I Bytes Retail & Consumer Goods industry

I Bytes Retail & Consumer Goods industry
IT Shades Engage & Enable I-Bytes Retail & Consumer Goods December Edition 2020 Email us - solutions@itshades.com Website : www.itshades.com
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IT Shades Engage & Enable For any queries, Please write to marketing@itshades.com Table of Contents 1. Financial, M & A Updates...................................................................................................................................1 2. Solution Updates................................................................................................................................................64 3. Rewards and Recognition Updates..................................................................................................................82 4. Customer success Updates..............................................................................................................................121 5. Partnership Ecosystem Updates.....................................................................................................................125 6. Environment & Social Updates......................................................................................................................149
IT Shades Engage & Enable For any queries, Please write to marketing@itshades.com Financial, M & A Updates Retail & Consumer Goods Industry
Financial, M&A Updates IT Shades Engage & Enable Alibaba (China) Generates RMB498.2 billion (US$74.1 billion) in GMV during the 2020 11.11 Global Shopping Festival • Alibaba Group Holding Limited announced the 2020 11.11 Global Shopping Festival generated RMB498.2 billion (US$74.1 billion) in gross merchandise volume (GMV) during the 11-day campaign from November 1 to 11, an increase of 26% compared to the same timeframe in 2019. • Over 470 brands achieved more than RMB100 million in GMV, showcasing the value creation of digital transformation across the Alibaba Digital Economy. • The Alibaba digital infrastructure handled 583,000 orders per second during peak of activity, demonstrating the strength and scale of our underlying technology platform. • Cainiao Network processed more than 2.32 billion delivery orders cumulatively over the 11-day period. • Livestreaming has become an indispensable marketing tool, with over 30 livestreaming channels featured on Taobao Live that each generated more than RMB100 million in GMV. Highlights from the 2020 11.11 Global Shopping Festival • 250,000 brands in total participated in 11.11 this year, of which 31,000 are overseas brands. Within these overseas brands, 2,600 participated in 11.11 for the first time. • 357 emerging brands became top sellers in their respective subcategories. More than 1,800 emerging brands surpassed their GMV from 11.11 last year and, of these, 94 emerging brands enjoyed sales growth of over 1,000%. • Under Alibaba’s Spring Thunder initiative, 1.2 million merchants and 300,000 factories focused on overseas trade from more than 2,000 industry clusters across China participated in 11.11. • AI customer chatbot handled over 2.1 billion queries during the 11-day period. • The United States was the top country selling to China by GMV. Other top-selling countries to China, in alphabetical order, include: Australia, Canada, France, Germany, Italy, Japan, Korea, New Zealand and UK. Executive Commentary “Over the past 12 years, innovation has been at the heart of 11.11 and along the way it became a global consumer festival. 11.11 is defined by our consumers, merchants and our partners across the ecosystem, and also a beneficiary of all the support from society,” said President of Taobao and Tmall. “We will continue to focus on developing our digital infrastructure in the service of empowering merchants of all sizes to find a path to success in the digital economy.” For any queries, Please write to marketing@itshades.com 1 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable Amazon (USA) Continues Investment in Nevada with Thousands of Jobs to Support Operations Amazon.com, Inc. announced its continued investment in Nevada with eight new buildings across the state to support customer fulfillment and delivery operations. The sites are expected to create more than 2,000 permanent full- and part-time jobs with a minimum $15 per hour wage and comprehensive benefits starting on day one. The news comes on the heels of Amazon’s announcement to hire more than 100,000 seasonal jobs in the U.S. and Canada to help deliver smiles to customers this holiday season, including more than 1,000 across Nevada. Amazon broke ground in October on an 855,000 square-foot fulfillment center in North Las Vegas, creating 1,500 new full-time jobs when it opens in 2021. The site will be the second fulfillment center in the state using Amazon Robotics to help associates pick, pack and ship smaller items to customers. The new sites also include five delivery stations that power the last mile of Amazon’s order fulfillment process, creating hundreds of permanent full-time and part-time jobs. This network of delivery stations will also offer entrepreneurs the opportunity to build their own small business delivering Amazon packages, and independent contractors the flexibility to be their own boss and create their own schedule delivering for Amazon Flex. Amazon’s new delivery stations in Nevada include: • Henderson – Delivery Station opening in 2021 • Las Vegas – Delivery Station opening in 2021 • North Las Vegas – Delivery Station opened in September 2020 • Reno – Delivery Station opened in October 2020 • Reno – “AMXL” Fulfillment Center / Delivery Station opening in 2021. This site supports the fulfillment and delivery of large products, from televisions to couches, powered by drivers employed by Amazon’s delivery service partners or national third party carriers. Executive Commentary “Amazon is proud to continue investing in the state of Nevada, where we opened our first fulfillment center in Fernley more than 20 years ago,” said Amazon’s Vice President of Global Customer Fulfillment. “We’re excited to create more than 2,000 new full- and part-time jobs across the state with highly competitive pay, benefits from day one and training programs for in-demand jobs.” For any queries, Please write to marketing@itshades.com 2 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable AutoZone (USA) 1st Quarter Same Store Sales Increase 3.4%; EPS Increases to $14.30 • AutoZone, Inc. reported net sales of $2.8 billion for its first quarter (12 weeks) ended November 23, 2019, an increase of 5.7% from the first quarter of fiscal 2019 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 3.4% for the quarter. • Operating profit increased 2.5% to $500.0 million. Net income for the quarter decreased 0.3% over the same period last year to $350.3 million, while diluted earnings per share increased 6.2% to $14.30 per share from $13.47 per share in the year-ago quarter. The decrease in net income was driven by an increased effective tax rate resulting from a reduced benefit from stock options exercised during the quarter. The benefit from stock options increased EPS by $0.06 versus $0.43 last year. • For the quarter, gross profit, as a percentage of sales, was relatively flat to last year at 53.7%. Operating expenses, as a percentage of sales, were 35.8% (versus 35.2% the same period last year), with deleverage primarily driven by domestic store payroll and benefits. • Under its share repurchase program, AutoZone repurchased 403 thousand shares of its common stock for $450.0 million during the first quarter, at an average price of $1,116 per share. At the end of the first quarter, the Company had $1.3 billion remaining under its current share repurchase authorization. • The Company’s inventory increased 9.1% over the same period last year, driven by new stores and increased product placement. Inventory per store was $694 thousand versus $658 thousand last year and $674 thousand last quarter. Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was a negative $71 thousand versus negative $59 thousand last year and negative $85 thousand last quarter. Executive Commentary “I would like to thank and congratulate our entire organization for delivering solid sales and earnings in our first fiscal quarter. Our business strengthened during the quarter with accelerated growth in both Retail and Commercial. The hard work of our AutoZoners and their dedication to providing superior customer service, again drove our strong quarterly performance. As our industry’s fundamentals remain healthy, we are optimistic about what we can accomplish this new year, with our ongoing initiatives in place to improve inventory availability, drive DIY sales, and continue to grow Commercial substantially faster than industry growth. We believe our efforts will allow us to meet or exceed our customers’ needs across all channels. As we opportunistically invest capital in our business, we remain committed to our disciplined approach of increasing operating earnings and cash flow, and of utilizing our balance sheet and capital effectively,” said Chairman, President and Chief Executive Officer. For any queries, Please write to marketing@itshades.com 3 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable Full-Year Results Fiscal Year 2019/20 of the Barry Callebaut Group (Switzerland) • Sales revenue declined by –0.4% in local currencies (–5.7% in CHF) to CHF 6,893.1 million. • Gross profit amounted to CHF 1,063.7 million, a decline of –6.8% in local currencies (–11.3% in CHF) compared to prior year.6 The volume decline in the second half of the year due to the COVID-19 lockdowns, particularly in Gourmet & Specialties, had an adverse impact on the product mix. • Operating profit (EBIT) recurring7 amounted to CHF 491.0 million, a decrease of –13.8% in local currencies (–18.5% in CHF), compared to prior year.6 Currencies had a strong negative translation effect of CHF –29 million. As announced with the Half-Year Results, the closure of the cocoa factory in Makassar, Indonesia, had a negative impact of CHF –7.8 million. As a result, the reported EBIT amounted to CHF 483.2 million, down –15.1% in local currencies (–19.8% in CHF) compared to prior year.6 The recurring EBIT per tonne amounted to CHF 234 compared to CHF 282 in prior year. 6 • Net profit for the year recurring7 amounted to CHF 319.3 million, down –13.3% in local currencies (–18.5% in CHF) compared to prior year.6 The reported Net profit for the year amounted to CHF 311.5 million, down –9.4% in local currencies (–14.8% in CHF) compared to prior year. 6 The net finance costs decreased to CHF 102.4 million from CHF 148.4 million in prior year, which included a CHF 33.0 million one-off expense for the early repayment of the EUR 250 million Senior Note. The income tax expenses amounted to CHF –69.2 million in 2019/20, which corresponds to an effective tax rate of 18.2% (18.6% in prior year). • Net working capital decreased to CHF 1,192.0 million from CHF 1,363.2 million in prior year. This was the result of good working capital management across the board and the benefit of lower receivables due to a COVID-19 impact on volume. This more than offset the impact of higher inventories due to rising cocoa bean prices. • Net debt decreased to CHF 1,365.9 million compared to CHF 1,509.9 million in prior year.6 Taking into consideration the cocoa bean inventories as readily marketable inventories (RMI), adjusted Net debt decreased to CHF 593.9 million from CHF 816.9 million in prior year.6 • Strong Free cash flow generation continued and amounted to CHF 317 million compared to CHF 324 million in prior year.6 Adjusted for