#1INVESTOR DAY 20 20 UNLOCKING OUR POTENTIAL BED BATH& BEYOND#2forward-looking statements This presentation contains forward-looking statements, including, but not limited to, the Company's progress and anticipated progress towards its long-term objectives, plans with respect to potential asset sales, as well as more generally the status of its future liquidity and financial condition. Many of these forward-looking statements can be identified by use of words such as may, will, expect, anticipate, approximate, estimate, assume, continue, model, project, plan, goal, and similar words and phrases, although the absence of those words does not necessarily mean that statements are not forward-looking. The Company's actual results and future financial condition may differ materially from those expressed in any such forward-looking statements as a result of many factors. Such factors include, without limitation: general economic conditions including the housing market, a challenging overall macroeconomic environment and related changes in the retailing environment; risks associated with COVID-19 and the governmental responses to it, including its impacts across the Company's businesses on demand and operations, as well as on the operations of the Company's suppliers and other business partners, and the effectiveness of the Company's actions taken in response to these risks; consumer preferences, spending habits and adoption of new technologies; demographics and other macroeconomic factors that may impact the level of spending for the types of merchandise sold by the Company; civil disturbances and terrorist acts; unusual weather patterns and natural disasters; competition from existing and potential competitors across all channels; pricing pressures; liquidity; the ability to achieve anticipated cost savings, and to not exceed anticipated costs, associated with organizational changes and investments, including the Company's strategic restructuring program; the ability to attract and retain qualified employees in all areas of the organization; the cost of labor, merchandise and other costs and expenses; potential supply chain disruption due to trade restrictions, and other factors such as natural disasters, pandemics, including the COVID-19 pandemic, political instability, labor disturbances, product recalls, financial or operational instability of suppliers or carriers, and other items; the ability to find suitable locations at acceptable occupancy costs and other terms to support the Company's plans for new stores; the ability to establish and profitably maintain the appropriate mix of digital and physical presence in the markets it serves; the ability to assess and implement technologies in support of the Company's development of its omnichannel capabilities; the ability to effectively and timely adjust the Company's plans in the face of the rapidly changing retail and economic environment, including in response to the COVID-19 pandemic; uncertainty in financial markets; volatility in the price of the Company's common stock and its effect, and the effect of other factors, including the COVID-19 pandemic, on the Company's capital allocation strategy; risks associated with the ability to achieve a successful outcome for its business concepts and to otherwise achieve its business strategies; the impact of intangible asset and other impairments; disruptions to the Company's information technology systems including but not limited to security breaches of systems protecting consumer and employee information or other types of cybercrimes or cybersecurity attacks; reputational risk arising from challenges to the Company's or a third party product or service supplier's compliance with various laws, regulations or standards, including those related to labor, health, safety, privacy or the environment; reputational risk arising from third-party merchandise or service vendor performance in direct home delivery or assembly of product for customers; changes to statutory, regulatory and legal requirements, including without limitation proposed changes affecting international trade; changes to, or new, tax laws or interpretation of existing tax laws; new, or developments in existing, litigation, claims or assessments; changes to, or new, accounting standards; foreign currency exchange rate fluctuations; and the other factors summarized in the Company's reports filed with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update its forward-looking statements. non-GAAP financial measures This presentation includes certain non-GAAP financial measures. Please refer to pages 106 to 160 for more information regarding these non-GAAP financial measures, including a reconciliation of these non-GAAP financial measures to their most directly comparable measures reported under United States GAAP. INVESTOR DAY 2020 2#3why we are here mark tritton chief executive officer INVESTOR DAY 2020 3#4agenda why we are here who we are (our team) where we are going what we are doing to rebuild authority how we plan to create shareholder value why it matters INVESTOR DAY 2020#5large and growing market with renewed relevance market growth (cagr) customer frequency (annual trips) spend per customer (per year) home $180b $200 baby and kid $110 3% C $15 note: historical 2017-2019 CAGR, market growth CAGR for home adjusted to post pandemic expectations source: Bed Bath & Beyond consumer survey jun 2020 (n=3652), euromonitor, NPD data sep 2020 beauty & wellness $170b 4% 9+ $280 INVESTOR DAY 2020 5#6iconic home goods brand since 1971 with nearly 50 years of heritage, and highly relevant with consumers source: Bed Bath & Beyond consumer survey jun 2020 (n=1047) 100 50 O BED BATH & BEYOND aware BED BATH & BEYOND shopped BED BATH & BEYOND considered Bed Bath & Beyond ● digital platform ● mass • department ● specialty % of consumers BED BATH & BEYOND transacted INVESTOR DAY 2020 6#7we have a large customer base 37m total customers 1 in 5 US homes is a BBB home INVESTOR DAY 2020 7#8our stores are a strategic asset 900+ stores 95% of sales