Aritzia, Inc. · TSX:ATZ
Aritzia — Investor Day (October 2022)
107 slides from Aritzia's investor day presentation, Oct 27, 2022
Slide 1: Aritzia Investor Day 2022
Slide 2: Forward-looking statements
H 1 Please note that our remarks today may include our expectations, Discla mer future plans and intentions that may constitute forward-looking statements. Such outlook is based on estimates and assumptions made by management regarding, among other things, general economic and geopolitical condition
Slide 3: Agenda
Agenda Presentation 9:00 AM - 12:15 PM Introduction Who We Are What We Have Achieved How We Operate Break How We Will Grow What We Will Achieve Break Q&A Lunch 9:55 AM - 10:05 AM 11:15 AM - 11:25 AM 12:15 PM - 1:00PM Support Office Tour 1:00 PM - 2:00 PM Boutique & DC Tour (Optional) 2:00 PM - 5:00
Slide 4: Everyday Luxury. To Elevate Your World.
Everyday Luxury. To Elevate Your World.™ POWERING STRONGER _— ARITZIA
Slide 5: Our corporate objectives are key to our success
Our corporate objectives are key to our success. ARITZIA
Slide 6: Our proven track record of success spans years
Our proven track record of success spans 38 years. a Founded by Hill family with first Vertical Integration, Computerization, + Opened first stores outside Vancouver in Berkshire Partners Berkshire purchased majority stake to = Opened first two USA stores in Seattle store in Vancouver Store Design F
Slide 7: Interim Chief Marketing Officer
Interim Chief Marketing Officer
Slide 8: Today's presenters
Today's presenters. al Jennifer Weng Chief Executive 35-Year Tenure Karen Janes Executive \ President, Real Estate -Year Tenure Brian Hill Founder & Executive Chair 38-Year Tenure w Heather McLean ‘ecutive Vice President, Product 20-Year Tenure Todd Ingledew Chief Financial Officer 6-Year Tenure Vic
Slide 9: Jennifer Wong, Chief Executive Officer
Jennifer Wong Chief Executive Officer ; - ARITZIA
Slide 10: Who We Are
Who We Are . ae ~~ NRITZIA
Slide 11: Strategically positioned in the global fashion landscape
Luxury Sub-Luxury We are strategically Everyday Luxury positioned in the global _ARITZIA fashion landscape. Fast Fashion Discount i ———— ARITZIA
Slide 12: We believe in high-quality, beautifully designed products
We believe in high- quality, beautifully designed products.
Slide 13: We believe in aspirational environments and experiences
We believe in aspirational environments and experiences — online and in our boutiques. 13 ARITZIA
Slide 14: We believe in personalized and engaging client service
We believe in _ personalized ») and engaging client service. ARITZIA
Slide 15: We believe in captivating communications
We believe in captivating communications. 5 ARITZIA
Slide 16: We call it Everyday Luxury
We call it Everyday Luxury. ‘ au S -_ ARITZIA
Slide 17: What We Have Achieved
What We Have Achieved oe 1 te =>, ARITZIA
Slide 18: Our business is strong
Our business is strong. $2.0 - 2.05 BILLION FY23 TOTAL NET REVENUE PROJECTED 50% Country Sales Mix Canada — 67 stores @ USA — 46 stores 18 65% Channel Sales Mix Retail @ eCommerce 35% 95% Brand Sales Mix Exclusive Brands @ 3° Party Premium Brands ARITZIA
Slide 19: Best performing 5 year return on the TSX
Barry Schwartz Said It Barry Schwartz QD PBarVScrwarveaw Aritzia now has the best performing 5 year return on the TSX. Amazing that SHOP is still on the list. symbol Name SY %Chge + ATZT0 ‘Aritzia Ine +341.51% + TrILTO Tfi International Inc +295.79% + Touro Tourmaline Oil Corp #239.97% + MEGTO Meg E
Slide 20: How We Operate
How We Operate 20
Slide 21: We will continue to build upon our unique strengths
We will continue to build upon our Unique strengths that have made us successful. ARITZIA
Slide 22: Our premier real estate
Our premier real estate. We carefully consider every physical Aritzia destination. The strength of our boutique and real estate portfolio is a result of our disciplined selection process. - AAA locations - Compelling economics ARITZIA
Slide 23: Our proprietary retail model
