Updated October 2015

Nasdaq: MNRO
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Forward Looking Information

Statements contained in these materials regarding Monros
expectations with respect to future operations and other
information, which can be identified by the use of forward
looking terminology, such as may, will, expect, project,
anticipate, estimate or continue or the negative thereof or
variations thereon or comparable terminology, are forward
looking statements. Several factors, including certain risks and
uncertainties, could cause actual results to differ materially from
results referred to in forward looking statements. There can be
no assurance that Monros expectations regarding any of these
matters will be fulfilled.

Who We Are

Company Overview
Largest chain of
Company-operated
undercar care facilities
in the United States
As of September 26,
2015, the Company
operated 1,029 stores in
25 states
Through Car-X
acquisition in April
2015, the Company is
franchisor to 142
franchised locations in
ten states
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Geographic Presence
MAINTAINING DOMINANCE
IN THE NORTHEASTERN U.S.

Service
Stores
Connecticut
Delaware
Florida
Georgia
Illinois
Indiana
Kentucky
Maine
Maryland
Massachusetts
Michigan
Missouri
New Hampshire
New Jersey
New York
North Carolina
Ohio
Pennsylvania
Rhode Island
South Carolina
Tennessee
Vermont
Virginia
West Virginia
Wisconsin
TOTAL

Tire
Stores

36
2

6
52
12
5
30
33
14
66
9

9
36
17

22
17
33
10
33
40
24
3
17
3
4
57

9
13
116
113
106
8
1
1
13
8
13
509

490

Total Company owned stores

as of March 28, 2015: 999

Service Mix
FY14

Gross Margin %
Brakes and Steering = +15
Maintenance and Exhaust = baseline company margin
Tires = -10

Brakes

FY16-Q2

FY15-Q2

FY15

Exhaust

Steering

Maintenance*

Tires

*Includes state inspections, lube, oil, filter, engine cooling service, scheduled maintenance and other.
Note: Monros fiscal year end is March of each year.

Competitive Advantages
Operating Model
Company-operated stores
Faster, Better, Cheaper
Centralized purchasing and distribution
Efficient marketing (database mailing, email, direct mail
and internet)
Superior customer service
Pricing power and fixed cost leverage
Low cost operator

Competitive Advantages
Customer Value Proposition
Monro establishes relationships with customers based on TRUST
Direct marketing to customers fosters repeat business and long-term
relationships
Company-operated store model enhances customer experience through:
High standards of customer care
Lower turnover of store managers
Consistent execution
Investment in business
Significant discount vs. dealer prices
Store density provides more convenience
Best price guarantee
Whats important to DIFM customers?
Source: 2014 Lang Report

High Customer Satisfaction

Monro Website

Internet Paid Ads

http://www.monro.com/Customer-Satisfaction-Rating

Industry Overview
Monro operates in $197 billion Do-It-For-Me* segment of
$246 billion U.S. automotive aftermarket industry
* Includes Replacement Tire Segment.

Service Bay Population

Changes: 1999 2013

U.S. Automotive
Aftermarket Industry
Total Bays / Mkt Share %

Do-It-For-Me:
1999 - 74.3%
2009 - 78.0%
2013 - 79.3%

(000s)

2013

Do-It-Yourself:
1999 - 25.7%
2009 - 22.0%
2013 - 20.7%

Source: 2014 Lang Report

2008

352/30.0

338/28.3

285/24.3

340/28.5

220/18.7

199/16.7

81/6.9

73/6.1

125/10.6

125/10.5

111/ 9.5

119/9.9

1,174/100

1,194/100

Source: 2014 Lang Report

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Average Vehicle Age

Average Age of Car and Light Truck on the Road

Source: November 2012 Lang Report, 2012 Wall Street Journal, June 2014
Lang Report and March 2015 The Lang Aftermarket iReport.