within 25 miles of our stores INVESTOR DAY 2020 8#9we have brand authority in important categories consumer brand associations in home top 1 bed bath kitchen top 3 storage and org SELAWIELOLE home fragrance top 5 LORE tabletop window coverings INVESTOR DAY 2020 9#10we have brand authority in important categories consumer brand associations in home top 1 -$70b source: Bed Bath & Beyond consumer survey apr 2020 (n= 15049), NPD data sep 2020 top 3 total market size top 5 -$15b -$15b INVESTOR DAY 2020 9#11to win in a rapidly evolving market, we have important work to do current state high rating low rating BED BATH & BEYOND association in home categories source: Bed Bath & Beyond consumer survey apr 2020 (n= 15049) BED BATH & BEYOND value perception BED BATH & BEYOND ease & convenience Bed Bath & Beyond • digital platform ● mass • department • specialty BED BATH & BEYOND resonance with millenials INVESTOR DAY 2020 10#12to win in a rapidly evolving market, we have important work to do future state high rating low rating BED BATH & BEYOND association in home categories source: Bed Bath & Beyond consumer survey apr 2020 (n= 15049) BED BATH & BEYOND value perception BED BATH & BEYOND ease & convenience Bed Bath & Beyond • digital platform ● mass • department • specialty BED BATH & BEYOND resonance with millenials INVESTOR DAY 2020 10#13we've already made tremendous progress INVESTOR DAY 2020#14evolved from multi channel to omni channel what we achieved 100% stores with BOPIS and curbside note: data as of H1 2020 +85% strong digital sales 2.3m additional store customers converted to digital INVESTOR DAY 2020 12#15back to college was a win with our customers what we achieved 21% sales growth year on year note: growth in Q2 2020, customers new to brand in H1 2020 272% online growth year on year 1.4m customers new to brand INVESTOR DAY 2020 13#16right sized portfolio to focus on core what we achieved $350m+ $400m+ 4 non-core banner sales non-core asset sales (real estate and Florence, NJ warehouse) note: divestitures subject to customary closing conditions, given that only Personalization Mall, One Kings Lane transactions have closed banners divested Christmas Tree Shops ONE KINGS LANE PERSONALIZATION™ -MALL HARBOR LINEN INVESTOR DAY 2020 14#17fortified our financial flexibility what we achieved $850m $750m ABL secured in Q2 $500m cash flow generated in Q2 gross debt reduced, down 30% from Q1 2020 while also managing liquidity through COVID-19 INVESTOR DAY 2020 15#18refreshed corporate governance to bring in diverse expertise Public board or CEO experience ● New since 2019 Harriet Edelmen (Chair) Merchandising, Finance Supply Chain, Technology AVON EMIGRANT BANK Jeffrey Kirwan Retail Ops, Merchandising, Supply Chain, Marketing САР Joshua Schechter Finance, Technology sunworks VIAD Mark J. Tritton President and Chief Executive Officer target NORDSTROM Johnathan B. (JB) Osborne Marketing, Technology RED ANTLER Andrea Weiss Retail Ops, Technology GUESS ANN TAYLOR John Fleming Retail Ops, Merchandising, E-commerce, Marketing Walmart Save money. Live better. UNI QLO Harsha Ramalingam Operations, Digital amazon EMC² Mary A. Winston Finance, Retail Ops FAMILY DOLLAR GIANT EAGLE Sue E. Gove Retail Ops, Marketing, Finance ZALES Conn's THE DIAMOND STORE HomePlus Virginia P. Ruesterholz Marketing, Technology, Finance verizon Ann Yerger Finance, Governance HERSHEY INVESTOR DAY 2020 16#19rebuilt executive team in a remote environment entirely new leadership team Mark J. Tritton President and Chief Executive Officer NORDSTROM target Cindy Davis Chief Brand Officer President, Decorist Lbrands Disney John Hartmann Chief Operating Officer President, buybuy Baby TrueValue THE HOME DEPOT Arlene Hong Chief Legal Officer and Corporate Secretary amazon FULLBEAUTY Rafeh Masood Chief Digital Officer EVERY SEASON STARTS AT BJ'S DICK'S SPORTING GOODS. Live Generously Lindy Blevins Chief of Staff to CEO NORDSTROM BAIN & COMPANY Gustavo Arnal Chief Financial Officer and Treasurer AVON P&G Joe Hartsig Chief Merchandising Officer President, Harmon Walgreens Walmart Save money. Live better. D Lynda Markoe Chief People and Culture Officer J.CREW GAP Gregg Melnick Chief Stores Officer Party City Liz Claiborne INVESTOR DAY 2020 17#20our leaders are strengthening their teams Juan Guerrero Chief Supply Chain Officer BRAND INTERNATIONAL Liz Meltzer Senior Vice President, GMM Bed, Bath & Home Decor GAP ANN INC Mary-Farrell Tarbox Regional Vice President, Stores Crate&Barrel target Anu Gupta Chief Strategy and Transformation Officer target Michaels Neil Lick Senior Vice President, Own Brands WILLIAMS SONOMA CALIFORNIA Rick Wilkins Regional Vice President, Stores OLD NAVY Scott Lindblom Chief Technology Officer BEST Michaels BUY Wade Haddad Senior Vice President, Real Estate and Construction ascena RETAIL GROUP INC. Ann-Marie Clendenin Regional Vice President, Stores ARITZIA kate spade NEW YORK Heather Plutino Senior Vice President, FP&A and Commercial Finance SALLY BEAUTY target INVESTOR DAY 2020 18#21proud of the world class team we brought in amazon THE Disney HOME DEPOT True Value DICK'S SPORTING GOODS. P&G SALLY BEAUTY target BED BATH & BEYOND Walmart Save money. Live better. buybuy BABY HARMON FACE VALUES Pa ty City decorist ascena RETA GROUP INC WILLIAMS SONOMA CALIFORNIA Lbrands Crate&Barrel Walgreens NORDSTROM Michaels GAP J.CREW INVESTOR DAY 2020 19#22who we are (our team) INVESTOR DAY 2020 20#23page intentionally left blank for video INVESTOR DAY 2020 21#24where we are going INVESTOR DAY 2020 22#25we have an ecosystem of powerful banners BED BATH & BEYON? buybuy BABY ecorist HARMONⓇ FACE VALUES INVESTOR DAY 2020 23#26our banners represent significant scale size ($m) stores digital penetration BED BATH & BEYOND»>> $7000 35%+ source: sales and store count as of FY 2019, digital as of sep 2020 buybuy BABY $1000 126 HARMONⓇ FACE VALUES $200+ 50+ 10% INVESTOR DAY 2020 24#27potential to grow customers across banners -34m BED BATH & BEYOND -2m 3m buybuy BABY -0.1m -0.1m -1m customers -0.5m FACE VALUES INVESTOR DAY 2020 25#28potential