the effect of cocoa beans considered as readily marketable inventories (RMI), the adjusted Free cash flow amounted to CHF 404 million compared to CHF 291 million in prior year. Executive Commentary “I am proud of the solid set of results and strengthened balance sheet that we managed to deliver in unprecedented times. They are testimony to the strength and resilience of Barry Callebaut, its employees and its culture. Our focus on care, continuity and cash helped us to safeguard the health of our people and communities, to serve our customers well at a time when they need it most, and to enhance the financing of our company.” Said CEO of the Barry Callebaut Group For any queries, Please write to marketing@itshades.com 4 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable BayWa (Germany) on track for a new record operating result • Earnings before interest and tax (EBIT) increased to €102.7 million (Q1–3/2019: €77.3 million). All three operating segments – Energy, Agriculture and Building Materials – contributed to this rise. Due to price effects, revenues fell year on year to stand at €12.2 billion (Q1–3/2019: €12.5 billion). • The Energy Segment reported a price-related decline in revenues to €2.7 billion as at the end of the third quarter (Q1–3/2019: €3.0 billion). By contrast, EBIT rose significantly to €48.0 million (Q1–3/2019: €25.4 million). • Revenues in the Agriculture Segment stood at €8.1 billion as at the third quarter (Q1–3/2019: €8.2 billion). EBIT improved year on year to €77.5 million (Q1–3/2019: €65.8 million). • The Building Materials Segment generated revenues of €1.4 billion in the third quarter (Q1–3/2019: €1.3 billion). Thanks to a rise in earnings to €39.2 million (Q1–3/2019: €23.3 million), EBIT improved significantly year on year. Executive Commentary Heating oil, agricultural equipment, fruit and building materials have been benefiting from solid demand for several months. In addition, international agricultural trade and project business involving solar parks and wind farms developed into drivers of earnings in the third quarter. “In view of climate change, the megatrend of promoting the expansion of renewable energies worldwide continues unabated, regardless of the coronavirus pandemic,” says Chief Executive Officer of BayWa AG. For any queries, Please write to marketing@itshades.com 5 Key Financial Highlights
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Bed Bath & Beyond (USA) Completes Sale Of Christmas Tree Shops, Linen Holdings And Distribution Center In Florence, NJ Bed Bath & Beyond Inc. announced the completion of the sale of its Christmas Tree Shops retail banner, its institutional Linen Holdings business and a distribution center located in Florence, NJ. Total cash proceeds from the three separate sale agreements were approximately $250 million. Bed Bath & Beyond's capital allocation principles include investing for growth and transformation, ensuring financial resilience and returning cash to shareholders. The Company recently launched a $225 million accelerated share repurchase, as part of an authorized share repurchase program totaling up to $675 million over the next three years. Advisors to Bed Bath & Beyond on the Christmas Tree Shops and Linen Holdings transactions included B. Riley Securities Inc. and Bryan Cave Leighton Paisner; JLL advised the Company on the real estate transaction. Executive Commentary President and Chief Executive Officer said, "The timely completion of these transactions represents another important milestone in our comprehensive plan to simplify our portfolio, unlock the potential of our business and extend our authority in the Home, Baby, Beauty and Wellness markets. We will continue to optimize our portfolio, including the potential sale of additional non-core assets. Since joining Bed Bath & Beyond a little over a year ago, our team has created greater financial flexibility and strategic focus through the divestiture of non-core assets and banners, generating over $750 million to re-invest in our digital-first, omni-always transformation and drive strong and sustainable total shareholder return." For any queries, Please write to marketing@itshades.com Description 6
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Bunge (USA) agrees to sell California rice mill Bunge Limited announced that it has agreed to sell its rice mill in Woodland, California to Farmers’ Rice Cooperative. The completion of the sale is subject to customary closing conditions and is expected to be finalized by the end of 2020. Bunge is a world leader in sourcing, processing and supplying oilseed and grain products and ingredients. Founded in 1818, Bunge's expansive network feeds and fuels a growing world, creating sustainable products and opportunities for more than 70,000 farmers and the consumers they serve across the globe. The company is headquartered in St. Louis, Missouri and has almost 25,000 employees worldwide who stand behind more than 350 port terminals, oilseed processing plants, grain facilities, and food and ingredient production and packaging facilities around the world. Executive Commentary “As part of our portfolio review, we determined that this mill has limited connections to Bunge’s broader value chains,” said Bunge’s Chief Executive Officer. “We will work closely with the new owners to make the transition as smooth as possible for employees and customers.” For any queries, Please write to marketing@itshades.com Description 7
Financial, M&A Updates IT Shades Engage & Enable Burlington Stores, Inc. (USA) Reports Third Quarter 2020 Earnings • Total sales decreased 6% to $1,665 million, and comparable store sales declined 11%. While sales trends were challenging in August due to deficient inventory levels and delayed back to school purchases, comparable store sales trends improved significantly in the combined September and October time period as inventory levels recovered to more appropriate levels at the end of August and back to school demand improved, particularly in September. • Gross margin rate was 45.0% vs. last year’s rate of 42.4%; this improvement was driven by a combination of lower markdowns and higher markup, which were partially offset by higher freight costs. • Product sourcing costs, which are included in selling, general and administrative expenses (SG&A), were $144 million in the third quarter vs. $90 million in last year’s third quarter. Product sourcing costs include the costs of processing goods through our supply chain and buying costs. The increase in product sourcing costs was driven primarily by higher supply chain costs, due to higher wages and hiring incentives. • SG&A increased $62 million to $645 million for the third quarter of Fiscal 2020. Adjusted SG&A was $495 million vs. $486 million last year, due to higher store related and corporate costs, partially offset by lower marketing expense. • The effective tax rate was 65.3% vs. 19.2% in last year’s third quarter. The Adjusted Effective Tax Rate was 49.7% vs. last year’s third quarter Adjusted Effective Tax Rate of 19.6%. The increase in the Adjusted Effective Tax Rate was primarily related to the decreased benefit recorded from estimated net operating losses carried back to five prior tax years, as permitted under the CARES Act. • Net income was $8 million, or $0.12 per share vs. net income of $96 million, or $1.44 per share for the third quarter last year, and Adjusted Net Income represented a profit of $20 million, or $0.29 per share vs. $103 million, or $1.53 per share last year. This decrease in Adjusted Net Income was due primarily to the decline in sales and higher product sourcing costs, in each case driven by the disruptions related to the COVID-19 pandemic. • Diluted shares outstanding amounted to 66.7 million at the end of the quarter compared with 67.2 million at the end of last year’s third quarter. The decrease was primarily the result of share repurchases under the Company’s share repurchase program, prior to its suspension, which is discussed in more detail below. From the end of the third quarter of Fiscal 2019 through the suspension of our share repurchase program announced on March 19, 2020, the Company repurchased approximately 0.6 million shares under the program. • Adjusted EBITDA decreased $79 million from last year’s third quarter to $114 million. Adjusted EBIT decreased $81 million below the prior year period to $59 million. The decrease in Adjusted EBIT was driven by the same factors described above that drove the decline in Adjusted Net Income. Executive Commentary CEO, stated, “We were pleased with the progress we made in the third quarter. After a challenging start in August, our comparable store sales trend improved significantly to minus 4% in the combined September and October period. During the quarter, there were early signs of progress with our Burlington 2.0 Off-Price Full Potential Strategy, as we chased the sales trends, took advantage of great opportunistic buys, and turned our inventories rapidly. We were able to drive sales and also achieve a very healthy gross margin.” For any queries, Please write to marketing@itshades.com 8 Key Financial Highlights
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable CPF (Thailand) reports Bt19,614 million in 9-month net profits, 36% on-year growth Charoen Pokphand Foods PCL (CPF) reaped Bt7,475 million net profits in the third quarter of 2020, a 23% increase from the same period last year. The income boosted 9-month earnings to Bt19,614 million, which grew 36% on year. Earnings before interest, tax, depreciation and amortization (EBITDA) jumped 87% on year to Bt61,658 million, the highest-ever in the company’s history. Major contributors were the African Swine Fever (ASF) which led to pork shortage and sustained pork prices above last year’s level as well as greater profitability of the aquaculture business in Thailand following adjustments in marketing strategies and business model. Chief executive officer of CPF, attributed the financial improvement mainly to pork shortages in Asia in the aftermath of the ASF outbreak. Pork supplies dropped particularly in Vietnam and China, significantly pushing pork prices above the levels seen last year. The pig farming industry came under structural changes, as strict farm management in line with biosafety standards is a prerequisite as long as vaccine is not yet available. Moreover, farms need piglets strong enough to withstand the disease and poorly-managed farms may cause another round of outbreak. Consequently, it will take some time before pork supplies will return to the normal level. Executive Commentary Chief executive officer of CPF said that “CPF expected earnings growth to be sustained next year, due to business expansion and capacity expansion in several countries. While pork prices may soften from this year’s level, but they will remain high. Meanwhile, CPF will start realizing profits from the swine business in China, which is under the acquisition process following the approval of minor shareholders who convened late August. CPF is consequently convinced that 2021 earnings will remain satisfactory.” For any queries, Please write to marketing@itshades.com Description 9
