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Investor PresentationMarch 2017

Disclaimer

This presentation contains certain forward-looking statements, which may be identified by the use of forward-looking terminology, including the terms “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or, in each case, their negative, or other variations or comparable terminology. The forward-looking statements involve risks and uncertainties, some of which cannot be predicted or quantified. Further, certain forward-looking statements are based on assumptions of future events which may not prove to be accurate. The Company derives many of its forward-looking statements from its operating budgets and forecasts, which are based upon detailed assumptions. While the Company believes that its assumptions are reasonable, it is difficult to predict the impact of known factors and to anticipate all factors that could affect actual results. As such, actual results may differ materially from those projected or implied and you should not place undue reliance on these forward-looking statements. For a discussion concerning the factors that could cause these differences, please refer to the Company’s filings with the Securities and Exchange Commission (the “SEC”).

This presentation makes no representations or warranties and no person has been authorized to make any representations or warranties on behalf of the Company or any of its affiliates, or to give any information other than that contained in this presentation. Nothing contained in this presentation is, or shall be relied upon as, a promise or representation or warranty, whether as to the past, present or the future. Certain of the economic and market information contained herein has been obtained from published sources and/or prepared by other parties. None of the Company or any of its directors, partners, stockholders, officers, affiliates, employees, agents or advisers nor any other person assumes any responsibility for the completeness of any information in this presentation, and we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which such statements are based.

This presentation includes certain non-GAAP financial measures, including Adjusted Net Income, Adjusted Net Income per Share, Adjusted Net Income per Diluted Share, EBIT Margin, EBITDA and Adjusted EBITDA. These non-GAAP financial measures should be considered only as supplemental to, and not as superior to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation for a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP.

This presentation is confidential and may not be reproduced or otherwise distributed or disseminated, in whole or part, without the prior written consent of the Company, which consent may be withheld in its sole and absolute discretion.

Any investment in the Company will be subject to certain risks related to the nature of the Company’s business and the structure and operations of the Company. Any investment in the Company should be made only with an appreciation of the applicable risks, which will be described in the Company’s filings with the SEC.

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Smart & Final Overview

2

Growth and value-oriented food retailer

− 305 non-membership, smaller-box, warehouse-

style stores(1)

− 2016 Sales(2): $4,342 million

− 2016 Adj. EBITDA(2): $180 million

Taking share from conventional grocery and specialty retailers

Unique platform that appeals to both household and business customers

− Two complementary and highly productive banners

− “Everyday Low Prices”

− 98% non-union(3)

Strong new store development momentum

− FY2016 new stores (37) and Extra! conversions

and relocations (12)

− Expected development rate in 2017: new stores

(19) and Extra! conversions and relocations (7-8)

Annual Unit Growth 305 Locations in 7 States(1)

(1) As of January 1, 2017. Excludes 15 stores operated through a non-consolidated 50/50 joint venture in Mexico. (2) For the 52 week fiscal year ended January 1, 2017.(3) As of January 1, 2017.

Cash & CarryExtra!

25

13

20

33

1

2

4

2

5

14

22

37

2012 2013 2014 2015 2016

Differentiated Go-to-Market Strategy

3

COMPELLING VALUEDIFFERENTIATED PRODUCTS CONVENIENCE

Targeted pricing substantially lower than conventional grocers

Targeted pricing competitive with Walmart, Costco and leading discount grocers such as Food 4 Less (Kroger)

Consistently offer better value than large discounters on produce

No membership fee

Smaller, easy-to-shop format

Located near customer’s home or business

“2 shops in 1 stop”

Large variety of warehouse club sizes

Extensive selection of private label

Unique items for businesses

Broad appeal across household and business customers

Complementary Store Banners

4

2016 Sales $3,401 million $941 million

-0.6%FY 2016 SSS

Customer Mix(1)

37%

63%

29%

71%

46%

54%

Store Footprint(1) 59 in CA, WA, OR, NV, UT, and ID172 in CA, NV and AZ 74 in CA, NV and AZ

Banner Differentiator

~16,000 sq. ft.~28,000 sq. ft. ~20,000 sq. ft.

Merchandise Mix (1)

Perishables

Grocery, beverage, paper & packaging & restaurant supplies

Average Size(1)

“Two shops in one stop” “We sell ingredients”

Value PropositionDistinctive mix of household and business items at “Everyday Low Prices”,

including warehouse club pack sizesNo frills, focused on business customers

Business: ~30% Household: ~70% ~90% ~10%

(1) As of January 1, 2017.

