Simply Good Foods : Q4 2022 Earnings Presentation

Fourth Quarter and Full Fiscal Year 2022

Earnings Conference Call & Webcast Presentation

October 21, 2022

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 October 21, 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

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JOSEPH E. SCALZO

PRESIDENT AND CHIEF EXECUTIVE OFFICER

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Today's Speakers and Agenda

Speakers

Mark Pogharian

VP, Investor Relations

Joe Scalzo

President & Chief Executive Officer

Todd Cunfer

Chief Financial Officer

Joe Scalzo

President & Chief Executive Officer

Agenda

• Introduction
• Full Year and Q4 Overview
• Business Update
• Financial Summary
• Fiscal Year 2023 Outlook
• Q&A

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Simply Good Foods Company Full Year Fiscal 2022 Overview

• Delivered solid full year fiscal 2022 results in a challenging operating environment
• • Net sales growth of 16.2%, slightly greater than expectations
  • Adjusted EBITDA increased about 13%, in line with estimates; marketing expense up nearly 9% versus last year
• Fiscal 2022 retail takeaway of 15.5%1in combined measured and unmeasured channels exceeded our expectations
• • Strong Quest performance across key forms, customers and channels throughout the year
  • Atkins e-commerce growth resulted in mid single-digit POS growth in combined measured and unmeasured channels
• Supply chain performed well, and customer service levels improved during the year
• • Customer service performance approached target levels
  • Full year fiscal 2022 gross margin declined 260 basis points primarily due to ingredient and packaging cost inflation
• Solid cash flow provides financial flexibility to support future growth, debt reduction and opportunistic share buy back
• Executed well against our priorities and positioned well as we enter fiscal 2023
• • While early, F1Q23 retail takeaway trends are improving; 6-weeks ending October 8th POS growth 13.9%, in the combined measured and unmeasured channels
  • Despite a slowing economy, we are cautiously optimistic as our brands are well developed with mid-to-upper

income households, there is not a meaningful private label alternative, and we are well positioned in mass retail channels

• • Anticipate fiscal 2023 Net Sales growth and Adjusted EBITDA increase to be similar
  • Expect gross margin to decline, although at a lower rate than fiscal 2022. Most of the decline will occur in F1Q23 as gross margin in the year ago period increased given that we had yet to experience significant supply chain cost inflation
  • Price increase effective late in F4Q22 in place to mostly mitigate current higher supply chain costs
• Focused on delivering long-term, sustainable net sales and earnings growth

1IRI MULO + C-store + Company estimated unmeasured channel POS, 52-weeks ending 8/28/22

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