Build-a-bear Workshop, Inc. · NYSE:BBW
Build-a-bear Workshop — Investor Presentation (September 2023)
29 slides from Build-a-bear Workshop's investor presentation, Sep 12, 2023
Slide 1: Investor Update September 2023
Slide 2: Forward Looking and Cautionary Statements
FORWARD LOOKING AND CAUTIONARY STATEMENTS This peseniation contains certain statements that are or may be considered tobe, “orwarddooking statements" forthe purpose of federal secures laws, including, but not limited to, statements that reflect our current views with respect to future events and fna
Slide 3: Executive Summary
EXECUTIVE SUMMARY
Slide 4: Build-A-Bear Workshop, Inc.
BUILD-A-BEAR WORKSHOP, INC. (NYSE: BBW) In 1997, we pioneered experiential retail for kids Today, we area MULTI-CHANNEL, SITE-BASED EXPERIENCE and ENTERTAINMENT COMPANY with DIVERSIFIED CATEGORIES and CONSUMER SEGMENTS
Slide 5: BBW Recent Results
BBW RECENT RESULTS Ss YEARS OF HEART AND HUGS! FY2022 MOST PROFITABLE YEAR in COMPANY HISTORY 2ND CONSECUTIVE YEAR of RECORD-BREAKING PROFITABILITY WITH 2Q23, 10 CONSECUTIVE QUARTERS of YEAR-OVER-YEAR REVENUE GROWTH FY2023 GUIDANCE FOR CONTINUED GROWTH
Slide 6: BBW Snapshot: By the Numbers
BBW SNAPSHOT: BY THE NUMBERS 25+ ~225MM YEARS OF : EMOTIONAL Furry Friends Sold Data Contacts, Social Media CONNECTIONS Since Inception lowers & Loyalty Members ~500 ~35% Experience Locations of Experience Locatior Worldwide with Multiple J Outside Traditional M: Business Models Visitors Per Year to
Slide 7: BBW Key Investor Considerations
BBW KEY INVESTOR CONSIDERATIONS BRAND POWER PRESENTS MONETIZABLE OPPORTUNITIES: Trusted and iconic brand appeals to today’s desire for personalized, shared & share-able experiences, unique gifting, enthusiast/collectibles & nostalgia fueled by 25-years of one-one experiences with multi- generational
Slide 8: Brand Power
Slide 9: BBW Is Beloved
BBW IS BELOVED Well-Known Multi-Generational Emotional Trusted Extendable 0 Aided Brand oO Purchase consideration* 93% Awareness* 76% of those aware MULTIPLE OCCASIONS BALANCE DESTINATION-DRIVEN BUSINESS SEASONALITY** of visits to experience ~80% locations are © Planned and the top Jan-Mar fi Jul-Se
Slide 10: BBW Has Diverse and Highly Coveted Consumers
BBW HAS DIVERSE AND HIGHLY COVETED CONSUMERS Build-A-Bear appeals to a broad demographic market with strong purchasing power and brand loyalty Ove! IMM anni oe @ Household Profile weatteg =e pill 70% have children giving us reach ~40% ~40% ~20% Interests include: Eating out, books /reading, visting
Slide 11: Billion Annual Media and PR Impressions
13 BILLION ANNUAL MEDIA AND PR IMPRESSIONS Build-A-Bear IS pop culture; iconic status drives media exposure. Our brand is regularly mentioned on popular TV shows, movies and in celebrity news
Slide 12: BBW Co-Brands with Leading Licenses
BBW CO-BRANDS WITH LEADING LICENSES License relationships with over 75 world-class collaborators from film, TV, art, games, sports and more support affinity and gifting b with appeal to exp: demographics...yet BBW is a brand unto itself providing balanced sales eitay otk FROZEN qproiclss WAR, Deupp
Slide 13: Proven Strategy & Dynamic Multi-Channel Business Model
if A & a 4 > i he <a €}rroven STRATEGY & DYNAMIC MULTI-CHANNEL BUSINESS MODEL
Slide 14: BBW Harnesses Brand Equity and Technology to Drive Growth
BBW HARNESSES BRAND EQUITY and TECHNOLOGY TO DRIVE GROWTH BBW operates a dynamic “circle of model to efficiently create consumer touchpoints using our one-to-one experience locations, data capture and advanced digital analytics & communications capabilities to increase lifetime value across a variet
Slide 15: BBW Has Competitive Dynamic Business Model
CONSUMER ACCESS: its one:one personalized locations have ~80% first-party data/loyalty program capture rate providing tremendous access to re- engage directly with guests BBW HAS COMPETITIVE DYNAMIC BUSINESS MODEL BBW is known for experiences. BBW MORE BUSINESS CONTROL: BBW uses proprietary data to
Slide 16: Execution of 2022 Strategy Delivering Another Record Year
