YETI Holdings, Inc. · NYSE:YETI
YETI — Investor Presentation (December 2018)
32 slides from YETI's investor presentation, December 2018
Slide 1: Investor Presentation December 2018
Investor Prese pal om 5 . Decembe 20 Be
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT laimer 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 pres
Slide 3: • • • • • • • • • • • • • •
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Slide 4: A Rare and Compelling Opportunity
A RARE AND COMPELLING OPPORTUNITY INFLUENTIAL, GROWING MULTI-PRONGED STRATEGY 1 _ LIFESTYLE BRAND WITH A 2 ENABLING STRONG, PASSIONATE FOLLOWING SUSTAINABLE GROWTH SUPERIOR DESIGN BALANCED OMNI- 3 CAPABILITIES AND PRODUCT 4 __ CHANNEL DISTRIBUTION DEVELOPMENT STRATEGY SCALABLE STRONG, EXPERIENCED 5
Slide 5: YETI at a glance
• • • • • • 1 Please refer to pages 29 and 30 for a reconciliation of Adjusted EBITDA to net income. 4 Per May 2018 YETI Owner Study. 2 Other includes apparel, bottle openers, ice substitutes, dog bowls and other accessories. Dog 5 Represents visits to YETI.com and YETIcustomshop.com. 6 Includes Fac
Slide 6: A History of Growth, Innovation and Diversification
A HISTORY OF GROWTH, INNOVATION AND D awh VERSIFICATION % 2008 2010 2009 Added second hard cooler manufacturing partner Sd 2013 2015 2006 Group YETICoolers.com YETI Founding * YETI's Founders are avid outdoorsmen who were frustrated with equipment that could not keep pace * YETI's original cooler no
Slide 7: LTM September 2018
• • • • • ̶ • • ̶ ̶ ̶ ̶ ̶ • ̶ ̶ ̶ • ̶ ̶ • • • 34% 8% • 2015 LTM September 2018 • • • ̶ ̶ • ̶ ̶ (1) Represents 2018B gross sales by channel. (2) Reflects 2017 gross sales from wholesale POS and YETI.com.
Slide 8: Multi-Pronged Strategy Enabling Strong, Sustainable Growth
MULTI-PRONGED STRATEGY ENABLING STRONG, SUSTAINABLE GROWTH 1 2 INTRODUCE NEW PRODUCTS TO EXISTING AND NEW CUSTOMERS EXPAND CONSUMER BASE AND ENGAGEMENT Deepen consumer engagement Use proven NPD capabilities to and build on existing marketing expand existing product families and efforts to drive cons
Slide 9: Brand
Slide 10: Beach, Tailgate, On the Job, In the Park, Campfire, Backyard
BEACH TAILGATE ON THE JOB IN THE PARK CAMPFIRE BACKYARD • • 1 Per May 2015 and May 2018 YETI Owner Study.
Slide 11: Broad Use Cases
BROAD USE CASES YETI Draws Consumers From Sizable and Diverse Market Segments ~ y By | = ; ve bs [ey y bali oP ‘eS A ‘ 2 a Low hme) hae
Slide 12: YETI Has Built a Diverse and Respected Group of Ambassadors
YETI HAS BUILT A DIVERSE AND RESPECTED GROUP OF AMBASSADORS From Hunting Whitetail to Competitive Surfing, They Embody the YETI Life RANCH & FISHING HUNTING OUTDOOR -l-
Slide 13: Social media following versus peers
Source: Public company filings and equity research. 1 Instagram as of December 17, 2018. 2 Heritage market region. 3 Non-heritage market region.