Our proprietary retail model. We design and operate our boutiques with our clients in mind, paying meticulous attention to both the form and function of our spaces. - Aspirational form - Efficient function 23 ARITZIA
Slide 24: Our strong digital model
Formula Edit — Your fall formula includes bombers and cargos. Maybe your friend's vintage sports car. Our strong digital model. 7 ‘ = We provide our clients with access to all our ARITZIA ; beautiful products, wherever and whenever they want through aritzia.com Tna— Up-for-anything styles designed f
Slide 25: Our talented people and high-performance culture
Our talented people and high-performance culture. We are committed to the success of our People, and we are well on our way to being one of the most admired cultures in fashion. - Experienced management team - World-class talent in all areas - High-performance standards - Long-term perspective ARITZ
Slide 26: Our foundational infrastructure
Our foundational infrastructure. We continue to build upon our best-in-class foundational infrastructure which enables our ability to deliver exceptional results. We strategically invest in infrastructure. - Implementation in lockstep with growth - Strategic selection of top-tier systems ARITZIA
Slide 27: Heather McLean, EVP Product
Heather McLean Executive Vice President, Product ARITZIA
Slide 28: Our high-quality, beautifully designed product
Our high-quality, beautifully designed product. We have a strategic approach to product that extends across our entire value chain. We will continue to optimize our proven strategies to deliver across all areas. - Merchandise Planning - Creative Development - Manufacturing - Product Integration ARIT
Slide 29: Our breadth and depth of assortment
Our breadth and depth of assortment. We have doubled our style count and grown our product catalogue by expanding the depth and breadth of our assortment. — Styles — Sizes — Colours 29
Slide 30: We conceive, create, develop and retail fashion brands
We conceive, create, develop and retail fashion brands. Each with its own vision and depth of design, united by an Everyday Luxury approach. ARITZIA
Slide 31: Our exclusive brands drive 95% of our sales
Our exclusive brands drive 95% of our sales. BABATON T E N BY BABATON wilfred wilfred free Tna TnAction” | SUPERWORLD’ Sunday Best tes REIGNING DENIM FORUM CHAMP 31 ARITZIA
Slide 32: BABATON
32 BABATON T E N BY BABATON ARITZIA
Slide 33: wilfred
33 wilfred wilfred free ARITZIA
Slide 34: Tna
34 Tna TnAction™ ARITZIA
Slide 35: Sunday Best
35 Sunday Best DENIM FORUM SUPER WORLD” ARITZIA
Slide 36: We offer a balanced product assortment
We offer a balanced product assortment. 4 Brands ~ \y | Product Categories # Climate Categories a , ARITZIA
Slide 37: Inventory management
’ lows us to have the right Maximized Effective : full-price inventory sales ’ management Ss ARITZIA
Slide 38: We elevate our product across all key elements
We elevate our product across all key elements. took ooo High-quality Sophisticated Fabrics Construction Considered Superior Fit Detailing & Function — _ _ ARITZIA
Slide 39: We enhance quality through seasoned manufacturing expertise
We enhance quality through seasoned manufacturing expertise. & a Best-in-class Partners Trade Opportunities © = Diversified Vendors Enhanced Technology @ Improved Logistics ARITZIA
Slide 40: We work directly with best-in-class partners
We work directly with best-in-class partners to source high-quality and low-impact raw materials. This yields attainable pricing and attractive margins. ARITZIA
Slide 41: Acquisition of Reigning Champ
; — | Be REIGNING We accelerated our entry into menswear with the acquisition of Reigning Champ. sill a ARITZIA
Slide 42: Grow Reigning Champ from $25M to $75M by FY27
42 We will grow Reigning Champ from $25M to $75M in annual sales by FY27. — Multiplying style count — Launching new categories — Innovating and optimizing existing categories ARITZIA
Slide 43: Rebecca Loyo Mayo, VP Sustainability
Rebecca Loyo Mayo Vice President, Sustainability ARITZIA
Slide 44: Our responsibility to Community
