* Previous Sara Lee guidance of total Sara Lee stranded costs ($ 50 60 mln) included approximately € 20 mln for Coffee & Tea Segment


LOGO

Comparable Baseline FY 2011

• Additional non allocated corporate overhead costs

• Needed to operate as stand alone public company

• Annualized € 10 mln

• Total non allocated corporate overhead costs for

DE Master Blenders expected to be € 43 mln

annualized after spin*

*

2011 non allocated corporate overhead costs for DE Master Blenders € 33 mln


LOGO

Financial Impact

Comparable Baseline FY 2011

Adjusted EBIT IFRS as reported in F 1 € 363 mln

€ Stranded costs (30) mln

Additional non allocated corporate overhead € (10) mln

Baseline adjusted EBIT DE Master Blenders € 323 mln

14.0%

12.3%


LOGO

Going Forward EBIT Margins Will Return to Historical Levels

Mid-term target:

Adj. EBIT Margin

15% - 17%


LOGO

The Financials Explained


LOGO

Three Business Segments

Netherlands, Belgium, France, Denmark,

Greece, Germany, UK, Spain

Brazil, Hungary, Czech Republic, Poland,

Australia, Thailand and Russia Global

Retail Western Europe

Retail Rest of World Out of Home

Corporate overhead costs

Green coffee export 3rd parties


LOGO

Green Coffee Export will be

Limited to a Minimum Going Forward

• Non strategic; ancillary to the business

• Profitability driven by tax benefits,

ended January 1, 2012


LOGO

FY 2011 Explained

(€mln) FY 2011

Net sales 2,602

like for like growth*) 10.1%

Gross profit 985

as a % of sales 37.9%

A&P (138)

as a % of sales (5.3%)

Other usual SG&A (484)

as a % of sales (18.6%)

Adjusted EBIT 363

Adj. EBIT margin 14.0%

*) Calculated at a constant exchange rate and adjusted to eliminate the 53rd week and acquisitions during the period


LOGO

Financials FY 2009 – FY 2011

(€mln) FY 2009 FY 2010 FY 2011

Net sales 2,235 2,315 2,602

like for like growth N/A (0.9%) 10.1%

Gross profit 901 969 985

as a % of sales 40.3% 41.9% 37.9%

A&P (118) (132) (138)

as a % of sales (5.3%) (5.7%) (5.3%)

Other usual SG&A (428) (466) (484)

as a % of sales (19.1%) (20.2%) (18.6%)

Adjusted EBIT 355 371 363

Adj. EBIT margin 15.9% 16.0% 14.0%


LOGO

Top Line Growth FY 2011 Driven by

Pricing and Green Coffee Export Business

• Pricing +6.5%

• Export +4.3%

Like for like

growth

10.1%

• Mix/Volume/Other (0.7%)


LOGO

Increased Commodity Prices not Fully

Compensated by Pricing

• Pricing € 143 mln

• Commodities € (182) mln

• Mix/Volume/Other € 55 mln

GP growth

€ 16 mln


LOGO

Performance by Segment – FY 2011

(€mln) Retail WE Retail RoW OOH Non

Allocated* Total

Net sales 1,125 655 634 187 2,602

Reported growth 6.8% 15.0% 3.4% N/A 12.4%

Adjusted EBIT 218 51 110 (16) 363

Adj. EBIT margin 19.4% 7.8% 17.3% N/A 14.0%

*Includes non allocated corporate overhead costs of € 33 mln


LOGO

Adjusted EBIT Margin per Segment

FY 2009 FY 2010 FY 2011

Retail Western Europe 24.5% 24.0% 19.4%

Retail Rest of World 3.8% 7.2% 7.8%

Out of Home 16.8% 17.7% 17.3%

Total 15.9% 16.0% 14.0%

• WE: strong margins; FY 2011 commodities not yet fully offset

• RoW: margins low but trending up despite commodity prices

• OOH: solid performance despite market challenges


LOGO

Our Way Forward


LOGO

Value Drivers – Net Sales

Net sales

• Innovations

• Product and country mix

• Trade spend optimization

• Volume growth


LOGO

Investments Needed to Deliver Growth

FY 2013/2014

4% 5%

FY 2015

3% 4%

Capex as a % of sales


LOGO

Value Drivers – Gross Profit

Gross profit

• Premiumization

• Product and country mix

• Strategic pricing

• Fit 4 Growth – cost savings


LOGO

Managing Gross Profit

• Pricing

• Innovation and shift towards higher margin products

• Centralized risk management

• Hedging coffee prices


LOGO

Gross Profit

Fit 4 Growth – € 40 mln Savings

Blend 0 – 25 mln

Optimization

Optimize Supply

Chain

€ 15 – 20 mln

The investments needed to realize these savings are included in the Capex guidance


LOGO

Value Drivers A&P and

Other Usual SG&A

A&P

• Increase A&P spend in retail

• Increase effectiveness A&P spend

Other usual

SG&A

• Fit 4 Growth – cost savings

• Simplification


LOGO

Other Usual SG&A

Fit 4 Growth – € 25 mln Savings

€ 20 – 30 mln

IT Optimization

Streamline

Organization

By FY 2015

DE Master Blenders will not incur any additional costs to realize these savings


LOGO

Overview Value Drivers

Net sales

• Innovations

• Product and country mix

• Trade spend optimization

• Volume growth

Gross profit

• Premiumization

• Product and country mix

• Strategic pricing

• Fit 4 Growth cost savings

A&P

Other usual

SG&A

• Fit 4 Growth cost savings

• Simplification


LOGO

Virtuous Circle of Growth


 

LOGO

Going Forward Sustainable Profitable Growth

Mid-term targets:

Net Sales Growth 5%—7%

Adj. EBIT Margin 15%—17%

37


 

LOGO

 

Effective Tax Rate

ETR stated in the IFRS financial statements impacted by carve out accounting

Initiatives started to optimize ETR on a stand-alone basis:

Mitigate repatriation tax

Implement new business model

Guidance on ETR FY2013 will follow after spin

ETR FY 2014/2015: ~25%

38


 

LOGO

 

Significant Cash Opportunities in Operating Working Capital

As a % of sales

FY 2009 15.7%

FY 2010 16.7%

FY 2011 18.3%

Target FY 2015: ~10%

Target: ~5%

39


 

LOGO

 

Significant Financial Flexibility to Grow the Business

Intended levels at separation

Gross Debt

€ 550 mln

Net Debt

€ 400 mln

40


 

LOGO

 

Dividend Policy

Dividend policy is determined by DE Master Blenders growth profile

Intention is to reach a dividend pay-out ratio of around 30% in the medium term

41


 

LOGO

 

Conclusions


 

LOGO

 

Transformation

FROM TO

Managed for profit

Profitable growth

Limited focus on cash

Cash management

Strong assets underutilized

Unlock their full potential

Complex structures and processes

Simplification

43


 

LOGO

 

Solid Financial Platform to Support our Growth

Profit & Loss

Sales growth mid-term: 5% - 7%

Adj. EBIT margin mid-term: 15% - 17%

Cash flow

Capex FY 2013/2014: 4% - 5%

Capex FY 2015: 3% - 4%

OWC FY 2015: 10% of sales

ETR FY 2014/2015: ~25%

Balance Sheet

Intended net debt as of spin: €400 mln

44


 

LOGO

 

Notes

45


 

LOGO

 

Notes

46


 

LOGO

 

Notes

47


 

LOGO

 

Notes

48