Clarus : Corporate Presentation

CORPORATE PRESENTATION

August 2020

IMPORTANT CAUTIONS REGARDING

FORWARD LOOKING STATEMENTS

Please note that in this presentation we may use words such as "appears," "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, the overall level of consumer demand on our products; general economic conditions and other factors affecting consumer confidence, preferences, and behavior; disruption and volatility in the global currency, capital, and credit markets; the financial strength of the Company's customers; the Company's ability to implement its business strategy, the ability of the Company to execute and integrate acquisitions; changes in governmental regulation, legislation or public opinion relating to the manufacture and sale of bullets and ammunition by our Sierra segment, and the possession and use of firearms and ammunition by our customers; the Company's exposure to product liability or product warranty claims and other loss contingencies; disruptions and other impacts to the Company's business, as a result of the COVID-19 global pandemic and government actions and restrictive measures implemented in response; stability of the Company's manufacturing facilities and suppliers, as well as consumer demand for our products, in light of disease epidemics and health-related concerns such as the COVID-19 global pandemic; the impact that global climate change trends may have on the Company and its suppliers and customers; the Company's ability to protect patents, trademarks and other intellectual property rights; any breaches of, or interruptions in, our information systems; fluctuations in the price, availability and quality of raw materials and contracted products as well as foreign currency fluctuations; our ability to utilize our net operating loss carryforwards; changes in tax laws and liabilities, tariffs, legal, regulatory, political and economic risks; and the Company's ability to declare a dividend. More information on potential factors that could affect the Company's financial results is included from time to time in the Company's public reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this presentation are based upon information available to the Company as of the date of this presentation, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this presentation.

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W E I N N O VAT E & A C C E L E R AT E

"SUPER FAN" BRANDS

What is a "Super Fan" brand?

• Leading market share in at least one product
• History of innovation
• 100% brand awareness among core, activity-based consumer
• Untapped go-to-market potential

What is our "Innovate & Accelerate" strategy?

Develop next-generation,world-class products while driving brand awareness & expanding product categories & distribution without losing the core user.

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WHAT IS CLARUS?

WHO WE ARE

WHAT WE DO

HOW WE DO IT (THE CLARUS PLAYBOOK)

WHAT WE

DON'T DO

Global company focused on Super Fan brands in the outdoor & consumer industries

Identify, acquire & grow Super Fan brands that have a long history with the core user, but have not reached full potential.

Enhance brand awareness across a wider user base, while protecting core identity.

Accelerate product innovation	Expand into new categories
Drive product awareness	Strengthen go-to-market strategies
Bring capital investment	Provide disciplined management

Create new brands

Buy brands to extract synergies

Acquire "copycat" brands

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EXECUTING ON OUR GOALS SINCE 2016

	OUR GOALS		STRONG RESULTS
1	Accelerate Brand Growth Via Product	55%	1170 bps
Innovation, Increased Brand Awareness &		2016 - 2019 Revenue	2016 - 2019 Adj.
	Excellent Awareness		Growth	EBITDA Expansion
			Capital Deployed
2	Improve Profitability Via Gross Margin		$12.1M	~$80M
Expansion and Operating Expense Leverage
		Share Repurchases Under	Mergers & Acquisitions
			Repurchase Program	Since 2016
			Since 2016
3	Deploy Capital in Ways That Accelerate Our	$0.025
Growth & Drive Shareholder Returns		Quarterly Dividend Commenced in Aug 2018

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LARGE ADDRESSABLE MARKETS IN GROWING VERTICALS

$12.7B

Global Outdoor Apparel Market

5.6% Projected Five-Year CAGR

$4.0B

Global Footwear Market

2.6% Projected Five-Year CAGR

$1.4B

Global Rock Climbing Market

9.6% Projected Five-Year CAGR

$9.1B

North American Hunting

Equipment Market

1.3% Projected Five-Year CAGR

$3.9B

Global Hard Adventure Sports Market

2.5% Projected Five-Year CAGR

$125.8B

Global Skincare Market

2.9% Projected Five-Year CAGR

Sources: Technavio and Statista.	NASDAQ: CLAR | 6

CLARUS BRANDS TODAY

GLOBAL LEADERS IN INNOVATIVE OUTDOOR PRODUCTS¹

Leading mountain activity-based	Go-to brand for target shooting,	Global leader in alpine and snow	Niche leader in all-natural,
long-range hunting & reloading
equipment brand	safety hardgoods and equipment	performance skin care products
bullets

	Diversified		Significant
	Business Model		Global Reach
•	30+ product categories	•	Sold in 50+ countries
•	Footwear & Apparel ~14% of sales	•	~50% of sales outside U.S.

