Monro, Inc.Investor
Presentation
June 2020
Certain statements in this presentation, other than statements of historical fact, including estimates, projections, statementsrelated to our business plans and operating results are forward-looking statements within the meaning of the PrivateSecurities Litigation Reform Act of 1995. Monro has identified some of these forward-looking statements with words such as“anticipates,” “believes,” “expects,” “estimates,” “is likely,” “predicts,” “projects,” “forecasts,” “may,” “will,” “should,” and“intends” and the negative of these words or other comparable terminology. These forward-looking statements are based onMonro’s current expectations, estimates, projections and assumptions as of the date such statements are made, and aresubject to risks and uncertainties that may cause results to differ materially from those expressed or implied in the forward-looking statements, to include the significant uncertainty relating to the duration and scope of the COVID-19 pandemic andits impact on our customers, executive officers and employees. Additional information regarding these risks anduncertainties are described in the Company’s filings with the Securities and Exchange Commission, including in the “RiskFactors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of ourmost recently filed periodic reports on Forms 10-K and Form 10-Q, which are available on Monro’s website athttps://corporate.monro.com/investors/financial-information/. Monro assumes no obligation to update or revise theseforward-looking statements for any reason, even if new information becomes available in the future.
In addition to including references to diluted earnings per share (“EPS”), which is a generally accepted accountingprinciples (“GAAP”) measure, this presentation includes references to adjusted diluted earnings per share, which is a non-GAAP financial measure. Monro has included a reconciliation from adjusted diluted EPS to its most directly comparableGAAP measure, diluted EPS in Slide 17. Management views this non-GAAP financial measure as a way to better assesscomparability between periods because management believes the non-GAAP financial measure shows the Company’s corebusiness operations while excluding certain non-recurring items and items related to our Monro.Forward or acquisitioninitiatives.
This non-GAAP financial measure is not intended to represent, and should not be considered more meaningful than, or asan alternative to, its most directly comparable GAAP measure. This non-GAAP financial measure may be different fromsimilarly titled non-GAAP financial measures used by other companies.
2
Safe Harbor Statement and Non-GAAP Measures
Company Overview
• 75% maintenance service, 25% tires
• $675,000 a year in sales per store
−Tire brand stores – 784 stores (excluding wholesale)
• 55% tires, 45% maintenance service
• $1.0 million a year in sales per store
8 wholesale locations and 3 retread facilities
A Leading Chain of Independently Owned and Operated Tire and Auto Service Locations
Dominant in the Northeastern U.S. and expanding in Southern and
Western markets
Fiscal 2020 sales of $1,256.5million
1,260 company operated stores in 32 states and 98 franchised
locations as of June 12, 2020
39 acquisitions in the past 8 fiscal years, adding 518 locations,$710
million in revenue and entry into 13 new states
Operating two store formats in key markets as of March 28,2020
−Service brand stores – 499 storesStore locations as of 6/12/20
3
A Unique Operating Model
Monro Has a Diversified Supply Chain, Sourcing High Quality, Low Cost Parts Direct and a Strong Portfolio of Tire Brands
PARTS
Secondary parts distribution:Monro sources these parts from leading
aftermarket parts suppliers:
4
Brake Rotors and Pads
Filters
Steering and Suspension
Wipers
Belts
TIRES
Store locations as of 6/12/20
300
290
280
270
260
250
240
230
220
210
200
2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021* 2022*
A Favorable Industry Backdrop
Favorable Industry Backdrop for Automotive Services with the
Vehicles in Operation Expected to Grow Significantly Over the Next Few Years
U.S. Annual Light Vehicle Sales
Total Miles Traveled in U.S.
