Driven Brands Holdings Inc. · NASDAQ:DRVN
Driven Brands — Investor Day (September 2023)
139 slides from Driven Brands's investor day presentation, Sep 20, 2023
Slide 1: Investor Day
INVESTOR DAY September 2023 Copyright line goes here
Slide 2: Today's Agenda
TODAY’S AGENDA CAUTIONARY STATEMENT & WELCOME Joel Arnao, SVP, Financial Planning & Analysis 9:00AM STRATEGIC OVERVIEW Jonathan Fitzpatrick, President & CEO 9:03AM BREAK 9:45AM OPERATIONAL EXCELLENCE Danny Rivera, Chief Operating Officer 10:00AM TAKE 5 LOYALTY Danny Rivera, Chief Operating Officer 1
Slide 3: Cautionary Statement & Welcome
CAUTIONARY STATEMENT & WELCOME Joel Arnao SVP, Financial Planning & Analysis
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This presentation also contains references to earnings before interest, taxes, depreciation, and amortization on an adjusted basis (“Adjusted EBITDA”), that is not based on accounting principles generally accepted in the United States (“GAAP”), or non-GAAP financial measu
Slide 5: Forward Looking Statements & Disclaimer
FORWARD LOOKING STATEMENTS & DISCLAIMER This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements orally during Investor Day, including to analysts, investors, representatives of the
Slide 6: Strategic Overview
STRATEGIC OVERVIEW Jonathan Fitzpatrick President and Chief Executive Officer Copyright line goes here
Slide 7: Strategic Overview
STRATEGIC I. Intro OVERVIEW II. Industry Overview III. Power of the Driven Platform IV. Visibility into Long-term Growth V. Capital Strategy VI. Dream Big 2026 Plan Copyright line goes here
Slide 8: 2023 CEO Interim Report Card
2023 CEO INTERIM REPORT CARD Positives Opportunities Take 5 Oil Change Performance 2023 Guidance Building Glass Platform U.S. Glass Integration Take 5 Car Wash Re-branding U.S. Car Wash New CFO and COO 2023 IR Management STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINAN
Slide 9: Driven Valuation
DRIVEN VALUATION Enterprise Value / CY 2023E Adj. EBITDA ~18X ~17X ~11X ~9X Highly Franchised High Growth Retail Auto Services Adj. EBITDA CAGR (’21-’23E) 9% 12% 4% 22% ’23E Adj. EBITDA Margin 33% 12% 20% 23% % Franchised (Stores)1 98% - - 74% STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY
Slide 10: Priorities Following Q2 2023
PRIORITIES FOLLOWING Q2 2023 Pause future growth capital for U.S. Car Wash Improve U.S. Car Wash over the next ~12 months Complete U.S. Glass integration Continue to invest in and grow Oil Change and U.S. Glass Reduce 2024 growth capital significantly – focus on de-leveraging STRATEGIC OVERVIEW OPER
Slide 11: Why I Joined 11 Years Ago
WHY I JOINED 11 YEARS AGO Needs based and growing category Limited eCommerce risk Fragmented & unsophisticated Scale matters Brands matter Customer centricity matters Build a scaled, profitable and enduring business STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS
Slide 12: 10+ Years of Accomplishments
10+ YEARS OF ACCOMPLISHMENTS 2012 Store Count Revenue ($B) Adj. EBITDA ($M) 2 Brands 12% CAGR 33% CAGR 27% CAGR ~$2.3 ~5,100 ~$535 2023 4 Segments ~1,400 $0.1 $38 2012 2023E 2012 2023E 2012 2023E STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 12
Slide 13: Driven Today
DRIVEN TODAY MAINTENANCE PAINT, COLLISION & GLASS CAR WASH PLATFORM SERVICES Maintenance, repair and oil Collision repair, paint services Express conveyor washes Distribution and changes and glass replacement procurement System-Wide Sales LTM Q2 2023 $1.8B $3.2B $0.6B $0.4B STRATEGIC OVERVIEW OPERAT
Slide 14: Driven Today
DRIVEN TODAY $6B ~4,900 <5% of LTM Q2’23 stores as of Q2’23 market share of system-wide sales ~$390B industry 14 consecutive years of SSS >70% 26% growth excluding 2020 franchised/ 2-year stacked independently-operated SSS YTD Q2’23 Source: Company information; Market sizing reflects 2023E from 2023
Slide 15: A Skilled and Experienced Leadership Team
A SKILLED AND EXPERIENCED LEADERSHIP TEAM Jonathan Gary Danny Scott Fitzpatrick Ferrera Rivera O’Melia President, Chief Financial Chief Operating General Chief Executive Officer Officer Officer Counsel Aligned with Driven values, mission and shareholder Kyle Matt Tracy Gehlan Mo Khalid Michael Macal
Slide 16: Org Design
ORG DESIGN CEO + CFO COO + Segment Presidents Value creation through… Day-to-day operations… • Overall strategy • P&L management • Capital allocation • Leadership development • Portfolio management • Customer focus STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS
Slide 17: Dream Big. Work Hard.