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Favorable Industry Trends

Nearly 250 million vehicles on road

Vehicles in operation projected to increase over 8% during 2015 - 2020
Increasing age of vehicles (11.8 years)
Number of vehicles 6 years and older expected to increase
Significant average annual miles driven per vehicle
Decreasing number of service outlets and bays
Increasing complexity of vehicles
Favorable demographics
Ability to raise prices

Headwinds :

Consumer

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Favorable Industry Trends

Growing Independent DIFM Product Share (vs. Dealers)
Light Vehicle DIFM Product Share

Cars and Light Trucks in Service

Source: APAA Aftermarket Factbook, Lang Report and Analyst estimate.

U.S. Annual Light Vehicle Sales

Source: 2012 Lang Report, Zacks.com, March 2015 The Lang Aftermarket iReport
.

Source: September 2013 Lang Report and September 2014 Lang Report

Vehicles per Service Bay

Source: October 2012 Lang Report and September 2013 Lang Report , 2014 Lang
Report.

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EPS Trends

% Change

178% 24% 17% 17% 22% 17% 12% (4)% 3% 20% 34% 35% 17% (22%) 27% 13% 10%-15%

Adjusted for three-for-two stock split paid to shareholders of record as of October 21, 2003, September 21, 2007 and December 13, 2010.
Note: Monros fiscal year end is March of each year.

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Historical Financials
(Dollars in millions except per share data)
Sales
Sales Growth (vs. prior year)
EBITDA
EBITDA Margin
Operating Income
Operating Income Margin
Net Income
Net Income Margin
EPS (Diluted)
EPS Prior Year

nd

nd

2 Quarter
2016

2 Quarter
2015

Fiscal Year
2015

Fiscal Year
2014

$239.2

$221.3

$894.5

$831.4

8.1%
$ 43.8
18.3%
$ 34.1
14.3%
$ 18.9
7.9%

7.8%
$ 37.8
17.1%
$ 28.9
13.1%
$ 16.3

7.6%
$146.4
16.4%
$109.8
12.3%
$ 61.8

13.6%
$127.7
15.4%
$ 95.3
11.5%
$ 54.5

7.4%

6.9%

6.6%

$ 0.57

$ 0.50

$ 1.88

$ 1.67

$ 0.50

$ 0.42

$ 1.67

$ 1.32

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Balance Sheet Highlights

Fiscal Q/E
September 26,
2015
Current assets

Fiscal Y/E
March 28,
2015

$184,304

$175,284

Property, plant & equipment, net

343,214

326,752

Other non-current assets

470,301

405,758

Total assets

$997,819

$907,794

Current liabilities

$155,879

$155,793

160,322
145,000

133,145
122,543

Other long-term liabilities

27,705

22,702

Total liabilities

488,906

434,183

Shareholders equity

508,913

473,611

$997,819

$907,794

38%

36%

Capital leases and financing obligations

Other long-term debt

Total liabilities and shareholders equity

Debt-to-capital (includes capital leases)

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Growth Strategy

h Increase market share through same store sales growth

h Acquire competitors cheaply
h Continue new store openings in existing markets
Approximately 12 to 20 stores per year

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Acquisitions and Opportunities

Building Tire Store Category
h

Combination of 36 acquisitions in the last 14 years

- 565 stores
- $690 million revenue
Could have up to 1,300 tire stores and 1,300 service stores in our 25 states
- Creates market dominance and pricing power
- Diversifies risk
- Expands pool of acquisition candidates at attractive prices
- Concept unique and difficult for competitors to replicate
Should afford opportunity to expand operating margins and further improve
business model
- Share inventory
- Advertising, logistics, operations
- Gross margins lower but SG&A absorption better

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Recent Acquisitions
Kramer Tire (April 2012)

20 stores in Virginia

2011 sales - $25 million

Colony Tire (June 2012)

18 stores in North Carolina

2011 sales - $25 million

Tuffy/Car-X (August 2012)

17 stores in Wisconsin (13) and South Carolina (4)

2011 sales - $9 million

Roc City Auto (October 2012)

5 stores in New York

2011 sales - $3 million

Purchased real estate for one location

Tire Barn (November 2012)