Financial, M&A Updates IT Shades Engage & Enable Church & Dwight (USA) Reports Q3 Results • Consumer Domestic net sales were $954.6 million, a $127.0 million or 15.3% increase driven by household and personal care sales growth. Organic sales increased 10.7% due to higher volume (+11.1%), offset by lower price and product mix (-0.4%) as a result of increased promotion and couponing for new products. Strong consumption was the primary driver for the sales increase. Organic sales growth was led by VITAFUSION® and L’IL CRITTERS® gummy vitamins, WATERPIK® oral care products, ARM & HAMMER® liquid laundry detergent, OXICLEAN® stain fighters, KABOOM® bathroom cleaners, ARM & HAMMER® clumping cat litter and baking soda, and FIRST RESPONSE® diagnostic kits. • Consumer International net sales were $213.6 million, a $27.2 million or 14.6% increase versus the prior year. Organic sales increased 11.6% due to higher volume (+11.7%). Organic sales growth was driven primarily by the Global Markets Group and Canada. • Specialty Products net sales were $72.8 million, a $2.6 million or 3.4% decrease. Organic sales also decreased 3.4% due to lower volume (-3.8%) offset by higher pricing (+0.4%). The lower volume was primarily driven by the non-dairy Animal and Food Production and specialty chemical businesses as they face continuing challenges from the COVID-19 pandemic reducing demand. • Gross margin decreased 110 basis points to 45.5% due to the impact of tariffs, COVID-19 pandemic related expenses, higher manufacturing costs due to outsourcing, and acquisition accounting, partially offset by productivity improvements. Specifically, gross margin was impacted by a 200 basis point headwind in the quarter, from the year-over-year impact of tariffs (-110 basis points), and acquisition accounting (-90 basis points). • Marketing expense was $170.9 million, an increase of $45.7 million or 36.5% reflecting brand investments to provide momentum going into 2021. Marketing expense as a percentage of net sales increased 230 basis points to 13.8%. • Selling, general, and administrative expense (SG&A) was $120.5 million or 9.7% of net sales, a 550 basis point decrease, primarily due to an acquisition related earn-out adjustment. Adjusted SG&A of $171.5 million decreased 30 basis points as a percentage of net sales primarily due to leverage from strong sales growth. 2 • Income from Operations was $273.8 million or 22.0% of net sales. Adjusted Income from Operations was $222.8 million or 17.9% of net sales excluding the acquisition related earn-out adjustment. 2 • Other Expense of $12.3 million declined $3.9 million due to lower interest expense resulting from lower interest rates. • The effective tax rate was 17.3% compared to 21.6% in 2019, a decrease of 430 basis points, primarily driven by higher tax benefits related to stock option exercises. Executive Commentary Chief Executive Officer, commented, “Q3 was an extraordinarily strong quarter for Church & Dwight. Both our household and personal care businesses delivered higher volume growth as consumers and retailers focused on core essentials. Our brands experienced strong consumption in Q3 and we continue to see similar strength in October. The pandemic drove double digit consumption growth in most domestic categories, especially gummy vitamins, women’s hair removal, cleaners, and baking soda. Restrictions on consumer mobility continued to suppress the condoms and dry shampoo categories, although we saw significant sequential improvement in Q3. Consumption of water flossers was flat in Q3 and positive for October, after experiencing double-digit declines in Q2. Year-to-date shipments and consumption are generally in balance for our brands. However, retailer in-stocks continue to lag normal levels for some brands, including gummy vitamins, baking soda, and cleaners. Online sales as a percentage of total sales continued to grow rapidly and reached 13% of sales in Q3, up from 8% last year. The International business had a strong quarter despite the global COVID-19 pandemic, with extremely strong and broad-based consumption increases across many countries and brands. After 3 consecutive quarters of growth, SPD sales contracted primarily in the non-dairy segment.” For any queries, Please write to marketing@itshades.com 10 Key Financial Highlights
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Church & Dwight (USA) Acquires Zicam Brand for $530 Million Church & Dwight Co., Inc. has completed the acquisition of Matrixx Initiatives, Inc., the owner of the ZICAM™ brand for $530 million. The acquisition was structured as a stock purchase that the Company financed with a combination of cash and debt. Zicam is the #1 zinc supplement in the United States in the VMS (vitamins, minerals, and supplements) cough/cold shortening category. Zicam shortens the duration of a cold using zinc as the core active ingredient. Zicam’s annual net sales are projected to be approximately $90 million in 2021 and EBITDA is expected to be approximately $36 million. Once Zicam is fully integrated, Church & Dwight expects to leverage its distribution network, operating discipline, and support functions to generate anticipated annual cost savings of approximately $5 million by 2022. Zicam is expected to be approximately 3% accretive to cash earnings in 2021. The acquisition is expected to be neutral to Q4 2020 earnings per share (EPS) and neutral to 2021 EPS due to intangible amortization, interest expense, transition expenses, and higher marketing spending. Executive Commentary “The acquisition of Zicam represents a superb addition to our existing portfolio and brings to our Company the leading brand within zinc supplements, one of the fastest-growing sub-segments of the VMS category, said Chairman and Chief Executive Officer of Church & Dwight. This acquisition meets the Company's long-standing acquisition criteria. Specifically, Zicam is a #1 brand in a niche category; asset-light; a growing brand, and expected to be gross margin accretive to the Company. We are excited about adding the Company’s 13th power brand. Acquisitions have been a key driver of Church & Dwight’s consistently strong shareholder returns.” For any queries, Please write to marketing@itshades.com Description 11
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Coca-Cola European Partners announces it has entered into binding agreements to acquire Coca-Cola Amatil Coca-Cola European Partners announced it has entered into binding agreements to acquire Coca-Cola Amatil Limited (CCL), one of the largest bottlers and distributors of ready-to-drink non alcoholic and alcoholic beverages and coffee in the Asia Pacific region. CCEP has also entered into a Co-operation and Sale Deed with KO with respect to the acquisition of KO’s 30.8% interest in CCL, conditional upon the implementation of the Scheme with CCL. Under the Co-operation and Sale Deed, KO will be entitled to receive A$9.57 per share in cash for part of their shareholding, which comprises 10.8% of CCL’s shares. CCEP will acquire all of KO’s remaining 20% shareholding in CCL for A$10.75 per share, either in cash or a combination of cash and the issue of CCEP shares at an agreed conversion ratio Executive Commentary Chief Executive Officer of CCEP, said: “This is a fantastic opportunity to bring together two of the world’s best bottlers to drive faster and more sustainable growth. Since the creation of CCEP four years ago, we have proven our ability to create value through expansion and integration. Now is the right time to move forward by taking on these great franchises and markets. The strategic rationale behind this transaction is compelling, solidifying our position as the largest Coca-Cola bottler by revenue. I am eager to apply our proven formula in Western Europe to Coca-Cola Amatil’s markets, including leadership in areas such as revenue growth management, in-market execution, digital and sustainability. However, I am equally excited and genuinely convinced that there will be many more opportunities as we move forward together with speed, scale, excellent people and a richer, more diverse culture. This larger platform will unlock enhanced value for our shareholders, all underpinned by an even stronger and more aligned strategic partnership with The Coca-Cola Company and our other brand partners. We look forward to executing on the ambitious growth plans ahead of us, as we build on the best of who we are and create a very exciting future together.” For any queries, Please write to marketing@itshades.com Description 12
Lore Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Constellation Brands (USA) and E. & J. Gallo Sign Agreement With Federal Trade Commission Staff Relating To Consent Order On Pending Transaction; Constellation Provides Business Update For Fiscal 2021 Constellation Brands, Inc. a leading beverage alcohol company, announced that it and E. & J. Gallo Winery have signed an Agreement Containing Consent Order with the Bureau of Competition of the U.S. Federal Trade Commission (FTC) regarding Gallo’s pending acquisition of a portion of Constellation’s wine and spirits portfolio principally priced at $11 retail and below, including certain related facilities located in California, New York, and Washington State. The proposed consent order marks the final stages in the FTC review process and remains subject to review and approval by the FTC Commissioners, who typically provide their final review within 30 to 45 days. Therefore, Constellation anticipates closing in the fourth quarter of fiscal 2021. The proposed consent order, if accepted by the FTC Commissioners, would allow Constellation and Gallo to complete the sale under the terms of the Second Amended and Restated Asset Purchase Agreement announced in May 2020. As set forth in the May 2020 agreement the transaction price is approximately $1.03 billion, subject to closing adjustments, of which $250 million is an earnout if brand performance provisions are met over a two-year period after closing. Constellation also expects to close its separate but related transactions with Gallo to divest the New Zealand-based Nobilo Wine brand and related assets for $130 million and with Sazerac to divest the Paul Masson Grande Amber Brandy brand, related inventory and interests in certain contracts for approximately $255 million by the end of the fourth quarter of fiscal 2021, subject to FTC acceptance of the proposed consent order. In addition, now that the Company is nearing the end of its fiscal third quarter, Constellation is providing a business update for fiscal 2021. Despite COVID-related challenges, the company remains confident in the resiliency of its business in the midst of the pandemic. As such, Constellation’s Beer Business now expects to deliver results for fiscal 2021 that are in line with its medium-term goal of sales and operating income growth in the 7%-9% range. This assumes production of the company’s high-performing beer brands remains uninterrupted for the remainder of the year. Previously provided third quarter fiscal 2021 Wine and Spirits Business guidance remains unchanged with the Gallo transaction expected to close in the fourth quarter. For any queries, Please write to marketing@itshades.com Description 13
