[PDF] [PDF] investor presentation - January 2019 - AWS

44 about five below check it out “I went to #fivebelow for the first †adjusted diluted earnings per share for 2012-2014 (see reconciliations in appendix)



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[PDF] investor presentation - January 2019 - AWS

44 about five below check it out “I went to #fivebelow for the first †adjusted diluted earnings per share for 2012-2014 (see reconciliations in appendix)



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investor presentation - January 2019 2

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995,

securities laws.

Non-GAAP Financial Measures

forward looking statements 3 our differentiated experience our powerful store model our vision for growth the numbersour story... read on! 4 4 about below. check it out! 5 investment opportunity leading high growth value retailer benefits from scale compelling new store model long runway for unit growth consistent performance 6 five distinctive growth drivers tween & teen focushandpicked, trend-right, wow products exceptional value $5 & belowdisciplined high growth fun, differentiated shopping experience led by a highly experienced management team 7 tween & teen-focused with broad customer appeal Gen Z 8-14 yr oldsGirls & BoysMillennial / Gen X 24-44 yr oldsParents target customers 8 room. trend-right "wow" products at great value across 8 awesome worlds now. create. candy. style. party. tech. sports. 9 over 750 stores in 33 states

2017 revenue

new stateentrynet new storesyear endcount

2012+52244

2013+60304

2014+62366

2015+71437

2016+85522

2017+103625

2018e+125~750

10 growth led by experienced leadership

Chairman & Co-FounderCo-founded 2002Zany Brainy,

Caldor/May Company

President

2014Walmart, Lenox,

Toys 'R Us

& TreasurerEagle's Eye

Chief Administrative

Ascena Retail Group, Charming Shoppes

EVP, Merchandising

Patriarch Partners,

Toys 'R Us, Lenox,

Linens N Things, Macy's

EVP, Retail Operations

Home Depot

EVP, Marketing

& Strategic InitiativesEddie Bauer,

Ann Taylor

tom vellios joel anderson ken bull eric specter michael Romanko george hill david makuenexecutiveroleyear joinedexperience 2005
2014
2015
2017
2011
11 11 our differentiated experience. amazing! 12 knows life is way better when you're free to in an amazing experience unlimited possibilities filled with priced so low, you can always sayto the newest , coolest stuff! yes! purpose-driven value retailer 13 unlimited possiblities driven by the newest, coolest stuff "craze" trends licensed trends & brands our own on-trendstuff (relevancy) 14 an amazing, fun experience iconic fixtures that encourage interaction with products unique and engaging in-store atmosphere fun and dynamic with friendly "wow crews" and upbeat music easy-to-navigate with vibrant signs and low sightlines across the store no one else does what we do in an

8,000 sq. ft. store!

15 we deliver our purpose with people! Hi!

Welcome to Five Below!

16 so much happiness optimistic people I positive and such to stock new stuff our customers us and say yes Frank time to look for a phone case and came out with a rug and a disco Ashley

Krystal

the washing machine. @DCinthecity @Dibble_Dabbles @JennlovesSteven 17 17 our powerful store model. WHERE

THE ACTION IS!

18 located in high traffic centers 45%
55%
Five Below visit came after another stop in the centerFive Below visit was the first stop in the shopping center • currently lease all store locations. • average 8,000 sq. ft. per store. • majority 10-year initial terms with options to extend. 19 proven successacross diverse markets semiruralsuburbanurban • Philadelphia, PA • Washington D.C. • New York, NY • Chicago, IL• Redlands, CA • Canton, OH • Pasadena, TX • Greensboro, NC• Dover, DE • Tupelo, MS • Chillicothe, OH • Lake City, FL • Chestnut St, PA (Philadelphia DMA)•Pasadena, TX (Houston DMA)• Lake City, FL (Jacksonville DMA) 20 $1,928 2012
25%
$1,885 2013
25%
$1,976 2014
24%
$1,950 2015
24%
$1,986~$2,100

20162017e24%~25%

best in class new store metrics (1) dollars in thousands year onesales

4-wall store

EBITDA

150%

Average

R.O.I.

~$300K Low

Average Net

Investment

(3) ~$450K strong average store 4-wall

EBITDA

(2) paybackperiod of less than

1 year!

21
consistent store performance across fLeet in FY 2017 by region (1) by class (1)

2002-2006

(45)2,371

2007-2009

(49)2,111 2010
(40)2,043 2011
(51)2,165 2012
(52)2,150 2013
(62)2,128 2014
(62)2,106 2015
(74)2,099 grand total (521)2,120 2016
(86)2,005

New England(30)South(69)2,049

2,373 2,112

2,0361,9122,0752,0592,045Upstate

NY/PA (30)NY Metro (41)Philly Metro (55)Balt/DC (48)Rust Belt(86)Midwest (72)Eastern

Seaboard

(33)Southeast (57)1,939 2,761 2,120

Grand Total

(521) 22
22
the numbers. we"re all about results! 23
dollars in millions. 2013
$535 $60.8 $36.9 $0.682012 $419 $49.5 $27.4 $0.512014 $680 $77.9 $48.6 $0.892015 $832 $92.9 $57.7 $1.0520162017 $1,000 $1,278 $114.0 $71.8 $102.5 $1.30 $1.845YR CAGR (1) 25%
26%
30%
29%
net sales operating income net income eps $157.4 24
over a decade of positive annual comps comp avg. transaction +6.9% +4.8% +1.4% +1.8% -0.4% +5.8% avg. ticket +0.2% -0.8% +2.0% +1.6% +2.4% +0.7% transactionsdrive comps! year storecount (ye) comp

200767+5.4%

200882+5.8%

2009102+12.1%

2010142+15.6%

2011192+7.9%

201720162015201420132012

+7.1% +4.0% +3.4%+3.4% +2.0%+6.5% 25
strong business model drives self-funded growth free cash flow (2) capex (1) • modest capital expenditures for stores • debt free $5$29 $35 $62 • ample liquidity dollars in millions. $20 $26 $21 $32 $27 $53 $45 $34$50 $8$20 $3$3 $3 $6 $5$13 $6 $5 stores includes new D.C. includes new $68 $100 26
26
our vision for growth. future"s so bright... 27
750+
stores & growing!

20/20 vision for continued disciplined growth thru 2020

20% sales growth 20%+ net income growth 28
strategic growth priorities reinvest in "wow" merchandisegrow our store base - our largest growth driver scale systems & infrastructureincrease brand awareness build our team & culture 123
5 4 29

1 - grow our store base

67215625

YEYE ~750 YE

125new stores!

• entered 16 new states since 2012 • continued focus on densifying existing markets 33
rd state 2018
1 st state 2002
30

1 - grow our store base

67215625

~7502,500

YEYEYEpotential

• over a decade of growth • cover continental U.S. • largest states planned to be CA, TX, FL, NY and PA

At least 2,500 store potential

1/4 ofthe way there!

2,000 31
low-cost operating philosophy

2 - reinvest in "wow" merchandise

quotesdbs_dbs21.pdfusesText_27