DREAM BIG. WORK HARD. Our Mission Core Values Meritocracy “Simplifying car care… Integrity so our customers can Inclusivity focus on the road ahead” Bold Fun STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 17
Slide 18: Our Customers
OUR CUSTOMERS Commercial Retail 4M+ 30+ 160+ ~$70K 65% 9 yrs Cars Serviced Insurance Customers Fleet Customers Average Household Homeowners Average Annually Income Vehicle Age ~50% ~50% of System-Wide Sales of System-Wide Sales Source: Company information; System-wide sales reflect LTM Q2’23 STRATEG
Slide 19: Strategic Overview
STRATEGIC I. Intro OVERVIEW II. Industry Overview III. Power of the Driven Platform IV. Visibility into Long-term Growth V. Capital Strategy VI. Dream Big 2026 Plan Copyright line goes here
Slide 20: Attractive Fundamentals
ATTRACTIVE FUNDAMENTALS Needs-based Services Highly Fragmented Recession Resilient Significant Whitespace Large & Growing TAM Industry Tailwinds STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 20
Slide 21: Industry Tailwinds
INDUSTRY TAILWINDS Increasing Vehicle Complexity Large, Growing Industry and Aging Car Parc More expensive to repair and maintain $390B +4% U.S. Autocare Industry CAGR 2007-2022 Higher, more profitable tickets 3T +2% Shift to scaled players from Vehicle Miles Traveled CAGR Since 1970s independents ~
Slide 22: Highly Fragmented Industry
HIGHLY FRAGMENTED INDUSTRY 80%+ Independent Shops Source: Company internal estimates STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 22
Slide 23: Why Driven Continues to Gain Market Share
WHY DRIVEN CONTINUES TO GAIN MARKET SHARE Fast, friendly, and convenient ✔ Fair and transparent price ✔ Highly recognized and trusted brands ✔ Sophisticated digital and marketing capabilities with large ad funds ✔ Capital to invest in high ROI opportunities ✔ Adapting / winning in a changing technol
Slide 24: Strategic Overview
STRATEGIC I. Intro OVERVIEW II. Industry Overview III. Power of the Driven Platform IV. Visibility into Long-term Growth V. Capital Strategy VI. Dream Big 2026 Plan Copyright line goes here
Slide 25: Power of the Driven Platform
POWER OF THE DRIVEN PLATFORM Competitive Diversification Strong Cash Flow Advantages Growth + Cash STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 25
Slide 26: Competitive Advantages
Competitive “One-stop Shop” Advantages for Fleet and Commercial Customers Scale and Purchasing Power $90M+ Portfolio of Iconic Brands Annual Ad Funds Strong Unit Level Economics ~1,700 Stores in Pipeline1 Note: Figures reflect company data as of LTM Q2’23 1 Pipeline includes franchisee commitments a
Slide 27: Diversification
Diversification Service most automotive needs Balance of B2B and B2C customers Limited geographic and franchisee risk Multiple ways to grow Strategically expanded TAM in growing segments STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 27
Slide 28: Strong Cash Flow
Strong Cash Flow Complementary Portfolio Mature Growth ✓ Healthy and growing ✓ Various stages of maturity ✓ Franchise or franchise-like ✓ Strong ROI ✓ Strong margins ✓ Embedded growth ✓ High free cash flow STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 28
Slide 29: Mature Brands Free Cash Flow
MATURE BRANDS FREE CASH FLOW ~$500M of free cash flow the past 3 years Future (2024E-2026E) ~$180M ~$170M $180M+ ~$150M Annual Free Cash Flow 2021 2022 2023E Note: Free cash flow reflects brand-level Adj. EBITDA less allocated shared services and maintenance capital expenditures STRATEGIC OVERVIEW O
Slide 30: Driven Platform Results
DRIVEN PLATFORM RESULTS Revenue ($B) Adj. EBITDA ($M) 40% 46% CAGR CAGR ~$2.3 ~$535 $0.6 $119 2019 2023E 2019 2023E STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 30
Slide 31: Strategic Overview
STRATEGIC I. Intro OVERVIEW II. Industry Overview III. Power of the Driven Platform IV. Visibility into Long-term Growth V. Capital Strategy VI. Dream Big 2026 Plan Copyright line goes here
Slide 32: Levers for Growth
LEVERS FOR GROWTH Focus for 2024-2026 Same-Store Sales New Stores M&A STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 32
Slide 33: Take 5 Oil Change Case Study
TAKE 5 OIL CHANGE CASE STUDY STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 33
Slide 34: Our Growth Playbook in Action
TAKE 5 OIL CHANGE CASE STUDY: OUR GROWTH PLAYBOOK IN ACTION At Acquisition (2016) Today (2023E) ~60 Company-operated Stores ~1,000 Total Stores (~35% Franchised) <1M Cars per Year ~12M Cars per Year <$45M of Revenue ~$900M of Revenue <$10M of Adj. EBITDA ~$285M of Adj. EBITDA STRATEGIC OVERVIEW OPER
Slide 35: Why We Win
