Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Investor Presentation (November 2023)
42 slides from Bubs Australia's investor presentation, Nov 24, 2023
Slide 1: Capital Raising Investor Presentation
Not for release or distribution in the United States Capital Raising Investor Presentation November 2023 Slide 1 of 41
Slide 2: Disclaimer
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 DISCLAIMER This investor presentation (Presentation) is dated 24 November 2023 and has been prepared by Bubs Australia Limited (ACN 060 094 742) (Bubs or the Company). By attending an investor presentat
Slide 3: Disclaimer
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 DISCLAIMER Financial information Unless otherwise stated, all dollar values are in Australian dollars ($ or A$). A number of figures, amounts, percentages, estimates, calculations of value and fractions
Slide 4: Overview
Not for release or distribution in the United States Overview Slide 4 of 41
Slide 5: Today's Presenters
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 TODAY’S PRESENTERS Reg Weine Richard Paine Robin Johnston Chief Executive Officer Chief Operating Officer Chief Financial Officer - and Managing Director Interim Member of Bubs’ senior Appointed Chi
Slide 6: Executive Summary
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 EXECUTIVE SUMMARY Investment New management team embedded with significant experience in infant formula, FMCG and branding highlights #1 Goat Formula brand in Australia1 and USA2 based on market sha
Slide 7: USA Invest for Growth
Not for release or distribution in the United States USA INVEST FOR GROWTH Slide 7 of 41
Slide 8: Bubs is ranged with the major US retailers
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 BUBS IS RANGED WITH THE MAJOR US RETAILERS Slide 8 of 41
Slide 9: USA Growth Engine
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 USA GROWTH ENGINE Weekly USA Revenue & Tins Sold1 $800 18,000 $700 16,000 $600 14,000 12,000 $500 Tins Sold US$'000 10,000 $400 8,000 $300 6,000 $200 4,000 $100 2,000 $0 0 Revenue (LHS) Tins Sold (RHS)
Slide 10: USA Revenue Contribution
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 USA REVENUE CONTRIBUTION Amazon contributed 54% of Bubs’ weekly US revenue at the end of October 2023 Revenue Split by Channel (w/e 8 Jan 2023)1 Revenue Split by Channel (w/e 29 Oct 2023)1 7% 17% 24% US
Slide 11: Capacity Expansion
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 CAPACITY EXPANSION Second shift now required to service growth, driven by strong customer demand in the USA Deloraine Utilisation 100% First shift production is now approaching capacity 90% Cannot c
Slide 12: Company Overview
Not for release or distribution in the United States COMPANY OVERVIEW Slide 12 of 41
Slide 13: Key Infant Formula Markets Which Bubs Plays In
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY INFANT FORMULA MARKETS WHICH BUBS PLAYS IN Bubs is aiming to increase market share in the two largest infant formula markets $8.1b1 $40.4b2 Total U.S. infant Total China infant formula market formul
Slide 14: FY24 Q1 Group Financial Review
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 FY24 Q1 GROUP FINANCIAL REVIEW Strong revenue growth in Australia and the USA Group Revenue Q1 FY24 Product Mix USA now represents 48% of Group revenue Infant formula contributed 83% of gross revenue 12
Slide 15: #1 Domestic Goat Formula Brand
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 #1 DOMESTIC GOAT FORMULA BRAND Bubs holds 51% of the domestic retail goat formula market Total Australian Goat IMF Market Share1 Market Share % Of Total Infant Milk Formula By Brand1 5.0% 4.5% 4.0% 26%
Slide 16: Outlook
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 OUTLOOK Revenue target is on track ($80m in FY24) and Bubs expects to be cash flow positive in FY25 Forecast FY24 net revenue $80m – tracking above forecast Targeted gross margin @40% - broadly in-l
Slide 17: Executing on 5 Point Strategic Plan
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 EXECUTING ON 5 POINT STRATEGIC PLAN Portfolio Working capital USA growth engine Sweat the asset China Reset optimisation and cost discipline Deloraine utilisation $11.6m Q1 FY24 30% underlying inc
Slide 18: China Reset
Not for release or distribution in the United States CHINA RESET Slide 18 of 41
Slide 19: China Reset
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 CHINA RESET Despite a slow start to the year, we expect China to grow strongly in H2 FY24 Slide 19 of 41
Slide 20: China Reset
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 CHINA RESET Bubs and Caprilac brand position strengthened and now recovering as demonstrated through “11.11” event Bubs and Caprilac Tmall Operation optimization for sustainable growth Increasing penetr
Slide 21: CIIE – China International Import Exhibition
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 CIIE – CHINA INTERNATIONAL IMPORT EXHIBITION Bubs team at CIIE Clients and government officials visit at booth Slide 21 of 41
Slide 22: FDA Pathway Progressing
