TH AN WILL WILLIAM IAM BL BLAIR AIR 39 39 TH ANNU NUAL AL GR GROWTH WTH ST STOCK OCK CO CONFE NFERENCE RENCE – JUNE JUNE 20 2019 19
SAF SAFE E HAR HARBOR BOR ST STATE TEMENT MENT This presentation does not constitute an offer or invitation for the sale or purchase of securities and has been prepared solely for informational purposes. This presentation contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “ may, ” “ might, ” “ will, ” “ would, ” “ should, ” “ expect, ” “ plan, ” “ anticipate, ” “ could, ” “ intend, ” “ target, ” “ project, ” “ contemplate, ” “ believe, ” “ estimate, ” “ predict, ” “ likely, ” “ potential ” or “ continue ” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. These forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, future economic or market conditions and the other risks and uncertainties described in “Risk Factors” contained in the Company’s Annual Report on Form 10 -K or Quarterly Reports on Form 10-Q or otherwise described in the Company’s other filings with the Securities and Exchange Commission. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this presentation. Nothing in this presentation should be regarded as a representation by any person that the forward- looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company undertakes no duty to update these forward-looking statements. This presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). We use non -GAAP financial measures, including “Adjusted EBITDA,” as useful measures of the Company’s core operating performance and trends and period-to- period comparisons of the Company’s core business. These non-GAAP financial measures have limitations as analytical tools and should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the appendix to this presentation.
MAN MANAGEME GEMENT NT PRE PRESE SENTE NTERS RS Mike Dennison / President, Powered Vehicles Group / Incoming CEO Over 25 years of manufacturing and technology experience – Joined FOX in August 2018 Zvi Glasman / CFO Over 30 years of experience, 18 years as a CFO – 11 years with FOX 3
OUR OUR PURP PURPOSE OSE We develop purpose-built, vehicle specific, performance defining solutions that enable our customers ’ vehicles to: • Go Faster • Go Farther • Ride Safer • Last Longer • Have Better Control 4
RA RACE CE PR PROVEN VEN PR PRODU ODUCTS CTS THROUGH PERFORMANCE DEFINING TECHNOLOGIES KRISTEN MATLOCK Naturally Aspirated UTV Winner at 2019 San Felipe 250 AARON GWIN CAMERON STEELE BRETT RHEEDER 2011, 2012, 2015, 2016 & 2017 2018 Baja 1000 Overall Champion 2018 Red Bull Rampage Champion Downhill World Cup Series Champion 2018 Red Bull Joyride Champion 2016 Crankworx Slopestyle Champion 2013 X-Games Slopestyle Gold Medal WAYNE MATLOCK Forced Induction UTV Winner at 2019 San Felipe 250 5
ASP ASPIRA IRATION TIONAL AL BRA BRAND ND DIEHARD BRAND EVANGELISTS WEEKEND WARRIORS & ENTHUSIASTS Look for the same performance as the professional athletes they admire PROFESSIONAL ATHLETES Demand the best product for a competitive edge 6
FOX’S CORE CONSUMERS Continue to capture a greater share of the Performance Enthusiast and General Consumer Markets 7
A COMP A COMPANY ANY OF P OF PASS ASSION IONATE TE ENT ENTHUSIAST HUSIASTS ENGINEERING TECHNICIAN TECHNICAL MARKETING SPECIALIST DESIGN ENGINEER 8
DIV DIVERS ERSITY ITY OF APP OF APPLICA LICATIONS AND TIONS AND MARK MARKET ETS 9
FINANCIAL HIGHLIGHTS 2017 2017 $476M $476M $94M $94M 2018 2018 $619M $619M $125M $125M +30% +30% +33% +33% Sales Adjusted EBITDA* *FOX defines adjusted EBITDA as net income adjusted for interest expense, net other expense, income taxes, amortization of purchased intangibles, depreciation, stock-based compensation, offering expense, strategic transformation costs, contingent consideration valuation adjustments, acquisition-related compensation expense, litigation-related costs, and certain other acquisition-related costs that are more fully described in the appendix. 10
