Slide 1: Q4 2021 and Year-End Earnings Presentation
0 0 Q4 2021 and Year-End EARNINGS PRESENTATION March 10, 2022
Slide 2: Disclaimers
1 1 Disclaimers Forward Looking Statements: This presentation contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management. Although the Company believes that its plans, intentions, and
Slide 3: Key Highlights
2 2 Key Highlights Delivered full year 2021 net sales of $268M and Adjusted EBITDA of $102M, in line with guidance range of $267M to $269M on net sales and $97M to $102M on Adjusted EBITDA Premium card business is driving growth by strong sales execution, deep customer relationships, and benefit fro
Slide 4: CompoSecure 2021 Performance Highlights
3 3 CompoSecure 2021 Performance Highlights 1 Revenue-weighted average client tenure 2 Adjusted EBITDA is a non-GAAP financial metric. For a reconciliation of Adjusted EBITDA to the most-comparable GAAP metric, please see the Appendix to this presentation 22mm Metal Card Sales Volume 100+ Card Progr
Slide 5: CompoSecure Competitive Strengths
4 4 CompoSecure Competitive Strengths • First metal credit card (2003) • First metal “tap-to-pay” credit card (2016) • Arculus launch in 2021 • Pipeline of new tech including biometric security, dynamic CVV, keychain cards, LED 100+ Card Programs We Enable Clients to Grow Customer Acquisition, Spend
Slide 6: Convergence of Three Massive Market Opportunities
5 5 Convergence of Three Massive Market Opportunities 1 Edgar, Dunn & Company. 2019 Metal Cards Market Sizing and Consumer Research Report. “Total Addressable Market” is defined here as the estimated subset of payment cards issued globally in 2021 for which there is demand and viability for metal pa
Slide 7: Payment Card Business Benefiting as Credit Card Industry Recovers
6 6 The Payment Card business is benefiting as the Credit Card Industry has shown Strong Signs of Recovery from Pandemic Levels 1Federal Reserve Bank of New York via https://www.wsj.com/articles/credit-card-applications-hit-pandemic-high-11638354781 2 Mintel Comperemedia via https://www.wsj.com/arti
Slide 8: Arculus Product Portfolio
7 7 Arculus Product Portfolio 5.2 Cards Manufactured in 20203 8.0 Cards Manufactured in 20254 Variety of Key Capabilities are Available to Meet Customer Demand Payment Card Payment Card + Digital Authentication1 Crypto Cold Storage Crypto Cold Storage + Digital Authentication1 Payment Card + Crypto
Slide 9: Arculus First Half 2022 Priorities
8 8 Arculus First Half 2022 Priorities Customer/Market Need Arculus Solution Non-Fungible Tokens (NFTs) Cryptocurrency/ Digital Asset Support Access to DeFi Ecosystem 1 2 3 WalletConnect Integration Leading Wallets (>100) Any Dapp (Hundreds) Chain Agnostic Wallet Integration w/Send, Receive, Store,
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Slide 11: Q4 2021 Results
10 10 Q4 2021 Results Net Sales Gross Margin Adjusted EBITDA1 Adjusted EBITDA Margin1 Q4 ‘21 Q4 ‘20 % Change Commentary $75mm 52% $21mm 28% $54mm 48% $20mm 37% 40% 420 bps 5% (935 bps) Process efficiencies, material cost improvements and product mix Including ~$13M investment to launch Arculus Platf
Slide 12: Full Year 2021 Results
11 11 Full Year 2021 Results Net Sales Gross Margin 2021 2020 % Change Commentary $268mm 54% $102mm 38% $261mm 51% $115mm 44% 3% 316 bps (11%) (610 bps) Growth from existing customers & new FinTechs Process efficiencies, material cost improvements and product mix 1 Adjusted EBITDA is a non-GAAP fina
Slide 13: International Net Sales Trend
12 12 % International Net Sales Trend $54 $64 $63 $66 $75 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 In millions $214 $219 $47 $49 FY '20 FY '21 Domestic International $261 $268 18% 18%
Slide 14: 2022 Guidance
13 13 2022 Guidance Net Sales Adjusted EBITDA1 2022E 2021 % Change $268mm $102mm $336mm - $376mm $100mm - $110mm 25% - 40% (2%) - 7% 1 Adjusted EBITDA is a non-GAAP financial metric. For a reconciliation of Adjusted EBITDA to the most-comparable GAAP metric, please see the Appendix to this presentat
Slide 15: Strategic Priorities
14 14 Strategic Priorities A Category Leader of Next-Gen Payment Technology, Security, and Cryptocurrency Solutions Drive premium payment card sales through continued domestic growth, international expansion, and FinTechs Deliver innovative new card constructs and leverage our scale and existing rel
Slide 16: Investor Relations Contact
15 15 Investor Relations Contact ir.composecure.com Marc Griffin (ICR) 646-277-1290 CompoSecure-IR@icrinc.com
Slide 17: @Compdecure
@Compdecure security § innovation durability
Slide 18: Summary Equity Capitalization Table
17 17 CompoSecure, Inc. (Nasdaq: CMPO) Summary Equity Capitalization Table (with net exercise model) As of December 31, 2021 Holders # of Shares Issued & Outstanding # of Shares Issued & Outstanding Public Shareholders 4.6M 4.6M PIPE Investors 4.5M 4.5M Roman Sponsor 5.8M 5.8M Historic CompoSecure O
Slide 19: Statements of Operations (Unaudited)
18 18 Statements of Operations (Unaudited) Source: Company financials Note: Audits completed to PCAOB standards. Financial position has been derived from CompoSecure’s consolidated financial statements for the years ended December 31, 2019, 2020 and 2021 respectively. ($mm) 2019A 2020A 2021A Revenue
Slide 20: Balance Sheets (Unaudited)
19 19 Balance Sheets (Unaudited) Source: Company financials Note: Audits completed to PCAOB standards. Financial position has been derived from CompoSecure’s consolidated financial statements for the years ended December 31, 2019, 2020 and 2021 respectively. ($mm) 2019A 2020A 2021A Assets Current As
Slide 21: Statements of Cash Flows (Unaudited)
20 20 Statements of Cash Flows (Unaudited) Source: Company financials Note: Audits completed to PCAOB standards. Financial position has been derived from CompoSecure’s consolidated financial statements for the years ended December 31, 2019, 2020 and 2021 respectively. ($mm) 2019A 2020A 2021A Cash fl
Slide 22: Non-GAAP Adjusted EBITDA Reconciliation
21 21 Source: Company financials Non-GAAP Adjusted EBITDA Reconciliation 1 ISO Litigation Costs: Adds back nonrecurring expenses associated with the ISO litigation 2 Non-Cash Stock Option Expense: Non-cash stock option expenses related to the executive incentive plan 3 Nonrecurring Transaction Costs
Slide 23: Non-GAAP Adjusted EBITDA Reconciliation
22 22 Source: Company financials Non-GAAP Adjusted EBITDA Reconciliation 1 Non-Cash Stock Option Expense: Non-cash stock option expenses related to the executive incentive plan 2 Non-Cash Warrants and Earnouts Adjustments: Related to changes in fair value of liabilities at December 31, 2021 for warr