NYSE/TSX: PSG

INVESTOR PRESENTATION

OCT 2015

Forward-Looking Statements

NYSE/TSX: PSG

This presentation includes forward-looking statements about Performance Sports Group Ltd. (the Company) within the meaning of applicable securities laws, including with respect to, among others, our current and future plans, including our five key
growth opportunities, our expectations and intentions, specifically with respect to our supply chain profitability improvement initiative, our cash flow improvement plan and the anticipated resulting $30M net working capital reduction in fiscal 2016, our
results, levels of activity, performance, achievements or goals, including, use of Q30 Sports LLCs (Q30) patent and technology assets in the development of products that are intended to reduce the incidence of mTBI in sports and athletic activities,
future payments to Q30 in connection with certain product development and sales milestones being achieved, obtaining and maintaining approvals from the FDA and Health Canada that are necessary to market and sell products containing the
applicable licensed patent and technology assets, and successfully bringing to market products that may have the ability to reduce the incidence of mTBI in sports and athletic activities, opening an additional 6-8 Own the Moment retail experiences over
the next several years, our Own the Moment retail experiences being profitable in 18-24 months and being less than $0.01 dilutive to Adjusted EPS in fiscal 2016 and accretive in fiscal 2017, or other future events or developments (collectively, forwardlooking statements). The words may, will, would, should, could, expects, plans, intends, trends, indicates, 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 current 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 under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Certain estimates and assumptions are material factors made in preparing forward-looking information
and managements expectations, including certain estimates with respect to our market share and assumptions with respect to macroeconomic factors such as currency rates, labor, raw materials and other input costs remaining at or near current levels,
the determination of the impairment of assets, claim liabilities, income taxes, employee future benefits, goodwill and intangibles.
Many factors could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors: inability to maintain and enhance brands, inability to introduce new
and innovative products, intense competition in the sporting equipment and apparel industries, inability to own, enforce, defend and protect intellectual property rights worldwide, costs associated with potential lawsuits to enforce, defend or protect
intellectual property rights, inability to protect our known brands and rights to use such brands, infringement of intellectual property rights of others, inability to translate booking orders into realized sales, including risks associated with changes in the
mix or timing of orders placed by customers, seasonal fluctuations in our operating results and the trading price of our common shares, decrease in popularity of ice hockey, baseball and softball, roller hockey or lacrosse, reduced popularity of the
National Hockey League, Major League Baseball or other professional or amateur leagues in sports in which our products are used, adverse publicity of athletes who use our products or the sports in which our products are used, inability to ensure thirdparty suppliers will meet quality and regulatory standards, reliance on third-party suppliers and manufacturers, disruption of distribution systems, loss of significant customers or suppliers, loss of key customers business due to customer consolidation,
change in the sales mix towards larger customers, cost of raw materials, shipping costs and other cost pressures, risks associated with doing business abroad, inability to expand into international market segments, inability to accurately forecast demand
for products, inventory shrinkage, excess inventory due to inaccurate demand forecasts, product liability, warranty and recall claims, inability to successfully design products that satisfy testing protocols and standards established by testing and athletic
governing bodies, inability to obtain and maintain necessary approvals in respect to products that may be considered medical devices, inability to successfully open and operate Own The Moment Hockey Experience retail stores, inability to successfully
implement our strategic initiatives on anticipated timelines, including our profitability improvement initiative, risks associated with our third-party suppliers and manufacturers failing to manufacture products that comply with all applicable laws and
regulations, inability to source merchandise profitably in the event new trade restrictions are imposed or existing trade restrictions become more burdensome, departure of senior executives or other key personnel with specialized market knowledge
and technical skills, litigation, including certain class action lawsuits, employment or union-related disputes, disruption of information technology systems, including damages from computer viruses, unauthorized access, cyberattack and other security
vulnerabilities, potential environmental liabilities, restrictive covenants in our credit facilities, increasing levels of indebtedness, inability to generate sufficient cash to fund operations or service our indebtedness failure to make, integrate, and maintain
new acquisitions, inability to realize growth opportunities or cost synergies that are anticipated to result from new acquisitions such as Easton Baseball/Softball, undisclosed liabilities acquired pursuant to recent acquisitions, volatility in the market price
for Common Shares, possibility that we will need additional capital in the future, incurrence of additional expenses as a result of the loss of our foreign private issuer status, assertion that the acquisition of the Bauer Hockey Business at the time of the
Canadian IPO was an inversion transaction, our current intention not to pay cash dividends, dependence on the performance of subsidiaries given the our status as a holding company, potential inability of investors to enforce judgments against the
Company and its directors, fluctuations in the value of certain foreign currencies, including the Canadian dollar, in relation to the U.S. dollar, and other world currencies, general adverse economic and market conditions, changes government regulations,
including tax laws and unanticipated tax liabilities and natural disasters and geo-political events, as well as the factors identified in the "Risk Factors" sections of our annual report on Form 10-K and quarterly report on form 10-Q, which are available on
EDGAR at www.sec.gov and SEDAR at www.sedar.com.
The purpose of 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 forward-looking statements contained in this presentation are made as of the date of this presentation, 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.
Presentation of Financial Information
The pro forma information contained in this presentation should not be considered to be what the actual financial position or other results of operations would have necessarily been had the Company and Easton Baseball/Softball operated as a single
combined company, as, at, or for the periods stated.
This presentation makes reference to certain non-GAAP measures, including Adjusted Gross Profit, EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Earnings Per Share (EPS), Free Cash Flow and certain measures expressed on a constant
currency basis. These non-GAAP measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by GAAP, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather,
these measures are provided as additional information to complement those GAAP measures by providing further understanding of results of operations from managements perspective. Accordingly, they should not be considered in isolation nor as a
substitute for analyses of financial information reported under the applicable accounting standards. For the relevant definitions and reconciliations to our reported results, see the Appendix to this presentation, including Non-GAAP Measures.
All $ references in this presentation are to U.S. dollars unless otherwise stated.
This presentation is copyright 2015 Performance Sports Group Ltd. All rights reserved.

