Monro, Inc.Investor
Presentation
May 2019
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 suchas “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 basedon Monro’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. Additional information regarding these risks and uncertainties are described in the Company’s filingswith the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysisof Financial Condition and Results of Operations” sections of our most recently filed periodic reports on Forms 10-K andForm 10-Q, which are available on Monro’s website at https://corporate.monro.com/investors/financial-information/. Monroassumes no obligation to update or revise these forward-looking statements for any reason, even if new informationbecomes available in the future.
This presentation contains references to Adjusted Earnings Per Share (EPS), which is a “non-GAAP financial measure” asthis term is defined in Item 10(e) of Regulation S-K under the Securities Act of 1933 and the Securities Exchange Act of1934 and Regulation G under the Securities Exchange Act of 1934. In accordance with these rules, Monro has reconciledthis non-GAAP financial measure to its most directly comparable U.S. GAAP measure. Management views this non-GAAPfinancial measure as a way to assess comparability between periods.
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.
Safe Harbor Statement and Non-GAAP Measures
2
Company Overview
▪ Dominant in the Northeastern U.S. and expanding in Southern and
Western markets
▪ Fiscal 2019 sales of $1,200.2 million
▪ 1,249 company operated stores in 30 states and 98 franchised
locations as of May 21, 2019
▪ 33 acquisitions in the past 7 fiscal years, adding 429 locations, $630
million in revenue and entry into 9 new states
▪ Operating two store formats in key markets
−Service stores – 559 stores
• 80% maintenance services, 20% tires
• $600,000 a year in sales per store
−Tire stores - 690 stores (excluding wholesale)
• 55% tires, 45% service
• $1.2 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
3
Store locations as of 5/21/19
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:
The following types of parts are sourced
from various cities in China:
▪ Brake Rotors and Pads
▪ Filters
▪ Steering and Suspension
▪ Wipers
▪ Belts
Store locations as of 5/21/194
TIRES
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 Source: Lang, IHS Markit, 2018. 2018 – 2022 are estimated figures
U.S. Light Vehicles in Operation (VIO)
200
210
220
230
240
250
260
270
280
290
300
2012 2013 2014 2015 2016 2017 2018* 2019* 2020* 2021* 2022*
▪ Growing total vehicle population from U.S. auto sales
▪ 270+ million vehicles on the road
▪ Increasing age of vehicles (average of ~12 years)
▪ 2018 total annual miles driven up ~0.4% y/y
▪ Decreasing number of service outlets and bays
▪ Increasing complexity of vehicles
▪ Favorable demographics
Key Highlights
5Source: FRED Economic data, Moving 12-Month Total Vehicle Miles Traveled
2,600,000
2,700,000
2,800,000
2,900,000
3,000,000
3,100,000
3,200,000
3,300,000
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
0
2
4
6
8
10
12
14
16
18
20
03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18
A Favorable Industry Backdrop
Vehicles in Operation – 0 to 5 Years Vehicles in Operation – 6 to 12 Years
Monro is Well-Positioned to Capitalize on Positive Industry Trends,
with Our Sweet Spot Experiencing the Fastest Growth in Vehicles in Operation
50
60
70
80
90
100
110
120
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 6-12 year
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 year cohort
50
60
70
80
90
100
110
120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
-3.97% CAGR +3.90% CAGR
Vehicles in Operation – 13+ Years
50
60
70
80
90
100
110
120
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
+4.27% CAGR +1.47% CAGR
Source for all data: Lang, IHS Markit, 2018
Key Highlights
6
A Favorable Industry Backdrop
Monro Operates in the $230 Billion Do-It-For-Me* Segment of $287 Billion U.S. Automotive Aftermarket Industry
Automotive Aftermarket DIFM vs. DIY Sales
0
50,000
100,000
150,000
200,000
250,000
300,000
2012 2013 2014 2015 2016 2017
DIFM DIY
Source: Autocare Association Factbook
2008 % (outlets) 2016 % (outlets) CAGR
Dealers 20,770 15.6% 16,680 12.7% (2.7%)
General Repair
Garages76,564 57.4% 80,071 61.1% 0.6%
Tire Dealers 18,596 14.0% 19,822 15.1% 0.8%
Specialty Repair 9,674 7.3% 7,040 5.4% (3.9%)
Oil Change/Lube 7,649 5.7% 7,437 5.7% (0.4%)
Total 133,253 100% 131,050 100%
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
▪ Fewer outlets/bays to work on more vehicles in
operation in the U.S.
