Slide 1: Investor Deck 2022
Investor Deck 2022
Slide 2: Forward Looking and Cautionary Statements
FORWARD LOOKING AND CAUTIONARY STATEMENTS 2 This presentation contains certain statements that are, or may be considered to be, “forward-looking statements” for the purpose of federal securities laws, including, but not limited to, statements that reflect our current views with respect to future eve
Slide 3: Executive Summary
F) EXECUTIVE SUMMARY
Slide 4: A Diversified Company with a Multi-Generational Brand
A DIVERSIFIED COMPANY WITH A MULTI-GENERATIONAL BRAND 35% of stores arenot located in atraditional mall United States 352 127 International 3,500+ Associates Known, emotional and leverageable brand equity NEARLY 500GLOBAL LOCATIONS* MULTI-GENERATIONALAPPEAL DEEP AND EXTENSIVELICENSING RELATIONSHIPS
Slide 5: Key Investor Considerations
KEY INVESTOR CONSIDERATIONS Accomplished team created an expanding and profitable business now focused on delivering sustained diversified and profitable growth Returned business to profitability while simultaneously building infrastructure to support a multi-dimensional, digital, growing business w
Slide 6: Celebrating Our 25th Anniversary in 2022
CELEBRATING OUR 25TH ANNIVERSARY IN 2022 Started as a specialty retailer that became a powerful consumer brand Now positioned as an evolved thriving entity that is poised for a compelling future 2022 & moving forward MORE than malls: ~1/3 of stores arein non-traditional locationsMORE than plush toys
Slide 7: Beloved Iconic Brand
€:) BELOVED ICONIC BRAND
Slide 8: Build-A-Bear Is a Powerful Brand
BUILD-A-BEAR IS A POWERFUL BRAND ~80% aided brand awareness (US Moms of Kids ages 2-12) ~80% of those surveyed said Build-A-Bear was “distinctive” Other retail brands include American Girl, Disney, 5 Below, Claire’s and LEGO Contributing to balancedbusiness seasonality* Jan-Mar Jul-Sep Apr-Jun Oct-D
Slide 9: Diverse and Highly Coveted Consumers
DIVERSE AND HIGHLY COVETED C ONSUMERS Build-A-Bear is uniquely positioned to reach a targeted demographic market with strong purchasing power Wide interest across ages Educated with spending power: Professional careers, Appx 70% attended college Over 80% arehomeowners Approximately 70%are married <$
Slide 10: Extending Reach to Diverse Consumer Segments
Our objective is to extend the reach and size of diverse consumer segments through expanded products and licensed relationships, experiences, occasions, partnerships and marketing activities STRATEGIC SHIFT TO CAPTURE OUR SHARE OF DIGITAL ECONOMY RETAIL STORES E-COMMERCE PRIMARYTARGET SECONDARYTARGE
Slide 11: Build-A-Bear Gets Noticed
BUILD-A-BEAR GETS NOTICED Over 10 Billion media impressions in 2021 (and 2020) 11 © 2022 Build-A-Bear Workshop, Inc.
Slide 12: Build-A-Bear Is Pop Culture
BUILD-A-BEAR IS POP CULTURE Our brand is regularly mentioned on popular TV shows, movies and in celebrity news 12 © 2022 Build-A-Bear Workshop, Inc.
Slide 13: Build-A-Bear Partners with Leading Brands
BUILD-A-BEAR PARTNERS WITH LEADING BRANDS License relationships with over 75 world-class collaborators from film, TV, art, games,sports and more support collectible, affinity and gifting business with appeal toexpanded consumer demographics 13 © 2022 Build-A-Bear Workshop, Inc.
