greatness is out there · pdf file · 2017-10-30this presentation, ... these...

36
GREATNESS IS OUT THERE

Upload: trandan

Post on 17-Mar-2018

214 views

Category:

Documents


2 download

TRANSCRIPT

Page 1: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

G R E AT N E S S I S O U T T H E R E

Page 2: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

This presentation, and any discussion during or following this presentation, contain forward-looking statements, which are based on our current beliefs, expectations and assumptions regarding the future of our business, future plansand strategies, and other future conditions. These forward-looking statements include all matters that are not historical facts and include statements regarding our intentions, beliefs or current expectation concerning, among otherthings, our results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. Forward-looking statements can be identified by words such as “anticipate,” “believe,” “envision,”“estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” “contemplate” and other similar expressions, although not all forward-looking statements contain theseidentifying words. We caution you that actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. Forward-looking statements involve risksand uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We believe that these risks and uncertainties include, but are not limited to, risks relating to: our ability to maintain thestrength of our brand or to expand our brand to new products and geographies; our ability to protect or preserve our brand image and proprietary rights; our ability to satisfy changing consumer preferences; an economic downturnpotentially affecting discretionary consumer spending; the impact the recent overall decline in the retail industry may have on our retail partners; our ability to compete in our markets effectively; our ability to manage our growtheffectively; poor performance during our peak season potentially affecting our operating results for the full year; our indebtedness potentially adversely affecting our financial condition; our ability to maintain relationships with our selectnumber of suppliers; our ability to manage our product distribution through our retail partners and international distributors; the success of our marketing programs; potential business interruption because of a disruption at ourheadquarters; and fluctuations in raw materials costs or currency exchange rates. Any references to forward-looking statements in this presentation include forward-looking information within the meaning of applicable Canadiansecurities laws. Please refer to “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our annual report on form 20-F under Item 1A "Risk Factors", current only as of this date and no undertaking to updatelanguage.

Unless otherwise indicated, all references in this presentation to “Canada Goose,” “we,” “our,” “us,” “the company” or similar terms refer to Canada Goose Holdings Inc. and its consolidated subsidiaries. “DTC” refers to our “Direct toConsumer” segment and sales channel.

Unless otherwise specified, all monetary amounts in this presentation are in Canadian dollars. Our consolidated financial statements have been prepared in accordance with IFRS and are presented in thousands of Canadian dollarsexcept where otherwise indicated. Our historical results are not necessarily indicative of the results that should be expected in any future period. Our fiscal year ends on March 31 of each calendar year.

Our most recent fiscal year, which we refer to as FY2017, ended on March 31, 2017. We refer to the years ended March 31, 2016 and March 31, 2015 as FY2016 and FY2015, respectively. For the purpose of performing a comparison toFY2015, we have prepared Unaudited Pro Forma Combined Supplemental Financial Information for the year ended March 31, 2014 which gives effect to the acquisition by funds advised by Bain Capital L.P. as if it had occurred on April 1,2013, and which we refer to as FY2014.

This presentation makes reference to financial measures that are not defined under IFRS, including EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EPS and Adjusted Net Income. These measures do not have astandardized meaning prescribed by IFRS and therefore may not be comparable to similarly titled measures presented by others in our industry, and they should not be construed as an alternative to other financial measuresdetermined in accordance with IFRS. Please refer to the Appendix to this presentation for the definition and reconciliation to the nearest IFRS financial measure of non-IFRS financial measures.

This presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Page 3: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

2 G R E A T N E S S I S O U T T H E R E

C A N A D A T O T H E W O R L D

CELEBRATINGOUR HERITAGE

A TRULYGLOBAL BRAND

INSPIRINGADVENTURES

Opening of Canada Goose Arctic Gallery at Canadian Museum of Nature

People from 31 countries visited ourstores in Toronto and New York

Three-stage expeditionacross the Canadian Arctic

BEST EXPRESSION OF SPRING TO-DATE

Strong performance acrosschannels and markets

Page 4: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

$30

$44

10.4% 10.9%

FY2016 FY2017

$54

$81

18.7% 20.1%

FY2016 FY2017

$0.30

$0.43

FY2016 FY2017

$291

$404

FY2016 FY2017

3

E X C E P T I O N A L G R O W T H

REVENUE ADJUSTED EBITDA(1) ADJUSTED NET INCOME(1) ADJUSTED EPS(2)

+39% +49% +47% +43%

(1) A reconciliation of Adjusted EBITDA and Adjusted Net Income to IFRS measures appears in the Appendix to this presentation.(2) Adjusted Net Income per diluted share.

