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June 2017

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Page 1: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

June 2017

Page 2: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Certain statements in this presentation that are not historical fact may be deemed “forward-looking

statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and Summer intends

that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking

statements include statements regarding the market position of Summer; the growth prospects of Summer;

anticipated sales and operating results; the development of new products; demand for Summer’s products;

and Summer’s business strategy. Summer cautions that these statements are qualified by important factors

that could cause actual results to differ materially from those reflected by such forward-looking statements.

Such factors include the concentration of Summer’s business with retail customers; the ability of Summer to

compete in its industry; Summer’s dependence on key personnel; Summer’s reliance on foreign suppliers; the

costs associated with pursuing and integrating strategic acquisitions; the costs associated with protecting

intellectual property; and other risks as detailed in Summer’s Annual Report on Form 10-K for the fiscal year

ended December 31, 2016, and subsequent filings with the Securities and Exchange Commission. The

information contained in this presentation is accurate as of the date set forth on the cover page. Summer

assumes no obligation to update the information contained in this presentation.

Safe Harbor

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Investor Highlights

Leading provider of juvenile products with strong, well-known brands and emerging sub-brands

• Summer - Monitors, Safety, Gear, & Bath

• SwaddleMe - Nursery

• Born Free - Feeding

Positive industry dynamics

• Stabilization of birth rates and 1st child spend are up

• More Millennial parents with higher disposable income

• Baby boomers spending on duplicate equipment for grandparents home

New management

• Enhanced experience across functional areas

• Focus on improving operating performance and continued debt reduction

Expanding revenue potential

• Focus on consumer driven innovation in core categories

• International markets

• Brand protection

Earnings expansion underway

• Streamlined operations

• Exited poorly performing products / licensing arrangements

• Focus on high-margin categories and effective pricing strategies3

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Business Overview

Unique Positioning to Meet Moms

Needs

Brand

KeyCategories

Creating a safe, calm feeding experience

Innovative Care & Safety products that provide peace

of mind

The authority on safe sleep

A Portfolio of Strong Brands with Focus on Key Parenting NeedsServing Key Consumer Touch Points in Safety, Safe Sleep, and Feeding

Leveraging Brand Positioning, Breadth of Product Offering & Innovation to Improve Consumer Relationship

Monitors

Gates

Bath & Potty

Strollers

Travel Accessories

Highchairs/Boosters

Swings/Bouncers

Bottles

Pacifiers

Teethers

Feeding

Electronics

Wearable Blankets

Infant Sleep Aids

Bedding

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Business Overview

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Turnaround Progressing

Streamlined, Focused Operations

• Exited non-core, low-margin areas & licensing agreements

• Slashed $4M in annual costs

- G&A expenses down 10% versus 2015

• Reduced inventory to lowest levels in recent history

- Greatly improved quality of inventory

• Restructured credit facilities, saving $1M in cash annually

• Now focused on high-margin, targeted growth markets

• Continue to drive cash flow

• Further reduce debt and de-lever balance sheet

Summer Infant in Strong Position to Accelerate Top Line Expansion

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Page 6: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Focus on Core Brands & Channel Diversification

Focus on Core Brands

• Reduction or elimination of lower profit licensed and private label products

• Product innovation focus on Summer and SwaddleMe brands and sub brands

• Goal of new product introductions each year representing at least 20% of annual revenue

Customer & Channel Diversification

• Increased focus and growth from e-commerce; now 30% of sales from 23% in 2015

• Future revenue opportunities identified in International, emerging sub brands, and new product introductions

• Working with select large retailers to enhance presence on their websites

• Working to improve mobile and e-commerce capabilities on summerinfant.com

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All Other12%

Baby Specialty

21%

E-Comm30%

International14%

Mass23%

2016 Sales by Channel

Babies R UsBuyBuyBaby

Walmart (US)Target (US)

Amazon, Diapers.com, all Other US & Int E-Comm

Page 7: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Understanding Millennial Moms

59% bought a product

recommended by another mom on a

parenting site 44% make purchases online via

their smartphone

85% of the time they spend online

is using APPS

9,000 Babies each day are born to our Millennial

Mom

Millennials represent $170

billion in annual purchasing power

Connected:

Texting, pinning, tweeting, status updating; she spends

on average 17.4 hours a week on Social media.

