To: Anna, Managing Director

From: Sarah
Subject: Potential M&A targets in Asia

Dear Madam,

With respect to the call with Mr. Mark, Hong Kong Director to discuss potential M&A targets for WorldWide
Brewing Co. I’ve considered all five targets and have given a concise description of each company below and
why they are (or are not) appropriate to share with Mr. Carlos as potential M&A targets.
When deciding if a target is appropriate to share with Carlos, I’ve considered the following elements:
 If this make sense from a strategic and financial perspective – I’ve considered which acquisitions may
be a good fit for your client
 Given the shareholder structures of the targets, I’ve considered the simplicity/feasibility of each option

Company Description Relevance to WorldWide Recommendation

Brewing

HappyHour HappyHour Co. is the largest It has similar operations to Recommend

Co. player in Singapore and
Malaysia, in the segments of
beer, spirits and non-
alcoholic beverages. Its
operations include
manufacturing facilities,
distribution and direct sales
and it has demonstrated
strong growth in EBITDA in
FY2020 which was up 20%
pcp and amounted to
US$300mm.
Spirit Bay is an Indonesian
Spirit Bay company in Singapore,
Malaysia and China,
operating in beers, spirits and
non-alcoholic beverages.
They are the #1 player in
Indonesia, and #2 in
Singapore and Malaysia.
Operations are integrated
too. Their manufacturing
facilities are located in
Indonesia. It has reported
US$400mm in EBITDA, which
is 40% up from the previous
period.
Hipsters’ Ale is a Malaysian
Hipsters’ beer and spirits company
Ale operating in Singapore,
Indonesia, Japan, Korea and
Cambodia. Hipsters’ Ale
manufactures, distributes,
and sell their products
directly. It had demonstrated
strong growth of 15% of
about US$200mm EBITDA as
compared to the previous
year.
WorldWide Brewing across the
same segments and is the
leading player in Singapore and
Malaysia, suggesting the
potential for strategic benefits
and synergies. It has solid
financial results and an
ownership structure that is
owned by 3 families, rendering a
potential acquisition relatively
simple and feasible. HappyHour
Co. would be appropriate to
share.
It has similar operations to Recommend
WorldWide Brewing across the
same segments in beers, spirits
and non-alcoholic beverages in
Singapore, Malaysia and China.
The growth rate seems
attractive and the company is
60% owned by a Global Sponsor,
and have been undergoing
aggressive cost cutting measures
to improve their earnings.
Spirit Bay would be appropriate
to share.
It has operations in similar Recommend
segments like beer and spirits.
The company is owned by 30
independent breweries. All the
manufacturing facilities are led
by a consortium of independent
microbreweries in each
respective region.
 Brew Co. is a Malaysian beer
Brew Co. and spirits’ company. They
only operate in
manufacturing facilities, but
they are the #1 alcohol
manufacturing player in
Malaysia.
They’ve earnt US$800mm in
EBITDA for FY2020, which is
actually 5% down from last
year.
Bevy’s Direct is based in
Bevy’s Singapore. They operate in
Direct beer, spirits and non-
alcoholic beverages across
Malaysia, China, Indonesia,
Japan, Korea, Cambodia,
Australia and New Zealand,
but they only do wholesale
distribution.
They’ve earned US$250mm
in FY2020 EBITDA, up 20%
from the year prior.
Regards,
Sarah
Similar to WorldWide Brewing, Recommend
this company also operates in
beer and spirits’ segment.
Shareholders are mostly
institutional. They are listed on
the Bursa Malaysia, the stock
exchange in Malaysia. Brew Co.
has a good control in the market
considering its revenue
generation but revenue has
declined as compared with the
previous year. It might/might
not be a good choice.
It has similar operations to Recommend
WorldWide Brewing across the
same segments and is the
leading player in Malaysia,
China, Indonesia, Japan, Korea,
Cambodia, Australia and New
Zealand suggesting the potential
for strategic benefits and
synergies. It is owned by a single
family only. Bevy’s Direct would
be appropriate to share.