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Confidential: Not for distribution or publication
Disclaimer
Forward-Looking Statements
This presentation contains “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can
be identified by the use of terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “project,” “potential,” or the
negative of these terms, and similar expressions. You should be aware that these forward-looking statements are subject to risks and uncertainties that are beyond our control. Further,
any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or
circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time that may
cause our business not to develop as we expect, and it is not possible for us to predict all of them. Factors that may cause actual results to differ materially from those expressed or
implied by the forward-looking statements include, but are not limited to, the following: cyclicality in residential and commercial construction markets; general economic and financial
conditions; weather conditions, seasonality and availability of water to end-users; laws and government regulations applicable to our business that could negatively impact demand for
our products; public perceptions that our products and services are not environmentally friendly; competitive industry pressures; product shortages and the loss of key suppliers; product
price fluctuations; inventory management risks; ability to implement our business strategies and achieve our growth objectives; acquisition and integration risks; increased operating
costs; and other risks, as indicated in our Annual Report on Form 10-K and our Registration Statement on Form S-1 filed with the U.S. Securities and Exchange Commission
(Registration No. 333-217327).
Included in this presentation are estimated results for Q1 2017, which are preliminary, unaudited and subject to completion, reflect management’s current views and may change as a
result of management’s review of results and other factors, including a wide variety of significant business, economic and competitive risks and uncertainties. Such estimated preliminary
results are not guarantees of future performance or outcomes and that actual results may differ materially from the estimated preliminary results.
Non-GAAP Financial Information
This presentation includes certain financial information, not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial 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. GAAP that 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), depreciation and amortization and interest expense,
net of interest income. Adjusted EBITDA is further adjusted for stock-based compensation, advisory fees, loss (gain) on sale of assets and rebranding, acquisitions and other
adjustments.
Adjusted EBITDA does not include pre-acquisition Adjusted EBITDA. Adjusted EBITDA is not a measure of our liquidity or financial performance under GAAP and should not be
considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating
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 identical 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 calculated
as long-term debt plus capital leases, net of cash and cash equivalents. Free cash flow is defined as cash flow from operating activities less capital expenditures. See the Appendix for a
reconciliation of Adjusted EBITDA to net income (loss) and a reconciliation of free cash flow to cash flow from operating activities.
We present organic daily sales as we believe organic sales growth and organic daily sales growth are useful measures for evaluation our performance as we may choose to open or
close branches in any given market depending upon the needs of our customers or our strategic growth opportunities. See the Appendix for a reconciliation of organic sales and organic
daily sales to net sales.
The Company’s fiscal year is a 52- or 53-week period ending on the Sunday nearest to December 31. The year ended January 1, 2017 includes 52 weeks. The year ended January 3,
2016 includes 53 weeks. The year ended December 28, 2014 includes 52 weeks. Unless the context otherwise indicates, references to years herein refer to our fiscal years.
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Confidential: Not for distribution or publication
Today’s presenters
Doug Black
CEO & Director
Joined SiteOne in April 2014
Previously spent 18 years at CRH plc most recently as President and COO of Oldcastle Inc.
Held a variety of roles including CEO and COO of Oldcastle Materials
Previously a consultant with McKinsey
M.B.A. from Duke and B.S. from the U.S. Military Academy at West Point
Pascal Convers
EVP of Strategy,
Development &
Investor Relations
Joined SiteOne in July 2014
10 years at CRH plc, recently as SVP of Strategy and Development for Oldcastle Materials
Previously CRH’s Managing Director for concrete and landscaping operations in France
Spent 13 years at Eastman Chemical Company, held senior leadership roles in Europe, North America
and Asia-Pacific
M.B.A. from Duke, M.S. from Ecole Des Mines de Paris and B.S. in Chemical Engineering from Rennes
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Confidential: Not for distribution or publication
Adjusted EBITDANet sales
■ Largest and only national
wholesale distributor of
landscape supplies
– More than four times the size
of next competitor
– Approx. 10% market share
■ ~$17bn highly fragmented market
■ Serving residential and
commercial landscape
professionals
■ Complementary value-add
services and product support
■ Over 100,000 SKUs
■ 478 branches in 45 states and
five provinces1
2016 net sales mix
By product category By end market By construction sector
Company highlights
Key financials
SiteOne: transforming the landscape distribution industry
% margin 6.3% 6.3% 7.3% 8.1%
1 As of April 2, 2017
Source: Company filings, Management estimates
Irrigation33%
Fertilizer& Other
17%
Control Products
17%
Nursery12%
Landscape Accessories
11%
Hardscapes6%
Outdoor Lighting
4%Maintenance
43%
New Construction
39%
Repair & Upgrade
18% Residential54%
Commercial31%
Recreational & Other
15%
1,078 1,177
1,452
1,648
0
300
600
900
1,200
1,500
1,800
2013 2014 2015 2016
($ in m
illio
ns)
68 74
107
134
0
20
40
60
80
100
120
140
2013 2014 2015 2016
($ in m
illio
ns)
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Confidential: Not for distribution or publication
SiteOne plays a critical role in the professional landscape supply value chain
Thousands
of suppliers
Hundreds of thousands
of customers