Believe strongly that recommendations by other parents (46%)

and experts (35%) is important

Share Everything/Share Often:

Online and in-person, she talks about her product experiences and solicits feedback from her

peers when planning a purchase.

7*various sources and Company data

Understanding Millennial Moms

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Worldwide distribution

Toys r Us Dubai

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Award winning

Products!

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Summer Monitors

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Wide View 2.0

• Large 5” color LCD video display

• Wide view lens technology

• Soft glow night light

• Automatic night vision

• Digital zoom

• Talk back to baby

• Sound lights

• Add up to 4 cameras

• 800ft range

• Adjustable swivel camera

• Table top or wall mountable

Wide view lens allows parent’s to see 4x more of baby’s room

Page 12: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Summer Safety

My Size Pottyo Look and feel of an adult toilet o Helps ensure a comfortable and confident transition

to the real thing.o Toilet handle makes a flushing sound o With built in wipe dispensero Exceeding all expectations o 4.3 stars on Amazon

Waterfall Baby Bathero Soothing waterfall feature circulates water to help

clean and warm babyo Removable bolster to support newborns

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Page 13: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Summer StrollersIn Industry Top Five in 3 Years

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3Dtote

• Convenience stroller with large storage

• XXL expandable storage basket

• Diaper bag hooks on handlebars

• Side & back storage pockets

• Cup holder, baby bottle holders, & toy loops

• 1 hand recline

• Large canopy with peek window

• Compact fold with auto-lock & carry strap

• Smooth glide wheels

• Super padded contoured hand grips

• Holds up to 50lbs

Page 14: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

SwaddleMe – 4 Stages of Swaddleso SwaddleMe knows that when your baby sleeps better,

you sleep better. Our entire line of sleep products has been expertly designed and tested to keep babies snug, safe, and comfy every night throughout their first year.

SAFER SLEEP. BRIGHTER DAYS.

SwaddleMe Wearable Blanket• Mother & Baby Awards, Best Newborn Sleep Aid – BRONZE 2010• She Knows Parenting Awards 2013• American Baby, BESTS 2013• Mom’s Choice Awards, SILVER 2015

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Pop Line – Portable On The Go ProductsPop ‘n Jump is the perfect entertainer for parents and babies on the go! It’s compact, light-weight folding frame comes fully assembled and sets up in seconds.

• Pop ‘n Sit Portable Booster makes feeding time easy with a removable, BPA free tray, innovative pop and fold set-up, and over the shoulder carrying bag. Rated 4.8 stars

• Pop ‘n Sit High Chair is perfect for dining on-the-go or even in the patio with your little one. When your baby needs a place to eat, just pop it open.

• Pop’n Play Ultimate Playard allows you to create a safe portable play area for baby.

Consumer Digest Best Buy

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Awards & Recognition

Multi-Use Extra Tall Walk-Thru Gate

About

• A top pregnancy & parenting resource• Over 2M followers on social media• Babycenter.com receives over 26M unique

monthly visitors (UMV)

BabyCenter

2016 Moms’ Picks Award

Products are voted on by parents as their best-in-class picks for each category.