-0.3%

The Experience

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Smart & Final Banner Mix(1)

(1) Percentages may not add to 100% due to rounding. Reflects estimated data for fiscal year 2016.

Common National Brands

Common Private Label

Unique Private Label

Unique National Brands

Broad Range of Product Sizes

Unique Items

Wide selection of quality private label and national brands

Household & business products side-by-side

“Everyday Low Prices”

Perishables

Emphasis on high-quality, fresh products

Private Label Brands

Differentiated, value focused merchandise mix in a convenient format

Value

22%

16%

12%

50%

38% Unique

28% Private Label

~$3.4 billion Net Sales

The Experience

6

Natural & Organic Produce Household & Club Sizes

Bulk FoodsOven Roasted Chicken

The Experience

7

Convenience

Ingredients and Supplies

Broad selection of everyday foodservice products

Accessible locations and no minimum order size

Competitive pricing with no membership fee

Ability to hand-select high quality, fresh perishables

Convenient, no-frills shopping environment for the business customer

Value

Accelerating Store GrowthDiverse Customer Base

Format serves a wide variety of businesses and organizations

Perishables

1

2

4

2014 2015 2016

Cash & Carry New Store Openings

The Experience

8

Primal Cut & Case Meats

Foodservice Items Professional Sizes

Fresh Produce

Executing a Multi-Year Growth Plan

9

Conversions New Store OpeningsSame Store Sales

Cumulative Conversions and Relocations Cumulative New Stores

Significant opportunities in current markets

− 15 new Extra! stores planned for 2017

− 4 new Cash & Carry stores planned for 2017

Potential for expansion of both banners into adjacent / new markets

Longer-term national opportunity

Continue conversions and opportunistic relocations

− 4 to 5 planned conversions in 2017

− 3 planned relocations in 2017

Target pre-tax cash-on-cash returns of ~20% - 25% in year 3 for Extra!conversions

Grow margin accretive private label sales

Continue to evolve merchandising mix

Drive business customer growth

Enhance brand awareness to expand customer reach

Testing delivery with Instacart and Google

28%

29%

31%

33%

34%

35%

2011 2012 2013 2014 2015 2016

Smart & Final Banner Perishables Penetration

4 4 5 7 12

25

45

78

93

2 2 2 2 2

3

5

9

13

6 6 7 9 14

28

50

87

Extra! Cash & Carry

Key Drivers of Smart & Final Stores, Inc. Growth

12 14 23

30 38

52 58

64 69

18 20

21

22

22

24

28

34

37

30 34

44

52

60

76

86

98

Conversions Relocations

106 106

Compelling Store Development Opportunity

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Cash investment of ~$1.5 million

Target pre-tax cash-on-cash returns of ~20% – 25% in year 3

Accelerating Cash & Carry stores growth based on new stores experience

− 7 new stores in 2014 – 2016

Cash investment of ~$2.5 million

Target pre-tax cash-on-cash returns of ~20 – 25% in year 3

Since 2008, have converted 64 locations to Extra!

− Add perishables and optimize merchandising to maximize productivity

− Generating an average sales increase of ~25 – 30% in the first twelve months following conversion

Typical cash investment of ~$3 million

Target pre-tax cash-on-cash returns of ~20% – 25% in year 3

Proven execution of model through 78 new Extra! stores opened to date

Recent new store performance in line with expectations

New Extra! Store Model Extra! Conversions New Cash & Carry Store Model

Attractive Store Economics

New Unit Growth in

Existing and Adjacent Markets

Longer-term Growth

Opportunities

Opportunity to open ~150 new Extra! stores in existing and adjacent markets

(2017 and beyond)

− Potential for further growth from higher densities in key California market

− Pacific Northwest represents an actionable near-term expansion opportunity

Opportunistically grow Cash & Carry store banner

Lower risk expansion utilizing distribution infrastructure

Flexible real estate strategy “new and adaptive reuse”

− Deep institutional knowledge of existing local markets

Broader U.S. market has potential to support over 1,250 additional Extra! stores

Continued growth in Mexico (currently 15 stores)

Current Challenges to Growth

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Food Deflation: A Perfect Storm

− Supply/Demand imbalances are driving 2016 price corrections

• Strong US dollar hindering export demand

• Protein production cycles at their peak

• A series of unusual supply disruptions in 2015 (LA port strike, avian flu, California egg regulations, etc.)

