Slide 1: FY 2024 Earnings
FY 2024 Earnings March 7, 2025
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Advantage believes that the use of Adjusted EBITDA from Continuing Operations, Adjusted EBITDA from Discontinued Operations, Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal Adjusted EBITDA by
Slide 3: 2024: Progressing On Multi-Year Transformation
2024: Progressing On Multi-Year Transformation $3.0B $356M $335M 4.0X Revenues(1) Adj. Unlevered -11% YOY Adj. EBITDA(2) FCF; ~90% Net Leverage +0.2% organic +1.1% YOY conversion(3) Ratio(3) ► Simplified the business and divested non-core assets ► Re-segmented operations to better align with clients
Slide 4: Navigating a Challenging Consumer Environment
Navigating a Challenging Consumer Environment Softer Consumer CPG & Retailers Shopping Behaviors Adapting ► Consumers have become more value- ► Clients reacting with innovation, price seeking promotions and disciplined vendor cost ► Club stores and mass merchandisers management benefiting versus reg
Slide 5: Enhancing Capabilities for Future Growth
Enhancing Capabilities for Executing the transformation phase Future Growth Simplify Transform Accelerate Simplify Advantage’s portfolio, Modernize tech, equip teammates to Sustainable long-term growth operations and financial reporting work smarter and build capabilities Internal Use Only 5
Slide 6: 2024 Highlights By Segment
2024 Highlights By Segment Branded Services Experiential Services Retailer Services ► Results impacted by ► Strong growth with ► Solid performance from challenging macro increased events per day improved execution backdrop and execution rate ► Better cost discipline ► Right-sized the business in ► I
Slide 7: Implementing IT Transformation Initiatives
Implementing IT Transformation Initiatives Prioritizing activities in 2025 given the market environment; expect to largely complete implementation in 2026 Modernizing New IT Systems Technology AI Initiatives Modernizing systems for increased Equipping teammates with the right Enabling competitive di
Slide 8: Workforce Optimization Expected to Unlock Value
Workforce Optimization Expected to Unlock Value Enhancing how Advantage assigns and deploys talent in 85,000+ retail stores Enhance Teammate Optimize Operating Leverage Experience Structure Technology ► Increase teammate retention and ► Improve service efficiency ► Optimize workforce management for
Slide 9: Branded Services
Branded Services Serving as the strategic extension of CPG sales and marketing teams with services including selling to retailers, retail merchandising, omnichannel marketing and leading brand and retail execution for a large and diverse client base 2025: Increasing agility to help clients succeed i
Slide 10: Experiential Services
Experiential Services Helping brands break through to consumers, build loyalty and drive sales with omnichannel sampling experiences in-store and online 2025: Transitioning to more normalized growth following rebuilding years post-COVID Ꝺ Growing traditional sampling activity with existing clients a
Slide 11: Retailer Services
Retailer Services Providing end-to-end solutions for retailers, including resets, merchandising, aisle-shelf optimization, private brand strategy and retail media 2025: Focus on execution and scoping new markets Ꝺ Enhancing retail merchandising and private brand client services Ꝺ Expanding retail me
Slide 12: EBITDA Growth Through Transformation and Challenging Environment
EBITDA Growth Through Transformation and Challenging Environment TOTAL ADVANTAGE Highlights Revenues (Continuing Operations) $ in millions ► Softness in revenues indicative of market Y/Y growth (9)% +0%(1) (10)% (3)%(1) headwinds across CPG and retail $991.9 $3,900.1 $75.5 $3,566.3 $892.3 $374.3 $12
Slide 13: Navigating Cyclical CPG Challenges
Navigating Cyclical CPG Challenges BRANDED SERVICES Highlights Revenues (Continuing Operations) $ in millions ► Challenging market environment Y/Y growth (26)% (4)%(1) $1,758.4 (25)% (6)%(1) $431.3 adversely impacted Branded Services’ $374.3 $75.5 full-year performance $1,306.3 $323.6 $48.5 $179.0 $