Not for release or distribution in the United States FDA PATHWAY PROGRESSING Slide 22 of 41
Slide 23: Regulatory Approvals
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 REGULATORY APPROVALS Bubs is on track for permanent FDA approval by Oct-25, with the USA poised to deliver substantial growth via e-commerce and traditional retail May 2022: FDA exercised July 2022: FDA
Slide 24: The Bubs Investment Proposition
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 THE BUBS INVESTMENT PROPOSITION Bubs is a global market leader with a differentiated premium goat-based product offering, operating in both the IMF and Adult Nutrition categories Differentiated premium
Slide 25: Capital Raising
Not for release or distribution in the United States CAPITAL RAISING Slide 25 of 41
Slide 26: Capital Raising Overview
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 CAPITAL RAISING OVERVIEW OFFER SIZE AND STRUCTURE Institutional Placement raising $14.0 million and Share Purchase Plan (SPP) to raise up to $14.0 million (Bubs reserves the right, in its absolute discr
Slide 27: Use of Funds
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 USE OF FUNDS The capital raise will enable Bubs to accelerate growth in the USA, invest to expand production to pursue growth, and seek permanent access to the USA infant formula market $ million INVEST
Slide 28: Pro Forma Liquidity Overview
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 PRO FORMA LIQUIDITY OVERVIEW Bubs will have $40.6m of pro forma liquidity following completion of the institutional Placement of $14.0 million Impact on shares on issue Pro forma liquidity Pre-equity Po
Slide 29: Indicative Timetable
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 INDICATIVE TIMETABLE EVENT DATE Trading halt Wednesday, 22 November 2023 Record date for SPP 7:00pm (AEDT) Thursday, 23 November 2023 Placement results announced and SPP announced Friday, 24 November 20
Slide 30: Appendices
Not for release or distribution in the United States CAPITAL RASING PRESENTATION | NOVEMBER 2023 APPENDICES Slide 30 of 41
Slide 31: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS There are a number of risks that are both specific to Bubs and its subsidiaries (Group) and of a general nature, which may affect the future operating and financial performance of the Group an
Slide 32: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS The Group’s ability to raise sufficient further capital within an acceptable timeframe will vary according to a number of factors. Any additional equity funding not undertaken on a pro rata ba
Slide 33: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS Loss of key personnel and recruitment of suitable employees The Group is dependent upon the experience of its Directors, key senior management and staff generally. The loss of any key personne
Slide 34: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS Growth strategy execution and business model disruption The Company may not be able to execute effectively the strategies for its current and future acquired businesses. Future growth strategi
Slide 35: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS 2. COMPLIANCE AND REGULATORY RISKS Foreign regulatory risk and regulatory risk Laws and regulations affect the Group’s operations. There is a risk that a failure to comply with such laws or an
Slide 36: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS 3. FINANCIAL, MARKET AND COMPETITION RISKS Economic, political and general market risks There are general risks associated with investments in equity capital such as Bubs shares. Share market
Slide 37: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS 4. GENERAL INVESTMENT RISKS ASSOCIATED WITH BUBS SHARES General risks associated with investments in equity capital There are general risks associated with any investment in a company listed o
Slide 38: Key Risks
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 KEY RISKS Changes in accounting policy Australian Accounting Standards (AAS) are set by the Australian Accounting Standards Board (AASB) and are outside the control of the Group, the Directors and Bubs
Slide 39: International Offer Restrictions
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 INTERNATIONAL OFFER RESTRICTIONS This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this do
Slide 40: International Offer Restrictions
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 INTERNATIONAL OFFER RESTRICTIONS New Zealand This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (the “FMC
Slide 41: International Offer Restrictions
Not for release or distribution in the United States CAPITAL RAISING PRESENTATION | NOVEMBER 2023 INTERNATIONAL OFFER RESTRICTIONS United States of America This document may not be distributed or released in the United States. This document does not constitute an offer to sell, or a solicitation of
Slide 42: Not for release or distribution in the United States
Not for release or distribution in the United States CAPITAL RASING PRESENTATION | NOVEMBER 2023 Slide 42 of 41
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