Build-a-bear Workshop, Inc. · NYSE:BBW
Build-a-bear Workshop — 2021 ICR Conference
31 slides from Build-a-bear Workshop's conference presentation, Jan 11, 2021
Slide 1: 2021 ICR Conference
1 2021 ICR CONFERENCE
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: Sound Strategy Even Amid COVID Disruption
BBW 3 CCVVVV CCVVVV CCVVVV SOUND STRATEGY EVEN AMID COVID DISRUPTIONDesigned to drive profitable growth and leverage and monetize brand equity to diversify revenue streams FOCUSED ON CONTINUED OPPORTUNITY IN 2021Driving results in digital transformation and retail evolution CCVVVV ACCELERATED KEY ST
Slide 4: BBW: An Iconic Brand Evolves
4 1997 2021 Build-A-Bear Workshop launches as the leading experiential retail-entertainment concept, predominately located in malls where families with children primarily went for shopping and entertainment at the time. BBW: AN ICONIC BRAND EVOLVES…. Build-A-Bear has extended BEYOND TRADITIONAL MALL
Slide 5: BBW: Snapshot
BBW: SNAPSHOT BBW 2019 5 Est. 1997Make-Your-Own Stuffed Animal Mall Retailer 2004IPO 2020 and BeyondDiversified Retailer with Evolving Business Model 2013Business Turnaround 357 Corporately-Managed Stores 57 Third-party Retail Locations 77 International Franchise Stores 3,500+ Associates Rapidly gro
Slide 6: BBW: Brand Power
BBW: BRAND POWER 6 Build-A-Bear is a brand that has consumer TRUST and LOVE Over 80% of Moms say BAB is “a brand they trust” and over 80% of kids say BAB is “fun to visit” 12% 22% 15% 25% 26% Age range 1/3 Male 2/3 Female With Broad Demographic Appeal… …and a Loyal, Passionate Consumer Base Source:
Slide 7: BBW: A Sound Strategy
BRAND RETAIL …EVEN IN THE COVID DISRUPTION 7 BBW: A SOUND STRATEGY… Leverage the POWER and EMOTIONAL CONNECTION CREATED by THE ONE-TO-ONE retail guest-engagement & marketing model to DRIVE BRAND EQUITYMONETIZE the earned BRAND EQUITY in CATEGORIES & CHANNELS beyond traditional “retail”Expand the con
Slide 8: BBW Executed a Focused and Fast Pandemic Response
BBW EXECUTED A FOCUSED & FAST PANDEMIC RESPONSE… 8 Forced to temporarily CLOSE all corporately-managed stores Focused immediately on preserving CASH and reducing EXPENSES Shifted to VIRTUAL workforce at HQ Pivoted to manage Triple-Digit increase in e-commerce demand Furloughed over 90% of workforce;
Slide 9: Accelerating Key Longer-Term Strategies in 2020
…WHILE ACCELERATING KEY LONGER-TERM STRATEGIES in 2020 9 After initially responding to and managing the immediate challenges brought by COVID, a rapid shift was made to leverage the circumstances to accelerate our strategic initiatives for long-term benefit. Resources focused in 3 areas: 1) Accelera
Slide 10: Q4-2020 Select Financial Expectations
BBW: Q4-2020 SELECT FINANCIAL EXPECTATIONS 10 * Comparisons vs Prior Year at mid-point of 2020 range;** These non-GAAP financial measures are defined and reconciled to the most comparable GAAP measure later in this document;*** Projected at end of FY2020 ($ in millions) Q4 20 Range Actual 2019 Mid P
Slide 11: FY2020 Select Financial Expectations
FY2020 SELECT FINANCIAL EXPECTATIONS 11 ($ in millions) H1-2020 H1-2019 vs PY Proj H2-2020* H2-2019 vs PY Proj FY2020* Act FY2019 vs PY Actual Actual Mid-pt of Q4 Range Actual Mid-pt of Q4 range Actual Total Revenues $87.0 $163.6 ($76.6) $164.7 $174.9 ($10.2) $251.7 $338.5 ($86.8) Gross Profit $15.6
Slide 12: 2021: Continue to Evolve Our Key Initiatives
12 2 1 3 2021: CONTINUE TO EVOLVE OUR KEY INITATIVES Further acceleration of digital transformation Rapidly evolve retail capabilities Financial stability and liquidity management Expand digital capabilities and drive optimization across the entire organization to grow revenues and improve profitabi
Slide 13: Select Initiatives
13 2 3 Rapidly evolve retail capabilities Financial stability and liquidity management 1 Accelerate the company’s digital transformation Broaden addressable market & expand consumer base with omni-channel engagement using occasion-based offerings and high-appeal licenses;Launch disruptive new digita
Slide 14: Accelerate Digital Transformation
14 2 3 Rapidly evolve retail capabilities Financial stability and liquidity management 1 Accelerate digital transformation SELECT INITATIVES 14
Slide 15: 2021: Accelerate Digital Transformation
90%+ US Aided Brand Awareness Consideration Post-Purchase Engagement Repeat Purchase Retargeting 2021: ACCELERATE DIGITAL TRANSFORMATIONAdvance overall digital capabilities across the enterprise including CRM programs Enhance digital technology & capabilities via Salesforce platform, combined with r
Slide 16: Improve Digital Marketing Capabilities and Efficiency
