Bubs Australia Ltd. · ASX:BUB
Bubs Australia — 4th Annual Doing Business in China Investor Conference (October 2020)
32 slides from Bubs Australia's conference presentation, Oct 29, 2020
Slide 1: 4th Annual Doing Business in China Investor Conference
For personal use only 4th ANNUAL DOING BUSINESS IN CHINA INVESTOR CONFERENCE 29 October 2020 Jennifer Hawkins Bubs Global Brand Ambassador
Slide 2: Disclaimer
DISCLAIMER DISCLAIMER For personal use only This investor presentation (Presentation) is dated 29 October 2020 and has been prepared by Bubs Australia Limited (ACN 060 094 742) (Bubs or the Company). The material in this Presentation is general background information about Bubs’ activities current a
Slide 3: For personal use only
For personal use only
Slide 4: Vision & Values
VISION & VALUES Creating new generations For personal use only of happy, healthy GOODNESS VERY BEST We believe in wholesome, We believe in being thorough healthy food and a positive and uncompromising, sticking approach to life. to our ethics no matter what. HONESTY PLAYFULNESS We believe in 100% We
Slide 5: Contents Page
For personal use only CONTENTS PAGE China Focus Financial Performance 07 Business Overview 10 Strategic Focus 22 Growth Pathway 30 5
Slide 6: Henry Kissinger wei qi quote
For personal use only “If chess is about the decisive battle, wei qi is about the protracted campaign. The chess player aims for total victorysThewei qi player seeks relative advantage.” — Henry Kissinger
Slide 7: Financial Performance
FINANCIAL For personal use only PERFORMANCE 7
Slide 8: FY20 Group Financial Performance
FINANCIAL PERFORMANCE ASX 300 FY20 GROUP FINANCIAL PERFORMANCE Bubs Australia For personal use only Strong growth across core products and all regions. Optimising portfolio mix to maximise profitability. 70 60 50 40 30 20 10 8
Slide 9: Fuelled by Strong China Demand
FINANCIAL PERFORMANCE ASX 300 FUELLED BY STRONG CHINA DEMAND Bubs Australia For personal use only China remains catalyst for global growth. TOTAL CHINA DIRECT EXPORT GROWTH • Growth driven by demand for Bubs® Goat Infant Formula portfolio. • Supported by expansion into Mother & Baby Stores General T
Slide 10: Business Overview
For personal use only BUSINESS OVERVIEW
Slide 11: Our Unique Value Proposition
BUSINESS OVERVIEW OUR UNIQUE VALUE PROPOSITION For personal use only 360º integrated business model, combining the best of an ingredient and manufacturing business, together with a brand-led and consumer focused portfolio driven business. HIGH MARGIN DAIRY SPECIALIST Infant Formula as the Crown BRAN
Slide 12: Can Only Be Acquired With Experience Over the Long-Term
BUSINESS OVERVIEW CAN ONLY BE ACQUIRED WITH EXPERIENCE OVER THE LONG-TERM For personal use only We are now entering the third phase of the Bubs Journey, with rapid global expansion built on brand trust, invaluable knowledge and intellectual property. CY: 2006 Decade of Brand 2016 2017 +150% 2020 202
Slide 13: Optimising Supply Chain
TITLE OF SECTION IF REQUIRED OPTIMISING SUPPLY CHAIN For personal use only Bubs unique vertical integration model continues to be our foundational strength. UNIQUE SUPPLY SCALABLE UNDERPINNED BY GOAT CHAIN MODEL MANUFACTURING DAIRY DOMINANCE Our secure supply chain Our secure supply chain Our secure
Slide 14: Specialist Leader in Australian Goat Dairy
BUSINESS OVERVIEW SPECIALIST LEADER IN AUSTRALIAN GOAT DAIRY As Australia’s largest goat dairy producer, we have now optimised the highest and best use of an For personal use only exclusive milk source and gained valuable specialist dairy competencies. GOAT DAIRY SPECIALIST “GO-DEEP” STRATEGY CAPABI
Slide 15: One Brand, Multiple Feeding Occasions
BUSINESS OVERVIEW ONE BRAND, MULTIPLE FEEDING OCCASIONS Bubs® caters for all feeding occasions throughout a child’s development. Our comprehensive For personal use only portfolio provides a unique advantage to overcome regulatory hurdles whilst building demand for a sustainable long-term business. H
Slide 16: China General Trade Portfolio
BUSINESS OVERVIEW CHINA GENERAL TRADE PORTFOLIO Provides registered product for physical, direct export to China and opportunity to gain full market For personal use only access across multi-layered General Trade channel. In development – not yet registered 16
Slide 17: Strong China Brand Reach & Messaging
BUSINESS OVERVIEW STRONG CHINA BRAND REACH & MESSAGING For personal use only Leveraging Global Brand Ambassador campaign, through to key opinion leaders and product digital campaign. 李湘 刘遂谦 Li Xiang 年糕妈妈 Nutritionist, Beijing United Famous Chinese Nico Mama Family Healthcare Personality Top Mom & Ba