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Page 17: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Financials

Gross Margin Growth Year/Year17

April 1, 2017 April 2, 2016

Net sales 47,340$ 49,670$

Cost of goods sold 32,051 33,944

Gross profit 15,289$ 15,726$

General and administrative expenses (1) 9,272 10,753

Selling expense 3,911 3,916

Depreciation and amortization 1,056 1,156

Operating income/(loss) 1,050$ (99)$

Interest expense 724 640

Income/(loss) before taxes 326$ (739)$

Income tax provision/(benefit) 156 (406)

Net income/(loss) 170$ (333)$

Income/(loss) per diluted share 0.01$ (0.02)$

Shares used in fully diluted EPS 18,599,386 18,386,572

(1) Includes s tock based compensation expense

Three Months Ended

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Balance Sheet

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April 1, 2017 December 31, 2016

(unaudited)

Cash and cash equivalents $ 724 $ 999

Trade receivables, net 34,369 34,137

Inventory, net 36,839 36,140

Property and equipment, net 9,811 9,965

Intangible assets, net 14,621 14,813

Other assets 5,288 5,683

Total assets $ 101,652 $ 101,737

Accounts payable $ 28,359 $ 30,684

Accrued expenses 8,724 7,757

Current portion of long-term debt 4,500 4,500

Long term debt, less current portion 42,176 41,206

Other long term liabilities 2,728 2,770

Total l iabilities 86,487 86,917

Total stockholders’ equity 15,165 14,820

Total l iabilities and stockholders’ equity $ 101,652 $ 101,737

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Adjusted EBITDA & EPS Reconciliation

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April 1, 2017 April 2, 2016

Reconciliation of Adjusted EBITDANet income/(loss) (GAAP) 170$ (333)$

Plus: interest expense 724 640

Plus: provision/(benefit) for income taxes 156 (406)

Plus: depreciation and amortization 1,056 1,156

Plus: non-cash stock based compensation expense 85 127

Plus: permitted add-backs 169 1,984

Adjusted EBITDA (Non-GAAP) 2,360$ 3,168$

Reconciliation of Adjusted EPS

Net income/(loss) (GAAP) 170$ (333)$

Plus: permitted add-backs 169 1,984

Tax impact of items impacting comparability (57) (675)

Adjusted Net income/(loss) (Non-GAAP) 282$ 976$

Adjusted Earnings per diluted share (Non-GAAP) 0.02$ 0.05$

Three Months Ended

Page 20: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Investor Highlights• Leading Designer &

Supplier of Juvenile Products

• Strong Well-Known Brands

• Positive Industry Dynamics

• Experienced Management Team

• Focused on Core Strengths: R&D, Leveraging our Brands, and Operational Excellence

• Targeted Growth Strategies in all Product Categories

.

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Page 21: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Use of Non-GAAP Financial Metrics

This presentation includes certain financial information not derived in accordance with generally accepted

accounting principles (“GAAP”). This presentation includes references to EBITDA, which is defined as income

before interest and taxes plus depreciation, amortization, deal-related fees and non-cash stock option expense.

Summer believes that the presentation of this non-GAAP measure provides information that is useful to

investors as it indicates more clearly the ability of Summer’s assets to generate cash sufficient to pay interest

on its indebtedness, meet capital expenditure and working capital requirements and otherwise meet its

obligations as they become due. This presentation includes references to adjusted EBITDA and adjusted

earnings per diluted share. Adjusted EBITDA is defined as income before interest and taxes plus depreciation,

amortization, non-cash stock option expense and bank permitted add-backs.

Recipients of the presentation and other interested persons are advised to read all reports and other filings

made by Summer with the Securities and Exchange Commission under the Securities Act of 1933, as amended,

and Securities Exchange Act of 1934, as amended, including, but not limited to, Summer’s Annual Report on

Form 10-K for the year ended December 31, 2016. You can obtain a copy of any of these filings, without charge,

by directing a request to Summer Infant, Inc., 1275 Park East Drive, Woonsocket, RI 02895, or on the Internet at

the SEC’s website, www.sec.gov.

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Page 22: PowerPoint Presentations22.q4cdn.com/957603896/files/doc_presentations/... · another mom on a parenting site 44% make purchases online via their smartphone 85% of the time they spend

Thank You

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