#1COMPASS LDIVERSIFIED CODI Investor Presentation OCTOBER 2021#2Legal Disclaimer Г 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 of forward-looking words. Statements that are not historical in nature, including the words "anticipate,” “may,” “estimate,” “should,” “seek,” “expect,” “plan,” “believe,” “intend,” and similar words, or the negatives of those words, are intended to identify forward-looking statements. Certain statements regarding the following particularly are forward-looking in nature: future financial performance, market forecasts or projections, projected capital expenditures; and our business strategy. All forward-looking statements are based on our management's beliefs, assumptions and expectations of our future economic performance, taking into account the information currently available to it. These statements are not statements of historical fact. Forward-looking statements are subject to a number of factors, risks and uncertainties, some of which are not currently known to us, that may cause our actual results, performance or financial condition to be materially different from the expectations of future results, performance or financial position. Our actual results may differ materially from the results discussed in forward-looking statements. Factors that might cause such a difference include but are not limited to the risks set forth in "Risk Factors" included in our SEC filings. In addition, our discussion may include references to Adjusted EBITDA, EBITDA, cash flow, CAD or other non-GAAP measures. A reconciliation of the most directly comparable GAAP financial measures to such non-GAAP financial measures is included in our annual and quarterly reports in Forms 10-K and 10-Q filed with the SEC as well as the attached Appendix. 2 COMPASS DIVERSIFIED#33 Business Overview 111 CO DI#4Experienced Leadership Team ELIAS SABO Founding Partner & CEO Responsible for directing CODI'S strategy Investment Committee Member Joined The Compass Group in 1998 as one of its founding partners Graduate of Rensselaer Polytechnic Institute RYAN FAULKINGHAM EVP & CFO Responsible for capital raising, accounting and reporting, financial controls, as well as risk assessment Investment Committee Member Joined The Compass Group in 2008 Graduate of Lehigh University and Fordham University r PATRICK MACIARIELLO Chief Operating Officer West Coast Managing Partner Joined The Compass Group in 2005 Graduate of University of Notre Dame and Columbia Business School 4 40 [U] CODI has been executing the same strategy for more than 23 years and has consistently generated superior results COMPANY MANAGEMENT TEAM AC Private equity-like compensation structure aligns interest of shareholders and management team and allows for recruitment of top-level talent AI 15+ year history as a public company manager, patient deployer of capital, willing to net divest Highly accountable organization focused on consistently exceeding our weighted average cost of capital on all invested capital COMPASS DIVERSIFIED#5CODI BY THE NUMBERS As of 9/30/2021 Compass Diversified Holdings (NYSE: CODI) Offers Shareholders a Unique Opportunity To Own a Diverse Group of Leading Middle-Market Businesses Provides access to a strategy typically reserved for private equity investors without the barriers to entry Founded in 1998, CODI is an experienced acquirer, manager and opportunistic divestor of established North American middle-market businesses; currently the portfolio is made up of 6 branded consumer and 4 niche industrial subsidiaries 1998 $6.9B+ $1.1B+ FOUNDED IPO in 2006 AGGREGATE TRANSACTIONS 22 Platforms & 30 Add-Ons REALIZED GAINS SINCE IPO 12 Divestitures To Date Long-term, Opportunistic Approach through Permanent Capital Base KEY DIFFERENTIATORS 00$ Value Creation Through Sector Expertise 5 LO $2.8B ~$465M Superior Governance and Transparency ASSETS MANAGED 10 Current Platforms Available Revolver Permanent Capital Base COMPASS DIVERSIFIED#6Benefits of Owning CODI iii лу Г CONSISTENT OUTPERFORMANCE OF BENCHMARKS CODI total return of 684% since IPO versus total return of 294% for the Russell 2000 ACCESS TO AN ATTRACTIVE SEGMENT OF THE MARKET HISTORICALLY RESERVED FOR PRIVATE EQUITY MANAGERS . Experienced manager with aligned compensation model SUPERIOR GOVERNANCE MODEL • Majority of Board of Directors independent with Chairman and CEO roles separated; Independent Lead Director Transparency into each of the operating subsidiaries SOX compliance with 404 pushed down to each operating subsidiary LIQUIDITY VIA TRADEABLE SHARES 6 COMPASS DIVERSIFIED#7CODI's Permanent Capital Model Has Outperformed for Investors Compared to both publicly-traded peers and market indices, CODI has consistently generated superior returns through its culture of transparency, alignment and accountability TOTAL RETURN FROM MAY 16, 2006 THROUGH OCTOBER 26, 2021 (1) Г LOWER DEBT WACC ENABLES SUSTAINABLE INVESTING, BUILDING A COMPETITIVE (2) ADVANTAGE AND DRIVING LONG-TERM SHAREHOLDER VALUE 684.3% 352.3% 293.6% $13.40 112.1% $28.55 $25.50 $23.15 $19.06 $19.45 $17.24 CODI S&P 500 Russell 2000 XLF 7.89% 7.89% 7.89% 6.37% 5.80% 5.82% 5.44% 1Q'20 2Q'20 3Q'20 4Q'20 10'21 2Q'21 3Q'21 WACC CODI Stock Price $1.00 invested at IPO is worth $7.84 today vs. $4.52 in the S&P 500 or $3.94 in the Russell 2000 (1) Total Return assumes reinvestment of distributions. 