YETI Holdings, Inc. · NYSE:YETI
YETI — Q3 2021 Earnings Presentation
26 slides from YETI's earnings presentation, Nov 11, 2021
Slide 1: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer We are not making any representations or warranties, express or implied, with respect to the information (financial, business, legal or otherwise) contained in this presentation. No person has been authorized to give any information other than that contained in this presentation. Forward-
Slide 3: Strategic priorities: expand customers, new products, DTC, international
1 EXPAND OUR CUSTOMER BASE Introduced “Take Back Travel” marketing campaign Celebrated YETI’s 15th Anniversary with archived content coupled with limited-edition Tundra 50 Selected by Fast Company in its inaugural list of “Brands That Matter” 2 INTRODUCE NEW PRODUCTS Balanced Q3 2021 YoY growth in D
Slide 4: Key Q3 2021 Financial Metrics
KEY Q3 2021 Q3 2021 Net Sales FINANCIAL METRICS $363MM Net Sales +23% Net Sales Coolers & +20% +24% Equipment Coolers & Equipment Drinkware 41% $363MM Drinkware 57% +31% +15%Wholesale DTC Other1 2% $74.2MM Adjusted Operating Income2 20.5% Adjusted Operating Margin 1 Other includes apparel, bottle op
Slide 5: Built for the Wild
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Slide 6: Community Reach: Relevance Through Breadth & Depth
2006 Community Reach FISHING HUNTING 2021 Community Reach FISHING HUNTING BEER & BBQ CULINARY SKI/SNOWBOARD SKATEBOARD SURF/PADDLE CLIMB/ALPINE RODEO RANCH WELLNESS MUSIC SPORTS Relevance Through Breadth & Depth 13 Communities 144 Ambassadors 6
Slide 7: Large and Growing Social Media Presence; Earned Media Awards
LARGE AND GROWING SOCIAL MEDIA PRESENCE EARNED MEDIA AWARDS Followers1 4.8MM 4.6MM 3.7MM 1.7MM 1.0M 862K 639K 616K 506K YETI - BRANDING CROSSROADS DUFFEL TUNDRA HAUL BROAD EARNED MEDIA COVERAGE 1 Instagram followers as of October 25, 2021. 7
Slide 8: 2nd Largest Magazine in Germany
*2nd Largest Magazine in Germany 8
Slide 9: Domestic Unaided Brand Awareness by Region
DOMESTIC UNAIDED BRAND AWARENESS BY REGION1 2018 2019 2020 2021 26% 24% 22% 20% 20% 19% 19% 18%18% 18% 17% 17% 16% 16% 16% 15% 15% 14% 14% 14% 13% 13% 13% 13% 12% 11% 11% 11% 11% 10% 10% 10% 9% 9% 8% 8% 8% 7% 5% 4% 3 3 East South West North West South South Atlantic 2 East North Mid Atlantic 3 Pacif
Slide 10: Product introductions timeline: Coolers & Equipment and Drinkware
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 2017 2017 2018 2018 2019 2019 2020 2020 2021 2021 Hard Cooler Reef Blue River YETI King Crab YETI XV Limited Edition Haul™ Silo® Roadie® Navy Sagebrush Ice Pink Limited Edition Limited Edition Green Orange V Series™ 24 Tundra 50 Soft Cooler Hopper Flip® 8 Daytrip® Hoppe
Slide 11: Channels & Supply Chain
CHANNELS & SUPPLY CHAIN
Slide 12: Channel Mix Progression and Overview
OVERVIEW • Balanced omni-channel strategy across DTC and wholesale channels • Faster growing DTC business supports higher gross margin profile • Diverse group of U.S. wholesale partners with only one account exceeding 10% of total gross sales1 • International reach into Canada, Australia, New Zealan
Slide 13: National & Regional Accounts, Independent Dealers
NATIONAL & REGIONAL ACCOUNTS INDEPENDENT DEALERS • Diverse dealers across BBQ, boating, building supply, camping, farming, fishing, hardware, hunting & shooting, and outdoor destinations • ~60% dealer reduction from FY15 to FY21 YTD to strengthen our brand, drive merchandising consistency, and sharp
Slide 14: YETI eCommerce, Retail, Corporate Sales
YETI ECOMMERCE RETAIL CORPORATE SALES YETI AUTHORIZED 14
Slide 15: International Expansion Strategy and Footprint
