Fox Factory Holding Corp. · NASDAQ:FOXF
Fox Factory — Investor Presentation (November 2023)
38 slides from Fox Factory's investor presentation, Nov 28, 2023
Slide 1: Fox Factory
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the federal securities laws, which statements
Slide 3: Fox Factory Introduction
Fox Factory Introduction Our people play to win in all they do Their passion and diverse experiences make us the best of the best Who We Are Our purpose is to challenge the impossible and lead in the never-ending pursuit of maximum performance Why We Exist Fox Factory delivers performance- defining
Slide 4: How We Win
Innovation leader Undisputed leader in ideation and technological advancement, creating a multi-year pipeline of performance defining products Premium component manufacturer Best in class manufacturer backed by a disciplined continuous improvement mindset Aspirational brands unparalleled in space So
Slide 5: 1+1=3 Mindset Leads To Transformational Growth
2013 2014 2015 2017 2019 2020 2021 2023 1+1=3 Mindset Leads To Transformational Growth Proven Performance Through • Expansion into adjacencies • Geographic expansion • New products • Highly accretive M&A • Synergistic with brands • Strong ROI on Capex investments Fox Factory has outperformed consume
Slide 6: Dominant Aspirational Brands Drive Growth
Professional Athletes Demand the best product for a competitive edge Ultra & Performance Enthusiasts Desire for the same performance as the professional athletes they admire Affluent Consumers Fulfill their dream of living the affluent adventurer lifestyle, where only the best of the best matters PR
Slide 7: Strong Secular Trends Underpin Our Strategy
Halo Effect Enthusiasts around the globe want to identify with and have what "the best" in the industry are using Personalization We design product offerings so consumers can customize their gear Affluent Customer Spending Higher wealth consumers continue to spend through challenging macro environme
Slide 8: Three Growing Groups
Three Growing Groups Group 2019 2020 2021 2022 Q3 YTD 2023 Group Description SSG $300 $367 $579 $681 $440* *Bike OE + AM + Marucci Q3 YTD of $144 PVG $306 $279 $361 $432 $406 OEM Auto + PS + Small AM Channel AAG $145 $245 $359 $489 $430 Automotive AM Total $751 $891 $1,299 $1,602 $1,276* *Includes M
Slide 9: Specialty Sports Group
Specialty Sports Group 9
Slide 10: SSG Pro Forma Growth
$366 $433 $697 $864 $642 2019 2020 2021 2022 Q3'23 LTM $300 $367 $579 $681 $455 2019 2020 2021 2022 Q3'23 LTM $66 $66 $118 $165 $187 2019 2020 2021 2022 Q3'23 LTM We expect SSG w/o Marucci to grow in the mid-single digits over the long term We expect Marucci to grow in the mid teens over the near te
Slide 11: Brand awards and product recognition
M TB -N E WS. DE 2023 Suspension Fork Brand of the year 2023 Shock brand of the year V I TA L M TB 2022 R E A DE R SUR VE Y FOX #1 Shock (11 years running), #2 Fork, #4 Seatpost to buy. V I TA L M TB STA R S 4.5 Stars - FLOAT Shock 4.5 Stars - FOX 38 Factory Fork 4.5 Stars - FOX 34 GRIP2 Factory For
Slide 12: Rapidly Growing Leadership In Metal Bat
Rapidly Growing Leadership In Metal Bat #1 Bat Grip #1 Wood Composite Bat CATX OFFICIAL GRIP OF THE #1 & #2 Most Used Wood Bat in Big Leagues The Best Brands in Baseball & Beyond Product Leadership Across All Core Categories 12
Slide 13: A Portfolio Of Performance Defining Products
A Portfolio Of Performance Defining Products 13
Slide 14: Growth Opportunity & White Space
Growth Driver SSG Legacy (e.g. Bike) Marucci Market Expansion: Forks and Suspensions Softball, Grips Emerging Segments: E MTB and Gravel International, Shoes, Gloves Innovative Segment: Live Valve Puck Knob & Carpenter Gloves Integrated System: Live Valve w/ Crank Sensor Pro Lab to fit Pros with Bat
Slide 15: Multiple Vectors of Continued Growth
Multiple Vectors of Continued Growth Utilize Cutting Edge Innovation and Technology to Disrupt the Game Expand Offering in Bats Across Brands and Customer Segments Capitalize on Significant International Momentum Grow Penetration in Softball Strategically drive expansion of Hitter’s House Locations
Slide 16: Diversification of SSG
SSG w/o Marucci YTD Q3’23 OEM 81% AM 19% OEM 54% AM 46% SSG w/ Marucci YTD Q3’23 Diversification of SSG After Market (AM) allows Fox to have more control over outcomes 16
Slide 17: Powered Vehicles
Powered Vehicles FOX FACTORY 17
Slide 18: PVG Sales
$306 $279 $361 $432 $300 $406 2019 2020 2021 2022 Q3'22 YTD Q3'23 YTD *$ IN MILLIONS 20% FY’22 Growth 35% FY’23 YTD Growth 12% 3-Year CAGR FOX has exceeded our low double-digit long-term growth target due to strong growth in off-road-capable powered vehicles (including those used in on-road sport/re
Slide 19: Strong market share & runway for growth
Strong market share & runway for growth ATVTruck & SUV Off-Road SNOWUTV Growth Opportunities & White Space OEM market expansion through newer platforms and product innovation Additional opportunities Defense International Expansion Military market expansion through dedicated facility operations in S
