Vista Outdoor — Investor Presentation (May 2017)

68 slides from Vista Outdoor's investor presentation, May 11, 2017

Slide 1: Investor Overview
Investor Overview VISTA MAY:2017 OUTDOOR 4
Slide 2: Forward-looking statements
© 2017 | Vista Outdoor Presentation Certain statements in this presentation and other oral and written statements made by Vista Outdoor from time to time are forward-looking statements, including those that discuss, among other things: Vista Outdoor’s plans, objectives, expectations, intentions, str
Slide 3: Non-GAAP financial measures
© 2017 | Vista Outdoor Presentation Non-GAAP financial measures such as earnings before interest, tax, depreciation and amortization (“EBITDA”), Adjusted EBITDA, EBITDA Margin and Free Cash Flow as included in this Presentation are supplemental measures that are not calculated in accordance with Gen
Slide 5: Vista Outdoor Overview
© 2017 | Vista Outdoor Presentation 5  Vista Outdoor is a pure play, individual outdoor recreation company, focused on leveraging best-of-breed brands:  Diversified portfolio of over 50 brands, many of which have #1 or #2 share in their respective categories  Pro forma sales split balanced betwee
Slide 6: Company Heritage
© 2017 | Vista Outdoor Presentation 6 2001 20102008 2013 20151990 2009 Spin-off from ATK Spin-off from Honeywell 2016 Company Heritage Heritage dates back to ATK’s spin-off from Honeywell in 1990
Slide 7: Bringing the World Outside: Vision and Mission
© 2017 | Vista Outdoor Presentation 7 Bringing the World Outside At Vista Outdoor, we are passionate about the outdoors Our Vision Be a leading provider of quality products for the outdoor enthusiast, while delivering superior long-term returns to our shareholders, value for our customers, and rewar
Slide 8: Experienced Management Team
© 2017 | Vista Outdoor Presentation 8 Steve Clark SVP, Human Resources & Corporate Services Years Experience: 20+ Prior Affiliations: Scott Chaplin SVP, General Counsel & Corporate Secretary Years Experience: 20+ Prior Affiliations: Stephen Nolan SVP, CFO Years Experience: 20+ Prior Affiliations: Am
Slide 9: Key Investment Highlights
© 2017 | Vista Outdoor Presentation 9 Key Investment Highlights Vista Outdoor is positioned as outdoor rec’s premier investment opportunity Multiple Growth Avenues to Deploy Capital 7 Strong Customer Relationships 5 Portfolio of Authentic Brands Focused on Outdoor Sports and Recreation 1 Large, Addr
Slide 10: Outdoor recreation category market size
© 2017 | Vista Outdoor Presentation Category Market Size ($B) (1) Vista Outdoor Product Diversification Low Medium High Expansion Opportunity Vista Outdoor Selected Brand Presence Hunting / Shooting Sports(2) $20 Camping 15 Trail Sports(3) 14 Cycling / Wheel Sports(4) 10 Wildlife Viewing 8 Fishing 8
Slide 11: Shooting Sports Industry Trends
© 2017 | Vista Outdoor Presentation $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 1 9 9 2 1 9 9 3 1 9 9 4 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 11 Shooting Sports Indus
Slide 12: Outdoor Recreation Industry Trends
© 2017 | Vista Outdoor Presentation $66.3 $71.6 $74.2 $77.3 $79.2 $81.4 $84.3 $86.0 $87.7 - $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 $100.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 12 Outdoor Recreation Industry Trends Large, expanding installed base of participants drives stable gr
Slide 13: Commitment to Innovation
© 2017 | Vista Outdoor Presentation Bushnell Trophy Cam HD 13 Commitment to Innovation Vista Outdoor’s culture of innovation drives organic growth CamelBak’s hydration pack testing device and 3D printer in Petaluma, CA …results in superior, innovative products… …that receive award recognition and cr
Slide 14: Established Global Platform
© 2017 | Vista Outdoor Presentation Lyon, France 14 Established Global Platform Positioned across the globe to best serve customers and work with vendors Farmington, Utah, USA Company HQ Vaughan, Ontario Lakefield, Ontario Chessington, UK Mexico City, Mexico Suresnes, France Barcelona, Spain Torino,