G R E A T N E S S I S O U T T H E R E

(C$ in millions) (C$ in millions / % margin) (C$ in millions / % of sales) (in C$)

Page 5: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

E X E C U T I N G O N O U R G R O W T H S T R AT E G I E S

4

MARKET DEVELOPMENT STRATEGY

1

CONTINUED GLOBAL GROWTH

2

ENHANCING PRODUCT OFFERING

3

DRIVING HIGHER MARGINS

4

+139 bps y.o.y. Adjusted EBITDA margin expansion in FY2017Exceptional profitability within our DTC channel

360° marketing plans and experiential activationse-Commerce in seven countries and three new stores in FY2018

+25% growth within each geographic segment in FY2017Significant runway for our brand in existing and new markets

Successful introduction of the new Spring 2017 collectionIntroduced knitwear Fall 2017

G R E A T N E S S I S O U T T H E R E

Page 6: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

O U R S T O R Y

5 G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 7: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

SAM DANIDAVID

6

6 0 Y E A R S I N T H E M A K I N G

G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 8: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

A U T H E N T I C B R A N D

7

FIELD-TESTED IN THECOLDEST PLACES ON EARTH

TACTICAL ANDINDUSTRIAL HERITAGE

GOOSEPEOPLE

FILM ANDENTERTAINMENT

POLAR BEARSINTERNATIONAL

RESOURCE CENTRESPROGRAM

G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 9: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

M A D E I N C A N A D A

HERITAGE

The country from which we draw our inspiration

and expertise

IT MATTERS

Sets us apart on the international stage and in

the minds of our customers

QUALITY

Aggressively investing in producing premium, high

quality products

8 G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 10: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

82% L O V E T H E I R

J A C K E T S

84% W I L L L I K E LY

P U R C H A S E A G A I N ( 1 )

Source: Consumer survey conducted in 2016.(1) 84% of customers indicate that, when making their next premium outerwear purchase, they would likely repurchase Canada Goose.9

B E L O V E D A N D C O V E T E D G L O B A L LY

G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 11: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

C A N A D A G O O S E T O D AY

CHANNEL MIX71% wholesale | 29% DTC

$404 MILLIONFY2017 revenue

SOLD IN 37 COUNTRIES~2,500 points of distribution | 8 online stores | 2 retail stores

RECOGNIZED FOR SUPPORTINGCanadian apparel manufacturing

>2,000 EMPLOYEESacross manufacturing, sales and corporate

OUR PRODUCTION INFRASTRUCTURE5 in-house facilities and 37 subcontractors

Note: Channel mix based on FY2017 figures. Number of employees as at 6/30/2017. 1 0 G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 12: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

PA S S I O N AT E A N D C O M M I T T E D T E A MDANI REISS

President & CEO20 years at Canada Goose

1 1

JOHN BLACK

Chief Financial Officer4 years at Canada Goose

Results-focused with strong negotiation skills and a track record of improving performance

at leading Canadian companies including Protenergy, OLG and Trimark Sportswear Group

JACKIE PORIADJIAN-ASCH

Chief Marketing Officer1 year at Canada Goose

15+ years of international experience in content development and distribution in sports and entertainment industry, most

recently SVP of Global Brand Marketing at UFC

LEE TURLINGTON

Chief Product Officer2 years at Canada Goose

Globally recognized for 25+ years of leadership roles at companies including Nike, Patagonia,

The North Face and Fila

SCOTT CAMERON

EVP, e-Commerce, Stores and Strategy2 years at Canada Goose

8+ years at McKinsey & Co. focused on luxury and apparel retail brands and worked with

Canada Goose for 2+ years

KARA MACKILLOP

SVP, Human Resources3 years at Canada Goose

15+ years of experience with high growth companies and top consumer brands including

Indigo Books & Music and Red Bull

CARRIE BAKER

SVP, Chief of Staff5 years at Canada Goose

15+ years of experience leading communications strategy and public affairs for top consumer

brands and Fortune 500 companies, including 12 years at a North American communications agency

