Sharkninja, Inc. · NYSE:SN
Sharkninja — IPO Roadshow (July 2023)
62 slides from Sharkninja's IPO roadshow presentation, Jul 12, 2023
Slide 1: Investor Presentation July 2023
INVESTOR PRESENTATION JULY 2023 Filed pursuant to Rule 433 of the Securities Act of 1933, as amended Issuer Free Writing Prospectus dated July 12, 2023 Relating to the Preliminary Prospectus dated July 11, 2023 Registration Statement No. 333 - 272973
Slide 2: Free writing prospectus and forward-looking statements
This free writing prospectus relates to the registration of ordinary shares of SharkNinja, Inc. (the "Company," "we" or "our" ) a nd should be read together with the preliminary prospectus dated July 11, 2023 that was included in Amendment No. 1 to the re gis tration statement on Form F - 1 (File No
Slide 3: Today's Presenters
3 Today’s Presenters Chief Executive Officer & President Mark Barrocas Interim Chief Financial Officer & Chief Accounting Officer Larry Flynn Chief Design Officer Ross Richardson Executive Vice President, Operations Kim Smolko Chief Commercial Officer Neil Shah
Slide 4: Agenda
4 Agenda Introduction to SharkNinja Mark Barrocas Disruptive Innovation Ross Richardson Go - To - Market Strategy Neil Shah Manufacturing and Supply Chain Kim Smolko Financial Overview Larry Flynn Conclusion Mark Barrocas
Slide 5: Introduction to SharkNinja
Introduction to SharkNinja 5
Slide 6: Who We Are
6 Who We Are Positively impacting people’s lives every day in every home in our global markets The people who built a consumer problem solving engine We solve consumer problems that others either do not see or are unable to solve We create five - star rated innovative lifestyle solutions for consume
Slide 7: Two Scaled, Diverse and Growing Brands
$2.0Bn Net Sales (2022A) $ 250MM $ 3.7Bn 2008 2022 7 Two Scaled, Diverse and Growing Brands 2 $1.7Bn Net Sales (2022A) 7 new product sub - categories entered in the last 3 years 4 3 new product sub - categories entered in the last 3 years 3 16 Total Sub - Categories 11 Total Sub - Categories Net Sal
Slide 8: Highly Diversified Business and Offering
78.6% 13.3% 3.6% 4.5% 8 Highly Diversified Business and Offering $3.7Bn 1 2022A Net Sales Rest of World 1 Other Europe North America United Kingdom 1. Excludes APAC; APAC is defined as Asia Pacific Region and Greater China.; Adjusted Net Sales of $3.6Bn which excludes those regions. 2. Upon completi
Slide 9: Who We Serve
9 Who We Serve A discerning and educated global consumer They’re the people who read the reviews and scour the ratings , d elighted by new technology. They’re proud of their homes. They know value when they see it because they’ve done the research. They only trust brands that have proven their worth
Slide 10: What We Deliver
10 What We Deliver PERFORMANCE High - performing products that exceed expectations QUALITY 5 - star quality product experience SPEED First - to - market disruptive innovations VALUE Accessible prices for incredible value SharkNinja strives to deliver all four of these critical consumer value points
Slide 11: We Aim to Delight Our Consumers
Leveraging Reviews In - person Testing Always - on Consumer Insights Solving Pain Points Compelling Value We Aim to Delight Our Consumers Through 11 5 - star Rated Products Improving Quality of Life Global Insights 700+ Cross - functional Engineering and Design Associates 1 24/7 Innovation Cycle Dis
Slide 12: How We Do It
12 How We Do It Perpetual disruptive innovation a nd technologies Continuous consumer engagement, insights and dynamic testing fuels our disruptive innovation engine. Our global product design and engineering team creates new technologies and intellectual property that differentiates our products We
Slide 13: Creating & Fulfilling Demand
13 Creating & Fulfilling Demand Creating Demand Fulfilling Demand Our a lways - on o mni - channel marketing strategy Our global marketing organization deploys strategies that capture the hearts and minds of consumers worldwide. We do not wait fo r demand to happen, we create it. We never practice r
Slide 14: Our Growth Strategies
14 Our Growth Strategies Our highly diversified business is powered by trusted brands, which enables us to drive sustainable long - term global growth. We continuously broaden our geographic footprint and scale into new product categories and markets that reach more consumers in the constant pur sui
Slide 15: Growing Share in Our Existing Categories
15 Growing Share in Our Existing Categories 1. According to NPD Group’s Retail Tracking Service. 2. According to GfK data, which is based on volume and value sales in Great Britain and/or the United Kingdom. 38% 24% 15% 30% 32% 22% 4% 28% 12% 5% 43% 34% 25% 32% 41% 27% 23% 43% 27% 8% Upright Vacuum
Slide 16: Entering Adjacent and New Categories
• Launched in 2021 • In 2022, became #1 - selling ice cream maker in the US • Doubling the category size • Launched in 2021 • The HyperAIR quickly became the #1 - selling hair dryer priced in the $100 - $300 range 1 • Launched in 2022 • Success of our indoor heated cooking line has enabled us to ent
Slide 17: Opening New Doors
17 Opening New Doors To more homes, more rooms, and more growth for us Shark Categories Ninja Categories • Mops • Handheld Vacuums • Upright Vacuums • Corded Stick Vacuums • Cordless Stick Vacuums • Robot Vacuums • Canister Vacuums • Hair Dryers • Air Purifiers • 2 - in - 1 Vacuums • Hair Stylers •
Slide 18: Entering New Geographies
Entering New Geographies 18 We operate in 26 markets 1 and our international expansion remains a key area of strategic focus International 2 $795MM Net Sales in 2022 21% Net Sales CAGR from 2020 – 2022 Contributed 26% of growth from 2020 – 2022 1. Upon completion of the separation and distribution.
