Superior Group Of Companies, Inc. · NASDAQ:SGC
Superior Group Of Companies — Investor Presentation (November 2022)
37 slides from Superior Group Of Companies's investor presentation, Nov 7, 2022
Slide 1: Investor Presentation November 7, 2022
Slide 2: Safe-Harbor Statement
<='© SAFE-HARBOR STATEMENT meaning ofthe peseiw oe Securities Act of 1933, the Secuttes Exchange Act of 1934, the Private Secutties Litigation Refor {gtimatesand assumptions Words such "may" “wl.” shoul "cul expec” “atcpate “estate “bse *intend.” project," *potential", “plan”, "tink", or “outlook, o
Slide 3: SGC: 3 Diversified Businesses
¢SGC 3 DIVERSIFIED BUSINESSES HEALTHCARE ‘APPAREL Healtheare apparel provider for over 100 years, including etal scrubs brands, industrial laundry scrubs, lab coats, patient apparel and specialty produets sold through all channels BRANDED PRODUCTS The fastest growing and one of the top ten branded p
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS * Three diversified business platforms with a combined TAM of over $1308 s ripe for consolidati
Slide 5: Successful Business Model with Diversified Revenue Mix
&SGC 6successrut BUSINESS MODEL WITH DIVERSIFIED REVENUE MIX REVENUE MIX: THEN AND NOW | EBITDA BY DIVISION 2016 2021 2021 $201M 16.3% CAGR®
Slide 6: Healthcare Apparel Through Well-Known Brands
(© HEALTHCARE APPAREL THROUGH WELL-KNOWN = BRANDS WonderWink’ SUT THRIVE RENEW moto AERO PRO wr2s WONDERFLEX _LABCOATS avers WONDERWORK ORIGINS Fashron Seal Healthcare WORKLON INDY FASHIONBLEND FASHIONPOPLIN. SIMPLYSOFT
Slide 7: Healthcare Apparel Growth Opportunities
HEALTHCARE APPAREL GROWTH OPPORTUNITIES 2021 EBITDA RETAIL, OMNICHANNEL, margin of E-COMMERCE RETAILERS, 5 YEAR REVENUE SPECIALTY, INTERNATIONAL, Cac DISTRIBUTORS, LAUNDRIES TAM in the US Kindthread | STANPARD BARCO. MARKET — Pubic(©2C) | private equity | Private Equity | Priv SHARE 420M 2021 coat e
Slide 8: Multiple Distribution Channels for Healthcare Apparel
| ‘Atwoops $4 Unitex Sinths, © TARGET. Fleet FFarm SANMAR Zapposé BARNES NOBLE BASLE MULTIPLE DISTRIBUTION CHANNELS | ‘29: <enel partners inthe Us, FOR HEALTHCARE APPAREL Canada and in more than 31 countries around the world SERVING HEALTHCARE PROFESSIONALS THROUGH INDUSTRY LEADING PARTNERS amazon S
Slide 9: Branded Products
Slide 10: Branded Products
BRANDED PRODUCTS 2021 EBITDA margin of : '5 YEAR REVENUE ieee $25 Rs} B yo Snore to work TAM in the US S customized branded ~1 le 3% products SGC Market Share saa? | ta | Geiger | winnie warmer 25,000+ ~$340.4M We are the 9th gest of more COMPETITIVE LANDSCAPE | than 25,000 branded products rons | P
Slide 11: Serving Members of the Fortune 500 with Branded Products
e - SERVING MEMBERS OF THE FORTUNE 500 WITH BRANDED PRODUCTS omega / # instacart jetBlue
Slide 12: Business Process Outsourcing
USINESS PROCESS
Slide 13: Contact Centers
CONTACT CENTERS Large and growing market Attractive EBITDA Margin oon ae oc, s TAM in the US NET REVENUE RETENTION, =] even oe ol Seas eae Sanwa COMPETITIVE °o im | LANDSCAPE comtemen “Rye 54% 18%
Slide 14: Providing Call Center Services to Multiple Customer Channels
PROVIDING CALL CENTER SERVICES TO MULTIPLE CUSTOMER CHANNELS WE SERVICE THE WIDELY UNDERSERVED SMALLER CLIENT MARKET rth sa VISTRA Elevate eneroy E— harbor sunnova’ ADVANCED i ee BRILLIANT EARTH" CHOISES? ‘Western Dental” & Orthodontics
Slide 15: Compelling Future Growth Opportunities
COMPELLING FUTURE GROWTH OPPORTUNITIES ORGANIC AND EXTERNAL INCREASING MARKET SHARE EACH BUSINESS SEGMENT HAS SIGNIFIC GROWTH OPPORTUNITY WITHIN THE S TARGETING r LEVERAGING PRIOR ave MARGINS TECHNOLOGY INVESTMENTS ales S ROBOTICS, SOFTWARE PLATFORMS AND OC r EXPANSIONS COMPLETED THROUGH 2022 WILL I
Slide 16: Leveraging Technology to Drive Efficiency