Slide 15: Broad Presence Across the United States
© 2017 | Vista Outdoor Presentation 15 Broad Presence Across the United States World class supply chain and distribution = Expansion from acquisitions State-of-the-Art Manufacturing and Distribution Facilities Across the United States(1) Notes: 1. Map includes facilities with significant operations
Slide 16: Strong Customer Relationships
© 2017 | Vista Outdoor Presentation 16 Strong Customer Relationships Highly valued partner for diverse set of retailers across multiple channels Highly Diversified Customer Base… Customer-Centric Approach to Retailers Long-Tenured Retail and Distribution Relationships Award-Winning Portfolio of Prod
Slide 17: Proven M&A Capabilities
© 2017 | Vista Outdoor Presentation 17 Proven M&A Capabilities Track record of executing accretive acquisitions of market leading brands Dedicated M&A Team Focused on Cultivating Deals  Robust Pipeline that Includes Proprietary Deal Flow Experience Executing a Diverse Range of Transactions Integrat
Slide 18: Clearly Defined Growth Strategy
© 2017 | Vista Outdoor Presentation 18 Disciplined Investments in Capacity Expansion Advanced Product Development Capabilities Clearly Defined Growth Strategy Balanced strategy positions Vista Outdoor to grow faster than the market Acquisitions of Market-leading Brands(2)(3) $32M $30M $24M $51M FY14
Slide 20: Diverse Channel & Customer Mix
© 2017 | Vista Outdoor Presentation Channel Selected Customers Retail Wholesale / Specialty for Hunt / Shoot Specialty for Outdoor Recreation Law Enforcement / Government International 20 Diverse Channel & Customer Mix Broad reach of consumers across an array of customers and channels International,
Slide 21: Sales Objectives
© 2017 | Vista Outdoor Presentation Develop strategic customer teams with subject matter expertise at the buyer level 3 Create efficiencies and synergies through operating company model 5 21 Leverage the portfolio of brands across customers and channels 1 Align by channel and route to market 2 Maint
Slide 22: Segmentation Strategy
© 2017 | Vista Outdoor Presentation 22 Segmentation Strategy Vista Outdoor’s platform leveraged by aligning channels and route to market Supported by a trade marketing & business development organization that increases communication and collaboration between Sales and Product/Marketing to ensure pla
Slide 23: Good, Better, Best Approach
© 2017 | Vista Outdoor Presentation 23 Good, Better, Best Approach Vista Outdoor positions its brands to satisfy the demands of broad end users  Vista Outdoor implements a good, better, best marketing strategy across brands in a number of key product categories  Offering consumers a breadth of fea
Slide 24: Portfolio Growth
© 2017 | Vista Outdoor Presentation 24 Portfolio Growth Increased distribution and promotion across channel and customers Expansion of Vista’s Portfolio to New Customers and Markets 1 Collaboration Between Brands to Drive Innovation 2 Increased Promotion and Merchandising of Vista Outdoor’s Brands t
Slide 25: Portfolio Expansion
© 2017 | Vista Outdoor Presentation 25 Advertisement created specifically for the German market Photoshoot to create an image portfolio specific to the European market Ammunition catalogue created for France with updated imagery and full translation Drive distribution to new markets globally Drive d
Slide 26: Brand Collaboration
© 2017 | Vista Outdoor Presentation 26 Brand Collaboration Collaborating across brands to drive innovation 2  Cross promoting on and in packaging  Combining accessories promotions with new firearm product launches  Collaborating new product launches with accessory and ammunition related product a
Slide 27: Promotion and Merchandising
© 2017 | Vista Outdoor Presentation 27 Promotion and Merchandising Driving Vista Outdoor’s brands through solution selling 3 Merchandising and Point-of-Purchase Advertising
Slide 28: Customer Relationships: Dick's Sporting Goods
