Roots Corp. · TSX:ROOT
Roots — Shareholder Meeting (July 2022)
14 slides from Roots's shareholder meeting presentation, Jul 21, 2022
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Management P re s e n tat i o n July 21, 2022 PAGE 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain information in this presentation contains forward-looking information. This information is based on management’s reasonable assumptions and beliefs in light of the information currently available to us and are made as of June 14, 2022. Actual results and the timing
Slide 3: Meghan Roach, President & Chief Executive Officer
Meghan Roach President & Chief Executive Officer PAGE 3
Slide 4: Who We Are
Who We Are Roots was founded in 1973 by Michael Budman and Don Green, who met at summer camp in Algonquin Park, where they first fell in love with the ideals and beauty of Canada. Starting from a little cabin, they were inspired by nature and Canada's wilderness to create Roots. With its uncompromis
Slide 5: Our Values
OUR VALUES Community Be Genuine Integrity Freedom We are a place of While we draw inspiration We always strive to do We celebrate the inclusivity, diversity and from the world around us, what’s right and to build individuality of style as a open-mindedness. We we never forget where we trust and last
Slide 6: FY 2021 at a Glance
FY 2021 at a Glance $273.8 59.5% $22.8 $50.1 Million Million Million Sales increased Gross margin improved Net income grew Adjusted EBITDA1 13.9% 140 basis points 74.0% rose 29.4% 1 Adjusted EBITDA is a non-IFRS measure. Please refer to page 23 of the Roots Q4 2021 Management’s Discussion and Analys
Slide 7: FY 2021 Operating Highlights
FY 2021 Operating Highlights • Launched One Collection, gender-free fit, sustainable materials and extended sizing • Enhanced Salt & Pepper sweats, Journey Collection and Studio Fleece • Navigated through global supply-chain challenges, inflation and COVID-19 • Reduced promotional days to 23 (140 in
Slide 8: Expanded Commitment to CSR
Expanded Commitment to CSR • Most apparel will be made with sustainable materials by end of 2022 • Joined Sustainable Apparel Coalition and applied for membership with Fair Labor Association (post year-end) • Donated $1M in cash and in-kind donations through Roots Cares ($3M since Feb. 2020) • Among
Slide 9: Our Growth Pillars
Our Growth Pillars 1 2 3 4 Offering an Reinforcing Our Taking a Proactive Maintaining Elevated Omni- Brand Position Approach to Operational channel Experience Globally Enhancing CSR Excellence PAGE 9
Slide 10: Q1 2022 Results
Q1 2022 Results $43.1M 60.9% ($5.3M) ($3.2M) Sales Gross margin Net loss Adjusted EBITDA1 +15.3% YoY Adjusted EBITDA1 increased $2.2M YoY, excluding government subsidies and rent abatements 1 Adjusted EBITDA is a non-IFRS measure. Please refer to page 17 of the Roots Q1 2022 Management’s Discussion
Slide 11: Solid Financial Position
Solid Financial Position Net Debt Bridge $76.4M $39.4M ($21.2M) ($15.8M) Net Debt Repayment of LT Higher Cash Net Debt As at Debt & bank Balance As at May 1, 2021 April 30, 2022 indebtedness Leverage of 0.8X as at April 30, 2022 PAGE 11
Slide 12: Outlook
Outlook • Market environment improving o Customers back to our stores o No subsidy or abatement benefits this year o First half < 30% of annual sales • Alleviating supply-chain pressure o Proactive stance on transportation and logistics o Impact of ~150-250 bps on DTC gross margin from air freight i
Slide 13: Q&A
Q&A PAGE 13
Slide 14: PAGE 14
PAGE 14