Financial, M&A Updates IT Shades Engage & Enable Core-Mark (USA) Announces Third Quarter 2020 Financial Results and Raises Guidance for Full Year 2020 • Net sales in the third quarter of 2020 were $4.50 billion compared to $4.42 billion for the same period in 2019. Sales of both cigarettes and non-cigarette products in the third quarter of 2020 continued to be impacted by changes in consumer buying habits as a result of COVID-19. • Cigarette sales increased 4.2% driven by manufacturers’ price increases and cigarette carton sales that outperformed historical trends, increasing 0.1% for the third quarter. Non-cigarette sales decreased 2.6% for the quarter with the largest declines coming from the food, health, beauty & general and candy categories. Sales of other tobacco products (“OTP”) continued their strong growth increasing 9.0% for the third quarter. Non-cigarette sales decreased to 33.4% of total net sales for the third quarter of 2020 compared to 34.9% for the same period in 2019. • Gross profit in the third quarter of 2020 decreased 4.7%, or $11.6 million, to $235.0 million from $246.6 million for the same period in 2019, driven primarily by the year-over-year shortfalls in non-cigarette sales, resulting primarily from COVID-19 and a $0.5 million decrease in inventory holding gains. Remaining gross profit, a non-GAAP financial measure, decreased 5.2% to $234.8 million from $247.8 million. • Gross profit margin for the third quarter was 5.22% of total net sales compared to 5.58% for the same period in 2019. The change in sales mix between cigarettes and non-cigarettes contributed approximately 40% of the gross profit margin decline. • The Company’s operating expenses decreased 5.9% to $200.2 million from $212.7 million for the same period in 2019. The decrease in operating expenses was driven primarily by increased productivity and cost savings initiatives implemented mainly in response to COVID-19. Operating expenses as a percentage of remaining gross profit decreased to 85.3% compared to 85.8% for the third quarter of 2019. • Net income was $23.0 million for the third quarter of 2020 compared to $22.5 million for the same period in 2019. Adjusted EBITDA, a non-GAAP financial measure, was $59.3 million compared to $59.2 million for the third quarter of 2019. Dividend • Core-Mark’s Board of Directors has approved a $0.13 cash dividend per common share, or $0.52 on an annualized basis. The dividend is payable on December 18, 2020 to stockholders of record as of the close of business on November 20, 2020. Executive Commentary “Our results for the third quarter demonstrate Core-Mark’s resiliency in what remains a challenging business environment heavily impacted by the pandemic,” said President and Chief Executive Officer. “In a year where sales mix and margins have faced tremendous pressure, we have delivered year-to-date growth in earnings through a disciplined approach to cost control and productivity. Equal in importance to our financial performance has been the company’s commitment to advance key programs and technologies enhancing our customer value proposition. Lastly, I am grateful to our employees for their continued hard work and dedication and want to thank our customers and vendors for their commitment, cooperation and support.” For any queries, Please write to marketing@itshades.com 14 Key Financial Highlights
Lore Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Coty (USA) Announces $2.5bn Wella Sale to Complete by November 30, 2020 Coty Inc. announced that the strategic sale of its Professional and Retail Hair business – including the Wella, Clairol, OPI and ghd brands (together, “Wella”) – to KKR is anticipated to complete by November 30, 2020. The Company and KKR have entered into amended and restated transaction agreements which remain substantially the same as the original agreements, with the primary adjustment being the removal of certain completion conditions and the sale and transfer of certain entities to Wella post-completion. The sale will see KKR own 60% of the standalone Wella entity, while Coty retains the remaining 40%. Upon closing, Coty will receive $2.5bn of proceeds, net of tax and expenses. The net proceeds coupled with Coty’s retained 40% stake in Wella, initially valued at $1.3bn, will considerably strengthen Coty’s capital structure. Coty expects to utilize approximately $2bn of the net proceeds to pay down its Term Loans A and B on a pro rata basis, with the remainder used for general corporate purposes. For any queries, Please write to marketing@itshades.com Description 15
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Coty (USA) Completes Sale of Wella Stake to KKR Coty Inc. announced the completion, on November 30, 2020, of the sale of a majority stake in its Professional and Retail Hair business – including the Wella, Clairol, OPI and ghd brands (together, “Wella”) – to KKR. As part of the transaction, Coty has received net cash proceeds of approximately $2.5 billion, and will retain a 40% stake in the business. Coty expects to utilize approximately $2 billion of the net proceeds to pay down its Term Loans A and B on a pro rata basis, with the remainder used for general corporate purposes, including initially paying down its revolver. Following the Wella divestment – and with expected positive cash flow in Q2 2021 – Coty is expected to reduce its financial net debt from $7.9 billion to approximately $5.0 billion. Taking into account Coty’s retained 40% Wella stake (initially valued at $1.3 billion), the Company’s economic net debt will stand below $4.0 billion, a substantial reduction that will enhance Coty’s flexibility to invest behind key brands and navigate a dynamic operating environment. Executive Commentary Commenting on the announcement, Coty's CEO, said: marks an important milestone in Coty’s transformation and the development of a stronger, more focused and flexible business that’s set up for long-term success. As noted on our Q1 earnings announcement, we remain relentlessly focused on maintaining diligent cost control across the company and delivering on our financial commitments. As such, the Wella divestment reflects the excellent progress being made in improving Coty’s leverage profile. This substantial debt reduction will, in turn, enable us to increase investments behind our strategic priorities, including strengthening our business in core markets and categories, while simultaneously fueling our new growth engines: e-commerce & DTC, skincare, prestige make-up and Asia. The Wella sale is also a key part of the simplification of Coty: streamlining our structure to focus on our two core businesses: Prestige Beauty and Consumer Beauty. Nevertheless, I am very pleased that Coty will still share in Wella’s success through our remaining 40% stake.” For any queries, Please write to marketing@itshades.com Description 16
Financial, M&A Updates IT Shades Engage & Enable Dollar General Corporation (USA) Reports Third Quarter 2020 Results • Net sales increased 17.3% to $8.2 billion in the third quarter of 2020 compared to $7.0 billion in the third quarter of 2019. The net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures. • Gross profit as a percentage of net sales was 31.3% in the third quarter of 2020 compared to 29.5% in the third quarter of 2019, an increase of 178 basis points. • Selling, general and administrative expenses (“SG&A”) as a percentage of net sales were 21.9% in the third quarter of 2020 compared to 22.5% in the third quarter of 2019, a decrease of 62 basis points. • Operating profit for the third quarter of 2020 increased 57.3% to $773.1 million compared to $491.4 million in the third quarter of 2019. The third quarter of 2020 included approximately $38 million of incremental investments the Company made in response to the COVID-19 pandemic. These investments included measures taken to further protect the health and safety of employees and customers, and approximately $25 million in appreciation bonuses for eligible frontline employees. • The effective income tax rate in the third quarter of 2020 was 21.6% compared to 21.7% in the third quarter of 2019. This lower effective income tax rate was primarily due to increased tax benefits associated with share-based compensation and a larger income tax rate benefit from state taxes, partially offset by a lower income tax rate benefit from federal income tax credits due to higher pre-tax earnings in the 2020 period compared to the 2019 period. • The Company reported net income of $574.3 million for the third quarter of 2020, an increase of 57.1% compared to $365.6 million in the third quarter of 2019. Diluted EPS increased 62.7% to $2.31 for the third quarter of 2020 compared to diluted EPS of $1.42 in the third quarter of 2019. Executive Commentary “I want to thank our associates for their tireless work over the past several months in helping our customers and communities impacted by the COVID-19 pandemic,” said Dollar General’s chief executive officer. “To further demonstrate our appreciation and support, we plan to award a total of up to $75 million in appreciation bonuses to eligible frontline employees in Q4, which includes our recent announcement to double our initial plans for second-half bonuses by approximately $50 million, bringing the Company’s full-year investment in employee appreciation bonuses to approximately $173 million. Despite continued significant uncertainty in the operating environment, our team members have been unwavering in their commitment to fulfilling our mission of Serving Others. As a result, we are pleased to report strong third-quarter financial results. During the quarter, we also continued to make great progress advancing our key strategic initiatives, including the rollout of DG Pickup across nearly our entire store base, and the launch of our newest store format, pOpshelf. In total, we executed 765 real estate projects, further laying and building the foundation for future growth. Overall, our ongoing operating priorities, coupled with our key strategic initiatives, position us well to continue delivering value and convenience for our customers, along with long-term sustainable growth and value for our shareholders.” For any queries, Please write to marketing@itshades.com 17 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable Henkel (Germany) achieves strong organic sales growth in the third quarter • In the third quarter of 2020, sales of the Henkel Group decreased nominally by -1.5 percent to 4,999 million euros. Organically sales increased by 3.9 percent. At Group level, the increase was driven by volume, with price and volume developments differing between the business units. Acquisitions and divestments accounted for an increase of 0.1 percent in sales. Foreign exchange effects had a negative impact of -5.5 percent on the sales performance. • In the first nine months of 2020, sales decreased nominally by -4.5 percent to 14,485 million euros. Organically, Henkel registered a negative sales development of -2.1 percent, primarily due to volume effects. • The emerging markets achieved organic sales growth of 8.8 percent in the third quarter. Organic sales development in the mature markets was positive at 0.6 percent. In the Western Europe region, sales declined organically by -1.2 percent year on year. By contrast, we were able to increase sales in the Eastern Europe region by 10.4 percent. In the Africa/Middle East region, we achieved organic sales growth of 13.9 percent in the third quarter of 2020. Organic sales growth was 2.9 percent in the North America region and 13.8 percent in the Latin America region. Organic sales development in the Asia-Pacific region was positive at 1.2 percent. • In the first nine months of 2020, the emerging markets posted organic sales growth of 1.3 percent, whereas sales development in the mature markets was negative at -4.4 percent. Sales performance Adhesive Technologies • Sales generated by the Adhesive Technologies business unit decreased nominally by -4.8 percent to 2,280 million euros in the third quarter of 2020. • In the first nine months of 2020, the Adhesive Technologies business unit recorded a nominal decrease of -9.7 percent in sales to 6,433 million euros. Organically, sales decreased by -6.8 percent, due to volume effects. Executive Commentary “The impacts of the global coronavirus crisis continue to determine the market environment. Nevertheless, Henkel achieved a good business performance in the third quarter, with all three business units contributing. This is evidence of our robust, diversified portfolio comprised of successful brands and innovative technologies for our customers in the industrial and consumer goods