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, September 2023
Slide 1: Investor Update September 2023
INVESTOR UPDATE SEPTEMBER 2023
Slide 2: Forward Looking and Cautionary Statements
FORWARD LOOKING AND CAUTIONARY STATEMENTS 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 event
Slide 3: Executive Summary
é> EXECUTIVE SUMMARY
Slide 4: Build-A-Bear Workshop, Inc. (NYSE: BBW)
BUILD-A-BEAR WORKSHOP, INC. (NYSE: BBW) Started as a mall-based vertical kid’s retailer…Pivoted to become a brand that monetizes equity via multiple channels, categories, consumers and content In 1997, we pioneered experiential retail for kids Today, we are a MULTI-CHANNEL, SITE-BASED EXPERIENCE and
Slide 5: BBW Recent Results
BBW RECENT RESULTS 1H 23 delivered record-breaking performance… On top of record-breaking performance in FY2022 and FY2021 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 G
Slide 6: BBW Snapshot: By the Numbers
BBW SNAPSHOT: BY THE NUMBERS 25+ ~225MM 93% 20MM+ YEARS OF Brand First Party EMOTIONAL Furry Friends Sold Data Contacts, Social Media Since Inception Awareness* Followers & Loyalty Members CONNECTIONS ~500 ~35% 50MM+ ~100% Experience Locations of Experience Locations Of Locations Visitors Per Year t
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
BRAND POWER
Slide 9: BBW Is Beloved
BBW IS BELOVED Well-Known Multi-Generational Emotional Trusted Extendable Aided Brand 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 occasion is a birthday
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 : Over 50MM annual visitors to experience locations each year. BBW guest profile: Wide interest across ages Household Profile ~70% have children giving us re
Slide 11: 13 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 © 2023 Build-A-Bear Annual media and PR impressions exceeded 10B in 2020 and 2021. Increased to 13B in 2022
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 enthusiast, collectible, affinity and gifting businesses with appeal to expanded consumer demographics…yet BBW is a brand unto itself providing balanced
Slide 13: Proven Strategy & Dynamic Multi-Channel Business Model
PROVEN 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 engagement” model designed to efficiently create multiple consumer touchpoints using our one-to-one experience locations, data capture and advanced digital analytics & communications capabilities to increase
Slide 15: BBW Has Competitive Dynamic Business Model
BBW HAS COMPETITIVE DYNAMIC BUSINESS MODEL Vertical experience locations give direct consumer access and more business control CONSUMER MORE BUSINESS ACCESS: STRATEGIC BRAND CONTROL: BBW is known for INSIGHTS BBW uses its one:one proprietary data to PRODUCT personalized design/develop DEVELOPMENT ex
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 TRANSFORMED EXPANDED DIVERSIFIED DIGITAL CATEGORIES & EXPERIENCE & CAPA
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 Over 50 million guests enter an experience location per year. The iconic
Slide 18: Experience Locations Have Diverse Formats and Models
EXPERIENCE LOCATIONS HAVE DIVERSE FORMATS AND MODELS Cruise Traditional Tourist Concourse Seasonal Vending Event/Temp BAB Walmart Ships Model Locations Model Locations Machines Locations Adventure Model GREENFIELD OPPORTUNITY FOR ADDITIONAL LOCATIONS • Opened over 20 new locations in 2022 including
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 Top landing page for Guided process reflecting Interactive animated digital G
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 • Salesforce technology expanding loyalty and efficient targeting of broadened consumer
Slide 22: Business Strength and Momentum
BUSINESS STRENGTH AND MOMENTUM
Slide 23: 2022 Financial Snapshot
2022 FINANCIAL SNAPSHOT THE MOST PROFITABLE YEAR IN BBW HISTORY TOTAL REVENUES PRE-TAX INCOME $467.9MM $61.9MM HIGHEST IN COMPANY’S HISTORY +13.7% OVER 2021 +$11.2MM OVER 2021 +83.3% OVER 2020 +$82.1MM OVER 2020 YEAR-END CASH AND GROSS PROFIT MARGIN EQUIVALENTS 52.5% $42.2MM VS 53.0% IN 2021 VS $32.
Slide 24: Continued Momentum in Fiscal 2023
CONTINUED MOMENTUM IN FISCAL 2023 1H 2023 DELIVERED RECORD-SETTING RESULTS TOTAL REVENUES PRE-TAX INCOME EBITDA $229.3MM $29.8MM $35.9MM Highest 1H in company history Highest 1H in company history Highest 1H in company history VS $218.3MM IN 1H 2022 VS $25.8MM IN 1H 2022 VS $32.1MM IN 2022 2023 GUID
Slide 25: Current Management Led Successful Business Turnaround
CURRENT MANAGEMENT LED SUCCESSFUL BUSINESS TURNAROUND TOTAL REVENUES EBITDA DIGITAL DEMAND 2022 highest level in over a decade Nearly $100MM swing in profitability Digital revenue has grown to $65MM In millions In millions % of Net Retail Sales $467.9 $74.4 15% $384 4% 2012 2022 2 2012 2022 PROFITAB
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 • As
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 CO
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