Slide 1: Better Choice Company Q2 2022 Earnings Presentation
Better Choice Company Q2 2022 Earnings Presentation August 1 1 , 2022
Slide 2: Forward-looking statements disclaimer
This presentation regarding Better Choice Company, Inc. (“the Company”, “Better Choice”, “BTTR”, “we”, “us” or “our”) is for you to familiarize yourself with the Company. This presentation contains information, statements, beliefs and opinions which are forward-looking, and which reflect current est
Slide 3: Purpose Built for Success in the Pet Industry
3 Note: Premium and super premium segments defined as being sold with a retail price greater than $0.20 per ounce. Executive Team Purpose Built for Success in the Pet Industry Significant Online Recurring Revenue Base (Chewy, Amazon and DTC) Rapidly Growing International Sales (~$25M Run-Rate Platfo
Slide 4: Halo is the brand for a new generation of pet parents
4 Halo is the brand for a new generation of pet parents ~$40M YTD Gross Sales + $10.2M Brick & Mortar $14.1M International $15.2M Online (E-Comm + DTC)
Slide 5: Halo Holistic Relaunch on Track for Q3 - Q4 '22
Halo Holistic™ Relaunch on Track for Q3 - Q4 ‘22 ss ADULT.CAT ADULT DOG
Slide 6: Direct-to-Consumer Platform is Fully Integrated
Direct-to-Consumer Platform is Fully Integrated — Halopets.com Launched TruDog Transition Complete ° “ama It's a pet mom ‘ PraG ae j } | thin, i If you shopped TruDog® for that, get this, Meal Bites Toppers BETTER . CHSICE
Slide 7: Adjusted gross margin improvement
7 • Adjusting for one-time Elevate launch costs, adjusted gross margin improved ~300 basis points relative to Q1 ’22 gross margin • Price increases for both Domestic & International effective Apr ’22 (announced January ‘22) • Completed transition of Halo Holistic domestic dry kibble to new co-manufa
Slide 8: Brick & mortar retail rollout: Pet Supplies Plus, Petco, independents
8 Pet Supplies Plus: Dog Aisle • Launch Date: April ‘22 • 600+ Stores • 5’ Shelf Space • “Preferred Brand” Petco: Seasonal Wall • Placement: May - July ‘22 • ~900 Petco Stores • 4’ – 8’ Shelf Space • “Best Choice Brand” Petco: Dog Aisle • Launch Date: July ‘22 • 1 ,000+ Petco Stores • 4’ – 8’ Shelf
Slide 9: Elevate product traction and reviews
14 Weeks Consecutive POS Growth +43% Repeat Within 90 Days 380 Reviews Average Review 4.9 Stars SCAN HERE FOR AR EXPERIENCE Note: As of August 2022
Slide 10: Making Waves on TikTok
10 9MM Views 33k engagements Rapidly gaining new followers Just 6 Weeks In… Making Waves On TikTok 42MM Impressions 45k Link Clicks 22MM Video Views Note: As of August 2022
Slide 11: Total Video Views
11 Total Video Views (YouTube + TikTok, Brand’s Top Video, L1 2M) Note: As of August 2022
Slide 12: International Growth Continues to Exceed Expectations
International Growth Continues to Exceed Expectations Holistic Renovation High Protein Cat Innovation $7.1M Q2 ‘22 Sales +75% vs. Q2 ‘21 $100M ’21–’25 Sales Aggregate Contracted Minimums 12 • On pace to exceed contracted volumes in 2022 • International growth driven by Asian demand for dry cat food
Slide 13: Summary of Q2 '22 Operating Results
Summary of Q2 ’22 Operating Results Q4 2021 Gross Sales: Domestic $97 International $3.9 Total $13.6 Net Sales: Domestic $7.4 International $3.9 Total $11.0 Gross Margin: Domestic $2.0 International $0.8 Total $2.8 64% 36% 100% 28% 20% 25% $12.7 $7.0 $19.7 $10.1 $6.9 $17.0 $3.3 $1.4 $47 65% 35% 100%
Slide 14: Actions Taken in 1H '22 and International Margin Upside in 2H '22
14 1 H ‘22 Actions Taken International Margin Upside in 2H ‘22 Actions Taken in 1 H: • Communicated domestic and international price increase in January ‘22 across majority of SKUs, effective April ‘22 • Completed transition of Halo Holistic domestic dry kibble to new co-manufacturer in Q4 ’21 , rea
Slide 15: Working capital, inventory and cash
15 • Accounts Receivable: We negotiated temporary extended payment terms with Int’l partner as part of Apr ‘22 price increase resulting in higher Q2 A/R balance. • Inventory: Holistic Wet production returned to near-normal levels and we strategically purchased inventory in Q2 to finalize the Elevate
Slide 16: Unaudited Consolidated Statements of Operations
Unaudited Consolidated Statements of Operations Three Months Ended six Months Ended June 30, June 30, — 2022 2021 2022 2021 Net sales $ 16515 $ 10989 $ 33529 $ 21,819 Cost of goods sold 11,788 7,088 24,095 13,644 Gross profit 4727 3901 3,638 3175 Operating expenses: Selling, general and administrati
Slide 17: Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA Three Months Ended June 30, _ Six Months Ended June 30, 2022, 2024 2022 2024 ——. Net (loss) income available to common stockholders 3 (4367) 5 28776 5 (8407) $ 11926 Interest expense, net 106 2,234 182 3,069 Tax expense - = 3 = Deprec
Slide 18: Reconciliation to Adjusted Net Sales and Gross Profit
Reconciliation to Net Sales and Gross Profit to Adjusted Net Sales and Gross Profit Three Months Ended June 30, 2022 ‘As Reported ‘As Adjusted (GAAP) __ Adjustments _ (Non-GAAP) Net sales $ 16515 $ 480 (a) $ 16,995 Cost of goods sold 11,788 = 11,788 Gross profit $ 4,727 $ 480 = $ 5,207 Gross profit
Slide 19: The World's Best Food For The World's Best Kids
The World’s Best Food For The World’s Best Kids
Slide 20: Thank You!
Better Choice Company The Most Innovative Pet Food Company In The WorldThank You!