Slide 14: Strong Affinity and Brand Loyalty
STRONG AFFINITY AND BRAND LOYALTY – HIGHLY MONETIZABLE “When you buysomething at Build-A-Bear… there’s an emotionalattachment …The thingabout Build-A-Bear is thatit isn’t just for kids.Whatever you’re into, andwhatever your age, Build-A-Bear probably has astuffed animal accessoryfor you.” Consumers'
Slide 15: Growing Omnichannel Revenue Model
GROWING OMNICHANNEL REVENUE MODEL
Slide 16: A Model of Continuous Engagement
A MODEL OF CONTINUOUS ENGAGEMENT …EVEN IN THECOVID DISRUPTION Leverage the POWER andEMOTIONAL CONNECTIONCREATED by THE ONE-TO-ONEretail guest engagement & marketingmodel to DRIVE BRAND EQUITY RETAIL MONETIZE the earnedBRAND EQUITY inCATEGORIES &CHANNELS beyondtraditional “retail” BRAND EQUITY BRAND
Slide 17: Profitable Stores Build Brand and Support Omnichannel
PROFITABLE STORES BUILD BRAND AND SUPPORT OMNICHANNEL 97% of corporately-managed stores inNorth America were profitable in 2021 with over 25% average store contribution and 99% were EBITDA positive with an average rate of 28% Iconic hands-on store experience builds emotionalconnection and brand awar
Slide 18: Our Experiences Create Memories
OUR EXPERIENCES CREATE MEMORIES Plan a family visit tobuild (stuff) a furryfriend for an engagingexperience that formsan emotionalconnection and makesa shared specialmemory Celebrate specialoccasions withfriends and loved onesincluding birthdays andholidays. Host a "Build-A-Party" for a sharedgroup
Slide 19: Global Locations with Expansion Opportunities
GLOBAL LOCATIONS WITH EXPANSION OPPORTUNITIES Corporately-managed and third-party retail locations in North America and Europe;International franchise stores in South America, Africa, Asia and Australia India (11) South Africa (20) Australia (19) Chile (6) US (352) Canada (11) China (10) Middle East
Slide 20: Diverse Digital Experiences
DIVERSE DIGITAL EXPERIENCES Build-A-Bear offers various online shopping experiences and product options to meetthe preferences of diverse consumer segments for multiple occasions Third party marketplacesallow consumers to shoponline at their preferred site Slightly cooler and slightlyedgier, while s
Slide 21: Growing and Profitable E-Commerce Platform
GROWING AND PROFITABLE E-COMMERCE PLATFORM 2021 digital demand of $73MM representing a 34% CAGR since 2016 E-commerce in both US and UK Positive site traffic trends +30% over prior year*Unique visitors average ~2.6M/month**Site visits average ~4.2M/month** Addition of Salesforce technology expanded
Slide 22: Digital Marketing Capabilities Driving E-Commerce
DIGITAL MARKETING CAPABILITIES DRIVING E-COMMERCE DIGITALTRAFFIC OPTED-INEMAIL LIST ECOMMERCE DRIVEN BY DIGITAL ADVERTISING +13% +16% +47% INCREASE IN IMPRESSIONSDRIVEN BY DIGITAL ADVERTISING +122% INCREASE IN GOOGLE SEARCHFOR "BUILD-A-BEAR" IN US +32% Traffic driven with messaging to over 12MM opte
Slide 23: Diverse Formats and Business Model Options
DIVERSE FORMATS AND BUSINESS MODEL OPTIONS • Multiple formats serving a wide range of locations including tourist, traditional malls, shop-in-shops including Walmart, seasonal venues or event locations• Can operate for days (events such as the NFL Experience), weeks (Gaylord seasonal shops) to month
Slide 24: Not Overstored: Future Growth Planned in North America
NOT OVERSTORED: FUTURE GROWTH PLANNED IN NORTH AMERICA Build-A-Bear can match the real estate opportunity with the business model andstore format to optimize profitable growth with plans to add 15-20 locations overthe next 2-3 years in North America through a combination of corporately-managedand th
Slide 25: Leveraging Brand Strength: Outbound Licensing
LEVERAGING BRAND STRENGTH TO DIVERSIFY REVENUE STREAMS OUTBOUND LICENSING leverages the emotional connection and trust that consumers have for Build-A-Bear allowing for expansion into non-plush products sold in other retailers 25 © 2022 Build-A-Bear Workshop, Inc.
