My presentation on Marketing in Foreign Country: What you can't transfer from the US.

2. Safe Harbor
All statements made during this presentation, other than statements of historical fact, are forward-looking statements. The words
“may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “goal”, “target”, “should,” “likely,” “potential,” “continue,” “project,”
“forecast,” “prospects,” and similar expressions typically are used to identify forward-looking statements. Examples of such forward looking statements
within this presentation include statements relating to: our perception of the contact lens and eyeglasses industry or market and anticipated trends in
those markets in any of the countries in which we do business; our anticipated business operations and implementation of strategies; customer
perceptions of and responses to our business and strategy; the effect of the current economic climate on our business and consumer behavior; the
results of further investments in our retail brands; opportunities presented by our customer database; the extent to which our business will benefit from
consumers seeking lower cost alternatives; our expected results in the eyeglasses business; and our ability to address challenges and opportunities
resulting from current economic conditions.
Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about our business and the
industry and markets in which we operate. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and
assumptions which are difficult to predict. Assumptions underlying our expectations regarding forward-looking statements or information contained in this
presentation include, among others: that we will maintain our position in the markets we operate in and expand in a favorable manner; that we will have
sufficient capital to continue making investments in advertising and personnel to support our business and new product lines, including our prescription
eyeglass business; that we will be able to generate and maintain sufficient cash flows to support our operations; that we will be able to establish and/or
maintain necessary relationships with suppliers; and that we will retain key personnel. The foregoing list of assumptions is not exhaustive.
Forward-looking statements or information are only predictions. Our actual future results or performance may be materially different due to a number of
factors. These factors include, but are not limited to: changes in the market; potential downturns in economic conditions; consumer credit risk; our ability
to implement our business strategies; competition; limited suppliers; inventory risk; disruption in our distribution facilities; mergers and acquisitions;
foreign currency exchange rate fluctuations; regulatory requirements; demand for contact lenses and related vision care products; competition and
dependence on the internet and other risks detailed in our filings with the Canadian securities regulatory authorities. Reference should be made to the
section entitled “Risk Factors” contained in our most recently filed Annual Information Form dated January 28, 2011 as filed on SEDAR, for a detailed
description of the risks and uncertainties relating to our business. These risks, as well as others, could cause actual results and events to vary
significantly. Accordingly, investors should not place undue reliance on forward-looking statements and information, which are qualified in their entirety
by this cautionary statement. These forward-looking statements are made as of the date of this presentation and we expressly disclaim any intent or
obligation to update these forward-looking statements, unless we specifically state otherwise and except as required by applicable law.
Our financial statements are prepared in accordance with Canadian GAAP and all figures presented are in Canadian Dollars unless otherwise stated.
We also present non-GAAP measures, such as Adjusted EBITDA, the number of orders shipped and the reorder rate, which is defined as the percentage
of orders in the quarter shipped to customers that we estimate have ordered from us in the past. You should refer to our securities filings for more
information on these non-GAAP measures. Coastal Contacts’ securities filings, including its Annual Information Form, Management Discussion and
Analysis and Financial Statements are available on www.sedar.com or at www.coastal.com.

3. Contents
• Company Overview
• Our Footprint
• What’s Important
• Facebook Learnings
• Other Learnings
• A “Thank You for Listening”
@macknuttie

4. Brand Promise
THE BETTER WAY TO BUY
EYEWEAR
@macknuttie

5. Core Values
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6. Change the View Project
FOR EVERY PAIR OF GLASSES PURCHASED WE GIVE SIGHT, PROTECTION OR HEALTH
SIGHT
Providing eyeglasses to
restore vision around the
world
PROTECTION
Providing UV protective
sunglasses shields our eyes
from harmful UV rays
HEALTH
Providing Vitamin A tablets to
children can help prevent and
reverse blindness
@macknuttie

7. CONTACT LENSES EYEGLASSES
TTM Jan 31, 2013 Revenue¹ $152.6 million (CAD) $51.5 million (CAD)
% of Total Revenue 75% 25%
Overview
• ~15,000 SKUs
• Annuity revenue model
• +2,000 branded & private label frames
• Manufactured & delivered 2+ million
pairs to-date
Markets Served U.S., Canada, Europe & Asia-Pacific
Example Brands Offered
Sample Private Labels
% Orders Private Label 5% 70%
Company Overview
NASDAQ: COA
@macknuttie

8. Continued Growth
Product Mix
$31.2
$67.5
$81.0
$102.2
$118.8
$129.8 $132.8
$143.5 $148.2 $152.6
$9.1
$19.1
$39.2
$47.9
$51.5
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 TTM @
Jan '13
Glasses
Contacts
87%
78% 76% 75%
13%
22% 24% 25%
FY10 FY11 FY12 TTM
GL
CL
@macknuttie

9. Global Customer Database
• Global diversification
• U.S. fastest growing market
• Fuelled by investment in glasses
marketing and customer acquisition
2,000,000
2,800,000
3,344,000
4,333,000
4,586,000
As of FY09 As of FY10 As of FY11 As of FY12 As of Jan 13
@macknuttie

10. Global Footprint
@macknuttie

11. In The News
• Over 200 million Coastal.com impressions in 2012
– Key focus is to target Fashion, Business, Tech & Mass Media outlets with tailored
messaging
– Continue to drive coverage of our brand through traditional PR efforts and product
seeding to key influencers
@macknuttie

12. Customer Focus - NPS

13. Customer Needs
Value
 Same products discounted up to 50% for eyeglasses & up to
20% for contact lenses versus typical traditional retailers
Service
 Superior customer service
 Free shipping on virtually all products
 No hassle 366 day return policy
Selection
 ~15,000 contact lens SKUs
 Over 2000 eyeglasses
Quality
 Top quality branded & private-label selections manufactured
in state-of-the-art facilities
Turnaround Time
 Typically shipped same day of order
 48 hour fulfillment on 93% of eyeglasses
Disruptive Model in Large, Growing & Fragmented Industry
@macknuttie

