2019Investor Presentation

M AC R O

ECONOMIC FUNDAMENTALS ARE SOLID THE HOME IS THE MOST IMPORTANT ASSET

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Personal consumption remains robust and supportive of GDP growth

Unemployment is at decade lows and wages continue to rise

Consumer confidence is near record highs

Home equity has increased more than 2x since 2011 driven by home price appreciation

Millennials are accelerating household formation as they age into prime home buying years

Falling mortgage rates should drive an improvement in housing turnover

The macro backdrop remainssupportive of consumer spendingin Home Furnishings

WE WILL CONTINUE TO TAKE SHARE AS THE ~$130B U.S. HOME FURNISHINGS MARKET REMAINS HIGHLY FRAGMENTED…

2Source: Euromonitor, the Census Bureau & third party market research

45%55%

of total revenues

~25,000COMPANIES

of total revenues

COMPANIES50T

OP

- including -

50TOP

WILLIAMS-SONOMA,INC.

I N D U S T R Y

Significant opportunity for growth in a highly fragmented market

Online growth has significantly outpaced total industry growth over the past 5 years…

…AND THE SECULAR SHIFT FROM BRICK-AND-MORTAR TO ONLINE CONTINUES

CAGR (online) ~15%

CAGR (industry) ~5%VS.

…yet, the industry remains under penetrated online

of sales from stores >80%

As the world’s largest design-led, digital-first home retailer, we are shaping the future of shopping.

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We are a digital-first company with retail stores as a competitive advantage

INT

O T

HE

FU

TU

RE

D I G I TA L - F I R S T

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E-commerce comp growth YTD

10%>55%of sales are E-commerce

online retailer in North America

25TOP

Source: 2018 Internet Retailer Top 500

UNIQUE PLATFORM multi-channel model | multi-brand portfolio | vertically integrated supply chain | leadership and culture

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We have built a highly differentiated platform to launch and scale new businesses

INT

O T

HE

FU

TU

RE

HISTORY OF SUCCESSFUL NEW BUSINESSES AND INITIATIVES

1986 1999 2003 2005 2011 2012 2017 20181956

P L AT F O R M

2001

Runwayfor growthacrossaestheticsand pricepoints Aesthetics

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WE

PB

LOW PR I C E D H I G H PR I C E D

MO

DE

RN

TR

AD

ITIO

NA

L

RJWSH

G R O W T H

Price Points

WE HAVE THE LEVERS TO ACCELERATE GROWTH AND DOUBLE BRAND REVENUES TO $3B GLOBALLY

CHANNEL GROWTH

OPPORTUNITIES

G R O W T H L E V E R : B R A N D

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West Elm is ourbiggest growth opportunity

AXES OFGROWTH

➡ Industry-leading original design content with 90% of designs developed internally

➡ Focus on function and sustainability – a competitive differentiator

➡ 20% brand awareness leaves significant runway for customer growth

➡ Significant acceleration in new customer growth trend YTD➡ Continued growth in digital

penetration: currently at >50% ➡ Acceleration of highly profitable

new store growth strategy: 20% average 4-wall profits, 2yr payback

➡ International expansion in new markets: India and Western Europe

➡ Expansion in core product categories with a focus on functionality and design

➡ New categories growth such as: Bath, Outdoor, and Seasonal Decorating

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DESIGN AND VALUES

LEADERSHIP

BRAND AWARENESS

ANDCUSTOMER

ACQUISITION

PRODUCTWHITE SPACE

A powerful, proven platform to grow and scale new businesses across lifestyles and life stages

➡ Focus on high-performing baby business - key entry point to the brands ➡ Aggressively scale new businesses Marketplace and PB Apartment ➡ Expand in high-growth core categories and develop assortments

in adjacent categories to complete the home8

➡ Diversify product assortment and aesthetic ➡ Amplify sustainability commitments - a key differentiator ➡ Improve retail profitability, and optimize retail fleet

A ROADMAP FOR CONTINUED PROFITABLE GROWTH – CONTRIBUTING +50% OF TOTAL COMPANY GROWTH

EXPECTANT BABY TODDLER KID TWEEN TEEN COLLEGE YOUNG ADULT EMPTY NESTER

G R O W T H L E V E R : B R A N D

** *

* NEW BUSINESSES

POTTERY BARN FAMILY OF BRANDS REPRESENT OVER $3B IN REVENUES TODAY

ADULT

M A R K E T P L A C E *

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➡ Pivot our focus to digital while reducing unprofitable stores and capitalizing on more high-impact remodels

➡ Balance marketing investments to drive brand awareness, new customer acquisition and retention

➡ Improve profitability through top line growth, expense control and margin expansion

Return to strong, profitable growth through innovation, relevancy and customer engagement

➡ Lead with product design and authenticity

➡ Expand proprietary and private label businesses

➡ Foster strategic relationships with key partners in the development of collaborative, exclusive assortments and content

➡ Deliver rich customer experiences in-store and online leveraging our expertise in cooking and design

G R O W T H L E V E R : B R A N D

WE ARE AGGRESSIVELY EXECUTING ON OUR TRANSFORMATION PLAN

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GROWING NUMBER OF CROSS-BRAND INITIATIVES TO DRIVE INCREMENTAL REVENUES

