Slide 1: Fourth Quarter 2022 Financial Results Call
Fourth Quarter 2022 Financial Results Call March 9, 2023
Slide 2: Disclaimer
DISCLAIMER Holley Certain statements in this presentation may be considered “forward-looking statements” within the meaning of the “safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Holley’s
Slide 3: Holley Vision & Mission
HOLLEY VISION & MISSION THE ENTHUSIAST PLATFORM Built by Enthusiasts for Enthusiasts Vision To inspire and enable enthusiasts in their automotive adventures by bringing innovation, discovery, and fun to motor life Mission To accelerate the automotive lifestyle Be the most compelling platform for aut
Slide 4: Holley at a Glance
HOLLEY AT A GLANCE INVESTMENT HIGHLIGHTS FY22 REVENUE SNAPSHOT Large base of passionate and highly engaged enthusiast consumers with attractive demographics Massive $38B U.S. market with decades of uninterrupted growth?) Powerhouse of product innovation with iconic brands Proven acquisition platform
Slide 5: Vision & Mission Supported by Focused Strategy
VISION & MISSION SUPPORTED BY FOCUSED STRATEGY STRATEGIC PILLARS Be the authentic, Identiy andseve With the consumer Grow Deliverbestin-class “Tejevant expert in mind, innovate through thoughtful __direct-to-consumer oe oduct for existin. and disciplined experiencethrough 2108 wherever & musturin co
Slide 6: Net Sales Trends by Acquisition Vintage Year
NET SALES TRENDS BY ACQUISITION VINTAGE YEAR Holley Quarterly Net Sales by Acquisition Year ($MM) Despite YOY headwinds, legacy business growth up ~12% CAGR vs. 2019 and total business growth up 23% CAGR' : $2 8 A ia i 2 st 2 2 2 a oe * 512] a. A $2 $3 “ 1Q19 2019 3019 4Q19 1020 2Q20 3Q20 4020 1Q21
Slide 7: Net Sales Trends by Product Category
NET SALES TRENDS BY PRODUCT CATEGORY Holley Quarterly Net Sales by Product Category ($MM) Normalization of Demand and Electronics challenges from supply chain disruptions impacting sales in 2H22 jie | ei it : = : a E EE m4 a het $44 $30 ‘$29 1Q19 2019 3019 4Q19 1020 2Q20 3Q20 4Q20 1021 2021 3Q21 4Q2
Slide 8: Net Sales Growth Build Up
NET SALES GROWTH BUILD UP Holley Acquisition Vintage ($MM) $3 Ea - 12% CAGR $107 (LEGACY) 1 so14 $368 FY19 FY22 Legacy "Acq 2019 mAcq 2020 Acq 2021 = Acq 2022 Product Category Detail ($MM) 23% CAGR (TOTAL) $688 $108 $67 ie | | FY19 FY22 ™Mech =Elec mExhaust "Access = Safety Compared to 2019 pre-COVI
Slide 9: DTC Steady Through All Environments
DTC STEADY THROUGH ALL ENVIRONMENTS Holley Direct-to-Consumer (DTC) % of Sales Despite the challenging 2022 environment, Holley drove continued strong DTC performance and became the largest seller of Holley products during 4Q22 21% 16% 13% FY20 FY21 FY22
Slide 10: Gross Profit Trends
GROSS PROFIT TRENDS Holley Gross Profit ($MM) and Gross Margin (%) Gross margins in 2H22 impacted by sales deleverage, inflationary pressures, and non-cash product rationalization charges 49% 38% 38% Ed on s4s $30 ssa s33 1Q19 2019 3Q19 4Q19 120 2020 3020 4020 1021 2021 3021 4021 1022 2022 3022 4022
Slide 11: SG&A and R&D Trends