		North America
	Mountain	59%
Climb	34%
31%
		Europe
		24%
Ski	Sport
13%	ROW
22%		17%

Year-Round Product	External
Portfolio	Sourcing
• Seasonal diversification of business	• Successful shift to 75-80%
• Front & center with retailer &	outsourcing strategy in 2018 to
improve gross margins
customer year round
	Third-Party
	Production
	75-80%
Spring /
Summer
47%
Fall / Winter	Owned Production
53%
in U.S.
	20-25%

¹Based on Black Diamond Equipment, PIEPS & Sierra Bullets 2019 sales.

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HERITAGE:

1957

TARGET CUSTOMER:

Climbers

Backcountry Skiers

Alpinists

Trail Runners

Snow Safety Pros

Outdoor Enthusiasts

UNLEASHING THE BLACK DIAMOND BRAND

• Iconic & leading lifestyle & sport-defining brand
• Rich history in the outdoor space of technical innovation & sales growing at a 12% CAGR since 1989
• Accelerating industry-leading product innovation & development capabilities
• • Investing in new product categories - footwear & apparel
  • Differentiated product performance elements - stretch rainwear, ultra lightweight apparel
• Significant opportunities for continued global growth expected across wholesale & DTC

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500+ AWARDS in the past 10

YEARS

AWARDS 2020-2016

INDUSTRY-LEADING PRODUCT

INNOVATION

Performance Footwear

Performance Lifestyle

Rechargeable Lighting

Forged Denim

Distance 4 Vest

Logowear

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HERITAGE:

1972

PIEPS - AVALANCHE TRANSCEIVER TECHNOLOGY FOUNDER & MARKET LEADER

• Premium avalanche safety products - transceivers & probes, shovels, packs & safety equipment
• Semi-autonomous,discrete brand but closely-linkedto Black Diamond
• IP, specifically avalanche technology, supports Black
  Diamond's focus on developing electronic technology & applications portfolio
• • Played key role in development of JetForce avalanche airbag technology
• Expect to grow PIEPS' sales in markets & geographies covered by Black Diamond's global distribution platform
• Historically generated higher gross margin than typical hard goods brands

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HERITAGE:

1947

Diverse Customer Base

Green Box

OEM

SIERRA - DEDICATED TO MANUFACTURING THE MOST ACCURATE BULLETS IN THE WORLD

• SIERRA is an iconic American manufacturer of bullets, 70-plus year operating history
• Acquired Aug 2017, attractive allocation of capital
• Strong recurring revenue & ~95% free cash flow¹ conversion
• Adjacent outdoor brand benefiting from our outdoor platform
• Significant opportunities to accelerate growth via product innovation, new category expansion, distribution, sales & marketing

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¹Defined as net cash provided by operating activities less capital expenditures.

SKINOURISHMENT - PLANT-BASED,

SYNTHETIC-FREE, SUSTAINABLE, PERFORMANCE SKINCARE

• Skin performance & protection: lotion (the original lotion bar), lip balm, muscle paste, insect repellent
• Superior efficacy & the highest clean ingredient standard
• New innovations: sunscreen, hand sanitizer & hand soap
• Incredible loyalty from both natural product lovers & athletes (running, cycling, skiing, climbing, lifting, hiking, etc.)
• Top athletes, strong social media, extensive story & content
• Led by consumer brand & marketing industry executive Taylor West (prior roles with KT Tape, Kodiak Cakes, General Mills)

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CLARUS FINANCIAL SUMMARY

TOTAL SALES

10.3% CAGR

$212.1$229.4

$155.3$148.2$170.7

	2015	2016	2017	2018	2019
YoY Growth	(1.9%)	(4.6%)	15.2%	24.3%	8.1%

ADJUSTED EBITDA¹

			111.9% CAGR	$20.8	$22.7
	$1.1		$6.1
	($2.7)
	2015	2016	2017	2018	2019
% Margin	0.7%	N/A	3.5%	9.8%	9.9%

Note: Results are not pro forma for acquisitions or divestitures. ¹See appendix for a reconciliation to this non-GAAP measure.

