Bath & Body Works, Inc. · NYSE:BBWI
Bath & Body Works — L Brands — Merger or Acquisition (June 2021)
16 slides from Bath & Body Works's merger presentation, Jun 21, 2021
Slide 1: L Brands to Separate into Two Leading Retail Companies
| brands L Brands to Separate into Two Leading Retail Companies to Maximize Long-Term Value Creation June 21, 2021 § |
Slide 2: Forward Looking Statements
Lbrands Forward Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 We caution that any forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) contained in this presentation or made by our Company o
Slide 3: Forward Looking Statements
Lbrands Forward Looking Statements Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 legal and regulatory matters; volatility in currency exchange rates; local business practices and political issues; potential delays or disruptions in shipping and transportation and r
Slide 4: Creating Two Industry-Leading Independent Publicly Traded Retailers
Lbrands Creating Two Industry-Leading Independent Publicly Traded Retailers Bath&Body Works: VICTORIAS JPIUNVEE victoria's Secret BEAUTY aa #1 U.S. Lingerie Brand a4 #1 Specialty Home Fragrance & Fragrant Body Care in North America 1,752 299 30% 929 458 43% Stores Across the International LTM Q1 202
Slide 5: Compelling Strategic Rationale for Separation
Lbrands Compelling Strategic Rationale for Separation 9 ese Jod ALS Creates two industry-leading, highly-focused retailers Distinct strategic and management focus on specific operational and growth priorities Differentiated investment opportunities, aligning each company with its natural shareholder
Slide 6: Bath & Body Works at a Glance
Lbrands Bath & Body Works at a Glance ix! ae , Category Mix Investment Highlights “HE G © a eS PE] Category dominant: The Specialty Fragrance Retailer Body Care & Home Fragrance Soaps & Sanitizers Fragrance (~35%) (~40%) (~20%) Sustained track record of double-digit topline growth (12% prior 5-year
Slide 7: Continued Execution at Bath & Body Works Creates Opportunities for Long-Term Growth
Lbrands Continued Execution at Bath & Body Works Creates Opportunities for Long-Term Growth Financial Summary Growth Drivers BBWR ($ in milli $7,143 ae - fevenue ($ in millions) 96,356 $6,434 _ = Growth in Existing Categories $4,776 a = Will continue to innovate and drive the market through new form
Slide 8: Bath & Body Works - Three to Five Year Financial Targets
Lbrands Bath & Body Works -— Three to Five Year Financial Targets Metric Target U.S. and Canada Store Comps Growth Low to mid-single digit U.S. and Canada Square Footage Growth Low-single digit Digital Channel Sales Growth High-single digit to mid-teens International Sales Growth High-teens to low-t
Slide 9: Victoria's Secret at a Glance
Lbrands Victoria’s Secret at a Glance VICTORIAS TUNE VICTORIA'S SECRET BEAUTY SECRET Victoria’s Secret PINK Victoria’s Secret Lingerie (~50%)1 (~35%)' Beauty (~15%)' Balanced Channel Mix? "| (U.S. and Canada Stores Digital N% International +>$220mm|| +44% +80% Increase in operating ingome}| Digital
Slide 10: Victoria's Secret is Well Positioned for Long-Term Sustainable Growth
Lbrands Victoria’s Secret is Well Positioned for Long-Term Sustainable Growth Financial Summary Growth Drivers Victoria’s Secret Revenue ($ in millions) = Evolve Merchandise Assortment and Marketing to Inspire Women Around the World $8,103 7508 with Products and Experiences that Uplift and Champion
Slide 11: Victoria's Secret - Three to Five Year Financial Targets
Lbrands Victoria’s Secret — Three to Five Year Financial Targets Metric Target | Total Sales Growth Mid-single digit ’ v. f Digital Penetration ~50% Z Operating Income Growth High-single digit Operating Income Rate Mid-teens
Slide 12: Transaction Details
| brands Transaction Details
Slide 13: Pathway to Completion
Lbrands Pathway to Completion Transaction Structure Timing & Other Matters Planned as a tax-free spin-off of Victoria's Secret to L Brands shareholders Expected to be completed by August 2021, subject to customary closing conditions including, but not limited to: Financial Implications . seatveness
Slide 14: Appendix
| brands Appendix
Slide 15: Bath & Body Works - Adjusted Operating Income Reconciliation
Lbrands Bath & Body Works - Adjusted Operating Income Reconciliation (Sin millions) 2018 2019 2020 Q12021TTM Operating Income - GAAP $ 1,103 $1,224 $1,821 $2,125 Restructuring Charges’ $ - $ - $ 11 $ 11 Adjusted Operating Income $ 1,103 $1,224 $1,832 $2,136 Adjusted Operating Income % of Sales 23% 2
Slide 16: Victoria's Secret - Adjusted Operating Income (Loss) Reconciliation
Lbrands Victoria's Secret - Adjusted Operating Income (Loss) Reconciliation (Sin millions) 2018 2019 2020 Q12021TTM Operating Income (Loss) - GAAP $ 400 $ (892) $ (101) $ 498 Asset Impairments * $ 81 $ 253 $ 214 $ 117 Restructuring Charges ” $ - $ - $ 51 $ 51 Hong Kong Store Closure and Lease Termin