31 stores in Indiana (27), Tennessee (3) and Illinois (1)

2011 sales - $64 million

Purchased real estate for 13 locations

Ken Towery Tire and Auto Care (December 2012)

27 stores in Kentucky (24) and Indiana (3) and

Wholesale operation

2011 sales - $54 million (including Wholesale)

Distribution center located in Louisville, Kentucky

Enger Tire Center/Enger Auto Service (December 2012)

12 stores in Ohio
2011 sales - $9 million
Purchased real estate for eight locations
Tire King (December 2012)
9 stores in North Carolina
2011 sales - $11 million
Purchased real estate for four locations
Currys Auto Service (August 2013)
10 stores in Virginia (9) and Maryland (1)
2012 sales - $18 million
Purchased real estate for one location
S & S Firestone (November 2013)
4 stores in Kentucky
2012 sales - $5 million
Purchased real estate for three locations
Carl King Tire (November 2013)
6 stores in Delaware (5) and Maryland (1)
2012 sales - $10 million

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Recent Acquisitions
Lentz USA/Kan Rock Tire (June 2014)

19 stores in Michigan

2013 sales - $14 million

Purchased real estate for all locations

The Tire Choice (August 2014)
35 stores in Florida
2013 sales - $48 million
Purchased real estate for five locations
Wood & Fullerton (October 2014)
9 stores in Georgia
2013 sales - $10 million

Car-X (April 2015)

Trade name and franchise rights to 146 franchise
locations in Illinois, Indiana, Kentucky, Missouri, Ohio,
Tennessee, Wisconsin, Iowa, Minnesota and Texas
Slightly accretive in first 12 months
Kost Tire and Windsor Tire (NY, PA, MA)
(July/August 2015)
31 stores in central New York, Pennsylvania and
Massachusetts. Kost stores = 27 locations.
2014 sales - $31 million
Breakeven to slightly accretive in first 12 months

Gold Coast Tire & Auto Centers (December 2014)

9 stores in Florida
2013 sales - $9 million
Martino Tire (March 2015)
8 stores in Florida
2014 sales - $12 million

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FY16 Earnings Assumptions

Earnings estimate for FY16: $2.07 - $2.17 vs $1.88 in FY15

Q1 FY16: $.57 vs. $.52 Q1 FY15
Q2 FY16: $.57 vs. $.50 Q2 FY15
Q3 FY16: $.53 - $.58 vs. $.49 Q3 FY15
Comparable Store Sales increase of 1.5 to 2.5% for FY16;
Q1 FY16: -0.4%
Q2 FY16: 2.1%
Q3 FY16: 2.0% to 4.0%
Gross Sales approximately $955 - $970 million
Operating Margin improvement of approximately 80 basis points at midpoint of guidance
Depends upon sales and retail pricing environment
Expect tire retail pricing to improve
Need 50 basis points comparable store sales increase to offset inflation (normally 2% - 2.5%)
Tire costs declining, benefitting margins
Leverage fixed occupancy costs (included in COS) against higher sales
Improve technician productivity (Sales per Man Hour)
Improve store execution, customer experience and marketing to drive traffic and sales
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FY16 Other Assumptions

Interest Expense of $14 million
$40 million depreciation and amortization
EBITDA approximately $165 million, at midpoint
$44 million of cap-ex
$24 million in maintenance cap-ex
$20 million for new stores

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FY16 Cash Flow Priorities

hAcquisitions
q Same or contiguous markets
q Buy right
q Accretive to earnings in a reasonable timeframe
h Pay down debt

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Investment Highlights
h Largest chain of Company-operated undercar care facilities in the U.S.
h Wide breadth of product and service offerings
h Superior customer service
h Favorable industry trends
h Leading market position in Northeast, Great Lakes and Mid-Atlantic with a
presence in 25 states
h Strong balance sheet and cash flow
h Low cost operator with superior operating margins
h Significant growth opportunity through store expansion and acquisitions
h Ten dividend increases, in ten years, since initiated

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