HIGH PERFORMANCE SPORTS EQUIPMENT

Forward-Looking Statements
Certain statements in this presentation about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words may, will, would, should, could, expects, plans, intends, trends, indications, anticipates, believes, estimates, predicts, likely or potential or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. Forward-looking statements are based on estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Certain assumptions in respect of the determination of the impairment of losses, claim liabilities, income taxes, employee future benefits, goodwill and intangibles are material factors made in preparing forward-looking information and managements expectations. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forwardlooking statements, including, without limitation, the following factors: inability to introduce new and innovative products, intense competition in the equipment and apparel industries, inability to introduce technical innovation, decrease in ice hockey, roller hockey and/or lacrosse participation rates, adverse publicity, inability to maintain and enhance brands, reliance on third-party suppliers and manufacturers, disruption of distribution chain or loss of significant customers or suppliers, cost of raw materials and shipping freight and other cost pressures, protection of trademarks and other proprietary rights, weather conditions or seasonal fluctuations in the demand for our products, a change in the mix or timing of orders placed by customers, inability to forecast demand for products, inventory shrinkage or excess inventory, inability to expand into international market segments, product liability claims and product recalls, compliance with standards of testing and athletic governing bodies, departure of senior executives or other key personnel, litigation, employment or union related matters, disruption of information technology systems, restrictive covenants in our Credit Facility (defined herein), anticipated levels of indebtedness, inability to translate booking orders into realized sales, inability to generate sufficient cash to service all the Companys indebtedness, inability to continue making strategic acquisitions, fluctuations in the value certain foreign currencies, including but not limited to the Canadian dollar, euro, Swedish krona, Chinese renminbi, Taiwan dollar and Thai baht, in relation to the U.S. dollar, general economic and market conditions, current adverse economic conditions, changes in consumer preferences and the difficulty in anticipating or forecasting those changes, changes in government regulations, inability of counterparties and customers to meet their financial obligations, natural disasters, as well as the factors identified in the Risk Factors section of Bauers final prospectus. Such factors are not intended to represent a complete list of the factors that could affect us; however, these factors should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of managements expectations regarding the Companys financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forwardlooking statements contained in this presentation are made as of March 29, 2012, and we have no intention and undertake 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 law. The forward-looking statements contained in this presentation are expressly qualified by this cautionary statement.

At a Glance
Recent Corporate History (Founded 1927)
Listed: Employees: Head Office: 1995 Nike Acquires Canstar
2008 Acquired by Kohlberg & Co. from Nike 2011 IPO on TSX

TSX: BAU 400 Exeter, New Hampshire $225.3 million 30,046,115 $7.58 - $4.99

Market cap: Shares outstanding: 52 week trading range:

#1

#1

ICE HOCKEY

ROLLER HOCKEY

49%

MARKET SHARE

55%
(1)

PERFORMANCE A P PA R E L

2010 Entry into LACROSSE

MARKET SHARE

442%

FISCAL 09-11 Growth

(1)

$100M

MARKET

$359M
3

Revenue

$51.5M Adjusted EBITDA

Source: Management Estimates. (1) TTM period ended November 30, 2011.

Investment Highlights

#1 and fastest growing global ice hockey company World-class performance sports platform Strong revenue and cash flow growth Growing in attractive segments and new sport markets

Bauer Worldwide
400 EMPLOYEES WITH AVERAGE TENURE OF 10 YEARS
Vantaa, Finland (Sales) Goteborg, Sweden (Sales & Admin)

Mississauga, Ontario (Sales , Admin & Distribution)

Boras, Sweden (3PL)

St.-Jerome, Quebec (R&D)

Irvine, CA (Mission) New York, NY (Maverik)

Exeter, NH (HQ)

Rosenheim, Germany (Sales) Taichung City, Taiwan (Sourcing & QC)

Chicago, IL (3PL)

Strong North American base Significant presence in Europe and Russia Asian contract manufacturing base

GLOBAL SALES, DISTRIBUTION AND MANUFACTURING FOOTPRINT

5

Global Consumer Base

Hockey Estimated 6 million total players worldwide Approximately 1.4 million registered players globally US and Canada each has over 500,000 registered players Unregistered players represent 3X registered players

FY11 NET SALES

Lacrosse >600,000 lacrosse players worldwide Youth participation +138% since 2001 to nearly 300,000 Fastest growing high school sport over the last 10 years with >228,000 players Fastest growing sport over the last six years at the NCAA level with 557 teams in 2009

Rest of the World

25%
US

Canada

39%

36%

GROWING GLOBAL MARKETS

6

Growing Ice Hockey Participation

U.S.

