Vital Farms : VITL Q1 24 Earnings Presentation 5.8.24

VITAL FARMS, INC.

(NASDAQ: VITL)

May 2024 Corporate Presentation

REPORTING DISCLAIMER

This presentation contains, in addition to historical information, certain forward-looking statements, as defined in Private Securities Litigation Reform Act of 1995, that are based on our current assumptions, expectations and projections about future performance and events and relate to, among other matters, our future financial performance, our business strategy, industry and market trends, future expectations concerning our market position, future operations and capital expenditures. Statements in this presentation that are forward-looking include, but are not limited to, statements related to the company's ability to acquire new customers and successfully retain existing customers, the Company's ability to effectively manage long-term growth, market opportunity, specifications and timing around our new egg packing facility, the effect of such facility on our future revenue, future growth of our farm network, anticipated growth, and future financial performance, including management's outlook for fiscal year 2024 and management's long-term outlook.

Forward-looking statements generally contain words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "estimates," "anticipates," and similar expressions. These forward-looking statements are only predictions, not historical fact. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this presentation. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause actual results to differ materially from expectations include, among others: the demand for its products, and on overall economic conditions and consumer confidence and spending levels; expectations regarding its revenue, expenses and other operating results; Vital Farms' ability to acquire new customers, to successfully retain existing customers and to attract and retain its personnel, farmers, suppliers, distributors, and co-manufacturers; Vital Farms' ability to sustain or increase its profitability; Vital Farms' ability to procure sufficient high-quality eggs, cream for its butter and other raw materials; real or perceived quality or food safety issues with Vital Farms' products or other issues that adversely affect Vital Farms' brand and reputation; changes in the tastes and preferences of consumers; the financial condition of, and Vital Farms' relationships with, its farmers, suppliers, co-manufacturers, distributors, retailers, and foodservice customers, as well as the health of the foodservice industry generally; the impact of agricultural risks, including diseases such as avian influenza, or the perception that such outbreaks may occur or regulatory or market responses to such outbreaks generally; the ability of Vital Farms, its farmers, suppliers, and its co-manufacturers to comply with food safety, environmental or other laws or regulations; future investments in its business, anticipated capital expenditures and estimates regarding capital requirements; anticipated changes in Vital Farms' product offerings and Vital Farms' ability to innovate to offer successful new products or enter new product categories; the costs and success of marketing efforts; Vital Farms' ability to effectively manage its growth and to compete effectively with existing competitors and new market entrants; the impact of adverse economic conditions, including as a result of unfavorable global economic and political conditions, increased interest rates and inflation; the impact of increased interest rates; the impact of Vital Farms' implementation of a new enterprise resource planning system; the potential negative impact of Vital Farms' focus on a specific public benefit purpose and producing a positive effect for society on its financial performance; the sufficiency of Vital Farms' cash, cash equivalents, marketable securities and availability of credit under its credit facility to meet liquidity needs; seasonality; and the growth rates of the markets in which Vital Farms competes; and other risks and uncertainties detailed in Vital Farms' Quarterly Report on Form 10-Q, which Vital Farms anticipates filing on March 9, 2024, its Annual Report on Form 10-K for the 53-week period ended December 31, 2023 filed on March 7, 2024 and in subsequent filings made with the Securities and Exchange Commission. We are under no duty to update any of these forward-looking statements after the date of this presentation except as otherwise required by law.

This presentation also contains estimates and other statistical data obtained from independent parties and by us relating to market size and growth and other data about our industry, customers and consumers. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates and data. In addition, projections, assumptions and estimates of our future performance and the future performance of the geographic and other markets in which we operate are necessarily subject to a high degree of uncertainty and risk. Our historical results are not necessarily indicative of the results to be expected for any future periods and our operating results for the 13-week period ended March 31, 2024, are not necessarily indicative of the results that may be expected for the fiscal year ending December 29, 2024, or any other interim periods or any future year or period.

The trademarks included in this presentation are the property of the owners thereof and are used for reference purposes only.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA Margin are financial measures that are not required by, or presented in accordance with generally accepted accounting principles in the United States ("GAAP"). We believe that these measures, when taken together with our financial results presented in accordance with GAAP, provide meaningful supplemental information regarding our operating performance and facilitates internal comparisons of our historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. Adjusted EBITDA and Adjusted EBITDA Margin should not be considered as an alternative to net income (loss) income, net (loss) income per share, net cash provided by operating activities or any other performance measures derived in accordance with GAAP as measures of operating performance, operating cash flows or liquidity. Our presentation of Adjusted EBITDA should not be construed to imply that our future results will be unaffected by these items. See the appendix to this presentation for a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to net (loss) income, the most directly comparable financial measure presented in accordance with GAAP.

