2. Setting FLWS Investment Apart
• 1-800-FLOWERS.COM: Category Leader, Strong Brand Equity
• Growing Market Share in $16B Gourmet Food and Gift Baskets
• BloomNet Wire Service: Increasing Market Penetration & Share
• Proven Ability to Leverage Business Platform to Reduce OPEX
• Strong Balance Sheet: Generating Cash
• Early Adopter in Fast Growing Social/ Mobile Commerce
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3. Positive Trends: Growing Top and Bottom Line
•Revenue and EBITDA CAGR since FY2010 of 4%
and 10%, respectively
• 1-800-FLOWERS.COM: growing at faster rate off larger
base = extending market leadership.
• BloomNet Wire Service: increasing market penetration and
market share vs. legacy competitors
• Gourmet Food and Gift Baskets: category leader with
expanding product offering (Harry & David, Fannie May,
Cheryl’s, The Popcorn Factory, etc.), omni-channel strategy
featuring strong ecommerce growth.
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4. Mission Statement: “Deliver Smiles!”
To help you
express
yourself
perfectly
Truly
original gifts
Caring team
obsessed
with service
An easy
way to
deliver a
smile
- Any issue resolved, no
questions asked
- Award winning service
- Same-day delivery
- Call, click or come in
(multi-channel)
- Social, Mobile, Local
- Fast, easy websites (MBP)
- Truly original designs
- “Signature” gifts
- Real value and price
points for any budget
Deliver
Smiles!
- The right gift, for the
right person, at the
right time
- Helpful gift guides
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5. Business Platform – “Celebratory Ecosystem”
Floral
Gourmet Food
&
Gift Baskets
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6. Consumer Floral: 1-800-FLOWERS.COM
• Market Leadership
• Powerful Brand
• Significant Website Traffic and
Customer Database
• Social and Mobile Commerce
Early Adopter and Leader
• Innovative Merchandising
• Good, Better, Best Offerings
• “Truly Original” Designs
• Leveragable Same-Day,
Any-Day Delivery Capability
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7. BloomNet Wire Service
• World-Class Business Solutions
• Select network of retail florists utilize BloomNet’s
resources to grow their businesses profitably
• Quality & Innovation Leader
• Growing Market Penetration
• Strong Contribution Margin
• BloomNet Advantages:
• Largest Volume of Directable Orders.
• Better Value Proposition: Tiered Pricing Model.
• Expanded Suite of Products and Services:
• Industry’s First Online Digital Directory
• State-of the-Art P.O.S. Technology
• Floriology® Institute Education Center
• Website Development and Hosting
• Search & SEO Marketing Services
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9. Harry & David Acquisition
• Combines leading brands in Floral and Gourmet Food gifting.
• Creates dominant, omni-channel gift retailing company with >$1B in
revenues and ~$90MM in EBITDA.
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• Highly accretive before
any revenue and/or
operating synergies.
• Purchase price:
- $142.5MM cash
• New credit facility:
- Five-year term loan
- $200MM revolving
credit line for working
capital and other uses.
10. Multi-Brand Website Strategy
• Leverage 1-800-FLOWERS.COM Brand Equity, Web
Traffic, Customer Database, Marketing and Advertising
• Enable Gourmet Food Gift Brands to Market Year-Round
for “Every Day” Gifting Occasions
• Capture Larger Share of Customers’ Gift “Wallet”
13. Innovate & Invest for the Future
Mobile traffic is growing rapidly
iPhone App Droid App
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14. Key Strategic Priorities
• Know and Take Care of Our Customers:
• Provide the right products and services with consistent,
excellent quality and value; help our customers send
smiles everyday.
• Maintain our Financial Strength and Flexibility:
• Focus on reducing operating costs; Strengthen our
balance sheet and add flexibility to our capital structure.
• Continue to Innovate and Invest for the Future:
• Invest in Technology; Invest in our Brands; Invest in
New Growth Opportunities that position us for
enhanced future top and bottom line results.
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15. Maintain Financial Strength & Flexibility
• Proven Operating Cost Leverage
• Continued focus on OPEX cost reduction opportunities
• Improving marketing leverage/ ROI
• Strong Balance Sheet
• Managing working capital to drive strong and growing free cash flow
• Low debt ratio; significant capacity available for growth
• Flexible, low interest bank credit facility: $200MM revolver and
$142.5MM term loan
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16. Revenue & EBITDA From Continuing Operations
$ Millions Revenue EBITDA1
$644.9
$29.8
FY10
$661.4
$38.3
FY11
$707.5
$44.3
FY12
$735.5
$48.9
FY13
(1Excluding stock-based compensation; 2 Impact of Valentine snow storm; 3Guidance including Harry & David, excluding
Harry & David fiscal 2015 first quarter loss based on timing of acquisition)
6.6%
6.3%
6.0%
4.6%
$756.3
FY14
$48.22
6.4%
$1.1B3
FY15G
$90.03
8.2%
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17. Top- and Bottom-Line Growth Strategies
• Manage Those Aspects of Our Business That We Can Control
• Merchandising, Marketing, Operating Expenses
• Seek Organic Growth in Key Business Categories
• Increase Cross-Brand Marketing and Merchandising via new Multi-
Brand Platform
• Grow Omni-Channel Gourmet Food & Gift Baskets Business
• Increase BloomNet Wire Service Market Penetration
• New Business Development
• FruitBouquets.com; Fannie May Berries; Social/ Mobile Commerce
• Acquisition Opportunities
• Gourmet Food & Gift Baskets; Social Gifting; Personalization
• Enhance Profitability
• Increase Margins and Build on Revenue Growth Trends
• Drive EBITDA, EPS and Free Cash Flow
17
18. Safe Harbor Statement
Special Note Regarding Forward-Looking Statements
A number of statements contained in this presentation are forward-looking
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements involve risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in the
applicable statements. For a detailed description of these risk factors,
please refer to the Company’s Securities and Exchange Commission
filings including the Company’s Annual Reports on form 10-K and
quarterly reports on form 10Q. The Company expressly disclaims any
intent or obligation to update any of the forward looking statements
included in this presentation.
(*A Reconciliation of Net Income to EBITDA is available at the Investor
Relations section of the Company’s website at www.1800flowers.com as
part of the Company’s tables attached to its quarterly filings with the SEC
on forms 10Q and 10K as well as its quarterly results press releases.)
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19. Contact:
Joseph D. Pititto
VP Investor Relations
Phone: (516) 237-6131
E-mail: invest@1800flowers.com
NASDAQ: FLWS
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