Slide 19: We Are Just Getting Started
$250MM $1.5Bn $3.7Bn 2008 2018 2022 1. Adjusted Net Sales of $3.6Bn which represents sales excluding APAC; APAC is defined as Asia Pacific Region and Greater China. 2. Represents fiscal year end March 2008. 19 We Are Just Getting Started 2 1 • Consumer P roblem S olving E ngine • Trusted Global B il
Slide 20: Disruptive Innovation
Disruptive Innovation
Slide 21: We Are a Scaled Engineering Powerhouse
21 We Are a Scaled Engineering Powerhouse 1. As of December 31, 2022. Our research and development (“R&D”) engine has been optimized over decades into the scalable innovation enterprise it is tod ay The embedded nature of our engineering and design teams powers our idea - generation machine • We hav
Slide 22: No-Loss-Of-Suction Technology Redefining the Possible
No - Loss - Of - Suction Technology 22 Redefining the Possible • We constantly analyze consumers’ interactions with small home appliances and leverage consumer reviews • We apply always - on consumer insights to create new technologies and intellectual property that differentiates our products • Alm
Slide 23: Innovation Driven by Consumer Insights and Dynamic Testing
23 Innovation Driven by Consumer Insights and Dynamic Testing • Over 700 engineering and design experts collaborate around the clock 1 – United States – United Kingdom – China Laboratory • Products tested in simulated home environments • In - person consumer testing enables our experts to gather dir
Slide 24: Shark Disruptive Technologies
24 Shark Disruptive Technologies Hair Stylers Steam Mops Cordless Stick Vacuums Across Floorcare FlexStyle Steam & Scrub Clean Sense IQ Clean Sense Air Purifier Robots Vacuums WandVac HydroVac Matrix Clean Navigation Self - Cleaning Brush Roll Auto Empty Cordless Wet / Dry Cleaning
Slide 25: Ditch the Dirty Work: WandVac Auto Empty
Ditch the Dirty Work 25 Wandvac Auto Empty Technology Self - emptying means no hands - on dirty work with the dust cup VS
Slide 26: Ninja Disruptive Technologies
26 Ninja Disruptive Technologies Cutlery Air Fryers Ovens Ovens NeverDull Knives Dual Zone Air Fryers Dual Zone Ovens 2 - in - 1 Flip Oven Cookware Ice Cream Makers Outdoor Grills Blenders NeverStick Cookware CREAMi Woodfire Professional Plus Blender
Slide 27: Woodfire Technology
Evenly circulates heat and smoke around food 27 Our integrated smoke box, high - powered convection fan and specially designed Ninja Woodfire Pellets work together to create rich , fully developed woodfire flavor Woodfire Technology Convection Fan Get smoking with just ½ cup of pellets Integrated Sm
Slide 28: Innovation Across and Within Categories
28 Innovation Across and Within Categories Adjacencies Entered and Expanded Launched in 2018 The (Original) Ninja Foodi TenderCrisp Pressure Cooker ARP Air Fryers Ninja Heated Cooking Portfolio Today Pressure / Multi Cookers Indoor Grills Countertop Ovens Toasters Outdoor Grills Low High Case Study:
Slide 29: Shark is a Repeat Disruptor of Large, Adjacent Markets
29 Shark is a Repeat Disruptor of Large, Adjacent Markets 1. According to NPD for three months ended December 31, 2022. 2. Represents views of SharkBeauty campaign TikTok since August 24, 2022. Case Study: Beauty Achieving Significant Milestones Such As… Within less than 1 year… Shark expanded by la
Slide 30: Ninja is a Repeat Disruptor of Large, Adjacent Markets
30 Ninja is a Repeat Disruptor of Large, Adjacent Markets With Many Unique Features, Such As… Launched in 2022 The Ninja Woodfire outdoor grill uses proprietary technology to cook low and slow, or hot and fast, with massive woodfire flavor Proprietary Technology to Cook Low and Slow or Hot and Fast
Slide 31: Go-To-Market Strategy
Go - To - Market Strategy
Slide 32: We Create and Fulfill Demand
Our goal is to be the most relevant and prominent brand wherever consumers shop 32 We Create and Fulfill Demand Omni - Channel Marketing Omni - Channel Distribution We never practice retailer exclusivity, we aim to reach consumers where they choose to shop – in - store and online Public Relations St
Slide 33: Consumer-Focused Storytelling
We have mastered the art of storytelling over decades, tailoring our approach to appeal to the right audience through the right media format at the right time 33 Consumer - Focused Storytelling Long - Form Storytelling Short - Form Storytelling Our always - on omni - channel marketing strategy is un
Slide 34: Solutions-Driven Marketing
Our global marketing organization, consisting of over 350 employees 1 , highlights our innovative solutions to consumer problems through brand marketing, digital marketing and retail product marketing 34 Solutions - Driven Marketing Ninja Solution Consumer Pain Point NeverStick Cookware Flex Feature