− Smart & Final’s sales mix over-indexes categories experiencing significant deflation headwinds

− As a result, deflation has been more pervasive and persistent than originally forecasted

Cannibalization: Short-term Pain for Long-term Gain

− Acquired former Haggen sites in Central & Southern California; strong overlap with existing trade areas

− Resulting cannibalization higher than historical average, but anticipated

− In the short-term, cannibalization delevers existing store base and transfers sales to less mature stores

− In the long-term, expect new stores to achieve stronger returns and give existing stores room to grow sales base

Source: Bureau of Labor Statistics

Delivering Solid Financial Results

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(1) Adjusted EBITDA defined as earnings (income or loss) before income tax provision, interest expense (net), depreciation and amortization, as adjusted for the items set forth in the reconciliation schedule in the Appendix. 2011 and 2012 amounts are pro forma for acquisition of Company by affiliates of Ares Management, L.P. (the “Ares Acquisition”).

$125 $139

$164 $176

$193$180

4.4% 4.6% 5.1% 5.0% 4.9%

4.1%

2011 2012 2013 2014 2015 2016

Adjusted EBITDA % Margin

Net Sales

$2,840 $3,043 $3,210

$3,534 $3,971 $4,342

2011 2012 2013 2014 2015 2016

($ in millions)

Adjusted EBITDA(1) and Margin

% SSS

($ in millions)

Increase in net sales attributable to strong growth in both banners

SSS driven by increase in number of transactions

Increasing contribution from new store growth

Merchandise initiatives provide product margin flexibility

− Private label, produce, perishables and natural and organic items

Opportunity for future EBITDA leverage

− Occupancy and distribution expense

− Fixed cost structure

6.3% 4.5%4.5% -0.5%4.0%6.7%9.5%

2017 Guidance(1)

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(1) This information was provided by the Company on March 8, 2017. Actual results may differ materially from those projected or implied.

Full Year 2017

Net sales growth 5.5% - 6.5%

Comparable store sales growth 1.0 - 2.0%

Unit growth (net new stores)15 Smart & Final Extra!

4 Cash & Carry

Relocations of existing stores 3 Smart & Final

Conversions of legacy stores to the Extra! format 4 to 5 stores

Adjusted EBITDA $185 - $195 million

Adjusted net income $39 - $43 million

Adjusted diluted EPS $0.50 - $0.55

Capital expenditures $120 - $130 million

Fully diluted weighted average shares 77 million

Long-term Financial Targets(1)

Unit Growth ~9%

Same Store Sales Growth ~4%

Total Sales Growth ~11%

EBITDA Growth ~13%

Net Income Growth ~18%

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These targets are forward-looking, are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many of which are beyond the control of the Company and its management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. For discussion of some of the important factors that could cause these variations, please consult the “Risk Factors” section of the Company’s SEC filings. Nothing in this presentation should be regarded as a representation by any person that these goals will be achieved and the Company undertakes no duty to update its goals.

(1) As originally established in September 2014.

What Makes Us Different?

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Unique growth platform that appeals to both household and business customers

Distinctive and value-focused merchandise offering

Flexible real estate strategy to support new store growth

Experienced and committed management team with developed infrastructure

Two highly productive store banners

Positive same store sales growth in 26 out of the last 28 years

Unique sizes and extensive selection of private label at highly competitive prices

Ample opportunities for additional new stores in existing and adjacent markets

Sales per square foot of $631(1)

(1) For the 52 week fiscal year ended January 1, 2017.

11.8

9.0

4.6

10.4

4.7

5.5 5.0

2.7

2.0

(0.2)

4.7

5.4

3.8 3.4

8.8

11.0

2.6 2.8

6.0

8.7

3.8

2.9

9.5

6.7

4.0

6.3

4.5

(0.5)

A Long History of Growth

Historical SSS Performance (%)

Positive same store sales growth in 26 of the last 28 fiscal years

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Appendix

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Reconciliation of EBITDA and Adjusted EBITDA

(a) Represents costs primarily associated with the Company's secondary public offering that were charged to expense in the f iscal year ended January 3, 2016.(b) Represents costs associated with store closure and exit costs.(c) Represents non-cash loss associated with asset dispositions and impairment charges.(d) Represents expenses associated with the Company's equity-based incentive award program.(e) Represents non-cash component of recognized rent expense.(f) Represents new store and relocation opening costs consisting primarily of rent, utilities, distribution, store labor and advertising.(g) Represents new store opening and relocation costs and non-cash rent related to acquired former Haggen store locations. (h) Represents loss on the early extinguishment of debt in the fiscal years ended January 1, 2017 and January 3, 2016 in connection with amendments to the Company’s First Lien Term Loan Credit Facility. (i) Represents (i) death benefit income from a Company-owned life insurance policy in the fiscal years ended January 1, 2017 and January 3, 2016 and (ii) severance costs in the twelve and fifty-two weeks ended January 1, 2017 and the thirteen and fifty-three weeks ended January 3, 2016.