to grow spend is even greater BED BATH & BEYOND HARMON FACE VALUES 2x BED BATH & BEYOND buybuy BABY 3x BED BATH & BEYOND buybuy BABY HARMON FACE VALUES 4x vs. the Bed Bath & Beyond customer -$150 BED BATH & BEYOND -$430 $170 buybuy BABY -$330 -$620 $270 annual spend -$70 HARMON FACE VALUES INVESTOR DAY 2020 26#29our banners bring magic to key life moments going to college moving in to first apartment buying a house moving & organizing home getting married celebrating holidays & milestones having a baby ....... focusing on self-care & wellness raising a family downsizing a home welcoming grandkids INVESTOR DAY 2020 27#30our banners bring magic to key life moments BED BATH & BEYOND going to college decorist BED BATH & BEYOND buybuy BABY moving in to first apartment de corist buying a house BED BATH & BEYOND decorist moving & organizing home getting married BED BATH & BEYOND decorist BED BATH & BEYOND HARMON* FACE VALUES BED BATH & BEYOND buybuy BABY celebrating holidays & milestones BED BATH & BEYOND buybuy BABY FACE VALUES having baby decorist BEYOND focusing on | BED BATH & self-care & wellness FACE VALUES downsizing a home BED BATH & BEYOND buybuy BABY raising a family | FACE VALUES welcoming grandkids BED BATH & BEYOND INVESTOR DAY 2020 BED BATH & BEYOND buybuy BABY 28#31our focus today will be Bed Bath & Beyond PRINCIPLES PURPOSE PILLARS & PROFICIENCIES PERFORMANCE MISSION INVESTOR DAY 2020 29#32starting with our purpose PURPOSE make it easy to feel at home 00000000000***** INVESTOR DAY#33our transformation is rooted in mission and principles PURPOSE make it easy to feel at home MISSION re-establish our authority and be the preferred omni-channel home destination driven by teams consistently delivering balanced durable growth PRINCIPLES customer inspired omni-always people powered performance driven INVESTOR DAY 2020 30#34and key pillars and proficiencies PURPOSE make it easy to feel at home MISSION re-establish our authority and be the preferred omni-channel home destination driven by teams consistently delivering balanced durable growth PRINCIPLES customer inspired omni-always PILLARS & PROFICIENCIES ELL people powered performance driven product price promise place people 8 O 8 proficiencies INVESTOR DAY 2020 31#35transformation linked to drivers of value creation make it easy to feel at home PURPOSE PRINCIPLES customer inspired omni-always PILLARS & PROFICIENCIES ELL product price promise place people 2 O 8 PERFORMANCE sales MISSION re-establish our authority and be the preferred omni-channel home destination driven by teams consistently delivering balanced durable growth people powered performance driven margin proficiencies cash flow INVESTOR DAY 2020 TSR 32#36what we are doing to rebuild authority cindy davis chief brand officer INVESTOR DAY 2020 33#37promise strategic initiatives 1 customer value proposition 2 targeted customer base growth 3 enterprise loyalty reinvention INVESTOR DAY 2020 34#38page intentionally left blank for video INVESTOR DAY 2020 35#39BED BATH & BEYOND unlock the magic in every room 36#40our customers INVESTOR DAY 2020 37#41we have a large and attractive customer base 37m total customers 1 in 5 US homes is a BBB home 25% digital customers INVESTOR DAY 2020 38#42and it is growing rapidly this year 1.4m customers new to brand note: new to brand in H1 2020, remaining customer data for Q2 2020 6 younger on average years 20% less likely to use coupon INVESTOR DAY 2020 39#43we have immediate growth opportunities with our customers 35% of baskets have one item or one category 36% of customers can't find what they want in stores 41% of customers abandon digital due to weak value perception $25-50m for every 1% improvement source: Bed Bath & Beyond consumer survey apr 2020 (n= 15049), POS analytics INVESTOR DAY 2020 40#44we have identified five segments that can unlock growth informed by data driven journeys and POS analytics the nester the minimizer the juggler source: data driven statistical segmentation, Bed Bath & Beyond consumer survey apr 2020 (n= 15049) the innovator the creative INVESTOR DAY 2020 41#45we have identified five segments that can unlock growth the nester the minimizer 37% of market the juggler source: data driven statistical segmentation, Bed Bath & Beyond consumer survey apr 2020 (n= 15049) the innovator 10% more likely to engage in omni the creative 40% higher spend INVESTOR DAY 2020 41#46we know where we have upside the nester the minimizer protect & maintain the juggler the innovator opportunity to grow the creative acquisition target INVESTOR DAY 2020 42#47we know who they are and what is important to them the nester boomer (55-70 s) who they are older homeowners doing more with their home & second homes ● what they buy ● • kitchen entertaining ● bedding the minimizer genz & millennial (18-40yrs) younger adults doing the minimum to have a functional home bedding storage & org • bath ● the juggler gen X 0-55yrs) parents balancing all the needs of a family home • kitchen ● personal care source: data driven statistical segmentation, Bed Bath & Beyond consumer survey apr 2020 (n= 15049) ● home care ● the innovator novelty enthusiasts hunting for the latest and greatest ● (40-55yrs) gadgets kitchen tools home tech the creative ● genz& millennial Fyrs) younger shoppers looking to express themselves, setting up homes more frequently entertaining home decor storage & org INVESTOR DAY 2020 ● 43#48page intentionally left blank for video INVESTOR DAY 2020 44#49our banners can unlock opportunities across magic moments going to college moving in to first apartment buying a house moving & organizing home getting married celebrating holidays & milestones having a baby ....... focusing on self-care & wellness raising a family downsizing a home welcoming grandkids INVESTOR DAY 2020 45#50digital first registry attracts a younger customer BED BATH & BEYOND #2 share of wedding registry nationally 88% customers start online source: NPD sep 2020 buybuy BABY #5 share of baby registry nationally 87% customers start online App Store. MY REGISTRY kitchen