Slide 1: Q2 2021 Earnings Presentation
1 August 12, 2021 Q2 2021 Earnings Presentation
Slide 2: Safe Harbor
Safe Harbor This presentation regarding Better Choice Company, Inc. (“the Company”, “Better Choice”, “BTTR”, “we”, “us” or “our”) is strictly confidential and is for you to familiarize yourself with the Company. This presentation contains information, statements, beliefs and opinions which are forwa
Slide 3: Company Overview
Company Overview 3 * Includes subscription purchases made by end customers on our partner websites. • Dynamic and forward-thinking pet food company targeting the premium pet food market • Flexible omni-channel go to market strategy with four differentiated sales channels • Exciting three-year produc
Slide 4: A True Omni-Channel Approach
A True Omni-Channel Approach 4 ~$20M Gross Sales ~$12M Gross Sales ~$11M Gross Sales~$9M Gross Sales We Believe Our Differentiated Omni-Channel Strategy Is A Key To Success: 1. Eliminates Channel Conflict 2. Increases Operating Leverage 3. Accelerates Topline Growth A laser focused, channel-specific
Slide 5: A Strong Foundation Built For Success
A Strong Foundation Built For Success 5 Infrastructure A wide scope of systems ensures scalable success • World class ERP system • Shopify (third party ecommerce platform) • IT expertise and work from anywhere support • Integrated SEC reporting Suppliers • All premium food and treats are made in the
Slide 6: Seasoned Management Team & Board
Seasoned Management Team & Board 6 Scott Lerner CEO 20+ YEARS CONSUMER PRODUCTS EXPERIENCE Management Team Board of Directors YEAR JOINED BOD: 2019 Management and key insiders own approximately 25% of Better Choice following Underwritten Offering Donald Young EVP Sales 29 YEARS PET INDUSTRY EXPERIEN
Slide 7: Investment Highlights
Investment Highlights 7 Note: Premium and super premium segments defined as being sold with a retail price greater than $0.20 per ounce. Executive Team Purpose Built for Success in the Pet Industry Online Recurring Revenue Represents Majority of Total Sales Rapidly Growing International Presence Ass
Slide 8: Select Financial Information
Select Financial Information 8 2020 Annual Results 2Q 2021 Net Sales1 ($ in millions) 2Q 2021 Gross Profit & Margin1 ($ in millions) 1. For three months ended June 30 2. For fiscal year ended December 31 1H 2021 Commentary $16.1M Gross Profit $42.6M Net Sales ($1.9)M Adj. EBITDA Domestic & Internati
Slide 9: COVID-19 Has Accelerated Industry Growth
COVID-19 Has Accelerated Industry Growth 9Source: American Pet Product Association, Morgan Stanley. COVID-19 has had a permanent and material impact on pet ownership and household spend, and these tailwinds are expected to continue 11M New Pets Housed During COVID-19 $3B Annual Increased Spend on Pe
Slide 10: Millennials Embrace The Humanization of Pets
Millennials Embrace The Humanization of Pets And Are Looking For More Feedback is pervasive: • 95% say their pet is part of the immediate family • 77% say they feel more like pet parents rather than pet owners • 50% are as concerned about their pets’ well being as their human family members 75% of M
Slide 11: Halo is the brand for a new generation of pet parents
11 Halo is the brand for a new generation of pet parents
Slide 12: Better Choice's Brand Portfolio
Better Choice’s Brand Portfolio 12 Current Halo Brand 2022 Pet Specialty Launch Brand Consolidation Opportunity Pet Parent Target Female Millennials With High Willingness to Pay Core Benefit Holistic, Benefit-Based Solutions (Digestion, Vegan, etc.) Best In-Class Nutrition with Transparent Recipes R
Slide 13: Maximizing Sales Channels To Drive The Halo Brand Towards $100M
Maximizing 3 Sales Channels To Drive The Halo Brand Towards $100M of Gross Sales by 2023 13 DTC Brick & Mortar E-Commerce
Slide 14: Pet Specialty Channel Key to Customer Acquisition
Pet Specialty Channel Key to Customer Acquisition 14 • A significant number of “success stories” in branded pet have built loyalty in the neighborhood pet and pet specialty channels, including Blue Buffalo, WellPet, Nutro and Merrick, prior to significant strategic exits Mars Pet Care Acquires Nutro
