Carparts.com, Inc. · NASDAQ:PRTS
Carparts.com — Investor Presentation (March 2021)
40 slides from Carparts.com's investor presentation, March 2021
Slide 1: 2021 Investor Presentation
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Slide 2: Disclaimer
Disclaimer This presentation contains “forward-looking” statements, within the meaning of the federal securities laws, that are based on our management’s belief’s and assumptions and on information currently available to management. Forward-looking statements include information concerning our possi
Slide 3: Agenda
01 BACKGROUND 02 INDUSTRY LANDSCAPE 03 THE CARPARTS.COM SOLUTION 04 FINANCIALS & GROWTH 3
Slide 4: Background
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Slide 5: Cars are Lasting Longer & Driving Further
THE AUTO PARTS INDUSTRY IS EXPANDING Cars are Lasting Longer & Driving Further total addressable market cars on the road avg. age of cars on road WE ARE ALIGNING TO THESE DEMANDS Source: 2021 AutoCare Association Factbook 5
Slide 6: Mission
MISSION Changing the way people repair their cars, and getting them back on the road 6
Slide 7: Investment Highlights
Investment Highlights Large TAM with very low online penetration Auto parts industry overdue for disruption Proprietary shoppable catalog Improved customer experience with guaranteed fit 2-step distribution model Lower prices than competitors by cutting out the middlemen Curated experience Reducing
Slide 8: Significant Milestones
Significant Milestones New CEO Lev Peker Management team refresh with new vision Acquired JC Whitney Including their parts IPO catalog, warehouse, etc. NASDAQ: PRTS Launched First eCommerce site Founded U.S. Auto Parts1 Umbrella company to more than a dozen brands 2019 2010 1995 2000 2007 1. Name ch
Slide 9: Major Transformation in the Last 24 Months
New executive team with industry Major Transformation veterans and technical experts in the Last 24 Months Formed marketing, data science, technology, and inventory forecasting teams Doubled distribution center footprint to nearly 1 million sq ft Consolidated 17 websites into 1 flagship site and ren
Slide 10: Trusted & Experienced Team
Trusted & Experienced Team Lev Peker David Meniane CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICER & CHIEF FINANCIAL OFFICER Sanjiv Gomes Houman Akhavan Dave Morris CHIEF TECHNOLOGY OFFICER CHIEF MARKETING OFFICER CHIEF MERCHANDISING OFFICER Ryan Lockwood David Kear SENIOR VICE PRESIDENT, FINANCE VI
Slide 11: Stable, Growing & Profitable
Stable, Growing & Profitable revenue liquidity 1 gross profit margin YoY revenue visits in 2020 revenue from growth return customers 2 THE FASTEST GROWING RETAILER IN THE INDUSTRY 3 1. Our Credit Agreement provides for an option to increase the aggregate principal amount from $30,000 to $40,000, sub
Slide 12: Industry Landscape
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Slide 13: One of the Last Industries to be Disrupted by eCommerce
INDUSTRY LANDSCAPE One of the Last Industries to be Disrupted by eCommerce eCommerce penetration ECOMMERCE PENETRATION overall eCommerce online penetration 1 auto parts industry online penetration 2 1. DigitalCommerce360 – 02/19/2021 - Includes pet food, furniture, electronics, online travel 13 2. 2
Slide 14: Do-It-Yourself (DIY) vs Do-It-For-Me (DIFM) Customers
INDUSTRY LANDSCAPE Do-It-Yourself (DIY) Customers Do-It-For-Me (DIFM) Customers • Work on their own car • Professional mechanic installs parts • Strained by the paradox of choice. • Trusts the mechanic to pick the part Will it fit? Is this the best price & quality? • Less brand sensitive • Hope that
Slide 15: A Clear Competitive Advantage
A Clear Competitive Advantage Quality Customer Tailored for Pricing Shipping Distribution Guarantee Service Auto Industry 500 agents, live Integrated Competitive Fast & reliable chat, email, supply chain phone Third party No help choosing Dropship Unpredictable Unpredictable distributors correct par
Slide 16: 2-Step Distribution Advantage
2-Step Distribution Advantage Manufacturer CarParts.com to CarParts.com to customer +40% Cost $100 +50% Price $150 Manufacturer Brand Distributor Retailer to brand to distributor to retailer to customer Other companies1 +40% Cost $100 +50% Cost $150 +25% Cost $188 +50% Price $281 1. For illustrative
Slide 17: Real World Price Advantage
Traditional B&M Real World Price Advantage Less steps Less markups Lower price 17
Slide 18: Accelerated Shifts in Consumer Behavior
Accelerated Shifts in Consumer Behavior Customers are Customers are prioritizing expecting CarParts.com convenience & personalized price transparency digital experiences provides a digital, convenient way An industry shift Shift to DIY & from offline increase in to buy car parts to online personal m