NYSE/TSX: PSG

Who We Are
Performance Sports Group (PSG) is a leading
developer and manufacturer of high performance
sports equipment and related apparel
We are the No. 1 global brand in hockey and No. 1
North American brand in diamond sports with an
expanding presence in the growing lacrosse market

We Are a Growth Company

$ Millions

$446 $116

Our mission is to elevate player performance and

protection through athlete insight and superior
innovation
Our brands have a rich history of innovation,
authenticity and market leadership, with BAUER
and EASTON dating back to 1927 and 1922,
respectively
Our company produces predictable and significant
Free Cash Flow

$675

Revenues
Adj. EBITDA

$375

$400

$306
$62

$257
$44

$69

$52

$31
FY10

FY11

FY12

FY13

FY14

FY15

Fiscal year ends May 31. FY15, FY14 and FY13 represent U.S. GAAP; FY12 and FY11 are IFRS;
FY10 is Canadian GAAP.
See Appendix for a reconciliation of Adj. EBITDA.
2FY14 includes only six weeks of EASTON revenues and EBITDA.
FY15 represents constant currency in U.S. Dollars at FY14 FX rates. See Appendix for a
reconciliation of constant currency revenue and Adj. EBITDA, both non-GAAP measures.

NYSE/TSX: PSG

A Powerful Brand Portfolio

#1 in Hockey
(~56% Share)

Diamond Sports
Leader (~30% Share)

Lacrosse Equipment
Leader (~28% Share)

Soccer & Team

Apparel Engine

NYSE/TSX: PSG

A Large and Growing Addressable Market

We target a ~$3.3B addressable wholesale
market ($2.0B equipment, $1.2B apparel)
Global sporting goods industry grew at a 3%
CAGR to $56.9B from 2009 to 2014
Strong dollar value growth due to positive
underlying fundamentals and attractive
purchasing patterns
Short replacement cycle driven by core youth
consumers outgrowing their equipment and
parents wanting highest performing products
for their children
One to two year product cycles ensure
relentless flow of latest technologies
Consistent innovation drives higher average
selling prices
Management estimates.