JOHN MORAN

SVP, Manufacturing and Supply Chain3 years at Canada Goose

25+ years of experience in manufacturing, operations and sales, holding senior leadership

roles including Chief Operating Officer atNorth American apparel companies

ANA MIHALJEVIC

SVP, Planning and Sales Operations2 years at Canada Goose

Sales and planning expert with 10+ years in the apparel industry working with iconic brands

including Ralph Lauren, Marc Jacobs and Jones Apparel Group

PAT SHERLOCK

SVP, Global Wholesale5 years at Canada Goose

Two decades of sales management experience in sporting goods and packaged goods industries in

Canada, including New Balance and InBev

JACOB PAT

SVP, Information Technology4 years at Canada Goose

15+ years transforming IT operations at companies including OnX, Momentum Advanced

Solutions and Trimble Navigation

SPENCER ORR

SVP, Merchandising and Product Strategy8 years at Canada Goose

Recognized expert in product design and merchandising strategy with 12+ years of experience.

Launched HyBridge Lite Jacket which earned 2011 Outside Magazine Gear of the Year Award

DAVID FORREST

SVP, General Counsel3 years at Canada Goose

11+ years of experience working as General Counsel and Corporate Secretary of Thomas

Cook North America and practicing law at Osler, Hoskin & Harcourt LLP

G R E A T N E S S I S O U T T H E R E – O U R S T O R Y

Page 13: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

G R O W T H S T R AT E G I E S

1 2 G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 14: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

O U R G R O W T H S T R AT E G I E S

1 3

EXECUTE OUR PROVEN MARKET DEVELOPMENT STRATEGY

ACROSS ALL MARKETS

1

STRENGTHEN AND EXPAND GEOGRAPHIC FOOTPRINT IN

NEWER AND NASCENT MARKETS

2

ENHANCE AND EXPAND PRODUCT OFFERING

3

CONTINUE TO FOCUS ON OPERATIONAL EXCELLENCE TO

DRIVE HIGHER MARGINS

4

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 15: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

BUILD BRANDAWARENESS

E-COMMERCE-LEDDTC ROLLOUT

An unfiltered window intoour brand, deployed as markets

become more developed

ENHANCEWHOLESALE NETWORK

Strategically expanding and deepening our network of

best-in-class retail partners

Established brand power

Disciplined amplification

1

1 4 G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

A DVA N C I N G M A R K E T S A LO N G T H E M AT U R I T Y C U R V EM A R K E T D E V E L O P M E N T S T R AT E G Y

A B C

Page 16: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

B U I L D B R A N D A W A R E N E S S

1 5 G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

1 A

O R G A N I CS E E D I N G

G O O S EP E O P L E

F I L M C O L L A B S

AUTHENTIC STORY PEOPLE LOVE

AMPLIFYINGTHE MESSAGE

A BRAND LIKE NO OTHER INTEGRATED MARKETING

G L O B A LC A M P A I G N S

D I G I T A L -F I R S T

A P P R O A C H

I N S I G H T S& R O I

A L W A Y SO N

Page 17: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

E N H A N C E W H O L E S A L E N E T W O R K

FY2014 AND PRIOR FY2017 AND ONWARDFY2015 AND FY2016

Commission based agent model Global in-house transition completeTransitioned key accounts in-house

“Generalist” approach Developed “specialist” capabilities

Broad range of retail partners Deeper strategic partnershipsRetail rationalization

Shop-in-shop rolloutRefined shop-in-shop concept

Increase three season penetrationRecommended assortments

Alignment and planning with DTC

Enhance account management

Limited shop-in-shop footprint

Demand consistently outpaced supply

Focused on core winter products Extending offering beyond the parka New line extensions

F R O M O R D E R TA K E R S TO ST R AT E G I C PA R T N E R S

1 6

1 B

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 18: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

E - C O M M E R C E - L E D D T C R O L L O U T

1 7

$0 to $115MM in less than three years (29% of FY2017 sales)

