Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — FY2025 Earnings Presentation
42 slides from Baby Bunting's earnings presentation, Aug 15, 2025
Slide 1: Delivering on strategy, accelerating growth
a _— BabyBunting — ie Delivering on strategy, | accelerating growth ¥ FY25 Investor Presentation Mark Teperson Chief Executive Officer Darin Hoekman Chief Financial Officer 15 August 2025
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 (15 August 2025). The information contained in this presentation is for general background infor
Slide 3: The best start for the brightest future
BabyBunting The best To support & inspire start for confident parenting, the brightest \ fromnmewborn future to toddler
Slide 4: Our Team
Our Team BabyBunting Our extraordinary team Aligning purpose with performance
Slide 5: Results Summary
Slide 6: FY25 Results Summary
Results Summary BabyBunting FY25 Results Summary Record sales & gross margin delivering Pro Forma! NPAT growth of 228% Total Sales Store of the Future Gross Margin $521.9m <= 28%" 40.2% up 4.7% vspep Maribyrnong & Preston (Vic), Gepps up 340 bps vs pcp comp growth up 4.2% vs pep Cross (SA) exceeding
Slide 7: Results summary: operating highlights
Results summary Operating highlights Enhancing the Customer Experience through our new Store Experience, Range Innovation and Exclusive Brand Partnerships @ 3Store of the Future refurbishments completed in Q4, trading well above expectations @ 2new stores opened in Maroochydore (Qld) and Belmont (WA
Slide 8: Darin Hoekman Chief Financial Officer
FY25 Investor Presentation Darin Hoekman Chief Fin Jaccelerating growth= F¥25 Investor Presentatio
Slide 9: Financial summary: record sales performance
Financial summary Record sales performance Range innovation and omnichannel experience driving customer acquisition and retention Total sales growth wh.’ 1H: 2.4%, 2H: 7.1% Comparable store sales growth w4.2° 1H: 2.2%, 2H: 6.2% iv} Top 7 categories all performing strongly underpinned by range innova
Slide 10: Gross margin chart
41.0% • 40.0% 39.0% 38.0% 37.0% 36.0% 35.0% • •
Slide 11: Financial summary: Profit & loss
Financial summary BabyBunting Profit & loss Record sales and margin results driving EBITDA margin expansion Pro Forma Pro Forma Commentary $ million FY25 FY24 Change Sales 521.9 498.4 +4.7% Total sales of $521.9m, up 4.7% vs pep, driven by Comp growth % 44.2% (6.3%) comparable store sales growth of
Slide 12: Financial summary: Cost of doing business
Financial summary BabyBunting Cost of doing business % of sales CODB' $181.5m, increased by $13.8m vs pop (now 34.8% of sales): o 20.8% 23.0% 23.3% rf 19.2% 19.0% A ra 9 g * Store expenses up $7.0m driven by new and annualising stores $4.3m, 3.75% 2 ge wage inflation partly offset by labour producti
Slide 13: Financial summary: Financial position
Financial summary BabyBunting Financial position Self-funded growth strategy with strong balance sheet foundation sata = Cash & cash equivalents 124 95 Inventory well managed closing at $95.6m, with high Inventories 95.6 94.4 stock availability driving strong final quarter comp Plant and equipment 2
Slide 14: Financial summary: Cash flow
Financial summary Cash flow Strong cash generation funding growth initiatives $ million FY25 FY24 EBITDA’ 28.2 15.9 Movementin working capital 1.3 1.4 Tax Paid (6.4) (2.2) Restructuring costs = (1.4) Net cash flow from operating activities 23.4 13.7 Cash conversion ratio 817% 86.0% New store capex (
Slide 15: New Zealand
Financial summary BabyBunting New Zealand Clear pathway to profitability on the back of improved sales, margin, supply chain cost-outs and network growth Saleeerewthy up 49%,, up 98% vepep ~=— UD. 22%... pep New Zealand delivered full year sales of $16.5m from our 4 stores in 9 (FY25: 4 stores FY24:
Slide 16: Mark Teperson Chief Executive Officer
BabyBunting Mark Teperson Chief Ex 25 Investor | a 16
Slide 17: Strategy Update
= Strategy Update BabyBunting Growth plan Strengthen market * Leverage our strength in hard goods position * Capitalise on significant opportunity in soft goods Baby Bunting has a strong Grow gross + Clear path to grow GP% to 42% in medium term core business as the leading margin * Continue to make
Slide 18: +500 bps gross margin
ma +500 bps gross margin FY24: 36.8% Medium term: 42% FY25 gross margin: 40.2% Up 340 bps FY26 gross margin target: 41% Up 80 bps Growth from Network growth refurbished stores Noy targeting Long term plan of 200 bps 15 on, ”% ~80 additional stores CODB leverage grow’ . on 40 large format stores Netw
Slide 19: Large store refurbishments
ie Large store Increase our large refurbishments format store footprint 40 additional stores (long term target) Payback <3 years
Slide 20: Large format stores deliver great returns
Financial summary BabyBunting Large format stores deliver great returns Improving return metrics across the network on the back of sales, margin and inventory productivity improvements Historical returns from our AU store network Mature Metro Stores (>4 yr) Metro Australia Revenue per store ($m) EBI
Slide 21: Store of the Future
Financial summary Store of the Future New stores performing well above expectations, initially targeting +10% sales uplift, now targeting 15%-25% Maribyrnong Preston Closed 10 weeks! Closed 10 weeks! Re-opened on 19 April Re-opened on 14 June +24% up transactions oH, & +6% basket 70 size ° 28.22. 21
Slide 22: Refurbishment program
Financial summary BabyBunting Refurbishment program Estimated ~$1.1m average capital investment per refurbishment over the life of the program, targeting sub 3 year payback on investment (Vv) FY25 pilot refurb investment averaged $1.5m per store No. of st ‘ jo-test 10-15 stores + Required investment
