Compass Diversified Holdings, Inc. (NYSE:CODI) Q4 2020 Earnings Conference Call February 24, 2021 5:00 PM ET Company Participants Matt Berkowitz - Senior Account Executive, The IGB Group Elias Sabo - CEO Pat Maciariello - COO, Compass Group Management Ryan Faulkingham - CFO Conference Call Participants Larry Solow - CJS Securities Kyle Joseph - Jefferies Cris Kennedy - William Blair Gus Gala - ROTH Capital Partner Matt Tjaden - Raymond James Operator Good afternoon and welcome to Compass Diversified’s Fourt ...

| --- | --- | --- | |---------------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CODI Investor | | | | Presentation | | | | | | | | | | | | | | | This presentation contains certain forward-looking statements within the meaning of the federal securities laws. These statements may be made a part of this presentation or by reference to other documents we file with the SEC. Some of the forward-looking statements can be identified by the use ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-34927 Compass Diversified Holdings (Exact name of registrant as specified in its charter) Delaware 57-6218917 (State or other jurisdiction of i ...

Company Overview - Compass Diversified (CODI) manages \$2.5 billion in assets across 10 current platforms, with approximately \$500 million in dry powder pro forma for the BOA deal[12] - CODI has completed aggregate transactions of \$6.4 billion, including 21 platforms and 27 add-ons, and realized gains of over \$1.1 billion since its IPO, with 11 divestitures to date[11] - As of September 30, 2020, CODI's portfolio consisted of 6 branded consumer and 4 niche industrial subsidiaries[12] Financial Performance and Strategy - CODI's TTM revenues and subsidiary pro forma adjusted EBITDA as of September 30, 2020, were \$1.6 billion and \$284 million, respectively[23, 30] - The company's branded consumer EBITDA concentration increased to over half the portfolio on a pro forma basis, with branded consumer EBITDA growing year-over-year despite COVID[15] - CODI's capital allocation strategy involved divesting Clean Earth (EBITDA of \$42 million) and Manitoba Harvest (EBITDA of \$5 million) for total proceeds of \$711 million, and acquiring BOA (estimated FY 2019 EBITDA of \$30 million) and Marucci (estimated FY 2019 EBITDA of \$14 million) for a total investment of \$590 million[16] - Pro forma for the BOA acquisition, the leverage ratio is approximately 3.20:1.00[33] Subsidiary Performance - For the nine months ended September 30, 2020, niche industrial net revenues were \$491.34 million, a decrease of 9.1% compared to \$540.574 million in 2019, while branded consumer net revenues were \$617.139 million, an increase of 7.8% compared to \$572.667 million in 2019[40] - For the nine months ended September 30, 2020, niche industrial adjusted EBITDA was \$85.715 million, a decrease of 16.1% compared to \$102.209 million in 2019, while branded consumer adjusted EBITDA was \$97.624 million, an increase of 17.7% compared to \$82.926 million in 2019[41] - BOA Technology was acquired for \$454 million on October 16, 2020[32, 64]

Financial Data and Key Metrics Changes - Consolidated subsidiary pro forma revenue for Q3 2020 increased by 3.9% to $419 million, while consolidated pro forma adjusted EBITDA increased by 10% to $77 million [17][41] - Cash flow available for distribution (CAD) for Q3 2020 was $43.5 million, a growth of 44% compared to $30.2 million in Q3 2019 [18][42] - Year-to-date CAD of $74.7 million exceeded the prior year-to-date of $74 million, covering distribution payments to common shareholders of $68.3 million [19] Business Line Data and Key Metrics Changes - Branded consumer businesses saw pro forma revenues and adjusted EBITDA increase by 15.2% and 42.3% respectively in Q3 2020 compared to the same quarter in 2019 [31] - Niche industrial businesses experienced a revenue decline of 8.1% and EBITDA decrease of 18.3% in Q3 2020 compared to the prior year [26] - Liberty Safe's EBITDA increased by 96% in Q3 2020 compared to the previous year, driven by strong demand [33] Market Data and Key Metrics Changes - BOA Technology, acquired in October 2020, produced revenue and EBITDA growth of 20% and 67% respectively during Q3 2020 [17] - Certain companies within the portfolio, such as Arnold Magnetic, faced challenges with EBITDA declining from $4.4 million to $1.3 million due to demand decreases in aerospace and oil and gas markets [27] Company Strategy and Development Direction - The company is focused on a more aggressive acquisition strategy amid the pandemic, having closed two platform acquisitions in 2020 [9][52] - Continued investment in digital transformation is a priority, as increased consumer demand for online retail is expected to persist beyond the pandemic [15][54] - The company aims to enhance competitive positioning through strategic investments and acquisitions, while also focusing on ESG initiatives [54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery trends, particularly in outdoor categories, despite challenges in certain sectors like hospitality [56] - The outlook remains uncertain due to the pandemic, with management noting the importance of flexibility in operations and capital allocation [20][76] - Management highlighted the strong performance of subsidiaries and the ability to manage supply chain challenges effectively [69] Other Important Information - The company anticipates a CAD payout ratio for the year of 100% to 90%, a significant improvement from previous guidance [22] - The company has over $175 million in cash and approximately $600 million available on a revolver, maintaining a strong balance sheet [45] Q&A Session Summary Question: General outlook on recovery trends - Management feels similar to the end of Q2, with businesses running well and outdoor categories benefiting significantly, though challenges remain in certain industrial sectors [56] Question: Performance of 5.11 - The growth in EBITDA for 5.11 was driven by increased margins and effective cost control during COVID, despite flat sales [58][59] Question: Future acquisition appetite - The company remains open to both platform and add-on acquisitions, with a focus on finding compelling opportunities in a fluid market [72][75] Question: Drivers of Marucci's strength - The successful launch of the CAT9 line significantly contributed to Marucci's performance, although seasonality remains uncertain due to COVID [80][82] Question: BOA onboarding and performance - The onboarding process has been positive, with BOA showing strong growth in revenue and EBITDA, driven by favorable market conditions [85][86]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMPASS DIVERSIFIED HOLDINGS (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) | --- ...

