Annual l and General ral Meetin ing JUNE 15, 2018 JUNE 15, 2018 - PowerPoint PPT Presentation

Fiscal al 2017 Annua nual l Genera ral l Meeting ing Annual l and General ral Meetin ing JUNE 15, 2018 JUNE 15, 2018

Jim Gabel President & Chief Executive Officer

Agenda 1. Formal business 2. Corporate presentation 3

Erol Uzumeri Chairman of the Board

Disclaimer All figures discussed in this presentation are stated in $CAD millions, unless otherwise noted. Non-IFRS Measures and Industry Metrics This presentation makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures are not intended to represent, and should not be considered as alternatives to net income or other performance measures derived in accordance with IFRS as measures of operating performance or operating cash flows or as a measure of liquidity. In addition to our results determined in accordance with IFRS, we use non-IFRS measures including Adjusted DTC Gross Margin, EBITDA, Adjusted EBITDA, Adjusted net income, and Adjusted net income per share. This presentation also refers to comparable sales growth, a commonly used metric in our industry but that may be calculated differently compared to other companies. We believe these non-IFRS measures and industry metrics provide useful information to both management and investors in measuring our financial performance and condition and highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in our Management Discussion &Analysis (MD&A) dated June 12, 2018 under “Cautionary Note Regarding Non-IFRS Measures and Industry Metrics”, which is available on SEDAR at www.sedar.com. Forward-Looking Information Certain information in this presentation contains forward-looking information. This information is based on management’s reasonable assumptions and beliefs in light of the information currently available to us and are made as of June 15, 2018. Actual results and the timing of events may differ materially from those anticipated in the forward- looking information as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which we operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. See “Forward -Looking Information” and “Risk Factors” in the Company’s MD&A and Annual Information Form dated April 17, 2018, which are available on SEDAR at www.sedar.com, for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements. Readers are urged to consider the uncertainties, risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. 5

Formal Business • Presentation of Financial Statements • Election of Directors • Re-appointment of Auditors 6

Corporate Presentation

Jim Gabel President & Chief Executive Officer

Unl nlocking the ocking the po poten tential tial of of a a bran br and d wi with a th a 44 44-year year hi history story 9 9

Moderni rnizi zing ng Transfo sform rming ing the Br Brand the Busine ness ss Ensuring the Roots brand consistently Strategically investing in people, appeals to, and connects with, our systems, processes and target global omni-channel consumer, infrastructure to fuel while respecting Roots heritage and accelerated and sustainable longstanding core values. long-term growth. 10 10

Roots Today: The Brand Our Brand Position For the life and style collectors , who, like us, believe clothes should feel as good as they look. Roots is the brand that unites the worlds of cabin and city . As the grounded and groundbreaking connector, we create apparel, leather and footwear with unique Legendary Feel , so our consumers can confidently express their best self. 11 11

Target Consumer Life and Style Collector 12 12

Diversified Product Portfolio Footwear Leather Apparel Accessories Kids 2%* 11%* 62%* 12%* 13%* 13 13 * Percentage of FY2017 revenue

A Product Architecture Rooted in our Heritage Seasonal Excitement ~30% Exciting products for repeat visits On-trend, exciting and new Monthly Seasonal favourites that Perennial Favourites ~50% bring you back year after year Quarterly Fashion-Coloured Basic Sweats + Spring and Summer: Original Sweatshirt and Maple Baseball Cap Seasonal Fall and Winter: Algonquin Shirt, Packable Jacket, Cabin Shawl Cardigan, Original Cabin Sock World famous iconic pieces Enduring Icons ~20% Salt & Pepper Originals, Cooper Logo T-Shirt, All-Year-Round Awards Jacket, Banff Bag and Petite Banff, Student Pack, The Saddle Bag, Cotton Cabin Sock, Roots Toque 14 14

Roots Today: The Business A Growing Company 44-year track record Authentic premium lifestyle brand with global appeal and world-famous product International footprint Multiple growth levers Significant runway for growth 15 15

Moving to a Single Global Brand Range • • Enhanced products and assortments Formalized, analysis-driven approach to building assortment • Right product, right number of units to the right locations • Improved costing • Coordinated collections across categories • Greater scalability Sales growth Operating efficiencies Fewer markdowns Gross margin improvement Increased units per transaction Editing out slow-sellers and amplifying the best products 16 16

Leveraging Operational Investments to Drive Sales and Margin Expansion Investments already made Leadership Merchandising Infrastructure eCommerce POS, HRIS, LMS Functional expertise and consumer-focused strategy Further enhancing our operational experience online storefront Accelerating future growth + Comparable sales growth Margin expansion 17 17

Growth in Canada: Growing store network in high traffic areas 117 * Stores As at Q1 Fiscal 2018 6-8 * Remainder of new stores to add to achieve end of Fiscal 2019 target of 8-10 new store openings 18 18 *See Disclaimer – Forward Looking Information

Growth in Canada: Renovate and expand high-potential performing stores Lakeshore Store 20 % Before + average sales uplift 1 Lakeshore 20 % before + Lakeshore Store average incremental After contribution margin 24-28 * Store optimizations remaining to achieve end of Fiscal 2019 target 19 19 (1) Sales uplift calculated as the sales in the period subsequent to renovation/expansion, compared to the sales in the same period from the fiscal year prior to renovation/expansion. Lakeshore after *See Disclaimer – Forward Looking Information

Growth in Canada: Amplifying brand communication Grow marketing investment from 2% to 4% of sales by end of Fiscal 2019 • Leveraging 99% aided brand awareness 1 • Launching new products • Fostering stronger connections with customers and store communities Increase traffic across omni-channel network 20 20 (1) In home market primarily through word-of-mouth advertising and decades of celebrity and professional athlete affirmation. .

Growth in Canada: e-Commerce, fastest growing part of business • Progressive environment of ongoing innovation • Seamless omni-channel experience • Shipping to more than 50 countries (1) 20-22 % * of DTC sales Target by end of Fiscal 2019 (1) In Fiscal 2017. 21 21 *See Disclaimer – Forward Looking Information

Strategically Expanding US Footprint Current Footprint • 3 locations (NY, MI, UT) • Shipping to all 50 states (1) Current Pipeline • Boston, June 2018 • Washington, August 2018 • Full Omni-channel, Summer 2018 • Chicago, 2019 The Natick Mall, Massachusetts 10-14 * Boston Washington Chicago Target new locations by end of Fiscal 2019 (1) In Fiscal 2017. 22 22 *See Disclaimer – Forward Looking Information

Expanding in International Markets: Taiwan & China Footprint as at end of Q1 2018 • 112 Taiwan • 30 China New stores Shanghai No.1 Dept Store Yaohan Xindian FSS New Taipei City • 11 new stores H2 Fiscal 2017 • 2 new stores Q1 Fiscal 2018 7-12 * New store opens remaining to achieve end of Fiscal 2019 target Taipei 101 23 23 *See Disclaimer – Forward Looking Information