© 2017 | Vista Outdoor Presentation 28 Customer Relationships Leveraging relationships to increase distribution 4 Case Study: Dick’s Sporting Goods Retailer Selected Brand Presence Value-Add Capabilities  Dedicated account team  Category management  Supply chain management  Consumer insights  S
Slide 30: Outdoor Products Segment
© 2017 | Vista Outdoor Presentation 30 - 35 brands with a diverse range of products across the $93B Outdoor Recreation market - Proven ability to add complementary brands to portfolio Outdoor Products Segment A portfolio of well-respected brands designed to bring the world outside Protective Perform
Slide 31: Growth Strategy
© 2017 | Vista Outdoor Presentation Capture Share Growth Geographic Sales Expansion Brand Extension into Adjacent Categories Realize Synergies with Acquired Brands Growth Initiative 31 Keys to Execution 1 2 3 4 Growth Strategy Multiple growth avenues exist across brands, geographies and channels • I
Slide 32: Capture Share Growth: innovative products
© 2017 | Vista Outdoor Presentation 32 Vista Outdoor leverages its internal design capabilities to release innovative products to market Crux New reservoir system with improved ergonomics, water flow and valve Gun Medic Quickly fixes jamming caused by fowling; like 911 for your gun Switchblade First
Slide 33: Capture Share Growth (Cont.)
© 2017 | Vista Outdoor Presentation 33 Capture Share Growth (Cont.) Engaging consumers through social media, brand positioning and events 1 Bushnell: • Shifting marketing mix towards more targeted vehicles with stronger consumer engagement • Improved reach to over 1.1 million per month Primos: • 50+
Slide 34: Enhancing merchandising and packaging
© 2017 | Vista Outdoor Presentation 34 Past Merchandising New PackagingCurrent Previous merchandising had unfavorable product placement and packaging had minimal differentiation from competing products Primos has revamped its product display to draw consumers’ attention and stand out from the compet
Slide 35: Geographic Sales Expansion
© 2017 | Vista Outdoor Presentation Geography Opportunities Europe Australia / Asia 35 Powersports Bike / Snow Bike / Powersports Binoculars Trail Cams Binoculars / Trail Cams Geographic Sales Expansion Growing through geographic sales expansion in Europe, Australia and Asia 2
Slide 36: Brand Extension
© 2017 | Vista Outdoor Presentation 36 Foundation in Polymer Holsters Leather Holsters • Leverage core • Expand to natural product lines • Stretch beyond core to offer full suite of specialized products Holster Iterations Firearm Accessories Lifestyle Products On-gun Accessories Suppressors MSR Opti
Slide 37: Leverage Acquisitions
© 2017 | Vista Outdoor Presentation 37 Leverage Acquisitions Methodically integrating acquisitions to drive success 4 Post-Acquisition Integration Strategy Sourcing Finance, HR, Legal, IT Manufacturing Marketing Research and Development Sales Warehousing and Distribution Customer Service • Leverage
Slide 38: Protective Performance Gear
© 2017 | Vista Outdoor Presentation Cycling Helmets Cycling Footwear Snow Helmets Eye Protection Softgoods Branded Accessories Powersports Helmets - ~$450M in FY17 Net Sales - Leader within $10B Cycling and $8B Snow Sports categories - Iconic brands with multi-channel distribution #1 Top 5 #1 Top 5
Slide 39: Performance Optics
© 2017 | Vista Outdoor Presentation Binoculars / Monoculars Riflescopes Spotting Scopes Telescopes - ~$100M in FY17 Net Sales - Leading optics brands within the $20B Hunting / Shooting Sports and $8B Wildlife Viewing markets #1 #3 #1 Red Dot Sights#2 39Notes: (1) Source: 2016 Southwick Associates =
Slide 40: Capture & Measurement Products
© 2017 | Vista Outdoor Presentation Trail Cameras Laser Rangefinders GPS - ~$150M in FY17 Net Sales - Product development platform rooted in performance optics has allowed brands to enter adjacent categories #1#3 40 = Vista Outdoor market position(1) Capture & Measurement Products Products that enha
Slide 41: Archery & Hunting Accessories
