ICR Conference January 13, 2020 1
FRESHPET MANAGEMENT TEAM CFO CEO Co-Founder, COO EVP Finance Vice-Chairman CFO on 10/1/20 on 10/1/20 HEATHER SCOTT MORRIS DICK KASSAR BILLY CYR POMERANTZ
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Safe Harbor Forward Looking Statements This presentation contains “forward - looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the Company’s results may differ materially from those expressed or implied by such forward- looking statements. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, the Company’s intentions, beliefs or current expectations concerning, among other things, the Company’s results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate and any statements of assumptions underlying any of the foregoing. These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of future performance. These forward-looking statements are based on certain assumptions and are subject to risks and uncertainties, including those described in the “Risk Factors” section and elsewhere in the preliminary prospectus for this offering. You should read the prospectus, including the Risk Factors set forth therein and the documents that the Company has filed as exhibits to the registration statement, of which the prospectus is a part, completely and with the understanding that if any such risks or uncertainties materialize or if any of the relevant assumptions prove incorrect, the Company’s actual results could differ materially from the results expressed or implied by these forward-looking statements. Except as required by law we assume no obligation to update these forward-looking statements publicly, or to update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Non-GAAP Disclosure This presentation contains certain non-GAAP financial measures such as EBITDA and adjusted EBITDA among others. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to the Company’s earnings press releases for a reconciliation of non-GAAP financial measures to the most comparable measures prepared in accordance with GAAP. 4
WE FUNDAMENTALLY BELIEVE THAT FRESHPET HAS THE POTENTIAL TO CHANGE THE WAY PEOPLE FEED THEIR PETS . . . FOREVER 5
Freshpet Lives at the Intersection of Two Very Powerful Macro-Trends in CPG Fresh, Humanization Wholesome, of Pets All-Natural Foods 6
Until Freshpet, a dog’s choices were really limited Canned Dry Kibble Mystery Meat 7
A totally different approach to nourishing pets 8
82% of Consumers Report Visible Health Difference % Noticed Visible Health Difference Noticed a Visible Health Difference 0 10 20 30 40 50 60 70 80 Increased energy level 72 Shinier Coat 71 18 Fewer upset stomach episodes 68 Healthier skin 67 Fresher breath (less stinky) 82 66 Improved muscle tone 66 Healthier weight 64 Brighter eyes 64 Less flatulence 64 Yes No Alleviated allergies 59 Less tear staining 54 Source: Freshpet Visible Difference Study 2018 n= 202 Delivering a noticeable impact on pet’s wellbeing 9
Creating very high satisfaction Freshpet Product Satisfaction Top Two Box Percentages Among Regular FP Users Even my dad 100% 98% 96% 96% 95% 90% knows that Freshpet is really good Rolls Roasted Meals FFTK % Extremely/Very Satisfied on Product Satisfaction % Agree Completely/Somewhat on Good Value 10 Source: Freshpet Quality and Satisfaction Study, July 2018
WE OPERATE DIFFERENTLY Delighting consumers with fresh food & our company ideology. people. pets. planet. Our team The power of fresh Renewable energy Our partners natural & simple foods Carbon footprint offset Our families Less processed Conservation – land fill free Acts of kindness Sustainable practices 11
Manufacturing Differentiated Proprietary technology, Innovative forms, technologies, and processes, and infrastructure appearance A difficult High Brand Supply Chain Loyalty business to Only refrigerated pet food network in Alignment with deep pet North America parent emotional motivations replicate Retailer Partners Freshpet Fridge Delivers benefits in traffic, frequency and retailer margins Branded, company-owned real estate 12
2017: Launched Feed the Growth Goal: $300 million in net sales as soon as 2020 13