SP SPECIAL ECIALTY TY SP SPOR ORTS TS GR GROUP OUP (SS (SSG) G)
CUST CUSTOMER LANDSCAPE OMER LANDSCAPE AFTERMARKET ORIGINAL EQUIPMENT 12
POR PORTF TFOLIO OLIO OF OF PE PERFORMAN RFORMANCE CE DEF DEFININ INING PR G PRODU ODUCTS CTS 13
GR GROWT WTH H OPP OPPOR ORTUNITIE TUNITIES S IN E IN EXIST XISTING ING CA CATE TEGOR GORIES IES RHYTHM SERIES E-BIKE LIVE VALVE WHEELS 14
GR GROWT WTH H OPP OPPOR ORTUNITIE TUNITIES S – WHITE WHITE SP SPACE CE EXPAND BRAND INTO RELEVANT PERFORMANCE DEFINING ADJACENCIES 15
SSG SS G SAL SALES ES GR GROWT WTH $ IN MILLIONS 2018 Growth of 15% 2019 YTD Growth of 13% 3 Year CAGR of 10% $282 $246 $227 $212 $65 $58 2015 2016 2017 2018 Q1'18 YTD Q1'19 YTD Solid growth in existing premium mountain bike product lines coupled with product line expansion has enabled FOX to exceed our mid to high single digit long term growth target 16
PO POWE WERED VEHICLES RED VEHICLES GR GROUP OUP (PV (PVG) G)
POWE PO WERED VEHICLES RED VEHICLES MAR MARKET KETS MOTORCYCLE ATV SNOW UTV MARINE TRUCK & SUV UPFITTING OFF-ROAD DEFENSE COMMERCIAL STREET PERFORMANCE 18
CUST CUSTOMER LANDSCAPE OMER LANDSCAPE AFTERMARKET ORIGINAL EQUIPMENT 19
GR GROWT WTH H OPP OPPOR ORTUNITIE TUNITIES 2018 ROW ~16% 20
PE PENET NETRA RATING TING NEW NEW MARK MARKET ETS 21
PV PVG S G SALE ALES S GR GROWT WTH $ IN MILLIONS 2018 Growth of 47% 2019 YTD Growth of 34% 3 Year CAGR of 30% $337 $230 $176 $155 $97 $72 Q1'18 YTD Q1'19 YTD 2015 2016 2017 2018 Strong growth in Off-Road capable On-Road markets further strengthened by Off-Road sport / recreational markets and acquisitions has enabled FOX to exceed our low double digit long term growth target 22
FIN FINANC ANCIALS IALS FIN FINANC ANCIALS IALS
CON CONSIS SISTE TENT NT SAL SALES ES GR GROWT WTH H FUE FUELE LED D BY BY PROD PR ODUC UCT T LE LEAD ADERSHIP AN ERSHIP AND D NEW M NEW MAR ARKETS KETS $ IN MILLIONS SALES GROWTH – MAJOR MARKETS Sales Growth – Consolidated 2018 Growth of 30% PVG 3-year CAGR of 30% 3 Year CAGR of 19% SSG 3-year CAGR of 10% 2019 YTD Growth of 25% 2018 TOTAL COMPANY SALES $619 $476 $403 PVG SSG $367 54% 46% $162 $130 2015 2016 2017 2018 Q1'18 YTD Q1'19 YTD 24
LE LEVERA VERAGING GING ST STRENGTH RENGTH IN T IN THE HE AFT AFTERMARKET ERMARKET TO O DRI DRIVE VE OEM OEM SP SPEC EC GR GROWTH WTH AN AND D EXP EXPAN AND D CU CUST STOM OMER B ER BASE ASE 2018 • FOX typically enters new markets in the aftermarket channel to drive end-consumer adoption and brand value, which often leads to OEM spec wins • Focused on maintaining a healthy balance between the two channels to sustain long- term growth and competitive advantage 25
IMPR IMPROVING VING PR PROFIT OFITABI ABILIT LITY T Y THR HROUG OUGH H STRA ST RATE TEGI GIC C IN INITIA ITIATIVES TIVES $ IN MILLIONS 2018 Adjusted EBITDA Growth of 33% Opportunity exists to sustain a 20+% Adjusted 3 Year CAGR of 25% EBITDA Margin over the next few years through 2019 Adjusted EBITDA YTD Growth of 35% continued improvement initiatives 2018 Adjusted EBITDA Margin of 20.1% $125 Initiatives Include: $94 • Powered Vehicle manufacturing and R&D platform expansion and supply chain $71 $64 optimization in North America • Other process-related efficiency initiatives $31 including a new ERP system $23 • Further optimizing bike production in 2015 2016 2017 2018 Q1'18 YTD Q1'19 YTD Taichung, Taiwan facility NOTE: See appendix for reconciliation of Adjusted EBITDA to its most comparable GAAP measure. 26
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