© 2017 | Vista Outdoor Presentation - ~$50M in FY17 Net Sales - Products complement large installed user base of optics and capture/measurement consumers Game Calls Decoys Attractants & Supplements Blinds Archery Accessories Bags & Accessories Arrows #1 #3 #3 41Notes: (1) Source: 2016 Southwick Asso
Slide 42: Tactical & Shooting Accessories
© 2017 | Vista Outdoor Presentation - ~$200M in FY17 Net Sales - Strong reputation for quality and reliability resonates with consumers and increases loyalty Holsters Targets Firearm Care Reloading Equipment Other Accessories Scope Mounts Bags, Packs, & Apparel #1#1 #1 #1#1 42 = Vista Outdoor market
Slide 43: Recreational Performance Products
© 2017 | Vista Outdoor Presentation - ~$250M in Pro Forma FY17 Net Sales - Presence in nearly all categories within the $93B Outdoor Recreation market 43 Hydration Packs Water Bottles Stand-Up Paddleboards Stoves Grills / Smokers Accessories #1 #2 #2 Notes: (1) Source: SportsOneSource (2) Excludes i
Slide 45: Shooting Sports Segment
© 2017 | Vista Outdoor Presentation 45 - 11 brands with a diverse range of products across the $20B Hunting / Shooting Sports market $1,353M $1,409M $1,376M FY 2015A FY 2016A FY 2017A $331M $377M $377M FY 2015A FY 2016A FY 2017A Shooting Sports Net Sales Shooting Sports Gross Profit YoY Growth (4.9%
Slide 46: Innovation, Customer Loyalty and Disciplined Investments
© 2017 | Vista Outdoor Presentation $32M $30M $24M $51M FY14 FY15 FY16 FY17 46 Innovation, Customer Loyalty and Disciplined Investments… Notes: 1. Market share based on 2016 SEC reported sales 2. Source: Southwick Associates annual survey of brands most frequently purchased 3. Capital expenditures r
Slide 47: Shooting Sports Growth Strategy
© 2017 | Vista Outdoor Presentation 47 Capture Growth with Emerging Shooting Sports Consumers 1 Enhance Competitive Position in Marketplace 2 Expand Savage Brand to Broader Hunting and Shooting Markets 3 Keys to Driving Growth: Growth Strategy Capitalize on growing shooting sports market
Slide 48: Engage New Consumers
© 2017 | Vista Outdoor Presentation 48 Engage New Consumers Gaining share by capitalizing on shifting demographics of shooters 1 • New product offerings designed with female consumers in mind • Brand ambassadors that relate well to the next generation of shooters • Support community events that enco
Slide 49: Investments in Future Growth
© 2017 | Vista Outdoor Presentation 1 2 3 4 49 Vista Outdoor’s portfolio of ammunition brands is #1 in both handgun and rifle ammunition Investments in Future Growth Strategically investing to enhance market positioning 2 Major capital investment in Factory of the Future Leadership in product engine
Slide 50: Brand Extension: Savage
© 2017 | Vista Outdoor Presentation Stevens released multiple new shotguns in 2017 50Notes: (1) Source: American Hunter Golden Bullseye Award - 2016 Brand Extension Leverage Savage brand to broaden presence in shooting & hunting markets 3 Bold brand built on a tradition of American ingenuity and per
Slide 51: Premium Ammunition
© 2017 | Vista Outdoor Presentation - ~$350M in FY17 Net Sales - Preeminent brands in the ammunition segment of the Hunting / Shooting Sports category Shotshell Ammunition #1Rifle Ammunition #1 Handgun Ammunition #1 Rimfire Centerfire Rimfire Centerfire 51Notes: (1) Source: 2016 Southwick Associates
Slide 52: Value/Target Ammunition
© 2017 | Vista Outdoor Presentation Shotshell Ammunition - ~$800M in FY17 Net Sales - Value products reinforce “Good, Better, Best” strategy, allowing profits to be captured across the demand curve 52 #1 #1#1 Rifle AmmunitionHandgun Ammunition Rimfire Centerfire Rimfire Centerfire Notes: (1) Source:
Slide 53: Firearms
© 2017 | Vista Outdoor Presentation - ~$200M in FY17 Net Sales - Positive momentum in FBI Adjusted NICS checks continues to drive sales (7% CAGR from 2006 to 2016) 53 = Vista Outdoor market position(1) Notes: (1) Source: 2016 Southwick Associates Firearms No nonsense, performance driven portfolio of
Slide 55: Acquisition Strategy and Key Metrics
