G R E AT N E S S I S O U T T H E R E
CANADA TO THE WORL D CELEBRATING OUR HER HERIT ITA AGE
A TRULY TRULY GLOBAL BRAND
INSPIRING ADVENTURES AD VENTURES
BEST EXPRESSION OF SPRING TO-DATE
Opening of Canada Goose Arctic Gallery at Canadian Museum of Nature
People from 31 countries visited our stores in Toronto and New York
Three-stage expedition across the Canadian Arctic
Strong performance across channels and markets
E XC E P T I O N A L G R O W T H REVENUE (C$ in millions)
ADJUSTED EBITDA(1) (C$ in millions / % margin)
39%
ADJUSTED NET INCOME(1) (C$ in millions / % of sales)
49%
+
18.7%
43%
+
+
20.1% 10.4% $81
$291
(in C$)
47%
+
$404
ADJUSTED EPS(2)
$54
10.9% $44 $0.43
$30 $0.30
FY2016 (1)
FY2017
FY2016
A reconciliation of Adjusted EBITDA and Adjusted Net Income to IFRS mea
FY2017 rs in the Appendix to this presentation.
FY2016
FY2017
FY2016
FY2017
EXECUTING ON OUR GROWTH STRATEGIES 1
MARKET DEVELOPMENT STRATEGY
360 marketing plans and experiential activations e-Commerce in seven countries and three new stores in FY2018 °
2
CONTINUED GLOBAL GROWTH +25% growth within each geographic segment in FY2017 Significant runway for our brand in existing and new markets
3
4
ENHANCING PRODUCT OFFERING
DRIVING HIGHER MARGINS
Successful introduction of the new Spring 2017 collection Introduced knitwear Fall 2017
+139 bps y.o.y. Adjusted EBITDA margin expansion in FY2017 Exceptional profitability within our DTC channel
OU R STORY
60 YEARS IN THE MAKING
SAM
DAVID
DANI
A U T H E N T I C B R A N D
FIELD-TESTED IN THE COLDEST PLACES ON EARTH
TACTICAL AND INDUSTRIAL HERITAGE
GOOSE PEOPLE
FILM AND ENTERTAINMENT
POLAR BEARS INTERNATIONAL
RESOURCE CENTRES PROGRAM
MADE IN CANADA
HERITAGE
QUALITY
IT MATTERS
The country from which we draw our inspiration and expertise
Aggressively investing in producing premium, high quality products
Sets us apart on the international stage and in the minds of our customers
B E L O V E D A N D C O V E T E D G L O B A L LY
82% LOVE TH EIR JACKETS
Source: Consumer survey conducted in 2016.
84% W I L L L I K E LY PURCH ASE AGAIN
(1)
C A N A D A G O O S E T O D AY
RECOGNIZED FOR SUPPORTING
$404 MILLION
Canadian apparel manufacturing
FY2017 revenue
>2,000 EMPLOYEES
CHANNEL MIX
across manufacturing, sales and corporate
71% wholesale | 29% DTC
OUR PRODUCTION INFRASTRUCTURE
SOLD IN 37 COUNTRIES
5 in-house facilities and 37 subcontractors
~2,500 points of distribution | 8 online stores | 2 retail stores
G R O W T H S T R AT E G I E S
O U R G R O W T H S T R AT E G I E S 1
2
EXECUTE OUR PROVEN MARKET DEVELOPMENT STRATEGY ACROSS ALL MARKETS
STRENGTHEN AND EXPAND GEOGRAPHIC FOOTPRINT IN NEWER AND NASCENT MARKETS
3
4
ENHANCE AND EXPAND PRODUCT OFFERING
CONTINUE TO FOCUS ON OPERATIONAL EXCELLENCE TO DRIVE HIGHER MARGINS
1
M A R K E T D E V E L O P M E N T S T R AT E GY A D VA N C I N G M A R K E T S A L O N G T H E M AT U R I T Y C U R V E
A
B
C
BUILD BRAND AWARENESS
ENHANCE WHOLESALE NETWORK
E-COMMERCE-LED DTC ROLLOUT
Established brand power
Strategically expanding and deepening our network of best-in-class retail partners
An unfiltered window into our brand, deployed as markets become more developed
Disciplined amplification
1 A
B U I L D B R A N D A WA R E N E S S
A BRAND LIKE NO OTHER
INTEGRATED MARKETING
ORGANIC SEEDING
GOOSE PEOPLE
GLOBAL CAMPAIGNS
A L W A Y S ON
FILM
COLLABS
DIGITALFIRST A P P R O A C H
INSIGHTS & ROI
AUTHENTIC STORY PEOPLE LOVE
AMPLIFYING THE MESSAGE
1B
ENHANCE WHOLESALE NET WORK FROM ORDER TAKERS TO STRATEGIC PARTNERS
FY2014 AND PRIOR
FY2015 AND FY2016
FY2017 AND ONWARD
Commission based agent model
Transitioned key accounts in-house
Global in-house transition complete
“Generalist” approach
Developed “specialist” capabilities
