Investor

Presentation

November 2022

Forward Looking Statements

This presentation contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. All forward-looking statements are made in good faith by the company and are intended to qualify for the safe harbor from liability established by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.You should not rely on these forward-looking statements as predictions of future events. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "target", "goal", "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Company's expectations with respect to future performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside the Company's control and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) unfavorable economic conditions that may affect operations, financial condition and cash flows including spending on home renovation or construction projects, inflation, recessions, instability in the financial markets or credit markets; (2) increased supply chain costs, including raw materials, sourcing, transportation and energy; (3) the highly competitive nature of the markets that we serve (4) ability to continue to innovate with new products and services; (5) seasonality; (6) large customer concentration; (7) ability to recruit and retain qualified employees; (8) the outcome of any legal proceedings that may be instituted against the Company (9) adverse changes in currency exchange rates; (10) the impact of COVID-19 on the Company's business; or (11) regulatory changes and potential legislation that could adversely impact financial results. The foregoing list of factors is not exclusive, and readers should also refer to those risks that are included in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Annual Report on Form 10-K filed on March 16, 2022. Given these uncertainties, current or prospective investors are cautioned not to place undue reliance on any such forward looking statements.

Except as required by applicable law, the Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements in this communication to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with U.S. generally accepted accounting principles ("GAAP") throughout this presentation the company has provided non-GAAP financial measures, which present results on a basis adjusted for certain items. The company uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors. The company believes that these non-GAAP financial measures are useful financial metrics to assess its operating performance from period-to-period by excluding certain items that the company believes are not representative of its core business. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of the company's financial results in accordance with GAAP. The use of the non-GAAP financial measures terms may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures. These non-GAAP financial measures are reconciled from the respective measures under GAAP in the appendix below.

The company is not able to provide a reconciliation of the company's non-GAAP financial guidance to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain non-cash, nonrecurring or other items that are included in net income and EBITDA as well as the related tax impacts of these items and asset dispositions / acquisitions and changes in foreign currency exchange rates that are included in cash flow, due to the uncertainty and variability of the nature and amount of these future charges and costs.

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2

Key Stats: Q3 2022

Hillman Solutions Corp. - Nasdaq: HLMN

Share Price (November 4, 2022 - Closing Price)

$8.00

52-Week Low / High

$6.60 / $12.45

Total Shares Outstanding

194.5 million

Equity Market Capitalization

$1.6 billion

Net Debt

$922.0 million

Total Enterprise Value

$2.5 billion

Net Debt / Adj. EBITDA (ttm)

4.5x

Net Sales (ttm)

$1.5 billion

Adj. EBITDA (ttm)

$203.9 million

First Day of Trading: Nasdaq

July 15, 2021

Employees

~4,000

Adjusted EBITDA and Net Debt are non-GAAP measures. Please see appendix for reconciliations to GAAP metrics. Stats as of September 24, 2022, unless otherwise indicated.

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Hillman: Overview

Who We Are

  • We are a leading North American provider of hardware products and solutions, including;
    1. Hardware and home improvement products
    2. Protective and job site gear - including work gloves and job site storage
    3. Robotic kiosk technologies ("RDS"): Key duplication, engraving & knife sharpening
  • Our differentiated service model provides direct to-store shipping, in-store service, and category management solutions
  • We have long-standing strategic partnerships with leading retailers across North America:
    • Home Depot, Lowes, Walmart, Tractor Supply, and ACE Hardware
  • Founded in 1964; HQ in Cincinnati, Ohio

2021: By The Numbers

~20 billion

~400 million

~125 million

Fasteners

Pairs of Gloves

Keys Duplicated

Sold per Year

Sold per Year

per Year

~112,000

~42,000

~35,000

SKUs

Direct

Kiosks in

Managed

Locations

Retail Locations

#1

10%+

56 Years

Position Across

Sales CAGR over

Sales Growth in

Core Categories*

past 10 years

57-Year History

$1.4 billion

14.5%

14.4% CAGR

2021 Adj.

2017-2021 Adj.

2021 Net Sales

EBITDA Margin

EBITDA Growth

*Third-party market study - 2019

Adjusted EBITDA is a non-GAAP measure. Please see Appendix for a reconciliation of Adjusted EBITDA to Net Income.

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Our Differentiated Service Model

Why We Win - We Manage Complexity for Customers

Direct-to-Store

Field Sales and

Innovative Hillman-

Shipping

Service Team

Owned Brands

Over 75% of the revenue from our 112,000 SKUs are shipped directly to our

customers' retail stores.

Our products flow through Hillman's hub-and-spoke distribution network (not

through our customer's

distribution channels).

Our 1,100-member team works in our customer's stores regularly.

Hillman's role varies by customer and ranges from managing the aisle, organizing and cleaning displays, managing inventory, and ordering products.

Over 90% of revenue comes from Hillman-owned brands.

Leading consumer brands with strong recognition

Research driven innovation provides differentiation with IP protection (168 issued patents).

Enables Hillman to implement feedback from the DIYer, pro, and retailer customers.

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Disclaimer

Hillman Solutions Corporation published this content on 07 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2022 14:43:03 UTC.