Build-a-bear Workshop, Inc. · NYSE:BBW
Build-a-bear Workshop — Investor Presentation (December 2022)
38 slides from Build-a-bear Workshop's investor presentation, Dec 6, 2022
Slide 1: Investor Deck 2022
Slide 2: Forward Looking and Cautionary Statements
FORWARD LOOKING AND CAUTIONARY STATEMENTS ‘rte crac atamers ate, maybe corre ob, Truro steers fe pe of eel cu, eg We general ieriy these statements by words or phrases “patent” o “continue” the negative or any derivative of tha are subjet to sks and unceraiies which ‘may cause resus to citer materia
Slide 3: Executive Summary
p EXECUTIVE SUMMARY
Slide 4: Key Investor Considerations
KEY INVESTOR CONSIDERATIONS BRAND POWER: Trusted and iconic brand captures consumer zeitgeist appealing to today’s desire for personalized, shared and share-able experiences, comfort products, unique gifting, enthusiast/collectibles, and nostalgia DIRECT RELATIONSHIPS with LARGE ADDRESSABLE MARKET:
Slide 5: BBW's Journey to More!
BBW’s JOURNEY TO MORE! YEARS 2022 & moving forward as MORE! 1997 2008-2012 MORE than malls Founded in St. Louis, Challenging business (MORE than plush toys MO ae groundbreaking perio with consecutive ‘MORE than “workshops” ‘experiential mall bated ‘year of pre-taxosses MORE chad Kaas specialty child
Slide 6: BBW is Now a Diversified Company with a Highly Valued Brand
BBW IS NOW A DIVERSIFIED COMPANY with A HIGHLY VALUED BRAND 2022 Multi-channel, multi-generational experience-based brand company in diverse product categories appealing to a broad consumer demographic 1997 Mall-based plush toy retailer focused on children Select data points: [MEANINFUL DIGITAL REVE
Slide 7: Iconic Brand with Valued & Broad Demographics
Slide 8: BBW Engages at Life Moments to Create Relationships
BBW ENGA \T LIFE MOMENTS TO CREATE RELATIONSHIPS
Slide 9: BBW is Beloved
BBW IS BELOVED Well-Known Multi-Generational Emotional Trusted Extendable DESTINATION-DRIVEN OF “sere visits are os >60 % planned and the top occasion isa birthday Contributing to balanced business seasonality* few adi and? aed and Bands mJan-Mar wm Jul-Sep m Apr-Jun mi Oct-Dec ‘* First party data e
Slide 10: BBW Has Diverse and Highly Coveted Consumers
BBW HAS DIVERSE AND HIGHLY COVETED CONSUMERS Build-A-Bear appeals to a broad demographic market with strong purchasing power and brand loyalty The profile of Buil jear’s ~10 million active Bonus Club membershi interest across ages @ © Household Profile atl _ ft ro have crn gvng us reach wy been “40%
Slide 11: BBW Generates "Free" Media
BBW GENERATES “FREE” MEDIA Over 10 Billion annual media and PR impressions in 2020, 2021 and 2022 POPSUGAR. 2 Seeking Apt Bull-A-Boar Much More Ups (ara omy dates 0a Beas (eta Gee YAO! ROMPER MSNBC FOX « BUSINESS:
Slide 12: BBW is Pop Culture
BBW IS POP CULTURE Our brand is regularly mentioned on popular TV shows, movies and in celebrity news \ Mom ot pati THEORY FROM SOUTH PARK TO THE POPE, MEDIA DRIVES BUILD-A-BEAR’S TOP OF MIND AWARENESS
Slide 13: BBW Co-Brands with Leading Licenses
BBW CO-BRANDS WITH LEADING LICENSES License relationships with over 75 world-class collaborators from film, TV, art, games, sports and more support enthusiast, collectible, affinity and gifting businesses with appeal to _ expanded consumer demographics...yet BBW is a brand unto itself providing bala
Slide 14: Dynamic Multi-Channel Business Model
ote ge! re fay ze) DYNAMIC MULTI-CHANNEL BUSINESS MODEL
Slide 15: BBW Harnesses Brand Equity and Technology to Drive Growth