TAKE 5 OIL CHANGE CASE STUDY: WHY WE WIN National Brand and Scale Focused Service Offering with Efficient Operating Model Fast, Convenient Model takes Share from Independents & Dealers Best-in-class Unit Level Economics Differentiated Model Drives High ROI STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE T
Slide 36: Development
TAKE 5 OIL CHANGE CASE STUDY: DEVELOPMENT Company Estimates Lease w/ Real Estate Development Cost ~$1,050K ~$1,050K Real Estate - ~$700K Total ~$1,050K ~$1,750K Sale Leaseback Proceeds - ~($1,600K) Net Invested Capital ~$1,050K ~$150K Development Timeline: ~12-18 Months Note: Management’s estimate f
Slide 37: Best-in-Class Unit Economics Drive Growth
TAKE 5 OIL CHANGE CASE STUDY: BEST-IN-CLASS UNIT ECONOMICS DRIVE GROWTH Company-operated Stores ~$1,270K ~37% MARGIN ~45% ~$470K Cash-on-cash returns Revenue 4-Wall EBITDA Note: Company-operated financials reflect system-wide average for units open for a full 12 months as of 2022. Cash-on-cash retur
Slide 38: Geographic Footprint
TAKE 5 OIL CHANGE CASE STUDY: GEOGRAPHIC FOOTPRINT Company and Franchise Company-operated Franchise Note: Company-operated represents states with less than 10% franchise store mix; Franchised states represent states with greater than 75% franchise store mix STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE
Slide 39: Historical Growth
TAKE 5 OIL CHANGE CASE STUDY: HISTORICAL GROWTH Same-Store Sales Growth Stores Revenue ($M) Adj. EBITDA ($M) 21% 31% 48% CAGR CAGR CAGR ~$900 ~$285 ~15% ~1,000 8% 312 $177 $27 2017 2023E 2017 2023E 2017 2023E 2017 2023E ~1% Franchised ~35% Franchised STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5
Slide 40: Why Our Franchisees Are Investing for 15 Years
TAKE 5 OIL CHANGE CASE STUDY: WHY OUR FRANCHISEES ARE INVESTING FOR 15 YEARS Why We Win Primary Public Competitor More efficient and flexible store prototype drives lower investment costs Initial Investment Cost $1.2M $1.4M Proven developer base AUV $1.3M $1.4M drives superior site selection and sus
Slide 41: Franchising
TAKE 5 OIL CHANGE CASE STUDY: FRANCHISING Economics to Driven Take 5 Franchisee Profile • Franchise agreement term: 15 years • Attracted by simplicity of model and strong unit level economics and returns • Upfront franchise fee: $35k per store • Experienced multi-unit franchisees • Royalty rate: 7%
Slide 42: Franchisee Base
TAKE 5 OIL CHANGE CASE STUDY: FRANCHISEE BASE Today 280+ 60+ 30+ Open Franchise Stores Total Franchisees Franchisees Who Have Signed a 2nd and/or 3rd Area Development Agreement Future: Existing Commitments 760+ 260+ Franchisee Real Estate 110+ Total Active Area Total Franchisee Commitments Less Open
Slide 43: Future Growth
TAKE 5 OIL CHANGE CASE STUDY: FUTURE GROWTH Store Count Adj. EBITDA ($M) 14% 19% CAGR CAGR ~1,500 ~$480 21% 48% CAGR CAGR ~1,000 ~$285 312 $27 2017 2023E 2026E 2017 2023E 2026E ~1% Franchised ~35% Franchised ~45% Franchised STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FI
Slide 44: Strong Performance Relative to Competition
TAKE 5 OIL CHANGE CASE STUDY: STRONG PERFORMANCE RELATIVE TO COMPETITION Primary Public Competitor 1 FY 2023E Stores ~1,000 1,845 – 1,875 3YR CAGR ~20% 8% % Franchised 35% 53% FY 2023E Same-Store Sales ~15% 8% – 12% Store Pipeline 900+ ~9x ~13x EV / CY 2023E Adj. EBITDA2 (Driven Brands) Note: Pipeli
Slide 45: Levers for Growth
LEVERS FOR GROWTH Focus for 2024-2026 Same-Store Sales New Stores M&A STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 45
Slide 46: Same-Store Sales Drivers
Same-Store Sales Drivers Ticket Traffic Aging Car Parc Brand Awareness Vehicle Complexity Marketing Capabilities Technology Customer Loyalty Oil Premiumization B2B Growth Big 6 Attachment Cross-selling Opportunities STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS
Slide 47: Same-Store Sales Forecast
Same-Store Sales Forecast 5%+ Avg. SSS 2024E – 2026E STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 47
Slide 48: Levers for Growth
LEVERS FOR GROWTH Focus for 2024-2026 Same-Store Sales New Stores M&A STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 48
Slide 49: Consistent Historical Store Growth
CONSISTENT HISTORICAL STORE GROWTH ~5,100 4,805 4,412 4,227 +6% CAGR 2020 2021 2022 2023E Note: Reflects consolidated store count STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 49
Slide 50: Driven Growth Playbook
ATTRACTIVE CATEGORY Driven Growth • Large TAM • Highly fragmented Playbook • Scale matters ATT CA RAC TE GO TIV RY E LEVEL ECONOM IT ICS UN COMPELLING COMPELLING UNIT SIMPLE BUSINESS MODEL LEVEL ECONOMICS • Limited menu • Strong AUVs and margins • Efficient labor model • Low initial investment cost
Slide 51: Leader in Multiple Attractive Segments
LEADER IN MULTIPLE ATTRACTIVE SEGMENTS Oil Change Car Wash Glass #1 Fastest Growing #1 World’s Largest Platform #2 Largest in U.S. ~1,150 ~1,000 517 ~270 0 0 2019 2023E 2019 2023E 2019 2023E Note: Reflects store counts for each brand STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN AD
