Yeti Holdings, Inc. · NYSE:YETI
Yeti — Q4 2019 Earnings Presentation
24 slides from Yeti's earnings presentation, Feb 13, 2020
Slide 1: Fourth Quarter and Fiscal 2019 Highlights
Fourth Quarter and Fiscal 2019 Highlights
Slide 2: Disclaimer
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. Forward-
Slide 3: Growth priorities: customers, new products, DTC, international
1 EXPANDING OUR CUSTOMER BASE Unaided brand awareness has grown from 2% in 2015 to 12% in 20191 2 INTRODUCE NEW PRODUCTS New product expansions across both Coolers & Equipment and Drinkware Introduced new colorways in Coolers & Equipment and Drinkware 3 ACCELERATE DTC Fastest growing and highest mar
Slide 4: FY 2019 Net Sales and Key Financial Metrics
FY 2019 Net Sales KEY FINANCIAL METRICS $914MM $187MM FY 2019 FY 2019 Net Sales Adjusted EBITDA2 47% 20% Coolers & FY 2019 2013 – 2019 Net Sales CAGR Equipment Adjusted EBITDA2 Margin FY 2019 41% 40% $914MM Drinkware KEY BUSINESS METRICS 56% 58% 12 >95% Other1 New Products Announced YETI Owner Refe
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Slide 6: YETI's Customer Base Has Expanded as Brand Awareness Has Spread
2006 FISHING HUNTING 2020 BEACH SNOW CAMPFIRE AT PLAY AT HOME AT WORK • YETI’s Customer Base Has Expanded as Brand Awareness Has Spread Nationally and Internationally • New Products and Marketing Driving Attractive Shift in Demographics 12 130 64% 9% 33% Communities Ambassadors 2019 % Under 451 2015
Slide 7: Social Media Presence and Unaided Brand Awareness by Region
LARGE AND GROWING DOMESTIC UNAIDED BRAND SOCIAL MEDIA PRESENCE AWARENESS BY REGION2 Followers1 2019 2015 4.5MM 4.4MM 20% 18% 3.1MM 14% 13% 2.9MM 11% 11% 10% 9% 8% 7% 1.4MM 4% 3% 2% 622K 1% 1% 1% 1% 0% 474K 4 4 4 East South West South 3 East North 4 West North South Pacific New 4 Mountain Mid Atlanti
Slide 8: Innovative and differentiated products that fill market gaps and consumer needs
• Innovative and differentiated products that fill market gaps and consumer needs • Aggressive first-to-market product development strategy • Best in class talent: 55 engineers, product designers, and category managers • Robust design process focused on performance and functionality • Balance of new
Slide 9: Product Reviews - Legacy
PRODUCT REVIEWS - LEGACY OUR CUSTOMERS HAVE SPOKEN LAUNCHED "Letme putdownmy /“ICECOLDin115 4 8 / 5 2014 - on . YETI to type this... degrees” BASED ON 30742 REVIEWS FOI RAMBLER 200z y TUMBLER MB; 4 tT Big performance ina "Built to last” 4 . 7 / 5 small package” BASED ON 665 REVIEWS v tok ht HOPPER F
Slide 10: Product Reviews - New
PRODUCT REVIEWS - NEW OUR CUSTOMERS HAVE SPOKEN "Brilliant Design and LAUNCHED _ "YETI makes my 4 . 7 / 5 non Exquisite . a Manufacturing!” eae BASED ON 3685 REVIEWS v RAMBLER 240z teases MUG 4 "A perfect -allf [peas any oF "Best Durable Tote On 4 Gg / 5 2018 the gym,parties & The Market!” : porch”
Slide 11: Coolers & Equipment and Drinkware product launches
1H 2H 1H 2H 1H 2H PRE 2016 2017 2017 2018 2018 2019 2019 Hard Cooler Sherpa™, Roadie®, YETI Tundra®, YETI Tank™ Tundra® 210 Limited Edition Limited Edition Limited Edition Haul™ Silo® Reef Blue River Green V Series™ Soft Cooler Hopper® Field Tan Hopper Flip® 8 Hopper Daytrip® Hopper® M30 Coolers & E
