Slide 1: Investor Presentation
INVESTOR PRESENTATION NASDAQ: ESCA
Slide 2: Safe Harbor
SAFE HARBOR This presentation may contain forward-looking statements relating to present or future trends or factors that are subject to risks and uncertainties. These risks include, but are not limited to: specific and overall impacts of the COVID-19 global pandemic on Escalade’s financial conditio
Slide 3: Escalade Snapshot
ESCALADE SNAPSHOT • Focus on niche sports, games, outdoors, NET SALES and fitness categories (MILLIONS) • Category leaders with trusted brands $350.00 $313.6 $313.76 • Broad retail presence offline and online $300.00 $273.6 $263.6 • Manufacturing and sourcing flexibility $250.00 • Continuous innovat
Slide 4: Escalade History
ESCALADE HISTORY ‘The williams Manufacturing | Company founded By brother Indian Archery & Toy | Corporation founded | ‘inoia aRcHerY Indian Archery & Toy Company changes its name to indian Archery Corporation Including plastic skis ‘and tkateboards ESCALADE INC. Indian Archery ® Indian Industries m
Slide 5: Escalade History
ESCALADE HISTORY Acquistion of | Carolina Archery Products, |S manufacturer and distributor of the patented | Whisker Biscuit srrow rest 4 Acquisition of {Senden 1S | pura {International A 1 H “Reauistion ¢ ose H : Fasr4o Hl 1 H (S/TRIUMPH “Acquisition i H easton tg ' : “oe " H ' | Q@Re | rnonevg mi
Slide 6: Global Footprint
GLOBAL FOOTPRINT MANUFACTURING WITH MANUFACTURING AND SOURCING FLEXIBILITY DISTRIBUTION SOURCING BRISTOL, WI EAGAN, MN SHANGHAI, CHINA GAINESVILLE, FL OLNEY, IL EVANSVILLE, IN 6
Slide 7: Our Mission
OUR MISSION CONNECTING FAMILY AND FRIENDS, CREATING MEMORABLE MOMENTS, AND PLAYING LIFE TO THE FULLEST. 7
Slide 8: Our Strategy
OUR STRATEGY • INNOVATE and build niche businesses with sustainable competitive advantages that support healthy, active lifestyles • OPERATE with a decentralized organization structure where decisions affecting the customer and the product are led by, and made close to, the consumer • GENERATE super
Slide 9: Our Market Leading Positions
OUR MARKET LEADING POSITIONS MARKET MARKET #1MARKET MARKET MARKET MARKET LEADER IN LEADER IN LEADER IN LEADER IN LEADER IN IN-GROUND BILLIARDS PICKLEBALL LICENSED GAMES ARCHERY WATER SPORTS BASKETBALL
Slide 10: Our Market Leading Positions
OUR MARKET LEADING POSITIONS MARKET MARKET MARKET MARKET LEADER IN LEADER IN MARKET LEADER LEADER IN LEADER IN LICENSED FITNESS IN SAFETY TABLE TENNIS DARTING GAMES ACCESSORIES
Slide 11: Strategic Priorities
STRATEGIC PRIORITIES PRIORITIZE PRODUCT INNOVATION • Grow category share through innovation and consumer insights • Invest in organic growth opportunities and best in class product development 11
Slide 12: We Are Innovators
WE ARE INNOVATORS WHO UTILIZE CONSUMER INSIGHTS TO DEVELOP AND LAUNCH LEADING EDGE PRODUCTS LUCASI LIMITED EDITION CAJUN SHORE HYBRID RUNNER POOL CUES BOWFISHING BOW TROPHY RIDGE STIGA RAVEN TABLE SWFT SIGHT GOALRILLA FIXED HEIGHT PERFORATED ONIX PRO BACKBOARD PICKLEBALL IN-GROUND HOOP NET AMERICAN
Slide 13: Strategic Priorities
STRATEGIC PRIORITIES PRIORITIZE PRODUCT INNOVATION • Grow category share through innovation and consumer insights • Invest in organic growth opportunities and best in class product development ENGAGE CONSUMERS • Build consumer preference and loyalty through compelling products, trusted brands, event
Slide 14: We Drive Consumer Preference
WE DRIVE CONSUMER PREFERENCE AND LOYALTY THROUGH COMPELLING PRODUCTS AND TRUSTED BRANDS 14
Slide 15: We Are a Strong Partner
WE ARE A STRONG PARTNER WHO BUILDS CONSUMER LOYALTY THROUGH MEANINGFUL PARTNERSHIPS, SPONSORSHIPS, AND EVENTS LARRY HUGHES USA TOTAL CAJUN 8 JOHNNY BASKETBALL SPIN CLUB PICKLEBALL & ARCHERY BOWFISHING STEPHENE ACADEMY & PARTNERSHIP NATIONALS CHALLENGE TOURNAMENT HANDLELIFE TORREY CRAIG SPONSORSHIP
Slide 16: We Leverage Social Media
WE LEVERAGE SOCIAL MEDIA TO ENGAGE CONSUMERS AND CREATE BRAND COMMUNITIES 16
