Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Shareholder Meeting (November 2017)
17 slides from Baby Bunting's shareholder meeting presentation, Nov 20, 2017
Slide 1: ASX announcement: AGM presentation
20 November 2017 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 2017 Annual General Meeting today. For further infor
Slide 2: 2017 Annual General Meeting
2017 Annual General Meeting 20 November 2017 Ian Cornell Chairman Matt Spencer Chief Executive Officer & Managing Director
Slide 3: Ian Cornell, Chairman
Ian Cornell Chairman 2017 Annual General Meeting
Slide 4: Our Vision
Our Vision TO BE THE MOST LOVED BABY RETAILER TO EVERY FAMILY, EVERYWHERE 3
Slide 5: Growth strategies
Growth strategies Growing market share through: Growth from new store roll-out 1 • Disciplined roll out of 80 plus stores in identified trade catchments with a target of 4 to 8 new store openings each year Growth from existing stores and online 2 • Maturing stores – 46% of stores are less than 3 yea
Slide 6: Matt Spencer, CEO & Managing Director
Matt Spencer CEO & Managing Director 2017 Annual General Meeting
Slide 7: The 2017 financial year
The 2017 financial year 1 • Sales of $278.0 million, up 17.4% on the prior corresponding period • Comparable store sales growth of 6.9% Trading(1) • Gross profit income up 17.4%, gross margin of 34.3% • Cost of doing business (pro forma) improved by 37 bps from FY2016, to 26.0% of sales 2 • EBITDA (
Slide 8: Strategy and some business initiatives
Strategy and some business initiatives Online and digital Operations Expanding online and our interactions with customers Enhancing the way we serve our customers • CRM and marketing automation • Click & Collect (in-store fulfilment at around 3 hours) • 507,000 email subscribers • Expanding our Cust
Slide 9: Our Core Purpose
NAVIGATING THE EAR YEARS OF PARENTH¢
Slide 10: Investing to grow market share
Investing to grow market share Capital and operating expenditure plan FY2018 • Investment in new stores, plus ~$4 million capital for infrastructure and capability to deliver growth: • refurbishment of Thomastown store – now complete • investment on in-store customer experience projects • further ro
Slide 11: Baby Bunting's store network update
Baby Bunting’s store network update 44 stores across Australia, with significant roll-out potential to over 80 stores Queensland Helensvale Fortitude Valley North Lakes Capalaba Kawana Macgregor Burleigh Waters Townsville Booval New South Wales and ACT Penrith Auburn Campbelltown Blacktown +3 Warner
Slide 12: Changes in our market
Changes in our market Changing market dynamics Baby Bunting is well positioned for the future Arrival of Amazon • we believe Baby Bunting is well placed • our online presence is supported by our national store network • investment in customer experience and engagement • focus on fulfilment improveme
Slide 13: Some key changes in markets
Some key changes in markets Changes in competitive dynamics occurring in all markets Changes in competitive landscape with the closure of Bubs (late September), Baby Bounce WA (late October) and YCN (November) This provides significant incremental revenue opportunity of around $25 million (per annum
Slide 14: Trading update – sales
Trading update – sales FY2018 YTD* metrics (vs prior corresponding period) • Baby Bunting continued to demonstrate positive market share growth across all regions Comparable All stores stores** • total year-to-date sales up 11.4% and total number Transactions 15.5% 3.1% of transactions up 15.5%
Slide 15: Trading update – gross margin
Trading update – gross margin FY2018 YTD* metrics (vs prior corresponding period) • Gross margin has been impacted across the country year-to-date Gross margin • Price deflation significant at 4.3% year-to-date – Price deflation** 4.3% principally in prams and car safety – offset by Better buying
Slide 16: Outlook
Outlook • Baby Bunting now expects the FY2018 EBITDA (excluding employee equity incentive expenses) to be around that achieved in FY2017 ($23m pro forma EBITDA) • FY2018 full year guidance includes the following key assumptions: • Comparable store sales growth of ~4% for FY2018 • FY2018 new stores (
Slide 17: Important notice
Important notice Forward looking statements This document contains certain forward looking statements and comments about future events, including Baby Bunting’s expectations about the performance of its business. Forward looking statements can generally be identified by the use of forward looking wo
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