Slide 1: Investor Presentation Q3 2021
Investor Presentation Q3 2021
Slide 2: Disclaimer
Disclaimer Notice This presentation (“Presentation”) is being issued by BuildDirect.com Technologies Inc. (the “Corporation” or “BuildDirect”) for information purposes only. Reliance on this Presentation for the purpose of engaging in any investment activity may expose a person to significant risk o
Slide 3: Investment Highlights
Investment Highlights • Superior digital platform and infrastructure have created an online leader • Positioned to acquire independent retailers and their Pro relationships • Combination will create an unrivaled offering for underserved B2B customers • Scaling through disruption of a growing TAM rip
Slide 4: Third Quarter 2021 Performance
Third Quarter 2021 Performance $22.4 M 216% $8.1 M 36.4% ($0.6 M) Revenue Pro Revenue Growth Gross Profit Gross Margin Adjusted EBITDA Increased 51% YoY due to Representing 66% of total Increased 47% YoY due to Decreased by 60bps YoY Decreased YoY due to acquisition and accelerating revenue due to a
Slide 5: Post-Quarter Highlights
Post-Quarter Highlights • Expanding our Pro market share with acquisition of Mid-West U.S.-based Superb Flooring & Design. • Approved as a preferred hard surface flooring vendor for Homevestors, the #1 U.S.-based cash home buyer with 1,100 real estate investor members. • Agreed to partner with Dolly
Slide 6: Our growth strategy in a nutshell
Leverage leading digital and Our heavyweight delivery platform DiPhy Acquire independent retailers to grow local presence and growth strategy in a recurring Pro revenue nutshell Expand B2B professional share of wallet through digital + DiPhy platform physical expansion Expand into carpet, services,
Slide 7: Heavy Goods E-commerce = Complexity
Heavy Goods E-commerce = Complexity2 Multiple factors increase the complexity of heavyweight ecommerce: Post COVID 2-5 years of adoption Pre COVID pulled forward • Extreme weight • Extreme size M A R K E T P E N E T R AT I O N • Vulnerability to damage • Extended buying cycles Amazon Wayfair BuildDi
Slide 8: A TAM Poised for Disruption
A TAM Poised for Disruption $71B Total U.S. 45% Flooring Independent Retailers • Dominate the market • Missing the online channel Market 4% Online 24% Big Box • Home Depot, Floor & Décor, Lumber Liquidators • Online represents a unique opportunity in a fragmented brick and mortar market • Online sal
Slide 9: Our Bulletproof E-commerce Platform for Heavy Goods
Our Bulletproof E-commerce Platform for Heavy Goods M A N U FA C T U R I N G R E L AT I O N S H I P S & I N V E N TO R Y M A N A G E M E N T A N D 5,000+ Gateway S U P P LY C H A I N D E L IV ERY LO G IS TICS floor & building product SKUs network advantage Direct from manufacturer pricing and Flexib
Slide 10: Entering a new Pro market segment with Superb Flooring & Design
Entering a new Pro market segment with Superb Flooring & Design 100% Strong synergies B2B revenue profile Strong builder relationships to drive value Across U.S. mid-West Enables strong foothold in attractive new market segment • Builder-focused platform including showroom, installation, and project
Slide 11: FloorSource Update: Driving Pro foothold and immediate growth
FloorSource Update: Driving Pro foothold and immediate growth 100% Successful integration B2B revenue profile delivering results Driving growth • Immediately accretive to BuildDirect’s revenue Through outstanding service and access to contractors and installers • BuildDirect platform providing initi
Slide 12: Robust acquisition pipeline
Strong funnel of near-term actionable acquisition targets 40-60 1,000+ strong U.S. candidates independent WELL-DEFINED INVESTMENT CRITERIA from retailers B2B focused revenue mix Robust acquisition pipeline $20-70M topline Top 3 regional player • Filled with near-term acquisition targets at 5
Slide 13: Strong year-over-year financial performance
Strong year-over-year financial performance1 Driven by acquisition and increasing customer demand Revenue Gross Profit and Gross Margin 2 (USD millions) (USD millions) 36.4% YoY gross margin impacted by acquisition and higher supply chain costs +51% +47% 37.0% $22.40 $8.1 $13.7 $5.1 Q3 20 Q3 21 Q3 2