7 (2) Stock prices represent CODI's closing stock price on last trading day of quarter. DEBT WACC calculated using o/s debt and preferred. COMPASS DIVERSIFIED#8Investment Thesis 00 8 Liberty Safes Presidential CO DI#9Why CODI? CODI's core principles - which have differentiated our business for nearly 16 years - have never been more relevant or produced stronger results for shareholders • • 01 Permanent Capital Is Strategic Capital Opportunistic in capital deployment Enables long-term approach "Eliminates" traditional PE investment horizon pressure Benefits to Owning a Family 02 03 of Uncorrelated Subsidiaries • • Defensive positioning • • Г Lower cost of capital versus financing each company separately Professionalization at scale Diversity of subsidiaries provides consistency in earnings and cash flow Clear Alignment with Investors Compensation structure aligns interest of shareholders and management team and allows for recruitment of top-level talent Transparency / regular reporting History of waiving management fees when appropriate Significant and growing ownership of CODI shares by Manager partners and employees By offering access to a diverse portfolio of middle market businesses, CODI's strategy offers a differentiated liquid alternative COMPASS DIVERSIFIED#10Why CODI Now? 10 Г Г ergobaby STRONG BALANCE SHEET . Leverage 2.9x • Approximately $465mm of availability to deploy LOWEST COST OF CAPITAL IN OUR HISTORY • 2021 debt refinancing extended . maturities and added $1.0B at 5.250% of unsecured debt with flexible covenants, while redeeming 8.000% debt Roughly half of capital, non-dilutive, at an average cost of 5.8% • CODI reclassed to a C Corp for taxation purposes to broaden investor base and to simplify ownership of stock CODI IS POSITIONED TO DELIVER REGARDLESS OF ECONOMIC CLIMATE . • If economic expansion - ten remaining subsidiaries producing strong Cash Flow which on an annualized basis is expected to exceed distribution; poised to grow in economic expansion If economic downturn - Cash Flow from existing subsidiaries expected to decline, however offset by $465mm in available capital to deploy into acquisitions at attractive prices COMPASS DIVERSIFIED#11Significant Events in 2021 & 2020 Г • . Lugano Diamonds September 2021 Acquired for $256 mm The design, engineering and • Designer, manufacturer, marketing of dial based fit and marketer of high- end, one-of-a-kind jewelry systems delivering a scientifically proven performance advantage for athletes Market leader with strong brand awareness in core categories Diverse customer base with • global end-market focus • • Differentiated go-to- market approach through salon-based sales model and over 100 equestrian, social, and philanthropic events Loyal and recurring clientele base . Reported Positive Third Quarter Financial Results Branded Consumer businesses QTD net sales up 21% and adjusted EBITDA up 24% compared to Q3 2020. Raised full year guidance implying 30- 33% YOY growth in Adjusted EBITDA Full Year 2021 Adjusted EBITDA guidance of $380mm to $390mm Payout Ratio expected to improve to less than 55% for full year 2021 Refinanced Debt March 2021 · Issued $1.0 billion of 5.250% Senior Notes due 2029 • • Repaid $600 million of 8.000% Senior Notes due 2026 • • $~600 million availability on Revolver, extend maturity to 2026 Upgraded by Moody's and S&P Marucci Sports April 2020 Acquired for $200mm; Leading manufacturer and distributor of baseball and softball equipment under the Marucci and Victus brands Highly passionate consumer base; 'fastest growing brand in Acquisitions BOA Technology October 2020 • Acquired for $454mm; • • 11 baseball'#12Closer Look at the Strategy 12 CO DI#13The Permanent Capital Advantage Г Traditional private equity players are pressured to transact in a market characterized by rich valuations, abundant credit and fund life-related pressures CODI can remain patient and choose not to buy when valuations are inflated. Our actions over the past two years demonstrate the effectiveness of this strategy: Generated tangible, sustained value for shareholders by selling two businesses opportunistically for sizeable gains о Used proceeds to repay debt and strengthen balance sheet Permanent capital structure and strong balance sheet allowed CODI to move forward with the acquisitions of Marucci Sports, BOA Technologies and Lugano Diamonds 13 CODI's permanent capital structure provides a competitive advantage throughout the entire lifecycle of an asset from sourcing to exit and through various economic cycles COMPASS DIVERSIFIED#14CODI in Action Permanent capital structure drives value at every stage of investment as CODI leverages its sector expertise and superior governance and transparency to build businesses for the long-term 01 Strategic Acquisitions Decentralized, regional business development efforts ⚫ Balance sheet provides certainty of financing and speed of closure Permanent capital avoids "moral hazard" faced by private equity managers operating under a fixed fund life Approach and model is attractive to management teams 14 02 Active Management • Enables a conservative, low leverage approach • Permanent capital available to invest in businesses to drive long term value creation • Build management teams • Invest in lasting infrastructure . Organic growth and add-on acquisitions 