Sleep country roadshow presentation - updated as at august 31 2018

1. Management Presentation
A Confidential Presentation
August 2018

2. Disclaimers
2
Forward-looking Information
This presentation, including, in particular, under the headings entitled “Stable, long-term growth”, “Key drivers of SSS growth”, “Roadmap to growth – Increase accessories sales”, “Roadmap to growth
– Add stores in existing, satellite and new markets”, “Attractive financial model results in strong cash flow conversion”, “National scale has economic benefits”, “Regional store density adds profitability
and barrier to entry”, Select Financial Highlights and Growth Targets” and “Investment Highlights”, contains forward-looking information and forward-looking statements which reflect the current view of
management with respect to the Company’s objectives, plans, goals, strategies, outlook, results of operations, financial and operating performance, prospects and opportunities. Wherever used, the
words “may”, “will”, “anticipate”, “intend”, “estimate”, “expect”, “plan”, “believe” and similar expressions identify forward-looking information and forward-looking statements. Forward-looking information
and forward-looking statements should not be reads as guarantees of future events, performance or results, and will not necessarily be accurate indications of whether, or the times at which, such
events, performance or results will be achieved. All of the information in this presentation containing forward-looking information or forward-looking statements is qualified by these cautionary
statements.
Forward-looking information and forward-looking statements are based on information available to management at the time they are made, underlying estimates, opinions and assumptions made by
management and management’s current good faith belief with respect to future strategies, prospects, events, performance and results, and are subject to inherent risks and uncertainties surrounding
future expectations generally. Such risks and uncertainties include, but are not limited to, those described in the Company’s 2017 Annual Information Form (the “AIF”) filed on March 1, 2018. A copy of
the AIF can be accessed under the Company’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. Additional risks and uncertainties not presently
known to the Company or that the Company currently believes to be less significant may also adversely affect the Company.
The Company cautions that the list of risk factors and uncertainties described in the AIF is not exhaustive and that should certain risks or uncertainties materialize, or should underlying assumptions
prove incorrect, actual strategies, prospects, events, performance and results may vary significantly from those expected. There can be no assurance that the actual strategies, prospects, results,
performance, events or activities anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company. Readers
are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking information and forward-looking statements and are cautioned not to place undue reliance on
such information and statements. The Company does not undertake to update any such forward-looking information or forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable laws.
The Company prepares its financial statements in accordance with IFRS. In order to provide additional insight into the business, to provide investors with supplemental measures of its operating
performance and to highlight trends in its business that may not otherwise be apparent when relying solely on IFRS financial measures, the Company has also provided in this MD&A certain non-IFRS
measures, including “Same Store Sales” or “SSS”, “EBITDA”, “Operating EBITDA”, “Operating EBITDA Margin”, “Adjusted Net Income” and “Adjusted EPS” each as defined below. These measures
are provided as additional information to complement IFRS measures by providing further understanding of the Company’s results of operations from management’s perspective. Management also
uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of
management compensation. The Company also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.
Readers are cautioned that these non-IFRS measures are not recognized under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be comparable to
similarly titled measures presented by other publicly traded companies. Accordingly, they should not be considered in isolation nor as a substitute for analysis of the Company’s financial information
reported under IFRS. See below for further details concerning how the Company calculates these non-IFRS measures and for reconciliations to the most comparable IFRS measures.
Non-IFRS Measures and Retail Industry Metrics

3. Sleep Country
3
David Friesema Robert Masson Stewart Schaefer
Chief Executive Officer
Chief Financial Officer
& Corporate Secretary
Chief Business
Development Officer

4. Investment Highlights
4
The Leading Specialty Mattress Retailer in Canada
Best-in-Class Retailer Driven by Superior Strategy and Execution
Clear Growth Strategy
Attractive Financial Model with Strong Cash Flow Conversion
Compelling Industry Fundamentals
Experienced and Committed Management Team

