#1BED BATH & BEYOND ZZAS FE July 8, 2020 Fiscal 2020 Q1 Results (March 1st - May 30th) BED BATH & BEYOND#2forward looking statements This presentation contains forward-looking statements, including, but not limited to, the Company's progress and anticipated progress towards its long-term objectives and the success of its plans in response to the novel coronavirus (COVID-19), as well as the status of its future liquidity and financial condition and potential impact and success of its strategic restructuring program. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, goal, and similar words and phrases, although the absence of those words does not necessarily mean that statements are not forward-looking. The Company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment; risks associated with COVID-19 and the governmental responses to it, including its impacts across the Company's businesses on demand and operations, as well as on the operations of the Company's suppliers and other business partners, and the effectiveness of the Company's actions taken in response to these risks; consumer preferences, spending habits and adoption of new technologies; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors across all channels; pricing pressures; liquidity; the ability to achieve anticipated cost savings, and to not exceed anticipated costs, associated with organizational changes and investments, including the Company's strategic restructuring program; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; potential supply chain disruption due to trade restrictions, and other factors such as natural disasters, such as pandemics, including the COVID-19 pandemic, political instability, labor disturbances, product recalls, financial or operational instability of suppliers or carriers, and other items; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's plans for new stores; the ability to establish and profitably maintain the appropriate mix of digital and physical presence in the markets it serves; the ability to assess and implement technologies in support of the Company's development of its omnichannel capabilities; the ability to effectively and timely adjust the Company's plans in the face of the rapidly changing retail and economic environment, including in response to the COVID-19 pandemic; uncertainty in financial markets; volatility in the price of the Company's common stock and its effect, and the effect of other factors, including the COVID-19 pandemic, on the Company's capital allocation strategy: risks associated with the ability to achieve a successful outcome for its business concepts and to otherwise achieve its business strategies; the impact of intangible asset and other impairments; disruptions to the Company's information technology systems including but not limited to security breaches of systems protecting consumer and employee information or other types of cybercrimes or cybersecurity attacks; reputational risk arising from challenges to the Company's or a third party product or service supplier's compliance with various laws, regulations or standards, including those related to labor, health, safety, privacy or the environment; reputational risk arising from third-party merchandise or service vendor performance in direct home delivery or assembly of product for customers; changes to statutory, regulatory and legal requirements, including without limitation proposed changes affecting international trade; changes to, or new, tax laws or interpretation of existing tax laws; new, or developments in existing, litigation, claims or assessments; changes to, or new, accounting standards; and foreign currency exchange rate fluctuations. The Company does not undertake any obligation to update its forward- looking statements. BED BATH & BEYOND 2#3participants BED BATH & BEYOND Mark Tritton President & CEO John Hartmann COO; President, buybuy BABY Gustavo Arnal CFO & Treasurer Joe Hartsig CMO; President, Harmon Stores Inc. 3#4BED BATH & BEYOND MARRILE ALPA Con agenda 1) COVID-19 Response / Strategic Update 2) FY 2020 Q1 Results (March 1st - May 30th) Operations Update Commercial Update 3) 4) 5) Q&A#5COVID-19 response BED BATH & BEYOND E 5#6COVID-19 RESPONSE focus on ensuring liquidity and optimizing costs Strengthen Liquidity . Executed $850mn three-year secured asset-based revolving credit facility which replaced existing $250mn unsecured credit facility BED BATH & BEYOND Adjust Capital Allocation Suspended prior plans to spend up to $600mn in fiscal 2020 for share repurchases, future dividends, and debt reduction · M ♥ • Control Operational Expenses Furloughed majority of store associates Renegotiated payment terms for goods, services and rent Managed inventory levels Reduced discretionary spend such as business travel, advertising, and expenses associated with the maintenance of stores Implemented benefits of the CARES Act Manage Inventory Levels Proactively reduced / canceled orders in response to temporary store closures Re-Prioritize CAPEX Postponed -$150mn in planned CAPEX, including store remodels Prioritized -$250mn in essential CAPEX to drive strategic growth plans, including investments in digital and BOPIS#7COVID-19 RESPONSE focus on safety and community outreach while stores were closed / as stores re-open BED BATH & BEYON BED BATH & BEYOND Protecting Associates and Customers During Q1 (March 1 - May 30): ● . . Closed all retail banner stores on March 23rd across the US and Canada excluding most buybuy BABY and Harmon Face Values stores Majority of stores remained closed for the rest of FY20 Q1 Enhancing Omni-Fulfillment Capabilities Converted -25% of Bed Bath & Beyond and buybuy BABY stores in the US/Canada into regional fulfillment centers to assign orders locally and deliver quickly Accelerated launch of BOPIS and Curbside Pickup fulfillment services 7#8COVID-19 RESPONSE creating confidence around safety BED BATH & BEYOND our new store safety plan continued 6ª social distancing wipes & sanitizer avaliable in stor what we're doing now and customer safe we follow the latest guidelines from the Center for Contr ICDC) and stand local authorites including the following precautions protective supplies BED BATH & BEYOND occupancy limits enhanced cleaning ng procedu what else to expect when we re-open We are looking forward to welcoming customers back into our stores and we are commited to promoting a safe shopping experience, including these additional precautions store hours associate health over and those at Huk Semuri NOU curbside pickup 8#9COVID-19 RESPONSE phased approached to store re-openings (June/July) Post Q1 (June 1- July 8): · Nearly all stores open Favorable response to store re-openings; Digital demand remains strong % of Stores Open to the Public: Open to Curbside: BED BATH & BEYOND Early June >60% -93% Mid-June >80% -95% Mid-July -100% -100% BED BATH & BEYOND curbside pickup now available FACE VALUES WE'RE OPEN! CURBSIDE PICKUP NOW AVAILABLE stores in your area now open! still parenting. so we're still open. BUY ONLINE by buy BABY Come in-or buy online & pick up in store or curtide pa Nataly and Updated Stone Houn Chat are mandates are forma da munclant mothers, whors, and a WORLD MARKET Ha FREE CURBSIDE PICK UP A Tasty D#10strategic update BED BATH & BEYOND E 10#11STRATEGIC UPDATE new management team with retail transformation and operational expertise BED BATH & BEYOND Mark J. Tritton President and Chief Executive Officer Gustavo Amal Chief Financial Officer and Treasurer John Hartmano Chief Operating Officer and President hyby BABY (BABY) Joe Hartsig Executive Vice President Chief Merchandising Officer and President, Haron Stones, Inc Cindy Davis Executive Vice President. Chief Brand Officer and President, Deconst Rafeh Masood Executive Vice President, Chief Digital Officer Gregg Melnick Executive Vice President Chief Stores Officer Arlene Hong Executive Vice President. Chief Legal Officer and Corporate Secretary = Former EVP and CFD at Avon, where Mr. Arnal helped lead a successful business turnaround ■ A global leader with experience managing teams across the US, EMEA, APAC and LATAM ■ Previously, CFO of International Divisions and Global Functions at Walgreens Boots Alliance; Senior positions at P&G, including CFO of India, Middle East and Africa, CFO Global Fabric and Home Care, and CFO Global Personal Beauty . Former EVP and Chief Merchandising Officer at Target Corporation 30+ years of experience in end-to-end retail industry experience Previous experience at Nordstrom, Inc., Timberland LLC and Nike, Inc. Currently serves on the board of Nordstrom, Inc. ■ . Former President and CEO of True Value Company, a leading hardware wholesaler Led True Value through a significant business transformation of its supply chain Previously, CEO of leading home improvement company Mitre 10 and COO at HD Supply, Senior positions at The Home Depot, Cardinal Health and the Federal Bureau of Investigation Former SVP & Chiel Merchandising Officer at Walgreens Boots Alliance, managing the front of store Retail Products division Led Walgreens owned brand organization and e-commerce and digital merchandising strategies 30+ years of experience in consumer brand development and retail merchandising, Senior leadership positions at Walmart, Motorola and SC Johnson; Currently serves on the board of Acosta Former EVP, Chief Digital Marketing Officer L Brands Prior to L Brands, Ms. Davis held strategic leadership positions at other leading retail and leisure brands, including Disney/ABC Television, Walmart, Inc., Sam's Club, Yum! Brands, Starwood Hotels and Hilton Hotels 30+ years building strong brands and loyal, profitable customer relationships Former Chief Digital Officer of BJ's Wholesale Club, driving digital strategy for e-commerce and omni-channel efforts Previous senior positions at Dick's Sporting Goods and at Sears Holdings Ris magazine named Masood as one of the "Top 10 Movers and Shakers" in retail in 2017 and a "Pacesetter" in retail technology in 2012 Former Chief Operations Officer, Digital and Chief Digital Officer at Bed Bath & Beyond Previously President Party City Holdings and President of Party City Retail Group Held senior positions at Dow Jones Inc. Former Chief Legal Officer and Corporate Secretary at FULLBEAUTY Brands, where she managed legal affairs for the $1 billion multi-channel retailer Previously led Amazon's legal team responsible for the North America Softlines business Served as General Counsel at Quids (an Amazon subsidiary), Ideel, Inc. and J.Crew TARGET AVON NORDSTROM NIKE Timberland Wees Boots Aliance P&G TrueValue SUPPLY MITRE 10 Walgreens Boots Alliance AA MOTOROLA Walmart SCJohnson ACOSTA Cardinal Health Disney obc starwood Television Group Hotehand Resorts Walmart Yum Hilton sams dub Lbrands ACTONTON "a bara m BJ'S DICK'S sears Party City DOW JONES fullbeauty amazon Quidsi ideell J.CREW 11#12STRATEGIC UPDATE mission, purpose & strategy BED BATH & BEYOND make it easy to feel at home PRINCIPLES: PILLARS: PURPOSE product Refine & amplify an exciting omni- channel assortment through a Millennial lens that re-builds authority and preference through differentiation and curation PROFICENCIES: PRACTICES: stay curious & bold customer inspired price Invest in & clarify compelling value through more choice at opening prices, relevant own brands, and clear price communications to sharpen our specialty for less proposition and win-back customers O reconstruct & modernize our operating model and decision-making to drive and leverage efficiency, effectiveness and profitable growth be transparent & collaborate MISSION re-establish our authority and be the preferred omni-channel home destination driven by teams consistently delivering balanced durable growth omni always promise Clarify & deepen our relationship with customers by connecting, engaging and motivating them to strengthen loyalty and lifetime value stabilize & optimize performance and decision-making driven by data, analytics and machine-learning. balancing magic and math embrace & drive change people powered place Accelerate & optimize connecting with, inspiring and energizing our customer by becoming a truly omni-always retailer to serve their preferred shopping needs invest in & construct platforms and partners that scale personal experiences, offers, content and connections act with empathy & integrity performance driven people Create & sustain a talent engine and culture that attracts, retains and develops high performance teams who consistently serve & deliver operational excellence and business results operationalize category and mission roles/management across functions, channels and partners/suppliers to align investment, activity and attention champion diversity & community BED BATH & BEYOND PERFORMANCE OVERALL EBITDA MARGIN DO TOTAL SHAREHOLDER RETURN VOICE OF THE CUSTOMER TOTAL INVESTMENT PORTFOLIO (STORES & DIGITAL) 12#13key actions planned ● STRATEGIC UPDATE ● Reduce cost of goods and drive supply chain transformation to address current gross margin pressures related to the substantial shift of sales from store to digital channels Close ~200 mostly Bed Bath & Beyond stores over the next two years under Store Network Optimization Project Focus on other SG&A expense reductions Further investments in Digital Transformation to accelerate and support growth BED BATH & BEYOND TRAN nome swret home 13#14Q1 2020 results (March 1st - May 30th) BED BATH & BEYOND E +4440 ()) 20 H 3 Fire WALAN IN MA H www. ***** THE ** **** 200 XXX Welcome TO OUR PORCH SHES#15Q1 2020 RESULTS BED BATH & BEYOND Q1 highlights • Fiscal Q1 spanned the most critical months to date of the COVID-19 pandemic - March, April and May • Maintained strong liquidity and financial flexibility