© 2017 | Vista Outdoor Presentation 55  Invest only in companies that present attractive opportunities for Vista Outdoor to leverage its sales force, operating expertise and strategic guidance to create value  Ensure all acquisition multiples can be supported by comparable market transaction(s), c
Slide 56: Expand Into Adjacent Markets
© 2017 | Vista Outdoor Presentation Adjacent categories that speak to rugged individualism 1 Outdoor-focused brands 2 Familiar customer 3 Opportunity to improve the brand, increase distribution and apply operational excellence 4 Right price at the right time 5 Adjacent Market Criteria       
Slide 57: M&A Driving Portfolio Transformation
© 2017 | Vista Outdoor Presentation 57 FY2015(1) Notes: 1. Financial results are for the fiscal year ending March 31, 2015, as reported Shooting Sports, 65% Outdoor Products, 35% FY2017 Shooting Sports, 54% Outdoor Products, 46% M&A Driving Portfolio Transformation M&A fueling diversification of por
Slide 58: Financial Overview and Long-term Targets
© 2017 | Vista Outdoor Presentation Financial Overview and Long-term Targets 58
Slide 59: FY2017 Results & FY18 Guidance
© 2017 | Vista Outdoor Presentation Sales $2.547 billion Earnings Per Share ($4.66) Adjusted Earnings Per Share(1) $1.90 59 Sales $2.360 – $2.420 billion Interest Expense(3) ~$50 million Tax Rate ~37% Earnings per Share(4) $1.10 – $1.30 Capital Expenditures ~$70 million Free Cash Flow(5) $175 - $200
Slide 60: Historical Financial Highlights
© 2017 | Vista Outdoor Presentation 60 $M Adjusted EBITDA (Non-GAAP)(2) Adjusted EBITDA Margin: 15.3% 15.4% 12.1% $320 $349 $309 $0 $150 $300 $450 FY2015 FY2016 FY2017 $M $2,083 $2,271 $2,547 $0 $1,000 $2,000 $3,000 FY2015 FY2016 FY2017 FY2018E Net Sales Guidance = $2,360 – $2,420(1) Historical Fina
Slide 61: Historical Cash Flow & Capital Spending
© 2017 | Vista Outdoor Presentation $160 $163 $38 $0 $25 $50 $75 $100 $125 $150 $175 $200 $225 FY2015 FY2016 FY2017 FY2018E Disciplined Capital ExpendituresFree Cash Flow Generation(1) $43 $42 $91 $70 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 FY2015 FY2016 FY2017 FY2018E ($M) ($M) 2.1% 1.8% 3.6%%
Slide 62: Long-term Financial Goals
© 2017 | Vista Outdoor Presentation 62 Long-term Financial Goals Metric 2-3 Year Goal Long-term Goal Organic Revenue Growth 2% – 4% 6% – 8% Adjusted EBITDA Margin 12% – 14% 16% – 18% Capital Expenditures (% of Sales) 2% – 3% 2% – 3% Long-term Financial Goals
Slide 63: Balanced Capital Deployment Strategy
© 2017 | Vista Outdoor Presentation 63 $200M $100M Authorization Announced: 4Q-FY2015 2Q-FY2017 Opportunistic Share Repurchase ProgramPursuit of Strategic Acquisitions = Share repurchases completed through May 11, 2017 Date Closed Purchase Price ~$1.2B Invested in M&A and Share Repurchases since Spi
Slide 64: Key Investment Highlights
© 2017 | Vista Outdoor Presentation Strong Customer Relationships Vista Outdoor is the Vendor of Choice for Customers in the Shooting Sports and Outdoor Recreation Markets 5 64 Portfolio of Authentic Brands Focused on Outdoor Sports and Recreation #1 or #2 Market Share Across a Number of Outdoor Rec
Slide 66: Historical Financial Summary
© 2017 | Vista Outdoor Presentation Years Ended March 31, ($M) FY2015 FY2016 FY2017 Net Sales $2,083 $2,271 $2,547 Gross Profit 529 619 669 % Margin 25.4% 27.3% 26.3% Operating Income 184(2) 263 (207)(3) % Margin 8.8% 11.6% (8.1%) D&A 67 73 94 EBITDA (Non-GAAP) 251 335 (113) % Margin 12.0% 14.8% (4.
Slide 67: Adjusted EBITDA reconciliation
© 2017 | Vista Outdoor Presentation Years Ended March 31, ($000) FY2015 FY2016 FY2017 Net income $79,528 $147,037 ($274,454) Interest expense (income), net 30,108 24,351 43,670 Income tax provision 74,518 91,370 23,760 Depreciation and amortization 66,551 72,614 93,779 EBITDA 250,705 335,372 (113,24
Slide 68: Free cash flow reconciliation
© 2017 | Vista Outdoor Presentation Free cash flow is defined as cash provided by operating activities less capital expenditures and excluding an acquisition claim settlement, and transaction and transition costs net of taxes incurred to date. Vista Outdoor management believes free cash flow provide

