SiteOne Landscape Supply : Second Quarter 2023 Earnings

Second Quarter 2023 Earnings

Disclaimer

Forw ard-Looking Statements

This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forw ard-looking statements may include, but are not limited to, statements relating to our 2022 Adjusted EBITDA outlook and our share repurchase program. Some of the forward-looking statements can be identified by the use of terms such as "may," "intend," "might," "w ill," "should," "could," "would," "expect," "believe," "estimate," "anticipate," "predict," "project," "potential," or the negative of these terms, and similar expressions.

You should be aw are that these forward-looking statements are subject to risks and uncertainties that are beyond our control. Further, any forw ard-looking statement speaks only as of the date on w hich it is made, and w e undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on w hich it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge fromtime to time that may cause our business not to develop as w e expect, and it is not possible for us to predict all of them. Factors that may cause actual results to differ materially fromthose expressed or implied by the forward-looking statements include, but are not limited to, the follow ing: cyclicality in residential and commercial construction markets; general economic and financial conditions, including a prolonged economic recession; seasonality of our business and its impact on demand for our products; w eather and climate conditions; prices for the products w epurchase may fluctuate; market variables, including inflation and rising interest rates; increases in operating costs; public health emergencies such as the COVID-19 pandemic; public perceptions that our products and services are not environmentally friendly or that our practices are not sustainable; competitive industry pressures, including competition for our talent base; supply chain disruptions, product or labor shortages, and the loss of key suppliers; inventory management risks; ability to implement our business strategies and achieve our growth objectives; acquisition and integration risks, including increased competition for acquisitions; risks associated with our large labor force and our customers' labor force and labor market disruptions; retent ion of key personnel; construction defect and product liability claims; impairment of goodw ill; adverse credit and financial markets events and conditions; inefficient or ineffective allocation of capital; credit sale risks; performance of individual branches; climate, environmental, health and safety law s and regulations; hazardous materials and related materials; law s and government regulations applicable to our business that could negatively impact demand for our products; cybersecurity incidents involving our systems or third-party systems; failure or malfunctions inour information technology systems; security of personal information about our customers; intellectual property and other proprietary rights; unanticipated changes in our tax provisions; threats fromterrorism, violence, uncertain political conditions, and geopolitical conflicts such as the ongoing conflict between Russia and Ukraine; financial institution disruptions; risks related to our current indebtedness and our ability to obtain financing in the future; risks related to our common stock; and other risks, as described in Item 1A, "Risk Factors", and elsew here in our Annual Report on Form 10-K for the fiscal year ended January 1, 2023, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-K.

Non-GAAP Financial Information

This presentation includes certain financial information, not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAPfinancial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the information contained in the historical financial information of the Company prepared in accordance with U.S. GAAPthat is set forth herein.

We present Adjusted EBITDA in order to evaluate the operating performance and efficiency of our business. Adjusted EBITDA represents EBITDA as further adjusted for items permitted under the covenants of our credit facilities. EBITDA represents our Net income (loss) plus the sum of income tax (benefit) ex pense, interest expense, net of interest income, and depreciation and amortization. Adjusted EBITDA represents EBITDA as further adjusted for stock-based compensation expense, (gain) loss on sale of assets, and termination of finance leases not in the ordinary course of business, financing fees, as well as other fees, and expenses related to acquisitions and other non -recurring (income) loss. Adjusted EBITDA does not include pre- acquisition acquired Adjusted EBITDA. Adjusted EBITDA is not a measure of our liquidity or financial performance under U.S. GAAP and should not be considered as an alternative to Net income, operating income or any other performance measures derived in accordance with U.S. GAAP, or as an alternative to cash flow fromoperating activities as a measure of our liquidity. The use of Adjusted EBITDA instead of Net income has limitations as an analytical tool. Because not all companies use identic al calculations, our presentation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies, limiting its usefulness as a comparative measure. Net debt is defined as long-term debt (net of issuance costs and discounts) plus finance leases, net of cash and cash-equivalents on our balance sheet. Leverage Ratio is defined as Net debt to trailing tw elve months Adjusted EBITDA. Free Cash Flow is defined as Cash Flow fromOperating Activities, less capital expenditures. We define Organic Daily Sales as Organic Sales div ided by the number of Selling Days in the relevant reporting period. We define Organic Sales as Net sales, including Net sales from new ly -opened greenfield branches, but excluding Net sales fromacquired branches until they have been under our ow nership for at least four full fiscal quarters at the start of the fiscal year. Selling Days are the number of business day s, excluding Saturdays, Sundays, and holidays, that SiteOne branches are open during the relevant reporting period.

2

Conference call agenda

Introduction

John Guthrie, CFO

Business Update

Doug Black, Chairman and CEO

Financial Update

John Guthrie, CFO

Development Update

Scott Salmon, EVP Strategy & Development

Closing & Outlook

Doug Black, Chairman and CEO

Q&A

3

Company and industry overview

• Largest and only national full product line wholesale distributor of landscape supplies
• $25 billion highly fragmented market(1)
• More than four times the size of next competitor and only ~16% market share(1)
• Serving residential and commercial landscape professionals
• Complementary value-addedservices and product support
• Approximately 155,000 SKUs
• Over 650 branches and four distribution centers covering 45 U.S. states and six Canadian provinces(2)

Balanced by product and end markets (FY22)

	Outdoor
Control	Lighting
Products	4%
7%	Irrigation	Repair & Upgrade	Maintenance
Nursery
28%	29%	36%
8%
Landscape
Accessories
12%
Fertilizer & Other	Hardscapes	New
24%
17%	Construction
		35%

(1) As of year end 2022. Source: Management estimates, Company data, independent 3rd party support

4

(2) Branch count as of Q2 '23; completed transition in April '23 to operate single West distribution center in Goodyear, AZ

SiteOne is built for continued growth and margin enhancement

Current strategy

• Leverage strengths of both large and local company
• • Fully exploit our scale, resources and capabilities
  • Execute local market growth strategies
  • Deliver superior value to our customers and suppliers
  • Close and integrate high value-added acquisitions
  • Entrepreneurial local area teams supported by world-class functional support
• Drive commercial and operational performance
• • Category management
  • Supply chain
  • Salesforce performance
  • Operational excellence
  • Marketing and Digital

Value creation levers

1. Organic growth
2. Margin expansion
3. Acquisition growth

5