GROSS PROFIT

			10.3% CAGR	$74.0	$80.3
	$54.2	$43.7	$53.8
	2015	2016	2017	2018	2019
% Margin	34.9%	29.5%	31.5%	34.9%	35.0%

CAPITAL EXPENDITURES

					$4.1
			$2.8	$3.4
		$2.6
	$2.1
	2015	2016	2017	2018	2019
% of Sales	1.4%	1.7%	1.7%	1.6%	1.8%
				NASDAQ: CLAR | 13

COVID-19 ACTION PLAN & PRIORITIES

• OUR PEOPLE

• #1 priority is the health & safety of our employees
• Work-at-homemandates for office employees
• Enhanced safety & health protocols for employees in work functions deemed essential
• "Top Rope Fund" to help with employees experiencing hardships

• PRESERVATION OF BRAND EQUITY

• Represents our lifeblood
• Maintaining product pricing integrity
• Our supply chain is operating well
• Direct-to-consumerbusiness remains strong

• LIQUIDITY

• ~$22M in cash at 6/30/20
• Modest long-term debt of ~$31M (LIBOR+150-225 bps)¹
• Total available liquidity of ~$72M
• $13M of cash preservation activities identified in 2020
• • Re-allocated& eliminated ~$9M in SG&A
  • Postponed ~$2M of non-essential capex
  • Temporarily replaced quarterly cash dividend with stock dividend

¹Net debt to trailing 12-month adj. EBITDA of 0.6x vs. 3x covenant.	NASDAQ: CLAR | 14

14

KEY TAKEAWAYS

• Our brands have generated significant momentum through a focus on product innovation & increased brand awareness, targeted investments & management execution
• Our growth opportunities are expected to be significant thanks to an expanding addressable market, authentic brands & commitment to innovation
• Key financial metrics showing strong improvement
• Financial strength allows for various long-termvalue-enhancing actions - M&A, dividends & stock buybacks

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CONTACT US

Clarus Corporation	Company Contact
2084 East 3900 South	John Walbrecht, President
Salt Lake City, UT 84124	Aaron Kuehne, CAO and CFO
Tel [phone]
www.claruscorp.com	Investor Relations
	Cody Slach, Gateway Investor Relations
	Tel [phone]
	[e-mail]

APPENDIX

Clarus Adjusted EBITDA Reconciliation

		Year Ended December 31,
2019	2018	2017	2016	2015

Net income (loss)	$	18,972	$
Income tax benefit		(8,991)
Other, net		93
Interest expense, net		1,358
Operating income (loss)		11,432
Depreciation		4,550
Amortization of intangibles		3,552
EBITDA	$	19,534	$
Restructuring charge		13
Merger and integration		-
Transaction costs		166
Arbitration award		-
Inventory fair value of purchase accounting		-
Stock-based compensation		2,949

7,301 $

(828)

359

1,339

8,171

4,423

3,873

16,467 $

137

-

503

-

1,049

2,652

1. $

(5,087)

(343)

1,288

(4,815)

2,883

2,376

444 $

160

82

2,088

-

2,098

1,181

(8,978)	$	(88,106)
665		47,692
(533)		(434)
2,876		2,767
(5,970)		(38,081)
2,264		3,039
1,075		1,245
(2,631)	$	(33,797)
1,395		3,375
-		946
290		-
(1,967)		-
-		29,507
227		1,094

Adjusted EBITDA	$	22,662	$	20,808	$	6,053	$	(2,686)	$	1,125

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