Slide 14: Revenue Summary and Forecast
Revenue Summary and Forecast 1 1 Revenue (USD millions) $90 - $98 $81 Focus on unit economics and profitability $29 $46 $41 $46 $52 $41 2018A 2019A 2020PF 2021E E-commerce Independent Retailer 1Revenues presented based on International Financial Reporting Standards “IFRS” and 2018-2020 E-Commerce re
Slide 15: Investment Highlights
Investment Highlights • Superior digital platform and and infrastructure have created an online leader • Positioned to acquire independent retailers and their professional relationships • Combination will create an unrivaled offering for underserved B2B customers • Scaling through disruption of a gr
Slide 16: Appendix: Project Nevada, Bankers slides
Appendix Project Nevada Bankers slides 16
Slide 17: Comparables
Comparables As of November 16, 2021 (USD$ millions) EV / Revenue 3Y CAGR Gross Margin EBITDA Margin eCommerce Market Cap. Enterprise Value 2021E 2022E Revenue EBITDA 2021E 2021E Chewy $31,232 $31,261 3.9x 3.5x 50.3% nmf 27.0% 0.6% Wayfair $26,505 $29,682 2.1x 2.1x 44.2% nmf 28.9% 2.8% Zalando $22,95
Slide 18: Risk Factors
Risk Factors Investing in BuildDirect.com Technologies Inc. (“BuildDirect” or the “Corporation”) involves significant risks given the early stage nature of the Corporation’s business. Prior to investing in the Corporation, prospective investors are urged to consult with their legal, investment, acco
Slide 19: Risk Factors
Risk Factors Third-Party Supply Chain Network: The Corporation sources product from around the world and sells to customers throughout North America and relies on third party ocean, freight, trucking and warehouse service providers to transport and store its products and deliver products to its cust
Slide 20: Risk Factors
Risk Factors Call Centre and Website: The Corporation’s website and call center are material elements of the Corporation’s business. Customers use the Corporation’s website to source and purchase the Corporation’s products and services. The Corporation’s website in particular is vulnerable to certai
Slide 21: Risk Factors
Risk Factors Litigation: BuildDirect may become party to litigation from time to time in the ordinary course of business which could adversely affect its business. Monitoring and defending against legal actions, whether or not meritorious, can be time-consuming, divert management’s attention and res
Slide 22: Risk Factors
Risk Factors Cybersecurity: The Corporation relies on digital and internet technologies to conduct and expand its operations, including reliance on information technology to process, transmit and store sensitive and confidential data, including personally identifiable information, and proprietary an
Slide 23: Risk Factors
Risk Factors Intellectual Property: From time to time, the Corporation may receive notices from third parties alleging that it has infringed their intellectual property rights or may need to pursue claims against third parties to defend the Corporation’s intellectual property rights. Responding and/
Slide 24: Risk Factors
Risk Factors Conflicts of Interest: The Corporation may be subject to various potential conflicts of interest because of the fact that some of its officers, directors and consultants may be engaged in a range of business activities, including certain officers, directors and consultants that provide
Slide 25: Risk Factors
Risk Factors Tax Risk: The Corporation will be considered to have been carrying on business in Canada for purposes of the Income Tax Act (Canada). However the Corporation operates in a new and developing industry that has had historically low regulations and tax compliance. There is risk that foreig
Slide 26: Risk Factors
Risk Factors Difficulty to Forecast: BuildDirect must rely largely on its own market research to forecast sales as detailed forecasts are not generally obtainable from other sources. A failure in the demand for its products to materialize as a result of competition, technological change or other fac