Slide 1: Investor Presentation First Quarter 2023
INVESTOR PRESENTATION FIRST QUARTER 2023
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, incl
Slide 3: Explore New Flavor Frontiers: Flatrock and Ironwood
4 yl — a EXPLORE ss. FLATROCK "=< NEW FLAVOR FRONTIERS The Best Traege Grills of2023, Tested hy Gear Eaitors Grill it, BBQ it, THEALLNEW e ee IRONWOOD.
Slide 4: Our Mission is to Create a More Flavorful World
CEO COMMENTARY “While our sales continued to be pressured by retailer destocking and lower consumer demand in the first quarter, I am pleased with our execution as well as our ability to exceed the high-end of our Adjusted EBITDA guidance range for the quarter," said Jeremy Andrus, CEO of Traeger. "
Slide 5: 1st Quarter at a Glance
1st QUARTER AT A GLANCE $153MM 36.2% Revenue Mix Revenue Gross Margin 19% 22% 59% $22MM 14.3% Adj. EBITDA (1) Adj. EBITDA Margin (1) Grills Accessories Consumables 5
Slide 6: Reshaping the P&L and Rightsizing Working Capital
RESHAPING THE P&L AND RIGHTSIZING WORKING CAPITAL Reduce Cost Structure Rightsize Inventories Drive Gross Margin • Proactively driving cost savings to • Material improvement in channel • Gross Margin Task Force identifying enhance profitability and cash flow inventory levels in 1Q 2023 driven by COG
Slide 7: Balance Sheet Flexibility and Liquidity
BALANCE SHEET FLEXIBILITY AND LIQUIDITY Significant Actions to Increase Financial Flexibility Available Liquidity ($MM) Increased Balance Sheet Flexibility $98 $95 A/R Facility • Given the macroeconomic backdrop, in August 2022 we entered into an $3 agreement to amend financial covenants under our F
Slide 8: Growth Pillars: Quarterly Highlights
GROWTH PILLARS: QUARTERLY HIGHLIGHTS 1 Accelerate Brand Awareness • Brand awareness at an all-time high • Strong social engagement in 1Q 2023 with 19% follower growth and 16% growth in user-generated content • Record user-generated content on Super Bowl Sunday • Media reach increased by nearly 2.5x
Slide 9: Financials
FINANCIALS AN TRAEGER
Slide 10: 1st Quarter 2023 Revenue Results
1st QUARTER 2023 REVENUE RESULTS TOTAL REVENUE $MM $224 (31.5%) $153 1Q 2022 1Q 2023 GRILL REVENUE CONSUMABLES REVENUE ACCESSORIES REVENUE $MM $MM $MM $150 (40.3%) (24.2%) (0.7%) $40 $34 $33 $90 $30 1Q 2022 1Q 2023 1Q 2022 1Q 2023 1Q 2022 1Q 2023 10
Slide 11: 1st Quarter Multi-Year Revenue Results
1st QUARTER MULTI-YEAR REVENUE RESULTS TOTAL REVENUE $MM 10.4% CAGR $236 $224 $153 $114 1Q 2020 1Q 2021 1Q 2022 1Q 2023 GRILL REVENUE CONSUMABLES REVENUE ACCESSORIES REVENUE $MM $MM $MM 8.1% 2.6% CAGR CAGR 69.8% CAGR $34 $33 $179 $41 $40 $150 $30 $24 $90 $16 $83 $7 1Q 2020 1Q 2021 1Q 2022 1Q 2023 1Q
Slide 12: 1st Quarter 2023 Profitability Results
1st QUARTER 2023 PROFITABILITY RESULTS GROSS MARGIN $MM 36.9% 36.2% Gross Margin $83 $55 1Q 2022 1Q 2023 ADJUSTED EBITDA (1) $MM 13.6% 14.3% Adjusted EBITDA Margin (1) $30 $22 1Q 2022 1Q 2023 ADJUSTED NET INCOME (6) $MM $19 $5 1Q 2022 1Q 2023 12
Slide 13: Financial Guidance
FINANCIAL GUIDANCE Fiscal 2023 Guidance METRIC LOW HIGH Reflects: • The impact of macroeconomic volatility on consumer spending Total Revenue $560MM $590MM • Ongoing normalization of channel inventory levels of grills, which is expected to pressure sell-in in the first half of 2023 • The assumption
Slide 14: Appendix
APPENDIX 14
Slide 15: Footnotes
FOOTNOTES 1. Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. See the appendix to this presentation for a presentation of, and a reconciliation of these measures to, the directly most comparable GAAP measures, including Net Income (Loss) and Net Income (Loss) Margin, respectively. A
Slide 16: Information Regarding Non-GAAP Financial Measures
INFORMATION REGARDING NON-GAAP FINANCIAL MEASURES In addition to our results and measures of performance determined in accordance with U.S. GAAP, we believe that certain non-GAAP financial measures are useful in evaluating and comparing our financial and operational performance over multiple periods
Slide 17: Reconciliations of Non-GAAP Financial Measures
PRESENTATION OF COMPARABLE GAAP MEASURES AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Three Months Ended March 31, (amounts in thousands, except share and per share amounts) 2023 2022 Net income (loss) $8,018 $(8,960) Adjustments: Other (income) expense (1) (20,307) 674 Stock-based compensatio
Slide 18: Reconciliation of Debt to Net Debt
PRESENTATION OF COMPARABLE GAAP MEASURES AND RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES RECONCILIATION OF DEBT TO NET DEBT March 31, (amounts in thousands) 2023 Line of credit $40,909 Current portion of notes payable 250 Notes payable, net of current portion 438,936 Add: Debt issuance costs 7,32