5. Industry Fundamentals
Stable Growth – Canadian Market
5
(1) Source: Based on survey of the 10 largest mattress manufacturers in Canada.
 Unit demand in Canada has grown at only 0.6% CAGR over the past 13 years and 0.9% CAGR since 2009. AUSP has driven most of the growth.
 Necessity purchase not a fashion item; recurring demand driven by 10-12 year replacement cycle, so even during an economic downturn sales are typically deferred and not lost
 Consumer preferences evolving toward premium quality, larger mattresses given growing health awareness and preference for high-quality sleep
 Price increases due to inflation are typically passed through to consumers
Canada Mattress and Foundation Wholesale Sales (1)
525.9
568.1
605.6 629.8 621.7
551.5 569.1 587.7
623.8
661.5 665.2
697.5
744.9 761.0
0
100
200
300
400
500
600
700
800
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
$CAD(Millions)
Wholesale Gross Dollar Value
INCREASE 8.0% 6.6% 4.0% -1.3% -11.3% 3.2% 3.3% 6.1% 6.0% 0.6% 4.9% 6.8% 2.2%
INCREASE 6.1% 4.1% 4.8% 0.0% -12.9% 4.4% 4.2% 2.2% 2.2% 0.3% -2.5% 2.0% -5.5%
206.8 212.6 217.7 216 213.1 217.1 214.6 212.7 221 229.2 229.9
247.1
258.8
279.7
0
50
100
150
200
250
300
350
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
AvgWholesaleSellingPrice($CAD)
Wholesale Average Unit Price
INCREASE 2.8% 2.4% -0.8% -1.3% 1.9% -1.2% -0.9% 3.9% 3.7% 0.3% 7.5% 4.7% 8.1%

6. The Leading Specialty Mattress Retailer in Canada
6
 259 stores and 16 distribution centers across 9 provinces (1)
 Has opened 121 stores since the beginning of 2007
 Only specialty mattress retailer with a national and regionally diverse footprint
 Estimated national market share of approx. 25%
(1) Store count as of August 31, 2018.
BC
AB
SK
MB
ON
QC
NL
NB
PE
NS
42
34
6
7
104 1056
Sleep Country's National Footprint (# of stores)
LTM (C$ millions)
Sales $610.1
Operating EBITDA $103.7

7. Best-in-Class Retailer Driven by Superior Strategy and Execution
7
“Best-in-Class” Retailer
Strong Brand Recognition
1
Unrivalled In-Store Customer
Experience
2
Highly Trained and Dedicated
Workforce with a Strong
Culture of Customer Service
4
Superior Home Delivery
Experience and Ongoing
Customer Relationships
3

8. Differentiated strategy has delivered strong results and momentum
8
Sleep Country Quarterly Sales Growth
(1)
(1) Source: Company report. See ‘‘Non-IFRS Measures and Retail Industry Metrics”.
1.3%
9.1%
11.1%
10.2%
10.5%
7.7%
13.4%
12.9%
11.7%
12.2%
7.7%
9.6%
11.9%
7.5% 7.3%
9.3%
5.1%
4.4%
5.5%
13.1%
14.7%
13.1%
12.6%
10.6%
17.7%
18.3%
17.1% 17.3%
12.5%
13.7%
15.8%
10.7%
10.1%
13.4%
8.9%
8.2%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2014 2015 2016 2017 2018
Same Store Sales Growth Total Sales Growth

9. 9
Roadmap to Growth - SSS Growth
Increase Traffic
 Increased marketing investment
 Expand messaging
 Increase market share
Increase Conversion
of Shoppers to Buyers
 Continued focus on hiring the best people
 Additional training initiatives
Higher AUSP
 Continued shift to higher quality mattresses
 Larger sizes are increasing in popularity
Expand Accessory
Sales
 Expand and improve product lines
 Additional marketing messaging
 Enhanced training
 Launch of eCommerce channel in May 2017
 More details on page 11
Enhanced Store
Design
 Contemporary design creates bright and welcoming atmosphere
 Greater emphasis on accessory displays
 More details on page 14

10. $53
$120
2012 2018
Roadmap to Growth – Expand Accessories Sales
10
 Bedframes
 Pillows
 Mattress pads
Key Accessories Sleep Country Accessories Revenue
(1)
(C$ millions)
 Sheets
 Duvets
 Headboards and
Footboards
Opportunity to capture market share in an estimated $0.8 to $1 Billion
highly fragmented yet addressable market in Canada
(1) Source: Company report.
16.1% CAGR