2014 Estimated
Market Size
($ in millions)

Anticipated Industry
Growth Percentage

Hockey equip.
(Global)

$670

Low-Single-Digit to
Mid-Single-Digit

Hockey apparel
(Global)

$390

Mid-Single-Digit to
High-Single-Digit

Baseball/Softball
equip.
(Global)

$1,200

Low-Single-Digit

Baseball/Softball
apparel
(Global)

$560

Low-Single-Digit

Lacrosse equip.
(U.S., Canada)

$120

Mid-Single-Digit to
High-Single-Digit

Lacrosse apparel
(U.S., Canada)

$40

Mid-Single-Digit to
High-Single Digit

Soccer team
apparel
(U.S., Canada)

$300

Low-Single-Digit to
Mid-Single-Digit

Sport/Category

TSX: BAU

THE PSG PLATFORM

NYSE/TSX: PSG

PSG Platform Advantage

Independent Consumer & Customer-Facing Functions Driving Growth
Sales

Hockey

Marketing

Lacrosse

Research, Design
& Development

Baseball / Softball

Soccer

Authentic Brands / Consumer Insight / World Class R&D / Strong IP

PSG Functional Platform Enabling Growth

Advance R&D

Sourcing &
Manufacturing

Distribution &
Logistics

IT & HR

Finance & Legal

NYSE/TSX: PSG

World-Class R&D is a Competitive Advantage

~4% of annual revenues spent on R&D

Innovative Technologies

Strong track record of technical design

and product development through fiveyear innovation cycle

TUUK Lightspeed Edge:

Revolutionary, trigger-based
system allows for immediate
replacement of steel and tighter
turns

Portfolio includes 638 global patents

Team of more than 75 designers,
engineers and developers
Legacy of redefining product categories
R&D, technology and materials
leveraged across multiple sports
Utilize strategic partnerships to enhance
R&D (e.g. McGill University, UPMC)

Includes design patents and patents pending.

EASTON Mako Torq:

Patented rotating handle
allows batter to get barrel into
hitting zone quicker and keep
it there longer

Base Layer feat. 37.5

Technology: Fast-drying
moisture management
delivers high level of
performance
8

NYSE/TSX: PSG

Shared R&D Across Our Sports Platform

Collaborative product
development process exemplifies
potential of our integrated
platform

Cross-Pollination Case Study Helmets

Multi-disciplinary approach to
product development is
organized by product categories
within each sport
Takes advantage of our categorybased integrated R&D platform
This approach has been
successful in leveraging
innovation, such as helmet
technology between BAUER and
EASTON/CASCADE

EASTON Z7 Baseball
Helmet

BAUER RE-AKT 100

Hockey Helmet

CASCADE R Lacrosse
Helmet

Other examples of leveraging technology

across the platform:
Lacrosse and hockey gloves
Apparel development
Under-protective gear
Carbon fiber
9

NYSE/TSX: PSG

Diversified and Balanced Business Model

Geography

Category

Canada

Q4
Hockey

~42% of sales from

outside the U.S., ~24%
in Canada

Q1

Baseball/
Softball

Q3

Geographically
balanced sales presence in over 60
countries

Distribution

Other
Sports

Rest of
World
U.S.

Season

Q2

Broad product offering

across all major
equipment categories

EASTON balanced
quarterly sales and
profitability

Increasing team and

related-apparel offering
limits reliability on any
one product type, sport
season or geography

Also improved physical

distribution, raw
material purchasing,
internal manufacturing
and more efficient
utilization of 3rd party
manufacturing

5,000+ retailers in
Canada, U.S.,
Scandinavia and
Finland; 60+
distributors in other
intl markets
Low customer
concentration (one
customer ~10% of sales)
Most sales are to
independent/specialty
retailers:
Total Hockey
Pro Hockey Life
Lacrosse Unlimited
Monkey Sports
Baseball Express
10

NYSE/TSX: PSG

Proven Acquisition Expertise

2008
We acquire Mission-Itech,
4th largest hockey
equipment company,
providing entrance into
roller hockey & expansion
of ice hockey categories

2010
We acquire
lacrosse
equipment maker
MAVERIK & enter
2nd major sport

2012
We acquire Inaria,
establishing one-stopshop for team apparel
(hockey, lacrosse &
soccer)

2014
We acquire Easton
Baseball/Softball, No. 1
market share company in
North America,
significantly expanding
baseball presence

History of Successfully Identifying and Integrating Accretive Acquisitions

2009
We acquire IP
assets of Jock
Plus, entering
performance
apparel market

2012
We acquire lacrosse
helmet maker
CASCADE,
significantly
expanding presence
in lacrosse

2013
We acquire
baseball &
softball bat
manufacturer
COMBAT, entering
3rd major sport

2015
We acquire a license to
technology assets from
Q30 Sports, a company
dedicated to developing
products intended to
reduce traumatic brain
injury