Slide 52: Robust New Store Pipeline
ROBUST NEW ~70% Franchise ~30% Company-operated STORE PIPELINE Commitments Approved Site Secured Construction 52% 12% 25% 11% 1,700+ Store Pipeline ~36% Site Secured or Better, Primarily Franchised STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 52
Slide 53: New and Ramping Stores
NEW AND RAMPING STORES New Stores ~175 Company 2024E-2026E Openings ~125 Company ~20 Company ~300 Franchise Ramping Stores ~130 Company ~100 Company ~100 Company Stores <3 Years Old ~280 Franchise STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 53
Slide 54: Strategic Overview
STRATEGIC I. Intro OVERVIEW II. Industry Overview III. Power of the Driven Platform IV. Visibility into Long-term Growth V. Capital Strategy VI. Dream Big 2026 Plan Copyright line goes here
Slide 55: 2023E Capital Invested Breakdown
2023E CAPITAL INVESTED BREAKDOWN ~$700M ~($200M) M&A Corporate Rebranding ~$500M Maintenance New Company Stores 2023E Gross Sale Leaseback 2023E Net Capital Invested Proceeds Capital Invested STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 55
Slide 56: Embedded Adj. EBITDA Growth
EMBEDDED ADJ. EBITDA GROWTH ~$30M ~$640M ~$15M ~$60M ~$535M ~$105M of embedded Adj. EBITDA from ramping stores 2023E Oil Change Car Wash Glass Embedded Adj. EBITDA Adj. EBITDA Note: Reflects incremental EBITDA contribution assuming Year 3 estimated performance for ramping stores opened from 2021 to
Slide 57: 2024E Capex Outlook
2024E CAPEX OUTLOOK ~$380M ~$105M ~($40M) Corporate ~$215M ~$150M Maintenance Glass Car Wash Oil Change 2024E Gross Maintenance & Sale Leaseback 2024E Total 2024E Growth Capex Corporate Capex Proceeds Net Capex FactSet Consensus Note: Outlook subject to change based on further business evaluation ST
Slide 58: Excess Free Cash Flow Results in Deleveraging
Excess Free Cash Flow Results in Deleveraging STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 58
Slide 59: Strategic Overview
STRATEGIC I. Intro OVERVIEW II. Industry Overview III. Power of the Driven Platform IV. Visibility into Long-term Growth V. Capital Strategy VI. Dream Big 2026 Plan Copyright line goes here
Slide 60: Dream Big Plan 2026 Key Assumptions
DREAM BIG PLAN 2026 KEY ASSUMPTIONS Only Organic Growth (SSS & New Stores) Limited U.S. Car Wash Growth No M&A STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 60
Slide 61: Dream Big Plan 2026 Adj. EBITDA Bridge
DREAM BIG PLAN 2026 ADJ. EBITDA BRIDGE 2023E – 2026E ~$35M ~$5M ~$850M ~$80M ~$195M ~$535M 2023E Oil Change U.S. Glass Driven Other 2026E Advantage STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 61
Slide 62: Key Drivers: Adj. EBITDA Growth
DREAM BIG PLAN 2026 KEY DRIVERS: ADJ. EBITDA GROWTH Oil Change: ~$195M or ~60% of growth U.S. Glass: ~$80M or ~25% of growth Driven Advantage: ~$35M or ~10% of growth STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 62
Slide 63: Dream Big Plan 2026 Go Forward Principles
DREAM BIG PLAN 2026 GO FORWARD PRINCIPLES Disciplined Growth Strategic Capital Allocation Cash Generation & Deleveraging Portfolio Management STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 63
Slide 64: Break
15 MINUTE BREAK 64 Copyright line goes here
Slide 65: Operational Excellence
OPERATIONAL EXCELLENCE Danny Rivera Chief Operating Officer Copyright line goes here
Slide 66: My Time at Driven
MY TIME AT DRIVEN Experience President Take 5 & Group President, Chief Information Officer President Meineke Maintenance Chief Operating Officer Prior to Driven 2012 2014 2020 2023 STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 66
Slide 67: My Results at Driven
MY RESULTS AT DRIVEN Results 5% 15% CAGR CAGR ~$890K ~$1,300K ~$840K ~$540K 2012 2023E 2020 2023E AUV Over Time Note: Meineke AUV represents system-wide average for units open for a full 12 months during the year. Take 5 AUV represents company-operated system-wide average for units open for a full 1
Slide 68: Structure Unlocks Platform Benefits
STRUCTURE UNLOCKS PLATFORM BENEFITS CEO + CFO COO + Segment Presidents Value creation through… Day-to-day operations/execution… • Overall strategy • P&L management • Capital allocation • Leadership development • Portfolio management • Culture & tone STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 L
Slide 69: Driven Playbook
DRIVEN PLAYBOOK DRIVEN DRIVEN Growth Operating Playbook Playbook STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 69
Slide 70: Operating Playbook
Culture DRIVEN People Operating Brand Positioning Playbook Process Continual Improvement STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 70
Slide 71: Dream Big. Work Hard.