03 Opportunistic Divestitures • Flexible model optimizes and prioritizes outcomes for all stakeholders • Strong industry relationships • Diverse range of exit strategies - have generated realized gains in excess of $1 billion Г COMPASS VERSIFIED#15Commitment to ESG Our mission is to deliver superior investment results while mitigating risk and conducting our business in a socially responsible and ethical manner ESG is embedded in all aspects of our investment process from the original investment selection, to the subsequent value creation and eventual divestiture with a goal of continuous improvement Our long-term approach, deep expertise and commitment to sustainability are critical to ensuring we are a trusted partner to our subsidiary companies Ögo BOA LIBERTY SAFE ergobaby™ Г Committed to reducing use of virgin plastic by at least 50% within 10 years; will incorporate recycled or renewably sourced materials into 100% of products by 2027 Paint process is one of the most environmentally safe in U.S., removing 95% of all VOCS "Everlove" buyback and resale program benefits families and the planet by extending the use of Ergobaby carriers Sterno GROUP Going greener through its commitment to reducing the company's carbon footprint Made recent investments in LEED-certified facility 5.11 and sophisticated water reclamation system Committed to sourcing timber from sustainable marucci forests / establishing an end-of-life, recycling program ALTOR SOLUTIONS First industry player to introduce BioEPSⓇ, a high performance protective and thermal packaging solution that is 100% sustainable, recyclable, biodegradable and reusable INVESTING RESPONSIBLY PILLARS OF OUR STRATEGY ATTRACTING, RETAINING AND DEVELOPING THE BEST PROFESSIONALS ENGAGING WITH OUR LOCAL COMMUNITIES COMPASS DIVERSIFIED#16Profile of a Potential CODI Subsidiary PLATFORM Leading niche industrial or branded consumer company headquartered in North America Highly defensible position and meaningful organic or external growth opportunities Operating in industry with favorable long-term macroeconomic trends Low technological or product obsolescence risk Proven management team and diverse customer and supplier base Preferred transaction size $200 - $600 million Strong margins and minimal CapEx requirements / Strong free cash flow generation 16 r STRATEGIC ADD-ONS Strategic fit within a subsidiary company Ability to generate meaningful synergies COMPASS DIVERSIFIED#17Subsidiary Snapshot ($ millions) TTM 9/30/21(1) Subsidiaries Year Acquired Revenue Adj. EBITDA Adj. EBITDA Margin Maintenance Capex Growth Capex 2016 $440 $65 15% $2.3 $7.6(2) Purchase Price + Add-ons 5.110 $400 VELOCITY OUTDOOR 2017 $274 $56 20% $4.3 $248 2010 $85 $16 19% $0.1 $0.2 $168 ergobaby LUGANO 2021 $103 $35 34% DIAMONDS $268 marucci 2020 $105 $29 28% $4.7 $0.9 $249 2020 $149 $55 37% $1.6 $2.3 BOA DIALED IN." $454 Total Branded Consumer: $1,156 $256 22% $13.0 $11.0 Sterno ALTOR SOLUTIONS 2014 $379 $47 12% $2.3 $1.9 $347 2018 $163 $33 20% $2.9 $317 ARNOLD 2012 $125 $18 14% $6.3 MAGNETIC TECHNOLOGIES $165 2006 $88 $26 30% $0.8 $100 C ADVANCED CIRCUITS Total Niche Industrial: 17 Consolidated: $754 $124 16% $12.3 $1.9 $1,911 $380(3) 20% $25.3 $12.9 $2,716 1. Revenue, Adj. EBITDA, Capex shown pro forma for acquisition of Marucci, BOA Technology and Lugano Diamonds. 2. Growth Capex at 5.11 for retail store rollout. 3. Subsidiary Adj. EBITDA does not include ~$14million of corporate expenses. Г COMPASS DIVERSIFIED#18Diversity producing consistent cash flow and earnings SEPTEMBER 30, 2021 TTM REVENUES AND SUBSIDIARY PRO FORMA ADJUSTED EBITDA OF $1.9B AND $380M, RESPECTIVELY 4.7% Subsidiary Pro Forma Adjusted EBITDA 6.9% 18 8.5% 4.1% 12.5% 9.2% 14.5% 14.7% 7.6% 17.3% Ergobaby ■5.11 Tactical Altor Solutions Pro Forma Lugano Velocity Outdoor Advanced Circuits ■Marucci ■Pro Forma BOA Arnold Sterno Note: References to Adjusted EBITDA and Revenue includes Pro Forma information for Marucci and BOA. DIVERSIFIED CASH FLOWS FROM 10 SUBSIDIARIES • • 4 niche industrial subsidiaries representing 40% of Revenues and 33% of Adjusted EBITDA 6 branded consumer subsidiaries representing 60% of Revenues and 67% of Adjusted EBITDA it • DIVERSIFIED CUSTOMER BASE 10 subsidiaries in diverse industry segments reduce customer concentration risk COMPASS DIVERSIFIED#19Demonstrated History of Value Creation GENERATED $1.8+ BILLION IN CASH FLOW AND REALIZED GAINS OVER THE LAST 9 YEARS 19 $331.0 Г $72.7 $144.2 $168.1 $128.8 $72.6 $59.1 $73.5 $82.4 $58.0 $76.4 $92.2 $93.7 $104.0 $110.6 $135.3 2013 2014 2015 2016 2017 2018 2019 2020 2021 CAD Gains Stable cash flow generated by diverse businesses Note: CAD refers to Cash Available for Distribution or Reinvestment. Refer to the appendix for a reconciliation. COMPASS LDIVERSIFIED#20History of Successfully Deleveraging CODI has a demonstrated history of paying down its debt and is committed to staying conservatively levered 3.7x 3.0x 3.9x FOX FACTORY 5.11 3.7x tula $72MM FOXF Secondary & $100MM CODI Secondary 3.7x e CLEANEARTH Add-ons of HOCI, NII, Tula, Phoenix, & EWS VELOCITY OUTDOOR 3.9x RIMPORTS, LLC ALTOR SOLUTIONS Ravin Add-on 3.5x 3.5x 3.6x $100MM Preferred Offering Г LUGANO DIAMONDS BOA DIALED IN. 3.1x Acquisition Acquisition 3.0x 2.9x 2.1x Divestitures CAMELBAK American 1.7x 2.6x 2.5x 2.5x 2.4x Proceeds from $63MM FOXF Secondary 