Confidential Information Summer Infant -- Do Not Distribute
Summer Infant – Investor PresentationMay 2015
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, 2014, 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
2
Investor Highlights
Leading provider of juvenile products with strong, well-known 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
New management
• Enhanced experience across functional areas• Focus on improving operating performance, and reducing debt
Expanding revenue potential
• Focus on consumer driven innovation in core categories• Expanding e-commerce opportunities• International markets and specialty retail
Earnings expansion underway
• Streamlined operations• Exiting poorly performing products / licensing arrangements• Focus on high-margin categories and effective pricing strategies
3
Business Overview
Unique Positioning
to Meet Moms Needs
Brand
KeyCategories
Creating a safe, calm feeding experience
Innovative Care & Safety products that
provide peace of mindThe authority on safe
sleep
A Portfolio of Strong Brands with Focus on Key Parenting Needs
Serving Key Consumer Touch Points in Safety, Safe Sleep, and Feeding
Leveraging Brand Positioning, Breadth of Product Offering & Innovation to Improve Consumer Relationship
MonitorsGates
Bath & PottyStrollers
Travel AccessoriesHighchairs/Boosters
Swings/Bouncers
BottlesPacifiersTeethersFeeding
Electronics
Wearable BlanketsInfant Sleep Aids
Bedding
4
Product Priorities
Monitors Expansion
Social Engagement
Content
Apps & Software
Expansion
Monitor
Nursery
Feeding
Safety
On-the-Go
Demonstrated Strength in New Product Developmentresulting in year-over-year growth in key areas
Monitors +4%
WiFi Video Monitor
SwaddleMe +10%
Expanded Shelf Space
Safety +5%
Pop ‘N Play
Gear +51%
3D Lite Strollers
2015 Opportunity
Bottle GeniusNew Feeding System
5
Focused Brand StrategyInnovative New Products
Unique Positioning
to Meet Moms Needs
Brand
Continue to strengthen Continue to strengthen
Focused Growth Opportunity
Little Me / SwaddleMe Co-branded swaddle blankets
Available Mid-2015
*Dates for availability are subject to change
Focused Growth
Opportunity
Glass Bottles
Currently Available
Bottle Genius
Currently Available
Ultimate Pop ‘N Play
Available Now
HD Video Monitors
Available Now
Keep Me Warm
Available Now
Focused Growth Opportunity
3Dzyre Stroller
Available Now
6
Focus on Core Brands• Reduction in lower profit licensed brands
• 2014 revenue from Summer owned brands increased 8.75%
• Product innovation focus on Summer, SwaddleMe and Born Free brands
• New product introductions each year represent at least 20% of annual revenue
Focus on Core Brands & Channel Diversification
Baby Specialty 28%
E-Commerce 20%
Specialty 3%Department Stores 3%
Discount/Outlet 3%
Mass 21%
International 16%
All Other 6%
2014 Sales by Channel
Babies R Us BuyBuyBaby
(Excludes drop ship)
Canada, EMEA, APLA
Walmart (US)Target (US)
(Excludes .COM)Amazon
Diapers.ComZulily
US & INT Retailers(.COM/Drop Ship)
Customer & Channel Diversification
• Top 7 customer; 74% 2014 vs. 78% 2013
• Increased focus and growth from e-commerce; up 40% year-over-year
• Future revenue opportunities identified in International, Specialty & Department Stores
• Working with select large retailers to enhance our presence on their websites
• Working to improve mobile and e-commerce capabilities on summerinfant.com
7
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.
8
Email Blast to our Summer Circle Subscribers
Expanding Digital Strategy
Video content for use on social, owned website & retailer sites
Sweepstakes shared across social media and website
Seeding & support for Online Reviews
9
Turnaround in Progress
• Focus on Brands• Streamlined product focus• Exited non-core areas & licensing agreements• 140 bps higher gross margin year-over-year• 32% increase YoY in Adjusted EBITDA
• Target new markets• Further expand margins• Restructure credit facilities • Drive cash flow• Pay down debt• Leverage G&A structure
2014 Successes
Focus for 2015
10
Senior Leadership Team
Bob Stebenne 30+ Years ExperienceCEO, President and Chief Operating Officer Adept at increasing business profitability
Bill Mote 20+ Years ExperienceChief Financial Officer Deep global financial acumen
Ken Price 30+ Years Experience President of Sales & Marketing Extensive customer relationships
Tony Paolo 30 Years Experience SVP, Quality Assurance Commitment to exceptional quality
Ron Cardone 30 Years Experience SVP, Information Technology Pragmatic approach to IT information resources
Mark Strozik 20+ Years Experience SVP, Human Resources Strong talent management background
Dan Almagor 30+ Years ExperienceExecutive Chairman Established turnaround - global leadership
14
• Experienced & Focused Management Team
• Leading Designer & Supplier of Juvenile Products
• Strong Well-Known Brands• Positive Industry Dynamics• Focus on Core Strengths: NPD,
Monitors, Safety, Nursery• Targeted Growth Categories:
Gear, Feeding• 2015 Year of Stability &
Earnings & Balance sheet Improvement
Investor Highlights
15
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. The
presentation of this additional information should not be considered in isolation or as a
substitute for results prepared in accordance with GAAP. Summer has included a
reconciliation of this information to the most comparable GAAP measures in its filings
with the Securities and Exchange Commission.
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, 2014. 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.
Use of Non-GAAP Financial Metrics
16