Stran & Company, Inc. · NASDAQ:SWAG
Stran & — Investor Presentation (October 2022)
32 slides from Stran &'s investor presentation, Oct 11, 2022
Slide 1: Investor Presentation October 2022
INVESTOR PRESENTATION October 202 2 Background photo shows ponchos produced by for the NYC Marathon, annually since 2013
Slide 2: Forward-Looking Statements and Industry Data
Forward - Looking Statements and Industry Data 2 This presentation contains forward - looking statements that are based on our management’s beliefs and assumptions and on information currently available to us . All statements other than statements of historical facts are forward - looking . These st
Slide 3: Investment Highlights
3 Investment Highlights Established business since 1994 202 1 a nnual revenue exceeding $3 9 million Large acquisition opportunity set within highly fragmented industry Consistent organic growth over the past 27 years Seasoned owner - led management team Compelling financial profile: Market leader w
Slide 4: Management Team
Management Team Laura Woodward Director of HR Sheila Johnshoy Chief Operating Officer Andy Shape President & CEO Randy Birney Executive Vice President David Browner Interim Chief Financial Officer Steve Paradiso Chief of Staff Steve Urry VP of Sales Jack Audibert VP of Strategy & Growth Howie Turken
Slide 5: What We Deliver
What We Deliver Comprehensive Program Managers delivering results 01 Provide relevant, creative, & valued products 02 Cutting Edge technology that drives efficiencies and adds value 03 Worldwide process & procedure driven solutions 04 Manage the day to day programming and servicing of our clients 05
Slide 6: Stran - History of Our Business
Stran - History of Our Business 2021 Established November 1994 1994 1st Promotional Product Sale – Promo PomPoms to the New England Patriots 1995 2007 Established a new Division – StranBeverage 2008 Secured a license to produce NASCAR merchandise 2014 Voted Best Place to Work by ASI 2016 Launched Sh
Slide 7: Positioned to Deliver Sustainable Value Creation
7 Positioned to Deliver Sustainable Value Creation TAM Opportunity $38 5 Billion Including loyalty, print, promo, tradeshow, packaging* Industry Specific Market Opportunity $2 3 Billion ** Promo Industry alone Accelerated Revenue Growth 68 % First half 2022 vs first half 2021 Top Tier Customer Base
Slide 8: Promotional Products Industry Growth
Promotional Products Industry Growth Continuous growth ( 3 . 2 % CAGR from 2009 - 20 21 * ) because of a shift in advertising and brand recognition spend See page 31 in the appendix for more information on the effectiveness of promotional products. Most highly regarded form of advertising by recipie
Slide 9: Industry Fragmentation
Industry Fragmentation With over 23,000 registered distributors, this industry is ripe for consolidation Majority of industry players are small with only a few employees Requisite technology will drive future consolidation as smaller illiquid players struggle to keep pace In 20 21 the largest player
Slide 10: What Makes Stran Different
What Makes Stran Different Name Recognition & Well - Regarded Reputation – people know who we are; both customers and industry professionals. Our visibility is enhanced through routinely speaking at conferences, being published in trade magazines, exhibiting at events, online presence, & referrals W
Slide 11: Leading Technology
11 Leading Technology Managing over 280 online stores for our customers Invested millions of dollars into custom technology development over the past 7 years Proprietary e - Commerce solution built on Magento 2.0 Our technology makes it easier for customers to do business with us Makes customers sti
Slide 12: Driving a Competitive Flywheel Effect
Driving a Competitive Flywheel Effect 12
Slide 13: Competitive Analysis
Competitive Analysis Online e - Retailers Franchise Model Large & Inflexible Not Core Offering Small Mom & Pop Focus on Service x x x Creativity & Innovation x x x x Flexible & Nimble x x x x Customer Specific Technology x x x x x Clear Strategy x x x Program Managers x x x Financial Strength & Scal
Slide 14: Blue-Chip Client Base
Blue-Chip Client Base @punam = Xfinity = &mes verizon’ a. 1 |) a <iliee* = Citi Qtoast ‘* SBE 2 romero Cens es nv len. Gnitea G sooown @® arnoio Santander Zoetis @Ddigitas Lokuma cates: OOPiliPack ey Gy Timberland & yates PHILIPS $> swotqmaneste: §— CarGurus guise TE I =a MAYBELLINE WL, @CcIPHER @or
Slide 15: Growth Strategy
More Existing Client Pentration More New Client Development More Offerings/Solutions Innovative Technology Solutions More Acquisitions Growth Strategy 15
Slide 16: Merger & Acquisition Opportunity
