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As Of Filer Filing For·On·As Docs:Size Issuer Agent 10/07/02 Pepsi Bottling Group Inc SC TO-T 18:1.0M Pepsi Gemex SA de CV RR Donnelley/FA Bottling Group LLC Pepsi Gemex SA de CV PBG Grupo Embotellador Hispano-Mexicano, SL |
Document/Exhibit Description Pages Size 1: SC TO-T Tender Offer Statement 6 41K 2: EX-99.A.1 U.S. Offer to Purchase 88 455K 11: EX-99.A.10 Press Release 2 14K 12: EX-99.A.17 Summary of the Mexican Offer to Purchase 1 8K 3: EX-99.A.2 Form of Gds Letter of Transmittal 13 68K 4: EX-99.A.3 Form of Broker Dealer Letter 3 21K 5: EX-99.A.4 Form of Client Letter 4 19K 6: EX-99.A.5 Notice of Guaranteed Delivery 3 19K 7: EX-99.A.6 W-9 Guidelines 4± 18K 8: EX-99.A.7 Summary Advertisement 6 36K 9: EX-99.A.8 Audited Consolidated Financial Statements 53 296K 10: EX-99.A.9 Gemex 6-K 12 36K 13: EX-99.B.1 Senior Credit Agreement 75 277K 14: EX-99.C.1 Salomon Smith Barney Inc. Fairness Opinion 3 16K 15: EX-99.C.2 Presentation to the Board of Directors HTML 34K 16: EX-99.D.1 Agreement to Tender 21 70K 17: EX-99.D.2 Agreement to Tender 35 111K 18: EX-99.D.3 Escrow Agreement 9 36K
| PRESENTATION TO THE BOARD OF DIRECTORS |
Exhibit (c)(2)
CONFIDENTIAL
PEPSI-GEMEX HISTORICAL STOCK PRICE PERFORMANCE
1
PEPSI-GEMEX VALUATION ANALYSIS
SUMMARY OF VALUATION METHODOLOGIES PERFORMED
| 1. |
PUBLICLY TRADED COMPARABLES
|
2A. PRECEDENT
TRANSACTIONS –
MULTIPLES PAID
|
2B. PRECEDENT TRANSACTIONS – PREMIUMS PAID | |||||||
| - |
Revenue, EBITDA
and EBIT multiples
for comparable
companies in Latin
America Multiples based on LTM figures and 2002 estimates
|
- |
Multiples paid in
similar beverage
bottling transactions Multiples based on LTM revenues, EBITDA and EBIT
|
- |
Premiums paid in
public deals in
Mexico and for
consumer
companies in Latin
America Based on premiums for the period four weeks prior to announcement |
| 3. |
DISCOUNTED CASH FLOW ANALYSIS |
|
| - | Intrinsic value to PBG based on present value of projected cash flows on a stand-alone basis |
2
PEPSI-GEMEX VALUATION SUMMARY
THREE PRIMARY VALUATION METHODOLOGIES WERE USED IN ORDER TO ESTIMATE GEMEX’S VALUE ON A STAND-ALONE BASIS. PROJECTED FINANCIAL INFORMATION FOR GEMEX WERE PROVIDED BY PBG MANAGEMENT
| (1) | Based on a 10-year DCF, a range of 12% — 14% WACC, and 0.5% — 1.5% perpetuity growth rate. | |
| (2) | Based on Gemex’s GDS converted to CPO-equivalent in pesos using the GDS price and exchange rate as of April 8, 2002. | |
| (3) | As of August 23, 2002. | |
| (4) | Based on public tender offer price of Ps. 17.47 (see footnote 5) adjusted for Ps. 172.7 million payment from PepsiCo to PBG. | |
| (5) | Based on gross enterprise value of Ps. 11.612 billion, less estimated net debt of Ps. 3.007 billion, plus Ps. 172.7 million payment from PepsiCo, divided by 502.5 million CPO share equivalents as of June 17, 2002. |
3
PEPSI-GEMEX TRANSACTION ANALYSIS
| Operating | Transaction Multiples - | 1. Publicly Traded | 2A. Precedent Transactions - | 3. DCF Analysis - | ||||||||||||||||||||||||||||||||||||||||||||||
| Assumptions(a) | Blended Offer | Public Offer | Comparables | Multiples Paid | Implied Multiples | |||||||||||||||||||||||||||||||||||||||||||||
FV/LTM Revenues(b) |
Ps. 11,854 | 1.0x | 1.0x | 0.8x | — | 1.1x | 1.1x | — | 1.4x | 1.0x | — | 1.3x | ||||||||||||||||||||||||||||||||||||||
FV/LTM EBITDA(b) |
1,913 | 6.1 | 6.2 | 4.5 | — | 6.5 | 7.0 | — | 9.0 | 6.0 | — | 8.1 | ||||||||||||||||||||||||||||||||||||||
FV/LTM EBIT(b) |
1,325 | 8.8 | 8.9 | 6.5 | — | 8.5 | 11.0 | — | 13.0 | 8.7 | — | 11.6 | ||||||||||||||||||||||||||||||||||||||
FV/2002E Revenues |
Ps. 11,746 | 1.0x | 1.0x | 0.8x | — | 1.1x | N/A | 1.0x | — | 1.3x | ||||||||||||||||||||||||||||||||||||||||
FV/2002E EBITDA(c) |
1,938 | 6.0 | 6.1 | 4.5 | — | 6.5 | N/A | 5.9 | — | 8.0 | ||||||||||||||||||||||||||||||||||||||||
FV/2002E EBIT(c) |
1,296 | 9.0 | 9.1 | 6.5 | — | 8.5 | N/A | 8.9 | — | 11.9 | ||||||||||||||||||||||||||||||||||||||||
| Note: 2002E figures based on Peso-denominated reported and estimated results. | ||
| (a) | Based on PBG management estimates of Gemex on a stand-alone basis. | |
| (b) | LTM to June 30, 2002. Inflation adjusted. | |
| (c) | Includes add-back of transaction-related costs and expenses and all restructuring charges. |
2B. PRECEDENT TRANSACTIONS – PREMIUMS PAID ANALYSIS
| Based on Ps. 17.12 | Based on Ps. 17.47 | Mean Premium | Mean Premium | |||||||||||||
| PBG's Blended | Public Tender | Paid for Deals | Paid for Consumer Deals | |||||||||||||
| Offer Price | Offer Price | in Mexico | in Latin America | |||||||||||||
1 Week Prior |
21.7 | % | 24.2 | % | N/A | N/A | ||||||||||
4 Weeks Prior |
29.3 | 31.9 | 26.3 | % | 17.6 | % | ||||||||||
4
| This ‘SC TO-T’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| Filed on: | 10/7/02 | |||
| 8/29/02 | ||||
| 8/23/02 | ||||
| 6/30/02 | ||||
| 6/17/02 | ||||
| 4/8/02 | ||||
| 5/7/01 | 10-Q | |||
| List all Filings | ||||