Simply Good Foods : Q1 2023 Earnings Presentation

First Quarter Fiscal Year 2023 Earnings Conference Call & Webcast Presentation

January 5, 2023

Disclaimer

Forward Looking Statements

Certain statements made herein are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by or include words such as "will", "expect", "intends" or other similar words, phrases or expressions. These forward-looking statements include the expected effects from the COVID-19 outbreak, statements regarding the integration of Quest, future plans for the Company, the estimated or anticipated future results and benefits of the Company's future plans and operations, future capital structure, future opportunities for the Company, and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties and the Company's business and actual results may differ materially. These risks and uncertainties include, but are not limited to the effect of the COVID-19 outbreak on the Company's business, suppliers (including its contract manufacturing and logistics suppliers), customers, consumers and employees along with disruptions or inefficiencies in the supply chain resulting from any effects of the COVID-19 outbreak; achieving the anticipated benefits of the Quest acquisition; difficulties and delays in achieving the synergies and cost savings in connection with the Quest acquisition; changes in the business environment in which the Company operates including general financial, economic, capital market, regulatory and political conditions affecting the Company and the industry in which the Company operates; unforeseen business disruptions or other effects due to current global geopolitical tensions, including relating to Ukraine; changes in consumer preferences and purchasing habits; the Company's ability to maintain adequate product inventory levels to timely supply customer orders; changes in taxes, tariffs, duties, governmental laws and regulations; the availability of or competition for other brands, assets or other opportunities for investment by the Company or to expand the Company's business; competitive product and pricing activity; difficulties of managing growth profitably; the loss of one or more members of the Company's or Quest's management team; and other risk factors described from time to time in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) filed with the U.S. Securities and Exchange Commission from time to time. In addition, forward-looking statements provide the Company's expectations, plans or forecasts of future events and views as of the date of this communication. Except as required by law, the Company undertakes no obligation to update such statements to reflect events or circumstances arising after such date and cautions investors not to place undue reliance on any such forward-looking statements. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication.

Non-GAAP Financial Measures

This presentation includes certain financial measures not presented in accordance with generally accepted accounting principles ("GAAP") including, but not limited to, Adjusted EBITDA and certain ratios and other metrics derived there from and Adjusted Diluted EPS. 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 financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, earnings per share, cash flows from operations or other measures of profitability, liquidity or performance under GAAP. You should be aware that the presentation of these measures may not be comparable to similarly-titled measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are set forth in the Press Release dated January 5, 2022. We believe (i) these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the financial condition and results of operations of the Company to date; and (ii) that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing 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.

Third Party Marks

All rights in third party marks are owned by third parties and such marks and related marks are used herein merely for information purposes. The parties claim no rights in or to such marks and related marks, nor any endorsement or approval or any message herein by such third parties.

1

JOSEPH E. SCALZO

PRESIDENT AND CHIEF EXECUTIVE OFFICER

2

Today's Speakers and Agenda

Speakers

Mark Pogharian

VP, Investor Relations

Joe Scalzo

President & Chief Executive Officer

Shaun Mara

Chief Financial Officer

Joe Scalzo

President & Chief Executive Officer

Agenda

• Introduction
• Overview and Q1 Highlights
• Business Update
• Financial Summary
• Fiscal Year 2023 Outlook
• Q&A

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First Quarter Fiscal 2023 Overview

• Simply Good Foods fiscal Q1 2023 net sales increased +7.0%
• • As expected, retail takeaway outpaced net sales growth
• Fiscal first quarter 2023 retail takeaway about 14% in combined measured and unmeasured channels
• • Strong Quest performance across key forms, customers and channels
  • Atkins e-commerce growth resulted in about 4% POS growth in combined measured and unmeasured channels
• Net income of $35.9 million versus $21.2 million last year. The year ago period was impacted by the fair value change of private warrant liabilities of $17.3 million
• Gross margin of 36.9% declined 450 bps versus the year ago period, slightly higher than expectations
• • Ingredient and packaging cost inflation, as well as trade investment, in line with

expectations, logistics and contract manufacturer costs greater than estimates

• • Customer service performance continues to improve and nearing at target levels
• Fiscal Q1 2023 Adjusted EBITDA1 of $60.8 million, versus $65.6 million in the year ago period
• • Sales growth and SG&A cost control offset by higher supply chain costs
• Focused on our plans and in position to deliver on our 2023 net sales Adjusted EBITDA objectives

1Adjusted EBITDA is a non-GAAP financial measure. Please refer to "Reconciliation of EBITDA and Adjusted EBITDA" in the earnings release dated January 5,	4
2023, available on our website for a presentation of the most directly comparable GAAP financial measure and an explanation and reconciliation of this non-
GAAP financial measure.