Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Shareholder Meeting (November 2018)
23 slides from Bubs Australia's shareholder meeting presentation, Nov 28, 2018
Slide 1: Bubs Australia 2018 Annual General Meeting
BUBS AUSTRALIA 2018 ANNUAL GENERAL MEETING 28.11.2018 1
Slide 2: Disclaimer
DISCLAIMER This presentation and any materials provided (materials) have been prepared by Bubs Australia Limited (Bubs) and contains general information about Bubs activities. By accepting the Materials you agree to be bound by the below terms and conditions. Terms and Conditions This presentation i
Slide 3: Board of Directors
OF DIRE “Company”) and the Australia entities Limited (theit“Company”) and the entities it Non-Executive Director for the financial controlledyear (“theended 30 for the financial year ended 30 Group”) (appointed 22 December 201 ditor’s report thereon. June 2018 and the auditor’s report thereon. BOAR
Slide 4: First 1,000 Days
FIRST 1,000 DAYS BUBS® PROVIDES QUALITY AUSTRALIAN NUTRITION FOR EVERY OCCASION AND STAGE OF A CHILD’S DEVELOPMENT.
Slide 5: Happy, healthy bubs
GOODNESS VERY BEST Inspiring new generations of happy, healthy bubs. HONESTY PLAYFULNESS 5
Slide 6: A Period of Transition
A PERIOD OF TRANSITION BUILDING STRONG FOUNDATIONS FY18 READY TO SCALE + Strengthening domestic foothold and driving category share growth. + Transformative acquisition of vertically integrated supply chain assets. + Establishing strategic partnerships in China to drive sales and distribution. POISE
Slide 7: Strong Domestic Performance
Retail Pharmacy STRONG DOMESTIC PERFORMANCE Grocery Australian retail touchpoints Bubs® was founded in Sydney in 2006 and upholds an established premium positioning in the domestic infant nutrition category with a loyal and growing consumer base. The Company maintains that a strong brand presence at
Slide 8: #mumtomum
LOCAL INFLUENCERS #mumtomum SOCIAL COMMUNITY Bubs has >120K engaged social followers, including the largest fan base on Instagram and 2nd largest on Facebook in the infant nutrition category. Our social and influencer strategy is underpinned by dynamic content and asset generation to enhance brand e
Slide 9: eCommerce
eCommerce Cross Border B2C eCommerce eCOMMERCE STRATEGIC ALLIANCES WITH ALL MAJOR eCOMMERCE PLATFORMS Throughout the year, significant progress was made in the cross-border eCommerce channel via a strategic partnership with Times New Asia, securing a minimum sales volume commitment of $17 million in
Slide 10: Vertical Integration
VERTICAL INTEGRATION Supply chain integration and strategic manufacturing partnerships provide Bubs® with a unique provenance positioning, offering consumers and retailers product integrity, traceability, and scalability. FARM GATE MILK PROCESSING NUTRITIONALS CANNING BRAND Exclusive milk supply 49.
Slide 11: Australia's Largest Producer of Goat Dairy Products
AUSTRALIA’S LARGEST PRODUCER OF GOAT DAIRY PRODUCTS Bubs Australia is a clear leader in the goat dairy landscape, supplying >60% of Australia’s total goat milk production. Guarantees ongoing exclusive access to locally sourced quality fresh goat milk at a fixed price. Our milk pool has grown to >13
Slide 12: Chinese Demand for Goat Milk Formula
CHINESE DEMAND FOR GOAT MILK FORMULA Goat milk formula is experiencing rapid growth in China. MARKET SIZE (RETAIL VALUE) | BN RMB CATEGORY POTENTIAL CAGR +28% Goat milk based formula is experiencing 15,5 rapid growth, now accounting for 5-10% share of total category +45% 11,6 Category leader Net Rev
Slide 13: Mother & Baby Stores
Mother & MOTHER & Baby Stores BABY STORES BUBS ORGANIC® BABY FOOD LAUNCHES IN MOTHER & BABY STORES Following successful import registration, Bubs Organic® baby food products are being distributed into Mother and Baby physical stores in China, including major Key Accounts in top tier cities. We have
Slide 14: China Brand Ambassadors
CHINA BRAND AMBASSADORS BUBS® CELEBRITY INFLUENCERS In November, carefully selected high-profile ambassadors were appointed to endorse Bubs® brand, including Jiani Zhang, new mum and star of the 2018 hit TV drama ‘Story of Yanxi Palace’ who has >5.7 million Weibo fans, and Dr. Cui Yutao, the most in
Slide 15: C2C Daigou Engagement
C2C Daigou C2C KOL eCOMMERCE DAIGOU ENGAGEMENT The Company has commenced actively engaging the Australian Daigou community, by sponsoring industry events and Key Opinion Leaders (KOL’s). This activity promotes the syndication of Bubs® digital content and product reviews, resulting in increased brand
Slide 16: China KOL Product Reviews
DIGITAL MARKETING CHINA KOL PRODUCT REVIEWS Hundreds of KOL reviews instigated on Chinese social media platforms, including Little Red Book, Baby Tree, Weibo and WeChat, to create social search visibility and drive influential word-of-mouth where mums are most likely to search for product informatio
Slide 17: Positive Changes to China Regulations
POSITIVE CHANGES TO CHINA REGULATIONS CROSS-BORDER E-COMMERCE (CBEC) RECENT POLICY ENHANCEMENTS On 21 November the Chinese government announced the existing cross-border eCommerce (CBEC) policy would remain in place and continue to benefit from more relaxed regulations under their new approach to pr
Slide 18: SAMR Regulation Progress
SAMR REGULATION PROGRESS WELL PROGRESSED WITH SAMR APPLICATION In June 2018, Bubs Australia entered into a long-term Agreement with Australia Deloraine Dairy, one of the 15 infant formula manufacturing facilities in Australia licensed to produce infant formula for export to China. Bubs® was nominate
Slide 19: Performance Update
STRONG REVENUE GROWTH PERFORMANCE UPDATE YOY QUARTERLY GROSS SALES REVENUE CONSISTENT SALES GROWTH $25M FY18 gross sales tripled to $18.42M with 330% net revenue growth YOY. $20 M This momentum continued into Q1 FY19, with quarterly sales revenue up 416% on same period last year to Q2 FY19 $8.98M. B
Slide 20: Product Mix and Channel Mix
PRODUCT CHANNEL MIX MIX FY19 focus is on increasing Infant Formula share of total FY19 focus is on increasing China CBEC share of total business; the most profitable product group. business, plus new China channels: MBS & Corporate Daigou. 2% 1% 13% 20% 30% Infant Formula Domestic FY18 Baby Food FY1
Slide 21: Growth Drivers
GROWTH DRIVERS INCREASED INNOVATION DOMESTIC MARKET AND PRODUCT PENETRATION DEVELOPMENT KEY PILLARS CRITICAL TO DELIVERING ENHANCED THE FUTURE GROWTH OF THE BUSINESS BRAND ASIAN FOCUS AWARENESS AND IMPACT + Optimise channel and product mix for margin improvement to drive profitability. 21
Slide 22: Growth Plans
STRATEGIC PRIORITIES GROWTH PLANS With solid foundations in place, the Company is poised for long-term sustainable growth: VERTICAL CHINA PRODUCT CORPORATE INTEGRATION & CHANNEL INNOVATION STRATEGIC SUPPLY CHAIN DEVELOPMENT PIPELINE PRIORITIES SECURITY + Increase the milk pool + Execute digitally dr
Slide 23: Investor Resource Centre
INVESTOR RESOURCE CENTRE www.investor.bubsaustralia.com 23