Slide 12: BUNT FER THE WAR SES is YETI
2 BUNT FER THE WAR SES is YETI
Slide 13: Strategic Channel Mix Creates Stable, High Margin Profile
HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 2019 • Fast growing DTC business Wholesale2 Wholesale • Diverse group of U.S. wholesale partners with 92% 58% nationwide coverage; only one account exceeds $469MM $914MM 10% of gross sales1 • Su
Slide 14: YETI.com, Retail, Corporate Sales
YETI.COM RETAIL CORPORATE SALES YETI AUTHORIZED 14
Slide 15: Growing Global Sales Expansion Strategy
GROWING GLOBAL SALES EXPANSION STRATEGY • Capitalize on global digital, e-commerce, and mobile trends DTC & Wholesale DTC & Wholesale • Enter international markets via DTC and select wholesale • Push global brand via Ambassador, influencer, and event marketing 57% 41% Wholesale DTC & Wholesale 26% 2
Slide 16: Global Infrastructure and Global Footprint
GLOBAL INFRASTRUCTURE GLOBAL FOOTPRINT • Leading third-party manufacturing and logistics partners ll l l ll ll • Optimizing quality, delivery and best cost ll l l l l • Developed key manufacturing partners in 2017, 2018 and 2019 • Soft coolers and bag supply chain transitioned out of China
Slide 17: Financials
FINANCIALS “yy Sy - “.
Slide 18: Net Sales, Gross Profit, Adjusted EBITDA, Capital Expenditures
NET SALES GROSS PROFIT Gross Profit % Margin $914 $475 $779 $383 $639 $295 52% 49% 46% 2017 2018 2019 2017 2018 2019 ADJUSTED EBITDA1 CAPITAL EXPENDITURES 1 Adjusted EBITDA % Margin Capital Expenditures % of Net Sales $187 $42 $149 $32 $97 7% $21 3% 4% 19% 20% 15% 2017 2018 2019 2017 2018 2019 Note:
Slide 19: Q4 Net Sales by Category and Channel
NET SALES $298 $241 Q4 2018 Q4 2019 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $192 $143 $91 $102 Q4 2018 Q4 2019 Q4 2018 Q4 2019 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $149 $149 $131 $110 Q4 2018 Q4 2019 Q4 2018 Q4 2019 19 Note: $ in millions.
Slide 20: Q4 Gross Profit, Adjusted Operating Income, EBITDA, Net Income per Share
GROSS PROFIT ADJUSTED OPERATING INCOME1 Gross Profit $ / % Margin Adjusted Operating Income $ / % Margin $162 / 55% $60 / 20% $128 / 53% $46 / 19% Q4 2018 Q4 2019 Q4 2018 Q4 2019 ADJUSTED EBITDA1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted EBITDA1 $ / % Margin $68 / 23% $52 / 22% $0.48 $0.38 Q4
Slide 21: Regu For THEIWLD, YETI
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Slide 22: Adjusted EBITDA Reconciliation
2017 2018 2019 Net Income $15.4 $57.8 $50.4 Interest Expense 32.6 31.3 21.8 Income Tax Expense 16.7 11.9 16.8 1 Depreciation and Amortization Expense 20.8 24.8 29.0 2,3 Non-Cash Stock-Based Compensation Expense 13.4 13.2 52.3 2 Long-lived Asset Impairment — 1.2 0.6 4 Loss on Modification and Extingu
Slide 23: Q4 Adjusted Operating Income and Net Income Reconciliation
Q4 2018 Q4 2019 Operating Income $37.6 $12.0 1 These costs are reported in SG&A expenses. 1,2 Non-Cash Stock-Based Compensation Expense 3.2 41.9 1 Long-lived Asset Impairment 1.2 0.1 2 Includes $40.7 million of one-time non-cash stock-based compensation expense related to pre-IPO restricted stock 1,
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