Luvu Brands, Inc. · OTC:LUVU
Luvu Brands — Investor Presentation (March 2021)
40 slides from Luvu Brands's investor presentation, Mar 3, 2021
Slide 1: Luvu Brands
Slide 2: Safe Harbor Statement
STRANDS. Safe Harbor Statement This presentation by Luvu Brands, ne. (he “Company.” “wo.” “us.” and “our Includes “forward-looking statements” withthe maaning of Section 27A ofthe US. Securities Act of 1993, a8 amended. and Seaton 3 of tbe U8 Exchange Ato 138, an amended Al eraraouing staemants ar s
Slide 3: An Incubator of Innovative Brands
SRANOS AN INCUBATOR OF INNOVATIVE BRANDS. We grow businesses ideas and make sure to e them well.
Slide 4: Who We Are
LUVU BRANDS Who We Are REBEL WITH A CAUSE. We don’t follow industry trends; we create them.
Slide 5: Home Furnishings retail customers
MOME FURNISHINGS amaZOn Room&Board — waimart>|< Gloverstock « BEDBATHSe wayfair HomeGoods Brookstone Wa@reena USE. Nedra ces Dime CVS “houzz” Ss Iss
Slide 6: At A Glance
LUVU BRANDS At A Glance © TTM revenue growth of 20% e High interest rate debt is being retired Balance sheet is improving Increasing production capacity ¢ Facilities lease extended for six years ¢ New products being launched Float: 27M Shares Market Cap: $10M Share Price (2/24/21): $.13 52-Week Rang
Slide 7: Key Business Highlights
SRANOS Key Business Highlights ¢ Vertically integrated US manufacturer ¢ Diverse consumer brands with international distribution 90% of sales are through e-commerce channels e Fiscal 2020 revenue of $18.4 M; TTM revenue of $20.6 M Operating metrics are improving Attractive valuation relative to peer
Slide 8: Recent Developments
BRANDS. Recent Developments
Slide 9: Q2 and First Half Results
* Q2 and First Half Results: Q2 Sales of $5.7 million; +20% Net income of $1.5 million, $.02/share First Half Sales of $11.1 million; +25% Net income of $1.8 million, $.02/share e Launched new investor relations website Luvu Brands, Inc. 9 OTCOB:LUVU
Slide 10: Our Brand Portfolio
LUVU BRANDS Our Brand Portfolio LIBERATOR JAXX Orr Liberator®, a brand category of iconic products for enhancing sensuality and intimacy Jaxx®, a diverse range of casual fashion daybeds, sofas and beanbags made from eco-friendly re-purposed polyurethane foam Avana®, inclined bed therapy products, as
Slide 11: Liberator: a retail brand category in sexual wellness
A retail brand category in the emerging sexual wellness space. Better sex for every body. & = = =
Slide 12: Slide 12
Slide 13: Jaxx foam furniture and beanbags-in-a-box
Sustainably sourced, space-saving, foam furniture that’s a combination of “feel-good” & “feels good” Vertically integrated, totally transformative beanbags-in-a-box.
Slide 14: Avana
VU U' BRANDS Whine For R&R and reflux relief, Avana alleviates health problems and assists in a quicker healing. Perfect for bed rest or simply resting in bed. Avana helps consumers find freedom from aches and pains, experience peace in their surroundings, and maintain vitality, placing our sleep su
Slide 15: Brands
SRANOS AND
Slide 16: Liberator Amazon Reviews
ERANOS ¢ Splurge on your sex life! You won't regret it! e Everybody Should Have One! e Wife says it's the deepest most passionate love she's ever had! e Worth EVERY Penny! & & & & & Amazon Reviews
Slide 17: Liberator Quarterly Sales History
LUVU SRANDS Quarterly Sales History- Q2 ‘19 to Q2’20 LIBERATOR ae eee | SS == eam n ft rai fi — nant nhhng ft so nt ft ft a5 Ss SS SS Ss art ra
Slide 18: Best bean bag chair ever
¢ Best bean bag chair ever! e Absolutely in love with this bean bag e It’s just amazing! My boys luv this Love this! The whole family loves it %& %& %& & & Amazon Reviews
Slide 19: Jaxx Amazon Reviews
JAXX %& %& & & & Amazon Reviews ¢ Repeat customer: I'm on my 4th one! e Loved them so much | bought 2 more « We have these on our patio and love them!
