YETI Holdings, Inc. · NYSE:YETI
YETI — Q4 2021 Earnings Presentation
26 slides from YETI's earnings presentation, Feb 17, 2022
Slide 1: Fourth Quarter 2021 Highlights
Fourth Quarter 2021 Highlights
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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
Slide 3: Strategic Priorities: Q4 2021 Highlights
STRATEGIC PRIORITIES: Q4 2021 HIGHLIGHTS 1 EXPAND OUR CUSTOMER BASE Introduced “The Mightier the Merrier” holiday marketing campaign Leveraged our highly-effective YETI Dispatch magalog across brand fans and prospects 2 INTRODUCE NEW PRODUCTS Strong Q4 2021 YoY growth across Drinkware (+21%) and Coo
Slide 4: FY 2021 Results at a Glance
FY 2021 RESULTS AT A GLANCE KEY FY 2021 FY 2021 Net Sales FINANCIAL METRICS $1.41B Net Sales +29% Net Sales Coolers & +24% +32% Equipment Coolers & Equipment Drinkware 39% $1.41B Drinkware 59% +35% +23%Wholesale DTC Other1 2% $295MM Adjusted Operating Income2 20.9% Adjusted Operating Margin 1 Other
Slide 5: Brand & Product
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Slide 6: Building Diverse YETI Communities
BUILDING DIVERSE YETI COMMUNITIES 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 157 Ambassadors 6
Slide 7: Strong, Diverse Media Reach
STRONG, DIVERSE MEDIA REACH LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 5MM 4.7MM 3.9MM 1.7MM 1.0M 1.0M 671K 609K 531K YETI - BRANDING CROSSROADS DUFFEL TUNDRA HAUL BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of February 1, 2022. 7
Slide 8: Media Highlights
MEDIA HIGHLIGHTS CountryLivin: %- va OUnITYLVINE .«w Forbes | . You Don't Want to Miss Out ’ oo : Holiday Gift Guide 2021: The The Yeti products that are actually The 50 Best Luxury Gifts for Men That He'll Use Over and Over Again Best Duffel Bags For Weekend worththe money a Travelers ni ay nie Yet
Slide 9: Broadening Awareness
BROADENING AWARENESS DOMESTIC UNAIDED BRAND AWARENESS BY REGION1 2018 2019 2020 2021 26% 24% 22% 20% 20% 19% 19% 18%18% 18% 17% 17% 16% 16% 16% 15% 15% 14% 14% 14% 13% 13% 13% 13% 12% 11% 11% 11% 11% 10% 10% 10% 9% 9% 8% 8% 8% 7% 5% 4% 3 3 East South West North West South South Atlantic 2 East North
Slide 10: Product & Category Evolution 2017-2021
PRODUCT & CATEGORY EVOLUTION 2017-2021 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 Hard Cooler Reef Blue River YETI King Crab YETI XV Limited Edition Haul™ Silo® Roadie® Navy Sagebrush Ice Pink Limited Edition Limited Edition Green Orange V Series™ 24 Tundra 50 So
Slide 11: Channels & Supply Chain
CHANNELS & SUPPLY CHAIN 11
Slide 12: Omni-Channel Strategy
OMNI-CHANNEL STRATEGY OVERVIEW • Balanced omni-channel strategy across DTC and wholesale channels • Faster growing DTC business supports higher gross margin profile • Diverse group of U.S. wholesale partners with only one account exceeding 10% of total gross sales1 • International reach into Canada,
Slide 13: Wholesale
WHOLESALE NATIONAL & REGIONAL ACCOUNTS INDEPENDENT DEALERS • Diverse dealers across BBQ, boating, building supply, camping, farming, fishing, hardware, hunting & shooting, and outdoor destinations • ~60% dealer reduction from FY15 to FY21 to strengthen our brand, drive merchandising consistency, and
Slide 14: DTC Channel
DTC CHANNEL YETI ECOMMERCE RETAIL AUSTIN AUSTIN Domain CHARLESTON CHICAGO DALLAS DENVER LAS OLAS HOUSTON SCOTTSDALE CORPORATE SALES YETI AUTHORIZED 14