14. Strong Value Proposition = High Customer Satisfaction
Strong Value
Proposition
Coastal.com
NPS Score
at 78%³
1) Free delivery on virtually all products.
2) Source: Bain & Company Consumer Survey, 2012. Competitor data as of Oct 2010 and is the most current data publically available.
3) Coastal NPS data calculated as a three month trailing average as of Jan 2013.
Simple
Online
Ordering
Great
Price
Broad
Selection
Rapid
Turn-
around
Exceptional
Customer
Service
Free
Delivery¹
No Hassle
Returns
@macknuttie

15. The World is Flat, but It’s Not That Flat

16. Leader in Social Media
Ranked #3 on
Internet retailer
Social Media
Top 300
@macknuttie

17. Leader in Social Media
We could talk about “social media”, but that could take a while
@macknuttie

18. Real Facebook Focus
• US has largest fan base
• In every country, we maintain most
fans in competitive set
• We believe our FB fan base is a
competitive advantage
1,015,000
500,000
160,400
56,600
@macknuttie

19. Global Customer Fanbase
• 4X as many FB fans as 2nd place in
optical
• First optical fan page in the world to
reach 1mm fans
1MM
0
@macknuttie

20. Global Customer Fanbase
• 8X as many FB fans as 2nd place in
optical
• By far, largest online seller of
glasses & contact lenses
• Home court advantage
500K
0
@macknuttie

21. Global Customer Fanbase
• 7X as many FB fans as 2nd place in
optical
• Market is growing very well for us
• Such a huge price discrepancy
allows us offer great value
160K
0
@macknuttie

22. Global Customer Fanbase
• 27% more FB fans than 2nd place in
optical
• Driving FB business use cases
57K
0
@macknuttie

23. Direct Customer Feedback
@macknuttie

24. Key Facebook Learnings
• Nothing close to as targeted for marketers
• Constant changes make it difficult to stay ahead
• As FB releases more ad units, FB users feel
spammed
• Find the balance between engagement posts
and sales posts
• Find something that works and push hard
• Make sure you’re ready for mobile traffic
@macknuttie

25. Investment in mobile
25% to 40% of all traffic on site is coming from a smartphone or tablet.
• FB often sees up to 60% of traffic on mobile
@macknuttie

26. Key Learnings by Region
• US - FB
– Customers/Fans will tell you the good and the bad!
– Having a strategic relationship with FB has allowed us to be
in many beta tests
• eCommerce launch partner of FB Offers
– There was early arbitrage leverage, but that is diminishing
– Far and away #1 reason fans like us is for early notification of
sales & discounts
@macknuttie

27. Key Learnings by Region
• US - Other
– 18% online penetration for contacts, but <3% for glasses
– Owned lab
• Fastest delivery
• Rx glasses, progressives, Transisions ®, Rx sunglasses, contacts
– Very price competitive with a lot of noise
– Retargeting is effective, but you need balance
– Email database segmentation is an advantage given our
database size
– Great content is driving engagement and SEO impact
@macknuttie

28. Key Learnings by Region
• Canada - FB
– Our fans tend to LOVE us!
– Fans get vocal if they feel heavy media buying becomes
“spammy”
– Not as engaged as the US
– Very influenced by the US, so it can be difficult to prove our
Canadian-ness
@macknuttie

29. Key Learnings by Region
• Canada - Other
– Real market saturation
• 5th largest online advertiser based on impressions, ahead of Canada’s
largest telecom and bank brands
– Price is less relevant given competitive set
– Legacy advertising deals have been a benefit
– Maximize segmentation of large database of customers
– Private label contacts have been a success
@macknuttie

30. Key Learnings by Region
• Australia - FB
– Not very engaged with businesses on FB in general
– Not comfortable with new ad units FB rolls out (could be that
we tend to be the beta partner)
– Love calling out if we slip up on local vernacular
• Best/Worst example is when a fan called us “F*&%^$@! WANKERS!”
– There still seems to be more supply than demand in FB,
which is good for marketers!
@macknuttie

31. Key Learnings by Region
• Australia - Other
– Media is EXPENSIVE
– Australians want to support local
• Moved regional GM to Sydney
• Distribution Center
• Australians LOVE local influencers
• Possible retail locations
– Seasonal impact can make you look dumb
• Run relevant media and messaging
– Huge price discrepancies allow us to show even greater
value
@macknuttie

32. Key Learnings by Region
• Japan - FB
– While FB is fastest growing social network, it’s penetration is
24.5% (2nd to Mixi at 26.1%)
– Male dominant and use as a business tool (such as LinkedIn)
– Hesitant to post pictures of themselves, but are very open to
pets (and food)
– There was early arbitrage leverage, but that is diminishing
– Less engaging vs other regions we operate in
@macknuttie

33. Key Learnings by Region
• Japan - Other
– Over 60% need corrective eyewear
• Because of that, everyone sells glasses
– Strict rules on where you can advertise
• Yahoo! Has 55% of SEM and doesn’t allow
• No data feeds
– Very price competitive
– Email segmentation seems to be rarely done
– Exchange rate can have a real impact
@macknuttie

34. How Do You Break Through?
• Low market adoption
– Just over 2% of people buy their glasses online
• High CPA
– Search, display, direct mail, etc
• Noisy marketplace
• How do you break through the clutter?
• BTW, use code FIRSTPAIRFREE
– Be sure to share this
@macknuttie

35. I’ll Leave You With That
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