Slide 20: Avana Amazon Reviews
e Wish | Had This Years Ago! ¢ 1am IN LOVE with this Perfect in every way ke ek & Amazon Reviews
Slide 21: Annual Sales History
BRANDS Annual Sales History JAM + W/L. 410,000,000 9,000,000
Slide 22: Quarterly Sales History
LUVU BRANDS Quarterly Sales History JAQOM + W/ALw
Slide 23: Financials
FINANCIALS. Luvu Brands, Inc. 23 OTCOB:LUVU
Slide 24: Sales History FY 2015 to FY 2020
LUVU STRANDS Sales History- FY 2015 to FY 2020 18,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000
Slide 25: Quarterly Net Sales FY 2018 to Q2 FY 2021
LUVU BRANDS Quarterly Net Sales - FY 2018 to Q2 FY 2021 16,000,000 2018 = 2019 = 2020 5,000,000 = mai 4,000,000
Slide 26: Gross Profit History FY 2016 to FY 2020
LUVU BRANDS Gross Profit History- FY 2016 to FY 2020 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000
Slide 27: Gross Profit History Quarterly
LUVU BRANDS Gross Profit History- Quarterly from Q1 ‘18 0900 zoe 1,800,000 = 2019 1,600,000, oe = 2021 1,400,000 1,200,000 1,000,000
Slide 28: EBITDA History FY 2016 to FY 2020
LUVU BRANDS EBITDA History - FY 2016 to FY 2020 800,000 00000 40000 ae = °
Slide 29: EBITDA History Quarterly
SRANOS EBITDA History - Quarterly from Q2 ‘19 400,000 - Be a 6 i — oe a sar co20) 2 ory a2 en (200,000)
Slide 30: Amazon Sales History FY 2015 to FY 2020
Amazon Sales History - FY ‘15 to FY ’20 7,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 ° FYIS PYG FYI. FYB FYI. FY'20
Slide 31: Mass Market Sales History
SRANOS Mass Market Sales History - FY ‘15 to FY 20 (Excluding Amazon Sales) 3,000,000 2,500,000 a : SEE FY 15
Slide 32: Q2 FY 2021 Financial Review
LUVU STRANDS Q2 FY ‘21 Financial Review \ UY W Direct = Wholesale = Other 27% Direct $1,910 Wholesale 3,670 Other 134 Total $5,714 43% Liberator $2,457 Jaxx 1,713 Avana 833 Products purchased forresaio” 458 Other 253 Total
Slide 33: Financial Review Q2 & Six months FY 2021
SRANOS Financial Review Q2 & Six months FY 2021 Three Months Ended ‘Six Months Ended December 31, December 31, Net Sales S$ 5,714 $ 4,779 $ 11,081 S$ 8,874 Cost of goods sold 4,148 3,260 8,027 6,217 Gross profit 1,566 1,519 3,054 2,657 GP % 27% 32% 28% 30% Total operating expenses 1,109 1,105 2,161
Slide 34: Gross Profit & SG&A Trends
LUVU BRANDS Financial Review Gross Profit & SG&A Trends BRS evo asry20 aaFy20 © QiFY'21 Gar 21 Gross Profit $ 1,519 $ 1,068 $ 1,802 S$ 1,488 $ 1,566 Gross Margin % 31.8% 26.5% 32.9% 27.7% 27.4% Q2FY'20 Q3FY'20 Q4FY'20 © © QIFY'21 = Q2FY'21 Advertising $ 16 $ 17 §$ 7 $ 6 § 120 Other selling costs 317
Slide 35: Luvu Brands, Inc.
BRANDS Luvu Brands, Inc.
Slide 36: Growth Strategy: Liberator
LUVU Nos BRAND: Growth Strategy LIBERATOR To continually grow as a brand category in Sexual Wellness and Erotic Luxury: ¢ Expanded retail and e-commerce distribution, taking full advantage of our novel vacuum compressed Point-of-Purchase packaging (with a discrete flip door) that allows Liberator sh
Slide 37: Growth Strategy: Jaxx
LUvl BRANDS Growth Strategy JAXOK e Jaxx Nimbus — Continue to capitalize on the growing popularity of our spandex beanbags. e Jaxx Beanbags — Promote the favorable “price to value” of our US made beanbag collection. ¢ Jaxx Kids — Continue to promote our beanbags, loveseats, sofas, and game chairs in
Slide 38: Growth Strategy: Avana
LUVU BRANOS Growth Strategy QA. © Continue to increase production capacity of our top selling Avana products ¢ New foam cutting equipment has been ordered and installed; second, larger roll compression machine is on order and will allow for larger products to be compressed. , Uno Memory Foam Snuggle
Slide 39: Conclusion
Luvl HOY Conclusion ¢ We are a manufacturing, marketing and invention company with diverse distribution across three unique brands. © Our ability to monetize new products with minimal investment is extraordinary. e Large upside for continued growth without additional capital equipment. e At inflecti
Slide 40: Ronald Scott, Chief Financial Officer
Ronald Scott Chief Financial Officer P: (770)246-6426 E: ir@luvubrands.com Luvu Brands, Inc. 40 OTCQB:LUVU