1 C

E-COMMERCE RETAIL STORES

CanadaAugust 2014

United StatesSeptember 2015

United KingdomSeptember 2016

FranceSeptember 2016

Toronto, YorkdaleOctober 2016

New York City, SoHoNovember 2016

London, Regent Street

Chicago, Magnificent Mile

LAUNCHING IN FY2018

Germany

Netherlands*

Luxembourg*

Belgium*

Sweden*

Ireland*

Austria

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

OPENING FALL 2017

* Indicates sites have opened

Boston, Prudential CenterCalgary, Cadillac Fairview

Chinook CentreTokyo, Japan, Sendagaya**

**operated by distributor

Page 19: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

$46

$86 $92$117

FY2014 FY2015 FY2016 FY2017

$34$57

$103$132

FY2014 FY2015 FY2016 FY2017

$73 $76$95

$155

FY2014 FY2015 FY2016 FY2017

EUROPE Present in every major Western European market Focus on deeper wholesale partnerships and

e-commerce rollout

ASIA Recently partnered with world-class distributors

to accelerate growth in our most established markets – Japan and Korea

Limited presence in China and other large markets

1 8

Canada revenue Rest of World revenueUnited States revenue(C$ in millions) (C$ in millions) (C$ in millions)

Note: Awareness data is based on aided brand awareness consumer survey conducted in 2016.

S U C C E S S F U L T R AC K R E C O R D W I T H ST R O N G M O M E N T U M

2 P U R S U E C O N T I N U E D G L O B A L G R O W T H

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Leveraging high brand awareness of 76% to drive exceptional DTC results and continued wholesale growth

Further penetration opportunity remains

Continued focus on increasing national brand awareness towards the level achieved in Canada

Deepening wholesale penetration across all regions, supported by expanding lighter-weight offering

Strong performance within the DTC channel both online and in the store

Page 20: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

2

1 9 G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

P U R S U E C O N T I N U E D G L O B A L G R O W T HA DVA N C I N G O U R M A R K E T S A LO N G T H E M AT U R I T Y C U R V E

More developedMid stageEarly stageNascent

Page 21: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

Addressable customers

2 0

(Unit sales per 1,000 addressable customers(1))

Select examples of market penetration by country for Fall / Winter products

Achieving 50% of Canadian penetration would triple unit demand within Fall and Winter categories

3.5Western Europe 5.2

United States9.5

Japan andSouth Korea

35.2Canada

FY2016 penetration

FY2013 penetration

Note: Western Europe includes Sweden, Denmark, Norway, Finland, France, United Kingdom, the Netherlands, Spain, Germany, Austria, Belgium and Italy.(1) Addressable customers living above the 37th parallel with >$100,000 of household income.

L A R G E P E N E T R AT I O N U P S I D E AC R O S S M A R K E T S

2 P U R S U E C O N T I N U E D G L O B A L G R O W T H1

Additional white space in earlier stage markets such as China and Russia

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 22: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

3

2 1

E N H A N C E P R O D U C T O F F E R I N G

Strengthen brand loyalty, drive market penetration and expand geographic appeal

EXPAND SPRINGAND FALL

ELEVATEWINTER

EXPAND BEYONDOUTERWEAR

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 23: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

D R I V E H I G H E R M A R G I N S4

2 2

CHANNELMIX

IN-SOURCEMANUFACTURING

Expand DTC channel inmore established markets

PRICEOPTIMIZATION

OPERATINGLEVERAGE

Capture full valueof our products

Invested ahead of our growth indesign, infrastructure and DTC

Optimize manufacturingmix to capture gross margin

+304 bps Adjusted EBITDA(1) margin expansion from FY2015 to FY2017(1) A reconciliation of Adjusted EBITDA to IFRS measures appears in the Appendix to this presentation.

G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 24: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

S I G N I F I CA N T R U N WAY A LO N G M U LT I P L E V E CTO R S

2 3

C O M P E L L I N G G R O W T H

E-COMMERCE-LED DTC ROLLOUT

Canada and the United States

Rest of World

Retailstores

DTC-only luxurybrand margins

ENHANCE AND EXPAND PRODUCT OFFERING

Authentic lifestylebrand

STRENGTHEN AND EXPANDGEOGRAPHIC FOOTPRINT

15 – 20retail stores

Three seasons

C$117mm

C$287mm

TorontoNew York City

Adj.EBITDA(1)

margin of20.1%

Adj. EBITDA(1)

margin of 10.4%

$106mm

C$46mm

4 3

OPERATIONAL EXCELLENCETO DRIVE HIGHER MARGINS

2

1

Massmarketbrand

100+retail stores

CanadaUnited States

United KingdomFrance

Increase online penetration

Fiscal 2014Fiscal 2017Future potential

Note: Axes are not to scale.Dollar figures represent revenue.

