YETI Holdings, Inc. · NYSE:YETI
YETI — Q2 2021 Earnings Presentation
22 slides from YETI's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward-
Slide 3: Expanding Customer Base, New Products, DTC, International
1 EXPANDING OUR CUSTOMER BASE Ongoing execution of Crossroads® bags go-to-market strategy Kickoff of Austin FC’s inaugural MLS season as official jersey sponsor and sustainability partner 2 INTRODUCE NEW PRODUCTS Strong Q2 2021 YoY growth in Drinkware (+69%) and Coolers & Equipment (+23%) Announced
Slide 4: Key LTM Q2 2021 Financial Metrics
KEY LTM Q2 2021 LTM Q2 2021 Net Sales FINANCIAL METRICS $1.28BNet Sales +35% Net Sales Coolers & +31% +36% Equipment Coolers & Equipment Drinkware 40% $1.28B Drinkware 58% +52% +18%Wholesale DTC Other1 2% $278MM Adjusted Operating Income2 21.8% Adjusted Operating Margin 1 Other includes apparel, bot
Slide 5: Built for the Wild
5 BUILT £OR THE WILD,
Slide 6: Community Reach 2006 vs 2021
2006 Community Reach FISHING HUNTING 2021 Community Reach FISHING HUNTING BEER & BBQ CULINARY SKI/SNOWBOARD SKATEBOARD SURF/PADDLE CLIMB/ALPINE RODEO RANCH WELLNESS MUSIC SPORTS Relevance Through Breadth & Depth 13 Communities 142 Ambassadors 6
Slide 7: Large and Growing Social Media Presence, Earned Media Awards
LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 4.8MM 4.6MM 3.7MM 1.7MM 994K 760K 603K 601K 488K YETI - BRANDING CROSSROADS DUFFEL TUNDRA HAUL BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of July 30, 2021. 7
Slide 8: Domestic Unaided Brand Awareness by Region
DOMESTIC UNAIDED BRAND AWARENESS BY REGION1 2018 2019 2020 2021 26% 24% 22% 20% 20% 19% 19% 18%18% 18% 17% 17% 16% 16% 16% 15% 15% 14% 14% 14% 13% 13% 13% 13% 12% 11% 11% 11% 11% 10% 10% 10% 9% 9% 8% 8% 8% 7% 5% 4% 3 3 East South West North West South South Atlantic 2 East North Mid Atlantic 3 Pacif
Slide 9: Coolers & Equipment and Drinkware Product Evolution
1H 2H 1H 2H 1H 2H 1H 2H 1H 2017 2017 2018 2018 2019 2019 2020 2020 2021 Hard Cooler River YETI Roadie® King Crab Limited Edition Limited Edition Limited Edition Haul™ Silo® Reef Blue Navy Sagebrush Ice Pink Green V Series™ 24 Orange Soft Cooler Daytrip® Hopper® Daytrip® Hopper Flip® 8 Hopper® Two Ho
Slide 10: Channel & Supply Chain
CHANNEL & SUPPLY CHAIN 10 BUILT £OR THE WILD, YETI
Slide 11: Strategic Channel Mix Creates Stable, High Margin Profile
HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 LTM Q2 2021 • Faster growing DTC business Wholesale2 92% Wholesale 46% • Diverse group of U.S. wholesale partners with $469MM $1.28B nationwide coverage; no account exceeds 10% of gross sales1 D
Slide 12: YETI.com, Retail, Corporate Sales, Authorized Dealers
YETI.COM RETAIL CORPORATE SALES YETI AUTHORIZED 12
Slide 13: Growing Global Sales Expansion Strategy
GROWING GLOBAL SALES EXPANSION STRATEGY • Capitalize on global digital, e-commerce, and mobile trends DTC & Wholesale DTC & Wholesale • Enter international markets via DTC and select wholesale • Push global brand via Ambassador, influencer, and event marketing 59% 50% 29% 31% Wholesale DTC & Wholesa
Slide 14: Global Infrastructure and Footprint
GLOBAL INFRASTRUCTURE GLOBAL FOOTPRINT • Leading third-party manufacturing and logistics partners l • Focused on optimizing quality, delivery and best cost l l ll l l l lll l ll l l • Completed “should cost” analysis and supplier negotiations l ll • Soft coolers and bag supply chain transition
Slide 15: 15
15
Slide 16: Net Sales, Category and Channel Net Sales Growth
NET SALES $358 $247 Q2 2020 Q2 2021 CATEGORY NET SALES GROWTH Coolers & Drinkware $193 Equipment $158 $129 $114 Q2 2020 Q2 2021 Q2 2020 Q2 2021 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $197 $161 $133 $114 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Note: $ in millions. 16
Slide 17: Gross Profit, Adjusted SG&A, Operating Income, Adjusted EPS
GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $209 / 58.5% $132 / 36.8% $138 / 55.7% $88 / 35.7% Q2 2020 Q2 2021 Q2 2020 Q2 2021 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $77 / 21.6% $0.68 $49 / 20.0% $0.41 Q2 2020 Q2 2021 Q2
Slide 18: Net Sales, Gross Profit, Adjusted Operating Income, Adjusted EPS 2018-2020
NET SALES GROSS PROFIT Gross Profit % Margin $1,092 $629 $914 $475 $779 $383 58% 52% 49% 2018 2019 2020 2018 2019 2020 ADJUSTED OPERATING INCOME1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted Operating Income1 % Margin $1.87 $224 $143 $1.06 $124 $0.91 21% 16% 16% 2018 2019 2020 2018 2019 2020 Note
Slide 19: Cash, Free Cash Flow, Capex, Total Debt
CASH FREE CASH FLOW1 $253 $351 $155 $80 $73 $55 2018 2019 2020 2018 2019 2020 CAPITAL EXPENDITUTRES TOTAL DEBT2 $333 Capital Expenditures % of Net Sales $300 $32 $21 $16 $135 4% 2% 2% 2018 2019 2020 2018 2019 2020 Note: $ in millions. 1 Operating cash flow less capital expenditures 2 Excludes financ
Slide 20: Appendix
APPENDIX
Slide 21: Non-GAAP Reconciliation 2018-2020
2018 2019(1) 2020 Operating income $ 102.2 $ 89.8 $ 214.2 Non-cash stock-based compensation expense(2)(3) 13.2 52.3 9.0 Long-lived asset impairment(2) 1.2 0.6 1.1 Investments in new retail locations and international market expansion(2)(4) 0.8 — — Transition to Cortec majority ownership(2)(5) 0.8 —
Slide 22: Q2 Non-GAAP Reconciliation
Q2 2020 Q2 2021 Selling, General, and Administrative $ 91.0 $ 136.7 Non-cash stock-based compensation expense(1) (2.2) (4.1) Long-lived asset impairment(1) (0.6) (0.9) Adjusted Selling, General, and Administrative $ 88.2 $ 131.7 Operating income $ 46.5 $ 72.4 Non-cash stock-based compensation expens