Slide 35: Highly Engaged Consumers
Our global marketing organization is designed to deploy 360 - degree marketing strategies in categories we believe have not been historically known for high engagement 35 Highly Engaged Consumers 1. For year end December 31, 2022, vs. year end December 31, 2020 across Facebook, Instagram, TikTok, Yo
Slide 36: Omni-Channel Distribution
36 Omni - Channel Distribution SharkNinja Available Everywhere : we focus on being everywhere our consumer shops We never practice channel or retailer exclusivity We adopt distribution channel strategies tailored to specific regions and deliver products specific to local needs Shark and Ninja serve
Slide 37: Strong Global Retail Partnerships
37 Strong Global Retail Partnerships 1. Top three retailers accounted for 43% of 2022 net sales. Low Retailer Concentration Our largest customer represents 17% of retail sales Strong Retailer Relationships 14 key retail accounts in the United States Global Retailer Partnerships Partner with 49 retai
Slide 38: Our Retailer Advantage
38 Our Retailer Advantage Our Advantage to Retailers Creating Winning Outcomes for Us Build deep relationships with our diverse retailer base Retailer - specific strategies High quality products, low return rates Proven track record of launching category - leading products Proven ability to execute
Slide 39: Direct-to-Consumer is Our Launch Platform
39 Direct - to - Consumer is Our Launch Platform Deepens consumer engagement Controls consumer experience Aids consumer education Harnesses data insights Increases gross margin .com .co.uk .de .fr .es .it Our International DTC Footprint Our DTC Offering sharkclean ninjakitchen
Slide 40: International Expansion Case Study: Europe
78.6% ~$2.9Bn 13.3% ~$490MM 3.6% ~$140MM 4.5% ~$165MM $3.7Bn 3 Net Sales Rest of World 2 Other Europe North America United Kingdom 40 Global Brands Diversified Global Presence International Expansion Case Study: Europe We currently operate in 26 markets 1 2014 Transformed from a distributor model to
Slide 41: Manufacturing and Supply Chain
41 Manufacturing and Supply Chain
Slide 42: Agile, Scalable Supply Chain
42 Agile, Scalable Supply Chain Our manufacturing, supply chain and logistics reflect our intensive focus on quality and performance • Direct and strong relationships with our suppliers Third party suppliers manufacture and assemble 100% of our products ~50% of our volume is produced by supplier
Slide 43: Agile, Scalable Supply Chain
43 Agile, Scalable Supply Chain • We manage the design of our products • We oversee quality assurance and manufacturing standards applied across our entire supply chain • Our strong freight and logistics partnerships continue to deliver competitive inbound freight rates Our manufacturing, supply cha
Slide 44: Global Commitment to Quality
44 Global Commitment to Quality SharkNinja Quality Control Spans the Entire Production Process Design Development Product Post - Production Quality Assurance Program • Our on - the - ground employees work closely with owner - operated factories to ensure that our strenuous quality standards are adhe
Slide 45: Our Approach to Supply Chain Management Optimization
45 Our Approach to Supply Chain Management Optimization Dedicated team comparing demand forecasts to inventory on hand and production and inbound forecasts …supported by proprietary data analysis to minimize obsolete inventory We relentlessly track our inventory with retailers to assess how each pro
Slide 46: We Are Dedicated to Customer Service
46 We Are Dedicated to Customer Service Our pursuit of excellence in overall quality not only leads to more highly satisfied consumers, but also produces an army of global brand ambassadors We don’t just deliver high quality products, but also high - quality service. We strive to deliver a 5 - star
Slide 47: Financial Overview
47 Financial Overview
Slide 48: Our Compelling Financial Profile
48 Our Compelling Financial Profile Robust Organic Growth Industry - leading Margin Profile Efficient Capital Intensity Strong Free Cash Flow Profile Significant Capital Allocation Flexibility Driven By Our Continuous Innovation
Slide 49: Robust Financial Metrics: Adjusted Net Sales
$1,685 $1,950 $1,932 $684 $1,174 $1,079 $377 $548 $590 $7 $55 $117 2020 2021 2022 Adjusted Net Sales 1 49 ($MM) Robust Financial Metrics 1. We define Adjusted Net Sales as net sales as adjusted to exclude certain items that we do not consider indicative of our ongo ing operating performance followin
Slide 50: Robust Financial Metrics (Cont.)
