Investor Day 20161

Investor Day 20162

Hebron, Ohio

Facility

Welcome to Investor Day!

Westerville, Ohio

Facility

Investor Day 20163

Operations

Investor Day 20164

Operations – Westerville, OH

• Total campus is ~90k sq. ft.

• In 2015, production/warehouse expanded from 24k sq. ft. to 56k

• Produce ~54MM cookies, brownies, and cakes

• Current capacity to produce ~90MM

• 7 acres of undeveloped land can provide an incremental 64k sq. ft. of production

• 220 different flavors/food components

• GFSI SQF Level 3 certified

Investor Day 20165

Operations – Obetz*, OH (*leased facility)

• 173k total sq. ft.• Gift production – 43k sq. ft.• Warehouse – 89k sq. ft.

• Assemble approximately 2.5MM gifts per year• 2.25MM for Cheryl’s• 250k for 1-800-Flowers

• 3,800 unique sku’s assembled annually

• > 100k logo and custom gifts

• GFSI SQF Level 2 certified

Investor Day 20166

Peak Production July-December

• Westerville 2 shifts July-Dec• Obetz 2 shifts Sep-Dec• Workforce grows from ~250 to ~900 employees• Raw material usage

• 850k lbs. of butter• 1MM lbs. of sugar• 400k lbs. of eggs• 42k gallons of vanilla

• Biggest Day for gift assembly – 41k gifts• Biggest day for shipments – 150k gifts• Pre-assemble ~80% of the gifts

Investor Day 20167

Marketing

Investor Day 20168

Marketing

Traffic By Device

• 70% Desktop

• 30% Mobile

Investor Day 20169

Marketing

• 130M Emails Delivered

• 863K Paid Search Ad Visits

• 247K Display Banner Visits

• 298K Affiliate Partners Visits

• 772K Organic Search Visits

Investor Day 201610

Marketing

• 1.1M House File

• Circulation:

• Total Catalog 7.2M

• Total Pages 306M

• 64.5M FSI impressions

Investor Day 201611

Merchandising

Investor Day 201612

Merchandising

• 260 unique gifts for holiday selling season; prices ranging from $5.99 to $249.99

• Largest Categories: Signature Bow Boxes and Gift Towers

• Top selling item: Bow boxes > 250k per year

• Growth categories: Birthday, Kids, Sympathy

• Personalization launched in 2016

• Sku rationalization on food product February 2016

Some Key Initiatives for FY17:

• Everyday Gifting growth

• Introduce new club offerings

• Full year Gluten Free

• Full year personalization