DREAM BIG. WORK HARD. Think/act like an Do what you say owner you’re going to do Recognize success Meritocracy STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 71
Slide 72: Our People
OUR PEOPLE What we believe… What we look for… The right people make Hunger all the difference Identify and reward Work ethic our best people Our best people get the biggest roles and Values over skill set opportunities Consistently grow “Get it done” mentality from within STRATEGIC OVERVIEW OPERATIO
Slide 73: Culture + People
President TAKE 5 OIL CHANGE CULTURE + Vice President Associate Vice President PEOPLE Regional District Manager Leadership 85%+ ABOVE SHOP Certified Training Shop Manager of Shop Managers promoted from within 55%+ Asst Shop Manager Shop Manager of District Managers Lead Tech Certified Tech promoted f
Slide 74: Culture + People
TAKE 5 OIL CHANGE Take 5 High 5 CULTURE + Regular ongoing recognition for attaining PEOPLE results (2,000+ per year) Show them how to Super Tech win, then celebrate Monthly ranking and recognition of our best technicians President’s Club Vacation trip for top ~25 shop managers and their families bas
Slide 75: Results of Great People + Culture
RESULTS OF GREAT PEOPLE 78 67%Customer Net Promoter Repeat Rate + CULTURE Score 10+ ~18% Avg. SSS Years of Positive SSS Growth Net Promoter Score, Customer Repeat Rates, and SSS since 2020 STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 75
Slide 76: Designed to Delight
BRAND POSITIONING DESIGNED TO DELIGHT Internal brand Customer Priorities Bringing it to life positioning • 10-minute oil change • Fast • No appointment Fast • Stay in your car model • No appointment necessary • Convenient hours • Extended hours of operation EXTERNAL BRAND PROMISE • Easy to get to Fr
Slide 77: Operating Model
PROCESS KEEP IT SIMPLE OPERATING MODEL Efficient Simple Only 6 Labor Store Services Model Design COMPETITIVE ADVANTAGES Faster and stay Better Easier to Higher Best-in-class in your car customer recruit margins ROI satisfaction STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAG
Slide 78: Continual Improvement
CONTINUAL IMPROVEMENT DRIVE FRAMEWORK D R I V E Define Success Review Data Implement Solutions Verify Results Evolve STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 78
Slide 79: Trust but Verify
TRUST BUT VERIFY Quarterly action plans Quarterly audits Weekly coaching visits Daily exception reporting STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 79
Slide 80: Driven Operating Playbook: Take 5 Results
Same-Store Sales Growth Stores DRIVEN 21% CAGR OPERATING ~15% ~1,000 PLAYBOOK 8% 312 TAKE 5 RESULTS 2017 2023E 2017 ~1% Franchise 2023E ~35% Franchise Revenue ($M) Adj. EBITDA ($M) 31% 48% CAGR CAGR ~$900 ~$285 $177 $27 2017 2023E 2017 2023E Note: 2017 represents the first year following acquisition
Slide 81: Proven Playbook for Post-Acquisition Growth
PROVEN PLAYBOOK FOR POST-ACQUISITION Realize network benefits GROWTH Acquired 2016 Pursue continuous operational excellence Increase AUV Scale the platform Acquired Increase 2020 Profitability Define the standard operating Acquired platform that differentiates us Enhance 2022 Execution Acquire a pla
Slide 82: Stores Acquired
Stores Acquired M&A Driven Platform Tuck-in Entry M&A Additions COLLISION 2015 230 459 Core competency OIL CHANGE 2016 62 354 Dedicated people, processes and systems U.S. CAR WASH 2020 199 164 Strong track record U.S. GLASS 2022 79 97 TOTAL 570 1,074 STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5
Slide 83: STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY
STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 83
Slide 84: U.S. Car Wash: Reminder on Investment Thesis
U.S. CAR WASH REMINDER ON INVESTMENT THESIS… Large and growing TAM High frequency business Simple operating model Strong unit level economics Recurring revenue model Benefits of scale Cross-selling opportunity STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 84
Slide 85: U.S. Car Wash: First Three Years
U.S. CAR WASH FIRST THREE YEARS… Platform Acquired Since Acquisition Today Future 199 164 60+ ~420 U.S. Stores Stores Stores Stores Acquired Opened 25+ 15+ ~85% Assess. Brands Brands Acquired Take 5 Brand Improve. Integrated Acquired Stores Optimize. Built Greenfield Pipeline Take 5 Brand Conversion
Slide 86: U.S. Car Wash: Rebranding Details
U.S. CAR WASH REBRANDING DETAILS…. 40+ brands to one Take 5 brand One technology platform One operating model Address deferred maintenance STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 86
Slide 87: U.S. Car Wash: Go Forward Plan
U.S. CAR WASH GO FORWARD PLAN… Action Items People Culture / Incentives / Opportunity Marketing Pricing / Promotion / Digital / Cross Branding Membership Recurring / Loyalty / Increased Ticket Operations Staffing / Hours of Operation / NPS Real Estate Density in Core Markets STRATEGIC OVERVIEW OPERA