11

Seasoned Management Team

NAME & TITLE

YEARS
AT PSG

NYSE/TSX: PSG

PAST FIVE YEARS EXPERIENCE

Kevin Davis
Director, CEO

13

President and CEO, PSG

Amir Rosenthal
President, PSG Brands and CFO

CFO and Treasurer, PSG; CFO and EVP of Finance and Administration, and
Treasurer, PSG

Paul Gibson
Chief Supply Chain Officer

27

Chief Supply Chain Officer, PSG; EVP, Product Creation and Supply Chain,
PSG

Rich Wuerthele
EVP, Bauer Hockey

EVP, Bauer Hockey; President, Tools Business Segment, Newell Rubbermaid;

President, Industrial Products & Services, Newell Rubbermaid; President,
North American Sales Organization, Newell Rubbermaid

Todd Harman
EVP, Easton Baseball/Softball

<1

EVP, Easton Baseball/Softball; President, Cleveland Golf USA

Troy Mohns
EVP, New Business Development & Corporate
Strategy

19

EVP, New Business Development & Corporate Strategy, PSG; VP, Lacrosse
and New Business, PSG; VP of Category Management, PSG; VP of Business
Development, PSG

Angela Bass
EVP, Global Human Resources

EVP, Global Human Resources, PSG; DSVP Human Resources, Collective

Brands Performance + Lifestyle Group

Michael Wall
VP, General Counsel and Corporate Secretary

VP, General Counsel and Corporate Secretary, PSG

12

TSX: BAU

GROWTH OPPORTUNITIES

NYSE/TSX: PSG

Five Key Growth Opportunities

1
2
3
4
5

Significantly Grow Share As we did with hockey, expand our

market share in baseball/softball by:
in Baseball/Softball
Continue to Grow in
Hockey

Grow Apparel Across All

Sports

Continue Rapid Growth

in Lacrosse

Continue to Pursue
Strategic Acquisitions

Investment in product development

Category management discipline
Strong consumer connections

Category Market Share

Strong market share
growth in hockey...

56%

Like hockey 6-7 years ago, our

baseball/softball brands have:
Market share of ~30%
Very strong presence in a single category
(with strength in others)
Approx. a dozen competitors in a
fragmented market

...with plan
to capitalize
on similar
opportunity
in baseball/
softball.

35%
30%

Leverage technologies of EASTON and

COMBAT
Territorial expansion of both diamond
sports brands
Grow apparel to include uniforms

FY07

FY15

Hockey
Management estimates.

FY15

Baseball/
Softball
14

NYSE/TSX: PSG

Five Key Growth Opportunities

1
2
3
4
5

Significantly Grow Share

in Baseball/Softball

Continue to Grow in
Hockey

Grow Apparel Across All

Sports

Continue Rapid Growth

in Lacrosse

Continue to Pursue
Strategic Acquisitions

Grow sticks the largest ice

hockey product category

Our Hockey Performance

Estimated % Market Share

56%

Expand market share in all

other categories
35%

First Shift initiative

Continue to innovate and
redefine product categories
through 5-year product
innovation cycle
Own the Moment retail
stores to elevate BAUER brand
Boston store opened Aug 2015,
Minneapolis store to open fall
2015
6-8 additional stores planned in
key U.S. and Canadian markets

FY07

FY15

Estimated Market Share by Category

#1
70%+

Skates

#1
65%+

#1
65%+

#1

#2

45%+

35%+

Helmets Protective Sticks

Goalie

15

NYSE/TSX: PSG

Five Key Growth Opportunities

1
2
3
4
5

Significantly Grow Share

in Baseball/Softball

Continue to Grow in
Hockey

Apparel market highly fragmented

Apparel revenues increased at
47% CAGR from FY09-FY15
Inaria acquisition provided team
uniform capabilities

Continue strong growth in hockey

apparel

Grow Apparel Across All

Expand lacrosse uniform launch
Sports
Grow soccer apparel and uniform
market share
Continue Rapid Growth
in Lacrosse

Continue to Pursue
Strategic Acquisitions

Sample Apparel Products

Apparel Market Size by Sport

~$560

Large opportunity in
baseball/softball

($ in millions)

~$390

~$300

Continue R&D investments in

apparel
Management estimates.

