Superior Group Of Companies, Inc. · NASDAQ:SGC
Superior Group Of Companies — Investor Presentation (August 2022)
34 slides from Superior Group Of Companies's investor presentation, Aug 8, 2022
Slide 1: Investor Presentation
{SGC OS Investor PRESENTATION
Slide 2: Safe-Harbor Statement
<o5\¢ © SAFE-HARBOR STATEMENT : nearing of the s 41933, the gi 1934, 1995 and all thtimatesand assumptions Words suchas"nay “wil “shou “could “expect “antipate esate. “oer,” ere oe “plan”, “think”, Bosiar wisinauinecce falar vane ee wo statements differ ‘materially from those bythe foward oking sate
Slide 3: Diversified Businesses
SGC 3 pversiriep Businesses | °"°""2°°"! HEALTHCARE APPAREL BRANDED PRODUCTS Healthcare apparel provider Wee are the fastest Nearshore contact center for over 100 years growing and one ofthe provider serving small and top ton largest branded mid-sized businesses in Healthcare apparel, including prod
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Slide 5: Successful Business Model with Diversified Revenue Mix
¢SGC SUCCESSFUL BUSINESS MODEL WITH DIVERSIFIED REVENUE MIX 2016 2021 2021 $139.3M $60.8M $201M 16.3% yet 15.1% CAGR® CAGR®
Slide 6: Healthcare Apparel
¢SGC HEALTHCARE APPAREL WonderWink SLATE ‘THRIVE RENEW AERO PRO wis WONDERFLEX _LABCOATS WONDERWORK ORIGINS Fashion Seal Healthcare WORKLON INDY FASHIONBLEND FASHIONPOPLIN SIMPLYSOFT
Slide 7: Healthcare Apparel
HEALTHCARE APPAREL 2021 EBITDA —_RETAIL, OMNICHANNEL, margin of E-COMMERCE RETAILERS, % 5 YEAR REVENUE ‘SPECIALTY, INTERNATIONAL, chen DisTRIBUTORS, e 7 CAUNDRIES TAM in the US i ih ~6.6% 2M caregivers wear our brands st Market Share every day to work BARCO, | “a OFIGS MARKET — Pubict©20) | private
Slide 8: Multiple Distribution Channels for Healthcare Apparel
esee MULTIPLE DISTRIBUTION CHANNELS | {2"9¢s' channel parenersin the US FOR HEALTHCARE APPAREL anada and in more than 31 countries around the world, including: SERVING HEALTHCARE PROFESSIONALS THROUGH INDUSTRY LEADING PARTNERS ‘Atwoops UniFirst Woo! AALSCO. amazon $$ Unitex SANMAR Banner Health. SCT
Slide 9: Branded Products
BRANDED PRODUCTS
Slide 10: Branded Products
BRANDED PRODUCTS 2021 EBITDA margin 0 N 5 YEAR REVENUE Soon Seay q uniforms to work : ceryday TAM in the US getomzed 9% eZ rande: ~1.3 (s) products SGCMarket Share ‘ gage [owns more 25 000+ ~$340.4M | We are the 9th largest of more than 25,000 branded products «| @affinty | BARCO. distributors in th
Slide 11: Serving the Fortune with Branded Products
“2 SERVING THE FORTUNE 500 WITH ’~ BRANDED PRODUCTS eee AtweEE | UberEats | AMARON aan Mis | Gaver) ae = | Publix man spirit hulu ee we | jetBlue ety | | i | i | DIAGEO | “SdooRDASH OUNKIN' | i | # instacart roger
Slide 12: Nearshore Company
NEARSHORE COMPANY ‘OF THE YEAR BEST PLACE TO WORK. BEST BUSINESS PROCESS ‘OUTSOURCING PROVIDER ad EST GLOBALCALLceNTER ‘no susiness process ‘Sursouncinc povioer BELIZE (3)
Slide 13: Contact Centers
CONTACT CENTERS Large and growing market Attractive EBITDA Margin goat) '5 YEAR REVENUE NET REVENUE CAGR. RETENTION TaRoUaH TAM in the US ~0.1% a SGC Market Share COMPETITIVE LANDSCAPE Expensive and tght
Slide 14: Providing Call Center Services to Multiple Customers Channels
PROVIDING CALL CENTER SERVICES TO MULTIPLE CUSTOMERS CHANNELS WE SERVICE THE WIDELY UNDERSERVED SMALLER CLIENT MARKET Aon VICTPRA Elevate — E— harbor sunnova’ BRILLIANT EARTH" ADVANCED ED Daina Soe \Western Dental” & Orthodontics
Slide 15: Overview
OVERVIEW ¢SGc
Slide 16: Delivered Sustained Annualized Growth of 18.2% Since 2012
o ¢SGC DELIVERED SUSTAINED ANNUALIZED GROWTH OF 18.2% SINCE 2012 WITH 12.5% ORGANIC CAGR AND 5.7% FROM ACQUISITIONS 500m saoom 200m 200m ‘s100M 2012 2013-2014 20152018 S1515Tord $1962 Tor 252616 201 2018 = 20192020202 sims te $2103 Toul al $U48 Total $246.8Toral $9767 Tol $5267 Total $5370 Tot Ml Br
Slide 17: Compelling Future Growth Opportunities
COMPELLING FUTURE GROWTH OPPORTUNITIES ORGANIC AND EXTERNAL oom LEVERAGING PRIOR MARGINS TECHNOLOGY INVESTMENTS ROBOTICS, SOFTWARE PLATFORMS AND DC. EXPANSIONS COMPLETED THROUGH 2022 WILL SUPPORT SGC’S FUTURE GROWTH PLANS.
