Barnes & Noble Education, Inc · NYSE:BNED
Barnes & Noble Education — IPO Roadshow (July 2015)
22 slides from Barnes & Noble Education's IPO roadshow presentation, Jul 14, 2015
Slide 1: Investor Presentation July 2015
Investor Presentation July 2015 Filed pursuant to Rule 433 of the Securities Act of 1933, as amended Registration Statement No. 333-202298 Free Writing Prospectus dated July 14, 2015
Slide 2: Forward-looking statements
This presentation contains certain forward-looking statements and information relating to our business that are based on the beliefs of our management as well as assumptions made by and information currently available to our management. When used in this communication, the words “anticipate,” “belie
Slide 3: Agenda
Agenda 1. Introduction & Strategic Overview Mike Huseby Executive Chairman 2. Company Overview Max J. Roberts Chief Executive Officer 3. Financial Overview Barry Brover Chief Financial Officer
Slide 4: Introduction & Strategic Overview
Introduction & Strategic Overview
Slide 5: Transaction Summary
Barnes & Noble Inc. Barnes & Noble Booksellers Inc. NOOK Digital LLC Barnes & Noble Education Inc. Barnes & Noble College Booksellers LLC. B&N Stockholders 1 Transaction Summary (BKS) (Retail Business) (Digital Business) (BNED) (College Business) Pro Forma Structure Description • Tax-free spin-off o
Slide 6: Management
2 Management Team Barry Brover CFO KPMG Max J. Roberts CEO Petrie Retail, Macy’s, Deloitte Michael P. Huseby Executive Chairman Barnes & Noble, Cablevision, Charter, AT&T William Maloney EVP, Sales Barnes & Noble Education Lisa Malat VP, Operations & CMO Macy’s Scott Ryder CTO, Yuzu Apple, Sun Micro
Slide 7: Investment Highlights
Strong Platform for Growth Significant Market Opportunity Leverageable Investments in Innovation Proven Business Model Leader in Digital Education Complete Solution Provider Large National Footprint 3 Investment Highlights •Significant opportunity in core business and adjacent areas •Well positioned
Slide 8: Growth Strategy
Core Adjacent Products / Markets (Higher Ed) New Markets (Opportunistic) 4 Organic • Distribution – Physical – Virtual / eCommerce – Unaffiliated / Out-of- Footprint Markets • Leverage Digital Investment Inorganic • Distribution – Physical – Digital • Content – Physical – Digital Growth Strategy Dri
Slide 9: Company Overview
Company Overview
Slide 10: Significant Market Opportunity
$ 13B PRINT & DIGITAL HIGHER ED BOOK MARKET 52 % SCHOOL-OPERATED BOOKSTORES 21M STUDENTS IN POST- SECONDARY DEGREE-GRANTING INSTITUTIONS $ 170B MILLENIALS’ ANNUAL PURCHASING POWER $ 10B COLLEGE BOOKSTORE MARKET 5 Significant Market Opportunity Leading Operator and Innovator in Highly Fragmented Indu
Slide 11: The Most Comprehensive Suite of Campus Solutions
Comprehensive Rental & Student Affordability Programs Comprehensive Course Materials Catalog Social & Academic Hub Barnes & Noble College Marketing Student / Alumni Engagement General Merchandise Student Support Services Physical / Digital Content Distribution 6 The Most Comprehensive Suite of Campu
Slide 12: Proven Business Model
7 LOW CUSTOMER ACQUISITION COSTS HIGH REVENUE VISIBILITY 93 % CAMPUS PARTNER RETENTION $ 90M REVENUE FROM NEW STORES OPENED IN FY2015 CONTRACTS TYPICALLY PROFITABLE WITHIN CONTRACTS TYPICALLY PROFITABLE WITHIN 15 Yrs AVERAGE SCHOOL RELATIONSHIP TENURE 1 ST YEAR (1) Proven Business Model Stable and P
Slide 13: Large National Footprint
8 Large National Footprint Direct Access to 5M Students through 724 Stores in 42 States
Slide 14: Leverageable Investments in Innovation
9 Leverageable Investments in Innovation Best in Class Technology Platform Drives Everything We Do Campus Connect Platform Research / Analytics Platform eCommerce Platform CAMPUS SYSTEM INTEGRATION ACTIONABLE RESEARCH INSIGHTS DYNAMIC RETAIL EXPERIENCE Digital Educational Platform Course Material Ad
Slide 15: Leader in Digital Education
10 Content Aggregation Leading Digital Platform Campus Relationships Well Positioned to Lead Industry Transition Leader in Digital Education Digital Content Aggregator Digital Content Publishers Digital Content End Users Well Positioned to Lead Transition to Digital
Slide 16: Strong Platform For Growth
Lead in Digital Education Expand Market Share with New Bookstores Increase Sales at Existing Bookstores Strategic Partnerships & Acquisition 11 Strong Platform For Growth A Clear Path Forward
Slide 17: Financial Overview
BARNES@NOBLE ‘education
Slide 18: Financial Summary
Financial Summary $1,631 $1,536 $1,545 $132 $212 $228 12 $363 $348 $347 $44 $81 $97 5.9% 5.6% 4.9% $1,763 $1,748 $1,773 2013 2014 2015 Product Sales / Other Rental Income ________________________ (1) Adjusted to exclude LIFO adjustment of $(2.2) mm, $7.7 mm and $0.0 mm in FY2013, FY2014 and FY2015,
Slide 19: Financial Summary (cont.)
Financial Summary (cont.) 13 $96 $132 $212 $36 $80 $16 Store Openings vs. Closings Gross Profit Margin (1) Comparable Store Sales Growth Rental Income ($ in millions) ________________________ (1) Adjusted to exclude LIFO adjustment of $(2.2) mm, $7.7 mm and $0.0 mm in FY2013, FY2014 and FY2015, resp
Slide 20: Pro Forma Capitalization
Pro Forma Capitalization 14 ________________________ (1) Reflects settlement of related party receivables. (2) Based on average excess availability. Cash $95 Credit Facility – (1) (2) Type: Asset-Backed Revolving Facility Commitment: $400 Base Accordian: $100 Cost: L + 175 – 200 bps Term: 5 years Pr
Slide 21: Attractive Investment Opportunity
15 Attractive Investment Opportunity Leading operator and innovator in highly fragmented industry National footprint with significant ability to scale new products and services Innovative technology platform deeply embedded within campus ecosystem Flexible and resilient business model providing foun
Slide 22: BARNES NOBLE
BARNES NOBLE