▪ Industry still highly fragmented, with significant
opportunities for further consolidation
Key Highlights
* Includes Replacement Tire Segment 7
Fourth Quarter Fiscal 2019 Highlights
▪ Comparable store sales increased by 0.5% when
adjusted for less selling days in the quarter
▪ Sales from new stores added $17.7M, including
sales from recent acquisitions of $14.0M
Achieved Fifth Consecutive Quarter of Positive Comparable Store Sales Growth1
▪ Brakes: 8%
▪ Alignments: 1%
▪ Maintenance: Flat
▪ Tires: -1%
▪ Front End/Shocks: -2%
4QFY19
Key Highlights1
4QFY19
Key Highlights
81Results are adjusted for days
Quarterly Comps Trends
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4QFY18 1QFY19 2QFY19 3QFY19 4QFY191 11
2-Year Stacked Quarterly Comps Trends
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
4QFY18 1QFY19 2QFY19 3QFY19 4QFY191 11
A Scalable Platform: Recent Acquisitions
Acquisitions Completed and Announced in Fiscal 2019 Represent $132M in Annualized Sales
1Greenfield stores include new construction as well as the acquisition of one to four store operations
Completed Acquisitions
▪ Completed the acquisition of 40 retail locations and one distribution center in California in 1QFY20
▪ Enters a new state, expanding the Company’s geographic footprint to the West Coast
▪ Building out platform for growth in the region with increased support and capabilities
▪ $45M in annualized sales, breakeven to EPS in FY20
▪ Sales mix of 70% service and 30% tires
▪ Completed the acquisition of 12 retail locations in Louisiana, early in 1QFY20
▪ Enters a new state, expanding the Company’s presence in the southern markets
▪ $15M in annualized sales, breakeven to EPS in FY20
▪ Sales mix of 35% service and 65% tires
Greenfield Openings1
▪ Added three greenfield locations during the fourth quarter
9
Driving Long-Term Sustainable Growth
Enhance Customer-Centric
Engagement• Customer retention
• Customer acquisition
• Omnichannel
Accelerate Productivity
& Team Engagement• Optimized store staffing model
• 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 SustainableGrowth
Investments in Technology and Data-Driven Analytics to Support Strategic Initiatives
Optimize Product &
Service Offering• Redefined selling approach
• Optimized tire assortment
10
Improve Customer Experience
❑ Improve SEO and local listing management
❑ Effectively build and manage online presenceOnline Reputation
Management
❑ Deliver a best-in-class experience to all customers
❑ Provide clear product choices and quality service to
customers
Consistent In-Store
Experience
❑ Modernize store layout
❑ Establish clear standards for retail bannersConsistent Store
Appearance
Delivering a
Five-Star
Experience
11
3.7
4.0
4.24.3
4.44.5 4.5
4.1
4.5
4.7 4.7 4.7
4.8
4.7
3.0
3.5
4.0
4.5
5.0
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 FY19
Negative Neutral Positive End of Quarter All Time Rating Quarterly Rating
Monro.Forward Progress Update
Monro.Forward Initiatives Well Underway and Advancing as Planned
12
❑ Continuing to execute 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 4.7 in fiscal 2019 and 4.5 All-time
Improve Customer
Experience
Nu
mb
er
of
Re
vie
ws
Monro.Forward Progress Update
❑ Rochester pilot refresh stores seeing increased customer satisfaction ratings
❑ Expanding store refresh to approximately 50 stores during 1QFY20
❑ Modernized store layout on track to be rolled out across the Company’s remaining
markets and store formats over the next 3 to 5 years
Improve Customer
Experience
Monro.Forward Initiatives Well Underway and Advancing as Planned
13
Store Refresh: Brand Consolidation Strategy
Consolidating Brand Portfolio Into Five Regional Power Brands to Increase Brand Awareness in Each Market
14
Brand Consolidation Strategy
▪ Through acquisitions, Monro has grown to include nine well-
known retail brands underneath our corporate umbrella
▪ Leveraging customer data-driven analytics to support
consolidation into five regional banners with strong market
awareness
▪ Opportunistically shifting to a tire-oriented banner in targeted
markets with strong upside opportunity
Retail Brand Portfolio
Service Tire
❑ Focus marketing spend to higher ROI channels
❑ Focus on direct marketing via new analytic-based
CRM platform
❑ Enhance private label credit card offering
❑ Use analytics to optimize digital efforts