BBW HARNESSES BRAND EQUITY and TECHNOLOGY TO DRIVE GROWTH Experience Locations Power of the Brand and e-commerce wihtdor Build BRAND CONNECTIONS THROUGH S| (ONE-TO-ONE BRAND EQUITY ‘guest engagement to to drive additional guest DRIVE BRAND EQUITY engagement across NEW CATEGORIES, CHANNELS ‘and CONTE
Slide 16: Experience Locations Build Brand and Support E-Commerce
EXPERIENCE LOCATIONS BUILD BRAND and SUPPORT E-COMMERCE Award winning concept enjoys a >25% average contribution and virtually 100% of our experience locations were EBITDA positive Over 50 million guests enter a Build-A-Bear Workshop per year. The iconic hands-on experience builds emotional brand co
Slide 17: Experience Locations Have Diverse Formats and Models
EXPERIENCE LOCATIONS HAVE DIVERSE FORMATS AND MODELS = a) Build-A-Bear is NOT overstored, on track to open 20 new locations in 2022 including recently opened Six Flags Magic ‘Mountain and the Pro Football Hall of Fame Recently added format called Build-A-Bear Adventure includes arcade and party room
Slide 18: Business is Enhanced by Profitable E-Commerce Platform
BUSINESS IS ENHANCED BY PROFI * E-commerce strong in both US and UK * Salesforce technology expanding loyalty and digital capabilities and efficiencies in marketing and analytics across platform * Mobile-first e-commerce site updated in 03-2022 * Continued momentum with growth in consolidated digita
Slide 19: E-Commerce Growth Includes Expansion of Consumer Base
E-COMMERCE GROWTH INCLUDES EXPANSION OF CONSUMER BASE Buildabear.com PRIMARY TARGET SECONDARY > TARGET FAMILIES WITH CHILDREN
Slide 20: Diverse Digital Experiences Appeal to Variety of Guests
DIVERSE DIGITAL EXPERIENCES APPEAL TO VARIETY OF GUESTS Buildabear.com offers various online shopping experiences and p: ct options to meet the prefe ‘oducts asions and pi nces of diverse consumer segments for multiple o Guided process reflecting Gifting familiar Build-A-Bear shopping, act ‘option f
Slide 21: Digital Marketing Capabilities Driving E-Commerce Growth
DIGITAL MARKETING CAPABILITIES DRIVING E-COMMERCE GROWTH +97% increase in digital transactions from new guests DIGITAL TRANSACTIONS fa UNE Sone Digital demand +9% 2021 vs 2020 +157% 2021 vs 2019 OPTED-IN 2 EMAILUST VALUABLE FIRST PARTY DATA: Traffic driven by messaging to over 14MM opted: in email a
Slide 22: NFTs
NFTS Launched 2022 Coming 2023 BRAND POWER SUPPORTS CONTENT & ENTERTAINMENT DEVELOPEMENT ent industry, ele BUILD-A-BEAR Entertainment fe oats Os ai Coming 2023 = p= ~ — rete & aS: pe sunsnine Hootie & — eS BO J iTunes Store me Bis fed, tise
Slide 23: Brand Power Diversifies Revenue Streams and Categories
BRAND POWER DIVERSIFIES REVENUE STREAMS and CATEGORIES OUTBOUND LICENSING leverages brand power to expand into non-plush products (out of BBW’s core competency) driving margin-rich revenue and providing brand presence and products sold through thousands of additional retail doors beyond our own foot
Slide 24: Strong Financial Results
Slide 25: 2021 Financial Snapshot
2021 FINANCIAL SNAPSHOT PRE-TAX INCOME $50.7MM +$70.9MM OVER 2020 +$49.1MM OVER 2019 HIGHEST IN FIRST 25:YEAR HISTORY TOTAL REVENUES $411.5MM Delivered the highest revenue in over a decade and highest profit in company’s history even with ‘ongoing impact of global pandemic Positive momentum has cont
Slide 26: Continued Momentum in Fiscal 2022
