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NASDAQ: FLWS
The WorldThe Worlds Leading Florist and Gift Shops Leading Florist and Gift Shop12/14/10
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Setting FLWS Investment ApartSetting FLWS Investment Apart
Strong Brand Equity: Leading Florist and Gift Retailer
Lower Capital Requirements vs. Most Other Retailers
Proven Ability to Leverage Business Platform to Reduce OPEX
Growing Market Share in $16B Gourmet Food and Gift Baskets
BloomNet Wire Service: Increasing Market Penetration
Strong Balance Sheet: Generating Cash; Low Debt Ratio
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Business PlatformBusiness Platform
FloralGourmet
Food & Gift
Baskets
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Floral CategoryFloral Category
Direct to Consumer
Market Leadership
Powerful Brand
Deepening Customer
Relationships
Innovative Merchandising
Good, Better, Best Strategy
Expanded Gift Offering Repeat Order Rate >50%
Same-Day, Next-Day, Any-Day
Delivery Capabilities
B-2-B Wire Service
Quality & Innovation Leader
Growing Market Penetration
Strong Contribution Margin
BloomNet Advantages:
Largest Directable Order
Volume
Better Value Proposition for
Florists
Expanded Products & Services
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Gourmet Food & Gift Baskets CategoryGourmet Food & Gift Baskets Category
Leading Gift Brands Strategy:
Fragmented Market >$16bn
Multi-channel/ E-commerce focus
Revenue Approaching $250mm
Strong Contribution Margin
Cross-Brand Leveraging:
Customer Database
Manufacturing Capabilities
Unique Distribution
Product Design & Sourcing
Broaden National Recognition for Regional Brands
Launched New Brand: 1-800-Baskets.com
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11--800800--BASKETS.COM StrategyBASKETS.COM Strategy
Deliver On Vision and Rationale for DesignPac Acquisition Leverage:
1-800-FLOWERS.COM Brand Equity and Web Traffic with
DesignPacs Low-Cost, High-Value Design & Assembly Platform. 1-800-FLOWERS.COM customers, Marketing, IT and Operational
infrastructures to build new brand and drive gift basket sales.
Create New Website and Build New Consumer Brand in theGourmet Food Gift Segment
Capture Larger Share of Customers Gift Wallet
Longer-term: Attract Entirely New Customer Base Interested inGift Baskets and Gourmet Food Gifts
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Key Strategic PrioritiesKey Strategic Priorities
Know and Take Care of Our Customers: Provide the right products and services with consistent,
excellent quality and value, to help our customers send
smiles everyday.
Maintain our Financial Strength and Flexibility: Aggressively reduce our operating costs; Strengthen
our balance sheet and add flexibility to our capitalstructure.
Continue to Innovate and Invest for the Future: Invest in Technology; Invest in our Brands; and Invest
in New Growth areas that position us for enhanced
future results.
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Social Networking:Social Networking: Reaching Our CustomersReaching Our Customers
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Customer EngagementCustomer Engagement
Customergener
atedcontent;
Keep-sakebookseri
es
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Maintain Financial Strength & FlexibilityMaintain Financial Strength & Flexibility
Proven Operating Cost Leverage
FY06- FY08: Reduced OPEX ratio 290 bps, or $25M
FY09: Achieved targeted $50M in cost savings
Continued focus on OPEX cost reduction opportunities
Strong Balance Sheet
Paid down ~ $70 million of long-term debt over past 24 months.
Amended bank facility: extended term, reduced quarterly payments
Reduced inventory and capital expense requirements
Strong free cash flow: > $15 million from continuing operations in FY10
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Innovate & Invest for the FutureInnovate & Invest for the Future
DPACAward
s2010BestEcommer
ceMobileApp
AndRetailInf
oSystems201
0BestShopping
MobileA
ppofTheYea
r
Mobile:Mobile: The Next WaveThe Next Wave
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Historical Revenue & EBITDAHistorical Revenue & EBITDA
$ Millions
$800
$600
$400
$200
FY05 FY06 FY07 FY08 FY09
$498$585
$726$739
$21.7
$18.1
$57.2 $57.1
Revenue EBITDA
$714
$36.4
$668
$28.6
FY10
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TopTop-- and Bottomand Bottom--Line Growth StrategiesLine Growth Strategies
Seek Organic Growth in Key Business Categories Grow Multi-Channel Gourmet Food & Gift Baskets Business
Leverage Strong Brand Equity
Increase Cross Marketing/ Merchandising
Deepen Customer Relationships/ Interaction Increase BloomNet Wire Service Market Penetration
New Business Development 1-800-Baskets.com; Social Commerce; Mobile Commerce
Acquisition Opportunities Gourmet Food & Gift Baskets Category
Provide e-Commerce Platform & Expertise
Broaden National Recognition for Regional Brands
Enhance Profitability Increase Gross Profit Margins
Continue to Leverage Operating Platform
Drive Free Cash Flow
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Safe Harbor StatementSafe Harbor Statement
Special Note Regarding Forward-Looking Statements
A number of statements contained in this presentation are forward-lookingwithin 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 theapplicable statements. For a detailed description of these risk factors,please refer to the Companys Securities and Exchange Commissionfilings including the Companys Annual Reports on form 10-K and
quarterly reports on form 10Q. The Company expressly disclaims anyintent or obligation to update any of the forward looking statementsincluded in this presentation.
(*A Reconciliation of Net Income to EBITDA is available at the InvestorRelations section of the Companys website at www.1800flowers.com as
part of the Companys 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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Contact:
Joseph D. PitittoVP Investor Relations
Phone: 1-(516)-237-6131E-mail: [email protected]
NASDAQ: FLWS