Spar Group, Inc. · NASDAQ:SGRP
Spar — Investor Presentation (May 2022)
19 slides from Spar's investor presentation, May 4, 2022
Slide 1: Investor Presentation: Unlocking Our Potential
INVESTOR PRESENTATION SS : UNLOCKING OUR POTENTIAL Mike Matacunas Chief Executive Officer William Linnane Chief Strategy & Growth Officer © ‘Spring 2022
Slide 2: SPAR Disclaimer
SPAR Disclaimer ‘The Prezentation contains Yorward-looking statements within the “cafe harbor" provisions the Private Securities Litigation Reform Act of1995 made by. oF recpecting, SPAR Croup inc and tzcubsciares|the ‘Company’ ‘Forwarcriooking tatements” are definedin Section 27A ofthe Securities A
Slide 3: Investment Thesis
Investment Thesis e Solid financial foundation, global reach, international “blue chip” client base © Aproven executive leadership team with a history of transforma‘ n success @ Accelerated tech-enabled transformation (+) Introducing new services to improve margins and drive top line growth @ Progre
Slide 4: Who We Are
Who We Are SPAR A Global Merchandising & Brand Marketing é NASDAG: SGRP Services Company FYZINet Revenues $2557m Cash $135m Accounts Receivable $542m —— Debt~ short & iong term $17 / As of December 31,2021 Bolance Sheet is Consolidated Founded:1967 Headquarters: Michigan, US e) ed Operating in 3 cou
Slide 5: What We Do
What We Do SPAR services - ~77% of 2021 Revenues + 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 pr + Inventory audits + Assisted selling Growing
Slide 6: Connecting Brands To Their Customers
Connecting Brands To Their Customers SPAR Engagements Across the Product Lifecycle Strategically Located Clients Who Trust Us T1mM+ Hours in store per Year 25,000+ Merchandisers 90%+ Worldwide Clients >2 Years VERCHANDIS U.S.-based, Ess A 9 i jevenue from g 9 Countries lamaisoo a 28 Locations 300+ C
Slide 7: Working With The World's Best Companies
s With The World’s Best Companies SPAR Revenue from Fortune 500 Catia @ (ample) Revenue Be Google Piay So 9f Brazil avenue BED BATHE <r am = FOSSIL Call NOMES — Ghgy RedBull nase 67% Mexico @TARGET. i © Kimberly Cork aad McKESSON PETSMART ‘JDE 1] eS See Nests “ motorola 73% 3apan muHiaiding FOSTER G
Slide 8: Competitive Landscape and SPAR Differentiators
Competitive Landscape and SPAR Differentiators Total Addressable Global and US Market (TAM) Competitors SPAR Differentiators $20 Billion+ global market Fractured market Global company Outsourced merchandising services, . enabling cross-border ‘brand marketing services, creative Advantage Solutions c
Slide 9: Industry Leading Software: SPARview
Industry Leading Software: SPARview SPAR Expanding strategic tech-enabled Business Analytics partnerships, including Repsly _ (Dedicated Field Teams), Clear Box — Retail (POS Analytics), and Parallel Dots (Image Recognition) to drive capability i Sa =m ms 6 =| > ——e Exciting roadmap for development
Slide 10: Investing in High Margin Strategic Services
Investing in High Margin Strategic Services Retail Experience Design + Ismybrand design relevant in the marketplace? + Does my brand standout on the shelf? + Istheimagerytelling the right story? + How do | optimizein-store presentation? + How can we improve “phygital integration? + Dowe look thesame
Slide 11: Building Upon Our Fulfillment Expertise
Building Upon Our Fulfillment Expertise SPAR DISTRIBUTION SERVICES L> ee _——— = SPAR Distribution Services
Slide 12: Executive Leadership Team
Executive Leadership Team Global Chief Executive Officer Mike Matacunas 30+ Years of relevant experience Services | Retail | International | Fortune 150 Global Chief Financial Officer g Fay DeVriese 30+ Years of relevant experience ‘Services| International | CPA PY slobal chief commercial officer Si
Slide 13: Financial Information
Financial Information UNLOCKING OUR POTENTIAL s
Slide 14: Priorities and Goals
Priorities and Goals Operational Priorities Goals Revenues (in millions) + Drive Revenue Growth - 8-15% oe 000 annual revenue growth on a path to 0 $500m+ +Revenue $500m+ & srin2 $2529 sano $2557 + Expand Services — add $150m+ of 7 . $200 $18.4 Femreicnuesiomncw businesses “Consolidated Adj. =i | a
Slide 15: Historical Balance Sheet
Historical Balance Sheet SPAR Group, Inc. (SGRP) and Subsidiarie: (i $thousands) at December 313t oz. 2020S a2 aA Cash andeash equavents aaa 1s972 amass 7a gaa ‘secounts receivable, net Sti 46914 49.299 A612 3964 Other curtenassts 4362 361 2aot 792031 TotalCurrent sets Tas 66517 62.161 cr ‘Other ass
Slide 16: Historical Revenue and Consolidated Adjusted EBITDA
Historical Revenue and Consolidated Adjusted EBITDA SPAR ‘SPAR Group, Inc. (SGRP): Reconcil Ainthovsands) Consolidated Revenve Net income ‘Depreciation andamartation Income Taxerpense Conslisated E8170 ‘hare based compensation Legaeosts/ etemets -roneeuingt) Boardlted one of costs eg reteemant costs
Slide 17: Historical Revenue & Consolidated Adjusted Net Income
Historical Revenue & Consolidated Adjusted Net Income SPAR SPAR Group, Inc. (SGRP): Reconciliation from GAAP to Non-GAAP Measures ‘Twelve Months Ended December 31, {in thousands) 2020 2019 2018 2017 ‘Net Income (Loss) attributable to SPAR Group Inc, (1,77) 3,367 2419 (1,551) (923) ‘Add-back one-time
Slide 18: Investment Thesis
Investment Thesis e Solid financial foundation, global reach, international “blue chip” client base © Aproven executive leadership team with a history of transforma‘ n success @ Accelerated tech-enabled transformation (+) Introducing new services to improve margins and drive top line growth @ Progre
Slide 19: Investor Questions
INVESTOR QUESTIONS UNEOCKING OUR POTENTIAL