YETI Holdings, Inc. · NYSE:YETI
YETI — Q4 2020 Earnings Presentation
22 slides from YETI's earnings presentation, Feb 11, 2021
Slide 1: Fourth Quarter 2020 Highlights
Fourth Quarter 2020 Highlights
Slide 2: Disclaimer
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: Expanding Customer Base, New Products, Accelerate DTC, Expand Internationally
1 EXPANDING OUR CUSTOMER BASE Successful integration of the “Haulidays” campaign across print, digital, and omni-channel Expanded YETI Dispatch magalog distribution and extended content across digital channels Reinforced holiday messaging with impactful lifestyle and product-driven TV ads 2 INTRODUC
Slide 4: Key FY 2020 Financial Metrics
KEY FY 2020 FY 2020 Net Sales FINANCIAL METRICS $1.09BNet Sales 19% Net Sales Growth Coolers & 21% 19% Equipment Coolers & Equipment Growth Drinkware Growth 41% FY 2020 $1.09B Drinkware 58% 50% -3% Wholesale Growth DTC Growth Other1 1% $224MM Adjusted Operating Income2 20.5% Adjusted Operating Margi
Slide 5: Built for the Wild
5 BUILT £OR THE WILD,
Slide 6: Community Reach 2006 vs 2020
2006 Community Reach FISHING HUNTING 2020 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 137 Ambassadors 6
Slide 7: Large and Growing Social Media Presence, Earned Media, Awards
LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 4.8MM 4.6MM 3.5MM 3.4MM 1.6MM 688K 621K 560K 469K V SERIES ROADIE 24 ROADIE 24 BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of February 2, 2021. 7
Slide 8: Domestic Unaided Brand Awareness by Region; Brand Owner Study
DOMESTIC UNAIDED BRAND AWARENESS BY REGION 2019 2015 20% 18% 14% 13% 11% 11% 10% 9% 8% 7% 4% 3% 2% 1% 1% 1% 1% 0% 3 3 3 East South2 West South 2 East North 3 West North 3 South 2 Pacific New 3 Mountain Mid Atlantic Central Central Central Central Atlantic England BRAND OWNER STUDY1 9% 33% 69% 35% 64
Slide 9: Product Introductions: Coolers & Equipment and Drinkware
1H 2H 1H 2H 1H 2H 1H 2H Pre-2016 2017 2017 2018 2018 2019 2019 2020 2020 Hard Cooler Sherpa™, Roadie®, Tundra® 210 Limited Edition Limited Edition Limited Edition Haul™ Silo® Reef Blue River YETI Roadie® Navy Sagebrush Ice Pink Tundra®, YETI Tank™ Green V Series™ 24 Soft Cooler Hopper® Field Tan Day
Slide 10: Channel & Supply Chain
CHANNEL & SUPPLY CHAIN
Slide 11: Strategic Channel Mix Creates Stable, High Margin Profile
HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 2020 • Faster growing DTC business Wholesale2 Wholesale 47% • Diverse group of U.S. wholesale partners with 92% nationwide coverage; no account exceeds 10% of $469MM $1.09B gross sales1 DTC • Su
Slide 12: YETI.com, Retail, Corporate Sales, YETI Authorized
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% Wholesale DTC & Wholesale 28% 2
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
Slide 15: 15
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Slide 16: 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 17: Cash, Free Cash Flow, Capex, 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 18: Q4 Net Sales by Category and Channel
NET SALES $376 $298 Q4 2019 Q4 2020 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $134 $236 $102 $192 Q4 2019 Q4 2020 Q4 2019 Q4 2020 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $218 $158 $149 $149 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Note: $ in millions. 18
Slide 19: Q4 Gross Profit, Adjusted SG&A, Operating Income, EPS
GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $225 / 59.8% $140 / 37.3% $162 / 54.5% $108 / 36.4% Q4 2019 Q4 2020 Q4 2019 Q4 2020 ADJUSTED OPERATING INCOME1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted Operating Income1 $ / % Margin $85 / 22.5% $0.74 $54 / 18.1
Slide 20: Appendix
APPENDIX
Slide 21: Non-GAAP Reconciliation FY 2018-2020
2018(1) 2019 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: Non-GAAP Reconciliation Q4 2019 and Q4 2020
Q4 2019 Q4 2020 Selling, General, and Administrative $ 150.4 $ 143.4 Non-cash stock-based compensation expense(1)(2) (41.9) (2.7) Long-lived asset impairment(1) (0.1) (0.4) Adjusted Selling, General, and Administrative $ 108.4 $ 140.3 Operating income $ 12.0 $ 81.4 Non-cash stock-based compensation