Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Corporate Update (July 2023)
15 slides from Bubs Australia's corporate update, Jul 6, 2023
Slide 1: Strategic Review Update
STRATEGIC REVIEW UPDATE 6 July 2023 1
Slide 2: Disclaimer
DISCLAIMER This presentation is in summary form and is not necessarily complete. It should be read together with the Company’s other announcements lodged with the Australian Securities Exchange. This presentation contains information that is based on projected and/or estimated expectations, assumpti
Slide 3: Contents
CONTENTS BOARD & MANAGEMENT 04 CURRENT STATE 05 STRATEGIC REVIEW 06 STRATEGIC IMPERATIVES 07 OUTLOOK 13 HOW TO VOTE 14 3
Slide 4: Board of Directors and Executive Leadership Team
BOARD OF DIRECTORS Katrina Rathie Paul Jensen Reg Weine Steve Lin Jay Stephenson INDEPENDENT NON-EXECUTIVE INDEPENDENT NON-EXECUTIVE INDEPENDENT NON-EXECUTIVE NON-EXECUTIVE DIRECTOR – COMPANY SECRETARY CHAIR – CHAIR OF THE DIRECTOR – CHAIR OF THE DIRECTOR – MEMBER OF THE MEMBER OF THE NOMINATIONS NO
Slide 5: Current State - Significant Value Destruction
CURRENT STATE - SIGNIFICANT VALUE DESTRUCTION In the three-year period to 3 July 2023, Bubs’ share price declined 80.7% from $0.96 on 3 July 2020 to $0.185 on 3 July 2023. Since the Company’s IPO on 3 January 2017: • the Company has accumulated losses of $240 million; and • raised capital seven time
Slide 6: Strategic Review
STRATEGIC REVIEW • Organisational Design Review - complete • OPEX Review - complete • USA Deep Dive & FDA Review - complete • China Go-to-market, Partnership Model & China Manufacturing JV Review - complete • IBP & S&OP Review - complete 6
Slide 7: Bubs Strategic Imperatives
BUBS STRATEGIC IMPERATIVES Bubs 5-point plan to responsibly manage capital and maximize shareholder value 1 2 3 4 5 USA CHINA PORTFOLIO SWEAT THE WORKING GROWTH RESET OPTIMISATION ASSETS CAPITAL ENGINE GROW & MAXIMISE SHAREHOLDER VALUE 7
Slide 8: USA Growth Engine
USA GROWTH ENGINE Grow ranging in major retailers, scale e-commerce, & secure FDA permanent access to US market Grocery & Pharmacy Retail E-Commerce Aussiebubs.com (D2C) US FDA PERMANENT PATHWAY May 2022: FDA July 2022: FDA announces Dec 2022: FDA issues Bubs a exercised Enforcement Bubs can stay in
Slide 9: China Reset
CHINA RESET Bubs has commenced its China reset, a multi-channel go-to-market strategy with new leadership, new trade partners and focused where Bubs has a competitive advantage – goat IMF & goat adult milk powder New Leadership Jackie Lin CHINA NET SALES ($million) - GM China Willis agreement en
Slide 10: Portfolio Optimisation
PORTFOLIO OPTIMISATION Bubs is a clear market leader in its hero goat product segment, pioneering the IMF category in the USA & China. The global total addressable market for goat IMF, goat adult milk powder and fresh goat milk is estimated to be AUD $4.5Billion* Global leader in infant & adult go
Slide 11: Sweat the Assets
SWEAT THE ASSETS Bubs state-of-art manufacturing facility is underutilised ~ 31% utilisation Revisit SAMR registration Toll manufacturing Selective Private Label (Bovine only) Other 6% 100% 68.5 Headroom ~5m tins 94% 31.5 Utilisation ~2.2m tins FY23 GROW & MAXIMISE SHAREHOLDER VALUE 11
Slide 12: Working Capital
WORKING CAPITAL Disciplined approach to capital management - operating expenses, inventory & cash flow HIGHLIGHTS Current growth plans fully funded Annual OPEX reduced by ~$10M Other Monthly cash burn reduced from ~$5M to 6% ~$2M* 12 months of cash flow funding available Plan to liquidate excess inv
Slide 13: FY24 Outlook & What to Expect From Us
FY24 OUTLOOK & WHAT TO EXPECT FROM US Net Sales Revenue $80M (+35% YOY*) Gross Margin @ 40% Continued FDA Progress Renewed Focus on Infant and Adult Goat Nutrition Working Capital Improvements Improved Transparency & Governance Cash Flow Positive in FY25 *Based on unadjusted & unaudite
Slide 14: Upcoming Shareholder Meeting – Your Vote Counts
UPCOMING SHAREHOLDER MEETING – YOUR VOTE COUNTS Steps on How to Vote are on our Investor website now. Any queries or questions, please contact: Shareholder Enquiries 1 300 038 212 (within Australia) or (02) 9066 4052 (outside Australia) Monday to Friday between 9am and 5pm (AEST) The Board unanimous
Slide 15: Thank You
THANK YOU 15