2021 ANNUAL REPORT2021 A NNUAL REP ORT

Co-CEO Letter
Dear Stockholders,
At the end of March 2022, we are down more than 50% from our November IPO price. It hurts, and wetake it personally. At the same time, we take great comfort in our ongoing business performance; inshort, our belief in our ability to reach our vision for Allbirds is stronger today than it has ever been.
Before going into a few highlights of the resilience we have demonstrated over the past year, we’dlike to anchor you in some foundational aspects of our business that give us this confidence. Our
experienced leadership team has set Allbirds on a trajectory towards meaningful profitability despite
the tumultuous environment over the past two years. We have a large cash position and healthy
inventory. Our innovation and product engine is humming like never before. We are adding a catalyst
to our core vertical retail distribution strategy with awareness-driving wholesale partnerships forthe first time. And, we are well-positioned to be at the forefront of a generational change aroundenvironmental values infused in the products we use.
Put simply, we are methodically delivering on what we need to build a world-class brand, and webelieve that over time, the market will catch onto what we’re up to.
2021 was just our sixth year in business, and following a year where we delivered 27% net revenue
growth, we expect to surpass $1 billion in cumulative lifetime-to-date net sales during the second
quarter of 2022. Virtually all of that came via our direct channel, coupling an exceptional digital
experience with a growing fleet of brick-and-mortar stores. Last year, we eclipsed 10% aided brandawareness in the United States, and while this is a good start, we are most encouraged by how many
more people we have to meet. With only 39 stores globally, including 27 in the United States, weconsider ourselves early in our journey to build a fleet of stores that reaches many more of our target
consumers, while raising brand awareness. This omni-channel approach is unique for the footwear
industry, which has historically been highly dependent on wholesale relationships, and also generates
financial strength: at the end of 2021, dual-channel customers with a purchase history of over one
year on average spent 1.5x more than similarly aged single-channel repeat customers. Of the over
40% of our customers who have become repeat purchasers through the end of 2021, 14% of themare omni-channel. Each new store allows us to expand this figure. Our Net Promoter Score of northof 80 suggests that when people experience the magic of our nature-derived products, they loveit. We think the combination of large market size, beloved products, and powerful distribution is acompelling model to build the Allbirds brand.
Products, with natural materials innovation at the core, are the most central aspect of what we do at
Allbirds. Our materials allow us to deliver supernatural comfort, style, and performance. We’ve done
this since our inception. We create first-to-the world experiences for our customers, beginning withmerino wool in 2016 and expanding our knit uppers to include eucalyptus fibers in 2018. And, welaunched a midsole technology called SweetFoam® from the waste stream of sugarcane processing in
Brazil, delivering cushy underfoot comfort.

2021 A NNUAL REP ORT

And this innovation engine is just getting going.
We are weeks away from launching a new midsole called SwiftFoam™ that is derived from plant oils
and uses a liquid-flow foam technology to deliver an elevated experience for runners. Later this year,
we intend to launch a product with Plant Leather, a material made from plant oils to compete withleather from cows. Plant Leather uses no plasticizers or other petroleum additives, and according
to our current internal estimates, has the potential to reduce carbon emissions by up to 88% versus
bovine leather! These embody our approach to delivering supernatural products because ofsustainability, not as the end goal.
This alignment of purpose and profit is woven into the DNA of Allbirds. Being a purpose native
company means we built our brand from the ground up with combating climate change in mind.
Because our products embody this purpose, we reach consumers with authenticity. Companies like
Adidas that have been making shoes for 70 years come to us to learn sustainability; our partnershipwith them not only culminated in low-carbon products, but ones that create deep consumer desire.
In November 2021, we extended this thinking to capital markets when we launched our Sustainability
Principles and Objectives Framework (“SPO”) alongside our IPO, creating a new high-water mark forstakeholder engagement. But, we are a brand before we are a stock, hence why it’s important tobring an upbeat and irreverent tone to the otherwise overwhelming topic of climate change. Enter
our friend Travis Barker to introduce the SPO to the world from a bathtub. Similarly, our partnershipwith Marshawn Lynch helped us break down the science of climate change with a smile.
While we deliver real sustainability everyday, and we believe that our commitment to theenvironment makes our products and company better—most in our industry don’t. We sat down toreview competitor messaging around sustainability a few weeks ago, and one advertisement stoodout. It emphasized “performance done sustainably.” Yet, 100% of the company’s products pictured
were made from synthetics derived from petroleum, both shoes and apparel. Unfortunately, specious
claims like this are not at all unusual.
Consumers are smart, however, and they tend to grow wise to falsehoods over time. We believethat we are building the company that tomorrow’s consumer wants. As the consequences of climatechange become ever-present in our lives, we expect more people will be proud to wear our gear—
shoes and apparel that deliver performance and comfort without denting the earth.
And, while we seek to deliver for the environment, we are also laser-focused on profitability andreaching our medium-term target of mid-to high-teens adjusted-EBITDA margin. We believe that
our team—The Flock—is galvanized to grow intelligently and profitably, and to methodically build
a category-shifting brand. We are extremely grateful for the support from our customers andshareholders on this journey.
Tim & Joey

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2021 A NNUAL REP ORT

Forward-Looking Statements
This annual report contains forward-looking statements, including statements regarding ourindustry, business strategy and plans, financial outlook and condition, future results ofoperations, medium-term financial targets, and objectives of management for future operations,such as statements regarding the benefits and timing of the roll-out of new technology andsustainability goals. We have based these forward-looking statements on our current
assumptions, expectations, and projections about future events. Words such as, but not limited
to, “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,”“plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” and “would” and the negative of
these words or other similar terms or expressions to identify forward-looking statements areused. These forward-looking statements are necessarily estimates that involve a number ofrisks and uncertainties that could cause actual results to differ materially from those suggestedby the forward-looking statements. Investors should consider the information contained in ourfilings with the U.S. Securities and Exchange Commission, including our Annual Report on Form
10-K for the fiscal year ended December 31, 2021 enclosed herewith, especially in the“Management’s Discussion and Analysis of Financial Condition and Results of Operations” and“Risk Factors” sections. Other unknown or unpredictable factors also could have material
adverse effects on our future results, performance, or achievements. In light of these risks,
uncertainties, assumptions, and factors, the forward-looking events in this annual report may notoccur. You are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date stated or, if no date is stated, as of the date of this annual
report. We are not under any obligation and do not intend to update or revise any of the forwardlooking statements contained in this annual report to reflect circumstances existing after thedate of this annual report or to reflect the occurrence of future events, even if experience or
future events make it clear that any expected results expressed or implied by those forwardlooking statements will not be realized.