Source: FRED Economic data, Light weight Vehicle Sales: Autos and Light Trucks
U.S. Light Vehicles in Operation (VIO)
Growing total vehicle population related to consumers
owning vehicles longer
270+ million vehicles on the road
Increasing age of vehicles (average of ~12 years)
2019 total annual miles driven up ~0.9% y/y
Increasing complexity of vehicles
Favorable demographics
Key Highlights
5Source: FRED Economic data, Moving 12-Month Total Vehicle Miles Traveled
20
18
16
14
12
10
8
6
4
2
004 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
2,775,000
2,850,000
2,925,000
3,000,000
3,075,000
3,150,000
3,225,000
3,300,000
04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Source: Lang, IHS Markit. *2020 – 2022 are estimated figures
A Favorable Industry Backdrop
Monro is Well-Positioned to Capitalize on Positive Industry Trends,
with Our Sweet Spot Experiencing the Fastest Growth in Vehicles in Operation
Vehicles in Operation – 0 to 5 Years Vehicles in Operation – 6 to 12 Years
120
110
100
90
80
70
60
50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
+6.56% CAGR -.03% CAGR
Strong growth in new vehicles (0-5 years) between 2012
and 2017 is creating a significant tailwind for the 6-12year
old vehicle cohort for the next few years
6-12 year cohort expected to grow the fastest at+3.9%
CAGR for the period 2017-2022
Monro’s targeted market segment is the 6-12 yearcohort
120
110
100
90
80
70
60
502012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
-3.97% CAGR +3.90% CAGR
Vehicles in Operation – 13+ Years
+4.27% CAGR +1.47% CAGR120
110
100
90
80
70
60
50
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source for all data: Lang, IHS Markit, 2018
Key Highlights
6
A Favorable Industry Backdrop
Monro Operates in the $238 Billion Do-It-For-Me* Segment of $297 Billion U.S. Automotive Aftermarket Industry
Automotive Aftermarket DIFM vs. DIY Sales
Source: Autocare Association Factbook
2010%
(outlets)2018
%
(outlets)CAGR
Dealers 18,460 14.3% 16,753 12.7% (1.2%)
General
Repair
Garages76,108 58.8% 81,087 61.5% 0.8%
Tire Dealers 18,675 14.4% 20,316 15.4% 1.1%
Specialty
Repair8,663 6.7% 6,465 4.9% (3.6%)
Oil
Change/Lube7,518 5.8% 7,301 5.5% (0.4%)
Total 129,424 100.0% 131,922 100.0%
Source: Autocare Association Factbook
DIFM continues to gain share from DIY
segment
Vehicle complexity continues to drive shift to
DIFM from DIY
Future technology advances expected to
accelerate shift to DIFM
DIFM vs. DIY Trends
Industry still highly fragmented, with significant
opportunities for further consolidation
Key Highlights
* Includes Replacement Tire Segment 7
-
2012 2013 2014 2015 2016 2017 2018
DIFM
DI
Y
300,000
250,000
200,000
150,000
100,000
50,000
0
Consensus data for 2012; estimates for 2013-2018
Driving Long-Term Sustainable Growth
Enhance Customer-Centric
Engagement• Customer retention
• Customer acquisition
• Omnichannel
Accelerate Productivity
& Team Engagement• Optimized store staffingmodel
• Clearly defined career path and
enhanced training program
• Aligned compensation
Improve Customer Experience• Online reputation management
• Consistent in-store experience
• Consistent store appearance
Scalable Platform to
Drive Sustainable
Growth
8
Investments in Technology and Data-Driven Analytics to Support Strategic Initiatives
Optimize Product &
Service Offering• Redefined selling approach
• Optimized tire assortment
Monro.Forward Progress Update
Enhance Customer-
Centric Engagement
Monro.Forward Progress Positions Us Well to Emerge Stronger Post COVID-19 Crisis
Data-driven store scheduling and staffing software in pilot stages with full rollout
expected to be completed by Q2FY21
Optimizing staffing schedules during COVID-19 crisis and beyond
Rolled out the Monro University program across store base and are expanding course
content
Implemented mandatory onboard training to support new hires
Accelerate Productivity
& Team Engagement
New pricing and category management technology to drive margin improvement and
optimize product portfolio in pilot stages, rollout to be completed by end of Q2FY21Optimize Product &
Service Offering
Executing customer satisfaction and online reputation management program across
Monro’s store base
Focus on the in-store experience is having significant impact on Company online
reviews and has increased “Star Ratings” to 4.6 All-time
