Fiscal Year 2020 First Quarter Results August 8, 2019 1 Forward - PowerPoint PPT Presentation

Fiscal Year 2020 First Quarter Results August 8, 2019

1 Forward Looking Statements \\\ Certain statements in this presentation and other oral and written statements made by Vista Outdoor from time to time are forward- looking statements, including those that discuss, among other things: Vista Outdoor’s plans, objectives, expectations, intentions, strategies, goals, outlook or other non-historical matters; projections with respect to future revenues, income, earnings per share or other financial measures for Vista Outdoor; and the assumptions that underlie these matters. The words ‘believe’ , ‘expect’, ‘anticipate’, ‘intend’, ‘aim’, ‘should’ and similar expressions are intended to identify such forward -looking statements. To the extent that any such information is forward-looking, it is intended to fit within the safe harbor for forward- looking information provided by the Private Securities Litigation Reform Act of 1995. Numerous risks, uncertainties and other factors could cause Vista Outdoor’s actual results to differ materially from expectat ions described in such forward-looking statements, including the following: general economic and business conditions in the United States and Vista Outdoor’s other markets outside the United States, including conditions affecting employment levels, consume r confidence and spending, conditions in the retail environment, and other economic conditions affecting demand for our products and the financial health of our customers; Vista Outdoor’s ability to attract and retain key personnel and maintain and grow its relationships with customers, suppliers and other business partners, including Vista Outdoor’s ability to obtain acc eptable third party licenses; Vista Outdoor’s ability to adapt its products to changes in technology, the marketplace and customer preferences, including our ability to respond to shifting preferences of the end consumer from brick and mortar retail to online retail; Vista Outdoor’s ability to maintain and enhance brand recognition and reputation; use of social media to disseminate negative commentary and boycotts; reductions, in or unexpected changes in or our inability to accurately forecast demand for ammunition, firearms or accessories or other outdoor sports and recreation products; risks associated with Vista Outdoor’s sa les to significant retail customers, including unexpected cancellations, delays and other changes to purchase orders; supplier capacity constraints, production disruptions or quality or price issues affecting Vista Outdoor’s operating costs; Vista Outd oor ’s competitive environment; risks associated with compliance and diversification into international and commercial markets; changes in the current tariff structures; the supply, availability and costs of raw materials and components; increases in commodity, energy and production costs; changes in laws, rules and regulations relating to Vista Outdoor’s business, such as federal and state firearms and ammunition regulations; Vista Outdoor’s ability to execute its long -term growth strategy, including our ability to complete and realize expected benefits from acquisitions and integrate acquired businesses; Vista Outdoor’s ab ility to take advantage of growth opportunities in international and commercial markets; foreign currency exchange rates and fluctuations in those rates; the outcome of contingencies, including with respect to litigation and other proceedings relating to intellectual property, product liability, warranty liability, personal injury and environmental remediation; risks associated with cybersecurity and other industrial and physical security threats; capital market volatility and the availability of financing; changes to accounting standards or policies; and changes in tax rules or pronouncements. You are cautioned not to place undue reliance on any forward-looking statements we make. Vista Outdoor undertakes no obligation to update any forward-looking statements except as otherwise required by law. For further information on factors that could impact Vista Outdoor, and statements contained herein, please refer to Vista Outdoor’s filings with the Securities and Exchange Commission.

2 Agenda \\\ ● Q1 FY2020 Consolidated Results ● Update on Savage divestiture and debt pay-down progress Earnings Call and Q&A Thursday, August 8, 9 a.m. EDT Link from investors.vistaoutdoor.com ● Q1 FY2020 Segment Operating and Financial Results Hosted by: ● Looking Ahead – Updated FY2020 Guidance ● Reconciliation of GAAP to non- GAAP results Chris Metz Mick Lopez Kelly Reisdorf Chief Executive Chief Financial VP, Investor Officer Officer Relations

3 Debt Pay Down Progress \\\ Net Debt and Net Debt / LTM Adjusted EBITDA (1) 7.0x $1,200 ($ in millions) 5.9x 5.9x 6.0x $1,000 5.5x 5.3x 5.2x 4.9x 5.0x 4.5x $800 4.1x 3.7x 4.0x $600 $1,054 3.0x $994 $893 $874 $818 $400 $738 $711 2.0x $695 $682 $581 $200 1.0x 0.0x $0 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Post Savage Sale Net Debt Net Debt / LTM Adjusted EBITDA (2) (1) Net Debt / LTM Adjusted EBITDA ratio calculated as Vista’s total debt, less cash & cash equivalents, divided by LTM Adjusted EBITDA (2) Reflects ~$157 million incremental debt paydown from Savage Arms net proceeds

