Yeti Holdings, Inc. · NYSE:YETI
Yeti — Investor Presentation (May 2019)
30 slides from Yeti's investor presentation, May 31, 2019
Slide 1: Investor Presentation | June 2019
INVESTOR PRESENTATION | JUNE 2019
Slide 2: Disclaimer
2 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. Forwar
Slide 3: Introduction
INTRODUCTION
Slide 4: Multi-pronged strategy enabling strong, sustainable growth
4 MULTI-PRONGED STRATEGY ENABLING STRONG, SUSTAINABLE GROWTH RENOWNED FOR PREMIUM PRODUCT & INNOVATIVE DESIGN ATTRACTIVE FINANCIAL PROFILE WITH STRONG SALES GROWTH & GROSS MARGINS INFLUENTIAL, GROWING BRAND WITH A PASSIONATE FOLLOWING POWERFUL OMNI- CHANNEL DISTRIBUTION STRATEGY STRONG, EXPERIENCED
Slide 5: Growth strategies: engagement, new products, DTC and corporate sales, international
5 Deepen consumer engagement and broaden existing marketing efforts to drive customer base expansion 1 Use proven NPD capabilities to expand existing product families and create new families 2 Grow sales across YETI.com, corporate sales, YETI retail stores, and Amazon Marketplace to expand connectiv
Slide 6: Net sales mix and key financial metrics
Coolers & Equipment 42% Drinkware 55% Other 3% 1 1. Other includes apparel, bottle openers, ice substitutes, and other accessories. 2. Please refer to page 28 and for a reconciliation of net income to Adjusted EBITDA. $799MM LTM Q1 2019 Net Sales $157MM LTM Q1 2019 Adjusted EBITDA2 2013 – 2018 Net
Slide 7: Brand
BRAND
Slide 8: Large and growing social media presence; brand awareness by region
8 LARGE AND GROWING SOCIAL MEDIA PRESENCE BROAD EARNED MEDIA COVERAGE Source: Instagram. 1. Instagram as of April 30, 2019. 2. Per YETI’s most recent Brand Tracking Study. 285K 336K 407K 546K ~1.2MM 2.1MM 2.9MM 3.9MM 3.9MM 16% 15% 13% 11% 10% 8% 8% 5% 4% 7% 4% 3% 1% 2% 1% 1% 1% 0% East South Central
Slide 9: Customer base expanded as brand awareness has spread nationally
9 2006 • YETI’s Customer Base Has Expanded as Brand Awareness Has Spread Nationally • New and Broadening Products and Creative Marketing Driving Attractive Shift in Demographics 2019 FISHING HUNTING BEACH SNOW CAMPFIRE AT PLAY AT HOME AT WORK 69% 2015 % Hunters1 38% 2018 % Hunters1 64% 2015 % Under
Slide 10: From fly fishing to competitive surfing, they embody the YETI life
10 FROM FLY FISHING TO COMPETITIVE SURFING, THEY EMBODY THE YETI LIFE FISHING | HUNTING | OUTDOOR | FOOD | RANCH & RODEO
Slide 11: YETI Anthem, The Gathering, YETI Dispatch
11 YETI ANTHEM YETI’s first national TV commercial spot with over 200 million impressions THE GATHERING – BANFF, CANADA Twice-yearly print publication with stories & product FAST COMPANY YETI was honored in Marketing and Advertising YETI was selected as the prestigious Pinnacle award winner YETI DIS
Slide 12: YETI Presents, podcasts and Spotify playlists
12 YETI PRESENTS Thoughtful films inspired by our outdoor community, spotlighting the lives they live, the adventures they embark on, and the stories they tell Guest curated playlists on Spotify PODCASTS 4MM VIEWS1 SOCIAL MEDIA SPOTIFY PLAYLISTS Led by fly fishing guide JT Van Zandt 1. Represents vi
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Slide 14: Innovative product development process
14 • Innovative and differentiated products that fill market gaps and consumer needs • Aggressive first-to-market product development strategy • Best in class talent: 57 engineers and product designers • Robust design process focused on performance and functionality • Balance of new product and evol
Slide 15: Innovation creates reason to buy and increases addressable markets