Merger & Acquisition Opportunity Add geographic balance with a focus on acquiring a company in the branded merchandise space based in the Western US in the $5mm - $10mm Revenue range (Texas, California, Colorado, Oregon, Washington State) Add additional smaller promotional companies in the $2mm - $5
Slide 17: Demonstrated M&A Success
Wildman Sales 10 Million Demonstrated M&A Success Transaction closed September 26th, 2020 Structured as an Asset Purchase Agreement New Office located in Warsaw, Indiana with 20 employees 2019 revenue in excess of $10 million Purchased existing inventory of approximately $650,000 - majority with cus
Slide 18: Incremental Revenue Opportunities
Incremental Revenue Opportunities Already in these spaces Capabilities to add these offerings to our tech stack Creates stickiness as one stop shop where Stran adds even more value Have established business relationships already in place Ability to cross sell to current customer base to drive increm
Slide 19: Financial Highlights
Financial Highlights Accelerated Revenue Growth : 68% Half Year Growth 2021 - 2022 Strong gross margins: Consistent 30% avg gross margin Sticky customer base Over 30 Fortune 500 customers Over 280 online stores managed by Stran Successful Acquisition s Completed / Integrated $ 20 mm in acquisition s
Slide 20: Accelerated Growth & Steady Gross Margin
Accelerated Growth & Steady Gross Margin Gross Profit has remained steady with growth Ability to increase Margin even further with additional scale and more rebates More value - added services demand higher margins 2017 - 202 1 , 19 % CAGR REVENUE GROSS PROFIT *Dollars in Millions 20 0 $35,000,000 $
Slide 21: Long-Term, Consistent Revenue Growth
Long - Term, Consistent Revenue Growth 0 $45,000,000 21 $40,000,000 $35,000,000 $ 30,000,000 $25,000,000 $20,000,000 $15,000,000 $ 10,000,000 $5,000,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $3 9 .7 M *D
Slide 22: Investment Highlights
Investment Highlights 22 Established business since 1994 202 1 a nnual revenue exceeding $3 9 million Large acquisition opportunity set within highly fragmented industry Consistent organic growth over the past 27 years Seasoned owner - led management team Compelling financial profile: Market leader
Slide 23: Stran Promotional Solutions
Stran Promotional Solutions 2 Heritage Drive, Suite 600. Quincy, MA 02171 www.stran.com
Slide 24: Case Study - New York Runners
Case Study - New York Runners Transactional Opportunities Launched Rising NYRR Staff & Employee Uniforms Member Plus Mailings NYRR Striders & Team For Kids NYRR Virtual Racing NYRR Open Run 2017 $400,000 Marathon Poncho Order 2018 National Rewards & Incentive Program $1.2mm annually 2018 Launched si
Slide 25: Case Study - Wahlburgers
Case Study - Wahlburgers Transactional Opportunities Executed Contract Launched Retail Site Merchandised for franchises Launched franchise site Launched Uniform Program Provided PPE 2017 $100,000 in product sales 2018 Opportunity to provide multiple products/ services 2018 Launched direct to consume
Slide 26: Case Study - Zoetis
Case Study - Zoetis Executed Contract Executed MZR Initiatives Launched POP Program Launched K - 9 Courage Year 2 Growth Year 3 Growth 2017 Opportunity to provide multiple products/ services 2017 $100,000 in product sales 2018 100,000 cards issued 50,000 reloads $2mm in cards funded $250K in total r
Slide 27: Appendix
Appendix
Slide 28: Industry Value Proposition
Industry Value Proposition Promotional Products and Branded Merchandise is the only form of advertising that has the potential to connect with all five senses. This drives a deeper connection and bond between the brand and its audience. PROMOTIONAL PRODUCTS Ranking from most liked to least liked 1 3
Slide 29: Business Relationships & Associations
Business Relationships & Associations Technology Industry Associations Fulfillment Print & Packaging Loyalty & Payments 29
Slide 30: Global Network of Service Providers
Global Network of Service Providers 30
Slide 31: Organic Growth
Organic Growth Direct Sales Continue to build out sales team to uncover new opportunities and build relationships Convert Transactional Customers to Program Customers A large portion of our revenue is derived from program business, only a small portion of customers are considered programmatic. Marke
Slide 32: Comprehensive Capabilities & Offerings
Comprehensive Capabilities & Offerings Creative Ideation & Product Development Digital Print on Demand, Direct Mail, & Print Management Tradeshow & Event Assets Management Feature Rich Technology Solutions for both B2B and B2C application Global Fulfillment & Distribution Loyalty, Incentive, & Rewar
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