Slide 1: September 2024
September 2024
Slide 2: Important Disclosures
Important Disclosures
Slide 3: Build-A-Bear began as a pioneer of Experiential Retail
Build-A-Bear began as a pioneer of Experiential Retail Gem: ja — so much more
Slide 4: Powerful brand with outsized brand equity
Andis nowa powerful bran WELL-KNOWN Aided Brand Awareness* OUTSIZED BRAND EQUITY One of the 20 most influential retailers in North America** A DESTINATION of store visits are planned* RESPECTED The North American toy retailer** MULTI-GENERATIONAL year-old brand BELOVED store and web visits per year
Slide 5: 2023 snapshot
2023 snapshot Tir - Prveectscin sas0M 70M 16% 8% Guests create ime memories by at our experiential retail locations
Slide 6: By diversifying the business
By diversifying the business Beyond Kids Expanding To | ce Expanding Buidabeorcom sas mos tcactars and git gre tha ond eau Expanding To Mots Day, redueion Congratulations New Baby, Cat _ Expanding To
Slide 7: And evolving our store footprint
And evolving our store footprint Partner Store Growth Store Count Mix = 22% ) 14% « = 8% | | [| l | | ed a TH corporately Managed J Partner-Operated Franchised ee ee ee launched domestically in 2018 and internationally in 2023
Slide 8: We have expanded both sides of our business model
We have expanded both sides of our business model Net Retail Sales Third-Party Revenue** (Direct-to-Consumer Segment*) (Commercial & intl. Franchise Segments) 18 202 218 023 waa
Slide 9: And we have entered a new era of profitability
And we have entered a new era of profitability Net Retail Pretax Income Third-Party Pretax Income (Direct-to-Consumer Segment) (Commercial & intl. Franchise Segments) — r Nargin wen wor sein
Slide 10: Consistent returns position us for a new phase of growth
Consistent returns position us for a new phase of growth Free Cash Flow ROIC* ne i [] | L [ 200 at tia 2021 2022 2008 ae
Slide 11: We have multiple levers to grow the business
We have multiple levers to grow the business Wholesale Sales Growth Domestic Store Growth New Category Introductions Web Growth/ International Store Growth Gifting All Driven By Our Circle of Engagement + Content Increased Consumer Base Growth Consumer Connection More Purchase Occasions Loyalty « Pr
Slide 12: And we have restarted new store unit growth
And we have restarted new store unit growth Total Experience Locations A teddy bear hug is ors understood in every We are expanding in ‘models and through 2 formats
Slide 13: We generate revenue from product sales
We generate revenue from product sales at retail, at wholesale, and from royalties International Franchising prc Wholesale sales Sales-based royalty (Corporate stores and websites ides US & Int fevenue, development fees, Fiseal 2023 nu ) partner-operated stores) ‘and merchandise sales : ‘ aia
Slide 14: At retail, multiple store models produce top tier unit economics
At retail, multiple store models produce top tier unit economics Class of 2019 Corporate Store Returns #2018 reached Discovery concoureo/SIs ry in 2023 Store Model" Store Model Avg. Corp Store Unit VoL We opened 9 net new corporate stores in fiscal 2023 aon
Slide 15: Commercial is our fastest growing segment
Commercial is our fastest growing segment Partner-Operated Stores Commercial Revenue 2000 200 2022 202s <a] Parnes exo 22h 2023 Commercial revenue is primarily wholesale sales, including to partner-operated stores
Slide 16: International Franchise is also growing
International Franchise is also growing Intl. Franchise Stores Intl. Franchise Revenue 2020 2021 202% 20% 2000 oz), 202220283 Intl. Franchise revenue includes sales-based royalties, i ta development fees, and merchandise sales
Slide 17: Systemwide Sales growth exceeds revenue growth
Systemwide Sales growth exceeds revenue growth Revenue Systemwide Sales* Systemwide Sales exceed revenue because it includes Bat product sales at all stores, whether operated by the Company, partners or by franchisees
Slide 18: Our opportunity to sell more products to more people in more places
Our opportunity to sell more products to more people in more places is a testament to the power of the brand The specialty toy company that helped define experiential retain the late ‘80s has not only survived but thrived, From inspiring viral moments, {generating products that leverage pop culture
Slide 19: Slide 19
Slide 20: 2023 was our third consecutive year of record growth and profits
Revenu $4861M, Pretaxincome Net New Unit Growth® (Gross Profit Margin 44 EBITDA $79.1M, 16.3: YECash i Free Cash Flow. S46.0M ‘Cash Returned $426M 2023 was our third consecutive year of record growth and profits even
Slide 21: Q2 2024 was our most profitable second quarter
Q2 2024 was our most profitable second quarter 2 1H Free Cash Flow 1H Cash Retumed oc
Slide 22: Contact Information
Contact Information
Slide 23: Fiscal 2024 Guidance calls for net new unit growth acceleration
Fiscal 2024 Guidance calls for net new unit growth acceleration
Slide 24: BBW Key Statistics
BBW Key Statistics ) Market Capitalization i iy 000
Slide 25: Appendix
Slide 26: Build-A-Bear Non-GAAP Reconciliations
Build-A-Bear Non-GAAP Reconciliations Systemwide Sales, Free Cash Flow, EBITDA uc Yea rio) au9__m0__00 See Se or Total teres Fas § woo 5 toes F550 tmome ttre ce aes $s wa feet cnn expt, et 5 os) ‘epeition and amartation expe sur faring tte te tn, epee an amertten HOA) $a st i 9 on 2a $ ome som sisi
Slide 27: Build-A-Bear Non-GAAP Reconciliations
Build-A-Bear Non-GAAP Reconciliations vested capital, Segment ROIC tot aon an 2028 earn maton) am ‘ation of Retin om iveted pal 9s __w $82 etmincome $6 See ta? ae = Operangese terest ss be 33 ia onan Aes ee ierestbgene 29) ma at 89 sou as 2.88 Nechwal Amtoesteg apal Camganych $109 wee mre turn inte