CONFIDENTIAL

HappyHour Co. Company Profile

Notes on HappyHour Co.

Key financials(US$Millions)
Overview
Metric FY 18 FY 19 FY 20
HappyHour Co. is a well-established producer and marketer of
beer, spirits, and non-alcoholic beverages, with integrated Revenue 900 961 1,071
operations that include manufacturing, distribution, and direct
sales. EBITDA 225 250 300
Geographical Presence:
•Core markets: Singapore, Malaysia, China
•Expansion: Recently entered China; new bottling facilities being NPAT 135 153 193
planned in Cambodia
•Manufacturing:
• Owned: Singapore and China
EBITDA Breakdown by Segment:
• Outsourced: Malaysia (via Brew Co.) Segment FY 18 FY 19 FY 20
Founded in 1975 by Ms. Happy, the company has grown into the
Beer 100 110 135
#1 player in beer and spirits in Singapore and Malaysia, and
leads in non-alcoholic beverages in Malaysia.
Growth Strategy: Spirits 75 85 105
•Targeting emerging markets in Southeast Asia
•Investing in new facilities and expanding distribution network
Non-alcoholic 50 55 60
•Focused on premium spirits and healthy beverage options beverages

Shareholders
Indicative valuation:
Family Stake(%)
Latest EBITDA (FY20): US$300 million
Happy Family 60% Market EV/EBITDA multiples (industry): 10.0x – 11.5x
Valuation Range:
•Low Case (10.0x) → US$3,000 million
Hour Family
Source: 20%
•Mid Case (11.0x) → US$3,300 million
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•High Case (11.5x) → US$3,450 million
Co. Family 20% •Press reports quote a preliminary valuation of US$3,500 million,
aligning with the high end of this range.
 CONFIDENTIAL

Overview of auction process and key workstreams

Date Event Key workstreams

Access to Information Memorandum and Documents Provided:
related documents via online data room Information Memorandum
March 19, 2020
Vendor Due Diligence Reports
Financial Forecasts (All on a strictly no-reliance basis)
Q&A Process:
Round 1: April 9-13,2020 Q&A window for indicative bid-related Max 20 questions per bidder
Indicative Bid queries Anonymous responses shared with all bidders via data room
Phase All communication goes through SellerAdvisorCo

May 13, 2020 Deadline to submit Indicative Bid

1. Internal Investment Committee Preparation

•Build internal case for valuation
•Secure board/IC approval for bid submission
Shortlisted bidders notified and Process
•Align funding sources and legal structure
Letter Two issued
Late May 2020 2. Valuation & Financial Modeling
•Analyze provided financials (FY18–FY20)
•Apply market EV/EBITDA multiples (10x–11.5x)
•Model synergies and integration scenarios
3. Due Diligence Planning
•Prepare Q&A questions
•Define scope of deeper diligence for Phase 2
•Outline required documents and site visit expectations
4. Legal & Regulatory Analysis
Round 2: Final •Identify regulatory hurdles in Singapore, Malaysia, China
Bid Phase •Review corporate structure, potential liabilities, licenses
Late July 2020 Final Bids due
5. Integration Planning
•High-level view of post-deal integration (systems, people, operations)
•Identify areas for synergy (procurement, distribution, branding)
6. Communications & Governance
•Manage internal confidentiality
•Appoint key points of contact for advisor coordination
7. Bid Document Preparation
•Draft and review the Indicative Bid
•Finalize assumptions, narrative, pricing and submit on time
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