Slide 15: Expand Internationally
EXPAND INTERNATIONALLY EXPANSION STRATEGY INTERNATIONAL FOOTPRINT • Focused on existing markets to drive deep consumer relevance and develop optimal omni-channel distribution • Building localized leadership and talent, processes, and 2019 Entry brand elements to scale opportunities 2017 Entry 2019 W
Slide 16: Global Supply Chain
GLOBAL SUPPLY CHAIN GLOBAL INFRASTRUCTURE • Partnerships with leading third-party manufacturing and logistics partners • Ongoing supplier focus on optimizing quality, delivery and best cost • Future capacity framework informed by diversification and redundancy • 3PL facilities in Memphis, Salt Lake
Slide 17: Financials
FINANCIALS 17
Slide 18: Q4 2021 Results
Q4 2021 RESULTS NET SALES $443 $376 Q4 2020 Q4 2021 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $152 $286 $134 $236 Q4 2020 Q4 2021 Q4 2020 Q4 2021 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $264 $179 $158 $218 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Note: $ in millions. 18
Slide 19: Q4 2021 Results (Cont'd)
Q4 2021 RESULTS (CONT’D) GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $255 / 57.5% $155 / 35.0% $225 / 59.8% $140 / 37.3% Q4 2020 Q4 2021 Q4 2020 Q4 2021 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $0.87 $100 / 22.5% $85 / 22.
Slide 20: Historical Results
HISTORICAL RESULTS NET SALES GROSS PROFIT Gross Profit % Margin $1,411 $900 70.0% $816 $800 $700 65.0% $1,092 $629 $600 $914 $500 $475 60.0% $383 $779 $400 57.6% 57.8% 55.0% $300 $200 52.0% 50.0% $100 49.2% $0 45.0% 2018 2019 2020 2021 2018 2019 2020 2021 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adj
Slide 21: Historical Results (Cont'd)
HISTORICAL RESULTS (CONT’D) CASH FREE CASH FLOW1 $312 $351 $253 $155 $80 $73 $90 $55 2018 2019 2020 2021 2018 2019 2020 2021 CAPITAL EXPENDITUTRES TOTAL DEBT2 Capital Expenditures % of Net Sales $70 10.0% $333 $60 $56 $300 $50 8.0% $40 6.0% $32 $30 $135 $21 4.0% $113 $20 $16 4.0% 3.5% 2.0% $10 2.7%
Slide 22: FY 2022 Outlook
FY 2022 OUTLOOK (as of 2/17/22) Metric Outlook Net Sales $1.665B to $1.693B Up 18% to 20% YoY Gross Margin ~55.0% Adjusted Operating Margin 1 ~20.0% Effective Tax Rate ~24.0% Adjusted Income per Diluted Share 1 $2.82 to $2.86 Up 10% to 11% YoY Diluted Weighted Avg. Shares Outstanding ~88.9MM Capital
Slide 23: Appendix
APPENDIX 23
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 2018 2019(1) 2020 2021 Net sales $ 778.8 $ 913.7 $ 1,091.7 $ 1,411.0 Operating income $ 102.2 $ 89.8 $ 214.2 $ 274.9 Non-cash stock-based compensation expense(2)(3) 13.2 52.3 9.0 15.5 Long-lived asset impairment(2) 1.2 0.6 1.1 2.5 Investments in new retail locations and inter
Slide 25: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q4 2020 Q4 2021 Net sales $ 375.8 $ 443.1 Selling, General, and Administrative $ 143.4 $ 161.1 Non-cash stock-based compensation expense(1) (2.7) (4.1) Long-lived asset impairment(1) (0.4) (0.1) Business optimization expense(1)(2) — (1.8) Adjusted Selling, General, a
Slide 26: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) FY 2022 Outlook Low High Net sales $ 1,665.0 $ 1,693.2 Operating income $ 310.0 $ 315.7 Non-cash stock-based compensation expense(1) 23.0 23.0 Adjusted operating income $ 333.0 $ 338.6 % of Net sales 20.0 % 20.0 % Net income 233.0 237.3 Non-cash stock-based compensat