Presented By

Nathan Pearce

Purpose of Presentation

Diversity, Uniqueness, and Aggressive Marketing are imperative to the growth and success of a business competing for discretionary funds.Cabela’s® has utilized this approach to be a leader in the outdoor sporting goods market.

History of Cabela’s®• Founded in 1961 by Richard (Dick)

Cabela.• 1963 Jim Cabela joins business• 1987 – First Retail Store in Kearney, NB.• 1988 – Online store started• 2004 - Company became publicly

traded on New York Stock Exchange• 2009 – Thomas Milner joins company as

President/CEO

Introduction

• One of the World’s Largest Direct Marketers of Hunting, Fishing, Camping, and Outdoor Merchandise

• 30 Retail Stores in 22 States and 1 in Canada

• Recognized as the “World’s Foremost Outfitter®”

• Known as the Disneyland of Outdoors Sports Stores –Theme Stores range from 35,000 to 247,000 square feet.

• Attract over 4 million visitors per year to some of their stores. It is estimated that 50% drive over 100 miles to visit.

Unique Stores

• Destination Stores – Each Store has its’ own theme

• Product Line for each store varies based on geographic location and customer preference

• Educational and Entertainment Attractions• Growth Centers for the area they are

constructed in.

Uniqueness

Cabela’s Core Values

• Superior Customer Service• Integrity and Honesty• Quality Products and Services• Respect for Individuals• Excellence in Performance

Primary Competitors

Total Revenue for 2001-2010 in Billions

$0

0.5

1

1.5

2

2.5

3

20012002200320042005200620072008200920102011

Financial Highlights

Year 2010 2009 2008Total Revenue $2.67 Bil. $2.63 Bil. $2.56 Bil.Gross Profit $1.09 Bil $1.03 Bil. $1.02 Bil.Gross Profit Margin 40.8% 39.1% 39.8%Net Income $121 Mil. $92 Mil. $83 Mil.

The company continued to make a profit even during poor economic years.

Cabela’s Quarterly Stock History

1Q/082Q/08

3Q/084Q/08

1Q/092Q/09

3Q/094Q09

1Q/102Q/10

3Q/104Q/10

1Q/112Q/11

3Q/11

10/14/20110

5

10

15

20

25

30

14.1611.0112.08

5.839.11

12.2513.3414.2617.49

14.14

18.9821.75

25.0127.15

20.4923.69

Series 1

Series 1

Cabela’s Revenues are Derived from 4 Areas Retail Store Sales Direct Market Salesa) Catalogb) Internet Financiala) World’s Foremost Bankb) Cabela’s Club Visa card Othera) Outdoor Adventuresb) Trophy Properties LLCc) Gun Libraryd) TV and Video Contracts

Sources of Revenue

Multi-Channel Mix of Revenue

RetailDirectFinancialOther

Retail 53%Direct 37%Financial 9%Other 1%

2010 Merchandising Mix

Sales

Hunting Gear and EquipmentClothing and FootwearFishing and MarineCamping and EquipmentGifts and Furnishing

Hunting Gear and Equipment 40%

Clothing /Footwear 28%

Fishing and Marine 13%

Camping Equipment 10%

Gifts and Furnishing 9%

Cabela’s Strategic Focus • Focus On The

Customer• Improve

Merchandise Performance

• Retail Profitability• Retail Expansion• Direct Channel

Growth• Grow Cabela’s CLUB

Visa Program

Summary

• Cabela’s has shown growth is possible in discretionary markets even during a bad economy.

• Unique stores and products, diversity in business segments, and aggressive marketing all contribute to growth and sustainability in the discretionary market.

Any Questions?