3.0x $100MM Preferred Offering MAA Divestitures NITO $136MM FOXF Secondary FOX FACTORY 2.9x 2.9 Refinance of Senior Secured Notes 2.6x LIBERTY Divesture e $88MM CODI Secondary CLEANEARTH FOX FACTORY 1.9x 1.9x 1.8x 1.9x 1.75x 1.8x Proceeds from $48MM FOXF marucci Secondary FOX FACTORY Acquisition 1.4x $115MM Preferred Offering Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Sept-20 Dec - 20 Mar-21 Jun-21 Sep - 21 20 20 Reported Leverage at Quarter End Leverage at Time of Acquisition Decreased Leverage COMPASS DIVERSIFIED#21Improving Cost of Capital 21 MAY 2006 15% 85% Equity Debt DEC 2011 SEP 2021 27% 73% ■Equity Debt Rate on debt - 10.9% Rate on debt - 8.8% 9% 34% 57% Equity Debt Preferred Г Rate on debt - 4.8%* Rate on preferred - 7.7% ד *If the Company drew its entire Revolver, its effective rate on debt would decline to ~4.6% COMPASS LDIVERSIFIED#22C-Corp Tax Reclassification Benefits Creates clear alignment with investors by simplifying corporate structure and attracting additional investors NOTE: Reclassified to C-Corp on September 1, 2021 We believe there are significant benefits to reclassifying as a C-Corp Broadens pool of investors by making it significantly easier for both institutional and retail investors to own CODI shares • Simplifies tax reporting and uncertainty Reduces average cost of capital Increases share liquidity Improves cost of equity capital and shares become more attractive currency 22 22 Improves likelihood of inclusion within stock indices Improves profile with rating agencies Reduces administrative costs Eliminates K-1 and UBTI Г Building on 15+ years of success, C-Corp taxation would drive greater value for all CODI shareholders over time COMPASS LDIVERSIFIED#23Appendix 23 ergobaby CO DI#24CODI Partnership Structure ד Г $600mm Revolver ($134 O/S at Sept. 30, 2021) $1.0B Senior Unsecured Notes Cash Flows COMPASS DIVERSIFIED HOLDINGS ("TRUST") NYSE: CODI COMPASS GROUP DIVERSIFIED HOLDINGS LLC ("Compass" / the "Company") Allocation Interests(3) Sostratus LLC(1) ("Sostratus") Management Services Agreement Cash Flows Compass Group Management LLC(2) ("CGM" "Manager") NICHE INDUSTRIAL C ADVANCED CIRCUITS ARNOLD Sterno ALTOR MAGNETIC TECHNOLOGIES Products SOLUTIONS BRANDED CONSUMER BOA DIALED IN: 5.11 marucci LUGAN O ergobaby™ VELOCITY OUTDOOR 1. As of 12/31/20, 45.0% beneficially owned by certain persons who are employees and partners of our Manager. C. Sean Day, the Chairman of our Board of Directors, CGI and former founding partners of the Manager, are non-managing members. 24 2. Mr. Sabo is a Member and the Manager of this entity, which is an LLC, not a partnership 3. The Allocation Interests, which carry the right to receive a profit allocation, represent less than 0.1% equity interest in the Company. DIAMOND S COMPASS DIVERSIFIED#25MANITOBA hemp HARVEST foods PURCHASE PRICE (JULY 2015) C$132mm Case Study OWNERSHIP AND MANAGEMENT Γ DIVESTITURE OF MANITOBA HARVEST OVERVIEW Manitoba Harvest is a pioneer and global leader in hemp-based foods, both under its own brand and as an ingredient supplier. The company is the world's largest vertically-integrated hemp food manufacturer and is strategically located near its supply base in Canada. กก COMPETITIVE STRENGTHS Market share leader in Canada and the U.S. Passionate and loyal consumer following Strong management team; thought leaders in Hemp industry Vertically-integrated manufacturing model Unique access to highly regulated supply base • • Recruited Bill Chiasson, a former CEO of a CODI portfolio company, to transition from founder led business Recruited VP Marketing, SVP Global Sales, CFO Relocated corporate offices from Winnipeg to Minneapolis to provide access to robust talent pool for future growth Add-on acquisition (C$42mm) of the leading hemp food ingredient processor, Hemp Oil Canada, strengthening product and supply position Invested heavily in sales, marketing and product R&D • • • Expanded points of distribution Increased consumer awareness by ~100% (Household Penetration) Launched multiple new products including protein powders, granola, bars and CBD (announced prior to divestiture) In February 2019, CODI completed the 100% sale of Manitoba Harvest to Tilray Inc. for an aggregate sales price of up to C$419mm • Under the terms of the agreement, C$49mm of the aggregate sales price is subject to Manitoba Harvest achieving certain performance milestones in 2019 SUCCESSFUL INVESTMENT In February 2019, CODI completed the 100% sale of Manitoba Harvest to Tilray Inc. for an aggregate sale price of $294 million. 