Modernized store infrastructure, including new digital phone system, progressing as
planned
Recently expanded Amazon.com collaboration at more than 1,000 stores, supporting
omnichannel efforts
Improve Customer
Experience
9
Strong performance of rebranded stores in Q4FY20 prior to COVID-19
Substantially completed transformation of 42 recently acquired California locations
during Q4FY20
Pre-COVID-19 plan to close 42 stores, six in Q4FY20 and 36 in Q1FY21, to
streamline portfolio supported by data analytics
Improve Customer
Experience
Store Rebrand & Reimage Initiative is an Important Part of Company Transformation
Store Rebrand & Reimage Initiative
10
Monro.Forward: Investments in Technology
Significant Investments in Technology to Support Monro.Forward Strategy
Area Strategic Rationale Timing
Business Intelligence • KPI dashboards for stores and management• Launched in Q4 FY18
• Ongoing company-wide expansion
Monro University
Learning Management System
• Ensures consistent onboarding and teammate training
• Develop clear career paths
• Deliver standard operating procedure training
• Launched in Q3 FY19
• Ongoing expansion across store base
Store Network
Infrastructure Upgrade
• Enable and support cloud based merchandisingstrategy
• Enable customer-facing technology
• Installed in 840 stores
• To be implemented across base by Q1
FY21
Digital Phone and Customer
Communication System
• Eliminate cost of analog phone system
• Simplify phone execution for store personnel
• Enable customer-centric call and text messaging management
• In more than 700 stores
• To be implemented across base by Q1
FY21
Store Staffing Model&
Scheduling System
• Eliminate paper-based scheduling
• Optimizes store staffing and day part scheduling
• Improves part-time scheduling capabilities
• Pilot in Q4 FY20
• To be launched across base by Q2 FY21
Tire Category Management &
Pricing System
• Enterprise solution to dynamically manage pricing at the SKU level
• Partially automates optimization of tire volume/margins by providing
real-time elasticity
• Pilot launched in Q4 FY20
• To be launched across base by Q2 FY21
Cloud-Based Car Inspection
Scanning Tool
• State of the art technology for technicians to provide industry-
leading service
• Provides efficient tool for actively managing customer needs
• In pilot stages
• To be implemented in FY21
11
Omnichannel: Amazon.com Collaboration
Collaboration With Amazon.com Supports Monro’s Online Tire Retailers Installation Strategy
Expanded Amazon.com Collaboration
Monro’s tire installation services available to customers who purchase tires
online from Amazon.com and select the Ship-to-Store option
Expanded collaboration to an additional 378 stores during Q1FY21,
increasing the amount of service locations to over 1,100 stores
By July 2020, Monro expects to have rolled out its Amazon tire installation
services to all of its more than 1,200 locations in 32 states
Increased traffic driven by integration with online tire retailers
12
Scalable Platform to Drive Sustainable Growth
Continue to increase store density in our 32 states
Expand geographically into attractive markets
On average, acquisitions represent the opportunity for 10%
annual sales growth
Acquisition growth drives scale and operating margin expansion,
strengthening competitive advantages
Same Store Sales Growth
Through Monro.Forward, drive higher
customer retention and acquisition rates
Acquisitions
Create value through profitable
acquisitions
Greenfield Expansion
Continue new store openings in existing
markets
A Scalable Business Model with Multiple Avenues for Growth
13
A Proven M&A Strategy
Monro’s Acquisition Strategy Has Delivered Significant Growth Over the Years
A Proven Track Record
39 acquisitions in the past 8 fiscal years, adding 518 locations and $710 million in revenue
Entered 13 new states, expanding our presence in the Southern and Western markets
Average acquisition size:
13 stores
~$20 million in annualized sales growth
141Greenfield stores include new construction as well as the acquisition of one to four store operations
Recent Acquisition Activity in Fiscal 2020
Expanded geographic footprint into the Western region with acquisitions of 51 stores and one distribution center in California, 14 stores in Nevada and four in Idaho, all new states for Monro
