Bed Bath & Beyond Results Presentation Deck slide image

Bed Bath & Beyond Results Presentation Deck

FISCAL 2020 Q4 HIGHLIGHTS Q4: third consecutive quarter of comparable sales & profit growth; strong operating and financial performance Consistently Executing on Transformation Strategy 3rd Consecutive Quarter of Comp Sales Growth +4% Total Enterprise • +6% Bed Bath & Beyond (BBB) banner¹ Digital comp sales drive quarterly performance • +86% Total Enterprise; +99% BBB banner¹ • 3.1mn new digital customers; +96% vs FY 19 Q4 2mn customers placed a BOPIS order; BOPIS represented 17% of digital sales ● 32.8% Adjusted Gross Margin, +20bps vs FY 19 Q4, offsetting impact of industrywide freight challenges and digital growth 6.4% Adjusted EBITDA Margin, +160bps vs FY19 Q4, reflecting a healthier and more profitable core business $76mn in Operating Cash Flow from working capital improvements. Free Cash Flow of $62mn Strong cash and liquidity balances $1.4bn Cash & Investments $2.1bn Total Liquidity³ ● Strengthening Financial Resilience ● $422mn reduction in Inventory, 20% lower vs FY19 Q4, driven, in part, by banner divestitures and store fleet optimization -$1bn reduction in Gross Debt4, including reduction in operating and finance lease liabilities and reduction in debt mostly from bond tender offers Note: Adj. EBITDA, and adj. gross margin are non-GAAP financial measures. For a reconciliation to comparable GAAP measures, see Appendix of this presentation. (1) Bed Bath & Beyond is among the Company's four core banners. BED BATH & BEYOND (2) Free Cash Flow is a non-GAAP financial measure. Free Cash Flow of $62mn includes cash flow provided from operations of $76mn less cash flow used in investing of $14mn, inclusive of $66mn of CAPEX. ¤¯¤ Unlocking Shareholder Value 5th non-core banner divestiture completed (Cost Plus World Market) $375mn in capital return to shareholders • 2 accelerated share repurchase programs (ASR-1 $225mn complete, ASR-2 $150mn to be completed week of 4/19/21) ● -16mn total shares repurchased at an estimated average price of $23 per share, representing -13% of shares outstanding (3) Total Liquidity includes cash & investments and the Company's asset-based revolving credit facility. (4) Gross Debt includes bonds, borrowings under the Company's asset-based revolving credit facility, and operating and finance lease liabilities 6
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