Yeti Holdings, Inc. · NYSE:YETI
Yeti — Q2 2019 Earnings Presentation
23 slides from Yeti's earnings presentation, August 2019
Slide 1: Investor Presentation | August 2019
INVESTOR PRESENTATION| AUGUST 2019
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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
Slide 3: Strategic Priorities
STRATEGIC PRIORITIES 1 EXPANDING OUR CUSTOMER BASE Unaided brand awareness has grown from 2% in 2015 to 12% in 20191 2 INTRODUCE NEW PRODUCTS Announced 11 new products during 2019 Introduced new colorways in Drinkware and Coolers & Equipment 3 ACCELERATE DTC Fastest growing and highest margin channe
Slide 4: At a Glance
AT A GLANCE LTM Q2 2019 Net Sales KEY FINANCIAL METRICS $824MM $163MM LTM Q2 2019 LTM Q2 2019 Net Sales Adjusted EBITDA2 54% 20% LTM Q2 2019 2013 – 2018 Net Sales CAGR Coolers & Adjusted EBITDA2 Margin LTM Q2 2019 Equipment $824MM 42% 42% Drinkware KEY BUSINESS METRICS 55% 55% 1 $184.5BN >95% Other
Slide 5: Brand & Product
BRAND & PRODUCT 5
Slide 6: Sizable and Diverse Market Segments
SIZABLE AND DIVERSE MARKET SEGMENTS 2006 FISHING HUNTING 2019 BEACH SNOW CAMPFIRE AT PLAY AT HOME AT WORK • YETI’s Customer Base Has Expanded as Brand Awareness Has Spread Nationally • New Products and Marketing Driving Attractive Shift in Demographics 11 123 64% Owners 9% 33% Communities Ambassador
Slide 7: Significant Brand Following
SIGNIFICANT BRAND FOLLOWING LARGE AND GROWING DOMESTIC UNAIDED BRAND SOCIAL MEDIA PRESENCE AWARENESS BY REGION 2 Followers1 2019 2015 4MM 4MM 20% 18% 2.9MM 14% 13% 2.3MM 11% 11% 10% 9% 8% 1.26MM 7% 4% 3% 541K 2% 1% 1% 1% 1% 0% 411K 4 4 4 East South West South 3 East North 4 West North South Pacific
Slide 8: Culture of Innovation
CULTURE OF INNOVATION • Innovative and differentiated products that fill market gaps and consumer needs • Aggressive first-to-market product development strategy • Best in class talent: 60 engineers, product designers, and category managers • Robust design process focused on performance and function
Slide 9: Product Reviews - Legacy
PRODUCT REVIEWS - LEGACY LAUNCHED 2014 RAMBLER 20oz TUMBLER 2017 HOOPER FLIP 8 2008 TUNDRA 45 9
Slide 10: Product Reviews - New
PRODUCT REVIEWS - NEW LAUNCHED 2019 RAMBLER 24oz MUG 2018 CAMINO CARYALL 35 “HANDS DOWN THE 2019 “All you need for BEST BOAT BAG/BOX storage!” I’VE USED” LOADOUT GOBOX 30 10
Slide 11: Product & Category Evolution Since 2015
PRODUCT & CATEGORY EVOLUTION SINCE 2015 1H 2H 1H 2H 1H 2H PRE 2016 2017 2017 2018 2018 2019 2019 Hard Cooler Sherpa®, Roadie®, Tundra®, Tank® Tundra® 210 Limited Edition Limited Edition Limited Edition Haul™ Silo™ Reef Blue River Green Soft Cooler Hopper® Field Tan Hopper Flip® 8 Hopper Daytrip™ Hop
Slide 12: Channel & Supply Chain
CHANNEL & SUPPLY CHAIN 12
Slide 13: Powerful, Balanced Omni-Channel Strategy
POWERFUL, BALANCED OMNI-CHANNEL STRATEGY HIGHLIGHTS STRATEGIC CHANNEL MIX CREATES STABLE, HIGH MARGIN PROFILE • Diverse omni-channel business 2015 LTM Q2 2019 • Fast growing DTC business Wholesale2 Wholesale • Diverse group of U.S. retail partners with 92% 60% nationwide coverage; only one account e
Slide 14: DTC Channel
DTC CHANNEL YETI.COM RETAIL AUSTIN CURRENT CHARLESTON CURRENT CHICAGO Q3 2019 DENVER Q4 2019 CORPORATE SALES YETI AUTHORIZED 14
Slide 15: Expand Internationally
EXPAND INTERNATIONALLY GROWING GLOBAL SALES EXPANSION STRATEGY • Capitalize on global digital, e-commerce, and mobile trends DTC & Wholesale DTC • Enter international markets via DTC and select wholesale • Push global brand via Ambassador, influencer, and event marketing 57% 41% Wholesale DTC & Whol
Slide 16: Global, Leading Supply Chain
GLOBAL, LEADING SUPPLY CHAIN GLOBAL INFRASTRUCTURE GLOBAL FOOTPRINT • Leading third-party manufacturing and logistics partners • Optimizing quality, delivery, best cost, and concentration risk • Developed key manufacturing partners in 2017 and 2018 Coolers & Equip
Slide 17: Financials
FINANCIALS 11 BUILT FOR THE WILD, : YETI
Slide 18: Q2 2019 Results
Q2 2019 RESULTS NET SALES $232 $206 Q2 2018 Q2 2019 CATEGORY NET SALES GROWTH Coolers & Drinkware Equipment $117 $100 $109 $101 Q2 2018 Q2 2019 Q2 2018 Q2 2019 CHANNEL NET SALES GROWTH Wholesale Direct-to-Consumer $149 $149 $82 $58 Q2 2018 Q2 2019 Q2 2018 Q2 2019 18 Note: $ in millions.
Slide 19: Q2 2019 Results (Cont'd)
Q2 2019 RESULTS (CONT’D) GROSS PROFIT ADJ OPERATING INCOME1 Gross Profit $ / % Margin Adjusted Operating Income $ / % Margin $116 / 50% $43 / 19% $101 / 49% $39 / 19% Q2 2018 Q2 2019 Q2 2018 Q2 2019 ADJUSTED EBITDA1 ADJUSTED NET INCOME PER DILUTED SHARE1 Adjusted EBITDA1 $ / % Margin $51 / 22% $45 /
Slide 20: Appendix
APPENDIX 20
Slide 21: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION1 LTM 1H 2019 Net Income $66.6 Interest Expense 26.3 Income Tax Expense 15.6 1 Depreciation and Amortization 26.7 2 Non-Cash Stock-Based Compensation Expense 14.4 2 Long-lived Asset Impairment 1.3 3 Loss on Early Extinguishment of Debt and Accelerated 1.3 Amortization of Defer
Slide 22: Non-GAAP Reconciliation (Cont'd)
NON-GAAP RECONCILIATION (CONT’D) Q2 2018 Q2 2019 Operating Income $33.2 $35.0 1 Non-Cash Stock-Based Compensation Expense 4.1 4.3 1 These costs are reported in SG&A expenses 1 Long-lived Asset Impairment — 0.0 1,2 Investments in New Retail Locations and International Market Expansion — 0.8 1,3 Trans
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