Williams-sonoma, Inc. · NYSE:WSM

Williams-sonoma — William Blair 33rd Annual Growth Stock Conference 2013

60 slides from Williams-sonoma's conference presentation, Jun 11, 2013

  1. Slide 1: Tomorrow's Retailer

    TOMORROW’S RETAILER INVESTOR PRESENTATION | JUNE 2013 JULIE WHALEN PAT CONNOLLY EVP, CFO Director, EVP, CMO

  2. Slide 2: Forward-looking statements

    The forward-looking statements included in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements address the financial condition, results of operations, business initiatives and prospects of the Comp

  3. Slide 3: Our vision: enhance customers' lives at home

    Our vision from the beginning has been to enhance our customers’ lives at home. Our customers love their homes, and we have a singular focus on helping them make their homes a reflection of who they are. -LAURA ALBER, PRESIDENT & CEO 3

  4. Slide 4: Our Formula for Sustainable Growth

    OUR FORMULA FOR sustainable GROWTH 4

  5. Slide 5: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

  6. Slide 6: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

  7. Slide 7: $4+ Billion Net Revenues

    $4+ Billion NET REVENUES 581 STORES WORLDWIDE 8 CATALOGS 7 ECOMMERCE WEBSITES 7

  8. Slide 8: Net Revenues 1980-2012

    NET REVENUES 1980 - 2012 $4,500.0 $4,500,000,000 $4,000.0 $4,000,000,000 $3,500.0 $3,500,000,000 $3,000.0 $3,000,000,000 $2,500.0 $2,500,000,000 $2,000.0 $2,000,000,000 $1,500.0 $1,500,000,000 $1,000.0 $1,000,000,000 $500.0 $500,000,000 $0.0 $0 1981 1982 1983 1984 1985 1986 1987 1989 1991 1992 1993

  9. Slide 9: Revenue Mix by Brand

    REVENUE MIX BY BRAND 3% OTHER 5% 4% 11% 43% 14% WSM SHARE OF HOME FURNISHINGS SALES IN AMERICA 24% 9

  10. Slide 10: 2012 Revenue: $1,753M

    2012 REVENUE: $1,753M 192 STORES 10

  11. Slide 11: 2012 Revenue: $1,753M

    2012 REVENUE: $1,753M 192 STORES 11

  12. Slide 12: 2012 Revenue: $1,753M

    2012 REVENUE: $1,753M 192 STORES 12

  13. Slide 13: 2012 Revenue: $981M

    2012 REVENUE: $981M 253 STORES 13

  14. Slide 14: 2012 Revenue: $981M

    2012 REVENUE: $981M 253 STORES 14

  15. Slide 15: 2012 Revenue: $981M

    2012 REVENUE: $981M 253 STORES 15

  16. Slide 16: 2012 Revenue: $558M

    2012 REVENUE: $558M 84 STORES 16

  17. Slide 17: 2012 Revenue: $558M

    2012 REVENUE: $558M 84 STORES 17

  18. Slide 18: 2012 Revenue: $558M

    2012 REVENUE: $558M 84 STORES 18

  19. Slide 19: 2012 Revenue: $220M

    : “" _— eo pw | ee an Om 5042 REVENUE: $220M

  20. Slide 20: 2012 Revenue: $430M

    2012 REVENUE: $430M 48 STORES 20

  21. Slide 21: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

  22. Slide 22: Direct business, highly profitable

    highly profitable! DIRECT! BUSINESS! 22

  23. Slide 23: Channel Profitability 2000-2012

    CHANNEL PROFITABILITY 2000 - 2012 30.0% 25.0% DIRECT-TO-CUSTOMER 20.0% 15.0% RETAIL 10.0% 5.0% 0.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 23

  24. Slide 24: Revenue Mix by Channel

    REVENUE MIX BY CHANNEL DIRECT PENETRATION TO EXCEED 50% BY 2015 46% 54% DIRECT-TO- RETAIL CUSTOMER 24

  25. Slide 25: Million web visits in 2012

    highly profitable! DIRECT! BUSINESS! 420 MILLION ! web visits! IN 2012! 25

  26. Slide 26: Billion emarketing impressions annually

    highly profitable! 19 BILLION ! DIRECT! emarketing impressions ! ANNUALLY! BUSINESS! 26

  27. Slide 27: Customer database and catalogs circulated

    highly profitable! 50 MILLION ! DIRECT! customer! BUSINESS! DATABASE! 260 MILLION ! catalogs circulated! ANNUALLY! 27

  28. Slide 28: 26.6 Billion earned media impressions

    26.6 BILLION earned media IMPRESSIONS IN 2012 28

  29. Slide 29: Developed multi-channel model

    multi-channel model! DEVELOPED! OVER 30 YEARS! 581 RETAIL! store portfolio! CREATES SUPERIOR! multi-channel model! ! 29

