2017 Jefferies Consumer Conference June 20, 2017 Tom Taylor Chief - PowerPoint PPT Presentation

2017 Jefferies Consumer Conference June 20, 2017 Tom Taylor Chief Executive Officer

Forward-Looking Statements This presentation and the associated webcast contain forward-looking statements, including with respect to the Company’s estimated net sales, comparable store sales growth, GAAP EPS, adjusted diluted EPS, diluted share count, adjusted EBITDA, warehouse format store count and new warehouse format stores for both the thirteen weeks ended 6/29/17 and all of fiscal 2017 and with respect to the Company’s estimated depreciation and amortization expenses, interest expense, tax rate and capital expenditures for fiscal 2017. All statements other than statements of historical fact contained in this presentation, including statements regarding the Company’s future operating results and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward- looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “could,” “seeks,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “budget,” “potential,” “focused on” or “continue” or the negative of these terms or other similar expressions. The forward- looking statements in this presentation are only predictions. Although the Company believes that the expectations reflected in the forward-looking statements in this presentation are reasonable, the Company cannot guarantee future events, results, performance or achievements. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements in this presentation or the associated webcast, including, without limitation, those factors described in “Risk Factors,” “Special Note Regarding Forward-Looking Statements,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business” sections and elsewhere in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”) . Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The forward-looking statements contained in this presentation or the associated webcast speak only as of the date hereof. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company’s forward-looking statements occurs, the Company’s business, financial condition and operating results may vary materially from those expressed in the Company’s forward- looking statements. Except as required by applicable law, the Company does not plan to publicly update or revise any information in this presentation, including any forward-looking statements contained herein, whether as a result of any new information, future events or otherwise, including the Company’s estimated net sales, comparable store sales growth, GAAP EPS, adjusted diluted EPS, diluted share count, adjusted diluted weighted average shares outstanding, adjusted EBITDA, warehouse format store count and new warehouse format stores for both the thirteen weeks ended 6/29/17 and all of fiscal 2017 and with respect to the Company’s estimated depreciation and amortization expenses, interest expense, tax rate and capital expenditures for fiscal 2017. This presentation includes certain non-GAAP financial measures, including adjusted diluted weighted average shares outstanding, adjusted net income, Adjusted diluted EPS, EBITDA and adjusted EBITDA. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) . Please refer to the slide labeled “Non -GAAP Financial Measures,” in the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP. 1

Floor & Decor At a Glance Highly differentiated, multi-channel specialty Diversified Product Breadth (1) Two Key Customer Segments (2) retailer of hard surface flooring and Accessories accessories Do It Yourself 16% (“DIY”) Tile 40% ■ Broad, trend-right, in-stock assortment 31% Pro Customer ■ Everyday low price strategy Decorative 18% and Accessories Buy It 60% ■ Good / Better / Best merchandise Yourself 14% (“BIY”) selection 12% Wood 9% Laminate / Luxury Vinyl Natural ■ Service oriented sales culture Plank Stone ■ In-stock inventory Key Statistics One-stop shopping experience, with 72 (4) Current Store Count extensive service offering for the needs of all customers 2016 Net Sales $1,051 million Eight consecutive years of double digit 2016 Comparable Store Sales Growth 19.4% comparable store sales growth 2016 Adj. EBITDA (3) $108 million (1) Represents fiscal 2016 sales by category. (2) Represents estimated sales by customer. 2 (3) Please refer to the Appendix for a reconciliation of Adjusted EBITDA. (4) The store count used throughout this presentation excludes one 5,500 square foot design center in New Orleans, LA.

Favorable Ongoing Category Tailwinds Hard Surface Retail Sales Growing (1) Increasing Existing Home Sales in US (3) (in billions) (mm households) 8.0 $16.9 $14.7 5.5 6.0 $12.3 $10.2 4.0 2.0 0.0 Jan-78 Jun-84 Dec-90 Jun-97 Dec-03 Jun-10 Dec-16 2010 2012 2014 2016 Continued Market Shift Towards Hard Surface (2) Rising Home Equity Values Nearing All-Time High (3) ($ in trillions) 2002 2015 15.0 Hard $13.3 Hard Surface Surface 10.0 51% 39% 49% 61% 5.0 Soft Soft Surface Surface (Carpet) (Carpet) 0.0 Jan-78 Oct-85 Jul-93 Apr-01 Dec-08 Oct-16 Sources: US Bureau of Economic Analysis, Federal Reserve Bank of St. Louis Economic Research. (1) Management and independent consultant estimates. 3 (2) Catalina Floor Coverings Report. (3) Federal Reserve Bank of St. Louis Economic Research.

Sustained Robust Financial Performance Best in Class Comparable Store Sales Growth Average: 26.8% 16.4% 21.9% 23.6% 22.4% 22.6% 19.3% 18.9% 15.7% 17.0% 18.5% 16.3% 16.6% 14.9% 14.0% 12.8% 12.9% 10.4% 11.4% 9.8% 9.5% 8.4% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012: 11.7% 2013: 22.1% 2014: 15.8% 2015: 13.5% 2016: 19.4% 2017 Net Sales ($mm) (1) Adjusted EBITDA ($mm) (1)(2) $1,123 $1,051 $120 $108 $837 $772 $78 $71 $585 $51 $444 $337 $37 $33 2012 2013 2014 2015 2016 Q1 2016 Q1 2017 2012 2013 2014 2015 2016 Q1 2016 Q1 2017 Note: Comparable store sales begin on the first day of the 13 th month following the stores opening. 4 Excludes 53 rd week in 2015. (1) (2) Please refer to the Appendix for a reconciliation of Adjusted EBITDA.