25 COMPASS DIVERSIFIED#26e CLEANEARTH RECYCLING & DISPOSAL SOLUTIONS PURCHASE PRICE (AUG 2014) $251mm OVERVIEW Case Study Clean Earth is a provider of environmental services including de-characterization, remediation, disposal, recycling, and beneficial reuse for hazardous and non-hazardous wastes, contaminated soil, wastewater and dredged material. Clean Earth serves a variety of industries including infrastructure, chemical, utilities, industrial, commercial, retail, and healthcare markets. กก COMPETITIVE STRENGTHS Market share leader Significant portfolio of regulatory permits, processing knowledge and equipment Benefits from strengthening and enforcement of environmental regulation Increasing waste disposal costs and landfill avoidance trends Strong management team; average tenure of approximately 10 years 26 • • VALUE CREATION Worked with management to execute an aggressive add-on acquisition strategy, repositioning the company's end markets and customer base while broadening its facility footprint and permit portfolio. Completed accretive add-ons of seven environmental services providers, representing approximately $100 million of annual revenue and expanding the Company's footprint from 12 to 27 fixed facilities across the United States . Transformed revenue mix from primarily soil to majority hazardous waste treatment, which is higher margin, more programmatic and less indexed to macroeconomic fluctuations • Shifted contaminated materials end markets from primarily commercial to majority infrastructure Developed advanced reporting and analytical systems to manage operational integration and track performance of the add-ons Successfully targeted fragmented hazardous waste treatment market, acquiring 8 valuable RCRA Part B permits to expand processing capacity and capabilities (no new commercial Part B permits issued in over 30 years) • Deployed capital through proprietary transactions at accretive valuations in a high-multiple environment DIVESTITURE OF CLEANEARTH In June 2019, CODI completed the 100% sale of Clean Earth to Harsco Corporation (NYSE: HSC) for $625 million. COMPASS DIVERSIFIED#27FOX FACTORY PURCHASE PRICE (JANUARY 2008) $80mm OVERVIEW Case Study • VALUE CREATION IPO provided increased capital availability and access to lower cost of capital to fund growth initiatives • Recruited professional management team including CEO, CFO and SVP of Operations FOX is a designer, manufacturer and marketer of high-performance suspension products used primarily on mountain bikes, side-by-side vehicles, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, specialty vehicles and applications and motorcycles. กก COMPETITIVE STRENGTHS Global, premium, performance-based lifestyle brand Highly-engineered products with focus on innovation Large white space opportunity in new vehicle categories Strong OEM relationships and global aftermarket distribution network Experienced management team leading company of enthusiasts . . Streamlined mountain bike supply chain and co-located by key OEMs Supported large R&D budget to drive new product introduction in rapidly growing vehicle categories like side-by-sides and off-road trucks Invested heavily in sales and marketing to drive consumer demand and loyalty DIVESTITURE OF FOX In August 2013, CODI completed an Initial Public Offering of FOX Factory at $15.00 per share. As a patient investor, CODI subsequently reduced its holding position via 5 secondary share offerings from 2014 to 2017, ultimately realizing total proceeds of over $527 million upon exit. 27 COMPASS DIVERSIFIED#28Current Subsidiaries 28 ne m 2¾a marucc CATE GAIR CO maruc maruc CAT COMPO CO DI#295.110 PURCHASE PRICE COMPETITIVE STRENGTHS (AUGUST 2016) $400mm Passionate and enthusiastic customer base Entrenched position in the professional market providing stable cash flow Broad customer base and product portfolio DESCRIPTION The design and marketing of purpose-built technical apparel and gear serving a wide range of global customers COMPASS VALUE ADDED Working with management to build its direct-to-consumer efforts through online and retail and enhance omni-channel infrastructure 29 FINANCIALS Revenue ($ millions) Adjusted EBITDA ($ millions) Nine Months Ended $321.0 $47.3 9/30/2021 Nine Months Ended $281.8 $36.3 9/30/2020 Year Ended $401.1 $54.7 12/31/2020 Year Ended $388.6 $46.9 12/31/2019 Year Ended $347.9 $32.3 12/31/2018 COMPASS DIVERSIFIED#30VELOCITY OUTDOOR PURCHASE PRICE (JUNE 2017) $152mm + $97mm add-on acquisitions COMPETITIVE STRENGTHS Market share leader in airguns and crossbows Unrivaled sourcing and manufacturing capabilities allows for penetration into new markets Well-known brand names Enthusiastic and passionate customer base DESCRIPTION The design, manufacture and marketing of airguns, archery products, optics and related accessories COMPASS VALUE ADDED Working with management to develop strategy for new market penetration, identify add-ons and broaden international distribution 30 (1) Includes revenue of $33.5 and adjusted EBITDA of $10.8 related to Ravin add-on acquisition FINANCIALS Revenue Adjusted EBITDA ($ millions) ($ millions) Nine Months Ended 9/30/2021 $205.9 $41.2 Nine Months Ended 9/30/2020 $148.2 $25.0 Year Ended 12/31/2020 $216.0 $39.5 Year Ended $147.8 $21.6 12/31/2019 Proforma Year Ended $164.9 $31.3 12/31/2018 (1) COMPASS DIVERSIFIED#31ergobaby™ PURCHASE PRICE (SEPTEMBER 2010) $85mm +$83mm add-on acquisitions DESCRIPTION The design and marketing of wearable baby carriers, strollers and related products 09 COMPETITIVE STRENGTHS Carrier endorsed as "one of the 20 best products in the last 20 years" by Parenting Magazine Superior design resulting in improved comfort for both parent and child Passionate and enthusiastic customer base Reduced cyclicality industry with low elasticity of price due to importance of product to purchaser COMPASS VALUE ADDED Recruited senior management team. Working with management to improve product distribution globally, identify add-on acquisitions and related brand products to sell into passionate customer base 31 FINANCIALS ني chillida Revenue ($ millions) Adjusted EBITDA ($ millions) Nine Months Ended 9/30/2021 $69.1 $13.9 Nine Months Ended $59.2 $13.8 9/30/2020 Year Ended $74.7 $15.6 12/31/2020 Year Ended $90.0 $20.3 12/31/2019 Year Ended $90.6 $21.1 12/31/2018 COMPASS DIVERSIFIED#32LUGANO DIAMONDS PURCHASE PRICE COMPETITIVE STRENGTHS (SEPTEMBER 2021) $256mm DESCRIPTION . . World-class design capabilities creates exquisite, one-of-a- kind jewelry Unique retail strategy improves client experience Highly effective event-driven marketing strategy Long-lasting client connections bring high-value, discerning and loyal clientele COMPASS VALUE ADDED The design, manufacture, and marketing of high-end, one-of- a-kind jewelry Working with management to support retail rollout plans and build infrastructure to support growth 32 FINANCIALS Revenue ($ millions) Adjusted EBITDA ($ millions) Proforma Nine Months Ended 9/30/2021 $81.9 $27.6 Proforma Nine Months Ended 9/30/2020 $46.1 $14.0 Proforma Year Ended 12/31/2020 $67.2 $21.3 COMPASS DIVERSIFIED#33marucci PURCHASE PRICE COMPETITIVE STRENGTHS (APRIL 2020) $200mm +$48mm add-on acquisitions . Leading position in the professional market Enthusiast and aspirational brands Vertically integrated wood bat operations Broad product portfolio and omni-channel sales strategy DESCRIPTION COMPASS VALUE ADDED The design and manufacture of baseball and softball equipment and apparel Working with management to penetrate new markets, continue its omni-channel approach, pursue strategic acquisitions and broaden international distribution 33 33 FINANCIALS Γ Revenue ($ millions) Adjusted EBITDA ($ millions) Nine Months Ended 9/30/2021 $86.3 $23.8 Nine Months Ended $47.3 $8.6 9/30/2020 Proforma Year Ended $65.9 $13.8 12/31/2020 Proforma Year Ended $66.5 $14.2 12/31/2019 COMPASS DIVERSIFIED#34BOA DIALED IN. PURCHASE PRICE (OCTOBER 2020) $454mm 09 COMPETITIVE STRENGTHS . BOA FINANCIALS Γ Market leader with strong brand awareness in core categories Diverse customer base with global end-market focus Broad intellectual property position creates barriers to entry Nine Months Ended 9/30/2021 Revenue ($ millions) Adjusted EBITDA ($ millions) DESCRIPTION The design, engineering and marketing of dial based fit systems delivering a scientifically proven performance advantage for athletes COMPASS VALUE ADDED Supporting management's strategic vision to penetrate new product categories and geographies, and to drive increased brand awareness 34 $120.0 $46.3 Nine Months Ended 9/30/2020 $77.2 $24.5 Proforma Year Ended 12/31/2020 $106.4 $33.3 Proforma Year Ended 12/31/2019 $106.3 $30.2 COMPASS DIVERSIFIED#35Sterno GROUP PURCHASE PRICE (OCTOBER 2014) $160mm +$184mm add-on acquisition DESCRIPTION Sterno. SAFE HEAT 2 HR CHAFING FUEL COMPETITIVE STRENGTHS FINANCIALS • Leading manufacturer in a niche market Revenue • Iconic brand with over 100 year history ($ millions) Adjusted EBITDA ($ millions) . Strong management team with proven ability to make accretive acquisitions Nine Months Ended 9/30/2021 $267.4 $32.7 Nine Months Ended $258.1 $34.8 9/30/2020 Year Ended The manufacture and marketing of portable food warming systems used in the foodservice industry, creative indoor and outdoor lighting, and home fragrance solutions for the consumer markets COMPASS VALUE ADDED Working with management team to develop its strategic plan to enter new markets, support the development of new products, and pursue add-on acquisitions 35 (1) Includes revenue of $24.8 and adjusted EBITDA of $5.5 related to Rimports add-on acquisition $370.0 $49.5 12/31/2020 Year Ended $395.4 $68.5 12/31/2019 Proforma Year Ended $405.9 $69.3 12/31/2018 (1) COMPASS DIVERSIFIED#36ALTOR SOLUTIONS PURCHASE PRICE COMPETITIVE STRENGTHS (FEBRUARY 2018) $248mm +$69mm add-on acquisition • A leader in molded foam protective packaging National manufacturing footprint of 19 plants provides: Ability to scale raw material purchases Ability to service national customers Long-tenured blue-chip customer relationships DESCRIPTION The design and manufacture of custom packaging, insulation and componentry 36 FINANCIALS Revenue ($ millions) Adjusted EBITDA ($ millions) Nine Months Ended 9/30/2021 $122.6 $23.8 Nine Months Ended $89.3 $22.0 9/30/2020 Year Ended $130.0 $30.5 COMPASS VALUE ADDED 12/31/2020 Year Ended $121.4 $28.5 Working with management to develop its strategic plan and to pursue add-on acquisitions 12/31/2019 Pro forma Year Ended $128.5 $29.4 12/31/2018 COMPASS DIVERSIFIED#37ARNOLD® MAGNETIC TECHNOLOGIES PURCHASE PRICE (MARCH 2012) 09 COMPETITIVE STRENGTHS $129mm +$36mm add-on acquisition . Market share leader • Attractive and diverse end-markets Engineering and product development capabilities • Stable blue chip customer base-2,000+ customers globally • Global manufacturing footprint DESCRIPTION The manufacture of engineered magnetic solutions for a wide range of specialty applications and end-markets COMPASS VALUE ADDED Working with management to identify and consummate add- on acquisitions and expand capabilities through investment in technology center 37 FINANCIALS Revenue ($ millions) Adjusted EBITDA ($ millions) Nine Months Ended 9/30/2021 $101.9 $16.5 Nine Months Ended $76.4 $8.0 9/30/2020 Year Ended $99.0 $9.3 12/31/2020 Year Ended $120.0 $15.4 12/31/2019 Year Ended $117.9 $14.0 12/31/2018 COMPASS DIVERSIFIED#38C ADVANCED CIRCUITS PURCHASE PRICE (MAY 2006) $81mm +$19mm add-on