(1) A reconciliation of Adjusted EBITDA to net income appears in the Appendix to this presentation.G R E A T N E S S I S O U T T H E R E – G R O W T H S T R A T E G I E S

Page 25: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

F I N A N C I A L S

2 4 G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

Page 26: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

2 5 G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

S U M M A R Y F I N A N C I A L H I G H L I G H T S

Exceptional revenue growthpotential driven by multiple vectors with significant runway

Geographic growth in new and existing markets, channel diversification and product expansion

Powerful business model withimproving margin profile and strong earnings growth

Leveraging operational excellence to expand Adjusted EBITDA margins

Highly visible and seasonal revenue modelProvides ability to invest ahead of growth

Page 27: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

$76 $95$155

$57$103

$132$86

$92

$117

$218

$291

$404

FY2015 FY2016 FY2017

Canada United States Rest of World

$210$258 $289

$8

$33

$115

$218

$291

$404

FY2015 FY2016 FY2017

Wholesale DTC

Revenue by channel Revenue by geography

Consistent growth across channels, geographies and products

2 6

E X C E P T I O N A L G R O W T H

G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

(C$ in millions) (C$ in millions)

39.0% 25.2% 41.6%Constant FX growth

39.0% 25.2% 41.6%Constant FX growth

Page 28: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

$21 $30$44

9.8% 10.4% 10.9%

FY2015 FY2016 FY2017

$37$54

$81

17.0% 18.7% 20.1%

FY2015 FY2016 FY2017

$59 $100$165

27.2% 34.4% 40.9%

FY2015 FY2016 FY2017

$89$146

$21240.6%

50.1% 52.5%

FY2015 FY2016 FY2017

Gross profit SG&A

Shift in mix towards higher margin DTC sales Price optimization

Increase relative to sales driven by growth investments in DTC, head count and marketing initiatives

Includes unusual expenses of $7MM, $7MM and $32MM in FY2015, FY2016 and FY2017, respectively

DTC* 4% 11%

* % of revenue

29%

(C$ in millions / % margin) (C$ in millions / % of sales)

2 7

P O W E R F U L B U S I N E S S M O D E L W I T H I M P R O V I N G M A R G I N P R O F I L E

Adjusted EBITDA(1) Adjusted Net Income(1)

(C$ in millions / % margin) (C$ in millions / % of sales)

Significant acceleration in profitability while making major growth investments

Distribution of income across jurisdictions drives targeted effective tax rate of ~25% Change in capital structure weighed in on the margin

Margin expansion driven primarily by economies of scale, pricing and DTC

G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

(1) A reconciliation of Adjusted EBITDA and Adjusted Net Income to IFRS measures appears in the Appendix to this presentation.

Page 29: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

2 8 G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

H I G H LY V I S I B L E A N D S E A S O N A LR E V E N U E M O D E L

Q3 ended December 31st Q4 ended March 31st Q1 ended June 30th Q2 ended September 30th Q3 ended December 31st Q4 ended March 31st

Majority of order book is filled

Low selling season resulting in inventory buildup High shipments and volumeHigh sales volume

Majority of order book is filled

Inventory buildup

Inventory peaks and begins to decline

Who

lesa

leO

pera

tions

DT

C

~ 3 /4 o f r eve n u e g e n e ra t e d i n Q 2 a n d Q 3

Pe a k wo r k i n g c a p i t a l

Linear production throughout the year

Investment quartersPeak selling season Investment quarters

S G & A a n d i n ve n t o r y g r ow t h i n ve st m e n t s

Majorit y of revenue is derived from orders made prior to the beginning of the fisc al year

Peak selling season

P r o a c t i ve l y m a n a g eF X ex p o s u r e

P r o a c t i ve l y m a n a g eF X ex p o s u r e

Low selling season resulting in inventory buildup High shipments and volumeHigh sales volume Inventory buildup

Page 30: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

2 9 G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

Quarterly revenue

H I G H LY V I S I B L E A N D S E A S O N A LR E V E N U E M O D E L

Net income contribution

+ (‒) (‒)+

~75% - 8 5% of reve n u e in Q 2 an d Q 3 wit h s o me fluctuat ions y.o.y. due to shipment timing

High reve nu e visibilit y allows fo r Q4 and Q1 to ser ve as invest ment quar ters

