Advantage Solutions Third Quarter 2021 Earnings Presentation

ADVANTAGE SOLUTIONS INC.

Q3 2021 Earnings Presentation

November 9, 2021

DISCLAIMER

Forward Looking Statements

Certain statements in this presentation or accompanying commentary may be considered forward-looking statements with the meaning of federal securities laws. Forward-looking statements generally relate to future events or Advantage's future financial or operating performance, In some cases, you can identify forward-looking statements by terminology such as "may", "should", "expect", "intend", "will", "would", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology. Such forward- looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions, and as a result, are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Advantage and its management are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, the COVID -19 pandemic and the measures taken in response thereto; the availability , acceptance, administration and effectiveness of any COVID -19 vaccine; changes to labor laws or wage or job classification regulations, including minimum wage, or other market -driven wage changes; Advantage's ability to continue to generate significant operating cash flow; client procurement strategies and consolidation of Advantage's clients' industries creating pressure on the nature and pricing of its services; consumer goods manufacturers and retailers reviewing and changing their sales, retail, marketing, and technology programs and relationships; Advantage's ability to successfully develop and maintain relevant omni -channel services for our clients in an evolving industry and to otherwise adapt to significant technological change; Advantage's ability to effectively remediate material weaknesses and maintain proper and effective internal controls in the future; potential and actual harms to Advantag e's business arising from the Take 5 Matter; Advantage's substantial indebtedness and our ability to refinance at favorable rates; and other risks and uncertainties set forth in the section titled "Risk Factors" in the Annual Report on Form 10-K/A filed by Advantage with the Securities and Exchange Commission (the "SEC") on May 17, 2021 and in its other filings made from time to time with the SEC. These filings identify and address other important risks a nd uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Advantage assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise , except as required by law.

Non-GAAP Financial Measure and Related Information

This presentation includes certain financial measures not presented in accordance with generally accepted accounting principl es ("GAAP") including Adjusted EBITDA and Net Debt. These non -GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that are significant in understanding and assessing th e Company's financial results. Therefore, these measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP, and should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the Company's presentation of these measures may not be comparable to simila rly-titled measures used by other companies.

The Company believes these non-GAAP measures of financial results provide useful information to management and investors regardi ng certain financial and business trends relating to the Company's financial condition and results of operations. The Company believes that the use of Adjusted EBITDA and Net Debt provides an additional tool for investors to us e in evaluating ongoing operating results and trends in and in comparing the Company's financial measures with other similar companies, many of which present similar non -GAAP financial measures to investors. These non -GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non -GAAP financial measures.

Adjusted EBITDA means net income (loss) before (i) interest expense, net, (ii) (benefit from) provision for income taxes, (iii) depreciation, (iv) impairment of goodwill and indefinite-lived assets, (v) amortization of intangible assets,

1. equity based compensation of Karman Topco L.P. and Advantage's private equity sponsors' management fee, (vii) change in fair value of warrant liability, (viii) stock-based compensation expense, (ix) fair value adjustments of contingent consideration related to acquisitions, (x) acquisition-related expenses, (xi) costs associated with COVID-19, net of benefits received, (xii) EBITDA for economic interests in investments, (xiii) restructuring expenses,

1. litigation expenses, (xv) (Recovery from) loss on Take 5, (xvi) costs associated with the Take 5 Matter and (xvii) other adjustments that management believes are helpful in evaluating our operating performance.

Net Debt represents the sum of current portion of long -term debt and long-term debt, less cash and cash equivalents and debt issuance costs. With respect to Net Debt, cash and cash equivalents are subtracted from the GAAP measure, total debt, because they could be used to reduce the debt obligations.

The Company has presented the financial data for the last twelve -month ("LTM") period ended September 30, 2021 by adding the una udited results of operations for the nine-month period ended September 30, 2021 to its audited results of operations for the year ended December 31, 2020 and then subtracting the unaudited results of operations for the n ine- month period ended September 30, 2020. The financial data for the LTM period ended September 30, 2021 does not comply with GAAP.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages m ay not precisely reflect the absolute figures.

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KEY MESSAGES

• Delivered healthy financial results through the third quarter as reopening continued
• Affirming 2021 Adjusted EBITDA guidance of $520 to $530 million despite a dynamic operating environment
• Taking pricing in a majority of our businesses most impacted by part-time labor wage inflation, with hikes of mid-to- high single digits
• Seeing continued steady recovery in businesses most impacted by COVID, with sampling events up ~13% q/q
• Seeing continued elevated at-home consumer goods demand - supported by steady volume and rising prices
• Seeing sustained strength in higher growth/higher margin digital services
• Investing in recruiting and retention to stand up tens of thousands of new associates - and expecting that to persist
• Investing through the P&L in trade promotion optimization and service innovation
• Completing tuck-in acquisitions to add capabilities at attractive returns
• Pursuing organic growth with a robust new business pipeline coming out of the pandemic
• Announcing an open-ended share repurchase program of up to $100 Million

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Q3 TRENDS

				Revenues
		$ in millions.
		Y/Y growth		18%
Total	$982		$929
Advantage				$784
			Q3'19A	Q3'20A	Q3'21A
		Y/Y growth		10%
Sales				$542	$597
Segment	$503
			Q3'19A	Q3'20A	Q3'21A
		Y/Y growth		37%
Marketing	$478
Segment				$242	$332

Adjusted EBITDA

$ in millions.
Y/Y growth		(2%)
$145	$136	$134

	Q3'19A	Q3'20A	Q3'21A
Y/Y growth		(7%)
		$102	$95
$86
	Q3'19A	Q3'20A	Q3'21A
Y/Y growth		12%
$59
		$34	$39

Q3'19A

Q3'20A

Q3'21A

Q3'19A

Q3'20A

Q3'21A

IMPROVING TRENDS CONTINUE IN Q3

• Strengthening recovery in Marketing segment
• • In-storesampling recovering at key retailer partners
  • Digital & e-commerce strength continuing with consumer omnichannel shift
• Continued strength in Sales segment
• • Still solid center-store /at-home volume trends
  • Concerted push for increased prices, surgical promotions
  • International business rebounding nicely
  • Growth in retail merchandising services
  • Navigating some mix headwinds

S A M P L I NG E V E N T C O U N T

+ ~ 1 3 % Q / Q

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2019 Act		2020 Act		2021 Act

• Investing in recruiting, training and retention as we stand up new and recovering operations - and pricing with discipline to offset wage inflation
• Leveraging automation and technology to drive productivity and results

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