SG&A AND R&D TRENDS Holley Quarterly SG&A ($MM), R&D ($MM) and % of Sales SG&A in 4Q22 impacted by an $11.4 million cumulative non-cash adjustment unrelated to business operations 35% $33 a% a 5% a 5% a a 1021 2021 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 mmm SG&A (excl. Equity Comp) R&D mmm Equity Based Comp
Slide 12: Adjusted EBITDA Trends
ADJUSTED EBITDA! TRENDS Holley Adjusted EBITDA ($MM) and Adjusted EBITDA Margin (%) Adjusted EBITDA in 2H22 negatively impacted by sales deleverage and continued inflationary pressures ‘ 29% 20% 27% $200 $208 $185 $160 $161 ary 10% At% $36 $35, : $28] $30 | r $ essilll al li: a = 2Q19 = = 1Q20 2Q20
Slide 13: Inventory Levels Helping Reduce Past Dues
INVENTORY LEVELS HELPING REDUCE PAST DUES Holley Past Due Order Trends by Product Category ($MM) Past due orders began rising with supply chain disruptions in mid/late 2020, with most Product Categories seeing improvements in 2H22, except for Electronics $56 $55 $53 $51 $47 $44 1 sox $36 Inventory l
Slide 14: Net Debt to EBITDA Leverage Ratio
NET DEBT TO EBITDALEVERAGE RATIO! Holley Net Leverage Ratio (Net Debt/TTM Adjusted EBITDA) 4.96 x 4.10x 3.88 x 3.40 x 1Q22 2022 3Q22 4Q22 Net Debt $611.4 $624.9 $637.0 $636.0 Adj. EBITDA (TTM)? AMAT 154.8 135.6 114.7 Covenant Add-backs: 8.4 62 19.6 13.4 Covenant EBITDA $179.8 $161 $155.3 $128.1
Slide 15: Financial Guidance — Full Year 2023
FINANCIAL GUIDANCE — FULL YEAR 2023 Holley Key Drivers of Initial 2023 Guidance = Ongoing normalization of demand back to trend line growth versus pre-COVID levels = Continuing chip availability constraints with Holley EFI = Savings from our cost-reduction initiatives = Amended credit agreement and
Slide 16: Appendix
Appendix
Slide 17: Orders vs Shipments, Past Due Orders
ORDERS VS SHIPMENTS, PAST DUE ORDERS Holley Orders vs Shipments ($MM) $215 $211 $201 oe $188 8108 $161 $169 $149 $152 1921 2021 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 —orders Shipments Past Due Orders ($MM) = $47 $36 sar 1Q21 2021 3021 4Q21 1Q22 2Q22 3Q22 4Q22
Slide 18: Demand Normalization Illustration
DEMAND NORMALIZATION ILLUSTRATION Holley Legacy’ vs. Hist. Industry Order Growth Indexed to 2019 Base Line Normalization of demand implies a YOY order headwind of 4.0-4.5% when compared to historical industry growth rate of ~6.5% 4.0-4.5% YOY 487 Headwind 135 134 }—___ 55 100 Historical Industry Ben
Slide 19: Interest Rate Collar Summary
INTEREST RATE COLLAR SUMMARY Holley Effective Date 2/18/2023 Maturity Date 2/18/2026 Holley Inc. Buys a Cap 5.000% Holley Inc. Sells a Floor 2.811% Index 3 Month Term SOFR Premium Zero Hedge Level $500MM
Slide 20: Covenant Amendment Summary
COVENANT AMENDMENT SUMMARY Holley Fin. Covenant/Fees Original Agreement During Relief Period Net Leverage Liquidity Interest Coverage Fees/Rate Net Debt divided by Covenant EBITDA, Covenant EBITDA includes EBITDA Addbacks Revolver Availabilty + Unrestricted Cash LTM Covenant EBITDA divided by LTM Ca
Slide 21: Reconciliation Tables
RECONCILIATION TABLES Holley HOLLEY INC, and SUBSIDIARIES USE AND RECONCILIATION OF NON.GAAP FINANCIAL MEASURES (in mtons) (Wnavstea) fon 20 10% 4am 1am 2am 0 4am =a 20a vata a asa TOR ‘Net Income (Loss) $@ $@ $m) $2 $5 $1 $13 $ 2 $ @ $2 $0 $c) St $41 $31 $c) § 7 Adjustments: Ineres Expense now 8 2