SIGNIFICANT REVENUE GROWTH OPPORTUNITY WITH CROSS-BRAND CUSTOMERS

G R O W T H L E V E R : C R O S S - B R A N D

We are unlocking the powerof our unique platform through cross-brand initiatives

more spend thansingle brand customers4x

of total customerbase is cross-brand 30%

SIGNIFICANTLY INCREASE OUR SHARE OF WALLET AND ENHANCE CUSTOMER EXPERIENCE

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ALREADY AT SCALE BUT PLENTY OF ROOM TO GROW

2x higher purchase frequency 3x more likelihood to shop across multiple brands 5x sales lift through reward redemption

members since launch 2.5 years ago6.4M

more spend than non-members3x

The Key loyalty program is highly accretive to growth

Increase customer engagement and brand loyalty

Effective marketing tool to introduce WSI portfolio of brands

Improved personalization of content and offers

G R O W T H L E V E R : C R O S S - B R A N D

We are aggressively pursuing the B2B opportunity

G R O W T H L E V E R : C R O S S - B R A N D

$36Baddressable market for WSI

total market $78BTHE B2B MARKET IS LARGE, FRAGMENTED & RIPE FOR DISRUPTION

➡ Contract Furniture Building Products Paint Flooring

➡ Lighting ➡ Residential Furniture

Surface Material ➡ Kitchen/Bath Products

Fabric/Wallcovering Window Treatments

➡ Outdoor Products ➡ Other

12.5 10.1 8.6 8.2 7.8 7.0 7.0 6.2 5.5 2.8 1.5

0.8

$78.0BTOTAL MARKET

U.S. B2B MARKET ($B)

Source: Industry research

OUR COMPETITIVE EDGE OVER EXISTING PLAYERS

Design and productdevelopment expertise

Breadth of aestheticsand price points

Support for allB2B opportunities,

large and small

On-the-groundsupport for worldwide

sourcing

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RETAIL

Retail StoreBuilds

and Malls

HEATHCARE + WELLNESS

Senior Living,Hospitals, Health

and Fitness

Our path to $2B inB2B revenues

G R O W T H L E V E R : C R O S S - B R A N D

COMMERCIAL

Commercial, Workplace and

Sports/ Entertainment

Arenas

EDUCATION

EducationalEstablishments and University Housing

HOSPITALITY

Hotels, Resorts, Restaurants,

Country Clubs

WE ARE PURSUING TARGET ACCOUNTS ACROSS 7 INDUSTRY VERTICALS

➡ .

WARRIORS, CHASE CENTER AND WILLIAMS-SONOMA, INC. ANNOUNCE

EXCLUSIVE HOME FURNISHINGS PARTNERSHIP

FOR IMMEDIATE RELEASEMay 30, 2019

RESIDENTIAL

Single andMulti-Family Designers

and Developers

GOVERNMENT

GSA Certification,Governmentand Military

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G R O W T H L E V E R : I N T E R N AT I O N A L

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CHINA/SE ASIA

$150B

INDIA MARKET

$10B

Global expansion is a long-term growth opportunity

Source: WSI estimates

PRIORITY MARKETS

EXISTING MARKETS

Competitive Advantages

➡ Superior supply chain and product cost leverage

➡ Development of multiple business structures to meet market requirements (company-owned/franchise/wholesale)

➡ E-commerce prowess proven across the world

Business Mandate

➡ Profitable growth with high ROIC ➡ Strong sharing of competencies with partners ➡ Aggressive e-commerce penetration ➡ Low capital investment

WITHIN 3 YEARS OUR GLOBAL FOOTPRINT WILL GROW TO 20 COUNTRIES WITH A COMBINED ADDRESSABLE MARKET OF $330B

AUSTRALIA

$10BMIDDLE EAST

$20B

CANADA/MEXICO

$20B

W. EUROPE MARKET

$120B

Superior customer service is oxygen forgrowth

TECHNOLOGY INNOVATION DRIVING A BEST-IN-CLASS OMNI-CHANNEL EXPERIENCE

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ASSETS

1 #1 FURNITURE SUPPLY CHAIN

CULTURE

INNOVATION

Faster time to market for growth focused ideas

EXPERIMENTATION

In-house tech platform to “test & learn”

OUTCOME OVER OUTPUT

Measure success based on the value it brings

to customers

EXCELLENCE

High quality standards, scaled and stable shared services

GOALS + OUTCOME

3 FRICTION-FREE COMMERCE

(PHY-GITAL)

4 OPERATIONAL EFFICIENCY

Offering quality products and outstanding customer service has been our goal since the first Williams Sonoma store opened in 1956.” – Founder Chuck Williams

“

Data Platform

OrganizationalAgility

AI Machine Learning

3D Visualization

Modular Architecture

Robotics and Automation

G R O W T H AC C E L E R ATO R : C U S TO M E R E X P E R I E N C E

2 INSPIRING DIGITAL EXPERIENCES

As the world’s largest design-led, digital-first home retailer, we are shaping the future of shopping.

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