welcome to Cecilia and Matteo's dream kitchen My Items 322 Registry Registry bed FIND A REGISTRY IT bath 3% INVESTOR DAY 2020 My Offers Cat 000 Mare 46#51nursery designs provide inspiration to welcome a new baby transitional PATROL modern bohemian farmhouse ‒‒‒‒‒ 11111 buybuy BABY decorist traditional contemporary INVESTOR DAY 2020 47#52beauty and wellness create a compelling enterprise proposition our customers who shop Bed Bath & Beyond and Harmon shop more frequently buy more 3x 40% more trips larger baskets compared with the Bed Bath & Beyond-only customer BED BATH & BEYOND HARMONⓇ FACE VALUES and are more profitable 30% higher margin INVESTOR DAY 2020 48#53promise value creation from customer inspired strategy strategic initiatives 1 customer value proposition 2 targeted customer base growth sales 3 enterprise loyalty reinvention margin INVESTOR DAY 2020 49#54what we are doing to rebuild authority joe hartsig chief merchandising officer INVESTOR DAY 2020 50#55product strategic initiatives 1 inspirational assortment including own brands 2 reduced cost of product 3 strengthened inventory management INVESTOR DAY 2020 51#56we have foundational work to do 35% of baskets are one item or one category 5k+ brands with 2.5k driving less than 10% of sales 10% own brand penetration today INVESTOR DAY 2020 52#57merchandising strategy grounded in new category roles importance to customers everyday needs -30% simple solutions -10% importance to BBBY destination -50% specialize & delight -10% INVESTOR DAY 2020 % of sales 53#58with a focus on our destination categories importance to customers everyday needs personal care coffee electronics simple solutions travel pet KEURIG destination bed kitchen bath storage & org tabletop specialize & delight home fragrance window coverings importance to Bed Bath & Beyond INVESTOR DAY 2020 54#59creating a more inspirational and productive assortment introduced data-driven line review process to overhaul assortment completed across 40 categories (35% of sales) example of outcomes in sheets 30% reduced SKU duplication 20% newness in range 17% increased value options INVESTOR DAY 2020 55#60launching 10+ new own brands in the next 18 months destination led by bed, bath & kitchen style & trend value i 3x+ own brand penetration in three years INVESTOR DAY 2020 56#61elevating our customer experience in destination rooms from functional item led merchandising OMFORTERS href HOME CROSONA HOME CROSCILL OVER 3000 welcome to customer inspired rooms Wa T bedding Bridgestreet J. Queen INVESTOR DAY 2020 57#62...and reimagining online from functional item led merchandising Free Shipping on Orders Over $39 BED BATH & BEYOND Product Deals Ideas & Inspiration Clean sweeps $100 off select Dyson vacuums thru Shop Now GREAT VALUE! College What can we help you find? Moving Registry Reserve online and get FREE 2 hour pick up in-store im Details $80 off KitchenAid Sat Mixer Vaid thu 92 Shop Now " H de Boards Registry Cart Up to 25% off select fans Shop Now → Shop Now 5-Piece Comforter Sets Starting at $79.99 Clearance Full/Queen and King sizes. While supplies last. to customer inspired rooms BED BATH & BEYOND You're shopping Jersey Gardens Mall, NJ ✓ Try Free Curbside Pickup! from $10 bed pillows from $15 Q What can we help you find? sheets RELAX & RESTORE comforter sets from $29.99 Create a serene space ahead of the holiday season. from $25 down comforters from $40 D:X Registry Cart 8 mattress toppers INVESTOR DAY 2020 58#63on track to deliver $200 to $250m in sourcing benefits in the next 3 years % of COGS addressed #vendors addressed total savings wave 1 destinations -20% -60 $100m secured note: sourcing benefits on an annualized basis wave 2 destinations specialize & delight -30% -240 wave 3 everyday needs simple solutions -20% -500 $100-$150m in-progress INVESTOR DAY 2020 59#64strengthening inventory management to drive productivity from -2.5 inventory turns today bottom quartile for comparable peers to 3.5+ inventory turns within 3 years in line with median of comparable peers data driven actions centralize inventory management discipline optimize inventory by channel and store improve markdown management INVESTOR DAY 2020 60#65price strategic initiatives 1 competitive base pricing 2 assortment in value tiers 3 effective promotions 4 value messaging INVESTOR DAY 2020 61#66closing price gap in destination categories from competitive with the coupon compared to mass 10% 5% 0% -5% -10% price index on national brands in destination categories 2 years ago 14% -3% to competitive on first price BBB without BBB with coupon coupon source: Bed Bath & Beyond pricing basket comparison for destination categories: bed, bath, kitchen, etc. jun 2018 and aug 2020 1% BBB without coupon today -13% BBB with coupon INVESTOR DAY 2020 62#67addressing assortment gaps in value tiers from example: kitchen category best better good OPP own brand price tier $8+ $5-8 $3-5 <$3 % kitchen mass/ spend in market digital 20% 15% 30% 34% note: OPP refers to opening price point source: competitor store visits and web scrapes apr 2020, NPD FY 2019 BBB current to BBB planned 2021 market opportunity 50%+ of spend in value tiers (OPP, good) 63#68building disciplined processes for effective promotions processes disciplined, end to end promo planning process 405m baskets analyzed tools data driven promo tools to understand customer impact 285k promotions evaluated center of excellence dedicated team to track promotions and rebalance investments 40% of promos ineffective INVESTOR DAY 2020 64#69promo optimization paying off tested new promo mechanisms KEURIG price regular price $100 vendor sale price $79 from price with coupon (2019) $63 to great value at first glance (2020) $60 300% volume 120% profit INVESTOR DAY 2020 65#70strengthening our value communications from confusing value communication on Cuisinart. Calphalan T why?buy anolon Jels. Anolon to compelling value at first glance everyday great price AKS AKS ARTISANAL BITCHEN SUPPLY under $30 EXCLUSIVELY OURS ARTISANAL KITCHEN SUPPLY DUTCH OVENS AKS ATSAKITCHENY