acquisition 09 COMPETITIVE STRENGTHS Insulated from Asian manufacturing due to small, customized order size and requirements for rapid turnaround Largest quick turn manufacturer in the US; approximately 300 unique daily orders received Manufacturing scale produces high margins Diverse customer base - 10,000 current customers DESCRIPTION The manufacture of quick-turn, small-run and production rigid printed circuit boards COMPASS VALUE ADDED Working with management to identify and consummate add-on acquisitions and build complementary quick turn assembly business 38 FINANCIALS Revenue ($ millions) Adjusted EBITDA ($ millions) Nine Months Ended $67.2 $20.9 9/30/2021 Nine Months Ended $67.4 $20.9 9/30/2020 Year Ended $88.1 $26.3 12/31/2020 Year Ended $90.8 $28.9 12/31/2019 Year Ended $92.5 $30.0 12/31/2018 COMPASS DIVERSIFIED#3939 Financials CO DI#40Balance Sheet - Condensed (000's) September 30, 2021 Current Assets: Cash and cash equivalents Other current assets Total current assets Property, plant and equipment Goodwill, intangibles and other assets Total assets Current Liabilities: Current portion of debt Other current liabilities Total current liabilities Long-term debt Other liabilities Total liabilities Stockholders' Equity: Controlling interest Non-controlling interest Total stockholders' equity Total liabilities and stockholders' equity 40 Г 70,239 794,122 864,361 169,507 1,806,425 2,840,293 343,828 343,828 1,122,721 175,028 1,641,577 1,039,900 158,816 1,198,716 2,840,293 COMPASS DIVERSIFIED#41Income Statement - Condensed (000's) September 30, 2021 Net Sales Cost of Sales Gross Profit Operating Income Interest expense, net Other income (expense) Loss on debt extinguishment Provision (benefit) for income taxes Income (loss) from discontinued operations, net of income tax Gain on sale of discontinued operations Net Income Noncontrolling interest Net income attributable to Holdings 41 SA SA EA Г 1,372,266 818,307 553,959 EA 125,138 (42,607) (4,073) (33,305) 24,662 7,665 72,745 100,901 8,437 92,464 COMPASS DIVERSIFIED#42Cash Flow Statement September 30, 2021 - Condensed (000's) Net cash provided in operating activities Net cash used in investing activities Net cash provided in financing activities Effect of foreign currency on cash Net (decrease) increase in cash and cash equivalents 42 $ EA EA EA Г 147,148 SA (202,429) 54,872 (96) (505) COMPASS DIVERSIFIED#43Adjusted EBITDA Year ended September 30, 2021 Г Net income (loss) Adjusted for: Provision (benefit) for income taxes Interest expense, net Intercompany interest Corporate 5.11 BOA Ergobaby Lugano Marucci Sports Velocity Outdoor ACI Altor Arnold Sterno Consolidated $ 8,028 $ 14,318 $ 16,908 $ 3,071 $ 681 $ 9,485 $ 19,157 $ 10,366 $ 5,892 $ 3,839 $ 1,491 $ 93,236 4,857 2,165 1,357 304 2,920 5,381 2,547 2,867 2,062 202 24,662 42,464 8 5 125 5 42,607 (53,234) 8,743 6,320 1,514 548 1,890 5,586 5,484 5,075 4,128 13,946 Loss on debt extinguishment 33,305 33,305 Depreciation and amortization 642 16,762 15,033 6,377 70 70 6,377 9,489 1,658 9,022 5,822 16,313 87,565 EBITDA 31,205 44,688 40,426 12,319 1,603 20,677 39,738 20,055 22,856 15,856 31,952 281,375 Gain on sale of business (72,745) (72,745) Other (income) expense (286) (302) 190 22 881 2,611 123 (399) (51) (883) 1,906 Noncontrolling shareholder 1,926 1,655 1,241 826 777 372 770 16 913 8,496 compensation Acquisition expenses 39 1,827 310 2,176 Adjusted EBITDA Integration service fee Other Management fees $ (10,569) $ 47,335 $ 46,321 $ 13,935 3,300 1,085 273 30,133 750 1,000 4,300 (2,300) 333 (609) 750 375 58 375 375 375 563 375 375 34,504 $ 3,510 $ 23,759 $ 41,201 $ 20,925 $ 23,790 $ 16,506 $ 32,690 $ 259,403 43 COMPASS DIVERSIFIED#44Adjusted EBITDA Year ended September 30, 2020 Net income (loss) Adjusted for: Provision (benefit) for income taxes Interest expense, net Г Corporate 5.11 Ergobaby Marucci Sports Velocity Outdoor ACI Altor Arnold Sterno Consolidated $ (13,346) $ 5,515 $ 1,837 $ (5,344) $ 4,245 $ 10,980 $ 4,188 $ (1,719) $ 2,131 $ 8,487 - (55) 2,265 (2,351) 1,386 2,878 1,891 (56) 162 6,120 31,971 43 6 102 32,122 Intercompany interest (48,681) 10,770 1,818 1,194 6,945 4,176 5,290 4,300 14,188 Depreciation and amortization 530 16,033 6,152 8,031 9,651 1,980 9,473 5,040 17,251 74,141 EBITDA (29,526) 32,306 12,072 1,536 22,239 20,014 20,842 7,565 33,732 120,870 OGain on sale of businesses Other (income) expense Noncontrolling shareholder compensation Acquisition expenses Integration services fees Other Management fees Adjusted EBITDA (100) (100) 3 1,398 (46) 1,048 126 (438) (1) 86 2,176 1,870 748 361 1,287 372 771 34 651 6,094 2,042 273 2,315 500 500 598 598 19,651 750 375 222 375 375 563 375 375 23,061 $ (9,972) $ 36,324 $ 13,793 $ 4,615 $ 25,039 $ 20,887 $ 22,011 $ 7,973 $ 34,844 $ 155,514 44 COMPASS DIVERSIFIED#45Adjusted EBITDA Year ended December 31, 2020 Net income (loss) Adjusted for: Provision (benefit) for income taxes Г Corporate 5.11 BOA Ergobaby Liberty Marucci Sports Velocity Outdoor ACI Arnold Altor Solutions Sterno Consolidated $(19,065) $12,356 $(2,640) $725 $9,902 $(4,785) $11,161 $13,170 $(3,539) $6,092 $3,820 $27,197 1,808 (535) 2,033 3,288 (1,390) 3,560 3,431 (198) 2,554 2,343 16,894 Interest expense, net 45,610 19 7 131 1 45,768 Intercompany interest (70,449) 14,085 2,043 2,405 3,548 1,843 8,915 5,778 5,730 7,084 19,018 Depreciation and amortization 