50 ($MM) Robust Financial Metrics (Cont.) Adjusted Gross Profit and Adjusted EBITDA margin represent % of adjusted net sales. 1. We define Adjusted Gross Profit as gross profit as adjusted to exclude ( i ) non - recurring tariff refunds received and recognized in 2020 related to tariffs incurred in
Slide 51: Robust Financial Metrics (Cont.)
Adjusted Net Sales 1 Adjusted Gross Profit 2 Adjusted EBITDA 3 ($MM) Robust Financial Metrics (Cont.) Adjusted Gross Profit and Adjusted EBITDA margin represent % of adjusted net sales. 1. We define Adjusted Net Sales as net sales as adjusted to exclude certain items that we do not consider indicati
Slide 52: Our Partnership with JS Global
Brand License Agreement Supply Chain Services Product Development Agreement Our Partnership with JS Global Following the Separation Sourcing and procurement Supplier management and supply chain strategy R&D Services Non - exclusive rights to JS Global to obtain, produce, and source Exclusive rights
Slide 53: Drivers of Strong Growth
53 Drivers of Strong Growth Top - Line Growth Drivers Continue to rapidly innovate and take share within existing categories Continue to expand across sub - categories and adjacencies; more use occasions and more products per household Build out presence in key international growth markets Margin Dr
Slide 54: Capital Structure Overview
54 Capital Structure Overview ($MM) 1. Consists of outstanding borrowings as of March 31, 2023 under the $500.0 million term loan facility. Amount excludes deferred fi nancing costs of $1.2 million as of March 31, 2023. 2. Consists of a senior secured term loan pursuant to a new loan agreement enter
Slide 55: Our Compelling Financial Profile
55 Our Compelling Financial Profile Robust Organic Growth Industry - leading Margin Profile Efficient Capital Intensity Strong Free Cash Flow Profile Significant Capital Allocation Flexibility Driven By Our Continuous Innovation
Slide 56: Conclusion
Conclusion 56
Slide 57: Home — every home in our global markets
57 Home — every home in our global markets Every day more consumers around the world welcome 5 - star SharkNinja products into their homes. Our mission is to positively impact people’s lives every day in every home in our global markets
Slide 58: We Are Just Getting Started
$250MM $1.5Bn $3.7Bn 2008 2018 2022 1. Adjusted Net Sales of $3.6Bn which represents sales excluding APAC; APAC is defined as Asia Pacific Region and Greater China. 2. Represents fiscal year end March 2008. 58 We Are Just Getting Started 2 1 • Consumer P roblem S olving E ngine • Trusted Global B il
Slide 59: Thank You for Joining Us
Thank You for Joining Us
Slide 60: Appendix
60 Appendix
Slide 61: Historical P&L Summary
61 Historical P&L Summary ($MM) Year Ended December 31, CAGR Three Months Ended March 31, YoY Growth 2020 2021 2022 ’20 – ’22 2022 2023 Q1 ’22 – Q1 ’23 Adjusted Net Sales 1 $2,690 $3,625 $3,620 16.0% $790 $836 5.8 % Cost of Sales $1,500 $2,289 $2,307 $458 $455 % of Net Sales 54.5% 61.4% 62.1% 56.5%
Slide 62: Historical Cash Flow Summary
62 Historical Cash Flow Summary ($MM) Year Ended December 31, 2020 2021 2022 Net Cash Provided by Operating Activities Net Income $327 $331 $232 Non - Cash Charges $123 $103 $101 Changes in operating assets and liabilities $(157) $(205) $(128) Net Cash Provided by Operating Activities $293 $229 $205