LEVERAGING TECHNOLOGY TO DRIVE EFFICIENCY INVESTMENT IN TECHNOLOGY Robotics - Dallas robotic systems implementation completed Q1 2021 S17M*+ investment in Arkansas warehouse robotics (live May 2022) 400+ Upgraded E-commerce sites for our customers New technology in forecasting New Al payables techno
Slide 17: Other Interesting Points
OTHER INTERESTING POINTS ‘Successfully hired in 2022 key executives in Finance, Divisional Leadership, Supply Chain ‘and Distribution to support future growth Poland - ability to ship factory direct to Poland 3PL, and then direct from Poland to EU Active role in manufacturing with redundant manufact
Slide 18: Financial Highlights
FINANCIAL HIGHLIGHTS ¢SGC
Slide 19: Delivered Sustained Annualized Growth of 18.2% Since 2012
DELIVERED SUSTAINED ANNUALIZED GROWTH OF 18.2% SINCE 2012 WITH 12.5% ORGANIC CAGR AND 5.7% FROM ACQUISITIONS seam $5970 500M ‘$400m 3767 steam s300M 7 seszam $2068 962M s200M 7 stoom 2012 ©2013-2014 20152018 = 2017-2018. 201920202021
Slide 20: Branded Products, Healthcare Apparel and Contact Centers Sales
BRANDED PRODUCTS, HEALTHCARE APPAREL AND CONTACT CENTERSALES SGC Significant Growth in Core Products Fy 2020 Fy 200 Fy 2020 Fy 2021 2020 Fy2020 Fy 2021 S8820Total $3405 Total S197 Total $139.3 Total S92 Total $57.2 Total $5257 Total $837.0 Total
Slide 21: Delivering Consistent Revenue Growth
DELIVERING CONSISTENT SGC REVENUE GROWTH acon tren NET SALES (In Millions) $600 $500 $400 $300 $200 $100 so FY 2016 © FY2017—FY2018 «= FY.2019 «= FY2020 = FY 2021 NINE MONTHS NINE MONTHS ENDED. ‘ENDED SEPT 30, 2021 SEPT. 30, 2022
Slide 22: Steady Increase in Profitability
STEADY INCREASE ¢SGC IN PROFITABILITY sa Adjusted EBITDA (In Millions) FY2016 = FY2017. «= FY2018 «= FY.2019 «= FY.2020— FY 2021 NINE MONTHS NINE MONTHS ‘ENDED. ENDED. ‘Serr 30,2021 sePT. 30,2022 EBITDA (In Millions) EBITDA (% of Sales)
Slide 23: Improved Shareholder Returns
IMPROVED SHAREHOLDER RETURNS ¢SGC Adjusted Diluted Earnings Per Share $2.80 $2.40 $2.00 $1.60 $1.20 x19%, CAGR, $0.80 $0.40 so FY2016 © FY2017, «= FY2018 «= FY.2019 «= FY.2020 = FY 2021 NINE MONTHS. NAME MONTHS sepT. 30, 2021 sep1. 30, 2022
Slide 24: Leverage Ratio
LEVERAGE RATIO ¢SGC Debt to EBITDA Rati 3.0X ' " il Ba all As of As of As of As of As of As of 12/31/16 12/3017 12/31/18 12/31/19 12/31/20 12/31/21 Ee] 09/30/22
Slide 25: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY Aligned to S CAPITAL ALLOCATION PRIORITIES PEE INVESTMENTS TO SUPPORT ORGANIC EBITDA GROWTH * Sales growth via market share expansion * Expand low-cost production capabilities * Margin growth via production effectiveness * Operating cost efficiencies via centralized servi
Slide 26: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE ¢& DIVERSITY & INCLUSION coMpany HEADcoUNT MpLovee TENURE Seance fence 202 = ae a és agie = 325% aoe 6359 ————— topat us [BOARD OF DIRECTORS DIVERSITY Genser r F Brendon? - pe 2021 TOTAL CHARITABLE CONTRIBUTIONS cc 80+ ates. 000+ 4) Who zg eel 82
Slide 27: Employee Physical and Emotional Wellbeing
PHYSICAL + Werk From Home pay fee walved WN + Actively encouraged employees and dependents to get vaccinated ‘+ Covered cost of vaccine for all employees and dependents + Offered wellness incentive cash gift cards with proof of vaccination ‘+ Provided more than 1,000 COVID-19 test kits to employees
Slide 28: Investment Highlights
INVESTMENT HIGHLIGHTS * Three diversified business platforms with a combined TAM of over $1308 s ripe for consolidati
Slide 29: Over 100 Years of Excellence
OVER 100 YEARS OF EXCELLENCE We leverage world-class design, manufacturing and global distribution to create extraordinary brand experiences through custom uniform programs, engaging promotional merchandise and innovative BPO solutions.