Slide 14: Strong Client Demand and Improved Execution
Strong Client Demand and Improved Execution EXPERIENTIAL SERVICES Highlights Revenues (Continuing Operations) $ in millions ► Strong client demand drove 2024 Y/Y growth +12% +11%(1) +5% +3%(1) revenue and Adjusted EBITDA growth $1,295.0 $1,159.4 $325.5 $308.7 • Average events per day grew $350.0 $30
Slide 15: Improved Execution Drove Solid Performance
Improved Execution Drove Solid Performance RETAILER SERVICES Highlights Revenues (Continuing Operations) $ in millions ► Solid Adjusted EBITDA performance in Y/Y growth (2)% (3)% 2024 due to efficient talent deployment $965.0 $982.3 $243.3 $251.9 and cost management efforts ► Q4 revenues negatively
Slide 16: Balance Sheet and Cash Summary
Balance Sheet and Cash Summary As of 12/31/2024 Net Debt Overview Maturity Schedule $ in millions $1,562(3) $ in millions Maturity Rate Outstanding $456 First Lien Term Loan 2027 S+4.25%(2) $1,106 Senior Secured Notes 2028 6.50% 615 $1,106 Total Gross Debt $1,721 $615 Less: Cash and Cash Equivalents
Slide 17: Initiating 2025 Guidance
Initiating 2025 Guidance $ in millions, unless otherwise noted 2025 Guidance 2025 Commentary ► Expect headwinds in 1Q’25 from poor Revenues Up low single digits January weather patterns and retail inventory shifts; ongoing market challenges driven by softer consumer spending and CPG growth, Adjusted
Slide 18: Laid Groundwork for Execution Focus in 2025
Laid Groundwork for Execution Focus in 2025 2024 Ongoing Focus Areas Made Significant Relentless Strengthen Support Clients’ Progress Execution Financial Rigor Needs ✓ Simplified organization ► Increasing operating ► Increasing cost discipline ► Track record of efficiency ► Maximizing future cash su
Slide 19: Appendix
Appendix 19
Slide 20: Strengthening Position as a Provider of Choice
Strengthening Position as a Provider of Choice Building on Enhancing Generating Stronger Proven Strengths Commercial Results, Returns and Capabilities Value Ꝺ Unparalleled Insights Ꝺ High-Tech Ꝺ Expertise in generating Advanced, real-time insights and on-demand and Expertise solutions enhancing spee
Slide 21: On Track to Deliver Technology Enhancements
On Track to Deliver Technology Enhancements IT Transformation Capex (2024-2026): $140M to $150M Unify front-line Consolidate retail Unlock value Innovate Modernize Upgrade talent services, product through financial management staffing and of data and demonstration systems system scheduling analytics
Slide 22: Non-GAAP Reconciliation (1/8)
Non-GAAP Reconciliation (1/8) Net Income to Adjusted EBITDA from Continuing Operations and Discontinued Operations Internal Use Only 22
Slide 23: Non-GAAP Reconciliation (2/8)
Non-GAAP Reconciliation (2/8) Branded Services Operating (Loss) Income to Adjusted EBITDA by Segment Internal Use Only 23
Slide 24: Non-GAAP Reconciliation (3/8)
Non-GAAP Reconciliation (3/8) Experiential Services Operating (Loss) Income to Adjusted EBITDA by Segment Internal Use Only 24
Slide 25: Non-GAAP Reconciliation (4/8)
Non-GAAP Reconciliation (4/8) Retailer Services Operating Income to Adjusted EBITDA by Segment Internal Use Only 25
Slide 26: Non-GAAP Reconciliation (5/8)
Non-GAAP Reconciliation (5/8) Revenues to Revenues Net of Pass-Through Costs Internal Use Only 26
Slide 27: Non-GAAP Reconciliation (6/8)
Non-GAAP Reconciliation (6/8) Adjusted EBITDA and Adjusted Unlevered Free Cash Flow Internal Use Only 27
Slide 28: Non-GAAP Reconciliation (7/8)
Non-GAAP Reconciliation (7/8) Net Debt Internal Use Only 28
Slide 29: Non-GAAP Reconciliation (8/8)
Non-GAAP Reconciliation (8/8) Footnotes (a) Represents non-cash compensation expense related to performance stock units, restricted stock units, and stock options under the 2020 Advantage Solutions Incentive Award Plan and the Advantage Solutions 2020 Employee Stock Purchase Plan. (b) Represents exp