Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Investor Presentation (August 2022)
35 slides from Baby Bunting's investor presentation, Aug 12, 2022
Slide 1: 1
1
Slide 2: Important notice and disclaimer
Important notice and disclaimer This document is a presentation of general background information about the activities of Baby Bunting Group Limited (Baby Bunting) current at the date of the presentation (12 August 2022). The information contained in this presentation is for general background infor
Slide 3: Supporting new & expectant parents for over 40 years
BabyBunting Supporting new & expectant parents for over 40 years
Slide 4: FY22 Pro Forma Financial Highlights
FY22 Pro Forma" Financial Highlights Sales EBITDA) EPS $507.3m ® $50.5m ® 22.5cps * Total sales growth 8.3% up 16.1% vs pcp up 11.4% vs pcp Comparable store sales growth 5.0% 10% of sales Gross Profit % NPAT Full Year Dividend 38.6% ® $29.6m # 15.6cps # up 151 bps vs pcp up 13.6% vs pcp up 10.6% vs
Slide 5: FY22 Operating Highlights
FY22 Operating Highlights v Keeping our Team & Customers safe LTIFR of 8.44 (down from 9.98) v 4new stores opened (plus 2 relocations & 2 refurbishments) v¥ 48% of online delivery orders processed through our store network v Private Label & Exclusive Product (PLEX) sales now 45.3% of sales v Best Bu
Slide 6: FY22 Financial Performance & Highlights
FY22 Financial Performance & Highlights
Slide 7: Sales now +$500 million
Sales now +$500 million Market share growth continues 8.3% 5.0% 25.2% 9.8% total comparable 2-year sales total sales growth sales growth growth transaction growth A very successful year despite some COVID headwinds Omni-channel customers drive sales performance 4 new stores opened, as well as annual
Slide 8: Digital investment in customer acquisition, CX, platform and team pays dividends
Digital investment in customer acquisition, CX, platform and team pays dividends Total online sales of $112.7m, up 24.2%, now 22.2% of sales + Website visits continue to grow, ~32 million sessions for the year, up 7% vs pcp * Conversion rate up +46 bps vs pcp * Online Delivery sales grew 20.8% + Lev
Slide 9: Gross Margin improvement up bps to 38.6%
Gross Margin improvement up 151 bps to 38.6% No change to promotional calendar vs pcp Gross Profit GP ($m) -@-GP % + Gross margin performance up: Investor Presentation 2022 180% $195.8 * 1Hup 192 bps vs pcp os $173.7 $146.9 * 2H up 115 bps vs pcp $126.7 , . . $1009 S7l% * Covering higher 2H import c
Slide 10: • • • 2.0% 1.8% 1.6% 1.4% 1.2% • 1.0% 0.8% 0.6% • 0.4%
• • • 2.0% 1.8% 1.6% 1.4% 1.2% • 1.0% 0.8% 0.6% • 0.4% 0.2% 0.0% 9.0% 8.0% 7.0% • 6.0% 5.0% • 4.0% 3.0% 2.0% 1.0% • 0.0%
Slide 11: Baby Bunting family launched across all channels
Investor Presentation 2022 Baby Bunting family launched across all channels 81% of sales are transacted by a loyalty member « Launched ‘Baby Bunting family’ across all channels in February 2022 * 1.4m loyalty members with 705,000 members active during the year (adding ~ 25,000 members a month) * Mem
Slide 12: Supporting New Zealand parents with a local team
Investor Presentation 2022 Supporting New Zealand parents with a local team N for busin Ow OPEN To business BabyBunting =e NZ$45Om+ addressable market opportunity * Online sales of A$2.0m in FY22 (fulfilled from AU) * FY22 one-off establishment spend of ~A$1.5m * Significant investment in brand awar
Slide 13: Transformation program
Investor Presentation 2022 Transformation program Progressed with some timing changes as growth projects prioritised * Comprised of a number of large-scale, major projects to modernise systems, branding & supply chain infrastructure — these projects have proven critical in supporting growth * Transf
Slide 14: • • • ✓ • • • ✓ • • • ✓ • •
• • • ✓ • • • ✓ • • • ✓ • • • ✓ • • • ✓ • • • ✓ • • • ✓ • • • • • • • • •
Slide 15: COVID
Investor Presentation 2022 COVID All stores remained open providing essential baby & maternity goods & services Supporting our Team + Paid COVID-19 leave & vaccination leave to support team members Trading impacts * COVID lockdowns change the flow of sales impacting comparable store sales growth. Sa
Slide 16: Supply Chain
Investor Presentation 2022 Supply Chain Managing through headwinds Inflation + Limiting price rises through direct imports, PLEX and utilising our supply chain infrastructure to convert direct to store suppliers to the National DC + Some prices have and will rise but we continue to focus on value fo
Slide 17: Sustainability Strategy
Investor Presentation 2022 Sustainability Strategy A purpose-led organisation working to create a better tomorrow our 2022 Sustainability Report Our People @ Our Communities Our Planet FY22 progress FY22 progress FY22 progress + LTIFR finished at 8.44 (down from 9.98) * $695k raised to support our p
Slide 18: Summary Pro Forma Income Statement
Investor Presentation 2022 Summary Pro Forma Income Statement Pro Forma — Pro Forma FY22 FY21 Change Restated $ million Sales 507.3 468.4 8.3% Cost of sales (811.5) (294.7) Gross Profit 195.8 173.7 12.7% Gross Profit Margin 38.6% 37.1% +151 bps Cost of doing business (2) (145.3) (130.2) Cost of doin
