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Investor Presentaiton

Non-GAAP Financial Measures Free Cash Flow Free cash flow is defined as cash provided by operating activities less capital expenditures. Vista Outdoor management believes that free cash flow provides investors with an important indication of the cash generated by our business for debt repayment, share repurchases and acquisitions after making the capital investments required to support ongoing business operations. Vista Outdoor management uses free cash flow to assess overall liquidity. Adjusted free cash flow is defined as free cash flow eliminating the cash impact of the following items that are adjusted in our presentation of reported income to adjusted net income: transaction costs, transition costs, planned separation costs, post-acquisition compensation, restructuring and executive transition costs. Vista Outdoor management believes that adjusted free cash flow enhances investors' understanding of the liquidity of our ongoing operations. Adjusted free cash flow is also used by Vista Outdoor to assess employees' performance and determine their annual incentive payments. Vista Outdoor's definition of adjusted free cash flow may differ from those used by other companies. During the fourth quarter of fiscal year 2023, we modified our definition of adjusted free cash flow to no longer adjust for applicable tax amounts. All periods presented have been adjusted for this modification. OVISTA OUTDOOR Adjusted Free Cash Flow (in thousands) Cash provided by operating activities Capital expenditures Free cash flow Transaction costs Transition costs Planned separation costs Post acquisition compensation Restructuring Executive transition Adjusted free cash flow Three months ended June 25, 2023 June 26, 2022 $ 73,701 $ (7,616) 66,085 107,577 (4,910) Projected year ending March 31, 2024 $323,351-374,851 ~(42,750-44,250) $ 102,667 $280,601-330,601 3,217 1,663 116 1,663 2,629 4,300 2,629 83 83 83 2,241 2,241 2,783 2,783 $ 75,484 110,383 $290,000-340,000 32
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