~$40
Baseball/Softball

Hockey

Soccer

Lacrosse

16

Five Key Growth Opportunities

1
2
3
4
5

Significantly Grow Share

in Baseball/Softball

Continue to Grow in
Hockey

Grow Apparel Across All

Sports

Continue Rapid Growth

in Lacrosse

Continue to Pursue
Strategic Acquisitions

NYSE/TSX: PSG

CASCADE and MAVERIK enjoy ~28%

market share today
Targeting market leadership by
2016
Focus on core youth and high
school markets
Maintain our factory customization
competitive advantage

Grow in every category

Expand into team apparel
Expand womens equipment
offering (launched in 2013)
Develop compelling offering for
womens head protection
17

Five Key Growth Opportunities

1
2
3
4
5

Significantly Grow Share

in Baseball/Softball

Continue to Grow in
Hockey

Grow Apparel Across All

Sports

Continue Rapid Growth

in Lacrosse

Continue to Pursue
Strategic Acquisitions

NYSE/TSX: PSG

PSG is an acquirer of choice

Global operating platform applicable to
many sports
Steady cash flow generation and strong
balance sheet

Weve established an effective

internal process for identifying,
acquiring and integrating target
companies
Target acquisition parameters
Ability to leverage world-class
performance sports platform
Existing or potential market leaders
Authentic brand equity and strong IP
assets
Sports that demand high-quality,
innovative performance products
18

Q30 Sports Transaction

NYSE/TSX: PSG

In Oct 2015, PSG acquired the exclusive, perpetual,

worldwide license to sports-related patent and
technology assets from Q30 Sports for $7M
Q30 patent and technology assets address
important issue of mild traumatic brain injury (mTBI)
in sports and athletic activities
Q30 technology has shown a reduction in mTBI in
both animal and human studies
Q30 has developed the first technology that
attempts to reduce mTBI internally rather than
through external protections, such as helmets
PSG and Q30 have initiated the process of bringing
this promising technology to market with both the
U.S. FDA and Health Canada
Nov 17, 2015 press conference in New York will
explain the technology and latest research results
Future payments of up to $18M if certain product development and sales milestones are achieved.

19

$30 Million Supply Chain Initiative

NYSE/TSX: PSG

Five-year plan introduced Oct 2014

Goal: improve pre-tax profit by $30M
Expected benefit to begin FY16 with
$3M, $5-$7M expected in each of FY1719, and $9M in FY20

Focused on efficiency, product cost

reductions and inventory quality
improvements
Expected to increase service levels
throughout supply chain
Additional focus on improving
distribution footprint and shifting goto-market strategy

Profitability improvements incremental

to previously disclosed $2M of synergies
resulting from EASTON acquisition
Target of $30M assumes that unit volumes remain constant and that certain macroeconomic factors such as currency rates, labor, raw material and other input costs will
remain at or near current levels. The estimate excludes certain non-recurring or one-time costs associated with the initiative.

20

NYSE/TSX: PSG

FINANCIAL HIGHLIGHTS

NYSE/TSX: PSG

Historical Financial Performance

Revenues
Strong Revenue
Growth, Stable
Gross Margins

Adjusted EBITDA
$675M

Predictable Cash
Flow Generation

Adjusted EPS
$116M

Earnings Growth
Exceeds Revenue
Growth
$1.32

$446M
$375M

$400M

$69M

$0.98

$1.00

FY13

FY14

$0.81

$63M
$306M
$52M
$0.55

$44M

FY11

FY12

FY13

FY14

40.2%

Adj. Gross Margin

38.7%
38.3% 36.9%

FY15
37.3%

FY11

FY12

FY13

FY14

14.2%

Adj. EBITDA Margin

13.7%
15.6%
15.5%

FY15
17.2%

FY11

FY12

5.6%

Adj. Net Income Margin

6.8%
8.9%
8.4%

FY15
9.1%

Fiscal year ends May 31. FY15, FY14 and FY13 represent U.S. GAAP; FY12 and FY11 are IFRS.
1A reconciliation of Adj. Gross Profit, Adj. EBITDA, Adj. Net Income and Adj. EPS is included in the appendix. Margin percentages are calculated by dividing applicable margin dollars by revenues.
FY14 includes only six weeks of contribution from EASTON.
FY15 represents constant currency in U.S. Dollars at FY14 FX rates. See Appendix for a reconciliation of constant currency revenue, Adj. Gross Profit, Adj. EBITDA and Adj. EPS, all non-GAAP

measures.