Slide 88: STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY
STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 88
Slide 89: U.S. Glass: Reminder on Investment Thesis
U.S. GLASS REMINDER ON INVESTMENT THESIS… Large TAM >$5B Highly fragmented space Simple operating model Retail, commercial and insurance customers Technology tailwinds with new calibration requirements Benefits of scale Strong unit level economics Low investment cost of ~$150K per store STRATEGIC OV
Slide 90: U.S. Glass: First Two Years
U.S. GLASS FIRST TWO YEARS… Platform Acquired Since Acquisition Today Future 79 97 60+ ~240 U.S. Stores Stores Stores Stores Acquired Opened 1 11 ~850 GROW! Brand Brands Acquired Mobile Units Started Integration Built Brownfield Pipeline Began AGN Brand Conversion STRATEGIC OVERVIEW OPERATIONAL EXCE
Slide 91: U.S. Glass: Integration Details
U.S. GLASS INTEGRATION DETAILS…. 12 companies, 1,000+ employees New payroll, benefits & variable comp plans Centralized purchasing / vendor contracts New calibration equipment, training and focus Centralized call center / insurance & commercial sales New POS system STRATEGIC OVERVIEW OPERATIONAL EXC
Slide 92: Proven Playbook for Post-Acquisition Growth
PROVEN PLAYBOOK FOR POST-ACQUISITION Realize network benefits GROWTH Acquired 2016 Pursue continuous operational excellence Increase AUV Scale the platform Increase Profitability Define the standard operating Acquired platform that differentiates us Enhance 2022 Execution Acquire a platform of stron
Slide 93: Take 5 Loyalty
TAKE 5 LOYALTY Danny Rivera Chief Operating Officer Copyright line goes here
Slide 94: Yearly Automotive Aftermarket Care
YEARLY AUTOMOTIVE AFTERMARKET CARE 10x+ Car Wash ~2x Oil Change ~ 14 Customer Touchpoints Each Year ~2x Maintenance & Repair Glass Collision Note: Company data STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 94
Slide 95: Geographic Footprint
TAKE 5 OIL CHANGE & CAR WASH GEOGRAPHIC FOOTPRINT Number of Stores Within 10 Miles 262 360 Stores Stores ~26M Vehicles STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 95
Slide 96: Cross-Penetration
TAKE 5 OIL CHANGE & CAR WASH CROSS-PENETRATION <1% % of Customers Have Visited Both Brands STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 96
Slide 97: Email CRM
TAKE 5 OIL CHANGE EMAIL CRM Metric YTD June 2023 YoY Growth Unique Contactable Email Addresses ~7M ~35% Emails Sent ~126M ~275% Emails Opened ~47M ~325% Transactions ~2M ~40% Revenue from Transactions ~$200M ~60% STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 97
Slide 98: Crossbranding Pilot Programs
CROSSBRANDING PILOT PROGRAMS Scope Timing Customers Contacted Redemptions / Conversions ~250 170K+ Store Pilot March & July 2023 ~3M Redemptions ~6% Unique Customers Physical / Digital messaging Contacted to customers about cross- brand shopping Conversion STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE T
Slide 99: Driven Brands' Aspirations
DRIVEN BRANDS’ ASPIRATIONS More… Transactions Loyalty Cross-selling STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 99
Slide 100: Tier-Based Rewards Program
Designed to Incentivize Tier-Based Omnichannel Rewards Transactions Digital Program Loyalty Experience Cross-Branding STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 100
Slide 101: Take 5 Subscriptions
TAKE 5 SUBSCRIPTIONS The capstone of our cross-brand experience Loyalty Playbook Opportunity Existing Program New Program New Program STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 101
Slide 102: Program Overview
PROGRAM OVERVIEW Design Principles Customer Rewards Easy to join Welcome rewards Progression driven by frequency Birthday rewards Discount-centric entry tiers drive trial Level-up rewards Experience-centric premium tiers Special experiences maintain loyalty Highest tier is reserved for subscribers S
Slide 103: Take Rewards
TAKE 5 REWARDS Test in Future Q4 2023 Opportunities STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 103
Slide 104: Dream Big Plan 2026 Go Forward Principles
DREAM BIG PLAN 2026 GO FORWARD PRINCIPLES Execute the Operations Playbook Go Slow to Go Fast Be the Best at the Basics Delight the Customer STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 104
Slide 105: Driven Advantage
DRIVEN ADVANTAGE Kyle Marshall President, Platform Services Copyright line goes here
Slide 106: My Time at Driven
MY TIME AT DRIVEN Experience Joined Driven Brands with President 1-800 Radiator; President Joined 1-800 Radiator 1-800 Radiator Acquisition Founded Spire Supply Platform Services 2002 2015 2017 2020 STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 106
Slide 107: Large & Growing Purchasing Power
