Slide 1: Investor Presentation Q4 & Full Year 2021
Investor Presentation Q4 & Full Year 2021
Slide 2: Disclaimer
Disclaimer Notice This presentation (“Presentation”) is being issued by BuildDirect.com Technologies Inc. (the “Corporation” or “BuildDirect”) for information purposes only. Reliance on this Presentation for the purpose of engaging in any investment activity may expose a person to significant risk o
Slide 3: 2021 Operational Highlights
2021 Operational Highlights • Successful RTO to publicly list on the TSX-V following $20.5 Million private placement • Expanded Pro market share with acquisition of Mid-West U.S.-based Superb Flooring & Design • Appointed experienced omnichannel retail executive, David Lazar, as interim CEO • Appoin
Slide 4: Full Year 2021 Financial Performance
Full Year 2021 Financial Performance $90.7 M 210% $31.8 M 35.1% ($4.0) M Revenue Pro Revenue Growth Gross Profit Gross Margin Adjusted EBITDA Increased 74% y-o-y, largely Representing 63% of total Increased 59% y-o-y due to Decreased by 330 bps Decreased y-o-y due to due to acquisitions and revenue
Slide 5: Post-Full Year Highlights
Post-Full Year Highlights February 15, 2022 • Closed a secured debt financing of US $3 Million April 4, 2022: • Eyal Ofir had been appointed to the Board of Directors; and that • John Farlinger and Andrew Elbaz stepped down from their roles as Directors of the Board 5
Slide 6: BuildDirect's Pro-focused strategy in a nutshell
BuildDirect’s Reallocation of resources to focus Pro-focused on serving Pro customers strategy Drive synergies from acquired in a nutshell independent retailers Leverage heavyweight delivery capabilities Expand Pro share of wallet through omnichannel strategy 6
Slide 7: A Large TAM Opportunity
A Large TAM Opportunity 45% Total U.S. $71B Independent Retailers Flooring • Dominate the market • Missing the online channel Market 24% Big Box • Home Depot, Floor & Décor, 4% Online Lumber Liquidators • Online represents a unique opportunity in a fragmented brick and mortar market • Online sales a
Slide 8: Realigning our Costs to Support our Strategy
Realigning our Costs to Support our Strategy Review and Leverage Invest Take price as offset refresh acquisition further in to rising product sourcing purchasing servicing Pro- cost network synergies customer IMPROVING MARGIN PROFILE AND STRENGTHENING THE BOTTOM LINE 1Estimates 8
Slide 9: Acquisitions Update - Expanding our Pro market share
Acquisitions Update - Expanding our Pro market share 100% Leveraging acquisition synergies to meet B2B revenue profile the unmet needs of Pro customers Leveraging omnichannel • Management and back-end financial system efficiencies Product and service offering To deliver a seamless end-to-end quoting
Slide 10: Solid year-over-year financial performance
Solid year-over-year financial performance1 Driven by acquisition and increasing customer demand Revenue Gross Profit and Gross Margin 2 (USD millions) (USD millions) 35.1% YoY gross margin impacted by acquisition and higher supply chain costs +74% +59% 38.4% $91 $32 $20 $52 FY 20 FY 21 FY 20 FY 21
Slide 11: Strategic Outlook
Strategic Outlook Reallocation of resources to focus on serving Pro customers Drive synergies from acquired independent retailers Leverage heavyweight delivery capabilities Expand Pro share of wallet through omnichannel strategy 11
Slide 12: Appendix: Project Nevada
Appendix Project Nevada Bankers slides 12
Slide 13: Comparables
Comparables As of November 16, 2021 (USD$ millions) EV / Revenue 3Y CAGR Gross Margin EBITDA Margin eCommerce Market Cap. Enterprise Value 2021E 2022E Revenue EBITDA 2021E 2021E Chewy $31,232 $31,261 3.9x 3.5x 50.3% nmf 27.0% 0.6% Wayfair $26,505 $29,682 2.1x 2.1x 44.2% nmf 28.9% 2.8% Zalando $22,95
Slide 14: Risk Factors
Risk Factors Investing in BuildDirect.com Technologies Inc. (“BuildDirect” or the “Corporation”) involves significant risks given the early stage nature of the Corporation’s business. Prior to investing in the Corporation, prospective investors are urged to consult with their legal, investment, acco
Slide 15: Risk Factors
Risk Factors Third-Party Supply Chain Network: The Corporation sources product from around the world and sells to customers throughout North America and relies on third party ocean, freight, trucking and warehouse service providers to transport and store its products and deliver products to its cust
Slide 16: Risk Factors
Risk Factors Call Centre and Website: The Corporation’s website and call center are material elements of the Corporation’s business. Customers use the Corporation’s website to source and purchase the Corporation’s products and services. The Corporation’s website in particular is vulnerable to certai
Slide 17: Risk Factors
Risk Factors Litigation: BuildDirect may become party to litigation from time to time in the ordinary course of business which could adversely affect its business. Monitoring and defending against legal actions, whether or not meritorious, can be time-consuming, divert management’s attention and res
Slide 18: Risk Factors
Risk Factors Cybersecurity: The Corporation relies on digital and internet technologies to conduct and expand its operations, including reliance on information technology to process, transmit and store sensitive and confidential data, including personally identifiable information, and proprietary an
Slide 19: Risk Factors
Risk Factors Intellectual Property: From time to time, the Corporation may receive notices from third parties alleging that it has infringed their intellectual property rights or may need to pursue claims against third parties to defend the Corporation’s intellectual property rights. Responding and/
Slide 20: Risk Factors
Risk Factors Conflicts of Interest: The Corporation may be subject to various potential conflicts of interest because of the fact that some of its officers, directors and consultants may be engaged in a range of business activities, including certain officers, directors and consultants that provide
Slide 21: Risk Factors
Risk Factors Tax Risk: The Corporation will be considered to have been carrying on business in Canada for purposes of the Income Tax Act (Canada). However the Corporation operates in a new and developing industry that has had historically low regulations and tax compliance. There is risk that foreig
Slide 22: Risk Factors
Risk Factors Difficulty to Forecast: BuildDirect must rely largely on its own market research to forecast sales as detailed forecasts are not generally obtainable from other sources. A failure in the demand for its products to materialize as a result of competition, technological change or other fac