Slide 23: Focus areas for FY26
BabyBunting Focus areas for FY26 Growth objectives Deliverables FY26 Scale New Product Pipeline isslusellizavelian Optimise existing brands & categories emancee + Evolving our Loyalty Program Experience Experience + Scale team training through our Learning Management System + Leverage Data Personali
Slide 24: Potential small format store target
BabyBunting Potential small format - store target 20-40 stores! s of FY26 pilot stores
Slide 25: Small format stores
Small format stores Our objective for small format stores is to Target higher traffic areas Unlock high value smaller catchments that do not currently support our large format store (inner urban and regional) The new small store format will target revenue of +$2.5 million and ROIC of 50% Higher marg
Slide 26: Small format store pilots
BabyBunting Small format store pilots We have plans for three pilot stores to be in market in 1H FY26 Robina (Qld) Plenty Valley (VIC) Marion (SA) + 6km from our existing Burleigh + 25km north of Melbourne CBD * 143km south of Adelaide Waters large format store + 6km from our existing * 6km from our
Slide 27: Retail Media
Retail Media Retail Media income long-term target 1%-2% of sales
Slide 28: Building a BabyBuntingMedia business
Retail Media BabyBunting Building a BabyBuntingMedia media business: unlocking the value _z of our platform Product display woe A Realising a new revenue stream oe Shelf end through monetising our existing concentrated . oo database of new . in-store and digital assets & expectant BabyBunting parent
Slide 29: Examples of our retail media assets
Retail Media BabyBunting Examples of our retail media assets BabyBuntingMedia instore Physical
Slide 30: Chief Executive Officer Mark Teperson
Chief Executive Officer Mark Teperson
Slide 31: Outlook
Outlook BabyBunting First 6 weeks of trade to 10 August is +4.8% total The Store of the Future refurbishment program is expected to result in some unusual sales growth and +4.0% comparable sales growth comparable store sales patterns through the year as well as some impacts to our CODB + AUcomparabl
Slide 32: FY25
FY25 Investor Presentation
Slide 33: Appendix One: Statutory to Pro Forma Income Statement Reconciliation
Appendix One BabyBunting Statutory to Pro Forma Income Statement Reconciliation FY25 FY24 i ai Pro forma financial results have been calculated to Statutory Pro Forma Pro Forma Statutory Pro Forma Pro Forma exclude the following items (refer Directors’ Report Fva! Adj lac Fy24 Adj Fy24 dated 15 Augu
Slide 34: Appendix One: Pro Forma Income Statement
Appendix One BabyBunting Pro Forma Income Statement AASB 16 Transition Impact Reversal of Reversal of AASB 16 Add Operé ProForma Deprec Qn Lease Pre-AASB16 FY24 — andinterest Expenses FY24 Sales 521.9 521.9 498.4 498.4 Cost of sales (312.3) (312.3) (314.7) (314.7) Gross Profit 209.7 209.7 183.7 183.
Slide 35: Our FY25 Progress
Our FY25 Progress Growth objectives We presented our growth plan in June 2024. The following represents progress that has been made in FY25 @® completed actions ©@ progress Deliverables Enhance € customer Oiesnel) Market leading products e Newexclusive brands & products launched Including Bibs, Subo
Slide 36: Strategy Update: Our FY25 Progress
| Strategy Update Our FY25 Progress Growth objectives Deliverables BabyBunting Drive (| ; | | | platform [Eee Gross Margin Media New Zealand Operating business profitability leverage We presented our growth e Trading terms eo Launched Retail eg Trading terms updated ee Re-shaped our core plan in Jun
Slide 37: Strategy Update: Our FY25 Progress
| Staegy Update Our FY25 Progress Growth objectives Deliverables Disciplined capital management “Ho Grow Return on invested capital Network growth We presented our growth plan in June 2024. The following represents progress that has been made in FY25 Maroochydore (QLD) and Belmont (WA) opened in 1H
Slide 38: Market opportunity
t strateay date BabyBunting Market opportunity $6.3bn ANZ market with significant growth runway Strategy to accelerate market Our core competency The opportunity in soft goods share growth; incremental 1% gain equates to ~$34m revenue. Total market size By region 3% + Leverage market leadership in r
Slide 39: Optimise and grow store network
Optimise and grow store network Expanding the store network into new catchments and meeting more needs of parents through new store formats Network plan developed with assistance of third-party demographer. Inputs include ABS spend, market share data, opportunities and cannibalisation Network growth
Slide 40: Our North Star: operating leverage
Our North Star Operating leverage Clear path to achieve historical EBITDA margins 10% EBITDA margin achieved in FY22 through sustained improvements in gross margin and 7 positive comp sales 5.4% growth leveraging cost base 3.2% FY24 EBITDA —- FY25 EBITDA Long term margin margin target EBITDA margin
Slide 41: Our North Star: gross margin
Our North Star BabyBunting «wen Gross Margin 500 bps gross margin Improving gross margin +500bps from FY24 levels Price Archie _ P iccmmeam to drive to above 42% margin ~4Q% ® ‘. il Es neice : —— In progress ey exclusive brands 1.5% a on-boarded in 1H Significantly progressed mes 36.8% through FY25
Slide 42: Glossary
BabyBunting Glossary Comparable Store Sales Growth Calculated as a percentage change of the total sales generated from stores (including the online store) ina relevant period, compared to the total sales from the same set of opened stores in the prior financial year, provided the stores were open at