Bubs Australia Ltd. · ASX:BUB
Bubs Australia — H1 FY2022 Earnings Presentation
33 slides from Bubs Australia's earnings presentation, Feb 23, 2022
Slide 1: Record Performance: FY22 Half Year Results
ASX: BUB ee Ps Bubs Australia (_) S | ? ‘GEE J . »; — RECORD PERFORMANCE First EBITDA profit with record revenues and margin gains =FY22 HALF YEAR RESULTS 23 February 2022
Slide 2: Disclaimer
For personal use only DISCLAIMER
Slide 3: For personal use only
For personal use only
Slide 4: Vision & Values
VISION & VALUES For personal use only We believe in wholesome, We believe in being thorough and healthy food and a positive uncompromising, sticking to our approach to life. ethics no matter what. We believe in 100% transparency, We believe in the joy of family time, this is ‘clean’ food from a bran
Slide 5: Agenda
For personal use only 1H FY22 Highlights Financial Performance Strategic Roadmap Summary and Outlook
Slide 6: 1H FY22 Financial Highlights
Cbs 1H FY22 FINANCIAL HIGHLIGHTS
Slide 7: 1H FY22 Financial Highlights
1H FY22 FINANCIAL HIGHLIGHTS 1H FY22 For personal use only Return to high growth trajectory Delivery of first profit Launched sixteen new products across three Lead margin driver product segments in eight different markets Significant groupwide gains Two consecutive quarters Supporting future growth
Slide 8: Executive Summary
EXECUTIVE SUMMARY 1H FY22 For personal use only Major milestones achieved to deliver on despite ongoing challenging market conditions. Secured ranging in + listed with growth growth pcp in Corporate 3 largest food distributors in Coles, Woolworths and Daigou Channel ¹ growth pcp Chemist Warehouse ¹
Slide 9: Executive Summary
EXECUTIVE SUMMARY 1H FY22 For personal use only catering to new usage occasions. ® ® ® New Plant Burst® positioning and Launch of both whole milk and ™ refreshed packaging to tap into skim milk nutritional milk growing global consumer food powders in multiple packaging trends. Available in Chemist f
Slide 10: Record Financial Performance
Obs RECORD FINANCIAL PERFORMANCE ee _— — —
Slide 11: Bubs reports first EBITDA profit
Bubs reports first with , and . For personal use only ¹ ² ¹ Gross revenue is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Gross revenue represents the revenue recognised without rebates and marketing contribution. ² Gross margin is calculated as (Revenue – Cost of
Slide 12: Financial Performance: Sustained Revenue Growth
FINANCIAL PERFORMANCE SUSTAINED For personal use only Bubs operational response to reengineering our supply chain and implementing pivotal sales strategies across all key channels in the wake of COVID-19 disruption, delivered . 19.7 19.9 18.5 14.2 14.5 13.3 12.8 12.8 11.8 9.4 Q1 FY20 Q2 FY20 Q3 FY20
Slide 13: Financial Performance 1H FY22
FINANCIAL PERFORMANCE 1H FY22 For personal use only First half-year results reflect a strong revenue trajectory across all key business segments, returning the business to . 2 ¹ Gross revenue is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Gross revenue represents
Slide 14: Financial Performance 1H FY22
FINANCIAL PERFORMANCE 1H FY22 For personal use only , driven by proactive optimisation of product and channel mix, more efficient trade spend, improved supply chain efficiency, disciplined OPEX and inventory provision reversal.
Slide 15: Financial Performance 1H FY22
FINANCIAL PERFORMANCE 1H FY22 For personal use only ¹ . ² , whilst . ¹ ¹ Gross margin is calculated as (Revenue – Cost of Sales) / Revenue ² Product margin is calculated as (Revenue – Production Costs) / Revenue
Slide 16: 1H FY22 Financial Overview
FINANCIAL PERFORMANCE 1H FY22 FINANCIAL OVERVIEW: For personal use only Bubs realises first ² • ² This was primarily driven by optimising product and channel mix, revising the 22.2 +73% trade spend strategy, improved supply chain efficiency and inventory provision reversal. 18.3 +84% • -1.5 at 1HFY2
Slide 17: Channel Mix
FINANCIAL PERFORMANCE CHANNEL MIX: For personal use only Build on position with consolidation of 2 and . 2 • 31% ³ pcp across Coles, Woolworths 9 and Chemist Warehouse. 18 21 • Lead challenger brand in . • ⁴ of total category. 61 47 44 56 • Working alongside our strategic partners, Bubs has restruct
Slide 18: Product Mix
FINANCIAL PERFORMANCE PRODUCT MIX: For personal use only Growing contribution of – now 58% of first-half gross revenue. 2 7 6 9 14 5 7 4 33 24 49 32 55 58 52 43 FY19 FY20 FY21 1H FY22 1H FY21 1H FY22 1H FY21 1H FY22 ¹ Gross revenue is a non-IFRS measure. Non-IFRS measures have not been subject to au
Slide 19: Financial Performance: Closing Cash
FINANCIAL PERFORMANCE 1H FY22: Closing $ . For personal use only Robust cash balance provides balance sheet capacity to support future growth.
