Turning Point Brands : Investor Presentation Q1 2024

Turning Point Brands (NYSE: TPB)

Investor Presentation

Q1 2024

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DISCLAIMER

FORWARD LOOKING STATEMENTS

This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, actual events may differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause these differences include, but are not limited to, the factors set forth in "Risk Factors" included in Turning Point Brands, Inc. (the "Company", "we", "our", "us", or "TPB") annual report on Form 10-K and other reports filed with the Securities and Exchange Commission from time to time. Any forward-looking statement made by TPB in this presentation has been prepared in good faith and, where applicable, is based on estimates, assumptions and analysis that we believe, as of the date hereof, provide a reasonable basis for the information contained herein. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict these events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.

This presentation includes industry and market data derived from internal analyses based upon publicly available data or proprietary research and analysis, surveys or studies conducted by third parties and industry and general publications, including those by the Management Science Associates, Inc. ("MSAi") and Nielsen Holdings, N.V. ("Nielsen"). Third-party industry and general publications, research, surveys and studies generally state that the information contained therein has been obtained from sources believed to be reliable. Although there can be no assurance as to the accuracy or completeness of the included information, we believe that this information is reliable. While this information has been prepared in good faith and we believe our internal analyses provide a reasonable basis for the information contained herein, they have not been verified by any independent sources. Any such data and analysis involve risks and uncertainties and are subject to change based on various factors, including those set forth in "Risk Factors" included in TPB's annual report on Form 10-K and other reports filed with the Securities and Exchange Commission from time to time.

NON-GAAP RECONCILIATION

This presentation includes certain non-U.S. generally accepted accounting principles ("GAAP") financial measures, including EBITDA, Adjusted EBITDA and Net Debt. Such non-GAAP financial measures are not in accordance with, or an alternative to, financial measures prepared in accordance with GAAP. Please refer to the Appendix of this presentation for a reconciliation of EBITDA and Adjusted EBITDA to net income and Net Debt to Debt. To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or GAAP, we use non GAAP financial measures, including EBITDA, Adjusted EBITDA and Net Debt. We believe EBITDA and Adjusted EBITDA provide useful information to management and investors regarding certain financial and business trends relating to financial condition and results of operations. Adjusted EBITDA and Net Debt are used by management to compare performance to that of prior periods for trend analyses and planning purposes and is presented to our board of directors. We believe that EBITDA and Adjusted EBITDA are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance.

Non GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. EBITDA and Adjusted EBITDA exclude significant expenses that are required by GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate these non GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure.

Turning Point Brands (NYSE: TPB)

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COMPANY OVERVIEW

Turning Point Brands (NYSE: TPB)

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TPB: A Unique Consumer Products Growth Company

	Segment Comprises
	Majority of Profit Pool and
#1 Premium and Overall	Benefits from Secular
Rolling Paper Brand in the U.S.	Growth Trends in
and Canada and #1 in MYO	Cannabinoid Consumption
Cigar Wraps1

#1 Loose Leaf Chew

and Leading MST Value

Brand1

Turning Point Brands

9% 4-Yr EBITDA2 CAGR

Continue to improve

capital structure, invest in our business, return capital to shareholders

Source: Per MSAi as of 1Q24

For period ending FY2023. See "Non-GAAP Reconciliation" in Disclaimer.

Significant Opportunity to Participate in the growing Modern Oral Category with a

differentiated offering

CapEx ~1.5% Sales

average 2019-2023

Asset-light Business

Model and Recession

Resistant Products Drive

Stable Cash Flow

(NYSE: TPB)

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TPB is a Consumer Products company that markets strong brands

BROAD PORTFOLIO OF ICONIC AND EMERGING BRANDS

Turning Point Brands (NYSE: TPB)

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Efficient Manufacturing, Supply & Distribution Model

Turning Point Brands (NYSE: TPB)

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Powerful Distribution Infrastructure

• Extensive Distribution Network and Data Driven Sales Organization
• North American retail presence that reaches over ~215,000 outlets + B2C online sites

National	Regional	Product	B2C	B2B
Distribution	Sales Teams	Sales Teams	Distribution	Distribution

National sales team	Regional sales team	Dedicated product	E-commerce sites selling	Online B2B platform
selling to over 85,000	selling to over 95,000	sales teams	direct to consumers on	reaching alternative
national chain stores	independent convenience		product specific platforms	channel distributors and
	stores		and online marketplaces	stores
			(eg. Amazon and eBay)
			zigzag.com	wholesale.zigzag.com
			zigzag.ca
			frepouch.com

Turning Point Brands (NYSE: TPB)

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TPB Business Segments

	Zig-Zag Products	Stoker's Products
	Rolling papers and Make-Your-Own ("MYO") cigar wraps	Loose leaf chewing tobacco, moist snuff tobacco, and white
		nicotine pouches
LTM Sales1	$185mm	$147mm

Key Brands

Turning Point Brands

Strategic Priorities

• Sustainable growth
• Capture growth in cannabinoid consumption
• Drive recently launched product offerings and expand penetration in e-commerce and alternative channels (head shops, dispensaries)
• Evolve product portfolio to enhance consumer experience

• Capitalize on strong growth in Moist Snuff Tobacco and stability of tobacco chew
• Stoker's: the leading value brand in tobacco chew with a long runway for growth in MST
   "Great dip at a fair price"
• Growth predominantly driven by same store sales with opportunity for further expansion and distribution gains
• FRĒ white nicotine pouch presents attractive opportunity in a large and growing market

(NYSE: TPB)

Source: LTM Period Ended 3/31/24

Excludes vapor distribution business which was contributed in Q4 2022 to Creative Distribution Services, a new wholly-owned unrestricted subsidiary of TPB.

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Zig Zag Products: Iconic Brand with Leading Market Share

About Zig-Zag	Papers	Wraps	New Product Launches
Embedded into pop culture	#1 premium and overall	Market leader in MYO cigar	Continued roll-out of paper
with a storied history that	rolling paper brand sold in	wraps with a majority share	cones, unbleached and hemp
dates over 140 years	the U.S.1 and Canada2	of the market 1	rolling papers along with new
			product introductions

#1 Brand

Zig Zag owns ~34%1 of the rolling paper market in the US and a majority of the cigar wraps market

Source: Per MSAi as of L12M ending 1Q24; Management estimates

Turning Point Brands (NYSE: TPB)

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Zig Zag Products: Continued Profit and Margin Growth

Growth initiatives focused on new product introductions and channel expansions aligned with secular

market growth trends

Net Sales ($M)

Adjusted Gross Profit ($M)

	$190		$185	$107	$106
$176		$180	$103	$101

$78

$133

$109	$59

2019 2020 2021 2022 2023 LTM Q1 242019 2020 2021 2022 2023 LTM Q1 24

Figures are $'s in millions

Growth initiatives have fundamentally changed the growth profile of the segment over the last four years

Turning Point Brands (NYSE: TPB)

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