11. e-Commerce with mattress in-a-box
and accessories.
Provide our customer with a
seamless experience across
both channels.
Drive new traffic by targeting
a different demographic. The creation of a new
revenue channel.
Continue to drive traffic to our
stores.
11

12. Bloom, our exclusive collection of mattress in a box that ships
for free right to your door….
12
$995 $795
$595 $395

13. Throws
Throws
Online Accessories Expansion – Testing new accessory product categories online
before rolling them out to our stores.
Robes
Snap Beds
13

14. Roadmap to Growth – Enhanced Store Design
14
As of August 31st, 138 stores representing 53% of our total stores are in our enhanced store design, which
continue to achieve higher SSS growth relative to our legacy stores.

15. 10
13
5
13
11
12
17
2012 2013 2014 2015 2016 2017 2018*
Store Growth
Roadmap to Growth – Add New Stores
15
Significant white space is available given our low store density
Target to open at least 17 stores in 2018 and 8 to 12 new stores per year thereafter
 Modest net new store investment of approximately $400,000 comprising of capex and working capital investment
 Typically, new in-fill and satellite stores are cash flow positive within 6 and 12 months, respectively
Average
11.6
* Full year guidance 2018.

16. Attractive Financial Model – Recent Results
16
Sales momentum driving increasing EBITDA
Strong historical sales growth through new store openings and same store sales growth
$332.6
$353.9
$396.1
$456.2
$523.8
$588.0
$610.1
$-
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 2018 LTM
Total Sales
38.4 39.4
50.6
69.1
85.0
99.8
103.7
11.5%
11.1%
12.8%
15.2%
16.2%
17.0% 17.0%
9.0%
11.0%
13.0%
15.0%
17.0%
20
30
40
50
60
70
80
90
100
110
2012 2013 2014 2015 2016 2017 2018 LTM
Operating EBITDA
EBITDA EBITDA Margin

17. Attractive Financial Model - Low Capital Expenditure Model
17
Maintenance capital expenditures have averaged 1% of revenue from 2012 to 2018
(1) Source: Company report.
Sleep Country Maintenance and Growth Capital Expenditures (% of sales)
(1)
1.3% 1.2%
0.5% 0.8% 1.0% 0.8%
1.9%
1.5% 1.9%
1.3%
2.4%
2.5%
4.1%
2.8%2.9%
3.1%
1.8%
3.2%
3.5%
4.9%
4.6%
2012 2013 2014 2015 2016 2017 Q2 2018
Maintenance Growth

18. Attractive Financial Model - Strong New Store Economics
18
Stores Generate Cash on Cash Payback < 1.5 Years
Representative New Store Investment
($ in thousands)
Average
Investment
Buildout and Equipping Cost Floor
Sample Inventory
$430
50
Less: Tenant Reimbursement
480
(80)
Cash Requirement, Net $400
New Store Results
($ in thousands) Year 1
Sales $1,200 - $1,500
Store 4-Wall Profitability(1)
% of Sales
$334 - $417
27.80%
Annual Cash on Cash Return 83% -104%
Store 4-wall profitability drives improving leverage over market-level costs as store penetration increases
(1) Based on 2017 gross profit margin after taking in to account 3rd party finance charges and mattress recycling cost.

19. Attractive Financial Model – Conservative Leverage
19
Capital structure provides financial flexibility to grow the business, while providing returns to shareholders
(C$ millions) As at June 30, 2018
Revolving Credit Facility $109.4
Finance Leases $3.2
Total Long Term Debt $112.7
Less: Cash on Hand ($17.0)
Net Debt $95.7
Net Debt / LTM Operating EBITDA 0.92x
Outstanding Lease Liabilities $215.6
Net Debt / EBITDAR 2.26x

20. Attractive Financial Model – Strong Free Cash Flow
20
Negative working capital model, quick ROI on new stores and low leverage provides flexibility for
investments and return to shareholders
As at June 30, 2018
(C$ millions)
Operating EBITDA(1) 103.7
CAPEX(1) 26.5
Interest(2) 4.0
Taxes(3) 23.1
Free Cash Flow available for dividends 50.1
Number of shares outstanding 37.01 million
Dividend - $0.185 per quarter 27.4
Payout Ratio 54.7%
(1) Based on last 12 months ended June 30, 2018.
(2) Pro-forma based on year to date June 30, 2018.
(3) Pro-forma based on 26.96% tax rate.