INVESTOR DAY 2020 66#71creating strong value from merchandising strategy product 1 2 inspirational assortment including own brands reduced cost of product strengthened 3 inventory management price 1 sales competitive base pricing assortment 2 in value tiers 3 4 messaging effective promotions margin cash flow INVESTOR DAY 2020 67#72what we are doing to rebuild authority rafeh masood chief digital officer INVESTOR DAY 2020 68#73place strategic initiatives 1 winning with omni- always transformation 2 strengthening stores through remodels 3 positioning network for the future INVESTOR DAY 2020 69#74re-invent Bed Bath & Beyond as an authority in home through an "omni-always" growth strategy INVESTOR DAY 2020 70#752019: digital business was at scale -$2b size of digital business in 2019 11.3% CAGR from 2017-2019, in line with the market INVESTOR DAY 2020 71#76may 2020: diagnosed business to understand potential friction points across our platforms single channel customer experience siloed culture with limited integration INVESTOR DAY 2020 72#77mobilized a 3-track strategy to unlock growth 1 elevate customer experience drive conversion 2 unlock omni-always convert customers to omni 3 transform to digital first culture acquire new customers INVESTOR DAY 2020 73#78immediate results from the changes we executed +82% digital sales in Q1 +88% digital sales in Q2 $3b+ size of digital business based on current trend INVESTOR DAY 2020 74#791 elevate customer experience drive conversion 2 unlock omni-always convert customers to omni 3 transform to digital first culture acquire new customers#80previous technology led approach caused customer friction market -44% BED BATH & BEYOND 55% % of customers who abandon at homepage source: customer abandonment rate as of nov 2019 - apr 2020 customer feedback as of december 2019 ...a lot of wasted time. ...website loads incredibly slow. improve your checkout service! INVESTOR DAY 2020 76#81we made the site faster and more compelling from slow site with confusing discovery 2D BATH & BEYONE VALUE WINTER CLEARANCE SAL 50%OFF Free shipping on orders over $39. BED BATH & BEYOND College Qelp you find? Registry Get 2016 OFF your entire purchase free standard shipping ALL YEAR LONG See BEYOND VALUE WINTER CLEARANCE SALE UP TO 50% OFF Must-Have Innovations from Brookstone® Feel good look good and do life better New Deals Added! While Supplies Last! 7s load time > M inspiration to fast and inspiring site relaunch in june 2020 BED BATH & BEYOND categories Q What can help you find? moving ✓ 0 registry FLAVORS OF FALL bake it easy from $4.99 Get all the essentals for making fal treats shop fall baking research transaction $8 My Offers Idea Boards Sign in Registry Cart You're shopping Manalapan, NJ v 1.5s load time from $4.99 INVESTOR DAY 2020 77#82we simplified the research process from difficult navigation BED BATH & BEYOND Showing 1-48 of 8.202 products Product Type Shop By Product Type: P Exclusively Ours pillow Size A 0000000 Sleep Position ✓ Standard (421) King (211) Queen (118) 20 x 20" (1.0101 Euro (201 18X18" (2.497) 12"X20" (148) 14" X 20 (392) 24"x24 (13) "pillow" Fill Material ✓ Ratings 100+ pillow size options pe: Pill 8 My Offers Idea Boards Sign In Registry Cart Size A Sleep Positio Standard (421) King (211) Queen (118) 20" X 20" (1,010) Euro (20) 18" X 18" (2,497) to simple and improved product discovery BED BATH & BEYOND Showing 1-48 of 8,202 products Product Type ✓ Shop By Product Type: Pil Exclusively Ours inspiration research transaction 0000 pillow Size A Sleep Position v Standard (421) King (211) Queen (118) Euro (20) "pillow" Fill Material v Rat 4 pillow size options Pil Size A ♡ 8 My Offers Idea Boards Sign In Sleep Position ✓ Standard (421) Euro (20) King (211) Queen (118) INVESTOR DAY 2020 78#83and reduced the steps at checkout from lengthy checkout process Checkout Shipping Address BED BATH& BEYOND Continue to Contact & Offers Shipping Method Contact & Offers Payment Review & Place Order 7 step checkout inspiration research transaction to simple frictionless checkout Shipping into BED BATH& STONES e time. Pickup Info Shipping & Gift Options Jersey Knit Modal Standard/Queen Charcoal (Set of 2) 3 step checkout Coupon(s) & Payment Free Store Picky Ready in 2 hour Curbside Picku 2795 Richm Staten Is (718) INVESTOR DAY 2020 79#84customer led approach addressed over 100+ changes 300bps decrease in customers who abandon at homepage 10%+ increase in customer satisfaction source: customer abandonment rate as of jul - aug 2020, customer satisfaction as of oct 2020 customer feedback as of october 2020 the checkout process was so smooth very easy, user- friendly navigation I love the inspiration and options! INVESTOR DAY 2020 80#851 elevate customer experience drive conversion 2 unlock omni-always convert customers to omni 3 transform to digital first culture acquire new customers#86customer expectations were ahead of our offering customers who shop more than one channel spend 2x trips 3x ...significant headroom for growth with limited capital needs.... note: vs. non-omni customers INVESTOR DAY 2020 82#87we accelerated launch of omni channel capabilities from single channel delivery Your Cart (1) Email cart Free Standard Shipping Estimated Delivery 10/4 - 10/7 to BOPIS, curbside, same-day delivery BB&B BOPIS BB&B curbside same-day delivery INVESTOR DAY 2020 83#88SMITH our stores are now a competitive advantage Salade REAL SIMPLE Wy BB&B BED BATH& BEYOND bedbathandbeyoncom Please use or recycle BB&B BELAT H 2 BEYONI TH & 凸 need something fast? shop what's on sale 1 INVESTOR DAY 2020 84#89our customer led, omni-always strategy is working 2.3m additional customers converted to omni note: customer conversion for H1 2020 BOPIS and curbside same-day delivery customer feedback as of october 2020 excellent same-day delivery as promised seamless curbside pick up super fast delivery INVESTOR DAY 2020 85#901 elevate customer experience drive conversion 2 unlock omni-always convert customers to omni 3 transform to digital first culture acquire new customers INVESTOR DAY 