Vista Outdoor — Investor Presentation (May 2017) on 6ix

Vista Outdoor — Investor Presentation (May 2017)

Slide 1: Investor Overview

Slide 2: Forward-looking statements

Slide 3: Non-GAAP financial measures

Slide 4: Overview and Investment Highlights

Slide 5: Vista Outdoor Overview

Slide 6: Company Heritage

Slide 7: Bringing the World Outside: Vision and Mission

Slide 8: Experienced Management Team

Slide 9: Key Investment Highlights

Slide 10: Outdoor recreation category market size

Slide 11: Shooting Sports Industry Trends

Slide 12: Outdoor Recreation Industry Trends

Slide 13: Commitment to Innovation

Slide 14: Established Global Platform

Slide 15: Broad Presence Across the United States

Slide 16: Strong Customer Relationships

Slide 17: Proven M&A Capabilities

Slide 18: Clearly Defined Growth Strategy

Slide 19: Sales Growth Strategy

Slide 20: Diverse Channel & Customer Mix

Slide 21: Sales Objectives

Slide 22: Segmentation Strategy

Slide 23: Good, Better, Best Approach

Slide 24: Portfolio Growth

Slide 25: Portfolio Expansion

Slide 26: Brand Collaboration

Slide 27: Promotion and Merchandising

Slide 28: Customer Relationships: Dick's Sporting Goods

Slide 29: Outdoor Products

Slide 30: Outdoor Products Segment

Slide 31: Growth Strategy

Slide 32: Capture Share Growth: innovative products

Slide 33: Capture Share Growth (Cont.)

Slide 34: Enhancing merchandising and packaging

Slide 35: Geographic Sales Expansion

Slide 36: Brand Extension

Slide 37: Leverage Acquisitions

Slide 38: Protective Performance Gear

Slide 39: Performance Optics

Slide 40: Capture & Measurement Products

Slide 41: Archery & Hunting Accessories

Slide 42: Tactical & Shooting Accessories

Slide 43: Recreational Performance Products

Slide 44: Shooting Sports

Slide 45: Shooting Sports Segment

Slide 46: Innovation, Customer Loyalty and Disciplined Investments

Slide 47: Shooting Sports Growth Strategy

Slide 48: Engage New Consumers

Slide 49: Investments in Future Growth

Slide 50: Brand Extension: Savage

Slide 51: Premium Ammunition

Slide 52: Value/Target Ammunition

Slide 53: Firearms

Slide 54: M&A Strategy

Slide 55: Acquisition Strategy and Key Metrics

Slide 56: Expand Into Adjacent Markets

Slide 57: M&A Driving Portfolio Transformation

Slide 58: Financial Overview and Long-term Targets

Slide 59: FY2017 Results & FY18 Guidance

Slide 60: Historical Financial Highlights

Slide 61: Historical Cash Flow & Capital Spending

Slide 62: Long-term Financial Goals

Slide 63: Balanced Capital Deployment Strategy

Slide 64: Key Investment Highlights

Slide 65: Appendix

Slide 66: Historical Financial Summary

Slide 67: Adjusted EBITDA reconciliation

Slide 68: Free cash flow reconciliation