Large: ~27% of 2016 net sales
■ >$200K in avg. annual
purchases
Medium: ~54% of 2016 net sales
■ $10K – 200K in avg. annual
purchases
Coast-to-coast
national network
Extensive
sales &
marketing
Rapid
product
launches
Fewer and larger
shipments
Broadest
product
offering
Superior
technical
expertise
Customer
loyalty
program
Trade credit,
sales leads
and training
SiteOne provides: SiteOne provides:
Critical business partner Small: ~18% of 2016 net sales
■ <$10K in avg. annual
purchases
One-stop shop
Source: Company data, Management estimates
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Confidential: Not for distribution or publication
We are the Only National One-stop Shop Provider in the Industry
Source: Management estimates, Company data; Wholesale outlets only
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Irrigation
Fertilizer
& Other
Control
Products Nursery
Landscape
Accessories Hardscapes
Outdoor
Lighting
% of 2016 Sales 33% 17% 17% 12% 11% 6% 4%
Key Products
Key Suppliers
Market Position #1 #1#1#1 #1 #1#1
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Confidential: Not for distribution or publication
SiteOne is poised for long-term 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 leadership and functional support
Early innings of operational and commercial excellence
■ Category management
■ Pricing
■ Supply chain
■ Salesforce performance
■ Marketing
Value creation levers
1) Organic growth
2) Margin expansion
3) Acquisition growth
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Confidential: Not for distribution or publication
Position #1
Avg yrs
industry
expertise
% former
contractors /
golf super’int
Regional
VP11 24 18%
Area
Manager45 23 64%
Area
Business
Manager
34 19 59%
Branch
Manager460 15 44%
Outside
Sales Rep2 ~350 17 52%
Functional excellenceLocal leadership team Senior leadership team
■ Recently added top
industry talent from best-
in-class companies
■ Functional areas with
recent hires include:
Finance
Pricing
Category management
Marketing
Strategy
Supply chain
Name Experience
Doug BlackCEO & Director
John GuthrieEVP & CFO
Pascal ConversEVP, Strategy, Development & IR
Ross AnkerEVP, Category Mgmt, Marketing & IT
Briley BrisendineGeneral Counsel
Joseph Ketter SVP, Human Resources
Matt HartWest Division President
Jon KerrNorth Division President
Taylor Koch South Division President
Jim Slomka VP, Sales
Greg Weller SVP, Supply Chain
1 Excludes open positions. As of December 31, 2016
2 Includes Agronomic Sales Rep (ASR)
Source: Employee Survey Results, Company data
Proven management team driving performance and growth
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Confidential: Not for distribution or publication
Number of MSAs
Total MSAs
SiteOne
presence
#1 or #2 SiteOne
market position
All product
lines offered
Significant room to grow across geographies and products
■ Well positioned in large,
fragmented and growing
MSAs
– #1 or #2 local market
position in ~80% of
MSAs where SiteOne has
a presence
■ Significant “white space”
for growth
– SiteOne currently has a
presence in only ~46%
of total MSAs
– Full product line is
currently offered in only
~24% of the U.S. MSAs
where SiteOne has a
branch
Source: Company filings, Freedonia, Management estimates
Current 2014
381
176 139
31
1
3
12
381
177
142
43
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Confidential: Not for distribution or publication
Acquisitions are a key part of the value creation strategy
■ Strengthens our business
Geographic footprint
Product expansion
Market consolidation
Talent / capabilities
■ Significant synergies
Purchasing scale
Overhead leverage
Cross-selling
Branch network optimization
Commercial & operating best practices
Growth, margin
& cash flow
improvement
Strategic
acquisitions
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Confidential: Not for distribution or publication
2014 2015 2016 2017 YTD
Annualized sales1 ~$40M ~$230M ~$150M ~$95M
# branches added 18 50 29 20
Robust track record of acquisitions
Target Locations Strategic rationale
Ac
qu
isit
ion
s
sin
ce
IPO
Bissett 3 locations in NY Led to #1 nursery position in Long Island & NYC
Glen Allen 1 location in VA #1 nursery position in the Richmond metro
Loma Vista 2 locations in MO & KS #1 nursery position in the Kansas City metro
East Haven 1 location in CT Strengthened #1 nursery position in New Haven, CT
Aspen Valley 3 locations in IL #1 landscape accessories and #2 hardscapes position in Chicago metro
Stone Forest 1 location in GA Strengthened #1 hardscapes position in Atlanta metro
Angelo’s 2 locations in MI #1 hardscapes position in Detroit metro
AB Supply 12 locations in CA and NV Leading hardscapes platform in Southern California and Las Vegas
Evergreen 2 locations in NC and SC #1 nursery position in Myrtle Beach and strengthened existing nursery position in Raleigh
1 Trailing twelve month revenues in the year acquired
Source: Company filings, Press release
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Confidential: Not for distribution or publication
Chicago
Woodstock
Geneva
Wheaton
NapervilleAurora
Joliet
SiteOne
Shemin
Aspen Valley
Market example: Acquisitions made us a full-line supplier in Chicago
Lighting
5%
Nursery
12%
Irrigation
17%Hardscapes
19%
Landscape
Accessories
20%
Agronomics
32%
Irrigation
37%
Lighting
5%
Nursery
2%Agronomics
54%Landscape
Accessories
3%
SiteOne Chicago market pre-acquisitions (FY14) SiteOne Chicago market post-acquisitions (FY16)
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Confidential: Not for distribution or publication
~10%
~90% opportunity
~$15bn1
A SiteOne is a leading player in industry consolidation
E Acquisitions are accretive and present significant profit growth potential
C Our pipeline is deep and expanding
B Significant sourcing advantage with 60+ associates scouting
D M&A team in place to execute larger pipeline
Robust pipeline of opportunities provides accelerated growth
1 Represents 90% of the ~$17bn professional landscape supply industry not covered by SiteOne
Source: Company data, Management estimates
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Confidential: Not for distribution or publication
SiteOne’s 2017 outlook
Underlying market trends remain positive
Sales & marketing initiatives expected to accelerate market share gains
Gross margin expansion expected to continue
SG&A as % of net sales expected to decline slightly
Expected acceleration of M&A activity from a robust pipeline
2017 Adjusted EBITDA expectation of $155 million to $165 million
Source: Company data