22

Consistent Revenue Growth Across

Four Seasons

NYSE/TSX: PSG

$ Millions
% Year-Over-Year Growth
$197.1
28%

$189.5
$176.3

(4%)

51%

$154.0

$156.1
$141.3

$109.6

38%

127%

$117.1

$112.9

7%

$86.7
$54.9

30%

$62.2
13%

FY14

FY15

Q1

FY16

FY13

FY14

Q2

FY15

FY13

FY14

Q3

Fiscal year ends May 31. FY16, FY15, FY14 and FY13 represent U.S. GAAP.
Represents constant currency in U.S. Dollars. See Appendix for a reconciliation of constant currency revenue, a non-GAAP measure.

FY15

FY13

FY14

FY15

Q4
23

Predictable and Significant Free Cash Flow

NYSE/TSX: PSG

Capex has averaged 1.6% of revenues

PSG Free Cash Flow

$57.1M

To support our growth initiatives, we

expect moderately higher levels of
capex
Initiated cash flow improvement plan
focused on streamlining inventory

$41.5M
$36.3M

Expect $30M net working capital

reduction in FY16

$30.8M

PSG cash flow used for:

$17.5M
$13.3M

FY10

FY11

FY12

FY13

FY14

FY15

R&D
Debt reduction (currency neutral
leverage ratio of 4.11x and 5.73x on a
reported basis)
Growth initiatives (including
acquisitions)

Fiscal year ends May 31. FY15, FY14 and FY13 represent U.S. GAAP; FY12 and FY11 are IFRS; FY10 is Canadian GAAP.
See appendix for a reconciliation of Free Cash Flow, a non-GAAP measure. Free Cash Flow excludes impact from acquisition of Easton
Baseball/Softball.
Fiscal 2010 through 2015 average.
A non-GAAP measure defined as TTM average revolver balance less TTM average cash plus actual term debt divided by currency neutral TTM EBITDA.

24

NYSE/TSX: PSG

PSG Key Takeaways

World-class performance sports company with
proven platform

Revenues
Adj. EBITDA

$675

$ Millions

Our brands have a rich history of innovation,

authenticity and market leadership

#1 global ice hockey company and #1 brand in

diamond sports in North America
Leading lacrosse company with estimated 90%
market share in helmets
Growing organically and via acquisitions in
attractive segments and new sport markets
Predictable and significant Free Cash Flow
generation

$446 $116

$375

$400

$306
$62

$257
$44

$69

$52

$31
FY10

FY11

FY12

FY13

FY14

FY15

Fiscal year ends May 31. FY15, FY14 and FY13 represent U.S. GAAP; FY12 and FY11 are IFRS;
FY10 is Canadian GAAP.
See Appendix for a reconciliation of Adj. EBITDA.
2FY14 includes only six weeks of EASTON revenues and EBITDA.
FY15 represents constant currency in U.S. Dollars at FY14 FX rates. See Appendix for a
reconciliation of constant currency revenue and Adj. EBITDA, both non-GAAP measures.

25

NYSE/TSX: PSG

APPENDIX

BAUER to Open First-Ever Retail Experience

NYSE/TSX: PSG

Branded as Own The Moment, Boston debuted

Aug 2015 and Minneapolis to open fall 2015
6-8 addl stores to open in key U.S. and Canadian
hockey markets over the next several years
20,000+ sq. ft. premium stores offer unmatched
fit expertise and product education

Build-out cost per store is ~$2.5-$3M

Expected to grow BAUERs hockey market share
and be profitable in 18-24 months
Less than $0.01 dilutive to Adj. EPS in FY16 and
accretive in FY17

Strategic rationale:
Elevate BAUER brand
Deliver unmatched consumer educational
experience
Serve as the ultimate BAUER brand/product
showcase
27