16 2021: ACCELERATE DIGITAL TRANSFORMATIONImprove digital marketing capabilities and efficiency 1 Use improved analytics and tools to further enhance identification of target consumers via their interests, intent and engagement including:Search, queries, ad engagement, profile and “look-alike” dataP
Slide 17: Utilize Digital Media, Content and Entertainment
17 2021: ACCELERATE DIGITAL TRANSFORMATIONUtilize digital media, content & entertainment as marketing and brand-building tools to engage consumers and drive sales 1 VALUE CREATION WHEEL Continue to focus on digital and non-traditional media communications efforts in 2021 via:A multi-dimensional mark
Slide 18: Rapidly Evolve Retail Capabilities
18 2 3 Rapidly evolve retail capabilities Financial stability and liquidity management 1 Accelerate digital transformation SELECT INITATIVES 18
Slide 19: Broaden Addressable Market with Omni-Channel Engagement
19 2021: RAPIDLY EVOLVE RETAIL CAPABILITESBroaden addressable market & expand consumer base with omni-channel engagement using occasion-based offerings and high-appeal licenses Expand digital capabilities to market broad-appeal licensed offerings and occasion-based products, to increase purchase con
Slide 20: Launch Disruptive New Digital Retail Experience
20 2021: RAPIDLY EVOLVE RETAIL CAPABILITESLaunch disruptive new digital retail experience to drive revenue and trial 2 20 THIS NEW “CYBEAR” WORKSHOP: Is designed to elevate our e-commerce platform to be a more interactive & personalized digital experience, reflecting some of the attributes of our ic
Slide 21: Introducing the New Cybear Workshop
21 CHOOSE ME STUFF ME ADD A HEART FLUFF ME DRESS ME TAKE ME HOME Introducing… 2021: RAPIDLY EVOLVE RETAIL CAPABILITESLaunch disruptive new digital retail experience to drive revenue and trial 2 Coming in 2021
Slide 22: Expand Fulfillment Capabilities
22 2 2021: RAPIDLY EVOLVE RETAIL CAPABILITESExpand fulfillment capabilities to efficiently deliver increased demand creation Ohio Warehouse Reconfiguration Shipt Same Day Delivery Buy Online Pick-up In Store Curbside Pickup Buy Online Ship From Store 2020 delivered expanded and diversified options t
Slide 23: Financial Stability and Liquidity Management
23 2 3 Rapidly evolve retail capabilities Financial stability and liquidity management 1 Accelerate digital transformation SELECT INITATIVES 23
Slide 24: Financial Stability and Liquidity Management
24 FINANCIAL STABILITY AND LIQUIDITY MANAGEMENTWe plan to maintain the financial discipline required to support our business during on-going COVID uncertainty, while making strategic investments in the future Signed 5-year $25MM credit facility agreement with PNC Bank in 2020. Disciplined Cash Manag
Slide 25: Sound Strategy Even Amid COVID Disruption
BBW 25 CCVVVV CCVVVV CCVVVV SOUND STRATEGY EVEN AMID COVID DISRUPTIONDesigned to drive profitable growth and leverage and monetize brand equity to diversify revenue streams FOCUSED ON CONTINUED OPPORTUNITY IN 2021Driving results in digital transformation and retail evolution CCVVVV ACCELERATED KEY S
Slide 26: Explanatory Note on Non-GAAP Financial Measures
Explanatory Note on Non-GAAP Financial Measures: 26 Build-A-Bear Workshop (NYSE: BBW) reports it financial results in accordance with generally accepted accounting principles (GAAP). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-G
Slide 27: Reconciliation: Projected Q4 FY20 Range and Actual Q4 FY19
Reconciliation of Non-GAAP Measures:Projected Q4 FY20 Range and Actual Q4 FY19 27 FY20 Q4 Range ($ in millions) Low High Income before income taxes (pre-tax) $4.0 $6.0 Interest $0 $0 Earnings before interest and taxes (EBIT) $4.0 $6.0 Depreciation & Amortization $3.3 $3.3 Earnings before interest, t
Slide 28: Reconciliation: First Half 2020 and 2019 Results
Reconciliation of Non-GAAP Measures:First Half 2020 and 2019 Results 28 ($ in millions) Actual H1 FY20 Actual H1 FY19 (Loss)/Income before income taxes (pre-tax) ($32.6) $1.7 Interest $0 $0 Earnings before interest and taxes (EBIT) ($32.6) $1.7 Depreciation & Amortization $6.7 $6.8 Earnings before i
Slide 29: Reconciliation: Projected Second Half 2020 and Actual Second Half 2019
29 ($ in millions) ProjectedH2 FY20 ActualH2 FY19 Income/(Loss) before income taxes (pre-tax) $6.7 ($0.1) Interest $0 $0 Earnings before interest and taxes (EBIT) $6.7 ($0.1) Depreciation & Amortization $6.5 $6.9 Earnings before interest, taxes, depreciation and amortization (EBITDA) $13.2 $6.8 Reco
Slide 30: Reconciliation: Projected Full Year 2020 and Actual Full Year 2019
Reconciliation of Non-GAAP Measures:Mid Point for Projected Full Year 2020 and Actual Full Year 2019 30 ($ in millions) ProjectedFull Year FY20 ActualFull Year FY19 (Loss)/Income before income taxes (pre-tax) ($25.9) $1.6 Interest $0 $0 Earnings before interest and taxes (EBIT) ($25.9) $1.6 Deprecia
Slide 31: Buildabear.com #celeBEARate
Buildabear.com#celeBEARate