Slide 18: Leveraging Technology to Drive Efficiency
LEVERAGING TECHNOLOGY TO DRIVE EFFICIENCY INVESTMENT IN TECHNOLOGY * Robotics - Dallas robotic systems implementation completed Q1 2021 $17M+ investment in Arkansas warehouse robotics (ive May 2022) 400+ Upgraded E-commerce sites for our customer New technology in forecasting New Al payables technol
Slide 19: Successfully hired key executives in 2022
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 manufacturing strategy Significant
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS ¢SGc
Slide 21: Branded Products, Healthcare Apparel and Contact Center Sales
BRANDED PRODUCTS, HEALTHCARE APPAREL AND CONTACT CENTER SALES ¢SGC Full Year Comparisons Between 2020 and 2021 aimiieiaiaiaaaal FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 Fy 2021 Fy 2020 Fy 2021 $3320 Total $3405 Total $157.5 Total $139.3 Total $31.2 Total $57.2 Total $9267 Total $537.0 Total
Slide 22: Delivering Consistent Revenue Growth
DELIVERING CONSISTENT ¢SGC REVENUE GROWTH pa 4 NET SALES (In Millions) $600 $500 $400 $300 $200 $100 $0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 SIXMONTHS SIX MONTHS ENDED. ENDED. JUNE 30,2021 JUNE 30, 2022
Slide 23: Steady Increase in Profitability
STEADY INCREASE SGC IN PROFITABILITY Pd Adjusted EBITDA (In Millions) $70 $60 $50 $40 $30 $20 $10 $0 FY2016 © FY2017, «= FY2018 «= FY.2019 «= FY 2020. ~— FY 2021 SIKMONTHS SIX MONTHS ‘ENDED :NDED. JUNE 30, 2021 JUNE 30, 2022 EBITDA (In Millions) EBITDA (% of Sales)
Slide 24: Improved Shareholder Returns
IMPROVED SHAREHOLDER RETURNS ¢SGC Adjusted Diluted Earnings Per Share $2.80 $2.40 $2.00 $1.60 $1.20 $0.80 $0.40 $0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 sucMONTHS IK MONTHS June, 2021 JUNE 30,2022
Slide 25: Debt Reduction
DEBT REDUCTION ¢SGC Debt to EBITDA R: * 4.0X 3.3X 3.0X 2.0X 1.5X 1.5X 1x ul Tax TM. As of Asof As of Asof Asof As of 1™ 12/31/16 12/31/17 12/31/18 12/3119 12/31/20 12/31/21 06/30/21 06/30/22
Slide 26: Capital Allocation Strategy
AL ALLOCATION STRATEGY CAPITAL ALLOCATION PRIORITIES DRIVERS INVESTMENTS TO SUPPORT ORGANIC GROWTH *+ Expand low-cost production capabilities DIVIDEND © Paid a dividend since 1977 DEBT REDUCTION STRATEGIC ACQUISITIONS EBITDA * Sales growth via market share expansion * Margin growth via production ef
Slide 27: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY PHYSICAL Work From Home ling PPE Elevated Sanitation & Safe EMOTIONAL ‘Additional PTO, including rollover to 2022 PTO extension to support DC/warehouse workers Measures Access to free sessions with ‘mental health professionals Q ‘= Actively encouraged employees and de
Slide 28: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY ¢SGC COMPANY HEADCOUNT EMPLOYEE TENURE = Ge ieese nbeaseoun 201 en cs CEE ni “ a aus seas 325% oo ea aves aa c1osaL us BOARD OF DIRECTORS oIveRSTY oe woncrorce Workronce Gender Gender rout — 4 — Seadowe Seo, : wut ths ox mony ¢—$—*$— 5 12021 TOTAL CHARITABLE CONTRIBUT
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Slide 30: Over 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 31: Appendix
\\ APPENDIX
Slide 32: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES -— ¢SGC REPORTED TO ADJUSTED RESULTS a Net Income (Loss) $29,440 $16,855 | ($21,445) Adjustment for Items: Goodwill impairment Charge = $2 $24,458 Intangible Assets Impairment Charge s- s $5,581 Pension Plan Termination Charge $7,821 $6,945 $2 ‘Taximpact of Adjustment (82
Slide 33: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $in eh ev2o1s | Fy2017 evaore | Fr 209 Net Income (Loss) $14,638 $15,022 $16,975 $12,066 pt $688 $802 $3,207 $4,399 Sapanse broneti $5,260 $9,760 $4,420 ae $4,935 $5,653 $7,906 $8,272 $ $ $ s= Goodwil & es 7 . ‘Tradename Impairment EBITDA $25,521 $31,237 FY 2020 $41,026 $2,00
Slide 34: 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
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