($ in thousands)

Fifty-three Weeks

Ended

Fifty-two Weeks

Ended

Thirteen Weeks

Ended

Twelve Weeks

Ended

January 3, 2016 January 1, 2017 January 3, 2016 January 1, 2017

Net income (loss) $38,262 $12,948 $9,961 $(253)

Depreciation and amortization 68,766 87,015 17,096 22,500

Interest expense, net 32,687 32,654 7,680 7,925

Income tax provision (benefit) 23,102 (2,037) 4,692 (1,650)

EBITDA 162,817 130,580 39,429 28,522

Transaction costs (a) 936 - - -

Net loss from closed stores and exit costs (b) 2,344 8,671 332 2,650

Loss from asset dispositions (c) 1,396 1,598 838 594

Share-based compensation expense (d) 10,003 9,803 1,922 2,555

Non-cash rent (e) 4,508 2,498 1,430 442

Pre-opening costs (f) 8,543 2,630 3,369 906

Costs associated with acquired Haggen store locations (g) - 20,513 - 1,266

Loss on extinguishment of debt (h) 2,192 4,978 - -

Other items (i) 135 (1,018) 38 377

Adjusted EBITDA $192,874 $180,253 $47,358 $37,312

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Reconciliation of Net Income and Adjusted Net Income

($ in thousands)

Fifty-three Weeks

Ended

Fifty-two Weeks

Ended

Thirteen Weeks

Ended

Twelve Weeks

Ended

January 3, 2016 January 1, 2017 January 3, 2016 January 1, 2017

Net income (loss) $38,262 $12,948 $9,961 $(253)

Income tax provision (benefit) 23,102 (2,037) 4,692 (1,650)

Net income (loss) before income taxes (benefit) 61,364 10,911 14,653 (1,903)

Transaction costs (a) 936 - - -

Net loss from closed stores and exit costs (b) 2,344 8,671 332 2,650

Loss from asset dispositions (c) 1,396 1,598 838 594

Share-based compensation expense (d) 10,003 9,803 1,922 2,555

Non-cash rent (e) 4,508 2,498 1,430 442

Pre-opening costs (f) 8,543 2,630 3,369 906

Costs associated with acquired Haggen store locations (g) - 20,513 - 1,266

Loss on extinguishment of debt (h) 2,192 4,978 - -

Other items (i) 135 (1,018) 38 377

Adjusted income tax provision (35,139) (18,363) (7,859) (1,890)

Adjusted Net Income $56,282 $42,221 $14,723 $4,997

Net income per share - basic $0.52 $0.18 $0.14 $0.00

Adjusted net income per share - basic $0.77 $0.58 $0.20 $0.07

Net income per share - diluted $0.50 $0.17 $0.13 $0.00

Adjusted net income per share - diluted $0.73 $0.54 $0.19 $0.07

Weighted average shares - basic 73,121,964 72,727,071 73,191,829 71,962,127

Weighted average shares - fully diluted 77,141,621 78,026,159 77,497,406 76,552,257

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(a) Represents costs primarily associated with the Company's secondary public offering that were charged to expense in the f iscal year ended January 3, 2016.(b) Represents costs associated with store closure and exit costs.(c) Represents non-cash loss associated with asset dispositions and impairment charges.(d) Represents expenses associated with the Company's equity-based incentive award program.(e) Represents non-cash component of recognized rent expense.(f) Represents new store and relocation opening costs consisting primarily of rent, utilities, distribution, store labor and advertising.(g) Represents new store opening and relocation costs and non-cash rent related to acquired former Haggen store locations. (h) Represents loss on the early extinguishment of debt in the fiscal years ended January 1, 2017 and January 3, 2016 in connection with amendments to the Company’s First Lien Term Loan Credit Facility. (i) Represents (i) death benefit income from a Company-owned life insurance policy in the fiscal years ended January 1, 2017 and January 3, 2016 and (ii) severance costs in the twelve and fifty-two weeks ended January 1, 2017 and the thirteen and fifty-three weeks ended January 3, 2016.