businesses. Furthermore, our additional investments in marketing, innovation and digitalization are paying off. Plus, we significantly expanded our digital sales in the third quarter, increasing their total sales share to more than 15 percent,” said Henkel CEO. For any queries, Please write to marketing@itshades.com 18 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable Hershey (USA) Reports Third-quarter 2020 Financial Results; Provides 2020 Outlook • Consolidated net sales were $2,219.8 million in the third quarter of 2020 versus $2,134.4 million in the year ago period, an increase of 4.0%. Price realization was a 2.9 point benefit and volume growth was a 0.9 point benefit, both driven by strength in the North America segment. The net impact of acquisitions and divestitures was a 0.8 point benefit driven by the acquisition of ONE Brands. Foreign currency exchange was a 0.6 point headwind. • Reported gross margin was 48.7% in the third quarter of 2020, compared to 44.2% in the third quarter of 2019, an increase of 450 basis points. The increase reflects a higher derivative mark-to-market commodity gain in the current period, along with net price realization. Adjusted gross margin was 45.4% in the third quarter of 2020, compared to 44.8% in the third quarter of 2019, an increase of 60 basis points driven by pricing gains which were partially offset by unfavorable commodities and increased warehouse costs related to elevated demand in North America. • Selling, marketing and administrative expenses decreased 2.6% in the third quarter of 2020 versus the third quarter of 2019. Advertising and related consumer marketing expenses decreased 4.6% in the third quarter of 2020 versus the same period last year driven by media cost efficiencies and optimized brand investment. Selling, marketing and administrative expenses, excluding advertising and related consumer marketing, decreased 1.5% versus the third quarter of 2019. This decrease was driven by COVID-19 related travel and meeting expense savings and the timing of investments in key strategic initiatives compared to the prior year. • Third-quarter 2020 reported operating profit of $611.4 million increased 32.7% versus the third quarter of 2019, resulting in an operating profit margin of 27.5%, an increase of 590 basis points. This increase was driven by higher gross profit due to the previously mentioned higher derivative mark-to-market commodity gain in the current period. Adjusted operating profit of $543.3 million increased 13.9% versus the third quarter of 2019. This resulted in an adjusted operating profit margin of 24.5%, an increase of 220 basis points versus the third quarter of 2019 driven by strong price realization in the North America segment and corporate and operational cost management. • The effective tax rate in the third quarter of 2020 was 20.5%, an increase of 30 basis points versus the third quarter of 2019. The adjusted tax rate in the third quarter of 2020 was 21.5%, an increase of 140 basis points versus the third quarter of 2019. Both the effective and adjusted tax rate increases were primarily driven by lower excess tax benefits from stock-based compensation. • The company's third-quarter 2020 results, as prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), included items positively impacting comparability of $68.1 million, or $0.28 per share-diluted, as outlined in the table below. For the third quarter of 2019, items negatively impacting comparability totaled $18.4 million, or $0.07 per share-diluted. Executive Commentary "We had a strong third quarter, with accelerated reported net sales growth of 4%, adjusted diluted EPS growth of more than 15% and confectionery share gains across markets, including an almost 190 basis point gain in the U.S. Our core U.S. business remains healthy as consumers reach for small treats during the pandemic, and our decision to lean into Halloween ahead of the season supported consumers' desire to find new and creative ways to celebrate safely. We also saw sequential improvement in the areas of our business hit hardest by COVID-19, including our international markets, owned retail locations and food service business," said The Hershey Company President and Chief Executive Officer. "We are continuing to focus on executing with excellence, investing in the business, and advancing our strategic priorities to deliver a strong fourth quarter and position us well for 2021." For any queries, Please write to marketing@itshades.com 19 Key Financial Highlights
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable The Home Depot (USA) Announces Agreement To Acquire Hd Supply Holdings, Inc. The Home Depot®, the world's largest home improvement retailer, announced it has entered into a definitive agreement to acquire HD Supply Holdings, Inc., a leading national distributor of maintenance, repair and operations (MRO) products in the multifamily and hospitality end markets. The acquisition is expected to position The Home Depot as a premier provider in the MRO marketplace. Under the terms of the merger agreement, a subsidiary of The Home Depot will commence a cash tender offer to purchase all outstanding shares of HD Supply common stock for $56 per share, for a total enterprise value (including net cash) of approximately $8 billion. The closing of the tender offer is subject to customary closing conditions, including regulatory approvals and the tender of a majority of the shares of HD Supply common stock then outstanding (on a fully diluted basis) and is expected to be completed during The Home Depot's fiscal fourth quarter, which ends on January 31, 2021. The transaction is expected to be funded through cash on hand and debt. Executive Commentary "The MRO customer is highly valued by The Home Depot, and this acquisition will position the company to accelerate sales growth by better serving both existing and new customers in a highly fragmented $55 billion marketplace," said chairman and CEO of The Home Depot. "HD Supply complements our existing MRO business with a robust product offering and value-added service capabilities, an experienced salesforce that enhances the strong team we have in place, as well as an extensive, MRO-specific distribution network throughout the U.S. and Canada." For any queries, Please write to marketing@itshades.com Description 20
Financial, M&A Updates IT Shades Engage & Enable The Home Depot (USA) Announces Third Quarter Results; Plans To Invest Approximately $1 Billion In Annualized Permanent Compensation Enhancements For Frontline, Hourly Associates • The Home Depot®, the world's largest home improvement retailer, reported sales of $33.5 billion for the third quarter of fiscal 2020, an increase of $6.3 billion, or 23.2 percent from the third quarter of fiscal 2019. • Comparable sales for the third quarter of fiscal 2020 were positive 24.1 percent, and comparable sales in the U.S. were positive 24.6 percent. • Net earnings for the third quarter of fiscal 2020 were $3.4 billion, or $3.18 per diluted share, compared with net earnings of $2.8 billion, or $2.53 per diluted share, in the same period of fiscal 2019. • For the third quarter of fiscal 2020, diluted earnings per share increased 25.7 percent from the same period in the prior year. Executive Commentary "The third quarter was another exceptional quarter for The Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year," said chairman and CEO. "Our ability to effectively adapt to this high-demand environment is a testament to both the investments we have made in the business as well as our associates' focus on customers. We continue to lean into these investments because we believe they are critical in enabling market share growth in any economic environment. I am proud of the resilience and strength our associates have continued to demonstrate, and I would like to thank them and our supplier partners." For any queries, Please write to marketing@itshades.com 21 Key Financial Highlights
Lore Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Intact Financial Corporation (Canada) Announces $1.25 Billion Bought Deal Private Placement of Subscription Receipts to Finance a Portion of the Purchase Price of the Possible Offer for RSA Insurance Group PLC (“RSA”) Further to the announcement on November 5, 2020 relating to the possible offer for RSA by Intact Financial Corporation and Tryg A/S Intact announced that it has entered into an agreement with a group of underwriters, led by CIBC Capital Markets and Barclays Capital Canada Inc., pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 9,272,000 subscription receipts of the Company at a price of $134.50 per Subscription Receipt for gross proceeds of $1.25 billion. The underwriters intend to arrange for substituted purchasers for the Subscription Receipts. The Subscription Receipts will be offered by way of private placement to accredited investors and other exempt purchasers in all provinces and territories of Canada. The Subscription Receipts will be subject to a four month hold period under applicable securities laws in Canada. Earlier, Intact announced that it had entered into subscription agreements with institutional investors for the aggregate issuance of 23.8 million subscription receipts at a price of $134.50 per subscription receipt for gross proceeds of $3.2 billion. The Offering and Cornerstone Equity Financing together provide Intact with all of the equity financing it would require to fund its share of the purchase price for RSA. For any queries, Please write to marketing@itshades.com Description 22
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Intact Financial Corporation (Canada), together with Tryg, to Acquire International P&C Insurer RSA Insurance Group Plc. for £7.2 billion (C$12.3 billion) Intact Financial Corporation announced that, together with Tryg A/S it has reached an agreement with RSA on the terms of a recommended all-cash acquisition for the entire issued and to be issued share capital of RSA at a price of 685 pence per common share, representing a total consideration of approximately £7.2 billion ($12.3 billion). Intact will pay $5.1 billion (£3.0 billion) of the total consideration payable and Tryg will pay $7.2 billion (£4.2 billion). In addition to the cash consideration payable, RSA shareholders will also be entitled to the previously announced but unpaid interim dividend of 8 pence per share. Pursuant to the Transaction, Intact will retain RSA's Canadian, UK and International ("UK&I") entities, Tryg will retain RSA's Swedish and Norwegian businesses, and Intact and Tryg will co-own RSA's Danish business. The agreement to announce the Transaction has been recommended unanimously by the boards of directors of all three companies. The Transaction is subject to customary regulatory and shareholder approvals. Executive Commentary "This acquisition is highly strategic for Intact. It expands our leadership position in Canada, builds on our strong track record in specialty lines, and puts us in a solid position to strengthen RSA's UK and Ireland operations. We have strong capabilities in data, risk-selection and claims management, which we plan to leverage across the business," said Intact CEO. "I look forward to welcoming RSA's employees into our company and leveraging their deep expertise across the business. Together, we are stronger and more resilient." For any queries, Please write to marketing@itshades.com Description 23