Our responsibility to Community. We are committed to responsible practices across every aspect of our operations and to making positive impacts on our Community. - People: Opportunity, Belonging and Wellbeing - Planet: Climate, Water and Materials ARITZIA
Slide 45: We make our planet a priority
45 We make our planet a priority. - Climate and GHG emissions disclosure - 60% of styles use lower-impact materials - Monitoring 100% of suppliers’ environmental performance ARITZIA
Slide 46: We make our people a priority
We make our people a priority. - Equity Diversity & Inclusion strategy and team - Supply chain management - Aritzia Asks 46 ARITZIA
Slide 47: We have developed governance and we disclose
47 FY2022 ARITZIA COMMUNITY™ ESG REPORT ARITZIA We have developed governance and we disclose. - Established a Board Environmental and Social Committee - Established an internal Community Executive Committee for accountability and leadership of Responsibility strategies - Published the inaugural Arit
Slide 48: ARITZIA
ARITZIA
Slide 49: How We Will Grow
How We Will Grow 49
Slide 50: Three strategic levers
We will grow our business through three strategic levers. 1) Geographic Expansion 6 eCommerce Growth 3 ] Increased Brand Awareness 50 ARITZIA
Slide 51: Karen Janes, EVP Real Estate
Karen Janes Executive Vice President, Real Estate 51 ARITZIA
Slide 52: We will accelerate our geographic expansion
We will accelerate our geographic expansion. | WA 2 a ~ ARITZIA
Slide 53: Measured growth of new boutiques since 2008
We have had measured growth of new boutiques since 2008. 9.7% CAGR' 39 33 29 24 USA 46 22 19 7 67 14 5 63 57 o 49 9 48 7 42 5 338 A 2 35 | Canada | 31 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 ‘ CAGR calculation in
Slide 54: Geographic expansion in the USA
We will accelerate our geographic expansion in the USA. | +] @ Edmonton nite @ Cunt, Orsi Victoria @Ovencower ( Boutiques! Orr ie JQuebec City Montreal Minneapoli _= 46 ‘Projected boutique count to the end of Fiscal 2023. Four existing Reigning Champ boutiques are excluded from this boutique count.
Slide 55: Premier real estate for new locations
We will capitalize on premier real estate for new locations. 58 ARITZIA
Slide 56: Purposeful site selection
We are purposeful with our site selection. — AAA locations with strong centre performance — Located at highly visible, prominent and heavily trafficked intersections or entrances — Traffic and volume driving adjacencies — Average 8,000 square feet ARITZIA
Slide 57: Compelling real estate economics
We have compelling real estate economics. — Investments from landlords in form of both landlord work and tenant allowances — Favourable lease terms 57
Slide 58: Open 8-10 new USA boutiques annually
We will open 8-10 new USA boutiques annually, in new and existing markets. Our payback period for new boutiques is 12-18 months. ARITZIA
Slide 59: Opening in new USA markets by FY27
We will open in 18 new USA markets by FY27. With every new market, eCommerce is expected to grow substantially. We are seeing an average lift of 80% in eCommerce when we open a boutique in a new market. 59 ARITZIA
Slide 60: Expand 3-5 existing boutiques annually
We will expand 3-5 existing boutiques annually. Our payback period for boutique expansions is 18-24 months. ARITZIA
Slide 61: Larger boutiques showing exponential success
Our larger boutiques are showing exponential success. — Average size from 6,000 to 12,000 square feet ARITZIA 61
Slide 62: Grow boutique count to approximately 150
We will grow our total boutique count to approximately 150, increasing our total square footage by up to 60% by FY27. ARITZIA
Slide 63: Elevate our boutique design
We will continue to elevate our boutique design. 63
Slide 64: A-OK Cafes
a f ~ aP — y ry ' ry ~~ ry rT We will deliver an innovative experienc through our A-OK Cafes. —————
Slide 65: Focus on flagships
We are focused on flagships in the right locations, with the right economics. os ARITZIA
Slide 66: Everyday Luxury. To Elevate Your World.