2020 86#91slow and siloed inconsistent customer experience across channels too many features across platforms that were not being used INVESTOR DAY 2020 87#92integrated "digital first" approach drives a seamless experience marketing BED BATH & BEYOND let's get this fall rolling September issue of mailed circular & social media posts stores harvest in-store photo banners and signage PUMPER -FATCH- 2025 digital BATH & YOND gories ✓ college registry ✓ Shopping for baby? Curbside & Store Pickup at buybuy BABY! Shop now Q Hi Bernard, what are you looking for today? the fall shop FALL TRENDS new season, new decor Usher in autumn with decor that shows your panache. shop fall decor store & curbside pickup fall shop at bedbathandbeyond.com m Springfield explore our fall shop INVESTOR DAY 2020 my accour same Order b 88#93a pivot to agile ways of working is optimizing speed and spend sneak peak into bed, bath & beyond mobile app 2.0 intuitive design with personalization: task aware location aware these screenshots are previews, not the actual screens 9:41 Q What can we help you find? featured O hello, Jon BEYOND + Since 2020 categories Free Shipping on Orders Over $39 My Offers Shop in-store pickup > Buy online, drive up, and get your order in 2 hours or less! Open Orders Get it Your Way! same day delivery > Delivery right to your door for as little as $4.99. o college My Orders BB&B 1/3 ✿ 8 Registry My Offers Idea Boards Account 9:41 Cancel in-store mode tit welcome to 7507 McKnight Road Open until 9pm In-store Pickup Check-in, let us know you're here! all Pay In-store Scan your card at the register. Express Checkout Skip the line - scan, pay, & go! Scan A Barcode View details, reviews, & more! Shop Homestead View Store Map 9:41 Back Aim your device directly at the barcode POPISO Turkish Modal Bath Towel in Grey NON-MEMBER $19.99 or BEYOND+ $15.99 You could save $4.00 (20% off) Sign Up Now! M 803331 GRAY LUXE TOWEL 8497090 20717 Buy Now In-store KWAY View More Details & Options. INVESTOR DAY 2020 G. 89#94we are launching capabilities at record speed and acquiring new customers 1.4m customers new to brand note: new to brand in H1 2020, remaining customer data for Q2 2020 6 younger on average years INVESTOR DAY 2020 90#95re-invent Bed Bath & Beyond as an authority in home through an "omni-always" growth strategy INVESTOR DAY 2020 91#96page intentionally left blank for video INVESTOR DAY 2020 92#97what we are doing to rebuild authority john hartmann chief operating officer BATH & OND sable & Recyclable INVESTOR DAY 2020 93#98place strategic initiatives 1 winning with our omni- always transformation 2 strengthening stores through remodels 3 positioning network for the future INVESTOR DAY 2020 94#99stores at the forefront of omni-always transformation 100% of our stores offer BOPIS and curbside 95% of sales within 25 miles of our stores recently launched ship-from-store excludes hawaii, alaska and PR 75% orders ready within 1-hour INVESTOR DAY 2020 95#100our store base is a strategic asset national market reach close to our customers ability to fulfill omni-orders physical inspiration associate service Bed Bath & Beyond .buybuy BABY ● Harmon INVESTOR DAY 2020 96#101the role of a store is evolving...#102our store network is critical to our customers from stores as a separate channel focus on individual locations fixing what's broken in-store to stores as fulfillment hubs that make shopping easy and inspiring omni-always platform across channels and banners proactively investing for growth and longer-term value creation INVESTOR DAY 2020 98#103we know we have work to do in our stores INVESTOR DAY 2020 99#104we know we have work to do in our stores 35% of baskets are one item or one category 36% of customers can't find what they want source: Bed Bath & Beyond consumer survey apr 2020 (n= 15049), POS analytics 54% think value is most important driver of choice INVESTOR DAY 2020 99#105we are committed to investing in the future of our footprint data-driven planning test and learn prototype Watchung, NJ store 010110 010 001 101101 010 0100 market expansion Houston market scale and learn INVESTOR DAY 2020 100#106page intentionally left blank for video INVESTOR DAY 2020 101#107test and learn prototype has strong performance indicators 7%+ total store sales lift 10%+ gross profit dollar lift return on investment in-line with industry best practices note: lift vs. control group 30%+ reduction in SKUS INVESTOR DAY 2020 102#108market expansion to Houston as next proof of concept full store inspiration room reset signage and omni refresh share of store # of stores footprint addressed 4 100% 3 35-50% 5 -15% Magnolia Kat AVP ess Cy 1069 osenberg The Wood Tomball Jersey Village Sugar Land 1037 announced closure competitors Spring HTR Houston Bellaire Kingwood Pasadena Pearland Alvin Crosby Sheldon La Porte 90 Baytown Beach City Lgue City Santa Fe La arque Liberty INVESTOR DAY 2020 103#109right level of investment in our stores $250m to be invested in our stores over the next 3 years double-digit return on investment -4% sales lift expected -450 stores, representing -60% of our sales INVESTOR DAY 2020 104#110place strategic initiatives 1 winning with our omni- always transformation 2 strengthening stores through remodels 3 positioning network for the future INVESTOR DAY 2020 105#111we moved quickly to right-size our network 200 closures by 2021 $100m+ incremental annual EBITDA note: incremental annual EBITDA once all 200 stores are closed data-driven market optimization wide range of transference scenarios INVESTOR DAY 2020 106#112reset cost base in go-forward stores to drive profitability $20m+ $60m+ in-year rent savings FY 2020 rent savings through FY 2023 INVESTOR DAY 2020 107#113page intentionally left blank for video INVESTOR DAY 2020 108#114on track to exceed our plan store closures 200 BBB stores confirmed for closure FY 2020-2021 33% 71 closures publicly announced of store closures announced all announced stores to be closed by end of FY 2020 disciplined management of inventory and receipts partnership