PowerPoint Presentation...(1) In home market primarily through word-of-mouth advertising and decades...

Investor PresentationJUNE 2018

Disclaimer

All figures discussed in this presentation are stated in $CAD millions, unless otherwise noted.

Non-IFRS Measures and Industry Metrics

This presentation makes reference to certain non-IFRS measures including certain metrics specific to the industry in which we operate. These measures are not recognizedmeasures under IFRS, do not have a standardized meaning prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Rather,these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’sperspective. Accordingly, these measures are not intended to represent, and should not be considered as alternatives to net income or other performance measures derived inaccordance with IFRS as measures of operating performance or operating cash flows or as a measure of liquidity. In addition to our results determined in accordance with IFRS, weuse non-IFRS measures including Adjusted DTC Gross Margin, EBITDA, Adjusted EBITDA, Adjusted net income, and Adjusted net income per share. This presentation also refers tocomparable sales growth, a commonly used metric in our industry but that may be calculated differently compared to other companies. We believe these non-IFRS measures andindustry metrics provide useful information to both management and investors in measuring our financial performance and condition and highlight trends in our core businessthat may not otherwise be apparent when relying solely on IFRS measures. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found inour Management Discussion &Analysis (MD&A) dated June 12, 2018 under “Cautionary Note Regarding Non-IFRS Measures and Industry Metrics”, which is available on SEDAR atwww.sedar.com.

Forward-Looking Information

Certain information in this presentation contains forward-looking information. This information is based on management’s reasonable assumptions and beliefs in light of theinformation currently available to us and are made as of June 15, 2018. Actual results and the timing of events may differ materially from those anticipated in the forward-lookinginformation as a result of various factors. Information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in whichwe operate is forward-looking information. Statements containing forward-looking information are not facts but instead represent management’s expectations, estimates andprojections regarding future events or circumstances. Many factors could cause our actual results, level of activity, performance or achievements or future events or developmentsto differ materially from those expressed or implied by the forward-looking statements.

See “Forward-Looking Information” and “Risk Factors” in the Company’s MD&A and Annual Information Form dated April 17, 2018, which are available on SEDAR atwww.sedar.com, for a discussion of the uncertainties, risks and assumptions associated with these forward-looking statements. Readers are urged to consider the uncertainties,risks and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such information. We have no intention andundertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicablesecurities law.

2

Roots, a loved brand with 44 years of heritage

Our Brand Position

For the life and style collectors, who, like us, believe clothes

should feel as good as they look.

Roots is the brand that unites the worlds of cabin and city.

As the grounded and groundbreaking connector, we create

apparel, leather and footwear with unique Legendary Feel, so our

consumers can confidently express their best self.

4

Roots Today: The Brand

5

Target Consumer

Life and Style Collector

6

Diversified Product Portfolio

Footwear2%*

Kids13%*

Accessories12%*

Leather11%*

Apparel62%*

* Percentage of FY2017 revenue

World famous iconic piecesSalt & Pepper Originals, Cooper Logo T-Shirt,

Awards Jacket, Banff Bag and Petite Banff, Student Pack, The Saddle Bag,

Cotton Cabin Sock, Roots Toque

Seasonal favourites that bring you back year after year

Fashion-Coloured Basic Sweats

Spring and Summer: Original Sweatshirt and Maple Baseball Cap

Fall and Winter: Algonquin Shirt, Packable Jacket,

Cabin Shawl Cardigan, Original Cabin Sock

Exciting products for repeat visits

On-trend, exciting and new

Monthly

Quarterly+

Seasonal

All-Year-Round

Seasonal Excitement ~30%

Perennial Favourites ~50%

Enduring Icons ~20%

7

A Product Architecture Rooted in our Heritage

Ensuring the Roots brand consistently appeals to, and

connects with, our target global omni-channel consumer, while

respecting Roots heritage and longstanding core values.

Strategically investing in people, systems, processes and infrastructure to fuel accelerated and sustainable long-term growth.

Modernizingthe Brand

Transforming the Business

Moving to a Single Global Brand Range

9

• Enhanced products and assortments

• Right product, right numberof units to the right locations

• Coordinated collections across categories

Operating Efficiencies

Gross margin improvement

• Formalized, analysis-driven approach to building assortment

• Improved costing

• Greater scalability

Sales growth

Fewer markdowns

Increased units per transaction

Editing out slow-sellers and amplifying the best products

*See Disclaimer – Forward Looking Information

Leveraging Operational Investments to Drive Sales and Margin Expansion

10

+

Investments already made

Accelerating future growth

Margin expansionComparable sales growth

Leadership

Functional expertise and operational experience

Merchandisingconsumer-focused strategy

Infrastructure

POS, HRIS, LMS

eCommerce

Further enhancing our online storefront


Growth in Canada:Growing store network in high traffic areas

11

6-8Remainder of new stores to add to achieve end of Fiscal 2019 target of 8-10 new store openings

*

117StoresAs at Q1 Fiscal 2018

*


Growth in Canada:Renovate and expand high-potential performing stores

Lakeshore StoreAfter

Lakeshore StoreBefore20%+

20%+average incremental contribution margin

average sales uplift1

24-28Store optimizations remaining to achieve end of Fiscal 2019 target

*

12(1) Sales uplift calculated as the sales in the period subsequent to renovation/expansion, compared to the sales in the same period from the fiscal year prior to renovation/expansion.


Growth in Canada: Amplifying brand communication

13

Increase traffic across omni-channel network

(1) In home market primarily through word-of-mouth advertising and decades of celebrity and professional athlete affirmation.