Registered players 8 and under increased 10% in 2010-11

Adult membership up 11% over prior year Total membership increase in 2010-11 largest since 1994-95

Canada Registered players down <1% over prior year and up 2% since 2007-08 Total membership up 4% since 2006-07
Rest of World Registered players up 4% over prior year Data less robust outside North America PARTICIPATION RATES ARE GROWING ON A GLOBAL BASIS
7
Source: USA Hockey, Hockey Canada, IIHF.

Industrys Fastest Growing Market Share

GLOBAL ICE HOCKEY EQUIPMENT MARKET SHARE 49%
45%
41% 35% 28% 42%

2006

2007

2008

2009

2010

2011

CO N T I NUOUS P RO DUC T I NNOVATI ON

8
Source: Management Estimates. Fiscal year ended May 31.

Performance Sports Platform

BRAND

INSIGHT

R&D

IP

8 P R O D U C T C AT E G O R Y B U S I N E S S U N I T S

PROFIT & GROWTH

9

8 Category Business Teams

Skates Helmets Marketing Sales R&D

Protective Planning Goalie

Finance Manufacturing Sticks

Apparel Lacrosse Roller hockey

S C A L A B L E P L AT F O R M
10

Powerful and Authentic Brand

WE LIVE WHERE THE PLAYER LIVES

Dynamic and informative web site Strong social media presence 185,000 facebook likes

Bauer.com Unique Visitors

(Millions)

2.1 1.6 1.8

2011/12 Season Tour: 150+ events 25,000+ consumer demos 90% Intend to Buy

1.2
0.6

2008
(nikebauer.com)

2009

2010

2011

projected

2012

9 0 + % U N A I D E D B R A N D A WA R E N E S S
11

Deep Insight into Consumer Needs

N E W P R O D U C T S C O N S U M E R S WA N T
12

World Class R&D and Product Innovation Process

5 - Y E A R I N N O VAT I O N C Y C L E

ADVANCED BIOMECHANICAL RESEARCH

PROTOTYPE DESIGN

M AT E R I A L S & M A N U FACT U RI N G SOURCED FROM ADVANCED INDUSTRIES

EXTENSIVE FIELD TESTING

C O M M E R C I A L I Z AT I O N DETERMINE BEST PRODUCTION METHODS

1 0 0 - 1 5 0 N E W C U T T I N G - E D G E P R O D U C T S A N N U A L LY
13

Significant Intellectual Property Portfolio

G L O B A L PAT E N T S & T R A D E M A R K S :
materials, designs and technologies SKATES
HELMETS APPAREL

600+

Boot: Plastic Inserts & One Piece Construction

Blade Holder

To o l - F r e e Adjustment

Base Layer Shirt with Integrated Neck Protection

BARRIER TO ENTRY WITH LEVERAGE IN OTHER SPORTS

14

Platform Leverage
Hockey
SUCCESS CRITERIA Brand Insight R&D IP

Performance Apparel
MISSIONITECH
SUCCESS CRITERIA Brand BAUER JOCK PLUS SUCCESS CRITERIA Brand Insight R&D IP

Lacrosse

BAUER

BAUER

MAVERIK

Insight R&D IP

2008 acquisition 4th largest hockey company Increased market Leadership & Profitability

2009 acquisition Launch of industrys first integrated neck protector 442% increase in category sales since FY09

2010 acquisition $110 million market with CAGR of >10% Fastest growing U.S. team sport Targeting market leadership by 2015

15

Financial Performance
NET SALES
US $ Millions

$359

$306 $220 $242 $257

80+% Organic Growth

2008

(1)

2009

(1)

2010

(1)

2011

(1)

2012

(2)

ADJUSTED GROSS PROFIT

$142.8 $122.9 $86.2
39.3% 35.3%

$51.5

ADJUSTED EBITDA
$30.7

$43.5

$85.6

$97.9 $22.9
38.0% 40.2% 39.7% 10.4%

$27.1
11.2%

14.3% 14.2%

11.9%

2008(1)
16

2009(1)

2010(1)

2011(1)

2012(2)

2008(1)

2009(1)

2010(1)

2011

(1)

2012

(2)

(1) Fiscal year ended May 31. (2) LTM period ended November 30, 2011.

Strong Cash Flow Conversion

Low capex requirements

Favourable tax attributes

Flexible credit facility $91 million term loan maturing March 2016 (1.77x Adjusted EBITDA) $100 million revolving credit facility

Adjusted EBITDA
US $ Millions

Capex

$51.5 $43.5
$27.1

Leverage Ratio
4 3 2

(4)

$30.7

$22.9

$2.6
Q2/11 Q3/11 Q4/11 Q1/12 Q2/12

$0.9
2009
(1)

$1.5
2010
(1)

$5.4
2011
(1) (2)

$6.2
2012
(2) (3)

2008(1)

STRONG CASH FLOW TO FUND GROWTH

17
(1) Fiscal year ended May 31. (3) LTM period ended November 30, 2011. (2) Includes $2.4 million build out of new corporate HQ. (4) Leverage Ratio = Net Indebtedness/EBITDA.