driven by proactive actions to control cash burn • Strong balance sheet, ending quarter with -$1.2bn in cash and investments; Post Q1: Secured new $850mn ABL Facility for additional liquidity if needed • Net Sales impacted by store closures; ~90% of total stores remained closed during the majority of the quarter; Operated mainly as a digital business during Q1 • Gross margin impacted by channel and product mix related to substantial shift in sales to digital channels 15#16Q1 2020 RESULTS Q1 liquidity • Started FY20 Q1 with a healthy cash position (-$1.4bn as of year-end FY19) • Drew down available $236mn from unsecured revolving credit facility (March) . Actively controlled monthly cash burn (-$1.2bn as of quarter-end FY20 Q1) Post Q1, executed new $850mn secured asset-based revolving credit facility, strengthening liquidity if needed BED BATH & BEYOND FY19 Q4 vs FY20 Q1-liquidity & cash activity bridge $1.6bn $0.2bn $1.4bn $236mn FY19 YE Balance Revolver with Revolver Cash Draw Cash & Investments >$200mn March Cash Burn <$200mn April Cash Burn -neutral May Cash Burn Credit Facility Availability $1.2bn FY20 Q1 Cash Balance $1.8bn $0.6bn $1.2bn Post FY20 Q1 Cash Balance with ABL 16#17Q1 2020 RESULTS Q1 key p&l metrics • Net sales impacted by temporary store closures during COVID-19 pandemic, decreased 49% vs. FY19 Q1 · • 1 Gross Margin impacted by channel and product mix related to substantial shift in sales to digital channels, decreased -780 bps to 26.7% Adjusted SG&A expense decreased -15% driven by cost reduction interventions and COVID-19 impacts Adjusted EBITDA loss of (-$291mn); Adjusted EPS loss of ($1.96) vs. $0.12 in FY19 Q1 BED BATH & BEYOND (in millions, except per share data) Net Sales Gross Margin SG&A Expense¹ EBITDA¹ EPS - Diluted¹ Adjusted Three Months Ended Q1 2020 $1,307 26.7% $723 ($291) ($1.96) Q1 2019 Diff $2,573 -49% 34.5% -780 bps $846 -15% $125 $0.12 nm nm 17#18Q1 2020 RESULTS Q1 net sales by channel Explosive growth in Digital sales, -82%; Digital sales growth each month, supported by rollout of BOPIS and Curbside Pickup fulfillment services • COVID-19 events and temporary store closures for majority of quarter led to (-77%) in Store sales BED BATH & BEYOND Sales by Channel Digital, -2/3 Stores, -1/3 Digital Sales Growth by Month +17% March +>100% April/May 18#19Q1 2020 RESULTS gross margin Gross Margin impacted by channel and product mix created by the COVID moment related to substantial shift in sales to digital channels, 26.7% vs 34.5% in FY19 Q1 Digital sales-2/3 of total net sales Higher direct-to-customer shipping costs Higher sales of lower margin, COVID-essential product / Promotions - - BED BATH & BEYOND FY19 Q1 vs FY20 Q1-gross margin bridge 34.5% Q1'19 Gross Margin -450bps Channel Mix -780bps -330bps Product Mix 26.7% Q1'20 Gross Margin 19#20Q1 2020 RESULTS sg&a • SG&A expense decreased $169 million or 19% vs FY19 Q1, driven by cost reduction interventions and COVID-19 impacts. Adjusted SG&A expense declined -$123mn (-15%) to $723mn vs $846mn in FY 19 Q1 Initiated cost reduction interventions at end of FY 19. and early in FY 20 Q1 in response to COVID 19 BED BATH & BEYOND FY19 Q1 vs FY20 Q1-adj. sg&a bridge $846mn Q1'19 Adj. SG&A ($123mn) Payroll/ Advertising/ CARES Act $723mn Q1'20A Adj. SG&A 20#21operations update BED BATH & BEYOND E SEASHELL settalion SEASHELL effection#22OPERATIONS UPDATE enhanced omni-always shopping experience • Converted -25% of Bed Bath & Beyond and buybuy BABY stores in the US/Canada into regional fulfillment centers to assign orders locally and deliver quickly Nearly doubled digital fulfillment capacity Enabled online orders to ship in 2 days or less (average) • Accelerated launch of BOPIS and Curbside Pickup fulfillment services Expanded to -60% of total stores by end of Q1 Strong customer adoption; weekly growth in BOPIS orders - Further expansion of BOPIS and Curbside Pickup as stores re-open BED BATH & BEYOND BED BATH & BEYOND BED BATH & BEYOND 22#23OPERATIONS UPDATE optimize store network to accelerate growth · · Deep analysis of both individual store and market data Right-size real estate portfolio to reduce redundant stores and support digital-first platform Lean into store closures / leverage significant lease. expirations coming due BED BATH & BEYOND Optimal demand- driven omni-channel. store network by market and banner Plan to close -200 mostly Bed Bath & Beyond stores over the next 2 yrs. Expect unfavorable impact to topline; upside opportunity on EBITDA Drive cost productivity and continuous improvement efforts 23#24OPERATIONS UPDATE e2e redesign roadmap