21. Select Financial Highlights(1)
21
(1) See “Non-IFRS Measures and Retail Industry Metrics”.
(2) Excludes SG&A expenses added back in the reconciliation of EBITDA to Operating EBITDA.
(C$ million unless otherwise stated) 2016 2017 Q2 2017 Q2 2018
Revenue $523.8 $588.0 $132.9 $143.7
Same Store Sales Growth 10.0% 8.8% 7.5% 4.4%
Net New Stores 11 12 5 6
Gross profit $151.4 $175.0 $37.4 $41.2
Gross Margin 28.9% 29.8% 28.1% 28.7%
General & Administration Expenses(2) $66.4 $75.1 $17.2 $18.3
% of Sales 12.7% 12.8% 12.9% 12.8%
Operating EBITDA $85.0 $99.9 $20.2 $22.9
Operating EBITDA Margin 16.2% 17.0% 15.2% 15.9%
Adjusted Net Income $51.1 $61.9 $11.9 $13.4
Adjusted Earning per Share 1.36 1.65 0.32 0.36

22. Proven Management Team committed to growing the business and
shareholder value
22
Member
Years at
Sleep Country
Relevant
Experience
Biography
Dave Friesema
 Chief Executive Officer
20+ 20+  Held numerous senior positions at Sleep Country including Head of Sales, General
Manager and Chief Operating Officer
 Chairman of the Better Sleep Council Canada
 Helped establish and manage mattress retail organizations in the United States
Robert Masson
 Chief Financial Officer and
Corporate Secretary
5 20+  Chief Financial Officer of Second Cup from 2009 to 2013
 Prior to joining Sleep Country, Robert had extensive management experience with several
other public and private companies including, IBM Canada, Manchuwok, Ernst & Young,
Deloitte & Touche and Sappi
Stewart Schaefer
 President, Dormez-vous?
 Chief Business Development
Officer
12 20+  Founded Dormez-vous? in 1994; grew the business to five stores before being acquired by
Sleep Country in 2006
 In 1992, co-founded Heritage Classic Beds, a distributor of metal beds
 Commodity Broker in Chicago from 1986 to 1992, later returning to Montreal to work at
Dean Witter Reynolds and Refco Futures
Dave Howcroft
 Chief Sales Officer
20+ 20+  Created programs to consistently build, develop and motivate a first-class sales team
 Instrumental in developing and implementing various sales workshops, training programs
and sales processes
Sieg Will
 Senior Vice President, Operations
17 20+  Instrumental in development and implementation of standard operating policies and
procedures across organization
 Held senior positions with Canadian Tire and PepsiCo in the sales, operations and account
management areas
Eric Solomon
 Senior Vice President,
Merchandising and Marketing
20+ 20+  Instrumental in growing the business by increasing "top-of-mind" brand awareness
 Provides oversight to the marketing department
Stephen Gunn
 Founder & Co-Chair
20+ 20+  Co-founded Sleep Country in 1994
 Co-founded and was President of Kenrick Capital, a private equity firm
 Management Consultant at McKinsey and Company from 1981 to 1987
 Serves on the Board of Directors of Dollarama, Golfsmith International, Cara and
Mastermind Toys
Christine Magee
 Founder & Co-Chair
20+ 20+  Co-founded Sleep Country in 1994
 Senior Manager of Corporate and Commercial Lending with National Bank from 1985 to
1994
 Serves on the Board of Directors of Sirius XM Canada, Trillium Health Partners and the
Advisory Board of the Ivey School of Business