with recognized liquidation service robust in-store and digital local marketing data-driven tracking and monitoring INVESTOR DAY 2020 109#115place value creation from omni-always network strategy strategic initiatives 1 winning with our omni- always transformation 2 strengthening stores through remodels sales margin cash flow 3 positioning network for the future INVESTOR DAY 2020 110#116thank you join us again after the 15 min break INVESTOR DAY 2020 111#117buybuy BABY LIFE IS TOUGH MY DARLING 83 INVESTOR DAY 2020 112#118buybuy BABY is the authority in baby market #1 specialty baby retailer in markets with a presence source: Big Baby Registry survey apr 2020 #5 retailer in baby registry nationally INVESTOR DAY 2020 113#119we are a digital first banner $1b+ current sales 50%+ of sales online this year INVESTOR DAY 2020 114#120we have six major pivots to accelerate growth assortment own brands value solutioning age up footprint INVESTOR DAY 2020 115#121assortment, own brands and value protect current destinations and build authority in new destinations consumer brand category associations in baby top 1 strollers top 5 car seats baby safety travel gear source: Bed Bath & Beyond consumer survey apr 2020 (n= 15049) BBB in top 5 kids furniture ↓ kids bedding and decor opportunities toys and education apparel INVESTOR DAY 2020 116#122assortment, own brands and value protect current destinations and build authority in new destinations consumer brand category associations in baby top 1 strollers top 5 -$10b market baby safety source: NPD sep 2020, IBIS, Grandview car seats travel gear BBB in top 5 $5b market kids fut kids bedding and decor opportunities $25b harket toysam apparel INVESTOR DAY 2020 116#123solutioning make it inspiring and easy by leading with ideas and solutions from category-based store setup furniture & decor bed & bath items diapers & wipes education & toys baby safety to solutioning "refresh & set up nursery" ОС O INVESTOR DAY 2020 117#124page intentionally left blank for video INVESTOR DAY 2020 118#125age up increase customer value through life stage extensions 75% of customers say they would shop buybuy BABY through school ages representative customer value TAM source: Bed Bath & Beyond consumer survey jun 2020 (n= 3652), NPD, Grandview defend 1.0x registry @katiesbliss $10b 2.0x + baby $20b 2.7x build + toddler $40b 3.9x + kids @kendallrayburn $40b INVESTOR DAY 2020 119#126footprint double down on scaling the business nationwide fortify presence in existing markets and online expand into new markets based on demand and growth enhancing physical footprint will enhance our fulfillment capabilities to capture digital demand current buybuy BABY location INVESTOR DAY 2020 120#127buybuy BABY will be a powerful source of shareholder value $1b+ $1.5b+ current sales sales in FY 2023 INVESTOR DAY 2020 121#128proficiencies strategic initiatives 1 modernize digital first supply chain 2 elevate data and tech capabilities INVESTOR DAY 2020 122#129evaluated four value drivers across our supply chain replenishment time and out of stocks time and mode to customer end-to-end operations total supply chain costs customer feedback as of june 2020 over a month and still processing. backordered and no idea when it will be shipped. shipping delays INVESTOR DAY 2020 123#130today, not competitive across many dimensions replenishment time and out of stocks time and mode to customer end-to-end operations total supply chain costs current state strong BED BATH & BEYOND BED BATH & BEYOND BED BATH & BEYOND weak BED BATH & BEYOND BEYOND Bed Bath & Beyond benchmark 35 days replenishment with high out of stocks high uncertainty and variability for deliveries vendor direct network with consolidation hubs inefficiencies driving high, uncompetitive costs INVESTOR DAY 2020 124#131today, not competitive across many dimensions replenishment time and out of stocks time and mode to customer end-to-end operations total supply chain costs future state strong BED BATH & BEYOND BED BATH & BEYOND BED BATH & BEYOND BED BATH & BEYOND weak BEYOND Bed Bath & Beyond benchmark 35 days replenishment with high out of stocks high uncertainty and variability for deliveries vendor direct network with consolidation hubs inefficiencies driving high, uncompetitive costs INVESTOR DAY 2020 124#132our a strong payback investments will have -$250m total capital investment over 3 years <3 year payback period INVESTOR DAY 2020 125#133proficiencies strategic initiatives 1 modernize digital first supply chain 2 elevate data and tech capabilities INVESTOR DAY 2020 126#134our tech needs to evolve to support our transformation legacy tech from disparate applications infrastructure operating model legacy and siloed architecture and applications capital intensive and unreliable reactive and manually- intensive accelerated speed-to-market access to innovation in analytics and automation to cloud empowered foundation modernized and integrated platform cloud-based and scalable automated and agile optimized spend to pay only for what we need INVESTOR DAY 2020 127#135our investments will be aligned to our go forward strategy 1 differentiated create competitive advantage 2 core compete effectively 3 table stakes master the fundamentals INVESTOR DAY 2020 128#136we have defined principles to guide us toward our future state guiding principles industry-leading retail-specific cost effective simplified design principles flexible and scalable customer and omni- channel focused increased standardization investments that drive differentiation INVESTOR DAY 2020 129#137focused transformation of 170+ current applications 85 retained 78 replaced 7 retired merchandising product lifecycle management pricing supply chain INVESTOR DAY 2020 130#138our plan will deliver differentiating capabilities reporting & analytics capabilities throughout the process digital & ecommerce ECOM DOM merchandising assortment demand planning & forecasting pricing optimization space planning replenishment & allocation marketing & customer insights loyalty campaign & content manag