Lifetime Brands, Inc. · NASDAQ:LCUT
Lifetime Brands — Investor Presentation (November 2006)
32 slides from Lifetime Brands's investor presentation, Nov 14, 2006
Slide 1: Lifetime Brands November 2006
TOW WALLACE a= NAUTICA PB =, | BLOCK RosHeO November 2006
Slide 2: Forward-Looking Statements
TOWLE Forward-Looking Statements This presentation contains certain forward-looking statements, including statements concerning the company’s future prospects. These statements involve risks and uncertainties, including risks relating to general economic conditions and risks relating to the company’
Slide 3: Agenda
Agenda = The Lifetime Advantage = Operating Division Overviews = Strategy for Continued Growth = Financial Performance = Appendix: Financial Statements
Slide 4: Investment Overview
TOWLE Investment Overview High-growth consumer products company with established track record of excellent financial performance = Sales: 56% CAGR 2002-2005 with sustained 20% annual organic growth = EPS: 53% CAGR 2002-2005 Highly-differentiated operating model "Unique combination of powerful brands
Slide 5: Focus on Three Markets
Focus on Three Markets Market Market Size Our Categories Sampling of Our Brands FARBERWARE’ Kitchen Ate Hepearz SRT Culsinart WALLACE s0sernQansouo NAUTICA “TOWLE — ColvinKlein Tabletop & Non-electric Lighting elements [e] Lawn and Garden Décor Nearer MELANNCO [A] "Our goal is to be the #1 or #2 dev
Slide 6: Our Business
Our Business I 2006 Sales Forecast Breakdown DIRECT-TO-CONSUMER, 388 Foon PREPARATION TABLETOP
Slide 7: Agenda
Agenda = Investment Overview = Operating Division Overviews = Strategy for Continued Growth = Financial Performance = Appendix: Financial Statements
Slide 8: The Lifetime Advantage
TOWLE Broad distribution through all retail channels and direct-to-consumer Innovation A commanding brand strategy / product sourcing and design and manufacturing innovation capabilities Full service relationship team servicing our key partners — LIFETIME BRANDS e
Slide 9: Powerful Brands
Powerful Brands FARBERWARE? KitchemAic® — {¢; BESIDTIEN HC RAaTZ TOW. Pfaltzgraff Over 30 brands, many WALLACE e versace! . category, including JELLO three of the top four NAUTICA MELAMNCO [=] Kitchenware brands ROSHCO elements [e] CASAMODA = CalvinKlein PEDRINE RETRONEU SASAKI MS Fuse) Multiple bra
Slide 10: Culture of Innovation
Culture of Innovation In-house design and development department of 90 professionals located in five design centers in the U.S. and China Over 3,000 new products will be developed or redesigned in 2006 Expertise in product design for manufacturability 140+ design and utility patents owned Investment
Slide 11: Sourcing Expertise
Sourcing Expertise * Sourcing products in the Far East for over 46 years Farberumre® Chef knife - $8.96 # Long-term direct relationships with primary vendors « Four company-operated sourcing offices worldwide ° Provide engineering, logistics, ac ° Staffed with over 150 professionals « Nine warehouse
Slide 12: Broad distribution through all retail channels
TOWLE LINENS THINGS BED BATHS fortunoft BEYONE> amazoncom. QVC WILLIAMS-SONOMA Direct-ton Cor > Distribute products through all distribution nn channels and price points 84 Outlet Stores, Catalog & internet > Sell to 75+% of top 100 housewares retailers FARBERWARE’ 2
Slide 13: Full Service Relationship Team
TOWLE Full Service Relationship Team "Team composed of Relationship Managers and Category Specialists, not just individual salespeople «Improves service levels and reduces risk of single point of customer contact : "Emphasis placed on top 40 significant accounts which account for aver 80% of sales "
Slide 14: Agenda
Agenda = Investment Overview = The Lifetime Advantage Operating Division Overviews = Strategy for Continued Growth = Financial Performance = Appendix: Financial Statements 14
Slide 15: Food Preparation
TOWLE Food Preparation = #1 in$9.1B U.S. food preparation market: ° Kitchenware * Cutlery & Cutting Boards ° Bakeware & Cookware ° Pantryware & Spices = 4,000+ Kitchenware products = Cutlery sales in every style, at every price point ($30 - $300) ~ Bakeware products in all major materials (metals, c
Slide 16: Tabletop
$4.5M market in the U.S. Product of a series of four acquisitions in 2004-2006 Growing sales and margins by leveraging product design and sourcing expertise to create products that appeal to modern tastes at competitive price points Calvin Klein Home®, Atlantis®, Sasaki®, Wallace® and Towle® brand n