  30. Slide 30: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

  31. Slide 31: Global supply chain excellence

    GLOBAL! supply chain! EXCELLENCE! Vertically integrated supply chain to support multichannel model with 85% of product exclusive and designed in-house 31

  32. Slide 32: 750,000 Home Deliveries in 2012

    750,000 Home Deliveries in 2012 32

  33. Slide 33: U.S. Manufacturing

    U.S. MANUFACTURING ALMOST HALF OF OUR UPHOLSTERED FURNITURE IS MADE IN OUR NORTH CAROLINA FACTORY. 1 2 33

  34. Slide 34: Custom Made

    CUSTOM MADE 75% OF OUR UPHOLSTERED FURNITURE IS MADE-TO-ORDER 34

  35. Slide 35: U.S. Delivery Time

    U.S. DELIVERY TIME 12 WEEKS 3 WEEKS INDUSTRY STANDARD OUR COMPANY STANDARD 10 DAY GOAL 35

  36. Slide 36: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

  37. Slide 37: Significant growth opportunities

    SIGNIFICANT! growth! OPPORTUNITIES! 37

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  41. Slide 41: Create a slide for Agrarian

    create a slide for Agrarian 41

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  44. Slide 44: Williams-Sonoma, Inc. Create

    WILLIAMS-SONOMA, INC. % y CREATE Fo aa

  45. Slide 45: Canada

    i~ \. WILLIAS-SONOMA, INC 45

  46. Slide 46: Middle East

    MIDDLE EAST, WILLIAMS-SONOMA, INC: 46

  47. Slide 47: Shipping to over 90 countries

    SHIPPING TO OVER 90 COUNTRIES: 47

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  49. Slide 49: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

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  53. Slide 53: INN

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  54. Slide 54: Greater Enterprise Value & Return to Stockholders

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN Portfolio of High Competitive Multiple Seasoned strong brands penetration advantage - opportunities team that has of total tuned to to grow built brands revenue, 46% characteristics of through that represent an

  55. Slide 55: Revenue ($B)

    REVENUE ($B): $8B+ REVENUE OUTLOOK: MID TO HIGH SINGLE-DIGITS GROWTH OVER THE NEXT 3 YEARS $4.5 $4.2 - $4.28 .3 $4.0 $3.9 $4.0 $3.7 $3.7 $3.5 $3.5 $3.5 $3.4 $3.1 $3.1 $3.0 $2.8 $2.5 $2.4 $2.1 $2.0 $1.8 $1.5 $1.5 $1.2 $1.0 $1.0 $0.9 $0.7 $0.6 $0.5 $0.0 1994 1995 1996 1997 1998 1999 2000 2001 2002 200

  56. Slide 56: Operating Income ($M)

    OPERATING INCOME ($M): $500 $424 420 - $440 $450 $416 $400 $385 $359 $345 $350 $322 $310 $313 $300 $255 $250 $202 $200 $162 $150 $128 $100 $100 $53 $50 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 56

  57. Slide 57: Non-GAAP Earnings Per Share

    NON-GAAP EARNINGS PER SHARE: EPS OUTLOOK: LOW DOUBLE-DIGITS TO MID- TEENS GROWTH OVER THE NEXT 3 YEARS $3.00 $2.65 $2.67 -- $2.75 $2.77 $2.58 $2.50 $2.24 $2.00 $1.95 $1.88 $1.76 $1.76 $1.60 $1.50 $1.32 $1.04 $1.00 $0.95 $0.65 $0.49 $0.50 $0.35 $0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

  58. Slide 58: Capital Expenditures ($M)

    CAPITAL EXPENDITURES ($M): 2000 – 2013E CAPITAL EXPENDITURES $250 $200 - $220 $212 $212 $205 $200 $191 $192 $181 $162 $156 $156 $152 $150 $130 $100 $72 $62 $50 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 58

  59. Slide 59: Returning Cash to Our Stockholders

    RETURNING CASH TO OUR STOCKHOLDERS: RECENTLY ANNOUNCED $750 MILLION SHARE REPURCHASE AUTHORIZATION AND A 41% DIVIDEND INCREASE REPURCHASE DIVIDENDS $400 $360 $350 $300 $110 $263 $239 $243 $250 $220 $69 $49 $184 $34 $200 $88 $150 $59 $250 $100 $94 $190 $194 $186 $79 $155 $60 $125 $51 $51 $50 $48 $19

  60. Slide 60: Tomorrow's Retailer

    HIGHLY GLOBAL GROWTH + + + + PROFITABLE BRANDS DIRECT SUPPLY TALENT MATRIX BUSINESS CHAIN = GREATER ENTERPRISE VALUE & RETURN TO STOCKHOLDERS TOMORROW’S retailer 60

Williams-Sonoma — William Blair 33rd Annual Growth Stock Conference 2013 on 6ix