Enhance account management
Broad range of retail partners
Retail rationalization
Deeper strategic partnerships
Limited shop-in-shop footprint
Refined shop-in-shop concept
Shop-in-shop rollout
Demand consistently outpaced supply
Recommended assortments
Increase three season penetration
Focused on core winter products
Extending offering beyond the parka
New line extensions Alignment and planning with DTC
1C
E-COMME RCE-LED DTC ROLLOUT E-COMMERCE
RETAIL STORES
August 2014
September 2015
October 2016
September 2016
September 2016
November 2016
LAUNCHING IN FY2018
OPENING FALL 2017
* Indicates sites have opened
$0 to $115MM in less than three years (29% of FY2017 sales)
2
PURSU E CONTINUE D GLOBAL GROW TH SUCCESSFUL TRACK RECORD WITH STRONG MOMENTUM
Canada revenue
United States revenue
Rest of World revenue
(C$ in millions)
(C$ in millions)
(C$ in millions)
$155 $132 $95 $73
$76
$57
FY2015
FY2016
FY2017
Leveraging high brand awareness of 76% to drive exceptional DTC results and continued wholesale growth
Further penetration opportunity remains
FY2014
FY2015
FY2016
FY2017
Continued focus on increasing national brand awareness towards the level achieved in Canada
Deepening wholesale penetration across all regions, supported by expanding lighter-weight offering
$86
$92
FY2015
FY2016
$46
$34
FY2014
$117
$103
Strong performance within the DTC channel both online and in the store
FY2014
FY2017
EUROPE Present in every major Western European market Focus on deeper wholesale partnerships and e-commerce rollout ASIA Recently partnered with world-class distributors to accelerate growth in our most established markets – Japan and Korea Limited presence in China and other large markets
2
PURSU E CONTINUE D GLOBAL GROW TH A D VA N C I N G O U R M A R K E T S A L O N G T H E M AT U R I T Y C U R V E
Nascent
Early stage
Mid stage
More developed
1
2
PURSU E CONTINUE D GLOBAL GROW TH L A R G E P E N E T R AT I O N U P S I D E AC R O S S M A R K E T S
Select examples of market penetration by country for Fall / Winter products (Unit sales per 1,000 addressable customers(1))
Canada 35.2
FY2016 penetration FY2013 penetration
Achieving 50% of Canadian penetration would triple unit demand within Fall and Winter categories Japan and South Korea 9.5 Western Europe 3.5
United States 5.2
Addressable customers
Additional white space in earlier stage markets such as China and Russia Note:
Western Europe includes Sweden, Denmark, Norway, Finland, France, United Kingdom, the Netherlands, Spain, Germany, Austria, Belgium and Italy.
3
ENHANCE PRODUCT OFFERING ELEVATE WINTER
EXPAND SPRING AND FALL
EXPAND BEYOND OUTERWEAR
Strengthen brand loyalty, drive market penetration and expand geographic appeal
4
DRIVE HIGHER MARGINS
CHANNEL MIX
PRICE OPTIMIZATION
IN-SOURCE MANUFACTURING
OPERATING LEVERAGE
Expand DTC channel in more established markets
Capture full value of our products
Optimize manufacturing mix to capture gross margin
Invested ahead of our growth in design, infrastructure and DTC
+304 bps Adjusted EBITDA(1) margin expansion from FY2015 to FY2017
COMPELLING GROWTH S I G N I F I C A N T R U N W AY A L O N G M U LT I P L E V E C TO R S 1
Canada and the United States
Rest of World
STRENGTHEN AND EXPAND GEOGRAPHIC FOOTPRINT
C$287mm
Adj. EBITDA(1) margin of 20.1%
OPERATIONAL EXCELLENCE TO DRIVE HIGHER MARGINS 4
Adj. EBITDA(1) margin of 10.4%
$106mm
C$117mm C$46mm
Three seasons
Toronto New York City
DTC-only luxury brand margins
Authentic lifestyle brand
15 – 20 retail stores
Canada United States United Kingdom France
Fiscal 2014 Fiscal 2017 Future potential
100+ retail stores
Increase online penetration Note:
Axes are not to scale. Dollar figures represent revenue.