399 21,483 5,589 8,199 1,742 10,203 12,781 2,773 6,805 12,722 22,510 105,206 EBITDA (43,505) 49,751 4,457 13,362 18,480 5,878 36,548 25,152 8,798 28,452 47,692 195,065 Gain on sale of business (100) (100) Other (income) expense 1,420 39 7 (42) 931 154 9 (38) 140 2,620 Noncontrolling shareholder compensation Acquisition expenses and other Integration service fee Other 2,489 469 1,156 29 634 1,549 495 (20) 1,028 1,166 8,995 2,517 2,042 1,125 1,000 Management fees Adjusted EBITDA 4,832 2,125 324 598 922 29,402 1,000 250 500 500 347 500 500 500 750 500 34,749 $(13,879) $ 54,660 $8,857 $15,616 $19,016 $9,859 $39,528 $26,301 $9,287 $30,465 $49,498 $249,208 273 45 COMPASS DIVERSIFIED#46Adjusted EBITDA Year Ended December 31, 2019 Net income (loss) (1) Adjusted for: Provision (benefit) for income taxes Interest expense, net Intercompany interest Loss on debt extinguishment Depreciation and amortization EBITDA Gain on sale of business Other (income) expense Non-controlling shareholder compensation Impairment expense Integration services fee Earnout provision adjustment Loss on sale of investment Other Management fees Adjusted EBITDA Corporate 5.11 Ergobaby Liberty Velocity Outdoor Advanced Circuits Arnold Altor Solutions $ 282,240 $ 2,059 $ 4,793 $ 3,130 $ (36,982) $ 14,970 700 $ 2,883 Г Sterno Consolidated $ 16,447 $ 290,240 2,520 2,250 932 (2,782) 3,896 1,280 1,258 5,388 14,742 57,980 (24) 17 242 (2) (1) 4 58,216 (80,556) 12,319 17,567 3,325 4,364 11,194 6,543 6,295 8,635 22,633 12,319 1,598 273,581 21,540 8,561 1,667 13,222 2,551 6,545 12,452 22,486 90,622 43,662 18,946 10,093 (15,106) 27,958 14,819 25,228 66,958 466,139 (331,013) (331,013) 92 (122) (11) 16 952 122 1 1,247 (112) 2,185 2,360 828 (8) 322 288 56 1,025 1,183 6,054 32,881 32,881 10,193 | | | | 2,022 | | | 281 281 | | │ 2,022 10,193 266 58 324 32,280 1,000 500 500 500 500 500 750 500 37,030 $ (14,867) $ 46,900 $ 20,263 $ 10,867 $ 21,571 $ 28,926 $ 15,376 $ 28,531 $ 68,529 $ 226,096 46 Note: Excludes adjusted EBITDA information from Clean Earth and Manitoba Harvest COMPASS DIVERSIFIED#47Adjusted EBITDA Year Ended December 31, 2018 Г Advanced Corporate 5.11 Ergobaby Liberty Velocity Outdoor Arnold Circuits Altor Solutions Sterno Consolidated $ (35,018) $ (12,079) $ 4,937 $ 1,161 $ (4,458) $ 15,029 $ (740) $ 1,103 $ 12,451 $ (17,614) Net income (loss) Adjusted for: Provision (benefit) for income taxes Interest expense, net Intercompany interest Depreciation and amortization EBITDA (2,180) 1,634 409 (598) 3,736 1,731 1,152 4,582 10,466 54,994 14 1 281 (46) 1 55,245 (78,708) 17,486 4,674 4,233 9,298 7,402 6,213 8,228 21,174 2,739 21,898 8,523 1,620 12,352 3,310 6,384 10,973 27,385 95,184 (55,993) 25,139 19,769 7,423 16,875 29,431 13,588 21,456 65,593 143,281 Gain on sale of business (1,258) (1,258) (Gain) loss on sale of fixed assets (194) 92 47 55 73 19 92 Non-controlling shareholder compensation 2,183 869 45 1,009 23 (167) 848 1,901 6,711 Acquisition expenses 115 Integration services fee Earnout provision adjustment Inventory adjustment 4,175 | | | | 1,362 1,552 632 3,661 750 1,969 2,719 (4,800) (4,800) 4,175 Loss on foreign currency transaction and other Management fees Adjusted EBITDA $ 4,083 38,786 (14,267) 4,083 1,000 500 500 $ 32,303 $ 21,138 $ 8,060 $ 500 20,543 500 500 658 500 43,444 $ 29,954 $ 13,976 $ 26,556 $ 63,845 $ 202,108 47 Note: Excludes adjusted EBITDA information from Clean Earth and Manitoba Harvest COMPASS DIVERSIFIED#48CAD Reconciliation (in thousands) Net Income Adjustment to reconcile net income to cash provided by operating activities: Year to Date 9/30/2021 $100,901 Year Ended 12/31/2020 $27,197 Year Ended 12/31/2019 $307,141 Year Ended 12/31/2018 $(1,790) Year Ended 12/31/2017 $33,612 Year Ended 12/31/2016 $56,530 Depreciation and Amortization Impairment expense (Gain) loss on sale of businesses Amortization of debt issuance costs premium/discount 86,474 102,752 100,462 120,575 110,051 87,405 32,881 17,325 25,204 (72,745) (100) (331,013) (1,258) (340) (2,308) 2,084 2,232 3,773 4,483 5,007 3,565 Unrealized (gain) loss on interest rate hedges Loss (gain) on equity method investment 3,500 (2,251) (648) 1,539 5,620 (74,490) Noncontrolling shareholder charges 8,513 8,995 7,993 8,975 7,027 4,382 Deferred taxes 2,256 (781) (12,876) (9,472) (59,429) (9,669) Loss on debt extinguishment 33,305 Other 5,150 4,981 17,994 1,440 Changes in operating assets and liabilities (18,790) 3,349 (45,293) (6,250) 3,940 (40,394) Net cash provided by operating activities 147,148 148,625 84,562 114,452 81,771 730 18,484 111,372 Plus: Unused fee on revolving credit facility Integration service fee 1,207 1,386 1,851 1,630 2,856 1,947 4,300 2,125 281 2,719 3,083 1,667 Other 2,176 4,832 13,174 14,607 2,467 5,866 Changes in operating assets and liabilities 18,790 45,293 6,250 40,394 Less: Payments on interest rate swap 675 1,783 3,964 4,303 Maintenance capital expenditures 19,063 17,084 22,005 27,246 20,270 20,363 Realized gain from foreign currency 3,315 1,327 Changes in operating assets and liabilities 3,349 - 18,484 Preferred share distributions 18,136 23,678 15,125 12.179 Other 1,111 2,211 3,318 4,800 Estimated cash flow available for distribution and reinvestment $135,311 $110,646 $104,038 $93,650 2,457 8,322 $92,243 $76,375 48 Г COMPASS DIVERSIFIED#49Thank you! 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