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Intact (Canada) to Acquire RSA's Canada, UK and International Operations with CDPQ's Support Intact Financial Corporation announced that, together with Tryg A/S (Tryg), it has reached an agreement for the acquisition of RSA Insurance Group plc (RSA). Pursuant to the transaction, IFC will, with the support of Caisse de dépôt et placement du Québec (CDPQ), acquire RSA Group's Canada, UK and International operations and co-own RSA Group's Danish business with Tryg. To support its customer driven digital strategy and the growth resulting from the acquisition and integration of these operations, IFC will invest $1.5 billion in technology in Quebec over the next five years. This acquisition will also significantly increase the role and influence of several strategic teams based in Quebec, consolidate IFC's significant economic impact in the province, and increase that impact through these additional investments. Executive Commentary "Intact Financial Corporation has its roots in Quebec," said CEO of Intact Financial Corporation. "While our success now extends well beyond Quebec's borders, we still run a significant portion of our North American operations there. With the support of CDPQ, our acquisition of RSA will create additional demands and opportunities for the teams supporting our global operations; coupled with our future tech investments, this will provide a significant and lasting boost to the expansion of our strategic teams based in Quebec." For any queries, Please write to marketing@itshades.com Description 24
Lore Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable ITOCHU (Japan) Announces Acquisition of Saudi Waste Management Company in Jubail Industrial City ITOCHU Corporation announced that ITOCHU, together with SUEZ, a French based leading environmental company, and Five Capital Fund, a Saudi investment fund have jointly acquired a 65% stake in Environment Development Company (“EDCO”), a Saudi hazardous waste management company based in Jubail Industrial City, Saudi Arabia. ITOCHU acquired a 20% stake in EDCO through this transaction. Jubail Industrial City is a special administrative district designated by the Saudi government in 1975 for the purpose to expand petrochemical industry, the core industry as an oil producing country. It is one of the world’s leading manufacturing/export hubs, with more than 160 enterprises including leading petrochemical players providing petrochemical products to Europe and Asia. EDCO was established in 2005 as a company to provide integrated hazardous waste management services including transportation, treatment and final disposal, boasts the region’s top market share in the hazardous waste management business with the processing capacity of 150,000 tons per year. ITOCHU launched its initiatives in the waste management business in the 2000s and aims to expand and enhance its involvement in this field with a proven track record,four projects in the United Kingdom and one project in Serbia. Since the 1960s, ITOCHU has been extensively involved in business initiatives including water treatment in Saudi Arabia, taking steps to conduct feasibility studies with waste management services for the petrochemical industry, which is the country’s core industry. ITOCHU analyzed that there is a strong demand for sophisticated waste management services in light of intensifying environmental regulations and growing awareness of ESG and SDGs by the petrochemical players. Together with new shareholders, ITOCHU is pleased to participate in EDCO, aiming for further expansion and enhancement in its business to position EDCO as a leader in its field. For any queries, Please write to marketing@itshades.com Description 25
Lore Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable ITOCHU (Japan) Announces Investment in Zapata Computing, Developer of Software for Quantum Computers ITOCHU Corporation announces that it has invested in Zapata Computing, Inc. a company that develops software for quantum computers. Going forward, ITOCHU will support the rollout of the Zapata’s products and services in Japan. In recent years, quantum computers – which leverage quantum mechanics to solve computational problems – are gaining attention in light of the rapid increase in data demand accompanying the Fourth Industrial Revolution. Classical computers*2 are also reaching the limits for which it is possible to further improve their performance. In the quantum computing hardware field, competition between major IT companies such as IBM, Google, and Honeywell is reaching superheated levels. However, since the quantum computers developed by these companies do not utilize the same formats or development languages, there is a growing demand for application development and other products and services in the software domain. Additionally, since the majority of operations using quantum computers are currently still compensated for by classical computers, there is a need for environments that enable hybrid operation of both types of computer. Zapata is a Harvard University spin out which is leading the industry with the development of its Orquestra® software for quantum computers. By modularizing components of the quantum software ecosystem and integrations with quantum devices, the platform enables combined use of quantum computers that use different formats and languages alongside quantum-inspired and classical backends. Moreover, by controlling the order of operations and allocating resources between conventional classical computers and quantum computers, the software also allows the simulation of quantum algorithms in classical computing environments and enables efficient use of quantum computers and preparation for their full-scale introduction. Because of these advantages, Zapata’s software has already been introduced at leading companies in all manner of industries, primarily in the United States, including the petroleum, gas, pharmaceutical, finance and automotive industries. Through its investment in Zapata, ITOCHU will utilize its Group network and know-how to support the rollout of the company’s products and services in Japan. Additionally, ITOCHU will work to develop new services and resolve issues faced by customers in the field of quantum computing in Japan through collaboration with its Group company ITOCHU Techno-Solutions Corporation (headquartered in Chiyoda-ku, Tokyo; President & CEO Ichiro Tsuge), which possesses strengths in the software domain, such as in the building and operation of large-scale systems including cloud systems. For any queries, Please write to marketing@itshades.com Description 26
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Pilgrim’s (USA) to Invest $715,000 to Support De Queen and Nashville Communities as Part of New Hometown Strong Initiative Building on its ongoing sustainability and social responsibility efforts, Pilgrim’s announced plans to invest $715,000 in De Queen, Ark., to support the community’s future. Pilgrim’s has worked with local leaders to identify where the funds can best help meet immediate and longer-term community needs. The first project being funded in De Queen is a one-mile walking trail around the new Sevier County Medical Center. This trail will provide outdoor space for hospital staff, patients, visitors and the broader community to enjoy. The Pilgrim’s De Queen/Nashville facility employs more than 1,400 people with an annual payroll of more than $53 million. The facility supports 238 growers, paying them more than $36 million per year for their livestock. Consistent with its long-term commitment to the local economy, the Pilgrim’s De Queen/Nashville complex has invested more than $134 million in capital improvements over the last five years. Executive Commentary “We are very proud to play a small role in supporting the development of the Sevier County Medical Center, which is an important project for our entire community,” said Pilgrim’s De Queen/Nashville Complex Manager. “We are also excited to announce our Hometown Strong initiative that will benefit both our team members and our neighbors during what has been a challenging year for us all.” For any queries, Please write to marketing@itshades.com Description 27
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Pilgrim’s (USA) to Invest $860,000 in Moorefield to Support Local Community as Part of New Hometown Strong Initiative Building on its ongoing sustainability and social responsibility efforts, Pilgrim’s announced plans to invest $860,000 in Moorefield, W.Va., to support the community’s future. Pilgrim’s has been working with local leaders to identify where the funds can best help meet immediate and longer-term community needs in three key areas: food insecurity, community infrastructure and well-being, and COVID-19 emergency response and relief efforts. All projects will be determined by the end of the year. One project has already been selected for funding. The company is partnering with the Moorefield Park and Recreation department to expand the Moorefield Town Park. Pilgrim’s is investing $600,000 to install three full-size basketball courts, a new playground and a splash pad, in addition to building new park restrooms and constructing two picnic pavilions. Executive Commentary “The Town of Moorefield would like to thank Pilgrim’s for their support and engagement during these trying times as we continue to navigate the difficulties associated with the Covid-19 pandemic,” said Moorefield Mayor. “Having Pilgrim’s in our backyard to feed and assist us during this period provides a deep sense of security to our community as we move forward together.” For any queries, Please write to marketing@itshades.com Description 28
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Pilgrim’s (USA) to Invest $735,000 in Nacogdoches to Support Local Community as Part of Hometown Strong Initiative Building on its ongoing sustainability and social responsibility efforts, Pilgrim’s announced plans to invest $735,000 in Nacogdoches, Texas, to support the community’s future. Pilgrim’s has been working with local leaders to identify where the funds can best help meet immediate and longer-term community needs in three key areas: food insecurity, community infrastructure and well-being, and COVID-19 emergency response and relief efforts. The Pilgrim’s Nacogdoches production facility employs more than 1,500 people with an annual payroll of nearly $62 million. The facility supports 280 growers, paying them more than $36 million per year for their livestock. Consistent with its long-term commitment to the local economy, Pilgrim’s Nacogdoches has invested more than $51 million in capital improvements over the last five years. Executive Commentary “We are very proud to provide food for our country, but we also recognize our important responsibility as a large local employer,” said Pilgrim’s Nacogdoches complex manager. “Our Hometown Strong program is giving us the opportunity to make lasting and meaningful impacts in our community.” For any queries, Please write to marketing@itshades.com Description 29
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Pilgrim’s (USA) to Invest $315,000 in Enterprise to Support Local Community as Part of Hometown Strong Initiative Building on its ongoing sustainability and social responsibility efforts, Pilgrim’s announced plans to invest $315,000 in Enterprise, Ala., to support the community’s future and help respond to needs resulting from the coronavirus pandemic. Pilgrim’s has been working with local leaders to identify where the funds can best help meet immediate and longer-term community needs in three key areas: food insecurity, community infrastructure and well-being, and COVID-19 emergency response and relief efforts. Projects will be determined by the end of the year. The Pilgrim’s Enterprise facility employs more than 650 people with an annual payroll of more than $21 million. The facility supports 110 growers, paying them more than $18 million per year for their livestock. Consistent with its long-term commitment to the local economy, Pilgrim’s Enterprise has invested more than $23 million in capital improvements over the last five years. Executive Commentary “We are proud to live and work in Enterprise and are thankful for the opportunity to help our neighbors,” said Pilgrim’s Enterprise complex manager. “Through Hometown Strong, we can demonstrate our commitment to partnering with our community and building a better future.” For any queries, Please write to marketing@itshades.com Description 30
