Slide 1: Better Choice Company Q3 2022 Earnings Presentation
Better Choice Company Q3 2022 Earnings Presentation November 10, 2022
Slide 2: Forward-looking statements disclaimer
This presentation regarding Better Choice Company, Inc. (“the Company”, “Better Choice”, “BTTR”, “we”, “us” or “our”) is for you to familiarize yourself with the Company. This presentation contains information, statements, beliefs and opinions which are forward-looking, and which reflect current est
Slide 3: Purpose Built for Success in the Pet Industry
3 Note: Premium and super premium defined as being sold with a retail price greater than $0.20 per ounce. Executive Team Purpose Built for Success in the Pet Industry Significant Online Recurring Revenue Base (Chewy, Amazon and DTC) Rapidly Growing International Sales (~$24M Q3 ‘22 LTM Sales) Asset
Slide 4: Halo is the brand for a new generation of pet parents
4 Halo is the brand for a new generation of pet parents ~$54M YTD Gross Sales + $12.1M Brick & Mortar $19.7M International $21.9M Online (E-Comm + DTC)
Slide 5: International Growth Continues to Exceed Expectations
International Growth Continues to Exceed Expectations Holistic Renovation High Protein Cat Innovation $19.7M YTD Q3 Sales +82% vs. YTD Q3 ‘21 $100M ’21–’25 Sales Aggregate Contracted Minimums 5 • On pace to exceed contracted volumes in 2022 • International growth driven by Asian demand for dry cat f
Slide 6: Direct-to-Consumer Platform is Fully Integrated
Direct-to-Consumer Platform is Fully Integrated — Halopets.com Launched TruDog Transition Complete ° “ama It's a pet mom ‘ PraG ae j } | thin, i If you shopped TruDog" for that, get this, Meal Bites Toppers BETTER . CHSICE
Slide 7: Halo Holistic Domestic Relaunch in Q4 '22
Halo Holistic™ Domestic Relaunch in Q4 ‘22 ss ADULT.CAT ADULT DOG
Slide 8: Brick & Mortar retail launches
8 Pet Supplies Plus: Dog Aisle • Launch Date: April ‘22 • 600+ Stores • 5’ Shelf Space • “Preferred Brand” Petco: Seasonal Wall • Placement: May - July ‘22 • ~900 Petco Stores • 4’ – 8’ Shelf Space • “Best Choice Brand” Petco: Dog Aisle • Launch Date: July ‘22 • 1,000+ Petco Stores • 4’ – 8’ Shelf S
Slide 9: Sales and gross margin by channel
9 GAAP Adjusted GAAP Adjusted GAAP Adjusted Q4 2021 Q1 2022 Q2 2022 Q2 2022 Q3 2022 Q3 2022 Sep YTD 2022 Sep YTD 2022 $ in millions $ % $ % $ % $ % $ % $ % Gross Sales: Domestic $9.7 71% $12.7 65% $12.7 64% $12.7 64% $8.5 60% $8.5 60% $33.9 63% $33.9 63% International $3.9 29% $7.0 35% $7.1 36% $7.1
Slide 10: Actions Taken in 2022
10 Actions Taken in 2022 • Communicated domestic and international price increase in January ‘22 across majority of SKUs, effective April ‘22 • Completed transition of Halo Holistic™ domestic dry kibble to new co-manufacturer in Q4 ’21, realizing 8% - 10% margin improvement on applicable SKUs beginn
Slide 11: Amended credit facility key terms
11 • Closing Date: October 24, 2022 • Facility Size: $13.5M Revolver (increase from $7.5M Revolver + $4.7M Term Loan1) • Maturity Date: October 2024 (extended from January 2024) • Amortization: None ($4.7M of scheduled repayments through January 2024 eliminated) • Liquidity Covenant: $8.5M (reduced
Slide 12: Unaudited Consolidated Statements of Operations
Unaudited Consolidated Statements of Operations —_— Three Months Ended Nine Months Ended September 30, September 30, 2022 2024 2022 2021 Net sales S 14865 $ 13,200 § 45,394 $ 35,019, Cost of goods sold 7,700 8,762 31,795 22,407 Gross profit 4,165 4438 13,599 12,612 ‘Operating expenses: Selling, gene
Slide 13: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net (Loss) to EBITDA and Adjusted EBITDA Three Months Ended ‘Nine Months Ended ‘September 30, — 203% Tom 2071 Net (loss) income available to common stockholders Bae) § 4954) 8-870 Interest expense, net 79 324 3.108 Tax expense = = Depreciation and amortization 431 1,255, raIroa 294
Slide 14: Reconciliation to Net Sales and Gross Profit to Adjusted
Reconciliation to Net Sales and Gross Profit to Adjusted Net Sales and Gross Profit Three Months Ended September 30, 2022 ‘As Reported ‘As Adjusted (GAAP) Adjustments _(Non-GAAP) Net sales $ 11865 $ = $ 11,865 Cost of goods sold 7,700 (190) (a) 7,510 Gross profit $ 4165 = $ 190 $ «4,355 Gross profit
Slide 15: The World's Best Food For The World's Best Kids
The World’s Best Food For The World’s Best Kids
Slide 16: Thank You!
Better Choice Company The Most Innovative Pet Food Company In The WorldThank You!