Non-GAAP Financial Measures

NYSE/TSX: PSG

Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS, Adjusted Net Income/Loss and constant currency are non-GAAP financial measures. These non-GAAP financial
measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by GAAP, and are therefore unlikely to be comparable to similar
measures presented by other companies. When used, these measures are defined in such terms as to allow the reconciliation to the closest GAAP measure. These
measures are provided as additional information to complement those GAAP measures by providing further understanding of the Companys results of operations from
managements perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Companys financial information reported under
GAAP. The Company uses non-GAAP financial measures, such as Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS, Adjusted Net Income/Loss and constant currency
metrics, to provide investors with a supplemental measure of its operating performance and thus highlight trends in its core business that may not otherwise be apparent
when relying solely on GAAP financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-GAAP
financial measures in the evaluation of issuers. The Company also uses non-GAAP financial measures in order to facilitate operating performance comparisons from period
to period, prepare annual operating budgets, and to assess its ability to meet future debt service, capital expenditure, and working capital requirements.
Adjusted Gross Profit, Adjusted EBITDA, Adjusted EPS, Adjusted Net Income/Loss and constant currency metrics are non-GAAP financial measures. Adjusted Gross Profit is
defined as gross profit plus the following expenses which are part of cost of goods sold: (i) amortization and depreciation of intangible assets, (ii) non-cash charges to cost
of goods sold resulting from fair market value adjustments to inventory as a result of business acquisitions, (iii) reserves established to dispose of obsolete inventory
acquired from acquisitions and (iv) other one-time or non-cash items. Adjusted EBITDA is defined as EBITDA (net income adjusted for income tax expense, depreciation and
amortization, losses related to amendments to the credit facility, gain or loss on disposal of fixed assets, net interest expense, deferred financing fees, unrealized
gains/losses on derivative instruments, and realized and unrealized gains/losses related to foreign exchange revaluation) before restructuring and other one-time or noncash charges associated with acquisitions, other one-time or non-cash items, pre-Canadian initial public offering sponsor fees, costs related to share offerings, as well as
share-based payment expenses. Adjusted EPS is defined as Adjusted Net Income/Loss divided by the weighted average diluted shares outstanding. Adjusted Net
Income/Loss is defined as net income adjusted for all unrealized gains/losses related to derivative instruments and unrealized gains/losses related to foreign exchange
revaluation, non-cash or incremental charges associated with acquisitions, amortization of acquisition-related intangible assets for acquisitions since the Companys initial
public offering in Canada, costs related to share offerings, share-based compensation expense and other non-cash or one-time items.
All references to constant currency, a non-GAAP financial measure, reflect the impact of translating the current period results at the monthly foreign exchange rates of
the prior year period, the effect of changes in the value of the Canadian dollar against the U.S. dollar on our cost of goods purchased for sale outside of the United States,
including the related realized gains/losses on derivatives and the realized gains/losses generated from revaluing non-functional currency assets and liabilities. The reported
foreign exchange impact does not include the impact of fluctuations in Asian currencies against the U.S. dollar and their related effect on our Asian-sourced finished goods.
For more information, see Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations - Factors Affecting our Performance Impact of
Foreign Exchange and Hedging Practices in the Companys annual report on Form 10-K and Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations - Factors Affecting our Performance Impact of Foreign Exchange and Hedging Practices in the Companys quarterly report on Form 10-Q dated
October 14, 2015.

A reconciliation of these non-GAAP financial measures to the relevant GAAP measure can be found in the tables in the appendix of this presentation and in the Company's
annual report on Form 10-K and quarterly report on From 10-Q under Non-GAAP Financial Measures.

28

NYSE/TSX: PSG

Quarterly Constant Currency Reconciliation

PSG
($ in Millions)

Revenues

Three Months Ended 5/31/15

Three Months Ended 11/30/14

Reported

Constant
Currency

$172.3

$176.3

Impact of
Foreign
Exchange
($4.0)

Revenues

Revenues

Reported
$137.7

$141.3

Impact of
Foreign
Exchange
($3.6)

$147.6

$156.1

($8.5)

Three Months Ended 8/31/15

Three Months Ended 2/28/15

Constant
Currency

Reported

Constant
Currency

Impact of
Foreign
Exchange

Revenues

Reported

Constant
Currency

Impact of
Foreign
Exchange

$175.0

$189.5

($14.5)

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NYSE/TSX: PSG

Annual Constant Currency Reconciliation

PSG
($ in Millions)

Twelve Months Ended 5/31/15

Impact of
Foreign
Constant
Exchange
Currency
Reported

Revenues

$654.7

$675.2

($20.5)

Adjusted Gross profit

$229.4

$251.8

($22.4)

Adjusted EBITDA

$98.3

$116.4

($18.1)

Adjusted Net Income

$47.5

$61.4

($13.9)

Adjusted EPS

$1.02

$1.32

($0.30)

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NYSE/TSX: PSG

Adjusted Gross Profit Reconciliation

PSG
($ Millions)