Slide 26: Leveraging Brand Strength: Content & Entertainment
LEVERAGING BRAND STRENGTH TO DEVELOP CONTENT & ENTERTAINMENT The emotional connection with the brand makes content and story-telling a central part of consumer engagement. Build-A-Bear Entertainment creates original music, videos and movies in partnership with leaders in the entertainment industry t
Slide 27: Financials
FINANCIALS
Slide 28: 2021 Financial Snapshot
2021 FINANCIAL SNAPSHOT TOTAL REVENUES $411.5MM +61.2% OVER 2020+21.6% OVER 2019 PRE-TAX INCOME +$70.9MM OVER 2020+$49.1MM OVER 2019 HIGHEST IN NEARLY25-YEAR HISTORY CASH AND EQUIVALENTS $32.8MM* +$34.8MM 2020+$26.7MM 2019 GROSS PROFIT MARGIN 53.0% +1,480 BPS VS 2020+760 BPS VS 2019 THE MOST PROFITA
Slide 29: Current Management Led Successful Business Turnaround
CURRENT MANAGEMENT LED SUCCESSFUL BUSINESS TURNAROUND $384 $411.5 2012 2021 In millions TOTAL REVENUES 2021 highest level in over a decade EBITDA Over $85MM swing in profitability PROFITABLE STORES In North America LOCATION DIVERSIFICATION More than doubled non-traditional locations AVERAGE DOLLARS
Slide 30: Capital Markets Summary
CAPITAL MARKETS SUMMARY* Board authorized a share repurchase program of up to$25MM effective through November 30, 2023 Exchange and Ticker NYSE: BBW Corporate Headquarters St. Louis, MO 15.4MM 16.1MM $23.34 / $4.09 $284.1MM $0 Basic Shares Outstanding* Diluted Shares Outstanding* 52 Week High/Low Ma
Slide 31: Accomplished & Driven Team Focused on Diversified Growth
ACCOMPLISHED & DRIVEN TEAM FOCUSED ON DIVERSIFIED GROWTH
Slide 32: 2020: Rapid and Disciplined COVID Response
2020: RAPID AND DISCIPLINED COVID RESPONSE Focused immediately onpreserving CASH andreducing EXPENSES Shifted to VIRTUALworkforce at HQ Pivoted to manage TRIPLE-DIGITincrease in e-commerce demand Furloughed over 90% of workforce;Salaries temporarily reduced for all others Simultaneously executed key
Slide 33: 2021: Shift to Delivering Profitable Growth
2021: SHIFT TO DELIVERING PROFITABLE GROWTH Further acceleration of digital transformation Leverage financial position to drive growth Expand digital capabilities and drive optimization across the entire organization to grow revenues and improve profitability including content and entertainment init
Slide 34: 2022: Plans for Sustained Profitable Growth
2022: PLANS FOR SUSTAINED PROFITABLE GROWTH Increase repeat purchases leveraging the addition of new advanced digital capabilitiesExpand addressable consumer base beyond kids with new products and incremental purchase occasionsUtilize digital media, content & entertainment as marketing and brand-bui
Slide 35: 2022: Select Planned Initiatives
2022: SELECT PLANNED INITIATIVES Leverage omnichannel capabilitieswhile evolving retail experiences Leverage financial strength and drive sustained profitability Leverage ongoing digitaltransformation to drive growth …To reach more consumersDrive lifetime value: leverage advanced capabilities includ
Slide 36: Proven Management Team
PROVEN MANAGEMENT TEAM Sharon Price John President and Chief Executive Officer Former President of Stride Rite Children’s Group LLC,a division of Wolverine World Wide, Inc. Also: Hasbro,Inc., VTech Industries, Inc. and Mattel, Inc. Eric Fencl Chief Administrative Officer,General Counsel and Secretar
Slide 37: Accomplished Board of Directors
ACCOMPLISHED BOARD OF DIRECTORS George Carrara Director Narayan Iyengar Director Maxine Clark Director and Founder Sharon Price John Director, President and Chief Executive Officer Director Robert L. Dixon Jr. Non-Executive Chairman Craig Leavitt Lesli Rotenberg Director Former CEO/Director: Kate Sp
Slide 38: Build-A-Bear in Summary
BUILD-A-BEAR IN SUMMARY Highly profitable business with strong profit marginsand significant cash resources Strong brand that connects emotionally with global reach Poised for future advancement with an established platformreaching broad consumer segments through a diversified omnichannelbusiness mo
Slide 39: Explanatory Note on Non-GAAP Financial Measures
Explanatory Note on Non-GAAP Financial Measures 39 © 2022 Build-A-Bear Workshop, Inc. Build-A-Bear Workshop (NYSE: BBW) reports it financial results in accordance with generally accepted accounting principles (GAAP). We have supplemented the reporting of our financial information determined in accor
Slide 40: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures: 40 © 2022 Build-A-Bear Workshop, Inc. $ in millions Q4 FY21 FY21 Income before income taxes (pre-tax) $20.1 $50.7 Interest $0 $0 Depreciation & Amortization $3.2 $12.3 Earnings before interest, taxes, depreciation and amortization (EBITDA) $23.3 $63.0
Slide 41: Reconciliation of Non-GAAP Measures: Fiscal 2020 and 2019
Reconciliation of Non-GAAP Measures:Q4 and Fiscal 2020; Q4 and Fiscal 2019 41 © 2022 Build-A-Bear Workshop, Inc. $ in millions Q4 FY20 FY20 Income before income taxes (pre-tax) $10.8 ($20.2) Interest $0 $0 Depreciation & Amortization $3.3 $13.2 Earnings before interest, taxes, depreciation and amort
Slide 42: Buildabear.com
Buildabear.com