Slide 20: Product Innovation, Software Defined Suspension Matters
OE customers find software defined suspension (SDS) provides performance advantages across a wider set of uses, which differentiates the OEM to end customers Average price per SDS creates a higher average sale price compared to analog suspension (ASPs) Volume growth driven by accelerated adoption of
Slide 21: Expanding Internationally
Expanding Internationally KEY ACTIONS Finalize international catalog and proprietary applications for vehicles not offered in the US Place a regionally based business development team member in each of the largest truck and powersport regions (Europe, Middle East and Australia/New Zealand) and enter
Slide 22: Aftermarket Applications Group
Aftermarket Applications Group FPO 22
Slide 23: AAG Sales
$145 $245 $359 $489 $373 $430 2019 2020 2021 2022 Q3'22 YTD Q3'23 YTD AAG Sales 36% FY’22 Growth 16% FY’23 YTD Growth 50% 3-Year CAGR Continued demonstration of our 1+1=3 strategy has enabled FOX to create a synergistic product portfolio, helping us expand our TAM, enter adjacent or new markets and
Slide 24: System of Synergies
System of Synergies PREMIUM, RACE-PROVEN PRODUCT INNOVATION MANUFACTURED AT SCALE DELIVERING CREDIBLE & ASPIRATIONAL VEHICLE EXPERIENCES THAT ACHIEVE MAXIMUM PERFORMANCE Strong growth in off-road-capable powered vehicles (including those used in on-road sport/recreational markets) and acquisitions h
Slide 25: AAG Growth Strategy of 1+1=3
Enthusiast defined performance, demonstrated in use case specific applications deliberately released to market FOX Factory Vehicles Strategic Partnership Easy to Buy Selling in a manner we haven’t before: Integrated solutions, experience (not-gear head) based Expanding reach into new use cases, chan
Slide 26: Vertical Integration Strategy In Action
Vertical Integration Strategy In Action P R IC E /F E A T U R E S AAG Upfitted Vehicles PVG Shock AAG Lift Kit HALO PREMIUM ENTRY PREMIUM Custom suspension FOX Adventure Series 26
Slide 27: Financial
Financial FOXFACTORY 27
Slide 28: Financial Highlights (ex Marucci)
FY’ 21 $1,299M Q3’ 22 YTD $1,194M FY’ 22 $1,602M Q3’ 23 YTD $1,132M +23% -5% FY’ 21 $264M Q3’ 22 YTD $245M FY’ 22 $322M Q3’ 23 YTD $222M +22% -9% *FOX defines adjusted EBITDA as net income adjusted for interest expense, net other expense, income taxes, amortization of pu rchased intangibles, depreci
Slide 29: Sales Growth (ex Marucci)
Sales Growth (ex Marucci) FY’22 GROWTH 3-YEAR CAGR FY’23 YTD GROWTH 23% 29% -5% PVG 3-YEAR CAGR SSG 3-YEAR CAGR 12% 31% Consolidated Major Market AAG 3-YEAR CAGR 50% SSG 42% PVG 27% AAG 31% 2022 $751 $891 $1,299 $1,602 $1,194 $1,132 2019 2020 2021 2022 Q3'22 YTD Q3'23 YTD SSG 30% PVG 35% AAG 36% Q3'
Slide 30: Original Equipment & Aftermarket Segments (ex Marucci)
OEM 57% AM 43% Original Equipment & Aftermarket Segments (ex Marucci) 2022 Q3’23 TTM Leveraging aftermarket strength to drive OEM spec growth and expand customer base FOX typically enters new markets in the aftermarket channel to drive end-consumer adoption and brand value, which often leads to OEM
Slide 31: Profitability (ex Marucci)
Initiatives Include: Powered Vehicle manufacturing optimization R&D platform expansion Supply chain optimization in North America Expansion of upfitting dealer network and content per truck Profitability (ex Marucci) 3-Year CAGR GROWTH FY’23 YTD GROWTH 30% 22% -9% Opportunity exists to achieve sus
Slide 32: Solid Liquidity & Cash Generation
Solid Liquidity & Cash Generation Flexibility on capital allocation (1) Net leverage ratio is calculated using debt, less cash, to trailing 12-month adjusted EBITDA, including pro forma for recent acquisitions Expected long-term annual capex target of ~3.0-4.0% of sales. 0.5x Net Leverage Ratio(1) Q
Slide 33: Flexible Capital Structure
Flexible Capital Structure Cash position along with capacity on revolver provides adequate near-term liquidity Strong cash position and credit facility Cash management Organic & Inorganic Growth Focused on imperative operational and strategic initiatives Leveraging the lessons learned to improve our
Slide 34: Strong History of Creating Value Through Inorganic Growth
Strong History of Creating Value Through Inorganic Growth 2013 2014 2015 2017 2019 2020 2021 2023 34
Slide 35: Finding New Opportunities For Transformational Growth
Finding New Opportunities For Transformational Growth M&A Objectives Synergistic with our vision and brand New product technologies Adjacent markets Geographic expansion 35
Slide 36: Appendix
Appendix 36
Slide 37: Adjusted EBITDA Reconciliation (ex Marucci)
Adjusted EBITDA Reconciliation (ex Marucci) *Amounts may not sum due to rounding. ($ in Millions) 2019 2020 2021 2022 Q3'22 Q3'23 Net Income $94.5 $91.7 $163.8 $205.3 $152.3 $116.8 Provision for Income Taxes 14.1 12.8 24.6 28.5 28.3 21.0 Depreciation & Amortization 17.6 33.9 43.4 49.2 36.8 43.5 Non-
Slide 38: Thank You
RIDEFOX.COM WE’RE NEVER DONE Thank You
FOX Factory Holding — Investor Presentation (November 2023) on 6ix