DG LYCO Product / Assortment Vendors Product / Assortment BED BATH & BEYOND oog) Stores End to End Supply Chain Customers#25· OPERATIONS UPDATE • BABY teams excelled in creating a positive customer experience and providing the essential items customers need to care for their families Quickly shifted marketing approach to support the growing online demand • Led the Company's pilot and standup of BOPIS / Curbside Pickup services Strong online demand in categories such as: toddler food, safety equipment, playroom items, and sleepwear . buybuy BABY an "essential" retailer during pandemic BED BATH & BEYOND buy buy BABY You've got the baby. We've got the best brands. Shop now 25#26commercial update BED BATH & BEYOND E BED BATH & BEYOND BED BATH BEYOND Reusable & Recyclable tanda fram 1 125) vwyvind Samml 1 jam tubid BED BATH& BEYOND Beyond any store of its d. www.bedbathandbeyondm Ple Please reuse or recycle this bog of a participating store LOVE TORTA B#27COMMERCIAL UPDATE actions taken to address changing business conditions . Partnered with vendors to increase and expedite products that met customers' changing needs Re-routed product from stores to web warehouses, and converted stores into regional fulfillment centers in order to support web orders Adjusted marketing spend that was focused on driving store-only traffic • Modified product purchase orders in order to reduce exposure and manage costs. . BED BATH & BEYOND 27#28COMMERCIAL UPDATE capitalizing on digital demand • Increased investments in search, paid social and affiliate marketing to reach new customers online Focused attention on website, modernizing the look, feel and voice to align more closely with new branding • Built out more robust reporting to identify inventory challenges, and stood up working teams to pivot in real time Incorporated key learnings about customer behavior through detailed site metrics from partners like Pinterest to optimize merchandising and messaging • Engaged new and current customers through digital marketing, and delivered on promise by accelerating the rollout of BOPIS and Curbside delivery Customers responded to categories that make it easy to feel at home, particularly in the areas of Kitchen, Bed, Baby, Home Cleaning and Outdoor BED BATH & BEYOND 28#29COMMERICAL UPDATE rebuilding merchandising authority with customers BED BATH & BEYOND GI ↑ rebuild authority in the home owned brand category profits inventory management Start in Destination categories (Bed, Bath, Kitchen) with Category Experience Resets Create an Owned Brand Portfolio that drives differentiation, consumer delight and value Fund growth through assortment optimization reviews and supplier profitability actions across omni-channel portfolio Enhance in-stock levels and working capital savings by improved inventory balancing across our networks 29#30COMMERICAL UPDATE simplifying value offer around specialty for less BED BATH & BEYOND Ⓒ |N strategic value roles localized pricing dynamic pricing promotional optimization Deliver on price/value equation Leverage sales pattern analytics to optimize for margin opportunities Keep select digital assortment competitively priced and on strategy Develop end-to-end processes, analytics and tools to optimize investments and drive profitable sales-driving promotions 30#31wrap up BED BATH & BEYOND www 31#32WRAP UP investment highlights 1 Leading home furnishings retailer with significant scale and market share - make it easy to feel at home BED BATH & BEYOND 2 Strong liquidity position including recent initiatives around FY 2020 cash preservation and new ABL Facility 3 Transformation underway with cost interventions and investments in capabilities to re-establish authority in Home space; Expect to generate future annualized savings of between $250 and $350mn, excluding related one-time costs 4 New management team with extensive retail transformation expertise 5 Strategic growth agenda that is customer inspired, omni always, designed to deliver future market share and margin growth#33q&a BED BATH & BEYOND 33#34appendix BED BATH & BEYOND E gogo I JULY 8, 2020 34#35APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Net (Loss) Earnings per Diluted Share Reported net loss per diluted share Goodwill and other impairments, severance costs and shareholder activity costs Adjusted net (loss) earnings per diluted share LA BED BATH & BEYOND $ Three Months Ended May 30, 2020 (2.44) 0.48 (1.96) $ GA $ June 1, 2019 (2.91) 3.03 0.12 * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 first quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation tables above and that follow. 