Slide 17: Home Décor
Home Décor $6.5B market in the U.S. Elements? offers trend-right seasonal and everyday décor products Melannco® a leading supplier of fashionable, upscale frames, photo albums and photo storage Innovative designs offer discernable benefits for the consumer Value priced but high perceived value Exten
Slide 18: Direct-to-Consumer Business
TOWLE Direct-to-Consumer Business Sell household products directly to the consumer through: ° 84 retail outlet stores * Internet (www.pfaltzgraff.com) * Mail-order catalogs Significant growth opportunity * 20% CAGR for Catalog and Internet sales (2003 - 2005) ° 4.5 million “active” names in database
Slide 19: Agenda
Agenda = Investment Overview = The Lifetime Advantage = Operating Division Overviews Strategy for Continued Growt! = Financial Performance = Appendix: Financial Statements 19
Slide 20: Growth Drivers
TOWLE Growth Drivers as Expand (3) product “~ categories ~ Introduce more Z Increase (2) inovative customer products penetration Increase sales ~ Grow of premium direct-to- brands consumer (6) _ selective acquisitions 20
Slide 21: Growth Drivers Detail
~ Increase sales of premium brands F Introduce more (2) innovative products Expand product categories Increase customer penetration =) Grow direct-to- consumer Industry growth of 45% expected to continue to be weighted toward premium brands Retailers with strongest growth favoring premium brands Inc
Slide 22: Growth through Opportunistic Acquisitions
NAUTICA Growth through Opportunistic Acquisitions Abundant opportunities Clear acquisition criteria Proven integration capabilities Fragmented industry + Over 2,200 companies in the housewares market + Mast small privately held with few exit options Many companies either lack known consumer brands o
Slide 23: Acquisitions and Strategic Value
FARERWARE Category Strategic Value RATECH Tabletop! + Added top flatware brands, opened home décor Home Décor category Salton Tabletop + Strengthened tabletop in fine china and crystal categories with prestigious brands Tabletop + Added wholesale and retail presence to tabletop; new product developm
Slide 24: Agenda
Agenda = Investment Overview = The Lifetime Advantage = Operating Division Overviews = Strategy for Continued Growth F jal Performance = Appendix: Financial Statements 24
Slide 25: Sales and EPS Growth
GAGR: 44% GAGR:33% | _ me $18.3 $189 ae $18.3 131 20022003 mod 2005 2002 2003S 20042005 GAGR: 53% $0.78 2002 «003 «| 2004 «2005 sg
Slide 26: Our Growth Targets
Our Growth Targets 2006 guidance: $480 - $430M Sustained 15%+ top line organic + 20% organic GAGR 2002-05 growth = | 2006 operating profit margin: 8.0% 100+bp per annum improvement ; 3 2006 Guidance: $1.45 -$1.55 25%+ EPS growth Acquisitions will be additive to long-term growth goals 28
Slide 27: Drivers of Operating Margin Enhancement
Drivers of Operating Margin Enhancement = Top-line revenue growth ° Increase leverage from fixed cost infrastructure ° Variable costs don’t grow in direct proportion to sales = Impact of post-acquisition cost reductions, e.g. ° Integration of corporate back-office functions ° Elimination of multiple
Slide 28: Highly-differentiated operating model
| = Highly-differentiated operating model Clear strategy for continued organic growth, augmented with selective acquisitions LIFETIME BRANDS 28:
Slide 29: Agenda
Agenda = Investment Overview = The Lifetime Advantage = Operating Division Overviews = Strategy for Continued Growth = Financial Performance Appendix: Fii cial Statements 20
Slide 30: Balance Sheet
TOWLE Figures mn 600's Assets Cash Accounts Receivable Inventories Other Current Assets Property & Equipment Intangibles Other Assets Balance Sheet September 30, 2006 $ 307 76,809 166,215 14,120 36,682 62,396 5.740 $ 362,269 Li ies & Equi Short-term Debt Accounts Payable Other Current Liabilities De
Slide 31: Income Statement
Income Statement Figures in 9096's except per share Year Ended Nine Months Ended December 31, September 30, 2004 2005, 2005 2006 Net Sales $189,458 $307,897 $183,516 $300,126 Operating Income $14849 $25,172 $12,466 $12,653 Net Income (Loss) $8,472 $14,109 $6883 $6,073 Diluted EPS $0.75 $1.23 $0.61 $
Slide 32: November 2006
November 2006
Lifetime Brands — Investor Presentation (November 2006) on 6ix