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable JBS USA and Plumrose USA to Invest $990,000 in Omaha Region to Support Local Communities as Part of the Hometown Strong Initiative Building on ongoing sustainability and social responsibility efforts, JBS USA and Plumrose USA announced plans to invest $990,000 to help the Omaha, Neb., area respond to needs resulting from the coronavirus pandemic and invest in the community’s future. The companies have been working with local leaders to identify where the funds can best help meet immediate and longer-term community needs in three key areas: food insecurity, community infrastructure and well-being, and COVID-19 emergency response and relief efforts. All projects will be determined by the end of the year. One project has already been selected for funding. In October, JBS Omaha contributed $100,000 to the Boys & Girls Clubs of the Midlands to support programs and to create the JBS Kids Café at the South Omaha Boys & Girls Club. JBS Omaha has also helped with the evening meal program during the pandemic, providing more than 4,600 meals to the community. The JBS USA beef production facility in Omaha employs more than 650 people with an annual payroll of more than $31 million. The facility supports more than 500 producers, paying them more than $275 million per year for their livestock. Consistent with its long-term commitment to the local economy, JBS USA Omaha has invested more than $12 million in capital improvements over the last five years. Executive Commentary “We are honored to call Omaha our hometown and take great pride in being a reliable contributor to our local economy,” said JBS Omaha Plant Manager. “Through our Hometown Strong initiative, we want to provide support for the region and help overcome challenges created by the COVID pandemic so we can move forward together.” For any queries, Please write to marketing@itshades.com Description 31
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable JBS USA to Invest $1.1 Million in Plainwell to Support Local Community as Part of New Hometown Strong Initiative Building on its ongoing sustainability and social responsibility efforts, JBS USA announced plans to invest $1.1 million to help Plainwell, Mich., respond to needs resulting from the coronavirus pandemic and invest in the community’s future. JBS USA is working with local leaders to identify where the funds can best help meet immediate and longer-term community needs in three key areas: food insecurity, community infrastructure and well-being, and COVID-19 emergency response and relief efforts. One project has already been selected to receive funding. JBS Plainwell is contributing $100,000 to build the JBS Children’s Discovery Library at the new Ransom District Library. The JBS Children’s Discovery Library will create an exploratory learning environment for children to learn and play. Executive Commentary “We are proud to live and work in Plainwell and are thankful for the opportunity to help our neighbors,” said, JBS Plainwell plant manager. “Through Hometown Strong, we are demonstrating our commitment to be more than a reliable employer and help our community grow, thrive and move forward together.” For any queries, Please write to marketing@itshades.com Description 32
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Plumrose USA to Invest $400,000 in Elkhart to Support Local Community as Part of New Hometown Strong Initiative Building on its ongoing sustainability and social responsibility efforts, Plumrose USA announced plans to invest $400,000 in Elkhart, Ind., to support the community’s future. The company worked with local leaders to identify where the funds can best help meet community needs. In partnership with the Community Foundation of Elkhart County, Plumrose USA is supporting the revitalization of the Tolson Center and Park. The company is funding a new turf soccer complex, and construction will begin in spring of 2021. The Plumrose USA Elkhart facility employs nearly 300 people with an annual payroll of more than $62 million. Consistent with its long-term commitment to the local economy, Plumrose USA Elkhart has invested more than $6.5 million in capital improvements over the last three years. Executive Commentary “This is an exciting project for our community, and we are proud to play a role in building something that our neighbors and our team members can enjoy,” said Plumrose Elkhart plant manager. “Through our Hometown Strong program, we are demonstrating our longstanding commitment to the Elkhart region.” For any queries, Please write to marketing@itshades.com Description 33
Financial, M&A Updates IT Shades Engage & Enable The J.M. Smucker Co. (USA) Announces Fiscal 2021 Second Quarter Results Net Sales • Net sales increased 4 percent, primarily due to favorable volume/mix for the Company's U.S. Retail Coffee and U.S. Retail Consumer Foods segments, reflecting elevated at-home consumption, partially offset by reduced volume/mix for its Away From Home operating segment. Net price realization and foreign currency exchange were neutral. Operating Income • Gross profit increased $64.2 million, or 9 percent, primarily due to a favorable change in unallocated derivative gains and losses as compared to the prior year and the increased contribution from volume/mix. Operating income increased $51.0 million, or 15 percent, primarily reflecting the increase in gross profit, partially offset by a $21.3 million increase in selling, distribution, and administrative ("SD&A") expenses. • Adjusted gross profit increased $33.6 million, or 4 percent, with the difference from generally accepted accounting principles ("GAAP") results being the exclusion of unallocated derivative gains and losses. Adjusted operating income increased $17.8 million, or 5 percent, further reflecting the exclusion of other special project costs and amortization. Interest Expense, Other Income (Expense), and Income Taxes • Net interest expense decreased $4.0 million, primarily as a result of a decrease in interest rates and reduced debt outstanding, partially offset by interest expense related to interest rate contracts terminated in the fourth quarter of the prior year. • Net other expense increased $30.6 million, reflecting pension settlement charges, including a noncash pre-tax settlement charge of $27.9 million related to the Company's Canadian defined benefit pension plan, which is excluded from adjusted net income. • The effective income tax rate was 24.0 percent compared to 24.3 percent in the prior year. Cash Flow and Debt • Cash provided by operating activities was $378.7 million, compared to $224.0 million in the prior year, primarily reflecting a decrease in cash required to fund working capital and an increase in net income adjusted for noncash items. Free cash flow was $326.3 million, compared to $160.6 million in the prior year, reflecting the increase in cash provided by operating activities and an $11.0 million decrease in capital expenditures. Net debt repayments in the quarter totaled $216.1 million. Executive Commentary "In the second quarter, we focused on meeting the demands created by the current environment, while continuing to execute our long-term strategy to deliver sustainable growth," said President and Chief Executive Officer. "Our U.S. Retail Consumer Foods and U.S. Retail Coffee businesses experienced strong sales momentum from elevated at-home consumption trends and grew market share. I want to thank our employees for their ongoing hard work and dedication to provide our customers, consumers, and their pets with a steady food supply from trusted and iconic brands." For any queries, Please write to marketing@itshades.com 34 Key Financial Highlights
Lore Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable The J.M. Smucker Co. (USA) Completes The Divestiture Of Its Crisco® Business And Updates Fiscal Year 2021 Outlook The J.M. Smucker Co. announced the closing of the transaction to sell its Crisco® oils and shortening business to B&G Foods, Inc. for $550 million, subject to a working capital adjustment. The Company previously announced the signing of a definitive agreement to divest its Crisco® business on October 26, 2020. The transaction encompasses oils and shortening products sold under the Crisco® brand primarily in the U.S. and Canada, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and approximately 160 employees who support the Crisco® business. The business generated net sales of approximately $270 million for the Company's fiscal year ended April 30, 2020. The divestiture of the Crisco® business aligns with the Company's previously stated intent to exit the U.S. baking category and focus more of its resources on its core growth platforms of pet food, coffee, and snacking. The Company updated its full-year fiscal 2021 guidance to reflect the impact of the divested business. The outbreak of COVID-19 continues to impact financial results and cause uncertainty of the full-year fiscal 2021 outlook. For any queries, Please write to marketing@itshades.com Description 35
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable The J.M. Smucker Co. (USA) To Divest Its Natural Balance® Business The J.M. Smucker Co. announced it has entered into a definitive agreement to sell its Natural Balance® premium pet food business to Nexus Capital Management LP, in a cash transaction valued at approximately $50 million, subject to a working capital adjustment and before a one-time cash tax benefit to be realized on the sale. The transaction encompasses pet food products sold under the Natural Balance® brand, certain trademarks and licensing agreements, and select employees who support the Natural Balance® business. The business generated net sales of approximately $220 million for the Company's fiscal year ended April 30, 2020, which were reported in its U.S. Retail Pet Foods segment. The Company expects the divestiture to be dilutive to its adjusted earnings per share in the range of $0.05 to $0.10 on a full-year basis, reflecting the foregone profit related to the Natural Balance® business, before factoring in any potential benefit from the use of proceeds from the sale. The Company will discuss the transaction's impact on its fiscal year 2021 outlook when it releases its third quarter results in February 2021 and anticipates the earnings impact will be immaterial. Executive Commentary "The divestiture reflects our strategy to direct investments and resources toward areas of the business that will generate the greatest growth and profitability," said President and Chief Executive Officer, The J.M. Smucker Co. "Theannouncement helps the Company further focus on the core brands within our pet food and pet snacks portfolio including Rachael Ray® Nutrish®, Milk-Bone® and Meow Mix® among others, which together create a unique portfolio with significant long-term growth potential that meets consumer needs across value, mainstream and premium offerings." For any queries, Please write to marketing@itshades.com Description 36