Year Ended
05/31/11
IFRS

Year Ended
05/31/12
IFRS

Year Ended
05/31/13
U.S. GAAP

Year Ended
05/31/14
U.S. GAAP

Year Ended
05/31/15
U.S. GAAP

Gross profit

$119.1

$142.6

$147.2

$154.3

$206.4

Amortization & depreciation of intangible assets

3.2

2.5

3.6

4.8

13.6

Inventory step-up/step-down & reserves

0.6

1.7

4.6

7.0

Other

0.5

1.0

2.4

$122.9

$145.1

$153.0

$164.7

$229.4

Adjusted Gross Profit

Impact of foreign exchange
Constant Currency Adjusted Gross Profit

(22.4)
$251.8

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NYSE/TSX: PSG

Adjusted EBITDA Reconciliation

PSG

Year Ended
05/31/11
IFRS

Year Ended
05/31/12
IFRS

Year Ended
05/31/13
U.S. GAAP

Year Ended
05/31/14
U.S. GAAP

Year Ended
05/31/15
U.S. GAAP

$0.4

$30.2

$25.2

$20.0

$3.3

Income tax expense (benefit)

0.4

13.1

8.6

6.3

3.4

Depreciation & amortization

7.8

5.7

8.3

11.1

21.3

Loss on extinguishment of debt

0.3

2.6

Gain on bargain purchase

(1.2)

Loss on disposal of fixed assets

0.2

Realized loss on derivatives & loss on extinguishment of debt

3.6

10.4

7.6

7.3

8.1

17.3

1.5

1.2

1.5

1.6

2.5

Unrealized (gain)/loss on derivative instruments, net

12.4

(14.3)

(0.9)

2.0

2.2

Foreign exchange (gain)/loss

(3.4)

2.7

(0.5)

(4.8)

19.6

$33.1

$46.2

$48.6

$47.1

$69.6

Acquisition-related charges

1.6

4.0

7.5

15.6

18.0

Other

1.7

1.0

3.5

Costs related to share offerings

8.2

0.8

0.5

0.1

Share-based payment expense

0.6

1.3

4.2

4.7

7.1

$43.5

$51.5

$62.8

$68.9

$98.3

($ Millions)

Net income (loss)

Interest expense, net

Deferred financing fees

EBITDA

Adjusted EBITDA
Impact of foreign exchange
Constant Currency Adjusted EBITDA

(18.1)
$116.4

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NYSE/TSX: PSG

Adjusted EPS Reconciliation

PSG

Year Ended
05/31/11
IFRS

Year Ended
05/31/12
IFRS

Year Ended
05/31/13
U.S. GAAP

Year Ended
05/31/14
U.S. GAAP

Year Ended
05/31/15
U.S. GAAP

$0.4

$30.2

$25.2

$20.0

$3.3

Unrealized foreign exchange loss/(gain)

10.5

(11.9)

(1.1)

(1.5)

20.4

Costs related to share offerings

10.6

0.8

0.5

0.1

($ Millions)

Net income (loss)

Acquisition-related charges

1.3

4.0

9.5

19.2

30.5

Share-based payment expense

1.4

1.3

4.2

4.7

7.1

Other

0.8

3.9

3.5

Tax impact on above items

(6.9)

1.9

(3.6)

(9.5)

(17.4)

$17.3

$25.5

$35.8

$37.3

$47.5

31.4

31.7

36.4

37.5

46.4

$0.55

$0.81

$0.98

$1.00

$1.02

Adjusted net income (loss)

Average diluted shares outstanding
Adjusted EPS
Impact of foreign exchange
Constant Currency Adjusted EPS

(0.30)
$1.32

33

NYSE/TSX: PSG

Free Cash Flow Reconciliation

PSG

Year Ended
05/31/10
Canadian
GAAP

Year Ended
05/31/11
IFRS

Year Ended
05/31/12
IFRS

Year Ended
05/31/13
U.S. GAAP

Year Ended
05/31/14
U.S. GAAP

Year Ended
05/31/15
U.S. GAAP

$30.7

$43.5

$51.5

$62.8

$68.9

$98.3

Capital expenditures

1.5

5.4

4.5

7.4

6.0

17.6

Interest expense, net

10.5

11.9

7.4

6.9

8.1

16.9

Term loan amortization

4.5

5.8

8.9

9.6

7.0

Net cash taxes (inflow)/outflow

0.9

2.9

(0.1)

2.6

6.2

6.8

$13.3

$17.5

$30.8

$36.3

$41.5

$57.1

($ Millions)

Adjusted EBITDA

Free Cash Flow

34

NYSE/TSX: PSG