Growth Strategy
Increase Ice and Roller Hockey Share and Profitability Target Under-developed Price Points Grow Apparel Across All Sports Categories Capitalize on the Fast Growing Lacrosse Market Pursue Strategic Acquisitions

18

#1 Share in Every Hockey Equipment Product Category

F Y 1 1 M A R K E T S H A R ES BY C AT EG O RY
#1 #1

>60%

>60%
#1
>35% >35%

#1
>35% >35%

#1
>35% >35%

Skates

Helmets

Goalie

Sticks

Protective

LARGER SHARE THAN NEAREST FOUR BRANDS COMBINED

19
Source: Management Estimates.

New Product Introductions Goalie Helmet

4 different flex options that can be changed in seconds

Free floating suspension liner provides rotational impact protection

I N N O V AT I V E & PAT E N T E D T E C H N O L O G Y
20

Third Product Family

Skates, sticks and under protective Targeted to specific fit and performance profile Different launch cadence Increase Bauer presence at retail Third most popular skate in NHL

C O M P L E M E N T S T H E V A P O R A N D S U P R E M E P R O D U C T FA M I L I E S
21

Target Under-developed Price Points

BAUER REVENUE BY SEGMENT

Recreational

25%
Performance

Elite

45%

30%

Bauer strength is in elite price points Ability to offer superior quality and performance at lower price points Opportunity to utilize other authentic hockey brands

LEVERAGE BRAND DOMINANCE AND MARKET SHARE

22
Fiscal year ended May 31, 2011.

Grow Apparel Across All Sports Categories

GLOBAL WHOLESALE HOCKEY A P PA RE L SA L ES
Performance

Grow Existing Footprint

Performance Base Layer Lifestyle Bags

Base Layer

Expand Team Apparel

Licensed Jerseys

Lifestyle

Uniform (Develop/acquire)

Off-Ice (Develop/acquire)
Bags Team Uniform

Licensed Lifestyle

Develop Licensed Apparel

Lifestyle (Develop/acquire) Jersey (NHL License - 2014/2016)
(1)

Team Off-Ice

2011 $350 million

Highly fragmented market FY12 H1 increase YOY of 27% in apparel category

FOCUS ON A LARGE NEW OPPORTUNITY

23
(1) Source: Management Estimate.

Capitalize on the Fast Growing Lacrosse Market

US$110 Million Market Growing at >10%

Leverage R&D strength to deliver high performance products Share intellectual property Expand distribution through Bauers network
TA R G E T I N G M A R K E T L E A D E R S H I P B Y 2 0 1 5
24

Pursue Strategic Acquisitions

C R I T E R I A

Ability to leverage world-class consumer products platform

Existing or potential market leaders

Strong and authentic brands

Sports that demand innovative performance products

A P PA R E L A N D N E W S P O R T S E Q U I P M E N T M A R K E T S
25

Summary

#1 and fastest growing global ice hockey company World-class performance sports platform Strong revenue and cash flow growth

Growing in attractive segments and new sport markets

26

Appendix
HIGH PERFORMANCE
S P O R T S E Q U I P M E N T

27

Continued Strong Performance in Most Recent Quarter

+29% $142.4

+27%
Revenue

$100.3 +31% $79.2

Gross Profit Adj. EBITDA

+13%
$68.2 +47% $48.4 +58% +21% +96% +365% $7.9 $15.7 +40% ($2.7) $30.8 +20% $10.0 +33% $59.5 +24% $34.9 +21% $33.6 +18% $9.3

$27.8

Q2 FY11

Q3 FY11

Q4 FY11

Q1 FY12

Q2 FY12

A1

Consistent Growth Through the Seasons (Trailing Twelve Month data)

$359 $338 $298 $283 $306

Revenue +27% Gross Profit +32% Adj. EBITDA +29%

$133.8 $106.0 $113.7

$139.7

$119.1

$40.0

$41.7

$43.4

$50.1

$51.5

Q2 FY11

Q3 FY11

Q4 FY11

Q1 FY12

Q2 FY12

A2

Shareholder Profile

Current Shareholdings
Directors 0% Officers <1%

Private Equity sponsor (Kohlberg & Co.) remains controlling shareholder Public holds approx. 1/3 shares

Public 34% Kohlberg Funds 59%

Other Pre-IPO Investors 7%

Fully-Diluted Shareholdings
Directors 5% Officers 10%

Public 31%
Other PreIPO Investors 5%

Kohlberg Funds 49%

A3