YETI Holdings, Inc. · NYSE:YETI
YETI — Q1 2021 Earnings Presentation
22 slides from YETI's earnings presentation, May 13, 2021
Slide 1: First Quarter 2021 Highlights
First Quarter 2021 Highlights
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward-
Slide 3: Strategic priorities: customers, new products, DTC, international
1 EXPANDING OUR CUSTOMER BASE Supported our new Crossroads® bags collection with an expansive go-to-market strategy Execution of breadth and depth marketing strategy with a focus on scale, diversity and globalization Fast Company named YETI as one of “The 10 Most Innovative Branding Companies of 202
Slide 4: Key LTM Q1 2021 Financial Metrics
KEY LTM Q1 2021 LTM Q1 2021 Net Sales FINANCIAL METRICS $1.16BNet Sales +25% Net Sales Coolers & +30% +21% Equipment Coolers & Equipment Drinkware 41% $1.16B Drinkware 57% +55% +2% Wholesale DTC Other1 2% $250MM Adjusted Operating Income2 21.5% Adjusted Operating Margin 1 Other includes apparel, bot
Slide 5: Built for the Wild
5 BUILT £OR THE WILD,
Slide 6: Community Reach: Relevance Through Breadth & Depth
2006 Community Reach FISHING HUNTING 2021 Community Reach FISHING HUNTING BEER & BBQ CULINARY SKI/SNOWBOARD SKATEBOARD SURF/PADDLE CLIMB/ALPINE RODEO RANCH WELLNESS MUSIC SPORTS Relevance Through Breadth & Depth 13 Communities 139 Ambassadors 6
Slide 7: Social Media Presence, Earned Media and Awards
LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 4.8MM 4.6MM 3.6MM 1.6MM 967K 746K 607K 576K 477K YETI - BRANDING ROADIE 24 TUNDRA HAUL BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of May 5, 2021. 7
Slide 8: Domestic Unaided Brand Awareness and Brand Owner Study
DOMESTIC UNAIDED BRAND AWARENESS BY REGION 2018 2019 2020 20% 20% 19% 18%18% 16% 16% 15% 15% 14% 14% 14% 13% 13% 13% 13% 12% 11% 11% 11% 10% 10% 10% 9% 8% 8% 8% 7% 5% 4% West North East South West South South Atlantic Pacific East North Mid Atlantic New England Mountain Total U.S. Central Central Ce
Slide 9: Product Evolution: Coolers & Equipment and Drinkware
1H 2H 1H 2H 1H 2H 1H 2H 1H 2017 2017 2018 2018 2019 2019 2020 2020 2021 Hard Cooler River YETI Roadie® King Crab Limited Edition Limited Edition Limited Edition Haul™ Silo® Reef Blue Navy Sagebrush Ice Pink Green V Series™ 24 Orange Soft Cooler Daytrip® Hopper® Daytrip® Hopper Flip® 8 Hopper® Two Ho
Slide 10: Channel & Supply Chain
CHANNEL & SUPPLY CHAIN 10 BUILT £OR THE WILD, YETI
Slide 11: Strategic Channel Mix Creates Stable, High Margin Profile
HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 LTM Q1 2021 • Faster growing DTC business Wholesale2 Wholesale 46% • Diverse group of U.S. wholesale partners with 92% nationwide coverage; no account exceeds 10% of $469MM $1.16B gross sales1 D
Slide 12: YETI.com, Retail, Corporate Sales, Authorized Dealers
YETI.COM RETAIL CORPORATE SALES YETI AUTHORIZED 12
Slide 13: Growing Global Sales Expansion Strategy
GROWING GLOBAL SALES EXPANSION STRATEGY • Capitalize on global digital, e-commerce, and mobile trends DTC & Wholesale DTC & Wholesale • Enter international markets via DTC and select wholesale • Push global brand via Ambassador, influencer, and event marketing 59% 41% 29% 31% Wholesale DTC & Wholesa
Slide 14: Global Infrastructure and Footprint
GLOBAL INFRASTRUCTURE GLOBAL FOOTPRINT • Leading third-party manufacturing and logistics partners l • Focused on optimizing quality, delivery and best cost l l ll l l l lll l ll l l • Completed “should cost” analysis and supplier negotiations l ll • Soft coolers and bag supply chain transition
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Slide 16: Net Sales: Category and Channel Growth
NET SALES $248 $174 Q1 2020 Q1 2021 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $93 $149 $113 $59 Q1 2020 Q1 2021 Q1 2020 Q1 2021 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $121 $127 $95 $80 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Note: $ in millions. 16
Slide 17: Gross Profit, Adjusted SG&A, Operating Income and EPS
GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $145 / 58.6% $101 / 41.0% $92 / 53.0% $74 / 42.7% Q1 2020 Q1 2021 Q1 2020 Q1 2021 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $44 / 17.7% $0.38 $18 / 10.3% $0.11 Q1 2020 Q1 2021 Q1
Slide 18: Net Sales, Gross Profit, Adjusted Operating Income, Adjusted EPS
NET SALES GROSS PROFIT Gross Profit % Margin $1,092 $629 $914 $475 $779 $383 58% 52% 49% 2018 2019 2020 2018 2019 2020 ADJUSTED OPERATING INCOME1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted Operating Income1 % Margin $1.87 $224 $143 $1.06 $124 $0.91 21% 16% 16% 2018 2019 2020 2018 2019 2020 Note
Slide 19: Cash, Free Cash Flow, Capex and Total Debt
CASH FREE CASH FLOW1 $253 $351 $155 $80 $73 $55 2018 2019 2020 2018 2019 2020 CAPITAL EXPENDITUTRES TOTAL DEBT2 $333 Capital Expenditures % of Net Sales $300 $32 $21 $16 $135 4% 2% 2% 2018 2019 2020 2018 2019 2020 Note: $ in millions. 1 Operating cash flow less capital expenditures 2 Excludes financ
Slide 20: Appendix
APPENDIX
Slide 21: GAAP to Non-GAAP Reconciliation 2018-2020
2018 2019(1) 2020 Operating income $ 102.2 $ 89.8 $ 214.2 Non-cash stock-based compensation expense(2)(3) 13.2 52.3 9.0 Long-lived asset impairment(2) 1.2 0.6 1.1 Investments in new retail locations and international market expansion(2)(4) 0.8 — — Transition to Cortec majority ownership(2)(5) 0.8 —
Slide 22: Q1 2020 and Q1 2021 Non-GAAP Reconciliation
Q1 2020 Q1 2021 Selling, General, and Administrative $ 76.3 $ 105.1 Non-cash stock-based compensation expense(1) (1.9) (3.4) Long-lived asset impairment(1) — (0.3) Adjusted Selling, General, and Administrative $ 74.4 $ 101.4 Operating income $ 16.2 $ 40.0 Non-cash stock-based compensation expense(1)