Slide 18: Building Momentum Within Multi-Layered Ecosystem
BUSINESS OVERVIEW BUILDING MOMENTUM WITHIN MULTI-LAYERED ECOSYSTEM Strategic placements in every corner of the Wei Qi board ready to strike. Applying both ‘push’ and ‘pull’ strategies to build For personal use only momentum across China’s complex ecosystem, pinpointing the most lucrative channel tie
Slide 19: Accelerating CBEC China Consumer Demand
BUSINESS OVERVIEW ACCELERATING CBEC CHINA CONSUMER DEMAND For personal use only Demonstrating CBEC channel shift & continued strength of brand connection with our end China consumers, as well as positive outcome from our China strategic partnerships with Alibaba and Beingmate. Chinese consumer deman
Slide 20: Supporting Australian Daigou Community
BUSINESS OVERVIEW SUPPORTING AUSTRALIAN DAIGOU COMMUNITY For personal use only Responding to Channel shift towards social commerce, merging live streaming and cross border e-commerce. Building momentum in new ways to incentivise, stimulate and educate Channel to reactivate sales. 20
Slide 21: Strong Homebase in Australian Families
BUSINESS OVERVIEW STRONG HOMEBASE IN AUSTRALIAN FAMILIES For personal use only AUTHENTIC AUSTRALIAN PROVENANCE IS KEY TO LONG-TERM SUCCESS IN CHINA. Despite the recent major disruption to the Australian retail channel due to lack of inbound Daigou retail shoppers, our strong domestic market share gr
Slide 22: Strategic Focus
For personal use only FOCUS STRATEGIC 22
Slide 23: Our Core Strategic Priorities
STRATEGY REVIEW OUR CORE STRATEGIC PRIORITIES For personal use only Since listing, our core strategic focus remains unwavering and has been successfully strengthened in both our core business as well as via extensions into new markets and category growth opportunities. MAXIMISE BRAND OPTIMISE GOAT D
Slide 24: China Remains Our Key Focus
STRATEGY REVIEW CHINA REMAINS OUR KEY FOCUS For personal use only LEAD EXPORT MARKET China is our primary export market with the highest growth potential for Goat Infant Formula as the fastest growing market segment. 24
Slide 25: China Largest IMF Market in the World
FINANCIAL PERFORMANCE ASX 300 CHINA LARGEST IMF MARKET IN THE WORLD Bubs Australia For personal use only Goat and Organic Dairy are the two highest growth segments within the China market. China is largest and fastest growing IMF market Goat IMF growing 3x faster than traditional IMF Organic Milk IM
Slide 26: Barriers to Entry for China SAMR General Trade
STRATEGY REVIEW BARRIERS TO ENTRY FOR CHINA SAMR GENERAL TRADE For personal use only INCREASING, BUT STRONG GROWTH OPPORTUNITY REMAINS. The Mother and Baby channel provides high growth potential for Bubs® Goat Infant Formula. (RMB billion) 7629 6526 5583 4776 4085 3495 3000 2018 2019 2020E 2021E 202
Slide 27: "Created by Bubs" Provides Clear Path for SAMR Access
STRATEGY REVIEW “CREATED BY BUBS®” PROVIDES CLEAR PATH FOR SAMR ACCESS For personal use only Bubs signs MOU with joint venture partner Beingmate to acquire ownership interest in dedicated SAMR brand slot at Beingmate China production facility. RAPID GROWTH VIA SAMR APPROVED FORMULATION TAILORED FOR
Slide 28: Unparalleled Vertical Supply Chain Expertise
BUSINESS OVERVIEW UNPARALLELED VERTICAL SUPPLY CHAIN EXPERTISE For personal use only Provides a strong foundation for long-term “Created by Bubs®” localisation market entry strategy. Due diligence for right to acquire a stakeholding in Beingmate production facility in progress. Australia Deloraine D
Slide 29: Bubs Infant Formula China Portfolio Strategy
STRATEGY REVIEW BUBS® INFANT FORMULA CHINA PORTFOLIO STRATEGY For personal use only Infant Formula to remain our key growth engine and catalyst for maximizing China growth potential. Concept in development Segmentation: PREMIUM SUPER - PREMIUM ULTRA - PREMIUM FSANZ – English Label SAMR – China Label
Slide 30: Growth Pathway
For personal use only GROWTH PATHWAY 30
Slide 31: 5-Year Growth Pathway
5-YEAR GROWTH PATHWAY LONG TERM SUSTAINABLE GROWTH AGENDA For personal use only China remains a critical growth pillar in our 5-year growth horizon. $400m Gross Revenue and 40% Gross Margin. 46% 5-year CAGR HORIZON 3: aspirational Create genuinely target. new business Growth Horizon 1 • Growth in ex
Slide 32: Bubs Australia - Growing Generation Joy
— ASX: BUB Bubs Australia Growing Generation Joy
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