23. Investment Highlights
23
Compelling Industry
Fundamentals
 North American mattress and foundation industry is characterized by stable, long-term growth and a high degree of resiliency to economic swings
 Industry demand driven by essential nature of product and replacement cycle of 10-12 years
 Shift in consumer preference towards larger size mattresses and premium quality products
 Consumers have shifted preference towards specialty mattress retailers due to big-ticket nature of mattress purchase and lack of consumer product
knowledge
 Low vulnerability to online competition and showrooming due to highly tactile purchase decision,
The Leading
Specialty Mattress
Retailer in Canada
 Only specialty mattress retailer in Canada with a national and regionally diverse footprint
 National footprint of 259 stores and 16 distribution centres across 9 provinces
 Leading specialty mattress retailer with an estimated national market share of 25%
Best-in-Class
Retailer Driven by
Superior Strategy
and Execution
 Largest share of customer visits across Canada driven by “top-of-mind” unaided brand awareness and 20-year advertising investment
 Unrivalled in-store customer experience drives high conversion of sales, repeat business and superior sales per associate metrics
 Superior home delivery experience and ongoing customer relationships drives high customer satisfaction, repeat sales and word-of-mouth
advertising
 Highly trained and dedicated workforce with a strong culture of customer service
 Convenient and highly visible locations
Clear Growth
Strategy
 Strong same store sales growth(1) potential driven by increased mattress and accessories sales growth and continued implementation of enhanced
store design
 Opportunity to open 8-12 net new stores per year in existing, satellite and new markets
 Operating leverage on sales growth through highly scalable centralized support infrastructure
 Selectively consider strategic acquisitions that are accretive and enhance market opportunities
Attractive Financial
Model with Strong
Cash Flow
Conversion
 National scale creates economic advantages
 Regional scale optimizes economics on a per-store basis
 Negative working capital operating model facilitated by "just in time" inventory relationship with suppliers, funds growth
 Low capital expenditure requirements due to asset-light business model (~1.0% maintenance capex requirements)
 Compelling new store economics with cash payback of less than 1.5 years
Experienced and
Committed
Management Team
 Highly experienced management team with proven track record
 On average 15+ years of experience with Sleep Country and 20+ years of relevant industry experience
 Proven track record of success as a public company
 Co-founders remain committed to the business and its long-term success
(1) See “Non-IFRS Measures and Retail Industry Metrics”.

24. Description of Non-IFRS Measures and Retail Industry Metrics
24
This presentation makes reference to certain non-IFRS measures including:
“AUSP” is defined as the average unit selling price of a mattress and foundation set.
“EBITDA” is defined as net earnings (loss) from continuing operations before: (i) net interest expense and other financing charges; (ii) income taxes; (iii)
depreciation of property, plant and equipment; and (iv) amortization of other assets.
“Conversion” is defined as the number of customers who entered a store and made a purchase divided by the total number of customers who entered the store
(expressed as a percentage).
“Operating EBITDA” is defined as EBITDA adjusted for: (i) reduction in management bonuses; (ii) reduction in management compensation; (iii) certain non-
recurring items (shareholder reorganization, professional fees and customer deposit breakages and other provision); and (iv) share based compensation.
“Same Store Sales” or “SSS” is a non-IFRS measure used in the retail industry to compare sales derived from established stores over a certain period
compared to the same period in the prior year. SSS helps to explain what portion of revenue growth can be attributed to growth in established stores and what
portion can be attributed to the opening of the stores. SCC calculates SSS as the percentage increase or decrease in sales of stores opened for at least 12
complete months relative to the same period in the prior year.
“Adjusted Net Income from Continuing Operations” is used by SCC to assess its operating performance. Adjusted net income from continuing operations is
defined as net income (loss) from continuing operations adjusted for:
• share-based compensation.
“Adjusted EPS” is defined as adjusted net income from continuing operations attributable to the common shareholders of the Company divided by weighted
average number of shares issued and outstanding during the period.
These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS. They are therefore unlikely to be
comparable to similarly titled measures presented by other publicly traded companies. Accordingly, they should not be considered in isolation nor as a substitute
for analysis of the Company’s financial information reported under IFRS. For further details concerning how the Company calculates these non-IFRS measures
and for reconciliations to the most comparable IFRS measures, please see the Company's most recent management's discussion and analysis of financial
condition and results of operation filed with Canadian securities regulatory authorities and available on SEDAR at www.sedar.com.