"Adjusted EBITDA" is defined as net income, adjusted to exclude: (1) depreciation and amortization; (2) (benefit) or provision for income taxes as applicable; (3) stock-based compensation expense; (4) interest expense; and (5) interest income.

"Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by net revenues.

Adjusted EBITDA and Adjusted EBITDA Margin are presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Some of the limitations of Adjusted EBITDA and Adjusted EBITDA Margin include that (1) they do not properly reflect capital commitments to be paid in the future, (2) although depreciation and amortization are non-cash charges, the underlying assets may need to be replaced and Adjusted EBITDA and Adjusted EBITDA Margin do not reflect these capital expenditures, (3) they do not consider the impact of stock-based compensation expense, (4) they do not reflect other non-operating expenses, including interest expense; and (5) they do not reflect tax payments that may represent a reduction in cash available to us. In addition, our use of Adjusted EBITDA and Adjusted EBITDA Margin may not be comparable to similarly titled measures of other companies

because they may not calculate Adjusted EBITDA and Adjusted EBITDA Margin in the same manner, limiting the usefulness as comparative measures. Because of these limitations, when evaluating our performance, you should consider Adjusted EBITDA and
Adjusted EBITDA Margin alongside other financial measures, including our net income, net cash provided by operating activities and other results stated in accordance with GAAP.	2

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OUR VALUES ARE ROOTED IN CONSCIOUS CAPITALISM

We operate a

STAKEHOLDER MODEL

That prioritizes the long-term benefits of each of our stakeholders

Our approach has been validated by our designation as a

M	U
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&

CONS U

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CERTIFIED B

CORPORATION,

a certification reserved for businesses that balance profit and purpose to meeting the highest verified standards of social and environmental performance, public transparency, and legal accountability

F	S
A	R	C

M							ER				S
R						I
						E		R
E					L
				E
R				P			W	B
		P
	S	U
		& S

These principles guide our day-to-day operations and, we believe, deliver a more SUSTAINABLE

AND SUCCESSFUL business

4

WE HAVE DEVELOPED AN ALTERNATIVE TO FACTORY FARMING PRACTICES

Year-Round Production

Our Framework

LIVING	OPEN AIR, 108 SQUARE
CONDITIONS	FEET PER HEN

OMNIVOROUS,

FEED INCLUDING GRAIN,

PLANTS, INSECTS

LAND	SUSTAINABLE PRACTICES
MANAGEMENT

NETWORK	DIRECT RELATIONSHIPS
WITH FAMILY FARMS

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OUR MODEL ALLOWS US TO DELIVER QUALITY AT SCALE

Network of more than

300 Family Farms

WE

AGGREGATE

PRODUCTS

FROM FARM

NETWORK

EGG CENTRAL	WE DELIVER
DIRECTLY TO
ECS	CUSTOMERS
STATION
Wash	AND THROUGH
Springfield, MO
Grade	DISTRIBUTORS
WASH, GRADE, PACK,
Pack
SHIP, QUALITY
CONTROL
Ship
Quality control
REMOTE
WORKFORCE
HQ
Across the United States
Branding
BRANDING, SELLING,
Selling
SUPPORTING
Supporting

National Distribution (Products in ~24,000 Retail Stores)

RETAIL

FOODSERVICE

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SUPPLEMENTAL CHARTS

BENEFITS OF A BRAND: GROSS MARGIN STABILITY

Less Volatile Gross Margin Post Latest Avian Influenza Outbreak

Source: Vital Farms and Cal-Maine Company Filings

8

MARKET SHARE GAINS CONTINUE

Vital Farms Egg Dollar and Volume Share Moving Higher Despite Price Gaps Widening

5	$4.87	$4.82
5
$3.99		8.0%
4
$3.48	6.6%
4

3	5.4%	5.2%

3			3.9%
	3.0%	3.2%
	2.3%
2		$2.18
2			$1.91

1	$1.16	$1.30
1
0

202120222023Q1 2024

		Premium Peer Group Price Gap		Conventional Price Gap
		Market Share (Dollars)		Market Share (Units)
Source: Egg Price Gaps from SPINS MULO and Natural Enhanced Channel, EQ Dozen ARP
Market = Mulo + Natural Enhanced + WFM
Calendar year 52 week ending periods for 2021, 2022, 2023

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

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FINANCIAL UPDATE