35#36APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Selling, General and Administrative Expenses Reported selling, general and administrative expenses $ Adjustments: Severance costs Shareholder activity costs Total adjustments Three Months Ended May 30, 2020 BED BATH & BEYOND 724,157 (939) (939) June 1, 2019 $ 892,754 (38,662) (8,000) (46,662) Adjusted selling, general and administrative expenses $ 723,218 $ 846,092 The Company is presenting certain non-GAAP financial measures for its fiscal 2020 first quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation tables above and that follow. 36#37APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Adjustments: Severance costs Shareholder activity costs Total adjustments Adjusted selling, general and administrative expenses as a percentage of net sales Three Months Ended Reconciliation of Adjusted Selling, General and Administrative Expenses as a Percentage of Net Sales Reported selling, general and administrative expenses as a percentage of net sales May 30, 2020 BED BATH & BEYOND 55.4 % (0.1)% - % (0.1)% June 1, 2019 55.3% 34.7 % (1.5)% (0.3)% (1.8)% 32.9 % * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 first quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation tables above and that follow. 37#38APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Net Loss to EBITDA and Adjusted EBITDA Reported net loss Depreciation and amortization BED BATH & BEYOND Interest expense, net Benefit for income taxes EBITDA Pre-tax Adjustments: Goodwill and other impairments (a) Severance costs Shareholder activity costs Total pre-tax adjustments Adjusted EBITDA $ $ $ Three Months Ended May 30, 2020 (302,291) 83,601 17,171 (175,809) (377,328) 85,261 939 86,200 (291,128) $ June 1, 2019 (371,085) 83,542 15,898 (51,655) (323,300) 401,267 38,662 8,000 447,929 124,629 (a) Goodwill and other impairments include: (1) goodwill, tradename and store asset and other impairments related to the North American Retail reporting unit; and (2) tradename impairments related to the Institutional Sales reporting unit. * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 first quarter. In order for investors to be able to more easily compare the Company's performance across periods. the Company has included comparable reconciliations for the 2019 periods in the reconciliation tables above and that follow. 38#39APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Effective Income Tax Rate Reported effective income tax rate Impact on operating loss and benefit for income taxes of goodwill and other impairments, severance costs, and shareholder activity costs Adjusted effective income tax rate Three Months Ended BED BATH & BEYOND May 30, 2020 36.8 % 1.2 % 38.0 % June 1, 2019 12.2 % 26.4 % 38.6 % * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 first quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation tables above and that follow. 39#40APPENDIX non-gaap reconciliation* (in thousands, except for share data) (unaudited) Reconciliation of Adjusted Net (Loss) Earnings Reported net loss Pre-tax Adjustments: Goodwill and other impairments (a) Severance costs Shareholder activity costs BED BATH & BEYOND Total pre-tax adjustments Tax impact of adjustments Total adjustments, after tax Adjusted net (loss) earnings Three Months Ended May 30, 2020 June 1, 2019 $ (302,291) $ 85,261 939 $ 86,200 (26,738) 59,462 (242,829) $ (371,085) 401,267 38,662 8,000 447,929 (61,387) 386,542 15,457 (a) Goodwill and other impairments include: (1) goodwill, tradename and store asset and other impairments related to the North American Retail reporting unit; and (2) tradename impairments related to the Institutional Sales reporting unit. * The Company is presenting certain non-GAAP financial measures for its fiscal 2020 first quarter. In order for investors to be able to more easily compare the Company's performance across periods, the Company has included comparable reconciliations for the 2019 periods in the reconciliation tables above and that follow.#41Home Is Everything These past few months have shown us a side of our homes we didn't know existed. We've discovered new ways to live our lives while learning how to be together under one roof. Our home is everything. It's our school, our office, our gym and our restaurants all at once. But it's even more than all that. It's our fortress, our sanctuary and our place of rest. It's where we live with our loved ones, and the things we love. It's our home. Bed Bath & Beyond: Home is Everything. BED BATH & BEYOND 55550- 41