Slide 15: Halo Elevate is Launching in Brick & Mortar in 2022
Halo Elevate is Launching in Brick & Mortar in 2022 15 • 3rd Largest Pet Specialty Retailer • 560+ Locations in USA • Contracted 2022 Launch Partner • Specifically built for millennial pet parents • Designed by in-house formulation experts and veterinarians • Product gross margin targets exceed curr
Slide 16: Five Keys To Future Growth
Five Keys To Future Growth 16 HALO BRAND STRATEGY MULTI CHANNEL SALES STRATEGY CAPITALIZE ON OPPORTUNITY IN CHINA STRONG INNOVATION PIPELINE PURSUE STRATEGIC ACQUISITIONS
Slide 17: Halo Brand Strategy
17 Halo Brand Strategy One mega Halo brand that spans across all channels domestically and internationally Allows for a strong “Halo” marketing effect across all sub- brands to maximize spending While talking to the consumer at an efficient higher master brand and emotional level Enabling economies
Slide 18: Strong Innovation Pipeline
Strong Innovation Pipeline 18 Innovation pipeline centered on Halo Elevate, a highly nutritious food that takes the uncertainty and complexity out of what you are feeding your dog and provides recipe transparency you can see and trust. Future Innovation Halo Holistic 2022 Refresh Halo Elevate (Dry &
Slide 19: Multi-Channel Sales Strategy
Multi-Channel Sales Strategy 19 Our multi-channel approach enables the simultaneous launch of innovative new products while reducing channel conflict – we believe this is a key competitive advantage and growth accelerant Incremental M&A Activity % 2020 Net Sales International Contracted Volumes20% D
Slide 20: Capitalize on Opportunity in China
20 Capitalize on Opportunity in China China Represents The Largest Opportunity For International Growth • Chinese pet market estimated to be ~$7 billion by 2022, with premium dry dog and cat food markets growing at 20% and 28% CAGRs1 • China represented 58% of the $6.5M of net sales in 1H 2021, with
Slide 21: Pursue Strategic Acquisitions
Pursue Strategic Acquisitions… In-House M&A Capabilities Stand Out Relative To Other Brand Platforms • Potential brands must meet stringent investment criteria (valuation, channel mix, supply chain, customer profile, etc.) • Ability to source proprietary / non-auction transactions as an operating br
Slide 22: Including A Strong Acquisition Pipeline
…Including A Strong Acquisition Pipeline 22 Target Profile and Attributes Description Premium Kibble, Canned Food and Treats Treats Super Premium Kibble Geography North America North America Europe / Asia Channel Brick & Mortar E-Commerce / DTC E-Commerce / Brick & Mortar Asset Intensity Asset Light
Slide 23: Uplist To NYSE American Complete
Uplist To NYSE American Complete Closing of $40m Underwritten Public Offering on July 1, 2021 • Listing of BTTR on NYSE American • $40m Primary Proceeds raised at $5.00 / share (~3x 2020 Net Sales) • Automatic Conversion of ~$23m of Convertible Debt into Common Shares • 29.6m common shares outstandi
Slide 24: Pro Forma Balance Sheet Post July 1, 2021 IPO
Pro Forma Balance Sheet Post July 1, 2021 IPO 24 The following unaudited pro forma condensed consolidated balance sheet data is presented as if the IPO closed on June 30, 2021, and reflects: 1. The issuance of 8,000,000 shares of common stock for estimated net proceeds of $36.2 million and a pro for
Slide 25: Income Statement
BETTER Income Statement CHSICE COMPANY Six Months Ended June 30, __ Three Months Ended June 30, 2021 2020 2021 2020 Net sales $ 21,819 $ 22,167 $ 10,989 $ 9,941 Cost of goods sold 13,645 13,886 7,089 5,817 Gross profit, 8,174 8,281 3,900 4,124 Operating expenses: General and administrative 8,081 19,
Slide 26: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 26 (a) Reflects non-cash expenses related to equity compensation awards three and six months ended June 30, 2021 and 2020. The six months ended June 30, 2021 additionally includes non-cash expenses related to stock purchase warrants issues for third-party services prov
Slide 27: BETTER
BETTER CH@ICE COMPANY