personalization customer experience advertising finance, sourcing, real estate, master data core merch / ERP store ops & execution POS in-store & associate tools supply chain E2E inventory visibility WMS + TMS last mile imports people & talent talent management scheduling payroll INVESTOR DAY 2020 131#139our investments will drive modernization and innovation -$250m total capital investment over 3 years application modernization cloud migration operating model transformation INVESTOR DAY 2020 132#140operational transformation will unlock the potential network & remodels BED BATH& BEYOND buybuy BABY proficiencies O INVESTOR DAY 2020 133#141how we plan to create shareholder value gustavo arnal chief financial officer Thup-p-ok INVESTOR DAY 2020 134#142we have the team & vision strategy & plan financial strength & agility to unlock shareholder value creation INVESTOR DAY 2020 135#143delivered strong, pivotal sales and margins results in Q2 what we delivered +6% comp sales growth +88% digital sales +200bps gross margin expansion INVESTOR DAY 2020 136#144monetized $500m+ from non-core assets so far this fiscal year monetizing non-core $500m non-core banners and real estate sales Christmas Tree Shops ONE KINGS LANE I Florence, NJ warehouse note: divestitures subject to customary closing conditions, given that only Personalization Mall, One Kings Lane transactions have closed PERSONALIZATION™ MALL HARBOR LINEN INVESTOR DAY 2020 137#145leading to significant cash generation and financial strength what we achieved $750m $500m cash flow generated in Q2 gross debt reduced, down 30% from Q1 2020 $2b+ liquidity INVESTOR DAY 2020 138#146has continued in momentum september and october mid-single digit comps positive comp sales growth with continued exponential digital growth INVESTOR DAY 2020 139#147we are unlocking a virtuous cycle to drive sustainable value creation our strategic plan to drive omni-always and improve customer experience will accelerate sales and EBITDA growth operational transformation with disciplined capital investments will unlock cash flow generation ...resulting in strong and sustainable shareholder value creation TSR significant value creation operational transformation with disciplined capital investments cash strategic omni. always plan sales and margin INVESTOR DAY 2020 140#1483 year financial roadmap FY 2021 to FY 2023 1 P&L framework sales, margin, EBITDA 2 cash flow generation working capital, capex 3 capital structure & allocation total shareholder return INVESTOR DAY 2020 141#1493 year financial roadmap FY 2021 to FY 2023 1 P&L framework sales, margin, EBITDA 2 cash flow generation working capital, capex 3 capital structure & allocation total shareholder return INVESTOR DAY 2020 141#150portfolio transformation to a profitable and growing core impact of banner divestitures and store fleet optimization on sales ($b) $11.2 non-core stores digital FY 2019A net sales ($2.0 to $3.0) non-core banner divestitures & store fleet optimization +$8.0 to $9.0 stores digital FY 2021E pro-forma INVESTOR DAY 2020 142#151strategic plan will accelerate comp sales growth FY 2021 stable Q1 significant reported growth (non-comp) Q2-Q4 comp vs. strong base FY 2023 low-mid single digit comp sales growth inspire with assortment and own brands sharpen offer with data-driven planning improve customer experience accelerate omni digital first empower high performing teams INVESTOR DAY 2020 143#152substantial potential for gross margin expansion FY 2021 -35% gross margin +200bps vs. FY 2019 FY 2023 38%+ gross margin +500bps vs. FY 2019 own brands penetration data-driven pricing & promo sourcing cost savings supply chain reinvention accelerated omni channel-mix INVESTOR DAY 2020 144#153optimizing costs to drive SG&A efficiencies streamlined overhead structure efficiencies from transformation reduced occupancy costs overall cost discipline ...while investing in talent, marketing, and digital capabilities INVESTOR DAY 2020 145#154unlocking significant EBITDA growth FY 2021 FY 2023 +$500m $850m-$1b mid single-digit margin high single to low double-digit margin INVESTOR DAY 2020 146#1553 year financial roadmap FY 2021 to FY 2023 1 P&L framework sales, margin, EBITDA 2 cash flow generation working capital, capex 3 capital structure & allocation total shareholder return INVESTOR DAY 2020 147#1562020 as the pivot to unlock strong cash flow generation strong cash generation EBITDA growth working capital improvement non-core asset monetization accelerates our transformation capital investments restructuring free cash flow INVESTOR DAY 2020 148#157inventory optimization drives operating cash flow $1b reduction of inventory at retail in FY 2021 vs. FY 2019 3.5X+ inventory turnover by FY 2023 key enablers store fleet optimization non-core banner divestitures category mgmt and centralized planning end-to-end supply chain reinvention INVESTOR DAY 2020 149#158disciplined capital investments drive long-term value creation annual capital investments ($m) -$400+ per year $275 FY 2019A FY 2021-2023E double digit ROIC hurdle rate measured capital deployment with data-driven test & learn INVESTOR DAY 2020 150#159...enabling our operational transformation 3 year plan: cumulative capital investment allocation +$1.0 to $1.5b cumulative capital investment FY 2021-23 -$250m -$250m IT transformation new stores and remodels -$250m supply chain reinvention -$500m IT and store maintenance, other INVESTOR DAY 2020 151#160continue strong and durable free cash flow in FY 2021 to 2023 strong cash balance $1b+ operating cash flow capital investment free cash flow FY 2021 FY 2022 FY 2023 FY 2021 through 2023 +$1.5b to $2.0b +$1.0b to $1.5b +$0.5b to $1.0b INVESTOR DAY 2020 152#1613 year financial roadmap FY 2021 to FY 2023 1 P&L framework sales, margin, EBITDA 2 cash flow generation working capital, capex 3 capital structure & allocation total shareholder return INVESTOR DAY 2020 153#162capital allocation principles 1 invest for growth and transformation 2 ensure financial resilience 3 return cash to shareholders INVESTOR DAY 2020 154