Sprouts Farmers Market, Inc. · NASDAQ:SFM
Sprouts Farmers Market — Investor Presentation (May 2014)
25 slides from Sprouts Farmers Market's investor presentation, May 21, 2014
Slide 1: Investor Deck May 2014
Slide 2: Forward-looking statements and non-GAAP measures
estimates. “expects “believes.” ‘oponal of ancts and the los on extinguahment of deb, ting fn a au i EDA GAAP. —- ] Swe ae comp Tadaion, in compa mparable periods of 201 | iat ay 2012 CSundomer | 2 eal year. S00 512011 comblnaton (eo We CHenrys ii (tect. . adjusted tod earnings ctvardng oe Company S
Slide 3: oe
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Slide 4: High-growth, value-oriented fresh, natural and organic food retailer
High-growth, value-oriented fresh, natural and organic food retailer Broad consumer appeal One of the largest natural and organic retailers Significant momentum. Significant white space opportunity
Slide 5: Complete Natural & Organic Offering
Complete Natural & Organic Offering An Engaged, Loyal Customer Base Leading to Strong Financial Performance and Significant New Unit Growth Opportunity
Slide 6: Significant Opportunity As Sprouts Grows Market Share
ificar t Opportunity As Spr conrmcisenlconserere a aires oa $6008 U. ‘SFM Current : Market Share pom Pod ome, etiam Sai ‘Seone Natural and organic market expected to double to$118bn by 2020 Munleotcurentsatess pled Sprouts locus Caretta _ on preventative health chldhood obesity a + tnd specialty die
Slide 7: Produce surrounded by a complete grocery offering
Produce surrounded by acomplete grocery BEER offering Differentiated PRODUCE wi } alternatives il Dv Farmers market inspired, open store layout with low profile , ] displays | Y Convenient, small-box: | 25 - 28k sq. ft. Comfortable, easy to shop environment | ] Dv Fat grocery store
Slide 8: Broad Customer Demographics Draw Traffic in Variety of Markets
Broad Customer Demographics Draw Traffic in Variety of Markets Y Middle income and up Y Densely populated, urban areas as well as smaller metropolitan markets | Y Educated + Los Angeles and El Paso Y Wide spectrum of demographic and V- “Natural /festyle” markets and more ethnic makeups spedticaal* e
Slide 9: Regional buying model and scalable supply chain
PSL fe z —— | AE Fedoea limited CapEx Required Regional Buying Medel [ff Sourced and a ea {or Now Distribution e 1 ~~ me ZA) =. IP y \ ‘ : = . Produce is a common denominator among customers Y Supply chain system scalable to support Focus on freshness, speed-to-market and val Prices significantly be
Slide 10: Weekly circulars and annual promotions
‘More than 12 million weekly circulars Reinforces health-focused, value offering throughout the store 30+ annual promotions', which drive transition to increased basket size and higher margin Digital and social platforms for relevance today and tomorrow
Slide 11: Sprouts Grows its Share of Consumers' Food Retail Wallet
Slide 12: Proven Concept: stores in nine states
Estimated Proven Concept: 172 stores in nine states as of May 9, 2014 \ ‘Strong perf ll markets, i Y Opened 19 stores in 2013 with a target of 12% unit growth over at least the next five years | | * 23-24 new stores planned in 2014 (14% unit growth) {x I Existing Market ‘Target Near Term New Market
Slide 13: Case Study of a Sprouts Phoenix Location
Case Study of a Sprouts Phoenix Location 10% 200s 2008-2006 2007208 «008mm Broad Appeal Makes Sprouts a Formidable Comp: Healthy biving)
Slide 14: Business & Financial Performance
Business & Financial Performance =
Slide 15: Comp Growth and Margin Expansion in Existing Stores
Comp Growth ‘and Margin Expansion in Existing Stores ‘Compelling Store-Level Economics Y High, balanced sales growth Margin expansion in existing stores v v Ocenti dis Deleverage capital structure Long-Term Net Earnings Growth Target of 20%+ te.
Slide 16: Pro Forma Net Sales Growth
owth Pro Forma Net Sales! Simm 2.180 s2a8 aes iso sas sur 1490 119% siz00 shows [ ] Ei | | a ; 2008 2009200211012 2013 a ne 8 8 Balanced Sales Growth Across Comparable Store Sales Growth and New Store
Slide 17: Strong Sales Growth
ey rong sales G Simm a yor Grow om $674 \ |
Slide 18: Momentum Continued Through Q1 2014 Highlights
= tum C an Tar 4 mentum Continued Through Qi ighlights Consumers focus on value and health continues to generate strong same store sales, customer traffic and top- line sales 26% Q1 2014 Sales Growth Opened 5 new stores as of May 9, 2014, on track for annual target of 23- 24 openings Pro Forma Compa
Slide 19: 12013 atz014 2012 2013 12013 12014
12013 atz014 2012 2013 12013 12014 o% 103%
Slide 20: Target New Store Economics
Target New Store Economics Store Size 25 — 28k sq. ft. Net Cash Investment’ $2.8 million First Year Sales ~$10-$12 million Initial Sales Growth 20-30% over 3-4 years Pre-Tax Cash-on-Cash Returns 35%-40% within 3-4 years Te, Oe !
Slide 21: oars ie Congest Fon OR eer rns en nye a a
oars ie Congest Fon OR eer rns en nye a a fe
Slide 22: Authentic Natural and Organic Food Offering at Great Value
< yi Authentic Natural and Organic Food Offering at Great Value Fast Growing Segment of the U.S. Supermarket Industry with Strong Macro Tailwinds Significant New Store Growth Opportunity Supported by Broad Demographic Appeal Proven and Replicable Store Model with C ing Unit E 9 Resilient Business Mo
Slide 23: Appendix: Supplemental Materials
Appendix: Supplemental Materials = wre i oa aie | Ba Se | EA. el | oe
Slide 24: NSS
Ex ¢ NSS 73
Slide 25: Slide 25
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