Slide 1: Born in 1973 – Investor Presentation January 2018
Born in 1973 Roots was founded by Michael Budman and Don Green. United by a summer camp friendship and inspired by the rugged beauty of Algonquin Park, Investor Presentationthey set out to create an enduring lifestyle brand that captured the January 2018 essence of the Canadian outdoors.
Slide 2: Disclaimer
Disclaimer All figures discussed in this presentation are stated in $CAD millions, unless otherwise noted. Non-IFRS Measures and Industry Metrics This presentation makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are
Slide 3: Our Story
Our Story
Slide 4: Born in 1973
Born in 1973 Roots was founded by Michael Budman and Don Green • Created an enduring lifestyle brand that captured the essence of the Canadian Open Air • Founder-led for 43 years with each founder running a distinct division • Apparel/Accessories • Footwear/Leather
Slide 5: Roots Today Is A Successful Company
Roots Today Is A Successful Company Our Story Brand potential being unlocked through refined growth strategy and operational investments Rich Synonymous Global Iconic Product Relentless Heritage With Canada & in Reach Leadership Customer Focus The Open Air 44 years of 99% national 29% of system-wide
Slide 6: Unlocking The Brand & Its Business Potential
Unlocking The Brand & It’s Business Potential Our Story Modernizing The Brand Transforming The Business 3 clearly defined consumers Senior Management Team established to operate the business Staying true to the brand’s lasting values Further enhancing existing omni-channel capabilities Brand Inspira
Slide 7: Accelerated Growth Is Underway
Accelerated Growth Is Underway
Slide 8: UBR Unlocks Future Potential and Growth Strategies
UBR Unlocks Future Potential and Growth Strategies Simplifies the Business Consumer-Focused Simplified Formalized Defined Go-To-Market Merchandising Pricing Tiers Sourcing Strategy Calendar ~40% SKU reduction by the end of Fiscal 2018(1) Expect operational and cost efficiencies through increased uni
Slide 9: Our Growth Strategies
Growth Strategies Our Growth Strategies Multiple levers will drive growth 1 Leverage operational investments 2 Pursue continued growth in Canada 3 Strategically Expand U.S Footprint 4 Expand in international markets 5 Deepen our offering in leather and footwear
Slide 10: Leverage Operational Investments
1 Leverage Operational Investments Growth Strategies Transformational initiatives across our business Investments already made Accelerated future growth Leadership Functional expertise and operational experience Comparable sales growth Merchandising Developed consumer-focused strategy Store producti
Slide 11: Pursue Continued Growth in Canada
2 Pursue Continued Growth in Canada Growth Strategies Expand omni-channel productivity and whitespace opportunities Amplifying Brand Leveraging E-commerce Store Grow Our Communication UBR Enhancements Optimization Store Network <2% 4% ~40% 44% 26 - 30 8 - 10 Investment(1) Investment(1) SKUs reductio
Slide 12: Strategically Expand U.S. Footprint
3 Strategically Expand U.S. Footprint Growth Strategies High-potential markets under consideration Market development strategy Long history of E-commerce Demographic organic demand sales in all 50 states(1) research Grow Roots seeding and digital activations 10 – 14 new stores by the end of Fiscal 2
Slide 13: Expand in International Markets
4 Expand in International Markets Growth Strategies Develop presence in existing and new markets Increase penetration in existing markets Expand in additional informational markets Taiwan and China Market Assessment Criteria 109 partner-operated stores in Taiwan and 29 in China Large opportunity siz
Slide 14: Deepen Our Offering in Leather and Footwear
5 Deepen Our Offering in Leather and Growth Strategies Footwear Elevate Leather Goods Expand Footwear Part of our DNA Where Roots started Leverage longstanding genuine Cornerstone product leather credentials category potential Modernizing the range of Significant footwear experience our leather good
Slide 15: Financial Outlook
Financial Outlook
Slide 16: Financial Outlook
Financial Outlook Strong performance and leveraging transformational investments to drive accelerated results Historical Financial Performance Outlook ($ in millions) $410 - $450 Strong $282 momentum Sales $217 $256 across channels, geographies and products FY2014A FY2015A FY2016A FY2019E $61 - $68
Slide 17: Financial Outlook Through 2019
Financial Outlook Through 2019 Two thirds of the revenue growth coming from Canada Percentage of revenue per region 66% 5% 29 % Note: See Disclaimer – Forward-Looking Information. (1) Fiscal 2016 to Fiscal 2019.