Further solidified position in Southern markets with acquisitions of 20 stores in Lousiana, whichrepresents a new state for Monro
Added 10 greenfield1 locations during the year (excludes two California stores that are included above)
COVID-19 Response
Executing on Key Priorities During This Critical Period
15
Protecting the well-being of our
teammates
Promoting the safety of our
customers and communities
Prioritizing health &
safety in all aspects of
our business
Providing essential services to
support customers’ needs and
delivering a consistent 5-star
experience
Maximizing financial flexibility
and operating on a cash flow
positive basis in COVID-19
environment
Ensuring business
continuity to serve our
customers
Executing strategic
Monro.Forward initiatives
Streamlining costs and rapidly
adjusting plans to strengthen
operating performance
Emerging stronger post
COVID-19 crisis
3.5%
1.5%
-0.5%
-2.5%
-4.5%
-6.5%
-8.5%
-10.5%
4QFY19 1QFY20 2QFY20 3QFY20 4QFY20
Fourth Quarter Fiscal 2020 Highlights
Comparable store sales of -9.5% driven by a
substantial decrease in traffic since mid-Marchdue
to COVID-19 restrictions, as well as soft winter
weather conditions in January and February
Sales from new stores added $23.5M, including
sales from recent acquisitions of $21.9M
Maintenance: -8%
Tires: -9%
Front End/Shocks: -10%
Brakes: -11%
Alignments: -11%
Q4FY20
Key Highlights
Q4FY20
Key Highlights
16
Navigating Uncertain Environment and Challenges Related to COVID-19
Quarterly Comps Trends Monthly Comparable Store Sales
1
1Results are adjusted for days
2Through 5/26/20
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
Jan-20 Feb-20 Mar-20 Apr-20 May-20
MTD2
Results Impacted by COVID-19 Crisis and Soft Winter Weather Conditions
Fourth Quarter Fiscal 2020 Results
1Q4FY19 and FY19 same store sales results are adjusted for days.2Excluded costs in Q4FY20 include $.10 per share of impairment costs related to planned store closures, $.05 per share of additional store impairment costs, $.03 per share of costs related to Monro.Forward initiatives, $.01 per share of costs related to litigation settlements and $.01 per share of one-
time costs related to the Company’s headquarters expansion. Excluded costs in Q4FY19 include $.01 per share of costs related to Monro.Forward initiatives and $.01 per share of costs related to acquisition due diligence and integration. Excluded costs in FY20 include $.15 per share of store
impairment costs, $.09 per share of costs related to Monro.Forward initiatives, $.03 per share of costs related to acquisition due diligence and integration and $.02 per share of additional one-time costs related to litigation settlements and the Company’s headquarters expansion. Excluded costs in FY19
include $.06 per share in costs related to Monro.Forward initiatives, $.01 per share of non-recurring corporate and field management realignment costs and $.02 per share of costs related to acquisition due diligence and integration.3Adjusted Diluted EPS is a non-GAAP measure that excludes certain non-recurring items and items related to our Monro.Forward or acquisition initiatives. A reconciliation of net income to adjusted net income and diluted EPS to adjusted diluted EPS is included in our earnings release dated May 28,
2020. 17
Q4FY20 Q4FY19 Δ FY20 FY19 Δ
Sales (millions) $286.1 $287.2 (0.4%) $1,256.5 $1,200.2 4.7%
Same Store Sales1 -9.5% 0.5% (1,000 bps) -2.3% 2.3% (460 bps)
Gross Margin 35.7% 38.3% (260 bps) 37.9% 38.8% (90 bps)
Operating Margin 0.1% 9.9% (980 bps) 8.1% 10.6% (250 bps)
Diluted EPS ($.12) $.50 (124.0%) $1.71 $2.37 (27.8%)
Excluded Costs2 $.20 $.02 $.29 $.09
One-time income tax benefit - - - ($.06)
Adjusted Diluted EPS3 $.08 $.52 (84.6%) $2.00 $2.40 (16.7%)
Fourth Quarter Fiscal 2020 EPS Bridge
18
($0.30)
($0.12)
$0.08 ($0.10)
($0.10) ($0.12)
$0.50
-$0.20
$0.00
-$0.10
$0.10
$0.20
$0.40
$0.30
$0.50
$0.60
Q4 FY19 Diluted Impact of -9.5% Comp COVID-19 Business Q4 FY20 Adjusted Planned Store Other N/G Q4 FY20 DilutedEarnings Per Share - Sales Impact Diluted Earnings Per Closures Adjustments Earnings Per Share -
GAAP Share GAAP
1Other N/G Adjustments includes $.05 related to store impairment charges, $.03 of one-time costs related to the store rebrand and reimage initiative, $.01 in provisions for legal settlements and $.01 in one-time costs related to the HQ expansion.