LARGE & GROWING PURCHASING POWER Oil Paint Automotive Filters Abrasives Painters Tape 12M 1M 13M 20M 20K Gallons Gallons Units Sheets Miles $2.3B of products & services Note: All data from 2022 STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 107
Slide 108: Expert Procurement Team & Process
EXPERT PROCUREMENT TEAM & PROCESS Team Recent Wins 150+ years of experience Chemical & equipment savings Category experts Strong growth during 2020-2022 Fully aligned incentives Offset inflation costs STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 108
Slide 109: Expanding Opportunity
EXPANDING OPPORTUNITY Driven System-wide Spend 2020 2022 ~55% ~35% ↑ Businesses $1.7B ↑ Stores $2.3B ↑ Categories Unaddressed Unaddressed Categories Categories STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 109
Slide 110: Procurement Produces Growth on Growth
PROCUREMENT PRODUCES GROWTH ON GROWTH Procurement Adjusted EBITDA ($M) Growth Drivers $51 • Core category growth 32% CAGR $37 • New category expansion $20 $24 • Improved franchisee adoption $17 • RFPs and reverse auctions 2018 2019 2020 2021 2022 • Growing store count • Focus on strategic suppliers
Slide 111: Why We Invested in Driven Advantage
WHY WE INVESTED IN DRIVEN ADVANTAGE Customer Opportunities Driven Opportunities • One stop shop • Enhanced spend oversight • Optimized user experience • New vendors & categories • Expanded payment methods • Increased vendor competition • Increased employee controls • Direct-ship model • Enhanced rep
Slide 112: Driven Advantage Today
DRIVEN ADVANTAGE TODAY Majority of company-operated stores onboarded 1,000+ ~64K Active franchisee and affiliate YTD Orders1 customers 65K+ 40+ Vendors onboarded, SKUs growing monthly 1 Represents YTD June 2023 STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 112
Slide 113: Win-Win Opportunity
WIN-WIN OPPORTUNITY Franchisees Company-Operated Stores ~$50K 1,000+ Store Savings Locations • Reduced costs • Reduced costs • One stop shop • Controlled catalog • Greater controls • Increased visibility • Efficiencies • Limited training required $50,000 in savings based on location with an average
Slide 114: Win-Win Opportunity
WIN-WIN OPPORTUNITY Vendor Benefits Driven Benefits 5,000+ ~8-10% Potential Customers Back to Driven • Higher volume • Increased rebates • Data & insights • Franchisor value proposition • Advertising platform • Highly scalable STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE
Slide 115: Methodical Playbook for Adoption and Growth
METHODICAL PLAYBOOK FOR ADOPTION AND GROWTH 2022 2023 2024+ 2026 Capability & Tech Build Test & Rollout to Driven Stores Broader Expansion $35M+ of Incremental • B2B research • Testing • Expand Adj. EBITDA availability • Strategy • User experience & capability optimization • Technology • Test other
Slide 116: Dream Big Plan 2026 Go Forward Priorities
DREAM BIG PLAN 2026 GO FORWARD PRIORITIES Onboard remaining Driven system Expand to third parties Broaden vendor landscape Increase products and services offered Enhance data driven selling capabilities Unlock partner advertising revenue STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVE
Slide 117: Break
15 MINUTE BREAK Copyright line goes here
Slide 118: Financials
FINANCIALS Gary W. Ferrera Chief Financial Officer Copyright line goes here
Slide 119: Topics for Discussion
TOPICS FOR DISCUSSION Introduction Historical Financial Performance Dream Big Plan 2026 Capital Structure Key Takeaways STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 119
Slide 120: CFO Introduction
CFO INTRODUCTION Experience Priorities • 7+ years – US Army Special • Team & Talent Operations and Intelligence • Policies & Procedures • 30+ years – Financial Leadership Experience • Infrastructure including ERP ~3 years in Public Accounting • Forecasting & Long-Range Plan ~9 years in Investment Ba
Slide 121: History of Growth
HISTORY OF GROWTH Revenue ($B) Adj. EBITDA ($M) 36% 42% CAGR CAGR ~$2.3 ~$535 $514 $2.0 $1.5 $362 $0.9 $205 $0.6 $0.5 $119 $94 2018 2019 2020 2021 2022 2023E 2018 2019 2020 2021 2022 2023E STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 121
Slide 122: Strong Performance vs. IPO Expectations
STRONG PERFORMANCE VS. IPO EXPECTATIONS Revenue ($B) Adj. EBITDA ($M) ~$535 $514 ~$2.3 $2.0 $362 $344 $1.5 $1.5 $308 $1.4 $281 $1.3 $0.9 $0.9 $193 $205 2020 2021 2022 2023E 2020 2021 2022 2023E Consensus @ IPO Actual Consensus @ IPO Actual STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRI
Slide 123: 2023 Forecast
2023 FORECAST Revenue ($B) Adj. EBITDA ($M) 20% 10% Growth Growth First Half 1.5 $279 $1.2 $1.0 1.0 $254 0.5 - 1H 2022 1H 2023 1H 2022 1H 2023 13% 4% Growth Growth Full Year ~$2.3 ~$535 $514 $2.0 2022 2023E 2022 2023E STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIA
Slide 124: Dream Big Plan 2026 Go Forward Principles