Financial Data and Key Metrics Changes - For Q2 2020, consolidated subsidiary adjusted EBITDA was $54 million, slightly down from $55.2 million in Q2 2019, but significantly above the guidance range of $28 million to $38 million [10][11] - Consolidated pro forma revenue for Q2 2020, including Marucci, declined by 4.5% to $334 million, while consolidated pro forma adjusted EBITDA decreased by 8% to $52 million [18] - Consolidated revenue for Q2 2020 was $333.6 million, down less than 1% from $336.1 million in the prior year period [55] Business Line Data and Key Metrics Changes - Niche industrial businesses saw revenues decline by 12.4% and EBITDA decrease by 19.1% year-over-year in Q2 2020 [31] - Branded consumer businesses, particularly Velocity Outdoor and Liberty Safe, experienced strong sales growth, with Liberty Safe's EBITDA up 80% year-over-year [41] - Marucci's revenue in Q2 2020 declined by 60%, with EBITDA dropping from approximately $1 million in 2019 to negative $200,000 in 2020 [42] Market Data and Key Metrics Changes - Demand for outdoor-related products surged, benefiting certain subsidiaries while others faced significant declines due to the pandemic [19] - Velocity Outdoor's EBITDA increased by 104% in Q2 2020, driven by heightened demand for outdoor activities [45] - The Sterno Group's EBITDA was down 29% in Q2 2020, but the consumer business saw record demand for wax and essential oil products [35] Company Strategy and Development Direction - The company plans to pursue a more aggressive acquisition strategy in 2020, leveraging its strong balance sheet to capitalize on growth opportunities [15][70] - The focus remains on selectively partnering with management teams that can benefit from the company's operational expertise and capital base [16] - The company is committed to enhancing its ESG initiatives and integrating these considerations into its investment process [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges posed by the COVID-19 pandemic but expressed optimism about the company's long-term positioning and growth potential [7][11] - The company anticipates a full-year consolidated EBITDA of between $210 million and $240 million, despite the uncertainty stemming from the pandemic [25] - Management highlighted the importance of maintaining distribution levels and the expectation of cash taxes reversing in the second half of 2020 [20][60] Other Important Information - The company raised approximately $290 million in additional capital during the quarter, enhancing its financial flexibility [13] - Cash flow available for distribution and reinvestment (CAD) during Q2 2020 was $13.5 million, exceeding expectations [20] - The company has a strong balance sheet with over $200 million in cash and approximately $600 million available on its revolver as of June 30, 2020 [60] Q&A Session Summary Question: Velocity Outdoor's mid-term outlook - Management expressed confidence in Velocity Outdoor's performance, noting no signs of slowing demand in July and August, with Q3 being a significant quarter for outdoor activities [74] Question: Sterno's year-over-year growth - Management acknowledged material growth in Sterno's consumer business, particularly in hand sanitizer sales, despite a near-complete halt in catering-related demand [75][77] Question: 5.11's business breakdown - The professional side of 5.11 accounted for slightly over 50% of the business in 2019, but the consumer side has grown significantly, now surpassing the professional side [78] Question: M&A environment and strategy - Management indicated a shift to a more aggressive M&A posture, focusing on both add-on and platform acquisitions, with a bias towards add-ons in the near term [92][96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMPASS DIVERSIFIED HOLDINGS (Exact name of registrant as specified in its charter) | --- | --- | |----------------------------|-------| | | | | | | | | | | | | | 001- ...

Compass Diversified Holdings LLC (NYSE:CODI) Q1 2020 Earnings Conference Call April 30, 2020 5:00 PM ET Company Participants Matthew Berkowitz - IR Elias Sabo - CEO & Director Pat Maciariello - COO Ryan Faulkingham - EVP, CFO & Co-Compliance Officer Conference Call Participants Kyle Joseph - Jefferies Lawrence Solow - CJS Securities Robert Todd - Raymond James Operator Good afternoon, and welcome to the Compass Diversified Holdings' First Quarter 2020 Conference Call. Today's call is being recorded. [Operat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to COMPASS DIVERSIFIED HOLDINGS (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. employer id ...