Luvu Brands, Inc. · OTC:LUVU
Luvu Brands — Sidoti Virtual Investor Conference December 2021
46 slides from Luvu Brands's conference presentation, Dec 9, 2021
Slide 1: Sidoti Virtual Investor Conference
LUVU BRANDS LIBERATOR JAXX WW OTCQB: LUVU Sidoti Virtual Investor Conference December 8-9, 2021
Slide 2: Presented by
Presented by Q stim Mk, Louis Friedman Ron Scott President & Chief _—_Chief Financial Officer Executive Officer & Investor Relations ke} fe ) by ‘es AF \) did . ww a e MA mh. Jordan Friedman Daniel Friedman _— Danny Griffin Director, Mass Director of Operations Creative Director Market, eCommerce 2
Slide 3: Safe Harbor Statement
HAY Safe Harbor Statement Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events, or performance are forward looking statements within the meaning of the federal securities laws. Our actual results may differ materially from those expr
Slide 4: Who We Are: At A Glance
ruYY Who We Are: At A Glance e M revenue growth of 22% High interest rate debt is being retired e Balance sheet is improving ¢ Increasing production capacity * Facilities lease extended for six years ¢ New products being launched Float: 27M Shares Market Cap: $17M Share Price (12/6/21): $23 52-Week
Slide 5: Key Business Highlights
PUY Key Business Highlights ¢ Vertically integrated US manufacturer e Diverse consumer brands with international distribution e 80% of sales are through e-commerce channels including 29% through company owned websites e Fiscal 2021 revenue of $23.1 M ¢ Operating metrics are improving e Attractive va
Slide 6: Track Record of Strong Revenue and Operating Income Growth
PUY Track Record of Strong Revenue and Operating Income Growth Revenue: Operating Expanded Income: from 160 full-time 3-year 3-year employees CAGR CAGR to over 200 17% 112% since 2017
Slide 7: Q1 FY 2022 Highlights
Q1 FY 2022 Highlights Q1 Net Sales Q1 Operating Q1 Adj. TTM EPS Income EBITDA $6.2 M $323,000 $398,000 $0.03 Q1 Sales Record
Slide 8: FY 2021 Net Sales by Product
berth FY 2021 Net Sales = $23 Million Sales by Product Liberator $9,806 Jaxx 6,794 Avana Intimacy Products nee Other 1,079 Total $23,105 \ $9.8, 42% $3.7, 16% $6.8, 29% Liberator Intimacy Products Other
Slide 9: FY 2021 Net Sales by Channel
pathy FY 2021 Net Sales = $23 Million Sales by Channel Direct $6,919 68% = Wholesale Wholesale 15,618 2% Other 568 2 = Direct Total $23,105 © Other
Slide 10: Who We Are
berths Who We Are == = = LUVU Brands is a designer, manufacturer and marketer of a portfolio of consumer lifestyle brands © Over 80% of sales are through e-commerce channels e Vertically-integrated manufacturer with US and Mexico production e Addressing large and growing markets in Sexual Wellness,
Slide 11: Capability
evhhy Capability © 140,000 square foot manufacturing facility e Over 200 full-time US employees, plus another 25 in Mexico e Production capacity in excess of $50 million e Over $1 million in new equipment installed during 2021
Slide 12: Increased productivity through automation
LUVU STRANDS The company is benefiting from increased productivity through automation. Eton Sewing System Foam Compression Luvu Brands, Inc. 12 oTcaB:LUVU
Slide 13: Environmental consciousness and eco-friendly practices
berth As a global company, we know that our choices matter, which is why we strive to maintain environmental consciousness in every aspect of our operations. We take our environmental impact seriously, utilizing eco-friendly processes for every brand, every product, and every package. ECO-FRIENDLY U
Slide 14: Our Brand Portfolio
Our Brand Portfolio LIBERATOR Liberator®, a brand category of iconic products for enhancing sexual performance Luvu Brands, Inc. Jaxx®, a diverse range of casual Avana®, inclined bed therapy fashion daybeds, sofas and products, assistive in relieving medical beanbags made from eco-friendly condition
Slide 15: Our Brand Portfolio