Slide 17: We Relaunched Our E-Commerce Websites
WE RELAUNCHED OUR E-COMMERCE WEBSITES AS BRAND AND CATEGORY HUBS ON ONE PLATFORM CUEANDCASE.COM BRUNSWICKBILLIARDS.COM VICTORYTAILGATE.COM LAUNCHED 3-2-2024 LAUNCHED 11-1-2023 LAUNCHED 9-15-2023 17
Slide 18: Strategic Priorities
STRATEGIC PRIORITIES PRIORITIZE PRODUCT INNOVATION • Grow category share through innovation and consumer insights • Invest in organic growth opportunities and best in class product development ENGAGE CONSUMERS • Build consumer preference and loyalty through compelling products, trusted brands, event
Slide 19: We Utilize Our Extensive Distribution
WE UTILIZE OUR EXTENSIVE DISTRIBUTION FOR CROSS-SELLING OPPORTUNITIES NEW OPPORTUNITIES DEVELOPED THROUGH COLLABORATING WITH THE RAVE SPORTS TEAM 19
Slide 20: We Grow & Broaden Our Customer Base
WE GROW & BROADEN OUR CUSTOMER BASE WHILE EXPANDING INTO NEW DISTRIBUTION CHANNELS, CURRENT ONLINE/OFFLINE RETAILERS, DISTRIBUTORS, OEM PARTNERS, AND SPECIALTY DEALERS
Slide 21: We Dominate & Build
WE DOMINATE & BUILD DOMINATE FAMILY GAME ROOM AND BACKYARD CATEGORIES; BUILD MARKET SHARE IN SAFETY, FITNESS, AND OUTDOOR CATEGORIES
Slide 22: Strategic Priorities
STRATEGIC PRIORITIES PRIORITIZE PRODUCT INNOVATION • Grow category share through innovation and consumer insights • Invest in organic growth opportunities and best in class product development ENGAGE CONSUMERS • Build consumer preference and loyalty through compelling products, trusted brands, event
Slide 23: We Are Deleveraging Our Balance Sheet
WE ARE DELEVERAGING OUR BALANCE SHEET TARGETING A LEVERAGE RANGE OF 1.5X-2.5X TTM EBITDA FOCUS ON COST CONTROL, INVENTORY & ASSET MANAGEMENT, AND CASH GENERATION TOTAL DEBT DECREASED 55% FROM YEAR END 2022 JUNE 30, 2024 CURRENT ASSETS: JUNE 30, 2024 CURRENT LIABILITIES: CASH AND CASH EQUIVALENTS $36
Slide 24: We Pursue Non-Dilutive Acquisitions
WE PURSUE NON-DILUTIVE ACQUISITIONS NEAR-TERM FOCUS ON DELEVERAGING OUR BALANCE SHEET LONG-TERM FOCUS TO DEVELOP STRATEGIC AND TUCK-IN OPPORTUNITIES THAT EXTEND OUR FOOTPRINT AND CAPABILITIES 1. Track record of accretive acquisitions • 13 in the past 11 years 2. New capabilities, new customers, and
Slide 25: 2023 Financial Highlights
2023 FINANCIAL HIGHLIGHTS $ 2 6 3 . 6 M I L L I O N I N T O TA L R E V E N U E 23.4% GROSS PROFIT MARGIN 3.6% $0.50 EPS* $1.82 EPS* $1.76 EPS* $1.31 EPS* $0.71 EPS* 6.1% RETURN ON ASSETS 2019 2020 2021 2022 2023 RETURN ON EQUITY *Diluted earnings per share ESCA $20.09 $10.18 $10 CLOSING PRICE CLOSIN
Slide 26: Our Numbers
OUR NUMBERS EXCLUDES NON-REOCCURRING GAINS SALES (MILLIONS) EBITDA (MILLIONS) EARNINGS PER SHARE (MILLIONS) 350 40 $37 $37 2.00 $1.82 $314 $314 $1.76 1.80 300 35 $32 $274 $263.6 1.60 30 250 1.40 $1.31 25 $24 1.20 200 $181 20 1.00 150 $0.71 $14 0.80 15 100 0.60 $0.50 10 0.40 50 5 0.20 0 0 0.00 2019 2
Slide 27: Proven Track Record
PROVEN TRACK RECORD OF ENHANCING SHAREHOLDER VALUE THROUGH DIVIDENDS AND SHARE REPURCHASES QUARTERLY DIVIDEND TREND $0.16 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.15 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.14 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.125 $0.115
Slide 28: Proven Track Record
PROVEN TRACK RECORD OF CREATING SUPERIOR TOTAL SHAREHOLDER RETURN (TSR) LONG-TERM THROUGH BUSINESS CYCLES • Over fifty years as a publicly-listed company trading on the NASDAQ exchange • Escalade’s twenty-five-year TSR outperformed the S&P 500 and our Peer Group Index ESCA 28
Slide 29: Key Takeaways
KEY TAKEAWAYS • Leading sports, games, outdoors, and fitness brands • Focus on healthy, active lifestyle opportunities • Decentralized organization that makes customer and product decisions near the consumer • Financial discipline with continuing deleverage opportunity • Proven track record of long-
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Slide 31: Escalade Inc.
ESCALADE INC.