Freshpet Net Sales $260.0 >$244.0 $240.0 +26% $220.0 $200.0 $193.2 +27% $180.0 $160.0 $152.4 +18% $140.0 $129.7 $120.0 +14% $100.0 2016 2017 2018 2019 Net Sales Media investment re-accelerated growth 14
Total Freshpet HH 3,500,000 (52 Weeks Ending) 3,061,159 3,000,000 +22% 2019 Dog HH’s 2,500,102 2,500,000 2,183,923 +14% 3 1,883,933 +16% 2,000,000 +6% 1,500,000 60 1,000,000 Freshpet No Freshpet 500,000 0 2016 2017 2018 2019 Proj HH Purchasers Source: Nielsen HH Panel data ending September 2019 HH penetration gains accelerate . . . but are still a small share of the pet universe 15
$200.00 $180.00 Total Freshpet Buying Rate $160.00 $140.00 $120.00 $105.19 $101.35 $91.39 +4% $100.00 $88.77 +11% +3% +9% $80.00 $60.00 $40.00 $20.00 $- 2016 2017 2018 2019 Buy Rate Despite rapid influx of new buyers, buying rate continues to grow 16
Expanding consumer franchise . . . that is increasingly loyal 2016 Today Growth “Feed the Awareness 35% 46% +31% Growth” Progress Penetration 1.54% 2.45% +59% Buying Rate $81.73 $105.19 +29% Repeat Rate 67% 70% +300 bps 17 Source: Nielsen HH Panel and internal company data
Freshpet Distribution and Velocity Growth (Growth vs. YA) 25% 22% 21%21%21% 21%21% 19%19%19%19%19% 20% 18% 17%17% 17%16%16%15% 15% 16%16% 16% 15%15% 15% 14% 14% 14% 15% 14% 14%13% 13% 13%13% 12% 12% 12% 11% 11% 8% 8% 8% 9% 9% 9% 10%10%10% 10% 7% 7% 7% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 6% 6% 6% 6% 6% 6% 6% 6% 7% 6% 6% 6% 7% 7% 8% 8% 7% 7% 7% 7% 7% 7% 6% 6% 6% 6% 6% 5% 6% 6% 5% 4% 5% 3% 3% 3% 3% 3% 0% %ACV IYA $ / $MM ACV IYA Source: Nielsen Mega-Channel Data through 12/28/19 Inflection point: velocity gains become biggest driver of growth 18
Created growth and scale for retailers 2016 Today 52wk Dollars (Nielsen) $172.7M $339.7M 25.3% CAGR ACV Adj. Share Dog Food 4.5 6.9 since 2016 Avg. Dollars / Store / Week $244 $365 Average Unit Price $7.45 $8.36 19 Source: Nielsen Mega Channel (xAOC + Pet) Latest 52wks end 12-28-19 : Fresh Only
Growing distribution and velocity . . . with significant room to grow 2016 Today Growth Store Count 16,609 21,570 +4,961 % ACV Distribution 41 52.3 +28% Total Distribution Points 517 734 +42% Velocity ($/MM ACV) 371.0 560.9 +51% 20 Source: Nielsen Mega Channel (xAOC + Pet) Latest 52wks end 12-28-19 and internal company data
.. ~400 stores ~1000 stores ~7% ACV ~23% ACV Media investments are beginning to drive distribution gains in Canada and UK 21
Growing into our scale . . . and reinvesting for growth 2016 Today* Growth “Feed the Net Sales $130M >$244M +88% Growth” Progress Adj. SG&A (excl. media) 31.2% 25.3% +590 bps Media Spending $8M $29M +263% Media Spending % of Sales 6.3% 11.9% -560 bps *2019 Guidance 22
Scale is beginning to turn into profits Feed the Growth Freshpet Financial Performance progress 2017 2018 2019 Guidance* Net Sales ($ millions) $152.4 $193.2 >$244 vs YA +17% +27% >+26% Adj. EBITDA ($ millions) $17.6 $20.3 >$29 vs YA -1% +15% >+43% *Excluding incremental investments in Canada/UK and technical capability/capacity building, Adjusted EBITDA would be up 50+% in 2019 23
Kitchens 2.0 to open in Q3 2020 24
Freshpet Media Driven Run Rate Growth $140,000 $1,200,000 Current Kitchens Kitchens 2.0 Midwest Expansion $120,000 $1,000,000 $100,000 $800,000 $80,000 $600,000 $60,000 $400,000 $40,000 $200,000 $20,000 $- $- 2017 2018 2019 2020 2021 2022 2023 2024 2025 Media Spending ($M) Net Sales ($M) Rapid growth will require incremental capacity in 2022 25
2019 Update: Distribution Strong distribution gains continued in Q4 and will set us up for a good start in 2020 • ACV distribution grew +6.7 pts. vs YA to 52.3% • Store count grew +791 stores in Q4 delivering 2,071 net new stores in 2019 vs. goal of 1500-1600 • Incremental 249 upgrades and +29 double chillers in Q4 Freshpet % ACV Freshpet Distribution Gains 55.0 52.3% Q4 2018 Q4 2019 53.0 Store Count 19,499 21,570 51.0 vs YA +8% +11% 49.0 47.0 Upgraded Fridges (Cum.) 805 1,591 45.0 YTD Increase - 786 43.0 41.0 2nd Fridges (Cum.) NA 807 39.0 37.0 % ACV 45.6% 52.3% 35.0 vs YA +7% +15% Total Distribution Points (Change vs YA) +10% +16% 26
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