Summary Historical Financials(1)

($ in millions)

Fiscal Year Ended

2012 2013 2014 2015 2016

Smart & Final 183 188 201 221 246

Cash & Carry 52 52 53 55 59

Total Stores 235 240 254 276 305

Smart & Final 7.1% 3.4% 5.0% 4.4% (0.6%)

Cash & Carry 5.4% 6.1% 10.0% 4.5% (0.3%)

Total SSS 6.7% 4.0% 6.3% 4.5% (0.5%)

Smart & Final $2,303 $2,425 $2,669 $3,037 $3,401

Cash & Carry 740 785 865 934 941

Total Sales $3,043 $3,210 $3,534 $3,971 $4,342

% growth 7.1% 5.5% 10.1% 12.4% 9.3%

Gross Margin 446 474 527 599 630

% of sales 14.7% 14.8% 14.9% 15.1% 14.5%

Income from operations 70 87 89 95 47

% of sales 2.3% 2.7% 2.5% 2.4% 1.1%

Net Income $14 $8 $33 $38 $13

% of sales 0.5% 0.3% 0.9% 1.0% 0.3%

GAAP Basic EPS $0.25 $0.14 $0.54 $0.52 $0.18

GAAP Diluted EPS $0.24 $0.14 $0.52 $0.50 $0.17

Adjusted EBITDA $139 $164 $176 $193 $180

% of sales 4.6% 5.1% 5.0% 4.9% 4.2%

Adjusted Net Income $32 $47 $56 $42

% of sales 1.0% 1.3% 1.4% 1.0%

Adjusted Basic EPS $0.56 $0.76 $0.77 $0.58

Adjusted Diluted EPS $0.54 $0.73 $0.73 $0.54

(1) 2012 amounts are pro forma for the Ares Acquisition.

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Consolidated Quarterly P&L Performance

($ in millions)

Quarter Ended

March 22,

2015

June 14,

2015

October 4,

2015

January 3,

2016

March 27,

2016

June 19,

2016

October 9,

2016

January 1,

2017

Net sales $822.2 $905.1 $1,246.1 $997.6 $908.5 $1,038.3 $1,394.4 $1,000.6

Cost of sales, distribution and store

occupancy700.0 763.5 1,058.8 849.8 780.1 881.1 1,191.4 859.7

Gross Margin 122.2 141.6 187.2 147.9 128.4 157.2 203.0 140.9

Operating and administrative expenses 107.0 114.1 157.0 125.9 125.1 138.8 183.4 135.2

Income from operations 15.2 27.5 30.2 22.0 3.3 18.4 19.6 5.7

Interest expense, net 8.0 7.7 9.3 7.7 7.3 7.4 10.0 7.9

Loss on early extinguishment of debt 0.0 (2.2) 0.0 0.0 0.0 0.0 (5.0) 0.0

Equity in earnings of joint venture 0.5 0.4 0.1 0.3 0.4 0.2 0.5 0.3

Income (loss) before income taxes 7.7 18.0 21.0 14.7 (3.6) 11.2 5.1 (1.9)

Income tax (provision) benefit (2.8) (6.9) (8.6) (4.7) 2.0 (3.4) 1.9 1.7

Net (Loss) Income $4.9 $11.0 $12.4 $10.0 ($1.6) $7.8 $7.0 ($0.3)

Net (loss) income per share – basic $0.07 $0.15 $0.17 $0.14 ($0.03) $0.11 $0.10 $0.00

Net (loss) income per share - diluted $0.06 $0.14 $0.16 $0.13 ($0.03) $0.10 $0.09 $0.00

Weighted average shares - basic 73,084,282 73,090,917 73,116,746 73,191,829 73,189,149 73,197,064 72,601,724 71,962,127

Weighted average shares - fully diluted 76,645,281 76,893,066 77,404,466 77,497,406 73,189,149 78,907,184 77,705,917 71,962,127

Sales Growth 11.9% 9.3% 10.1% 18.9% 10.5% 14.7% 11.9% 0.3%

Gross Margin 14.9% 15.6% 15.0% 14.8% 14.1% 15.1% 14.6% 14.1%

EBIT Margin 1.9% 3.0% 2.4% 2.2% 0.4% 1.8% 1.4% 0.6%

Net Income Margin 0.6% 1.2% 1.0% 1.0% -0.2% 0.8% 0.5% 0.0%

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