Brian Wells Hibbett Pitch

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Brian Wells

July 10, 2014

HIBBETT SPORTS(NASDAQ: HIBB)

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HIBBETT SPORTS

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Valuation

Free Cash Flow

Returns on Capital Growth

Share Buy Back

THE VIRTOUS CIRCLE

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• 19% below 52 week high• Fair Value $54 - $61

2006 2007 2008 2009 2010 2011 2012 2013 2014

28.0

23.6

18.4

17.9 20

.9

21.6 24

.0

20.8

19.5

17.7

13.9

10.7

10.6 11

.9

12.1 13

.9

12 11.9

P/E EV/EBIT

WHAT IS THE COMPANY WORTH?

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2010 2011 2012 2013 2014$0

$10

$20

$30

$40

$50

$60

$70

$27

$51

$42

$65

$2

In Millions of Dollars

Cap Ex

2010 – $9.6M

2011 – $10.5M

2012 – $13M

2013 – $22M

2014 – $50.5M

FREE CASH FLOW

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RETURNS ON CAPITAL

2010 2011 2012 2013 20145%

10%

15%

20%

25%

30%

35%ROIC

HIBB DKS BGFV

2010 2011 2012 2013 20145%

10%

15%

20%

25%

30%

35%ROE

HIBB DKS BGFV

2005 2006 2007 2008 2009 2010 2011 2012 2013 201425%

27%

29%

31%

33%

35%

37%

Gross Margin

HIBB DKS BGFV

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SMALL MARKET FOCUS939 Stores in 31 States

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COMPETETIVE OVERLAP

1 mile 3 miles 5 miles 10 miles0%

5%

10%

15%

20%

25%

Overlap with competitors by mile radiusSource: Hibbett Roadshow Presentation

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• FY 2013 – 900K shares at $49.9M– Avg Cost Basis $55/share

• FY 2014 – 400K shares at $20.1M– Avg Cost Basis $50/share

• All time – 12.4M shares at $343.4M– Avg Cost Basis $28/share

• FY 2015 – Planned 4%

SHARE REPURCHSES

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• Separate Chairman and CEO– Chairman started in 1965 as retail clerk

• Comparable pay to competitors• Glassdoor rating 3.2, CEO 66% approval• IT focus to improve efficiency• Return capital to shareholders• Conservative with debt

MANAGEMENT

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Wonderful Company

+ Fair Price

+ Long-Term Thinking

= Outsized Returns

– Andy Cross

SOLVING FOR X

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• Store Model Prototype• Financial Highlights 1• Financial Highlights 2

Appendix

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HIBBETT STORE MODEL

AppendixSource: Hibbett Roadshow Presentation

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FINANCIAL HIGHLIGHTS 1

AppendixSource: Hibbett Roadshow Presentation

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FINANCIAL HIGHLIGHTS 2

AppendixSource: Hibbett Roadshow Presentation