Slide 14: Built for the Wild
BUILT FOR THE WILD, a YETI
Slide 15: Identifying Consumer Pain Points
IDENTIFYING CONSUMER PAIN POINTS UNDERSTANDING YETI’S INNOVATION CULTURE FROM THE VERY BEGINNING WE SEE OPPORTUNITIES AND INSPIRATION FROM EVERYWHERE AND FROM EVERYONE AT WORK, IN THE FIELD, IN LIFE, WE LOOK FOR UNIQUE WAYS TO MAKE PRODUCTS BETTER -14- YETI
Slide 16: Product and Category Evolution Since 2015
PRODUCT AND CATEGORY EVOLUTION SINCE 2015 Camino™ Panga™ Tocayo Panga™ Carryall Backpack Backpack \ ' \ I \ ' \ I \ I i ' \ I \ ' \ I \ t ' I \ ' \ I ' \ ‘ I Cargo | \ I \ 1 I ' \ I \ ' \ I i \ I \ ' \ I ' | t 1 ' \ I \ ' \ I 1H 2H 1H 2H 1H 2H 1H 2H 2015 2015 2016 2016 2017 2017 2018 2018 ——- —_ Har
Slide 17: Channel
Slide 18: Net sales by channel
• • ¹ • • 1 Wholesale includes $8.3 million of sales to Rambler On.
Slide 19: Wholesale Sales Channel
WHOLESALE SALES CHANNEL OVERVIEW NORTH AMERICAN REGIONAL SALES MAP Three dealer groups: National Accounts, Regional Key Accounts, and Independent Dealers Separate sales management infrastructures for each of National Accounts, Regional Key Accounts, and Independent Dealers YETI’s sales team and supp
Slide 20: DTC Channel
DIC CHANNEL YETI.COM AMAZON.COM Ae aw AG BS eo WETLANDS 4 © TUNDRA . fulfillment amazon A SOFT COOLERS Het CORPORATE SALES Sean TOP PRODUCTS Hard Coolers Drinkware Coow.ucH| Ose A OC ‘ = i YETI
Slide 21: Retail Extends the Complete YETI Experience to Brick & Mortar
RETAIL EXTENDS THE COMPLETE YETI EXPERIENCE TO BRICK & MORTAR USING RETAIL TO BUILD OUR BRAND AND DRIVE GROWTH Full Merchandise Assortment Brand Experience & Consumer Engagement 2019 RETAIL LAUNCH LOCATIONS KING STREET, CHARLESTON Leverage brand strength and showcase product breadth in the heart of
Slide 22: International expansion
• • • • 1 Represents last fiscal year international percentage of sales from international markets per public company filings as of October 3, 2018. YETI international percentage of 2017 net sales.
Slide 23: Supply Chain
Slide 24: Global, Leading Supply Chain
GLOBAL, LEADING SUPPLY CHAIN HIGHLIGHTS GLOBAL INFRASTRUCTURE Global supply chain of leading third-party manufacturing and logistics partners YETI manages suppliers by optimizing a combination of quality, delivery, best cost and concentration risk Grew key manufacturing partners in 2017 and 2018 whi
Slide 25: Built for the Wild
BUILT £0R THE (WILD, YETI
Slide 26: Financial results and Adjusted EBITDA
¹ Note: $ in millions. 1 Adjusted for net income before interest expense, income tax expense, depreciation and amortization expense, non-cash stock-based compensation expense, early extinguishment of debt, asset impairment charges, investments in new retail locations and international market expansi
Slide 27: Leverage and liquidity
1 Leverage ratio defined as Net Debt to LTM Adjusted EBITDA
Slide 28: Long-Term Targets
These are not projections; they are goals/targets and are forward-looking, subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to fut
Slide 29: Appendix
Slide 30: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Net Income $74.2 $48.8 $15.4 $11.4 $32.6 $36.6 Interest Expense 61 217 32.6 24.0 24.5 33.1 Income Tax Expense 411 16.5 16.7 6.0 7.2 7.8 Depreciation and Amortization 7S 17 20.8 15.2 18.2 23.8 (41) _ Stock-Based Compensation 0.6 118.4 13.4 9.2 10.0 14.2 (2) — Early Exti
Slide 31: Preliminary third quarter 2018 results
Note: $ in millions. Closing procedures for the three months ended September 30, 2018 have not been completed. Set forth above are selected unaudited, preliminary, estimated financial results for the third quarter ended September 30, 2018. These estimated financial results are preliminary and subjec
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