CONTINUED MOMENTUM IN FISCAL 2022 FIRST NINE MONTHS 2022 DELIVERED RECORD-SETTING TOTAL REVENUES AND PROFITABILITY TOTAL REVENUES PRE-TAX INCOME $322.8MM | $35.7MM yo nt 021 ves Vs ($31.0MM) IN 2020** RECENTLY RAISED FISCAL 2022 GUIDANCE EBITDA RANGE $69MM- $76MM Vs $50.7MM It ‘Vs $63.01MIM IN FY202
Slide 27: Current Management Led Successful Business Turnaround
CURRENT MANAGEMENT LED SUCCESSFUL BUSINESS TURNAROUND ‘TOTAL REVENUES 2021 highest level in over a decade amines iis PROFITABLE STORES In North America ene 80% EBITDA (Over $85MM swingin profitability — aa Co $25.4 2012 2021 LOCATION DIVERSIFICATION ‘More than doubled non-traditional locations Neter
Slide 28: Sustained Growth
SUSTAINED GROWTH efesctuding 2020 due to negative covit QUARTERLY REVENUES 242022" expected to be Sth consecutive quarter of revenue growth impact) ene sa 037 ns sng 322 l i . II IL | I | 3 ‘TOTAL REVENUES, PRETAX INCOME ~12% grows, fllowing best year in a decade Double-cigit profit margin nniion nm
Slide 29: Continued Focus on Shareholder Return
CONTINUED FOCUS ON SHAREHOLDER RETURN Repurchased ~10% of our outstanding shares since Q3’19 Declared $1.25 Special Dividend in Q4 ‘2021 The Board authorized a new $50.0MM buyback program on August 31, 2022* and the company has $46.5MM remaining as of 10/29/22 Multi-year high stock price achieved $2
Slide 30: Accomplished & Driven Team Focused on Diversified Growth
Slide 31: Execution of 2022 Strategy Delivering Another Record Year
EXECUTION OF 2022 STRATEGY DELIVERING ANOTHER RECORD YEAR © Leverage ongoing digital transformation to drive growth Increase repeat purchases leveraging the addition of loyalty program and new advanced digital capabilities Expand addressable consumer base beyond kids with new products and incrementa
Slide 32: Positioned for Growth in 2023 and Beyond
POSITIONED FOR GROWTH IN 2023 AND BEYOND BRAND POWER: Benchmarking with other brands with similar awareness and affinity metrics shows significant untapped potential to monetize existing equity for further growth across channels DIRECT RELATIONSHIPS with LARGE ADDRESSABLE MARKET: Ability to leverage
Slide 33: Proven Management Team
PROVEN MANAGEMENT TEAM Sharon Price John President and Chief Executive Officer ‘ dntionof Welverne Word Wide, ne Ao: bro, Voin Todorovic Chief Financial Officer Ferrer esd Fnsnee and Operations et Group Eric Fenel {Chief Administrative Officer, ‘General Counsel and Secretary Secretary: Ousouteng Sut
Slide 34: Accomplished Board of Directors
ACCOMPLISHED BOARD OF DIRECTORS Craig Leavitt Non-Executive Chairman Maxine Clark Director and Founder Robert L. Dixon J. Director George Carrara Director ‘Narayan Iyengar Director
Slide 35: Explanatory Note on Non-GAAP Financial Measures
Explanatory Note on Non-GAAP Financial Measures Build-A-Bear Workshop (NYSE: BBW) reports it financial results in accordance with generally accepted accounting principles (GAAP). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures: $in millions Income before income taxes (pre-tax) $35.7 Interest $o Depreciation & Amortization $9.3 Earnings before interest, taxes, depreciation and amortization (EBITDA) $45.0 *F72022 at mid-year of annual guidance 36
Slide 37: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures: First nine months and Fiscal 2021; First nine months and Fiscal 2020 $inmillions 1* NINE MONTHS FY21 FY21 Income before income taxes (pre-tax) $30.6 $50.7 Interest $0 $o Depreciation & Amortization $9.1 $12.3 Earnings before interest, taxes, depreciation and $39.
Slide 38: Buildabear.com
Buildabear.com
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