Slide 30: Appendix
aE M/A APPENDIX ¢SGc
Slide 31: Non-GAAP Financial Measures - SGC
NON-GAAP FINANCIAL MEASURES - SGC REPORTED TO ADJUSTED RESULTS on DNINEMONTHS ENDED |] NINE MONTHS ENDED SEPT. 30, 2024 SEPT. 30, 2022 Net Income (Loss) $29,440 $25,081, | ($34,168) Adjustment for ems: Goodwill Impairment Charge s s $45,918, Intangible Assets impairment Charge s $ $5,581 Pension Pla
Slide 32: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION ¢SGC Cen FY 2016 Fy2018 | Fy2019 | FY2020 a EPr, 30,2023] ser. 20, 2022 Net Income (Loss) sig6aa | 515022 | $16975 | $12,086 $41,026 | $27,918 $25,051 ($34,164) esa) $088 $802 $3,207 $4,399 $2,003 $1,220 $925 $2,676 Income Tox pated aera $5,260 $9,760 $4,420 $3,220 | $10,430
Slide 33: Segment P&L - First Quarter
SEGMENT P&L - FIRST QUARTER ¢SGC : Tne oer a SE BIR) cox: of soode sta sia3s3 s233 $ $9301 Eg Cress marain sizais si0gsi s 19781 FE seting and administrative expanses 510.087 ‘soar ss28 2214 EB Other periodic pension cost s- s- $28 528 EG terest expense $18 s- $226 $299 Fad core (os) bore taxes on i
Slide 34: Segment P&L - Second Quarter
SEGMENT P&L —- SECOND QUARTER ¢SGC z sw7938 a re $99,600 4 3 Hes 24 sasra $45,969 5S 24458 2g $ seas 38 sae ‘20 $s ssa FEEM income fos before taxes on income 5688) 320988) FRR sro expense fe EEE) Svvrecavon ond smorzatin 4 suo > eee os s24ase 2 ed : sss ‘ajestedEBTOA 5348) stats ‘howsands fo ey Net
Slide 35: Segment P&L - Third Quarter
SEGMENT P&L - THIRD QUARTER ¢SGC z rogues ol "mination a co 3 Net Sales S607 0.057 $2363 68 $e 138703, RIES cont of goods sol 0400 i807 9.453 (5596 s e586 FM oss marin 526.09 si10 supra (sera s- sscs7 ESM Scio and sdminstrative expenses $2257 sos 9.520 soa 279 woes BQ cooditimuirmont charge so $- s-
Slide 36: Segment P&L - Fourth Quarter
SEGMENT P&L —- FOURTH QUARTER ¢SGC Branded i ae “ ect sm | suse seem | sia 5 | siems eae sow | saw | se os) s | smu Chem sam | sinoo | sor | stom s | stam eins od sae epee | Ls] aT) | saa eat | aa] | ems ier pid pen os | os. s s ss oss Pension plan termination charge | s- s. $876 $876 si so | oss ‘
Slide 37: For Additional Information
For Additional Information Attendees and other viewers of this presentation are advised to read all reports and other filings made by the Company with the Securities and Exchange Commission under the Securities Act of 1993 and the Securities Exchange Act of 1934. Copies of these filings may be obtai
Superior Group of Companies — Investor Presentation (November 2022) on 6ix