Everyday Luxury. To Elevate Your World.™ ARITZIA avenue inf re SALA
Slide 67: Flatiron in New York
Slide 68: | q Al. , OPA
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Slide 69: Jennifer Wong, Chief Executive Officer
Jennifer Wong Chief Executive Officer ARITZIA
Slide 70: We deliver Everyday Luxury to 200+ countries
ARITZIA x — We deliver nsec aerate Everyday Luxury to 200+ countries through aritzia.com 70 ARITZIA
Slide 71: Our strength is also our opportunity
Our strength is also our opportunity. ARITZIA "70s Of Oversi . Crisp button- ups. Bold plaids. All that’s missing is the NYT. In print. 1 ARITZIA
Slide 72: Grow eCommerce to $1.5 to $1.7 billion
We will grow our eCommerce business in the range of $1.5 to $1.7 billion. eCommerce Mix FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 HISTORIC 72 ARITZIA
Slide 73: We will deliver eCommerce 2.0
We will deliver eCommerce 2.0 We will connect customers to Everyday Luxury, offering beautiful product, tailored experiences, and endless inspiration to be a leading eCommerce business. World-class, meet world. 73 ARITZIA
Slide 74: Tailored product discovery
Tailored Product Discovery ARITZIA eCommerce 2.0 We will deliver tailored product discovery. Enabling customers to discover all we have to offer, while personalizing suggestions for their individual taste, style and preferences. 74 ARITZIA
Slide 75: Creative innovation
Tailored Product Discovery ARITZIA eCommerce 2.0 We will deliver creative innovation. With an emphasis on form, creative innovation keeps our eCommerce experience at the forefront of cool. This extends to service, operations and technology. 75 ARITZIA Creative Innovation
Slide 76: Intuitive experience
Tailored Product Discovery ARITZIA eCommerce 2.0 We will deliver an intuitive experience. Seamless, integrated and highly shoppable — our eCommerce platform will provide our clients further ease of use at all touchpoints. 76 ARITZIA Intuitive Experience Creative Innovation
Slide 77: Execute on our eCommerce roadmap
ARITZIA 70s Office Edit — Oversized blazers. Crisp button- ups. Bold plaids. All that’s missing is the NYT. In print. We will execute on our Ssh er eCommerce roadmap. We will elevate our existing web platform and create new digital platforms — such as a customer app. 7 ARITZIA
Slide 78: Brian Hill, Founder & Executive Chair
Brian Hill Founder & Executive Chair ARITZIA
Slide 79: Our brand is Everyday Luxury
Our brand is Everyday Luxury. We will continue to build and execute on our much-loved Everyday Luxury experience across our 4 key touchpoints. - Engaging Service - Beautiful Products - Aspirational Environments - Captivating Communications ARITZIA
Slide 80: Our clients are talking
80 Our clients are talking. - Our clients have surpassed our boutiques as our main marketing vehicle - Over the last 2 years our total clients have doubled, and our USA clients have tripled - We have nearly 2 billion impressions on TikTok Q aritzia aritzia aritziahaul aritziaemployee aritziaoutfits
Slide 81: We will augment and amplify
We will augment and amplify. When our clients talk, we will amplify their voices and augment through strategic marketing. ai ARITZIA
Slide 82: We will tailor their experiences
Slide 83: Build our social community
Slide 84: Propel Aritzia and build on Everyday Luxury
Slide 85: Todd Ingledew, Chief Financial Officer
Slide 86: Enable growth by building scalable infrastructure
Slide 87: We will grow our leaders to grow our business
Slide 88: We will scale our processes
Slide 89: We will invest in our technology
Slide 90: We will expand our space
Slide 91: What We Will Achieve
Slide 92: Proven track record of profitable growth
Slide 93: We have surpassed our goals
Slide 94: – – –
– – –
Slide 95: We invested in our business since our IPO
Slide 96: Our business is strong
Slide 97: USA business and eCommerce to more than double
Slide 98: –
–
Slide 99: Adjusted EBITDA margin of approximately 19% in FY27
Slide 100: We are investing capital in our business
Slide 101: Our priorities for capital allocation
Slide 102: Tie back to our business is strong slide
Tie back to our business is strong slide
Slide 103: Our Business is Strong. And Powering Stronger.
Slide 104: Break – 10 mins
Slide 105: Question & Answer Period
Slide 106: • • • • • •
• • • • • •
Slide 107: Non-IFRS Measures