E-COMMERCE-LED DTC ROLLOUT 2
Retail stores
ENHANCE AND EXPAND PRODUCT OFFERING
Mass market brand
3
FINANCIALS
SUMMARY FINANCIAL HIGHLIGHTS
Exceptional revenue growth potential driven by multiple vectors with significant runway Geographic growth in new and existing markets, channel diversification and product expansion
Powerful business model with improving margin profile and strong earnings growth Leveraging operational excellence to expand Adjusted EBITDA margins
Highly visible and seasonal revenue model Provides ability to invest ahead of growth
E XC E P T I O N A L G R O W T H Revenue by channel
Revenue by geography
(C$ in millions)
(C$ in millions)
Constant FX growth 39.0%
Constant FX growth
25.2%
41.6%
39.0%
25.2%
41.6%
$404 $115
$291 $33
$218
FY2015
$92
$86
$258
$132
$103
$289 $57
FY2016 Wholesale
$117
$291 $218
$8 $210
$404
FY2017 DTC
$76
$95
FY2015
FY2016
Canada
United States
$155
FY2017 Rest of World
Consistent growth across channels, geographies and products
POWERFUL BUSINESS MODEL WITH IMPROVING MARGIN PROFI LE Gross profit
SG&A
(C$ in millions / % margin)
DTC*
4%
* % of revenue
40.6% $89 FY2015
(C$ in millions / % of sales)
11%
29%
50.1%
52.5%
$146
27.2%
$212
$59 FY2016
FY2017
FY2015
Shift in mix towards higher margin DTC sales Price optimization
Adjusted EBITDA(1)
Adjusted Net Income (1)
(C$ in millions / % margin)
17.0%
18.7%
FY2015
$100 FY2016
20.1%
$165
FY2017
(C$ in millions / % of sales)
9.8%
10.4%
$21
$30
FY2015
FY2016
$54
FY2016
40.9%
Increase relative to sales driven by growth investments in DTC, head count and marketing initiatives Includes unusual expenses of $7MM, $7MM and $32MM in FY2015, FY2016 and FY2017, respectively
$81 $37
34.4%
FY2017
Margin expansion driven primarily by economies of scale, pricing and DTC
10.9% $44
FY2017
Distribution of income across jurisdictions drives targeted effective tax rate of ~25% Change in capital structure weighed in on the margin
Significant acceleration in profitability whi le making major growth investments
H I G H LY V I S I B L E A N D S E A S O N A L REVENUE MODEL Majority of revenue is derived from orders made prior to the beginning of the fis cal year s n o i t a r e p O e l a s e l o h W
C T D
Peak selling season
Investment quarters
Peak selling season
Investment quarters
Linear production throughout the year
Majority of order book is filled
High sales volume
High sales volume
Q3 ended December 31st
Inventory peaks and begins to decline
Low selling season resulting in inventory buildup
Majority of order book is filled
High shipments and volume
Low selling season resulting in inventory buildup
Q4 ended March 31st
Q1 ended June 30th
Proactively manage SG&A and inventory FX exposure growth investments
High shipments and volume
Q2 ended September 30th
Peak working capital
Q3 ended December 31st
Inventory buildup
Inventory buildup
Q4 ended March 31st
~3/4 of revenue Proactively manage generated in Q2 and Q3 FX exposure
H I G H LY V I S I B L E A N D S E A S O N A L REVENUE MODEL Quarterly revenue (C$ in millions )
$209
$110
$128
$116
$51
$42 $16 Q2 2016
Q3 2016
Q4 2016
Q1 2017
Q2 2017
$28
Q3 2017
Q4 2017
Q1 2018
+
( ‒)
( ‒)
Net income contribution
+
+
( ‒)
( ‒)
+
~75% - 85% of revenue in Q2 and Q3 with some fluctuations y.o.y. due to shipment timing High revenue visibility allows for Q4 and Q1 to serve as investment quarters Negative operating margin of investment quarters increased by investments in SG&A to support DTC rollout
KEY GROWTH DRIVERS REVENUE WHOLESALE
DIRECT TO CONSUMER
Volume growth driven by increased penetration and three-season product expansion Pricing growth Increase geographic footprint Deeper account penetration Disciplined increase in points of distribution and shop-in-shop locations
GROSS PROFIT
Margin expansion from DTC mix shift Strategic price optimization in excess o f c o st i n fl a ti o n Incremental margin from in-house manufacturing mix shift
Volume growth driven by increased penetration and three-season product expansion Pricing growth Launch additional e-commerce sites Open additional retail stores
SG&A
DTC investments have been accretive to operating income due to higher gross margin profile Leverage economies of s cale as growth investments in distribution and corporate overhead begin to pay off
CAPEX
Investments in e-commerce sites and retail stores Manufacturing capacity expansion and opportunistic acquisitions Corporate level IT investments Design and merchandising investments
SUMMARY FINANCIAL HIGHLIGHTS
Exceptional revenue growth potential driven by multiple vectors with significant runway Geographic growth in new and existing markets, channel diversification and product expansion
Powerful business model with improving margin profile and strong earnings growth Leveraging operational excellence to expand Adjusted EBITDA margins
Highly visible and seasonal revenue model Provides ability to invest ahead of growth
A B R A N D L I K E N O O T H E R
A P P E N D I X
A D J U S T E D E B I T D A R E C O N C I L I AT I O N (C$ in millions)
Net income Add impact of: Income tax expense Interest expense Depreciation and amortization EBITDA Add impact of: Bain Capital management fees Transaction costs Purchase accounting adjustments Unrealized (gain) / loss on derivatives Unrealized foreign exchange loss on term loan International restructuring costs Share-based compensation Agent terminations and other Non-cash rent expense Adjusted EBITDA
FY2015
FY2016
FY2017
$14.4
$26.5
$21.6
4.7 7.5 3.4 $30.1
6.5 8.0 5.9 $46.9
8.9 10.0 8.4 $48.9
0.9 – 2.9 (0.1) – 1.0 0.3 2.2 – $37.2
1.1 0.3 – (4.4) – 6.9 0.5 3.1 – $54.3
10.3 10.0 – 4.4 (0.1) 0.2 5.9 – 1.4 $81.0
