Monro, Inc. Investor Presentation September 2019 Safe Harbor - PowerPoint PPT Presentation

Monro, Inc. Investor Presentation September 2019

Safe Harbor Statement and Non-GAAP Measures Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statements related to our business plans and operating results are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Monro has identified some of these forward-looking statements with words such as “anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “may,” “will,” “should,” and “intends” and the negative of these words or other comparable terminology. These forward-looking statements are based on Monro’s current expectations, estimates, projections and assumptions as of the date such statements are made, and are subject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward- looking statements. Additional information regarding these risks and uncertainties are described in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Forms 10-K and Form 10-Q, which are available on Monro’s website at https://corporate.monro.com/investors/financial-information/. Monro assumes no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future. This presentation contains references to Adjusted Earnings Per Share (EPS), which is a “non-GAAP financial measure” as this term is defined in Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of 1934 and Regulation G under the Securities Exchange Act of 1934. In accordance with these rules, Monro has reconciled this non-GAAP financial measure to its most directly comparable U.S. GAAP measure. Management views this non-GAAP financial measure as a way to assess comparability between periods. This non-GAAP financial measure is not intended to represent, and should not be considered more meaningful than, or as an alternative to, its most directly comparable GAAP measure. This non-GAAP financial measure may be different from similarly titled non-GAAP financial measures used by other companies. 2

Company Overview A Leading Chain of Independently Owned and Operated Tire and Auto Service Locations  Dominant in the Northeastern U.S. and expanding in Southern and Western markets  Fiscal 2019 sales of $1,200.2 million  1,262 company operated stores in 30 states and 98 franchised locations as of August 26, 2019  33 acquisitions in the past 7 fiscal years, adding 429 locations, $630 million in revenue and entry into 9 new states  Operating two store formats in key markets Store locations as of 8/26/19 −Service stores – 559 stores • 80% maintenance services, 20% tires • $600,000 a year in sales per store −Tire stores - 703 stores (excluding wholesale) • 55% tires, 45% service • $1.2 million a year in sales per store  8 wholesale locations and 3 retread facilities 3

A Unique Operating Model Monro Has a Diversified Supply Chain, Sourcing High Quality, Low Cost Parts Direct and a Strong Portfolio of Tire Brands PARTS Monro sources these parts from leading Secondary parts distribution: aftermarket parts suppliers:  Brake Rotors and Pads  Filters  Steering and Suspension  Wipers  Belts TIRES 4 Store locations as of 8/26/19

A Favorable Industry Backdrop Favorable Industry Backdrop for Automotive Services with the Vehicles in Operation Expected to Grow Significantly Over the Next Few Years U.S. Light Vehicles in Operation (VIO) U.S. Annual Light Vehicle Sales 20 300 18 290 16 280 14 270 12 260 10 250 8 240 6 230 4 220 2 210 200 0 2012 2013 2014 2015 2016 2017 2018 2019* 2020* 2021* 2022* 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Source: Lang, IHS Markit. 2019 – 2022 are estimated figures Source: FRED Economic data, Light weight Vehicle Sales: Autos and Light Trucks Total Miles Traveled in U.S. Key Highlights 3,300,000 3,200,000  Growing total vehicle population from U.S. auto sales 3,100,000  270+ million vehicles on the road  Increasing age of vehicles (average of ~12 years) 3,000,000  2018 total annual miles driven up ~0.4% y/y 2,900,000  Increasing complexity of vehicles 2,800,000  Favorable demographics 2,700,000 2,600,000 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 5 Source: FRED Economic data, Moving 12-Month Total Vehicle Miles Traveled

A Favorable Industry Backdrop Monro is Well-Positioned to Capitalize on Positive Industry Trends, with Our Sweet Spot Experiencing the Fastest Growth in Vehicles in Operation Vehicles in Operation – 0 to 5 Years Vehicles in Operation – 6 to 12 Years 120 120 +6.56% CAGR -.03% CAGR -3.97% CAGR +3.90% CAGR 110 110 100 100 90 90 80 80 70 70 60 60 50 50 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Key Highlights Vehicles in Operation – 13+ Years +4.27% CAGR +1.47% CAGR  Strong growth in new vehicles (0-5 years) between 2012 120 and 2017 is creating a significant tailwind for the 6-12 year 110 old vehicle cohort for the next few years 100 90  6-12 year cohort expected to grow the fastest at +3.9% 80 CAGR for the period 2017-2022 70 60  Monro’s targeted market segment is the 6-12 year cohort 50 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 6 Source for all data: Lang, IHS Markit, 2018