❑ Leverage market segmentation and demographic
information to facilitate direct marketing to target
customers
❑ Upgraded website with mobile-capable architecture
❑ Launch e-commerce capability for online tire
purchases and installations in-store
❑ Leverage preferred tire installer agreements to
drive traffic
Enhance Customer-Centric Engagement
Customer Retention
Customer Acquisition
Omnichannel
15
Monro.Forward Progress Update
❑ Expanded collaboration with Amazon.com to more than 800 stores, supporting
omnichannel strategy
❑ CRM and digital customer retention initiatives making solid progress
❑ Data-driven “new customer” marketing initiatives launched in 4QFY19
Enhance Customer-
Centric Engagement
Monro.Forward Initiatives Well Underway and Advancing as Planned
16
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
▪ Initially launched in the greater Baltimore area, now available at more
than 800 locations operating under a number of Monro brands in 21
states across the United States
▪ Collaboration will be expanded to provide tire installation services to
Amazon.com customers at all of Monro’s retail locations across 30 states
▪ Increased traffic driven by integration with online tire retailers
❑ Improve tire sales strategy to offer the right tires at
the right price
❑ Leverage data to optimize inventory assortment
❑ Simplified invoices and inspection forms
❑ Clearly defined ‘Good, Better, Best’ product options
❑ Educate customers on new tire installation, brake
and oil change service options
Optimize Product & Service Offering
Optimized Tire Assortment
Redefined Selling
Approach
FuturePresentPast
17
Accelerate Productivity & Team Engagement
❑ Aligned store compensation model with
performance
❑ Incentives grow as sales, profits and customer
experience improve
Aligned Compensation
❑ Achieve the right balance of labor and technical
abilities across our stores
❑ Implement data-driven store scheduling software
Optimized Store
Staffing Model
❑ Attract, train and retain talented technicians and
managers
❑ Launched Monro University, a comprehensive
learning management system, to pilot stores in
January 2019
Clearly Defined Career Path
and Enhanced
Training Program
18
Monro.Forward Progress Update
❑ Continued momentum of Good-Better-Best product and service packages
❑ Introduction of new Tier 2 tire brands to optimize tire assortment in 4QFY19
❑ Will continue to refine category management and visual merchandising as part of the
store refresh initiative rollout during FY20
Optimize Product &
Service Offering
❑ Recently launched Monro University training courses, on track to roll out to all
locations over the course of the calendar year
❑ Optimized store staffing model after rightsizing overstaffed and understaffed stores
❑ Data-driven store scheduling and staffing software to be implemented during FY20
Accelerate Productivity
& Team Engagement
Monro.Forward Initiatives Well Underway and Advancing as Planned
19
Scalable Platform to Drive Sustainable Growth
▪ Continue to increase store density in our 30 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
▪ ~20 to 40 stores per year
A Scalable Business Model with Multiple Avenues for Growth
20
A Proven M&A Strategy
Monro’s Acquisition Strategy Has Delivered Significant Growth Over the Years
Historical Acquisition Activity
Average
Acquisition
Size
FY13 FY14 FY15 FY16 FY17 FY18 FY19
Number of
locations139 stores 20 stores 80 stores
35 stores and
134 franchise
locations
78 stores,
4 wholesale
locations and 2
retread
facilities
28 stores
38 stores, 4
wholesale
locations and 1
retread facility
15 Stores
Annualized
Sales growth~$190 million ~$35 million ~$90 million ~$35 million ~$150 million $20 million $70 million ~$20 million
A Proven Track Record
▪ 49 acquisitions in the last 17 fiscal years, encompassing 724 locations and $970 million of revenue
▪ 33 acquisitions in the past 7 fiscal years, adding 429 locations and $630 million in revenue
▪ Entered 9 new states, expanding our presence in the Southern and Western markets
21
Solid Fourth Quarter Performance and FY19 Results In-Line with Company Expectations
Fourth Quarter and Fiscal 2019 Results
4QFY19 4QFY18 Δ FY19 FY18 Δ
Sales (millions) $287.2 $285.6 0.6% $1,200.2 $1,127.8 6.4%
Same Store Sales1 0.5% 2.4% (190 bps) 2.3% (0.1%) 240 bps
Gross Margin 38.3% 37.7% 60 bps 38.8% 38.6% 20 bps