Hv Our Brand Portfolio [panelist] IPLINE Panelist, a selection of padded panel CREATL, a comprehensive creation Zipline, a whimsical collection of sets offered in different sizes that partner for mass-market retailers fun furnishings for children that allow consumers to customize and providing the b
Slide 16: Amazon Sales History FY to FY
rAd Amazon Sales History Fy 417 to FY 21 8,000,000 7,000,000 6,000,000 5,000,000 FY 47: FY 18 FY‘19 FY ‘20 FY ‘21
Slide 17: Mass Market Sales History
LUVU STRANDS Mass Market Sales History FY ‘17 FY 18 FY ‘19 FY ‘20 Luvu Brands, Inc. Mass Market represents 21% of our annual sales. BED BATH & Room&Board: «wayfair [Lowes Walmart Coming Soon: Ashley. HOMESTORE FRONTGATE FY ‘21 7 oTCaB:LUVU
Slide 18: Our Brand Portfolio: Liberator
LUVU Our Brand Portfolio LIBERATOR One of the world’s premier sexual wellness brands that makes the act of love more exciting and rewarding for people of all shapes and sizes. 2 Adam & Eve) HUSTLER Y © Lovehoney PLAYBOY www.liberator.com
Slide 19: Our Brand Portfolio: Liberator
HY Our Brand Portfolio Wedge Ramp Combo www.liberator.com Luvu Brands, Inc. 19 OTCQB:LUVU
Slide 20: Liberator Quarterly Sales History
perth Our Brand Portfolio _ LIBERATOR Quarterly Sales History- Q1 ‘20 to Q1 '22 3,500,000 | 1,500,000 | a 1,000,000 orm emcee weet wats ie www.liberator.com
Slide 21: Growth Strategy: Liberator
HAY Growth Strategy LIBERATOR Active measures being taken to continually grow as a brand category in Sexual Wellness and Erotic Luxury: ¢ Expanding retail and e-commerce distribution, taking full advantage of our vacuum compression Point-of-Purchase packaging that allows Liberator products to fit on
Slide 22: Our Brand Portfolio: Jaxx
PUY Our Brand Portfolio J/AQOT Sustainably sourced, space-saving, foam furniture that’s a combination of “feel-good” and “feels good.” What began as a rejuvenation of the bean bag has since expanded into a game-changing collection of modular foam furniture fit for indoors, outdoors, sitting, gaming,
Slide 23: Our Brand Portfolio: Jaxx
Our Brand Portfolio JAE Cocoon Foam ag Kids Fur Beanbags www.jaxxbeanbags.com
Slide 24: Growth Strategy: Jaxx
HAY Growth Strategy J/AQOK Active measures being taken to continually grow as a brand category in ‘ Outdoor Living and Convertible Furniture: e Jaxx Outdoor — Expanding our product line into Marine and Hospitality e Sofas & Daybeds — Utilizing our new C3 machine to compress product packaging further
Slide 25: Our Brand Portfolio: Zipline
ma : Our Brand Portfolio 4 IPLINE Rightfully dubbed “Playroom Adventure Gear,” Zipline children’s furniture marries comfy cushion seating with entertainment, making each piece ideal for playing, gaming, climbing, sleepovers, and everything in between. $6.8 million www.jaxxbeanbags.com
Slide 26: Our Brand Portfolio: Zipline
HY Our Brand Portfolio PlayScape Castle Gate Kids Loveseat www.jaxxbeanbags.com Luvu Brands, Inc. 26 OTCQB:LUVU
Slide 27: Growth Strategy: Zipline
LUVU Growth Strategy ZIPLINE Active measures being taken to continually grow as a brand category in Children’s Furniture and Educational Seating: e Enhancing the Jaxx brand with the Zipline collection of convertible, foam-based play seating for kids. e Continuing our 10+ years of B2B marketing to sc
Slide 28: Our Brand Portfolio: Panelist
berth Qur Brand Portfolio [panelist] Panelist changes the interior design game by offering customers a modifiable headboard in the form of timeless, classic panels in various décor fabrics and color palettes. Whether bedroom artists prefer large statement pieces or are drawn to minimalist design, Pa
Slide 29: Our Brand Portfolio: Panelist
Luvy SRANDS Our Brand Portfolio ee l yy ey i en ed ll Nantucket River North Vienna www.jaxxbeanbags.com Luvu Brands, Inc. 29 OTCQB:LUVU
Slide 30: Growth Strategy: Panelist
PUY Growth Strategy [panelist Active measures being taken to continually grow as a brand category in Interior Design and Bedroom Decor: © Providing novel headboards with endless design possibilities through a selection of preconfigured and customizable layouts for adults and children, shipped throug