4 Q1 FY2020 Consolidated Results \\\ Q1 FY20 Q1 FY19 ($ millions, except per share data) Sales $460 $529 Organic* $460 $497 Adj. Gross Profit* $95 $119 Organic* $95 $104 Adj. Operating Expense* $89 $104 Organic* $89 $93 Adj. Interest Expense* $11 $13 Adj. Net Income (loss)* ($5) $0 Adj. Earnings per Share* ($0.08) $0.00 Free Cash Flow* YTD ($45M) $70

5 Q1 FY20 – Shooting Sports \\\ Adj. Gross Profit (1) Revenue Drivers 45 238 258 39 Revenue decrease due to: 50 50.0%  45 45.0% (12%) (8%) 40 40.0% Softness in the firearms market, lower ‒ 35 35.0% demand in rimfire ammunition, offset 30 30.0% 17.2% 16.6% 25 25.0% by increased demand for centerfire 20 20.0% ammunition 15 15.0% 10 10.0% 5 5.0% Gross Profit decrease due to:  0 0.0% Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Lower sales volume partially offset by ‒ ($ in millions) ($ in millions) favorable commodities and reduced discounting Ammunition Quarterly Revenue Firearms Quarterly Revenue ~(1.5%) YoY (8%) $243.9 $224.5 $217.1 $213.8 $197.6 FY19 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY20 Q1 (1) Non-GAAP financial measure. See reconciliation table for details.

6 Q1 FY20 – Outdoor Products \\\ Revenue Adj. Gross Profit (1) Drivers 60 222 239 56 Revenue decrease due to: 70 50.0%  45.0% 60 (25%) (19%) 40.0% Loss of Eyewear, market softness in ‒ 50 25.1% 25.1% 35.0% Hunting / Shooting market and 30.0% 40 unfavorable weather conditions for 25.0% 30 20.0% Action Sports 15.0% 20 (7%) (8%) 10.0% 10 Gross Profit dollars decrease due to: Organic (2) Organic (2)  5.0% 0 0.0% Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Loss of Eyewear and lower overall sales ‒ volumes ($ in millions) ($ in millions) Hunt and Shoot Accessories Action Sports Outdoor Recreation (3) (1) Non-GAAP financial measure. See reconciliation table for details (2) Adjusted for sale of Bolle, Serengeti and Cebe brands (3) FY19 Q1 figure includes $3 million of Jimmy Styks sales

7 FY2020 Updated Outlook \\\ Current FY2020 Prior FY 2020 Guidance (3) Guidance Sales $1.79 to $1.89 billion $1.94 to $2.03 billion Interest expense (1) ~ $40 million $45 million to $50 million Adj. Tax rate (2) ~ (25%) ~ 5% Adj. Earnings per share (2) $0.10 to $0.25 $0.28 to $0.38 Capital expenditures ~ $40 million $45 million to $50 million Free cash flow (2) $30 million to $40 million $55 million to $65 million Q2 FY2020: EPS Guidance Bridge: We expect Shooting Sports gross  Low High margins in the low to mid teens Previous FY20 Guidance $0.28 $0.38 Full Year FY2020: Additional Less: Savage FY20 Guidance ($0.125) ($0.125) Commentary: We expect approximately ~ 6% EBITDA  (mid-point of 10¢-15¢) Less: Savage Q1 Loss ($0.01) ($0.01) We expect Shooting Sports gross margins in  the mid teens Subtotal $0.15 $0.25 We expect Outdoor Products gross Tariff Risk ($0.05) -  margins in the low to mid 20s Revised FY20 Guidance $0.10 $0.25 (1) Includes amortization of financing costs (2) Non-GAAP financial measure. See reconciliation table for details (3) Includes Savage Arms for the full-year

8 Savage Divestiture Update \\\ YoY Pro Forma Financials Excluding Savage Arms ($ in millions) Q1 FY2020 Q1 FY2019 Pro Pro Historical Savage Other (1) Historical Savage Eyewear Other (1) Forma Forma Sales $460 ($24) $0 $436 $529 ($41) ($32) $0 $456 Gross Profit $95 ($6) $0 $89 $113 ($10) ($15) $0 $89 Operating Expense $100 ($5) ($10) $85 $153 ($7) ($9) ($46) $91 Interest Expense ($11) $2 $0 ($9) ($13) $2 $2 $0 ($9) Tax Expense $1 $0 $0 $1 ($1) ($0) ($1) $0 ($0) Net Income (loss) ($17) $1 $10 ($6) ($52) ($0) ($2) $46 ($9) Earnings per Share ($0.29) $0.01 $0.17 ($0.10) ($0.91) ($0.01) ($0.04) $0.80 ($0.16) (1) Refer to 8KA for details on costs applied in pro-forma

Reconciliation to GAAP Measures Section Title Appendix 10