A Favorable Industry Backdrop Monro Operates in the $238 Billion Do-It-For-Me* Segment of $297 Billion U.S. Automotive Aftermarket Industry Automotive Aftermarket DIFM vs. DIY Sales % % 2010 2018 CAGR (outlets) (outlets) 300,000 Dealers 18,460 14.3% 16,753 12.7% (1.2%) 250,000 General Repair 76,108 58.8% 81,087 61.5% 0.8% 200,000 Garages 150,000 Tire Dealers 18,675 14.4% 20,316 15.4% 1.1% 100,000 Specialty 8,663 6.7% 6,465 4.9% (3.6%) Repair 50,000 Oil 7,518 5.8% 7,301 5.5% (0.4%) - 0 Change/Lube 2012 2013 2014 2015 2016 2017 2018 Total 129,424 100.0% 131,922 100.0% DIFM DIY Source: Autocare Association Factbook Source: Autocare Association Factbook Consensus data for 2012; estimates for 2013-2018 DIFM vs. DIY Trends Key Highlights  DIFM continues to gain share from DIY Industry still highly fragmented, with significant  segment opportunities for further consolidation  Vehicle complexity continues to drive shift to DIFM from DIY  Future technology advances expected to accelerate shift to DIFM 7 * Includes Replacement Tire Segment

First Quarter Fiscal 2020 Highlights Achieved Sixth Consecutive Quarter of Comparable Store Sales Growth 1 2-Year Stacked Quarterly Comps Trends Quarterly Comps Trends 3.5% 3.5% 3.0% 3.0% 2.5% 2.5% 2.0% 2.0% 1.5% 1.5% 1.0% 1.0% 0.5% 0.5% 0.0% 0.0% 1 1 1 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 1 1 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 1QFY20 1QFY20 Key Highlights Key Highlights  Brakes: 6% Comparable store sales increased by 0.8%   Alignments: 2%  Sales increased 7.2% to a record $317.1M  Tires: 1%  Sales from new stores added $19.6M, including  Front End/Shocks: -1% sales from recent acquisitions of $16.6M  Maintenance: -2% 8 1 Results are adjusted for days

A Scalable Platform: Recent Acquisitions Acquisitions Announced and Completed in Fiscal 2020 Represent $75M in Annualized Sales Announced and Completed Acquisitions  Completed acquisition of 40 retail locations and one distribution center in California during 1QFY20  Entered a new state, expanding the Company’s geographic footprint to the West Coast  $45M in annualized sales, breakeven to EPS in FY20  Sales mix of 70% service and 30% tires  Acquired two additional stores in California during 1QFY20, representing $3M in annualized sales  Completed acquisition of 12 retail locations in Louisiana early in 1QFY20  Entered a new state, expanding the Company’s presence in the southern markets  $15M in annualized sales, breakeven to EPS in FY20  Sales mix of 35% service and 65% tires  Completed acquisition of eight stores in Louisiana, further solidifying market position in recently entered state  $12M in annualized sales, breakeven to EPS in FY20  Sales mix of 50% service and 50% tires Greenfield Openings 1  Added 4 greenfield locations through August 26, 2019 (excludes two California stores included above) 9 1 Greenfield stores include new construction as well as the acquisition of one to four store operations

Driving Long-Term Sustainable Growth Optimize Product & Improve Customer Experience Service Offering • Online reputation management • Consistent in-store experience • Redefined selling approach • Consistent store appearance • Optimized tire assortment Scalable Platform to Enhance Customer-Centric Accelerate Productivity Drive Sustainable Growth Engagement & Team Engagement • Optimized store staffing model • Customer retention • Clearly defined career path and • Customer acquisition enhanced training program • Omnichannel • Aligned compensation Investments in Technology and Data-Driven Analytics to Support Strategic Initiatives 10