15 INNOVATION CREATES REASON TO BUY AND INCREASES ADDRESSABLE MARKETS CUSTOMIZATION, COLORWAYS, AND LIMITED EDITION OFFERINGS ENCOURAGE NEW AND REPEAT PURCHASES Pre- 2015 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 1H 2018 2H 2018 1H 2019 Coolers & Equipment Hard Cooler Soft Cooler Bags Cargo Ou
Slide 16: Channel
CHANNEL
Slide 17: Strategic channel mix creates stable, high margin profile
17 HIGHLIGHTS • Dynamic omni-channel business • Diverse group of U.S. retail partners with nationwide coverage; only one account exceeds 10% of gross sales • Fast growing DTC business • Successful entry into Australia, Canada, & Japan NET SALES BY CHANNEL NATIONAL AND REGIONAL ACCOUNTS DTC / CORPORA
Slide 18: In-house wholesale sales teams
18 • YETI’s in-house sales teams are extensive, well- trained, and directly managed • Separate sales management infrastructures for National Accounts, Regional Key Accounts, and Independent Dealers • Field sales: Inventory management, assortment planning, and retail merchandising • Account Marketing
Slide 19: YETI.com, corporate sales, retail and authorized sites
19 YETI.COM CORPORATE SALES RETAIL YETI AUTHORIZED CURRENT FUTURE SITE FUTURE SITE FUTURE SITE
Slide 20: International expansion strategy and growing global sales
20 • Capitalize on global digital, eCommerce, and mobile trends • Enter new international markets via DTC and build out select wholesale partners • Push global brand to relevant locales via Ambassador, influencer, and event marketing EXPANSION STRATEGY GROWING GLOBAL SALES Entered in 1H 2017 Countri
Slide 21: Supply Chain
_ SUPPLY CHAIN
Slide 22: Global infrastructure and footprint
22 •Leading third-party manufacturing and logistics partners • Optimizing quality, delivery, best cost and concentration risk • Developed key manufacturing partners in 2017 and 2018 • Soft coolers and bag supply chain shifting from China • Completed thorough “should cost” analysis and negotiations •
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Slide 24: Net sales, gross profit, Adjusted EBITDA and capital expenditures
24 Note: $ in millions. 1. Please refer to page 28 for a reconciliation of net (loss) income to Adjusted EBITDA. NET SALES GROSS PROFIT CAPITAL EXPENDITURES $639 $779 $799 2017 2018 LTM Q1 2019 $295 $383 $403 46% 49% 50% 2017 2018 LTM Q1 2019 Gross Profit % Margin $97 $149 $157 15% 19% 20% 2017 2018
Slide 25: Q1 net sales growth by category and channel
25 Note: $ in millions. NET SALES CATEGORY NET SALES GROWTH CHANNEL NET SALES GROWTH $135 $155 Q1 2018 Q1 2019 $54 $60 Q1 2018 Q1 2019 $76 $91 Q1 2018 Q1 2019 Coolers & Equipment Drinkware $87 $94 Q1 2018 Q1 2019 $48 $62 Q1 2018 Q1 2019 Wholesale DTC
Slide 26: Q1 gross profit, operating income, Adjusted EBITDA and net income
26 Note: $ in millions. 1. Please refer to page 29 for a reconciliation of net (loss) income to Adjusted EBITDA. 2. Please refer to page 29 for a reconciliation of net (loss) income to Adjusted net income. GROSS PROFIT OPERATING INCOME ADJUSTED NET INCOME PER DILUTED SHARE2 ADJUSTED EBITDA1 $0.00 $0
Slide 27: Appendix
ome ILD, 2 BUILT FOR 7
Slide 28: Adjusted EBITDA reconciliation
28 Depreciation and amortization expenses are reported in SG&A expenses and cost of goods sold 1 Represents retail store pre-opening expenses and costs for expansion into new international markets and these costs are reported in SG&A expenses 4 Represents severance, recruiting, and relocation costs
Slide 29: Adjusted net income reconciliation
29 Depreciation and amortization expenses are reported in SG&A expenses and cost of goods sold Represents retail store pre-opening expenses and costs for expansion into new international markets These costs are reported in SG&A expenses Represents severance, recruiting, and relocation costs related
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