DREAM BIG PLAN 2026 GO FORWARD PRINCIPLES Disciplined Growth Strategic Capital Allocation Cash Generation & Deleveraging Portfolio Management STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 124
Slide 125: Dream Big Plan 2026
DREAM BIG PLAN 2026 Revenue ($B) Adj. EBITDA ($M) 14% 17% CAGR CAGR ~$850 ~$3.4 ~$2.3 ~$535 2023E 2024E 2025E 2026E 2023E 2024E 2025E 2026E Net Leverage Ratio 4.6x < 3x Combination of Adj. EBITDA growth and cash flow generation LTM Q2 2023 2026E STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYAL
Slide 126: Revenue Growth by Segment
DREAM BIG PLAN 2026 REVENUE GROWTH BY SEGMENT ~5% ~5% ~$3.4B ~30% ~50% ~10% ~$2.3B 2023E Maintenance Car Wash Paint, Collision Platform Corporate & 2026E & Glass Services Other STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 126
Slide 127: Adj. EBITDA Growth by Segment
DREAM BIG PLAN 2026 ADJ. EBITDA GROWTH BY SEGMENT ~5% ~0% ~$850M ~30% ~$35M from ~5% Driven ~60% Advantage less SG&A growth ~$535M 2023E Maintenance Car Wash Paint, Collision Platform Corporate & 2026E & Glass Services Other STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE F
Slide 128: Adj. EBITDA Growth by Lever
DREAM BIG PLAN 2026 ADJ. EBITDA GROWTH BY LEVER ~10% ~$850M ~30% ~25% ~35% ~$535M 2023E Ramping Stores New Stores Mature Stores Other 1 2026E 1 Includes contribution from Platform Services and Driven Advantage partially offset by growth in Corporate selling, general, and administrative expenses STRA
Slide 129: Ramping Stores
RAMPING STORES Represents Represents ~12% of Current Stores of Current Stores ~$30M ~$640M ~$15M ~$60M ~$535M 2023E Oil Change Car Wash Glass Embedded Adj. EBITDA Adj. EBITDA Note: Reflects incremental EBITDA contribution assuming Year 3 estimated performance for ramping stores opened from 2021 to 2
Slide 130: Ramping Stores
RAMPING STORES Ramping Stores Embedded Store Type (<3 Years Old) Adj. EBITDA Description Oil Change ~130 Company ~$60M ~280 Franchised U.S. Glass Generate embedded Adj. EBITDA through ~100 ~$30M 2026E based on ramp Company to year 3 estimated performance for stores opened from U.S. Car Wash 2021 to
Slide 131: ~650 New Stores
~650 NEW STORES Segment Key Drivers Take 5 Oil Change company-operated and Maintenance franchise openings ~650 Paint, Collision U.S. Glass openings store growth & Glass ’24E-’26E ~50% franchised Car Wash Paused STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 131
Slide 132: Mature Stores SSS
MATURE STORES SSS 3YR SSS Segment Historical Key Drivers Average1 Continued momentum in Take 5 Maintenance ~13% (company-operated and franchise) Improvements in glass base 5%+ Paint, Collision ~7% Continued momentum in franchise & Glass businesses Car Wash ~1% Stable base business Avg. SSS Platform
Slide 133: Decreasing Capital Spend
DREAM BIG PLAN 2026 DECREASING CAPITAL SPEND ~$700M ~$500M ~$255M ~$230M ~$215M Dependent on market conditions 2023E 2024E 2025/26E Annually Projected gross capital spend Projected capital spend net of sale leaseback proceeds STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE
Slide 134: Focus on Cash Flow and Deleveraging
FOCUS ON CASH FLOW AND DELEVERAGING LTM Q2 2023 2026E Net Leverage Ratio 4.6x < 3x Combination of Adj. EBITDA growth and cash flow generation STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS 134
Slide 135: Driven Share Buyback Program
DRIVEN SHARE BUYBACK PROGRAM On August 22, 2023, announced a share repurchase authorization of up to $50M Through September 15, we have used just over half of the authorization Entire repurchase authorization impacts net leverage by less than 0.1x STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOY
Slide 136: Attractive Capital Structure
ATTRACTIVE CAPITAL STRUCTURE Diversified capital structure including whole-business securitization, term Debt Maturity by Year loan, and revolving credit facility Low cost of debt (~5% blended) ~80% fixed-rate (@ approx 4.3%) 4.2 year weighted avg. maturity 2023 2024 2025 2026 2027 2028 Securitizati
Slide 137: Key Takeaways
KEY TAKEAWAYS Strong financial foundation Continued Revenue and Adj. EBITDA growth Focused on long-term organic growth Responsible capital allocation Increasing free cash flow Committed to deleveraging STRATEGIC OVERVIEW OPERATIONAL EXCELLENCE TAKE 5 LOYALTY DRIVEN ADVANTAGE FINANCIALS
Slide 138: Live Q&A
LIVE Q&A Jonathan Gary Danny Fitzpatrick Ferrera Rivera President, Chief Financial Chief Operating Chief Executive Officer Officer Officer
Slide 139: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA ($000) 2015 2016 2017 2018 2019 2020 2021 2022 Q2 2023 YTD Net Income (loss) 2,725 (8,918) 37,862 7,062 7,750 (4,216) 9,536 43,173 67,498 Income tax expense 2,866 (4,398) (37,716) 2,805 4,830 11,372 25,356 25,167 31,246 Interest expense, net 21,082 33,
Driven Brands Holdings — Investor Day (September 2023) on 6ix