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Keurig Dr Pepper (USA) Announces Completion of Sale and Distribution for its Largest Shareholder; Mondelēz International's (MDLZ) Position Reduced to Strategically Important Level Keurig Dr Pepper Inc. announced that JAB majority-owned subsidiary Maple Holdings B.V. ("Maple") and MDLZ will sell an aggregate of 60 million shares through a secondary offering. MDLZ will sell 40 million shares, bringing its stake to approximately 8.4% of KDP's outstanding common stock, while Maple will sell 20 million shares for the benefit of its minority partners. Additionally, JAB indicated that JAB and Maple will convert the final portion of Maple's minority partners' shares into shares held directly in KDP and will distribute approximately 119 million shares of KDP common stock, representing approximately 8.5% of KDP's outstanding common stock, currently held by Maple, to such minority holders. The distribution relates to the minority interests in Maple which were held by over 100 JAB Consumer Fund ("JCF") investors, comprised of mostly sovereign wealth funds, university endowments and family offices which invested alongside JAB over the last five years as part of its beverages investment strategy. Following these transactions, Maple will be renamed JAB Bevco and, through JAB Bevco, JAB and its affiliates will hold approximately 34% of KDP's outstanding common stock. Together, the transactions represent a major milestone step for KDP on its journey to becoming a widely-held modern beverage company. Upon the completion of the transactions, KDP's public float will increase to approximately 58%, as compared to approximately 13% at the time of the completion of the merger of Keurig Green Mountain and Dr Pepper Snapple Group in 2018. Executive Commentary CEO and Managing Partner of JAB, stated, " marks the final sale on behalf of and distribution to our minority partners of Maple, who have been invested alongside us for the past five years. We are very pleased to now place the remaining minority shares of Maple directly with our JCF partners who are like-minded, long-term focused investors. We continue to be highly confident in KDP's value creation potential and, therefore, JAB intends to remain a large, stable, long-term anchor investor supporting the growth of the company." For any queries, Please write to marketing@itshades.com Description 37
Lorem ipsum dolor sit amet, consec- tetuer Financial, M&A Updates IT Shades Engage & Enable Keurig Dr Pepper (USA) Further Strengthens its Direct-Store-Delivery Network with Two Territory Acquisitions Keurig Dr Pepper announced that it had reached agreements with The Red River Beverage Group and The Made-Rite Company to acquire the manufacturing, sales and distribution rights to key KDP owned and licensed brands in 37 counties in east Texas and northern Louisiana, reaching 1.5 million consumers. The transaction moves iconic brands such as Canada Dry, A&W, 7UP, Sunkist, Snapple, CORE, and Bai into KDP's company- owned direct-store-delivery (DSD) operations, beginning February 2021. In seven of these counties, the Dr Pepper brand will also move into the KDP DSD network. KDP currently has DSD operations in adjacent counties and will expand service into the acquired territory, with open positions and job requirements being discussed with interested employees at Red River Beverage Group and Made-Rite. KDP is driving strong performance across its total portfolio and has gained share in the vast majority of its category segments, including carbonated soft drinks, during the past year. Executive Commentary President Cold Beverages, for Keurig Dr Pepper stated, "KDP is focused on ensuring that each area in which we sell our brands has a competitive route-to-market. Our teams are well prepared to deliver excellent service to our retail customers and ensure the availability of these great brands wherever consumers shop. We are thankful to The Red River Beverage Group and The Made-Rite Company for their dedication to growing these brands, and we wish them continued success as their business models evolve." For any queries, Please write to marketing@itshades.com Description 38
Financial, M&A Updates IT Shades Engage & Enable Kohl's (USA) Reports Third Quarter Fiscal 2020 Financial Results • Third quarter sales and earnings exceed company expectations, with significant improvement from the second quarter • Strengthened financial position during the quarter by fully repaying revolver and ending with $1.9 billion in cash • Strong operating cash flow year-to-date of $910 million • Third quarter comparable sales decrease 13.3% • Third quarter loss per share of ($0.08); adjusted diluted earnings per share of $0.01 Executive Commentary “I continue to be very proud of how our organization is navigating through the COVID-19 pandemic. Our third quarter results exceeded our expectations with significant sequential sales and profitability improvement. Digital sales growth remained strong and our actions to improve our gross margin showed great progress. We also further strengthened our financial position and fully repaid our revolver during the period, which underscores the solid cash flow generation of our business,” said Kohl’s chief executive officer. We entered the holiday season well-positioned and prepared to serve our customers with more omnichannel conveniences in place to deliver the great experience they always expect from Kohl’s. As we look ahead, we are incredibly focused on executing against our new strategic framework, which represents our greatest opportunity to drive long-term sales and profit growth and create shareholder value in the coming years. “In addition, through disciplined capital management we plan to reinstate a dividend during the first half of 2021.” For any queries, Please write to marketing@itshades.com 39 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable Kroger (USA) Reports Third Quarter 2020 Results and Raises Full-Year 2020 Guidance • Total company sales were $29.7 billion in the third quarter, compared to $28.0 billion for the same period last year. Excluding fuel and dispositions, sales grew 11.3%. • Gross margin was 23.0% of sales for the third quarter. The FIFO gross margin rate, excluding fuel, decreased 2 basis points compared to the same period last year. This decrease was primarily driven by price investments and mix changes, offset by sourcing efficiencies, sales leverage and growth in alternative profit streams. • The LIFO charge was $23 million for both the third quarters of 2020 and 2019. • The Operating, General & Administrative rate decreased 30 basis points, excluding fuel and adjustment items, due to sales leverage and execution of Restock Kroger initiatives, partially offset by continued COVID-19 related investments to protect the health and safety of associates, customers and communities and increased incentive costs. Capital Allocation Strategy • Kroger's capital allocation strategy is to use its adjusted free cash flow to invest in the business and drive profitable growth while also maintaining its current investment grade debt rating and returning capital to shareholders. The company actively balances the use of its adjusted free cash flow to achieve these goals. • Kroger's net total debt to adjusted EBITDA ratio is 1.74, compared to 2.50 a year ago. The company's net total debt to adjusted EBITDA ratio target range is 2.30 to 2.50. Kroger held temporary cash investments of approximately $1.8 billion as of the end of the quarter, reflecting improved operating performance and significant improvement in working capital. • During the quarter, Kroger repurchased $304 million of shares under its $1 billion board authorization announced on September 11, 2020. Year-to-date, Kroger has repurchased $989 million of shares. • Earlier this year, Kroger increased the dividend by 13 percent, marking the 14th consecutive year of dividend increases. • Rent and depreciation, excluding fuel, decreased 27 basis points due to sales leverage. Executive Commentary Comments from CFO: "As a result of our continued strong performance, market share growth and the expectation of sustained trends in food at home consumption for the remainder of our fiscal year, we are raising our full year 2020 guidance. For the full year 2020, we expect total identical sales without fuel to be around 14% and adjusted EPS growth of 50% to 53%. Our guidance contemplates continued investments in associates and customers plus ongoing COVID-19 related costs, balanced with continued execution of cost savings initiatives and growth in alternative profit businesses. Looking toward 2021, we believe that our performance will be stronger than we would have expected prior to the pandemic when viewed as a two-year stacked result for identical sales without fuel growth and as a compounded growth rate over 2020 and 2021 for adjusted earnings per share growth." For any queries, Please write to marketing@itshades.com 40 Key Financial Highlights
Financial, M&A Updates IT Shades Engage & Enable L Brands (USA) Reports Record Third Quarter 2020 Results Reported results above include the following significant items: 1).In 2020, a net gain totaling $0.04 per share resulting from the following: • A $52.7 million pre-tax loss ($0.14 per share) on early extinguishment of debt; • A $29.9 million pre-tax gain ($0.10 per share) related to the establishment of a joint venture for the Victoria’s Secret U.K. business with Next PLC; and • A $23.1 million net tax benefit ($0.08 per share) related to tax matters associated with foreign investments and recent changes in tax legislation. 2).In 2019, charges of $0.93 per share resulting from the following: • A $247.5 million non-cash pre-tax impairment charge ($0.83 per share) related to certain Victoria’s Secret store and other assets; and • A $37.2 million pre-tax charge ($0.10 per share) to increase reserves related to ongoing guarantees for the La Senza business which was sold in the fourth quarter of 2018. 3). Excluding the above items, adjusted third quarter earnings per share were $1.13 compared to $0.02 last year, adjusted operating income was $550.7 million compared to $96.3 million last year, and adjusted net income was $320.3 million compared to $5.7 million last year. 4). At the conclusion of this press release is a reconciliation of reported-to-adjusted results, including a description of the above items. 5). The company reported net sales of $3.055 billion for the 13 weeks ended Oct. 31, 2020, compared to net sales of $2.677 billion for the quarter ended Nov. 2, 2019. Comparable sales increased 28 percent for the quarter ended Oct. 31, 2020. Executive Commentary Chief Executive Officer of L Brands, stated “L Brands reported a record third quarter, driven by exceptional results and continued strength at Bath & Body Works, and a significant improvement in performance at Victoria’s Secret. On behalf of the Board of Directors and the management team, I’d like to express our sincere appreciation to our associates, whose hard work and dedication during these unprecedented times made these results possible. As we head into the holidays, our inventories are well-positioned, and we are encouraged by customers’early response to our merchandise assortments. However, we are cautious about our ability to exceed last year’s fourth quarter sales and earnings results, given anticipated constraints on store traffic, online fulfillment and shipping capacity, as well as other uncertainties related to the COVID pandemic. We are confident in the strength of our brands and remain focused on execution and delivering the best possible outcome for the fourth quarter.” For any queries, Please write to marketing@itshades.com 41 Key Financial Highlights

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