Born in 1973 Roots was founded by Michael Budman and Don Green. - PowerPoint PPT Presentation

Born in 1973 Roots was founded by Michael Budman and Don Green. United by a summer camp friendship and inspired by the rugged beauty of Algonquin Park, Investor Presentation they set out to create an enduring lifestyle brand that captured the January 2018 essence of the Canadian outdoors.

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 EBITDA, adjusted EBITDA, adjusted net income, and adjusted net income per diluted 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 MD&A 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 December 5, 2017. 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 “About this Prospectus – Forward-Looking Information” and “Risk Factors” in the Company's final prospectus filed in connection with its initial public offering on October 18, 2017, which is available on SEDAR at www.sedar.com, for a discussion of the uncertainties, risks and assumptions associated with these 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.

Our Story

Born in 1973 Roots was founded by Michael Budman and Don Green • Created an enduring lifestyle brand that captured the essence of the Canadian Open Air • Founder-led for 43 years with each founder running a distinct division • Apparel/Accessories • Footwear/Leather

Roots Today Is A Successful Company Our Story Brand potential being unlocked through refined growth strategy and operational investments Relentless Rich Synonymous Global Iconic Product Customer Focus Heritage With Canada & in Reach Leadership The Open Air 44 years of 99% national 29% of system-wide Premium apparel, Insights drive designs and stories and aided brand sales generated leather, accessories elevated brand experience awareness outside of Canada (2) and footwear experiences Seamless Strong Financials Global Distribution Omni Channel $307MM Sales 116 Canada and 4 U.S. corporate stores 87% DTC $48MM Adjusted EBITDA (1) 109 Taiwan and 29 China partner-operated stores 13% Partners and other eCommerce ships to over 50 countries LTM 10/28/2017 LTM 10/28/2017 (3) Note: See Disclaimer – Non-IFRS Measures and Retail Industry Metrics. All figures discussed on this presentation are stated in $CAD millions, unless otherwise noted. (1) A reconciliation of historical Adjusted EBITDA to net income appears in the Appendix to this presentation. (2) In Fiscal 2016. (3) Channel mix as a percentage of sales.

Unlocking The Brand & It’s Business Potential Our Story Modernizing The Brand Transforming The Business 3 clearly defined consumers Senior Management Team established to operate the business Staying true to the brand’s lasting values Further enhancing existing omni-channel capabilities Brand Inspiration: connection to the Open Air and a healthy lifestyle United Brand Range: simplifying the business by editing and then amplifying key products and Reinventing the brand experience in stores and categories online Creating a scalable infrastructure: POS, HRIS, Heightened brand communication to engage new Planning, Roots.com consumers True business planning, analysis and enhanced Final brand positioning remains under reporting in place to support investments development for new markets Improving store operations through enhanced training and technology Strategic investments leave Roots well-positioned for accelerated growth Very early in the process of leveraging strategic investments

Accelerated Growth Is Underway

UBR Unlocks Future Potential and Growth Strategies Simplifies the Business Consumer-Focused Defined Go-To-Market Simplified Formalized Merchandising Pricing Tiers Sourcing Strategy Calendar ~40% SKU reduction by the end of Fiscal 2018 (1) Expect operational and cost efficiencies through increased unit volumes to fewer factories Note: See Disclaimer – Forward-Looking Information. (1) SKU reduction by the end of Fiscal 2018 relative to Fiscal 2016. (2) UBR refers to United Brand Range initiative.

Our Growth Strategies Growth Strategies Multiple levers will drive growth 1 Leverage operational investments 2 Pursue continued growth in Canada 3 Strategically Expand U.S Footprint 4 Expand in international markets 5 Deepen our offering in leather and footwear

1 Leverage Operational Investments Growth Strategies Transformational initiatives across our business Investments already made Accelerated future growth Leadership Functional expertise and operational experience Comparable sales growth Merchandising Developed consumer-focused strategy + Store productivity Analytical, data-driven approach to portfolio optimization Margin expansion E-commerce Improving our online storefront

2 Pursue Continued Growth in Canada Growth Strategies Expand omni-channel productivity and whitespace opportunities Amplifying Brand Leveraging E-commerce Store Grow Our Communication UBR Enhancements Optimization Store Network <2% 4% ~40% 44% 26 - 30 8 - 10 Investment (1) Investment (1) SKUs reduction (2) Historical sales CAGR (3) Existing stores by Fiscal 2019 (4) New stores by Fiscal 2019 (4) Leverage our High-impact collections, Enhancing online Implement our proven Grow our presence coast- exception brand simplified pricing tiers and shopping capabilities and playbook and updated to-coast in premium street awareness consistent presentation streamlining connectivity retail concept and top-tier mall locations Strategically invest in Drive frequency of customer Drive traffic and Target payback period Target payback period integrated marketing to purchases and increase conversion across our of less than three of less than two drive product demand units per transaction omni-channel platform years per store years per store Majority of expected sales growth through the end of Fiscal 2019 driven by core Canadian business Note: See Disclaimer – Forward-Looking Information. (1) Historical marketing investment and Fiscal 2019 target as a percentage of sales. Increased marketing spend will also support growth outside of Canada. (2) SKU reduction by the end of Fiscal 2018 relative to Fiscal 2016. (3) Fiscal 2014 to Fiscal 2016. (4) Target of 26-30 renovations or expansions and 8-10 new stores between Q4 2017E and the end of Fiscal 2019.