Slide 19: The CarParts.com Solution
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Slide 20: The Best of Everything With No Paradox of Choice
THE CARPARTS.COM SOLUTION The Best of Everything With No Paradox of Choice Guaranteed fit Curated & low price selection Fast Ultra fast website shipping (mobile optimized) Company- 2-step distribution owned brands (factory to car) 20
Slide 21: CarParts.com Core Competencies
THE CARPARTS.COM SOLUTION CarParts.com Core Competencies Marketing Technology Proprietary & Data Science Stack Catalog Integrated Customer Customer Supply Chain Service Team Experience 21
Slide 22: Marketing & Data Science
Marketing & Data Science Customer profiling Predictive intelligence Machine learning Vehicle data Personal, demographic & device data Website Inventory Onsite transactional data Email Paid Ads Real-time user signals Offline SMS Social engagement data 22
Slide 23: Custom-Built Technology Stack
THE CARPARTS.COM SOLUTION Custom-Built Technology Stack • Order management system • Container consolidation • Vending logic optimization Manager GAIA • Inbound logistics • Labor planning • Assortment Inventory Machine • Dynamic pricing • Geographic demand Forecasting Learning LongBow • Freight optim
Slide 24: Proprietary Catalog
THE CARPARTS.COM SOLUTION Side Mirrors Proprietary Headlight Catalog Control arm Bumper cover Wheel hub Replacement Parts Hard Parts Performance & Accessories Headlights Tail lights Brake discs & pads Wheel hubs Tonneau cover Off-road bumper Side mirrors Bumpers Shocks & struts Control arms Fender f
Slide 25: Our House Brands
Our House Brands Est. 2021 Est. 2020 Est. 2020 Est. 2020 Est. 2009 Est. 1915 Brakes Suspension Automotive Pumps, Mirrors Performance & Rotors & Ride Control Electronics Compressors, & & Accessories Mechanical Parts 25
Slide 26: Integrated Supply Chain
Integrated Supply Chain COMPANY-OPERATED DISTRIBUTION NETWORK global employees Peru, Illinois La Salle, Illinois Chesapeake, VA Las Vegas, NV warehouse square footage Torrance, CA (headquarters) Targeted for Grand Prairie, TX planned expansion distribution centers NETWORK OPTIMIZED DATA ANALYTICS BO
Slide 27: First Class Customer Service
THE CARPARTS.COM SOLUTION First Class Customer Service OVER 500 TEAM MEMBERS for agent knowledge & communication1 chat response time email response time increase to customer service employee team sales phone response time service phone response time CRM INVESTMENTS TO CREATE BETTER CUSTOMER ENGAGEME
Slide 28: Delivering Superior Customer Experience
THE CARPARTS.COM SOLUTION Delivering Superior Customer Experience overall rating reviews All I had to do was type in what vehicle I have, and I found the part I was looking for in less than 30 seconds... I was looking for a part for my car and could only find it on CarParts.com. It only took about 2
Slide 29: Simple & Seamless Online Experience
Simple & Seamless Online Experience Solving the customer's problem from any device Intuitive platform with over 800,000+ SKUs available online Value propositions that count Quality, speed, convenience and competitive pricing Real-time personalized experience Removing the paradox of choice by providi
Slide 30: Financials & Growth
, we cials & Growth / 5
Slide 31: The Shift to EV Today
The Shift to EV Today of our current sales are agnostic to the powertrain 31
Slide 32: Electric vs. Gas-Powered Vehicles
Electric vs. Gas-Powered Vehicles NOT AS DIFFERENT AS YOU MIGHT THINK Similarities Differences Body parts Hard Parts Replacement Parts Electric vehicles Gasoline cars 32
Slide 33: Today vs Tomorrow
TODAY TOMORROW Diagnostics Preventive Repair & Maintenance Installation | 33
Slide 34: Stable Balance Sheet
Stable Balance Sheet cash inventory asset-based revolver debt lending availability1 1. Our Credit Agreement provides for an option to increase the aggregate principal amount from 34 $30,000 to $40,000, subject to lender approval
Slide 35: Long Term Financial Targets
FINANCIALS & GROWTH Long Term Financial Targets 2019 2020 Long Term Target Source Product mix, Gross Margin 30.0% 35% 36 - 37% channel mix, closer After Freight to customer Retention marketing, Marketing & 14.8% 15 - 17% 13 - 15% direct to site, brand Customer Service 1 awareness Operating leverage,
Slide 36: IR@CARPARTS.COM CARPARTS.COM/INVESTOR
IR@CARPARTS.COM CARPARTS.COM/INVESTOR
Slide 37: Appendix
Appendix
Slide 38: Consolidated Income Statement
Consolidated Income Statement 38
Slide 39: Consolidated Balance Sheets
Consolidated Balance Sheets 39
Slide 40: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 40