Spar Group, Inc. · NASDAQ:SGRP
Spar — Investor Presentation (February 2022)
18 slides from Spar's investor presentation, Feb 3, 2022
Slide 1: SPAR Unlocking Our Potential Investor Presentation
SPAR UNLOCKING OUR POTENTIAL INVESTOR PRESENTATION Mike Matacunas William Linnane Chief Executive Officer Chief Strategy & Growth Officer February 2022
Slide 2: Disclaimer
SPAR _ disclaimer This Presentation contains “forward-looking statements" within the "safe harbor’ provisions of the Private Securities Litigation Reform Act of 1995, made by. or respecting, SPAR Group, Inc. and its subsidiaries (the “Company’). "Forward-looking statements” are defined in Section 27
Slide 3: Investment Thesis
Investment Thesis e Solid financial foundation with an international “blue chip” client base ® Launching aggressive tech-enabled transformation e Resolved all majority shareholder disputes and cleared the path for growth 4) Introducing new services to improve margins and accelerate top line ® Anew,
Slide 4: New Executive Team Put In Place Over Last Months
New Executive Team Put In Place Over Last 12 Months 2021 New management team has deep retail, services, international, transformation and M&A experience. Global Chief Executive Officer Mike Matacunas < 30+ Years of relevant experience \ Services | Retail | International | Fortune 150 2020 Global Chi
Slide 5: Longstanding Relationships With The World's Best Companies
-Standing Relationships With The World’s Best Companies Revenue from ah Fortune 500 Walmart>< stapes PRG (Ai eves) (sample) f U.S. ewe DOLLAR TREE ores > eee “DOLLAR GENERAL FAMILY DOLLAR. Kraft Be Google Play events pepeatia =§ <P em = FOSSIL Garg @raily Ih RedBull 67% Mexico Q@TARGET. a d © Kimber
Slide 6: Competitive Landscape and SPAR Differentiators
Competitive Landscape and SPAR Differentiators Total Addressable Market (TAM) Global and US Competitors SPAR Differentiators $20 Billion+ global market Outsourced merchandising services, brand marketing services, creative services ~$7 Billion core US market Sales & merchandising agency market* “Sour
Slide 7: Who We Are
Who We Are A Global Merchandising & Brand Marketing Services Company ee \__ seein UNLOCKING OUR POTENTIAL SPAR c20u SPAR NASDAQ: SGRP Market Capitalization: $253m_ Shares Outstanding: 213m. Avg Daily Volume 161k Recent Price $119 52-week high $386 52-week low $1.01 As of January 31, 2022 Cash $153m
Slide 8: Connecting Brands and Customers
Connecting B Engagements Across the Product Lifecycle ustomers Strategically Located PAR Clients Who Trust Us TIM + Hours in Store per Year 25,000+ Merchandisers Worldwide U.S.-based, 9 Countries 28 Locations around the world UNLOCKING OUR POTENTIAL 90%+ Clients >2 Years 7TO%+ Revenue from Global 50
Slide 9: You See Us Every Day...
You See Us Every Day... Sample of SPAR services + Category and product resets + New product launches + Installation of displays and special promotions + Managing inventory and out-of-stocks + Maintaining store product layouts + Setting up kiosks and preparing product + Inventory audits + Assisted se
Slide 10: This Team Has Built On Strong 2020 Performance
This Team Has B On Strong 2020 Performance SPAR Strong Fiscal 2020 Year End Results Thru 3Q 2021 Highlights Covid-19 resilience $230.5m $13.5m Revenue Adjusted EBITDA* Tor Nourevenue grew) 18% International growth +42% YoY +5.8% 95%+ YoY Net Income growth . ‘ . Net Income Grow Adj. EBITDA* Margin aa
Slide 11: Expanding Our Leverage Of Technology To Open Up New Markets & Drive Scale
Expanding Our Leverage Of Technology To Open Up New Markets & Drive Scale Expansion of SPARview (internal Business Analytics system) = SSS Development of unique industry : capabilities and software =a || —— ae => Partnerships with strategic Seay solutions that drive client - Le acquisition We are fo
Slide 12: Introducing New Strategic Services With Higher Margins To Expand Our Portfolio
Introducing New Strategic Services With Higher Margins To Expand Our Portfolio Retail Experience Design Gat + Is my brand design relevant in the Build britinnt ideas 93 marketplace? \ + Does my brand stand out on the shelf? + Isthe imagery telling the right story? + How do | optimize in-store presen
Slide 13: Building Upon Our Fulfillment Expertise
Building Upon Our Fulfillment Expertise DISTRIBUTION SERVICES ka ee ae SPAR Distribution Services 3B
Slide 14: Priorities and Goals
Priorities and Goals Revenues (in Operational Priorities Goals ae ss000 + Drive Revenue Growth - 8-15% So! annual revenue growth on a path to $00 $500m+ +Revenue $500m+ sxo 52292 $2529 smo 154 + Expand Services-add$I50m+ of «Consolidated Adj. a0 ia a: L tee new revenue from new businesses i $0 ae ea
Slide 15: More To Come In 2022....
More To Come In 2022.... Thank You! UNLOCKING OUR POTENTIAL 5S
Slide 16: Appendix
Appendix UNLOCKING OUR POTENTIAL 16
Slide 17: Historic Revenue and Consolidated Adjusted EBITDA
Historic Revenue and Consolidated Adjusted EBITDA SPAR SPAR Group, Inc. (SGRP): Reconciliation from GAAP to Non-GAAP Measures {in thousands) 2020 201920182017 Consolidated Revenue 2305517 161,381 Consolidated Net income 3,962 a7 Depreciation and amortization 2330-290 2,126 Interest expense 6901086 3
Slide 18: Historic Balance Sheet
Historic Balance Sheet SPAR Group, Inc. (SGRP) and Subsidiaries: Consolidated Balance Sheet {in $ thousands) at December 31st 2020 2019 2018 2017 Cash and cash equilavents 1597210458 yal 8827 ‘Accounts receiveable, net 46914 49,299 46,12 35,968 Other current assets 3,631 2,404 1879 2,031 Total Curre