Slide 19: Statement of Financial Position
Statement of Financial Position Well positioned for continued investment in our growth & transformation program Statutory Statutory 26-Jun-22 27-Jun-21 Restated | $ million Cash and cash equivalents 12.2 10.9 Inventories 96.7 80.0 Plant and equipment 30.3 27.2 Goodwill & Intangibles 50.6 47.3 Right
Slide 20: Cash Flow
Investor Presentation 2022 Cash Flow Robust operating cash flow funding investment pipeline FY22 FY2 Operating Cash Flow up $14m YoY to ~ $36m Restated") $ million ~ $17m investment in store and business infrastructure: EBITDA” 50.5 43.5 . - z . a Movement in working capital (9.5) (15.8) * $6.9m in
Slide 21: FY23 & beyond: our market & growth opportunities
FY23 & beyond: our market & growth opportunities
Slide 22: Net Promoter Score and brand metrics
• • • • • • • • • (1) Net Promoter Score (NPS) now includes online browsers and car seat installations, as well as in-store & online purchases, providing richer qualitative data that is driving our customer value proposition
Slide 23: Baby Bunting standing out in a fragmented competitive landscape
Investor Presentation 2022 BabyBunting ® standing out in a fragmented competitive landscape Baby Bunting current store numbers by state & country Drivers of competitive advantage dt Leading omni-channel specialty baby goods retailer Click & Collect increasingly preferred way to shop (~60% of all Onl
Slide 24: Future growth opportunities
Investor Presentation 2022 Future growth opportunities o AU Store Network Redefining our AU Total Introducing a Addressable Market to NO+ $3.5bn . Marketplace stores ° @ NZ Store Network 10+ Range Loyalty Expansion stores BabyBunting am ae
Slide 25: Our omni-channel strategy supports our store network
Investor Presentation 2022 Our omni-channel strategy supports 120+ ANZ STORE our store network NETWORK Network Plan upgraded to 110+ Australian stores ” (up from 100+) and 10+ in New Zealand Store roll-out & mature store EBITDA margin aan Network plan update AU ==NZ_ -®-Mature store EBITDA margin NO
Slide 26: Stores deliver great returns
Investor Presentation 2022 Stores deliver great returns + Mature store ROIC on average >100% * Mature store EBITDA margin ~20%, up ~100 bps from FY21 driven by gross margin improvements and operational efficiency initiatives * New stores opened - Alexandria (NSW), Wagga Wagga (NSW), Shepparton (VIC)
Slide 27: Growth in online shopping expands our addressable market
Investor Presentation 2022 Growth in online shopping expands our addressable market * Our historical view of our total addressable market was based on a targeted age range (0-3 years) and reflected our preferred store formats and consumers’ online shopping preferences + As the Online Baby Goods Mark
Slide 28: (1) Company estimates
• • • • • • • • • (1) Company estimates
Slide 29: Introducing Marketplace
Introducing Marketplace The one stop shop for all baby goods in Australia More products, more brands, more suppliers, and more choice With ~32m website visits per annum, Marketplace presents a significant opportunity Establish Baby Bunting as the leading online player in our chosen markets Provide p
Slide 30: Trading update
Investor Presentation 2022 Trading update As at 10 August 2022, year-to-date: * total sales growth of 19.3% * comparable store sales growth of 15.3%, cycling negative 6.4% last year We expect comparable sales growth to moderate as we cycle periods affected by lockdowns throughout Australia. Through
Slide 31: Appendices
Appendices
Slide 32: Appendix 1: Statutory - Pro Forma Income Statement Reconciliation
Investor Presentation 2022 Appendix 1: Statutory - Pro Forma Income Statement Reconciliation Statutory Pro Forma Statutory Add Pro Forma FY21 Add FY21 FY22_ Pro Forma Adj”) FY22 Restated Pro Forma Adj Restated $ million Sales 507.3 507.3 468.4 468.4 Cost of sales (311.5) (311.5) (294.7) (294.7) Gros
Slide 33: Appendix 2: AASB Transition Impact - Pro Forma Income Statement
Appendix 2: AASB 16 Transition Impact - Pro Forma Income Statement Reversal of AASB Pro Forma Reversal of AASB 16 Pre-AASB 16 ProForma 16 Depreciation Add Operating Pre-AASB 16 FY21 Depreciation and _ Add Operating FY21 FY22 and Interest_Lease Expenses FY22 Restated Interest Lease Expenses___ Restat
Slide 34: Brand health survey results
(3) 3500000 3000000 2500000 • 2000000 1500000 • 1000000 • 500000 0 TKP Baby Bunting Brand Health surveys conducted bi-annually 2015,2017,2019 & 2021 (1) Unaided Brand Awareness: (Q) Thinking about stores that sell baby and children’s products, which store comes to mind first for prams/strollers, car
Slide 35: Glossary
Glossary Comparable Store Sales Growth Calculated as a percentage change of the total sales generated from stores (including the online store) in a relevant period, compared to the total sales from the same set of stores in the prior financial year, provided the stores were open at the beginning of
Baby Bunting Group — Investor Presentation (August 2022) on 6ix