EXECUTION OF 2022 STRATEGY DELIVERING ANOTHER RECORD YEAR Disciplined and agile execution of strategic pillars which provide a foundation, delivering record-setting results in FY2022 and a platform to leverage for further growth DIVERSIFIED EXPERIENCE & BUSINESS MODELS EXPANDED CATEGORIES & CONSUMER
Slide 17: Experience Locations Build Brand and Support E-commerce
EXPERIENCE LOCATIONS BUILD BRAND and SUPPORT E-COMMERCE Award winning concept enjoys >25% average contribution margin and ~100% of our “experience locations” were EBIT positive and generate meaningful cash flow for the company ion guests enter an experience location mn exgerience builds tures signif
Slide 18: Experience Locations Have Diverse Formats and Models
EXPERIENCE LOCATIONS HAVE DIVERSE FORMATS AND MODELS ‘GREENFIELD OPPORTUNITY FOR ADDITIONAL LOCATIONS Opened over 20 new locations in 2022 including sites such as Six Flags Magic Mountain and the Pro Football Hall of Fame; expect to add 20-30 locations through combination of corporately-operated and
Slide 19: E-commerce Growth Includes Expansion of Consumer Base
E-COMMERCE GROWTH INCLUDES EXPANSION OF CONSUMER BASE Rather than “digitizing” the BBW “physical” experience, BBW extended the reach and size of our market with diverse consumer segments including teens, adults, gift-givers, brand enthusiasts and collectors with new licensed relationships, experienc
Slide 20: Diverse Digital Experiences Appeal to Variety of Guests
DIVERSE DIGITAL EXPERIENCES APPEAL TO VARIETY OF GUESTS Buildabear.com offers various online shopping experiences and product options to meet the preferences of diverse consumer segments for multiple occasions and products THE-BEAR-BUILDER Guided process reflecting ‘3 familiar Build-A-Bear shopping
Slide 21: BBW Business Is Enhanced by Profitable E-commerce Platform
BBW BUSINESS IS ENHANCED BY PROFITABLE E-COMMERCE PLATFORM Over 135% growth in digital demand in FY 2022 vs. pre-pandemic FY2019 E-commerce strong in both US and UK Expanded digital marketing technology enables efficient targeting of broadened consumer segments to drive e-commerce demand Salesforce
Slide 22: Business Strength and Momentum
Slide 23: 2022 Financial Snapshot
2022 FINANCIAL SNAPSHOT TOTAL REVENUES PRE-TAX INCOME $467.9MM $61.9MM HIGHEST IN COMPANY'S HISTORY +$11.2MM OVER 2021 +$82.1MM OVER 2020 23
Slide 24: Continued Momentum in Fiscal 2023
CONTINUED MOMENTUM IN FISCAL 2023 1H 2023 DELIVERED RECORD-SETTING RESULTS TOTAL REVENUES PRE-TAX INCOME $229.3MM $29.8MM Highest 1H in company history Highest 1H in company history 8.3MM IN 1H Vs $25.8MM IN 1H 2022 2023 GUIDANCE TOTAL REVENUES PRESAKINGAIE -79/,* are +10%-15% With growth in all 3 o
Slide 25: Current Management Led Successful Business Turnaround
CURRENT MANAGEMENT LED SUCCESSFUL BUSINESS TURNAROUND ‘TOTAL REVENUES 2022 highest level in over a decade nao Siei9. mae | LC PROFITABLE STORES In North America ‘sol crponcevoperned stores Dat are praiaie “100% ; L 2012 2022 EBITDA Nearly $100MM swing in profitability iam s74a a | $25.4 2012 2022 LO
Slide 26: Experienced Management Drives Results with Focus on Future
EXPERIENCED MANAGEMENT DRIVES RESULTS WITH FOCUS ON FUTURE + Proven, resilient and results-driven team successfully led company through a financial turnaround and economic uncertainties including COVID with decades of brand, marketing, toy, sourcing and retail experience + Over eight years as a team
Slide 27: Continued Focus on Shareholder Return
CONTINUED FOCUS ON SHAREHOLDER RETURN * Second special dividend declared on 3/8/2023 by Board of Directors reflecting ongoing commitment to continue to return value to shareholders in the form of stock repurchases and dividends, which have totaled over $80 million during the past seven quarters Cy \
Slide 28: BBW in Review
BBW IN REVIEW @ BRAND POWER PRESENTS MONETIZABLE OPPORTUNITIES PROVEN STRATEGY AND DYNAMIC BUSINESS MODEL DIVERSIFIES REVENUE BUSINESS STRENGTH AND MOMENTUM SUPPORTS PROVEN STRATEGIC INITIATIVES BBW’S UNIQUE COMPETITIVE POSITION, GROWTH OPPORTUNITIES AND SIGNIFICANT CONTROL OVER ITS FUTURE HAS BEEN
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