Spar Group, Inc. · NASDAQ:SGRP
Spar — Investor Presentation (June 2022)
19 slides from Spar's investor presentation, Jun 21, 2022
Slide 1: Unlocking Our Potential: Expanding Our Services to Capture Market Share
5. e . UNLOCKING Expanding Our Services to OUR POTENTIAL Capture Market Share and Drive Profitable Growth Mike Matacunas Chief Executive Officer June 2022
Slide 2: SPAR disclaimer
SPAR disclaimer ‘Thi Presentation contains Yorwara:-looking statements" within the cafe arbor erovalonz ofthe Private Securities Ligation Reform Act of 895, made by. oF recpecting SPAR Group Ine. ane kz upaalares tne Company’) "Fotward-ooking tatements are fines in Section 27a tne Secures Act of TOS
Slide 3: Mike Matacunas, President & CEO
SPAR Mike Matacunas President & CEO Joined February 22,2021 + Prior Fortune 150 c-suite executive with 30+ years in retail, consumer goods, technology and services + Proven, successful track record turning around companies, growing businesses and driving shareholder value + Rebuilt SPAR executive le
Slide 4: Investment Thesis
Investment Thesis Resilient financial results, global reach, international “blue chip” client base Expanding services and innovating to gain market share, capture spend and increase profitability Stepping up investments in technology and cloud data capture to differentiate the business Established $
Slide 5: Our Business is Global, Diversified and Growing
Our Business is Global, Diversified and Growing F21 Net Revenues $255.7m Where We Sell NNASDAO: SGRP. a Le FYZINet Revenues $2557m Cash $135m ‘Accounts Receivable $542m Debt-short long term STL7m, As of Decerrber 31,2021 Bolanee Sheetis Consolidoed Z Founded: 1967 (ecco) Publicly traded company 1999
Slide 6: Consolidated Adjusted EBITDA and Attributable Adjusted Net Income
Consolidated Adjusted EBITDA Attributable Adjusted* Net Income (sm (SM) ns - oil + saute B04 and eta tome minced te opens (Sten forte an 21 2o1Smpoted pe for anode 2021 UNLOCKING OUR POTENTIAL Net Cash and Accounts Receivable (sm) 4 8021 201
Slide 7: Revenue from Fortune clients
Revenue from Fortune 500 (sample) 93% of US. Revenue 88% of Brazil Revenue 67% of Mexico Revenue 73% of Japan Revenue Walmart acai (Dowancenenar “Nn BeDBATHS, «= BEYOND @TARGET. ~ MckESSON = PETSMART onset FOSTER GRANT. i TeELus er nw ® FOSSIL — Gargill RedBull ; ou ons motorola a @ TD Cibany iw Som
Slide 8: Expanding Services to Gain Market Share
Expanding Services to Gain Market Share Resets and Marketing & Creative Micro-Fulfillment Digital Shelf Remodels Services Services Management as ens titoa + Omni-Channel store + Fixture and display 3f purchase (POP) + Registeringand ‘conversions designs and procurement inventory management managing
Slide 9: Innovating to Capture Spend and Drive Efficiency
Innovating to Capture Spend and Drive Efficien + Image recognition and artificial intelligence; capture 14M+ images per year (2021) * Daily pay for U.S. associates; improving retention and lowering expenses (2021) + Bot technology; recruiting efficiency and productivity (2021) + Crowd-sourcing image
Slide 10: Stepping Up Investment and Partnerships in Technology
Stepping Up Investment and Partnerships in Technology SPAR + promo exgcuton vacking 1 Etctitetoncing 1S outersece analyse ONLINE DATA siege CAPTURE + Spans lauren Sina easing esoures planning Echeauing CLOUD-BASED DATA ‘pc pRopucT INFORMATION ‘SPARView ‘ACADEMY {+ Demandand rescue panning 1 Gogo and
Slide 11: Putting the Portfolio Together
aaa eam aaaceacaacamcaacencamcancanceacaacanceacancancancaacancaacaacancaacancaaeaneeneneeea ene Putting the Portfolio Together SPAR Merchandising Marketing
Slide 12: Our Medium-Term Priorities and Goals
Our Medium-Term Priorities and Goals Operational Priorities Goals iheceraiel Borediondl + Drive Revenue Growth ~ 8.15% = 4 annual revenue growth on a path to 0 $500m+ +Revenue $500m+ “0 0 gana 822 gas 587 + Expand Services-add$isom+ of 0 il new revenue from new businesses * Consolidated Adj. and mar
Slide 13: Investor Questions
INVESTOR QUESTIONS UNEOCKING OUR POTENTIAL
Slide 14: Financial Information
Financial Information UNLOCKING OUR POTENTIAL
Slide 15: Historical Revenue and Consolidated Adjusted EBITDA
Historical Revenue and Consolidated Adjusted EBITDA SPAR SPAR Group, Inc. (SGRP): Reconciliation from GAAP to Non-GAAP Measures (intmousanas) Consolisted Revenue Depreciation ndamorteaton Ineestexpese IreomeTacerpese Otnerncome Conslited ETO ‘Share ised compensation Legalconts/Setemeets non cecuring
Slide 16: Revenue & Consolidated Adjusted Net Income
al Revenue & Consolidated Adjusted Net Income SPAR SPAR Group, Inc. (SGRP): Reconciliation from GAAP to Non-GAAP Measures ‘Twelve Months Ended December 31, (inthousands) mmo 20 ONT "Net Income (Loss) attbutable to SPAR Group Inc. (179) 3367 2419 (asst) __ (523) ‘Add-back one-time impact (net of taxe
Slide 17: Historical Balance Sheet
Historical Balance Sheet ‘SPAR Group, Inc. (SGRP) and Subsidiaries: Consolidated Balance Sheet ( Sthowsands) at December 3st mimosa. ‘ash andcash equtvents was 15872 s04s8_ ahaa secounts recelvesbe, et Skil 4691449299 46105964 Other caren ets 4302 3g 1379 ___2031 Total Curent Assets Taet6 66517 62.1
Slide 18: Executive Leadership Team
Executive Leadership Team Global Chief Executive Officer Mike Matacunas 30+ Years of relevant experience Services| Retall| Intemational | Fortune 150 Global Chief Financial Officer Fay DeVriese ‘30+ Years of relevant experience Services| interstional | CPA Global Chief Commercial Officer Ron Lutz 35
Slide 19: Investment Thesis
Investment Thesis Resilient financial results, global reach, international “blue chip” client base Expanding services and innovating to gain market share, capture spend and increase profitability Stepping up investments in technology and cloud data capture to differentiate the business Established $