1
Maximizing Financial Flexibility
We Have Taken Proactive Measures to Operate on a Cash Flow Positive Basis During COVID-19 Pandemic
Disciplined Capital Allocation
Fiscal 2020
Capex of $55.9M, of which $25M was related to
store rebrand and reimage
Spent approximately $104M on acquisitions
Paid $30M in dividends during FY20
Near-term Priorities
Deferring non-critical capex including store
rebrand and reimage initiative
Pausing M&A during this uncertain time
Paying dividend in June 2020
Additional Actions to Enhance Financial Flexibility
19
Drew down remaining $350M from revolving credit facility in March 2020
Reducing selling, general and administrative expenses with focus on flexing cost structure
Bolstering working capital position
Fiscal 2020 Accomplishments
Strong Progress on Building a Scalable Platform For Sustainable Growth
Store Rebrand and Refresh Initiative: Completed transformation of 219 stores to date, migrating 71 stores to a
tire-oriented brand, with rebranded stores in key markets outperforming store base
Investments in Technology: Launched pilot stages of network infrastructure upgrade, store staffing cloud-based
model and tire category management pricing tool, which are all progressing on track
Strategic Acquisitions: Completed acquisitions of 89 stores and one distribution center, expanding geographic
footprint into the attractive Western region and further solidifying position in the South
Expansion of Amazon.com Collaboration: Expanded collaboration to over 1,000 stores in 32 states in Q1 FY21
to support online tire retailer installation strategy and omnichannel efforts
Customer Experience: Executed customer satisfaction and online reputation management program across store
base to drive increased online reviews and star rating to all-time high of 4.6
1
2
3
4
5
20
Fiscal 2021 Outlook
While Environment Remains Uncertain, We Are Focused on Elements in Business Within Our Control
and Are Well-Positioned to Deliver Long-term Value Once the COVID-19 Crisis Subsides
Not issuing FY21 guidance at this time due to uncertainty surrounding COVID-19 pandemic
Expect COVID-19 to have a significant impact on Q1 FY21 results
Streamlining costs and making continued progress on Monro.Forward initiatives to emerge
stronger once pandemic subsides
Rollout of cloud-based store scheduling model and tire pricing tool by end of Q2 FY21 will be
critical to driving margin improvement
Cautiously optimistic for demand recovery following the suspension of stay-at-home orders
Well-positioned to capitalize on significant opportunities for M&A post COVID-19crisis21
Leading chain of Company-operated undercar care facilities in the U.S. with a wide breadth of
product and service offerings
Strong position in Northeast, Great Lakes and Mid-Atlantic and expanding into Southern and Western
markets with a presence in 32 states
19 years of consecutive annual sales growth
Low cost operator with strong operating margins
Well-positioned to capitalize on a favorable industry backdrop
Monro.Forward strategy creating a scalable platform to drive sustainable growth, with a focus on
operational excellence to increase overall customer lifetime value
Significant growth opportunity to execute disciplined acquisition strategy in a highly fragmented
industry
Strong balance sheet and cash flow
Delivering consistent shareholder returns through dividend program
Investment Highlights
22
Appendix
23
Fiscal 2021 Outlook – Financial Assumptions
24
Assumptions as of May 28, 2020
Tire and Oil Costs Stable to slight decrease year-over-year
Interest Expense ~$30 million to ~$32 million
Depreciation and Amortization ~$72 million to ~$78 million
Tax Rate ~24%
Capital Expenditures ~$25 million to ~$45 million
Weighted Average Number of Diluted
Shares Outstanding~34 million
Planned Store Closure Costs in Q1 FY21 ~$2.5 million
Store Closure Operating Income Benefit ~$3.8 million
Fixed Cost Reductions ~$10 million to ~$15 million
7 Stage Transformation Process from Beginning to End Takes ~17 Weeks
251Steps are only required for stores that are being rebranded from service format to tire format
BEFORE AFTER
Store Readiness
for Change
Parts Inventory
Rebalanced1
Inventory Assortment
Reset for Tire Focus1
Store Team Trained
on New Operating
Procedures
Store Inventory Storage
Configured for Tires1
Store Exterior Painted
and New Signage
Installed
Store InteriorRemodel
and Technology
Installed
~17 WEEKS
Store Refresh Transformation Timeline
Q4 FY20 FY21
Monro.Forward Strategic Initiatives
Data-driven “new customer”marketing
Store staffing & scheduling system
Improve CustomerExperience
Enhance Customer-Centric Engagement
Optimize Product & Service Offering
Accelerate Productivity & Team Engagement
Scheduled maintenance in-store selling
Data-driven CRM
New websites
Q2 FY20 Q3 FY20
Scale store refresh & operational excellence
= Completed Initiatives26
Pilot store refresh & operational excellence
Monro University (includes career path, LMS)
Foundational Technology& Tools
Store network infrastructure upgrade
Digital phone and customer communication system
Optimize tire assortment
Cloud based car inspection tool
Tire category management& pricing system
FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY20 Q2FY21
New store comp plans
New in-store sales packages