Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Shareholder Meeting (October 2019)
23 slides from Baby Bunting's shareholder meeting presentation, Oct 8, 2019
Slide 1: ASX Announcement: AGM presentation
8 October 2019 ASX Market Announcements Office Australian Securities Exchange Baby Bunting Group Limited (ASX: BBN) AGM presentation Attached is a copy of the Chairman’s and CEO & Managing Director’s presentation to be delivered at the Company’s 2019 Annual General Meeting today. For further informa
Slide 2: Annual General Meeting
Annual General Meeting 8 October 2019 Ian Cornell Chairman Matt Spencer CEO & Managing Director
Slide 3: 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 (8 October 2019). The information contained in this presentation is for general background infor
Slide 4: Our core purpose and vision
OUR CORE PURPOSE To support new and expectant parents in the early years of parenthood OUR VISION To be the most loved baby retailer for every family, everywhere
Slide 5: FY19 pro forma results summary
FY19 pro forma results summary SALES Total sales growth 19.0% Comparable store sales growth 8.7% $362.3M GROSS Gross Profit income $126.7m PROFIT Gross Profit growth 25.6% 35.0% Gross Profit % up 190 bps EBITDA EBITDA growth 45.9% EBITDA margin % 7.5% $27.1M NPAT NPAT growth 58.2% EPS 12 cents, up 5
Slide 6: Growth strategy – grow market share
Growth strategy – grow market share Investment in digital to deliver the best possible customer 1 experience across channels • Online (inc. Click & Collect) sales growth of 46%, 11.8% of total sales for FY19 • Click and collect sales grew 55% • Website re-platform went live early July 2019 • Engage
Slide 7: FY19 delivered platform for future growth
FY19 delivered platform for future growth Objective was to grow market share and recover profitability post the competitor disruption experienced in FY18 1 Capitalise on market share opportunities from competitor closures 2 Secure prime sites for our store network Stabilise gross margin without 3 co
Slide 8: Structural landscape has changed
Structural landscape has changed Baby Bunting market opportunity remains significant in a changing retail landscape Baby Bunting $2.4bn estimated addressable market (1) Specialty baby retail chain store closures by state (breakdown by category) (F18/FY19 - key competitors only) Other Bubs ~$17m sale
Slide 9: Brand
BRAND 8
Slide 10: Evolving our brand to support the next stage of our journey
Evolving our brand to support the next stage of our journey • Baby Bunting’s core purpose remains constant, now more than ever in our 40th year – supporting new and expectant parents • Right time to assess our brand essence and the way in which we create an emotional connection and engagement with c
Slide 11: Transformation Update
TRANSFORMATION UPDATE 10
Slide 12: Transformation: Investing to grow
Transformation Investing to grow Significant investment in transformational projects to grow profitability and support future growth FY20-FY21: ~$20m capex, ~$5m project expenses, ~$4m accelerated amortisation Significant business transformation project pipeline over next 2 years Website and e-comme
Slide 13: Website & e-commerce re-platform
Website & e-commerce re-platform Website sessions up 8% YTD Website sessions 450,000 • New website platform launched early July 2019 400,000 • Engaging content, including articles to assist customers with their 350,000 parenting & pregnancy journey 300,000 • Technical and website stability issues po
Slide 14: Growth through investing in services
Growth through investing in services Investing in car seat services Expand products and services into adjacent channels / • Successful integration of the recently acquired car customers including child care seat installation businesses into Baby Bunting centres, government agencies, insurance, car h
Slide 15: Supply Chain Strategy & Online Fulfilment Hubs
Supply Chain Strategy & Online Fulfilment Hubs Capturing value through supply chain investment • Investment in a larger Distribution Centre facility to support the long- term aspirations of network growth to 80+ stores • Leveraging scale to achieve efficiency through our own logistics capability and
Slide 16: Private Label & Exclusive Products
Private Label & Exclusive Products ~33% % of Total Sales – Private Label & Exclusive Products 27.6% Private 20.9% Label 11.4% 10.0% Exclusive 7.2% FY15 FY16 FY17 FY18 FY19 YTD • Delivering both improved value for customers and increased gross margins Exclusive • Strategic differentiation from our co
Slide 17: Committed to providing value to our customers, every visit
Committed to providing value to our customers, every visit • Value is the number one driver to purchase in our category • Our goal is to be as competitively priced as the discount department stores and with a far wider range • Builds trust with our customer base • Every Day Low Prices changes the fl
Slide 18: Shopping centre format
SHOPPING CENTRE FORMAT Clear demand for specialty baby goods retailer • Australia’s premier retail destination in shopping centre format • 23m annual footfall & ~$2bn retail sales • Chadstone is now our number one store in terms of transaction volumes (35% higher than the Top 10 store average) • Hig
Slide 19: FY20 operational priorities
FY20 operational priorities 1 Progress our strategic investments to plan 2 Grow gross margin to be greater than 36% without compromising on value to the consumer 3 Accelerate our investment in Private Label products. Grow our Private Label & Exclusive Product sales to exceed 35% of sales Capitalise
Slide 20: FY20 outlook remains unchanged
FY20 outlook remains unchanged • Year-to-date (as at 6 October 2019) comparable store sales growth is 3.1%, reflecting the cycling of unusual trading conditions in Q1 FY19 as a result of the closure of Babies R Us and our clearance activity of some high end cots and prams in September 2018. Online s
Slide 21: Appendices
APPENDICES APPENDICES
Slide 22: Statutory - Pro Forma Income Statement Reconciliation
Statutory - Pro Forma Income Statement Reconciliation FY2019 FY2018 Statutory Add Pro Forma Statutory Add Pro Forma FY19 Pro Forma FY19 FY18 Pro Forma FY18 adjustments (a) (restated) adjustments (a) (restated) $ million Sales 368.0 (5.7) 362.3 304.5 304.5 Cost of sales (239.6) 3.9 (235.7) (203.6) (2
Slide 23: 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 o
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