Davidstea Inc. · TSXV:DTEA
Davidstea — Shareholder Meeting (July 2019)
12 slides from Davidstea's shareholder meeting presentation, Jul 10, 2019
Slide 1: Annual Meeting of Shareholders
DAVIDsTEA Annual Meeting of Shareholders July 10, 2019 DAVIDsTEA
Slide 2: Cautionary Forward-Looking Statements
Cautionary Forward-Looking Statements ‘This presentation includes statements that express our opinions, expectations, beliefs, plan, objectives, assumptions or projections regarding future ‘events or future results and there are, o may be deemed to be, “forward-looking statements” within the meaning
Slide 3: DTEA's Distribution Channels
DTEA’s Brick and Mortar E-commerce ~84% “15% total sales(!) total sales!) 188 46 Stores in Canada | stores in the U.S. 63% 37% Total sales in | Total sales in 82% 18% Canada the US. Revenue Revenue Wholesale ~1% total sales!) 4450 [blew stores all banners included Footprint being Continued investmen
Slide 4: Evolution of Distribution Channels
Evolution of Distribution Ch Brick and Mortar “84% total sales() E-commerce a ~15% total sales!) annels Wholesale ~1% total salest) LN3S3Ud i i i Footprint being Continued investments Expand distribution to support growth channels ~25% ~15% total sales(?) total sales!) total sales(?) |For the fiscal
Slide 5: Product Sales Breakdown
Product Sales Breakdown 71% 70% 9% » Loose-Leaf Tea, Gifts Tea Beverage & Packaged Teas Accessories & Food wt T
Slide 6: Our Strategic Priorities
Our Strategic Priorities Maintaining brand leadership to Improve operational efficiencies align and drive sales results with a and stimulate in-store traffic focus on quality and price efficiency Position our e-commerce Expand our wholesale platform to fuel future growth distribution capabilities
Slide 7: Maintaining Our Brand Leadership So That It's Relevant
Maintaining Our Brand Leadership So That It’s Relevant Wherever Available to Align and Drive Sales Results with a Focus on Quality and Price Efficiency Expand the addressable market + Female demographic represents ~80% of total sales * Opportunities to increase appeal among men * Cross-promote tea w
Slide 8: Improve Operational Efficiencies
e Improve ——— Efficiencies ZS a Significantly reducing and refining our overall pall Hide ebb § = product mix Can a + In the process of streamlining our product portfolio to ensure it resonates better with our customers + Expand the portfolio of tea sachets liti + New product mix to focus on support
Slide 9: Position Our E-commerce Platform for Growth
Hot summer. Hot deals, © U.S. e-commerce penetration at more than 29% of total U.S. sales * Overall Q4 2018 e-commerce penetration at 17% * Continue to make significant investments to elevate the overall user experience + E-commerce playing a crucial role in the omnichannel shopping experience + Fre
Slide 10: Expand Our Wholesale Distribution Capabilities
Expand Our Wholesale ra) p Distribution Capabilities Projected to be in more than 2,500 stores across Canada starting in Fall 2019 * Initial launch with Loblaw surpassing expectations * Announced expansion within Loblaw retail network in May to over 1,250 outlets starting fall 2019 + Further expansi
Slide 11: In Conclusion
u In Conclusion Wide brand name recognition Demand for tea remains healthy in North America Inspired and strong leadership team in place Solid financial position
Slide 12: Thank You