Operating Margin 9.9% 10.7% (80 bps) 10.6% 11.3% (70 bps)
GAAP EPS $.50 $.52 (3.8%) $2.37 $1.92 23.4%
One-time Costs2 $.01 $.02 $.07 $.10
One-time Tax (Benefit) / Expense ($.04) ($.06) $.06
One-time Extra Selling Week
Benefit($.10) ($.10)
Adjusted EPS $.51 $.40 27.5% $2.38 $1.98 20.2%
1Adjusted for days2Diluted earnings per share included $.01 per share of one-time costs related to increased acquisition activity in 4QFY19 compared to 4QFY18. This compares to $.02 per share in management transition costs in 4QFY18. In fiscal 2019, there were $.05 per share in one-time costs related
to Monro-Forward investments, $.01 per share in one-time costs related to the increased acquisition activity in 4QFY19 compared to 4QFY18, and $.01 per share in corporate and field management realignment costs, compared to $.04 per share in litigation settlement costs and $.06 per
share in management transition costs in fiscal 201822
Fiscal 2020 Outlook
FY20 FY19 Δ
Sales (millions) $1,295 to $1,325 $1,200 8% to 10%
Same Store Sales +2% to +4% 2.3%-30 bps to
170 bps
GAAP EPS $2.55 to $2.75 $2.37 8% to 16%
Delivering Growth Today While Continuing to Invest for Tomorrow
Operating Margin
▪ Assumes operating margin of ~11.3% at midpoint of FY20 sales
guidance
▪ Expect stable tire and oil costs year-over-year
▪ Expect to generate earnings increase on a comparable store sales
increase above ~1%
Additional Guidance Assumptions (at the midpoint)
▪ Interest expense of ~$32 million
▪ Depreciation and amortization of ~$67 million
▪ EBITDA of ~$215 million
▪ Tax rate of ~23.5%
▪ Capital expenditures of ~$65 million
▪ 33.9 million weighted average number of diluted shares outstanding
Stores
▪ Guidance includes recently completed acquisitions in
California and Louisiana and excludes any additional potential
acquisitions
▪ Guidance includes six ground-up greenfield store openings in
FY20
23
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
FY19 FY21E
4.0% +
2.3%
10.0%
10.5%
11.0%
11.5%
12.0%
12.5%
13.0%
FY19 FY21E
12.0%+
10.6%
SSS Improvement
Operating Margin
Expansion
Longer-Term Organic Growth Financial Targets
Accelerating Same Store Sales Growth Drives Operating Leverage and Double Digit Earnings Growth
❑ Accelerate from 2% to above 4%Same Store Sales Growth
❑ Return to 12%+ Operating MarginOperating Margin
Expansion
❑ Deliver Consistent 10% - 15% Earnings
GrowthEarnings Per Share Growth
Note: Financial targets exclude any future potential acquisitions
1Adjusted for days 24
1
Disciplined Capital Allocation
Executing on Growth Strategy While Maintaining a Disciplined Approach to Capital Allocation
Investing in the Business
▪ Capex of $44.5M during fiscal 2019
▪ Continue to expect ~$75M of incremental Capex over 5 years to invest in store re-image and technology
Returning Cash to Shareholders
▪ Paid $26.8M in dividends in fiscal 2019
▪ Currently $.22 per share quarterly, an increase of 10% from fiscal 2019
Executing on M&A Opportunities
▪ Spent $62.4M on acquisitions during fiscal 2019
▪ Acquisitions completed and announced in fiscal 2019 represent $132M in annualized sales, or 11% annualized sales
growth
Utilizing Strong Balance Sheet
▪ Generated $152.9M of operating cash flow in fiscal 2019
▪ Debt-to-EBITDA ratio as of March 2019 of 2.15x provides significant flexibility to fund M&A strategy
▪ Extended revolving credit facility25
Investment Highlights
▪ 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 Western markets with a presence in 30 states
▪ 18 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 with fourteen dividend increases, every year since a cash dividend was initiated
26
Appendix
27
Q2 FY19 Q3 FY19 Q4 FY19 Q2 FY20 Q3 FY20 Q4 FY20Q4 FY18 FY20FY19 FY21
Monro.Forward Strategic Initiatives
New store comp plans
Technology based in-store experience
Data-driven “new customer” marketing
Monro omnichannel & e-commerce
Store staffing & scheduling system
Improve Customer Experience
Enhance Customer-Centric Engagement
Optimize Product & Service Offering
Accelerate Productivity & Team Engagement
Foundational technology & tools
New in-store sales packages
Scheduled maintenance in-store selling
Data-driven CRM
New websites
Tire category management
Scale store refresh & operational excellence
= Completed Initiatives
28
Pilot store refresh & operational excellence
Monro University pilot (includes career path, LMS)