First Quarter 2016 Earnings Disclaimer Forward-Looking Statements - PowerPoint PPT Presentation

First Quarter 2016 Earnings

Disclaimer Forward-Looking Statements This presentation contains “forward - looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward - looking statements may include, but are not limited to, statements relating to our 2016 Adjusted EBITDA outlook. Some of the forward-looking statements can be identified by the use of terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “project,” “potential,” or the negative of these terms, and similar expressions. You should be aware that these forward-looking statements are subject to risks and uncertainties that are beyond our control. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to predict all of them. Factors that may cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: cyclicality in residential and commercial construction markets; general economic and financial conditions; weather conditions, seasonality and availability of water to end-users; laws and government regulations applicable to our business that could negatively impact demand for our products; public perceptions that our products and services are not environmentally friendly; competitive industry pressures; product shortages and the loss of key suppliers; product price fluctuations; inventory management risks; ability to implement our business strategies and achieve our growth objectives; acquisition and integration risks; increased operating costs; and other risks, as indicated in our final prospectus filed pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, filed with the U.S. Securities and Exchange Commission on May 12, 2016 (Registration No. 333-206444). Non-GAAP Financial Information This presentation includes certain financial information, not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the information contained in the historical financial information of the Company prepared in accordance with U.S. GAAP that is set forth herein. We present Adjusted EBITDA in order to evaluate the operating performance and efficiency of our business. Adjusted EBITDA represents EBITDA as further adjusted for items permitted under the covenants of our credit facilities. EBITDA represents our net income (loss) plus the sum of interest expense, net of interest income and excluding amortization of debt discount, income tax expense (benefit), depreciation, and amortization. Adjusted EBITDA is further adjusted for stock-based compensation expense, related party advisory fees, loss (gain) on sale of assets and other non-cash items, other non-recurring (income) and loss. Adjusted EBITDA does not include pre-acquisition Adjusted EBITDA. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of Adjusted EBITDA instead of net income has limitations as an analytical tool. Because not all companies use identical calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies, limiting its usefulness as a comparative measure. Net debt and capital leases is defined as long-term debt and capital lease obligations less cash and cash-equivalents. 2

Company and Industry Overview ■ Largest and only national wholesale distributor of landscape supplies ■ Approximately four times the size of next competitor and only 9% market share (1) ■ Large $16 Billion highly fragmented market ■ Serving residential and commercial landscape professionals ■ Complementary value-add services Balanced end markets and product support Repair & Upgrade Maintenance 18% 45% ■ Approximately 100,000 SKUs ■ 466 stores in 45 states and five New provinces Construction 37% (1) Source: Management estimates, Company data 3

SiteOne Plays a Critical Role in the Professional Landscape Supply Value Chain Thousands Hundreds of thousands of suppliers of customers Critical business partner Small: ~17% of revenue ■ <$10K in avg. annual purchases SiteOne provides: SiteOne provides: Broadest Coast-to-coast product national network offering Extensive Superior sales & Medium: ~54% of revenue technical marketing expertise ■ $10K – 200K in avg. Rapid annual purchases Customer product loyalty launches program Fewer and larger Trade credit, shipments sales leads and training Large: ~28% of revenue ■ >$200K in avg. annual One-stop shop purchases Source: Management estimates 4

We are the Only National One-stop Shop Provider of Landscape Supplies Fertilizer Control Landscape Outdoor Irrigation & Other Products Nursery Accessories Hardscapes Lighting % of 2015 31% 24% 12% 16% 8% 5% 4% Sales 1 Key Products Key Suppliers Market #1 #1 #1 #1 #1 #1 #1 Position 2 (1) Excludes Retail & Other (<1% of sales) (2) Source: Management estimates, Company data; Wholesale outlets only 5

SiteOne is poised for long-term growth and margin enhancement Current Strategy  Leverage strengths of both large and local company  Superior value propositions to our customers  Fully exploit our scale  Develop and execute local market strategies  Close and integrate high value-added acquisitions  Entrepreneurial Local Area Teams supported by world-class leadership and functional support  Early innings of operational and commercial excellence  Pricing  Category management  Supply chain  Salesforce performance  Marketing 6

First Quarter 2016 and Recent Highlights  Net Sales increased by 45%, including 23% organic growth  Gross Margin increased by 350 basis points to 29.5%  Net loss decreased to $5.6 million vs. $9.8 million for the prior year period  Adjusted EBITDA (1) increased to $4.5 million vs. $5.7 million loss a year ago  Completed two strategic acquisitions, Hydro-Scape Products and Blue Max Materials  Further strengthened our teams in HR, IT, Supply Chain, Pricing and in the field  Successfully completed IPO in May 2016 (1) Adjusted EBITDA does not include $0.7 million of pre-acquisition acquired EBITDA vs. $1.0 million loss of pre-acquisition acquired EBITDA a year ago 7

First Quarter 2016 Financial Details Net Sales ($M) Financial Highlights $328.5 $225.8 ■ Net sales increased 45% year-over-year to $328.5 million Q1 - 2015 Q1 - 2016 – Strong organic growth of 23% Gross Profits ($M) $97.0 – Acquisitions contributed 22% $58.6 ■ Gross profit increased 66% to $97.0 million Q1 - 2015 Q1 - 2016 – Gross margin improved 350 basis points to Net Income ($M) 29.5% $(9.8) $(5.6) – We continue to execute our operational and Q1 - 2016 Q1 - 2015 commercial initiatives EPS ($) ■ Net loss decreased to $5.6 million, compared $(1.23) $(0.85) to $9.8 million for the first quarter of 2015 Q1 - 2016 ■ Adjusted EBITDA increased to $4.5 million, Q1 - 2015 reflecting our strong sales and gross margin Adj. EBITDA ($M) improvements $4.5 $(5.7) Q1 - 2015 Q1 - 2016 8

Balance Sheet & Cash Flow Highlights Financial Highlights For the three months ended April 3, 2016: ■ New capital structure put in place to support growth including acquisitions – New $275M 6-year term loan April 29, 2016 Pro-forma Net Debt (1) $403.5 million – ABL facility upsized to $325M (5-year maturity) in October 2015 » $158M in available capacity at the end of Q1 2016 Cash from Operating $10.0 million » Seasonal swings funded by ABL facility Activities ■ Excess cash flow used for investments and to pay down debt Acquisition Spend $31.1 million – No dividends for the foreseeable future – Invested $138M in 2014 & 2015 but only increased debt level by $18M ■ Target net debt / Adjusted EBITDA leverage of 2.0x – 3.0x Capital Expenditures $1.9 million – Leverage ratio of 3.5x or 3.2x under our previous definition of adjusted EBITDA (1) pro forma as adjusted basis, after giving effect to the acquisition that closed subsequent to April 3, 2016, debt refinancing and the Special Cash Dividend and each of the other items described in the section entitled “Capitalization” included in the Final Prospectus; Net debt is calculated as long term debt plus capital leases, net of cash and cash equivalents on our balance sheet (2) Leverage = net debt (including capital leases) to Adjusted EBITDA ratio 9