Slide 31: Our Brand Portfolio: Avana
LUVU Our Brand Portfolio W/L wz. Avana helps consumers find freedom from aches and pains, experience peace in their surroundings, and maintain vitality with a line of sleep support products that rests at the center point between luxury and functionality. 2008 = 46,000 eo www.avanacomfort.com
Slide 32: Our Brand Portfolio: Avana
HY Our Brand Portfolio Mattress Elevator Kind Bed System Uno Snuggle Pillow www.avanacomfort.com Luvu Brands, Inc. 32 OTCQB:LUVU
Slide 33: Growth Strategy: Avana
HAY Growth Strategy W/L Active measures being taken to continually grow as a brand category in Bed Therapy and Sleep Support: * Redesigning and improving content on avanacomfort.com, launched the updated website and advertising campaign Fall 2021 © Increasing production capacity of top-selling Avana
Slide 34: Jaxx Annual Sales History
berths Our Brand Portfolio JAXX + WAU Annual Sales History 11,000,000 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000
Slide 35: Our Brand Portfolio: CREATL
perth Our Brand Portfolio CRE”) Inventive concepts are a thing of beauty, but they don’t mean much without follow-through... and that’s where CREATL comes in. Our manufacturing team and CAD designers have been guiding mass-market companies through the entire process, from sourcing materials to produ
Slide 36: Our Brand Portfolio: CREATL
wuyy Our Brand Portfolio CRE’ Spazio Room & Board Rooms To Go Luvu Brands, Inc. 36 oTCaB:LUVU
Slide 37: Growth Strategy: Contract Manufacturing
HAY Growth Strategy CRE) | Active measures being taken to continually grow as a brand category in Contract Manufacturing: Offering branding, design, and contract manufacturing services on products within our production and development core competencies, concentrating on Sunbrella outdoor bean bags a
Slide 38: Financials: Sales History FY 2019 to FY 2021
bathe Financials Sales History- FY 2019 to FY 2021
Slide 39: Quarterly Net Sales FY 2019 to Q1 FY 2022
bathe Financials quarterly Net Sales - FY 2019 to Q1 FY 2022 6,000,000 5,000,000 = 2019 4,000,000 m 2020 “mom m 2021 2,000,000 m 2022
Slide 40: Gross Profit History FY 2016 to FY 2021
buy Financials Gross Profit History- FY 2016 to FY 2021
Slide 41: Gross Profit History Quarterly
bathe Financials Gross Profit History- Quarterly from Q1 ‘19 2,000,000 1,800,000 1,600,000 1,400,000 2019 2020 2021 2022 1,200,000 1,000,000 800,000 600,000 400,000
Slide 42: EBITDA History FY 2017 to FY 2021
bathe Financials — epitpA History - FY 2017 to FY 2021 3,000,000 2,000,000 1,000,000 FY4"7 FYB FY19 FY 20 FY 21
Slide 43: Financials Highlights
buy Financials — Highiights 6/30/2019 6/30/2020 6/30/2021 Net Sales $ 17,003 $ 18,376 $ 23,105 Cost of goods sold 12,579 12,850 16,804 Gross Profit 4,424 5,526 6,301 Total operation expenses 4,014 4,075 4,459 Operating Income 410 4,451 1,842 Gain on forgiveness of PPP loan - - 1,096 Total interest a
Slide 44: Financial Review: Gross Profit & SG&A Trends
bathe Financials Financial Review Gross Profit & SG&A Trends QUFY'21 9 Q2FY'21 « Q3FY'21 «Q4FY'21 = QI FY ‘22 Gross Profit $ 1,488 $ 1,566 $ 1,746 $ 1,501 $ 1,499 Gross Margin % 27.7% 27.4% 28.3% 25.7% 24.1% Quarterly SG&A Q1 FY ‘21 Q2 FY ‘21 Q3 FY ‘21 Q4 FY ‘21 Qi FY ‘22 Advertising $ 69 $ 120 $ 18
Slide 45: Catalysts for Continued Growth
berths Catalysts for Continued Growth 1 Build and embellish our direct to cosumer websites Build brand awareness and sales through PR, influencers and aggressive digital marketing campaigns Open new accounts with large national retail chains and websites Develop relationships with other brands, desi
Slide 46: Ronald Scott, Chief Financial Officer
Ronald Scott Chief Financial Officer P: (770)246-6426 E: [email protected] Luvu Brands, Inc. oTCQB:LUVU
Luvu Brands — Sidoti Virtual Investor Conference December 2021 on 6ix