EXPANSION STRATEGY INTERNATIONAL FOOTPRINT • Focused on existing markets to drive deep consumer relevance and develop optimal omni-channel distribution • Building localized leadership and talent, processes, and 2019 Entry brand elements to scale opportunities 2017 Entry 2019 Website: YETI.CA 2019 We
Slide 16: Global Infrastructure
GLOBAL INFRASTRUCTURE • Partnerships with leading third-party manufacturing and logistics partners • Ongoing supplier focus on optimizing quality, delivery and best cost • Future capacity framework informed by diversification and redundancy • 3PL facilities in Dallas, Salt Lake City, Australia, New
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Slide 18: Net Sales, Category and Channel Net Sales Growth
NET SALES $363 $295 Q3 2020 Q3 2021 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $205 $149 $166 $124 Q3 2020 Q3 2021 Q3 2020 Q3 2021 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $197 $166 $144 $150 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Note: $ in millions. 18
Slide 19: Gross Profit, Adjusted SG&A, Operating Income, Adjusted EPS
GROSS PROFIT ADJUSTED SG&A1 Gross Profit $ / % Margin Adjusted SG&A1 $ / % Margin $207 / 57.1% $133 / 36.6% $174 / 59.1% $102 / 34.5% Q3 2020 Q3 2021 Q3 2020 Q3 2021 ADJUSTED OPERATING INCOME1 ADJUSTED EPS1 Adjusted Operating Income1 $ / % Margin $0.64 $72 / 24.6% $74 / 20.5% $0.61 Q3 2020 Q3 2021 Q
Slide 20: Net Sales, Gross Profit, Adjusted Operating Income, Adjusted EPS
NET SALES GROSS PROFIT Gross Profit % Margin $1,092 $629 $914 $475 $779 $383 57.6% 49.2% 52.0% 2018 2019 2020 2018 2019 2020 ADJUSTED OPERATING INCOME1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted Operating Income1 % Margin $1.87 $224 $143 $1.06 $124 $0.91 20.5% 15.9% 15.6% 2018 2019 2020 2018 20
Slide 21: Cash, Free Cash Flow, Capital Expenditures, Total Debt
CASH FREE CASH FLOW1 $253 $351 $155 $80 $73 $55 2018 2019 2020 2018 2019 2020 CAPITAL EXPENDITUTRES TOTAL DEBT2 $333 Capital Expenditures % of Net Sales $300 $32 $21 $16 $135 4% 2% 2% 2018 2019 2020 2018 2019 2020 Note: $ in millions. 1 Operating cash flow less capital expenditures 2 Excludes financ
Slide 22: Current and Prior Outlook
Metric Current Outlook Prior Outlook Net Sales $1.397B to $1.408B $1.376B to $1.397B Up 28% to 29% YoY Up 26% to 28% YoY Gross Margin ~57.6% ~57.6% Adjusted Operating Margin 1 ~20.8% ~20.5% Effective Tax Rate ~22.0% ~23.0% Adjusted Income per Diluted Share 1 $2.51 to $2.53 $2.42 to $2.46 Up 34% to 3
Slide 23: Appendix
_ APPENDIX 23 BUILT £OR THE WALD, YETI
Slide 24: Reconciliation of GAAP to Non-GAAP: 2018-2020
2018 2019(1) 2020 Net sales $ 778.8 $ 913.7 $ 1,091.7 Operating income $ 102.2 $ 89.8 $ 214.2 Non-cash stock-based compensation expense(2)(3) 13.2 52.3 9.0 Long-lived asset impairment(2) 1.2 0.6 1.1 Investments in new retail locations and international market expansion(2)(4) 0.8 — — Transition to Co
Slide 25: Reconciliation of GAAP to Non-GAAP: Q3 2020 and Q3 2021
Q3 2020 Q3 2021 Net sales $ 294.6 $ 362.6 Selling, General, and Administrative $ 103.9 $ 138.3 Non-cash stock-based compensation expense(1) (2.3) (3.8) Long-lived asset impairment(1) — (1.2) Business optimization expense(1) — (0.5) Adjusted Selling, General, and Administrative $ 101.6 $ 132.8 % of N
Slide 26: Reconciliation of FY 2021 Outlook
Current FY 2021 Outlook Prior FY 2021 Outlook Low High Low High Net sales $ 1,397.4 $ 1,408.3 $ 1,375.6 $ 1,397.4 Operating income $ 271.7 $ 274.0 $ 263.3 $ 267.7 Non-cash stock-based compensation expense(1) 15.4 15.4 16.0 16.0 Long-lived asset impairment(1) 2.3 2.3 1.1 1.1 Business optimization exp