Negat i ve operat in g margin of invest ment quar ters increas e d by invest ment s in SG& A to suppor t DTC ro llout

(C$ in millions )

(‒)

$110 $116

$42$16

$128

$209

$51$28

Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018

(‒)+ +

Page 31: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

K E Y G R O W T H D R I V E R S

W H O L ESA L E

Volume growth driven by increased penetration and three-season product expansion

Pricing growth Increase geographic footprint Deeper account penetration Disciplined increase in points

of distribution and shop-in-shop locations

D I R ECT TO C O N S U M E R

Volume growth driven by increased penetration and three-season product expansion

Pricing growth Launch additional e-commerce sites Open additional retail stores

3 0 G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

REVENUE

DTC investments have been accretive to operating income due to higher gross margin profile

Leverage economies of scale as growth investments in distribution and corporate overhead begin to pay off

SG&A

Investments in e-commerce sites and retail stores

Manufacturing capacity expansion and opportunistic acquisitions

Corporate level IT investments Design and merchandising

investments

CAPEX

Margin expansion from DTC mix shift Strategic price optimization in excess

of cost inflation Incremental margin from in-house

manufacturing mix shift

GROSS PROFIT

Page 32: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

3 1 G R E A T N E S S I S O U T T H E R E – F I N A N C I A L S

S U M M A R Y F I N A N C I A L H I G H L I G H T S

Exceptional revenue growthpotential driven by multiple vectors with significant runway

Geographic growth in new and existing markets, channel diversification and product expansion

Powerful business model withimproving margin profile and strong earnings growth

Leveraging operational excellence to expand Adjusted EBITDA margins

Highly visible and seasonal revenue modelProvides ability to invest ahead of growth

Page 33: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

A B R A N D L I K E N O O T H E R

3 2 G R E A T N E S S I S O U T T H E R E

Page 34: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

A P P E N D I X

3 3 G R E A T N E S S I S O U T T H E R E – A P P E N D I X

Page 35: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

(C$ in millions) FY2015 FY2016 FY2017Net income $14.4 $26.5 $21.6

Add impact of:Income tax expense 4.7 6.5 8.9Interest expense 7.5 8.0 10.0Depreciation and amortization 3.4 5.9 8.4

EBITDA $30.1 $46.9 $48.9Add impact of:Bain Capital management fees 0.9 1.1 10.3Transaction costs – 0.3 10.0Purchase accounting adjustments 2.9 – –Unrealized (gain) / loss on derivatives (0.1) (4.4) 4.4Unrealized foreign exchange loss on term loan – – (0.1)International restructuring costs 1.0 6.9 0.2Share-based compensation 0.3 0.5 5.9Agent terminations and other 2.2 3.1 –Non-cash rent expense – – 1.4

Adjusted EBITDA $37.2 $54.3 $81.0

A D J U S T E D E B I T D A R E C O N C I L I AT I O N

3 4 G R E A T N E S S I S O U T T H E R E – A P P E N D I X

Page 36: GREATNESS IS OUT THERE · PDF file · 2017-10-30This presentation, ... These measures do not have a ... Commission based agent model Global in-house transition completeTransitioned

(C$ in millions) FY2015 FY2016 FY2017Net income $14.4 $26.5 $21.6

Add impact of:Bain Capital management fees 0.9 1.1 10.3Transaction costs – 0.3 10.0Purchase accounting adjustments 2.9 – –Unrealized (gain) / loss on derivatives (0.1) (4.4) 4.4Unrealized foreign exchange loss on term loan – – (0.1)International restructuring costs 1.0 6.9 0.2Share-based compensation 0.3 0.5 5.9Agent terminations and other 2.2 3.1 –Non-cash rent expense – – 1.4Amortization on intangible assets acquired by Bain Capital 2.2 2.2 2.2Non-cash revaluation of carrying value – – (5.9)

Total adjustments $9.3 $9.6 $28.3Tax effect of adjustments (2.4) (2.4) (5.8)Tax effect of one-time intercompany transaction – (3.5) –

Adjusted Net Income $21.4 $30.1 $44.1

Weighted average number of shares outstanding (diluted) 101,211,134 101,692,301 102,023,196Adjusted EPS $0.21 $0.30 $0.43

A D J U S T E D N E T I N C O M E R E C O N C I L I AT I O N

3 5 G R E A T N E S S I S O U T T H E R E – A P P E N D I X