Grow marketing investment from 2% to 4% of sales by end of Fiscal 2019

• Leveraging 99% aided brand awareness1

• Launching new products

• Fostering stronger connections with customers and store communities

Growth in Canada: eCommerce, fastest growing part of business

14

20-22% of DTC salesTarget by end of Fiscal 2019

*


(1) In Fiscal 2017.

• Progressive environment of ongoing innovation

• Seamless omni-channel experience

• Shipping to more than 50 countries (1)

Strategically Expanding US Footprint

10-14Target new locations by end of Fiscal 2019

*

Washington ChicagoBoston

The Natick Mall, Massachusetts

Current Footprint

• 3 locations (NY, MI, UT)

• Shipping to all 50 states(1)

Current Pipeline

• Boston, June 2018

• Washington, August 2018

• Full Omni-channel, Summer 2018

• Chicago, 2019

*See Disclaimer – Forward Looking Information15

Expanding in International Markets:Taiwan & China

7-12New store opens remaining to achieve end of Fiscal 2019 target

*

Footprint as at end of Q1 2018

• 112 Taiwan

• 30 China

New stores

• 11 new stores H2 Fiscal 2017

• 2 new stores Q1 Fiscal 2018Shanghai No.1 Dept Store YaohanXindian FSS New Taipei City

Taipei 101

*See Disclaimer – Forward Looking Information16

Expanding in International Markets: other markets offer unique potential Hong Kong

Singapore

Malaysia

The Rest of the World

17

• Progressing plans for Hong Kong, Singapore and/or Malaysia with existing partner

• Conversations underway with potential partners for expansion into other international markets


Deepening Offering in Leather & Footwear

Leather

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Setting stage for accelerated growth in Fiscal 2019

Footwear

• Part of our DNA

• Leveraging the longstanding genuine leather credentials deeply valued by consumers

• Modernizing range of leather goods with new styles

• Expanding leather customization in select bags and jackets, to enhance connection with the consumer

• Where Roots started in 1973

• Cornerstone product category potential

• Significant footwear experience among management

• Premier design and manufacturing partner

• Opportunity to significantly grow the business


Financial Review

Comparable Sales Growth

20

Since start of transformation in 2016, Company has delivered 9 consecutive quarters of positive comparable sale growth

8.3%Fiscal 2016

12.1%Fiscal 2017

3.3%Q1 Fiscal 2017

6.4%Q1 Fiscal 2018

Note:

See Disclaimer – Non-IFRS Measures and Retail Industry.

Sales

21Note:


Fiscal 2017($ millions)

Q1 Fiscal 2018($ millions)

Fiscal 2016 Fiscal 2017

+16.3%YoY Increase in DTC Sales

+15.7%YoY Increase in Total Sales

Q1 Fiscal2017

Q1 Fiscal2018

+9.0%

+5.8%

281.9

326.1

48.2

51.0

YoY Increase in DTC Sales

YoY Increase in Total Sales

Adjusted DTC Gross Margin

22Note:


Fiscal 2017 Q1 Fiscal 2018

+206Basis Points 56.4%

59.1%

Q1 Fiscal2017

Q1 Fiscal2018

+271Basis Points

~100% benefit from:

• Reductions in costs

• More favourable product mix of higher-margin items

• More full-price selling

Negligible net F/X gains

90% benefit from:

• Reductions in costs

• More favourable product mix of higher-margin items

• More full-price selling

10% net F/X gains

57.3%

59.4%


Investing in the

growth of the

business

Key Investments

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Supporting higher sales

Driving long-term growth

• Enhanced consumer experience

• More stores

• Renovations, relocations and expansions

• eCommerce platform

• Great leaders and professionals joining the team

• Building a global brand

Adjusted EBITDA

24Note:


• Sales growth

• Gross margin improvements

• Strategic investments in growth

Fiscal 2017 ($ millions) 41.6

52.6


-1.7

-3.1

Q1 Fiscal 2017 Q1 Fiscal 2018Q1 Fiscal 2018 ($ millions)

Adjusted Net Income Per Share

25Note:


• Better effective tax rate

• Reduction in interest expense

0.51

0.69


-0.09

-0.11

Q1 Fiscal 2017Q1 Fiscal 2018

Fiscal 2017 ($)

Q1 Fiscal 2018 ($)

Fiscal 2019 Financial Targets

26

• Better effective tax rate

• Reduction in interest expense

See Disclaimer – Forward Looking Information

See Disclaimer – Non-IFRS Measures and Retail Industry Metrics.

Sales(in $ millions)

282

410-450

FY2016A FY2019E

Adjusted EBITDA (in $ millions)

42

61-68

FY2016A FY2019E

Adjusted Net Income (in $ millions) 21

35-40

FY2016A FY2019E

FY2016A –FY2019E CAGR

13-17%

FY2016A –FY2019E CAGR

14-18%FY2016A –FY2019E CAGR

18-23%

+300 bpsAdjusted DTC margin over FY2016

Modernizing the Brand & Transforming the Business

27See Disclaimer – Forward Looking Information

2/3 growth from Canada

Strategically investing in growth

Stronger foothold in US market

eCommerce 20-22% of DTC sales

Expanding presence in Taiwan and China

Positioned to enter new international markets

Solid foundation for growthin leather and footwear

Opportunity to double business in Canada

100+ store opportunityin the US

Further growth of eCommerce as percent of total DTC sales

Stronger global brand with larger international presence

Accelerated growth in leather and footwear

By end of Fiscal 2019 Fiscal 2020 and Beyond

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