Simply Good Foods : Q3 2023 Earnings Presentation

Third Quarter Fiscal Year 2023 Earnings Conference Call & Webcast Presentation

June 29, 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, EBITDA, 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 June 29, 2023. 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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1

JOSEPH E. SCALZO

CHIEF EXECUTIVE OFFICER

2

Today's Speakers and Agenda

Speakers

Mark Pogharian

VP, Investor Relations

Joe Scalzo, CEO

Geoff Tanner, President,

COO and CEO Elect

Shaun Mara, CFO

Agenda

• Introduction
• Business Overview
• Quest and Atkins Update
• Initial Observations
• Financial Summary
• Fiscal Year 2023 Outlook
• Q&A

3

Third Quarter Fiscal 2023 Business Overview

• Q3 retail takeaway and financial performance greater than forecast
• • POS growth of 11%1 resulted in higher net sales growth versus our estimate
  • Q3 retail takeaway, as expected, outpaced net sales growth due to the prior year retail customer inventory build
• Q3 net sales increased 2.6% to $324.8 million
• • Growth driven by N. America performance, International about the same as the year ago period
  • Strong Quest momentum continued
• Net income of $35.4 million versus $38.8 million last year
• Gross margin 36.7%; exceeded our estimate
• • Decline of 80 bps versus last year due to higher ingredient and packaging costs
  • Inflation eased substantially versus the first half of the year
• Adjusted EBITDA2 of $66.6 million was greater than our forecast and increased 5.3% versus last year
• • Better than expected growth was due to higher net sales and gross profit as well as SG&A cost control
  • Provides us with flexibility to invest in brand building initiatives in Q4
• July 7, 2023 succession plan on track:
• • Geoff Tanner to become Chief Executive Officer
  • Joe Scalzo will be appointed as Executive Vice Chair of the Board of Directors

1Combined IRI MULO + C-store and unmeasured channel estimate, 13 weeks ending May 28, 2023

2Adjusted EBITDA is a non-GAAP financial measure. Please refer to "Reconciliation of EBITDA and Adjusted EBITDA" in the earnings release dated June 29, 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 measure4.