Slide 20: Strategic Roadmap
For personal use only STRATEGIC
Slide 21: Strategic Roadmap: Our Pathway
STRATEGIC ROADMAP OUR PATHWAY TO For personal use only Responding to rapidly changing market dynamics, in 1H FY22, overcoming COVID-19 disruption and challenging macro environment. Continued brand Rebalanced channel Leveraging brand equity Renewed focus on new investment to sustain inventory to meet
Slide 22: Strategic Roadmap: COVID Response
STRATEGIC ROADMAP COVID RESPONSE For personal use only of COVID response plan now complete. • Drive highest • Focus on hero products Goat Milk Infant Formula and & best use of dairy pool CapriLac® Adult Goat Milk Powder. • Sustain Goat Formula margin and brand share. • Improve • Optimise Channel and
Slide 23: Strategic Roadmap: Diversified Growth
STRATEGIC ROADMAP DIVERSIFIED Continue to build that are complementary to unlock value For personal use only within Bubs® Masterbrand equity. Opportunity for a local China route to market Consolidate growth in Deloraine Dairy Solutions: challenger brand with now omni-channel with existing SEA retail
Slide 24: Strategic Roadmap: Domestic
STRATEGIC ROADMAP DOMESTIC: For personal use only Formula now established as the clear Bubs is the Infant Formula manufacturer1 with to longstanding market leader. ¹ and ². Scan Sales growth pcp Coles, Woolworths and Chemist Warehouse combined. ® Formula gross revenue⁴ in Domestic Retail is pcp. Mar
Slide 25: Strategic Roadmap: China CBEC
STRATEGIC ROADMAP CHINA CBEC: For personal use only Bubs® hero range of Goat Infant Formula sales into China is providing to support underlying long-term global growth ambitions. ² JD Global and Tmall TDI. ² 1H FY21 1H FY22 ¹ Gross revenue is a non-IFRS measure. Non-IFRS measures have not been subje
Slide 26: Strategic Roadmap: Daigou
STRATEGIC ROADMAP DAIGOU: For personal use only We continue to actively support the Corporate Daigou Channel to rapidly expand our Chinese consumer base. 1H22 pcp growth FY20 FY21 1H FY22 ¹ Gross revenue is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Gross revenue
Slide 27: Strategic Roadmap: Bubs
STRATEGIC ROADMAP BUBS For personal use only Bubs® was founded in 2006 and has become a , quickly gaining market share from multinational competitors in a near saturated domestic retail footprint. This strong home base enabled the - now a profitable growth engine for the business. , targeting a slic
Slide 28: Strategic Roadmap: USA
STRATEGIC ROADMAP USA: For personal use only Market opportunity is compared to Australia. Bubs is calendar year. ¹ ⁵ ² MAR 22 c ³ MAR 22 JUN 22 DEC 22 ¹ IBIS World Industry Statistics Supermarkets & Grocery Stores in USA, 2002-2027 IBIS World, Supermarkets & Grocery Stores in Australia, September 20
Slide 29: Strategic Roadmap: USA
STRATEGIC ROADMAP USA : For personal use only After successfully launching on , we have now commenced the second phase with and . Build brand awareness, Expand distribution into selective Expand Product Offering. experience and trust within retail chains in strategically Progress FDA registration of
Slide 30: Summary and Outlook
For personal use only SUMMARY AND
Slide 31: Summary and Outlook
SUMMARY AND OUTLOOK For personal use only In 1H22 Bubs realised its . All key business segments have delivered strong underlying growth, demonstrating a clear and positive trajectory towards achieving the Company’s ambitious long-term global growth agenda. ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ As a brand-led business
Slide 32: Questions
For personal use only QUESTIONS
Slide 33: For personal use only
For personal use only 33