Slide 1: Investor Presentation January 2014
1 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 1 INVESTOR PRESENTATION January 2014
Slide 2: Forward-looking statements and non-GAAP measures
2 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 2 This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which reflect management's current views and estimates regarding our industry, business strategy, goals a
Slide 3: Today's Agenda and Presenters
3 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 3 Holiday Update Company Overview Investment Highlights Business Performance Growth Strategies Financial Performance Agenda Presenters Today's Agenda and Presenters Tom Vellios Co-Founder & CEO Ken Bull CFO
Slide 4: Store Video
4 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 4 Store Video
Slide 5: Holiday Update
5 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 5 Holiday Update Holiday update based on press release dated January 9, 2014 ► # 1 Weather ► ~90% of comparable stores are in the Northeast, Mid-Atlantic and Midwest which were significantly impacted by December winter storms ► Days at t
Slide 6: The Five Below Promise
6 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 6 The Five Below Promise
Slide 7: Company Overview
7 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 7 Company Overview
Slide 8: Rapidly growing specialty value retailer targeting teens and pre-teens
8 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 8 ► Rapidly growing specialty value retailer targeting teen and pre-teen customers ► Dynamic, edited assortment of trend-right, high- quality merchandise at exceptional value ► All merchandise priced at $5 or below ► Differentiated shopp
Slide 9: Summary Financial Performance
9 ©2014 Five Below, Inc. – Confidential ©2014 Five Below, Inc. 9 102 142 192 244 304 2009 2010 2011 2012 2013E* $125.1 $197.2 $297.1 $418.8 $531 to $533 2009 2010 2011 2012 2013E* $6.9 $17.3 $33.0 $49.5 $60 5.5% 8.8% 11.1% 11.8% 11.2% 2009 2010 2011 2012 2013E* Summary Financial Performance Number o
Slide 10: Investment Highlights
10 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 10 Unique Approach to Targeting the Teen and Pre-Teen Customer Edited Assortment of Trend-Right, High-Quality Merchandise Drives Universal Appeal Exceptional Value Proposition for Customers with $1 to $5 Model Differentiated Sho
Slide 11: Edited Assortment of Trend-Right Merchandise Drives Universal Appeal
11 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 11 Edited Assortment of Trend-Right Merchandise Drives Universal Appeal
Slide 12: Major Brands and Licenses
12 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 12 Major Brands and Licenses
Slide 13: Differentiated Shopping Experience
13 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 13 Differentiated Shopping Experience ► Unique and engaging in-store atmosphere ► Stores are fun and dynamic ► Consistent floor layout with easy to navigate sightlines across entire store ► Novel merchandise display techniques
Slide 14: Brand & Merchandising Approach Drive Universal Appeal
14 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 14 (1) Source: Third Party Research (2013); sample size of 1,444 customers (2) Represents annual income Representative Customer Demographics (1) Brand & Merchandising Approach Drive Universal Appeal 0 % 20 % 40 % 60 % 80 % 100 % By Gend
Slide 15: Stores in 19 States
15 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 15 Recent New Markets Existing Markets (1) 304 Stores in 19 States 4 ► 2011 Chicago Detroit ► 2012 St. Louis Atlanta Outstate Michigan ► 2013 Austin Dallas Notes: (1) Reflects number of stores as of November 2, 2013 6 22 5
Slide 16: Business Performance
16 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 16 Business Performance
Slide 17: Comps in Varied Economic Environments Driven Primarily by Transactions
17 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 17 Comps in Varied Economic Environments Driven Primarily by Transactions 2006 2007 2008 2009 2010 2011 2012 2013E* Annual 5.3% 5.4% 5.8% 12.1% 15.6% 7.9% 7.1% 3.2% to 3.6% -2.8% 7.6% 10.4% 5.1% 5.6% 7.2% 4.2% 5.1% 5.2% 9.1% 4.4% 5.8% 9
Slide 18: New Store Performance
18 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 18 New Store Performance ► Success spans both new & existing markets ► EBITDA margin > 20% ► Low capital investment & strong EBITDA yields a payback of less than one year ► Every store has been profitable on a 4-wall basis since 2009 Ye
Slide 19: Growth Opportunities
19 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 19 Growth Opportunities
Slide 20: Significant Store Growth Opportunity
20 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 20 Significant Store Growth Opportunity Ample White Space Grow Our Store Base Disciplined Real Estate Strategy 67 304 2007 Store Count Current Store Count (2) Potential (1) 2,000+ ► Experienced and proven real estate team with national
Slide 21: Increase Brand Awareness
21 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 21 Increase Brand Awareness ► Growth in social media channels ► Large email database that continues to grow; drives awareness and store traffic ► Newspaper circulars ► Community-centric grand openings ► Fundraisers and charity tie-ins
Slide 22: Increased Scale Will Drive Merchandise Opportunities
22 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 22 Increased Scale Will Drive Merchandise Opportunities ► Continued investment in broad, deep merchandising team ► Leverage base of over 700 vendors ► Newly created product development capability ► Increased purchasing scale and sourcin
Slide 23: Financial Performance
23 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 23 ► Financial Performance
Slide 24: Financial Performance
24 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 24 Number of Stores Comparable Store Sales Net Sales Adjusted Operating Income Financial Performance CAGR 44% 72% 31% Dollars in millions *2013 estimates reflect guidance provided in press release issued January 9, 2014. Notes: * FY 201
Slide 25: Solid Balance Sheet
25 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 25 Dollars in millions. (1) Calculations based on LTM Adjusted EBITDA of $66.5 million as of November 2, 2013. Solid Balance Sheet ► Ample liquidity – no need for additional capital to fund growth ► Modest capital expenditures ► Free ca
Slide 26: Capital Investments
26 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 26 Capital Investments Dollars in millions 2013 estimated Notes: Total by Year $18 $23 $27 Key Implementations 2011 ► Business Intelligence System ► Warehouse Management System 2012 ► Human Resources Information System (phase 1) ► New C
Slide 27: New Store Model
27 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 27 27 Dollars in thousands. (1) Year one economics include results for first full 12 months (2) Excludes distribution, buying and pre-opening costs (3) Includes store build out (net of tenant allowances), inventory (net of payables) and
Slide 28: Summary
28 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 28 Summary Unique Approach to Targeting the Teen and Pre-Teen Customer Edited Assortment of Trend-Right, High-Quality Merchandise Drives Universal Appeal Exceptional Value Proposition for Customers with $1 to $5 Model Differenti
Slide 29: Non-GAAP Financial Measures
29 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 29 Non-GAAP Financial Measures FY 2009A FY 2010A FY 2011A FY 2012A FY 2013E(4) Net Income $11.7 $7.0 $16.1 $20.0 $31 Interest Expense (Income) 0.1 0.0 (0.0) 4.0 2 Other Income 0.0 0.0 0.0 (0.4) 0 Income Tax Expense (Benefit) (4.9) 4.8 1
Slide 30: The Five Below Promise
30 ©2014 Five Below, Inc. – Confidential ©2014 Five B low, Inc. 30 The Five Below Promise