Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Shareholder Meeting (October 2021)
22 slides from Baby Bunting's shareholder meeting presentation, Oct 5, 2021
Slide 1: Annual General Meeting
Annual General Meeting 5 October 2021 Ian Cornell Chairman Matt Spencer CEO & Managing Director
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 (5 October 2021). The information contained in this presentation is for general background infor
Slide 3: Supporting new and expectant parents
Supporting new and expectant parents Ian Cornell Chairman 3
Slide 4: Growth strategy - grow market share
Growth strategy - grow market share Building to become the most loved baby retailer for every family 1 Investment in digital to deliver the best possible customer experience across channels and enable new business models 2 Investment to grow market share from our core business 3 Growth from new mark
Slide 5: FY21 financial highlights
FY21 financial highlights 10% EBITDA (1) margin achieved in 2H FY21 FY20 Growth % $m $m Total Sales Growth 468.4 405.2 15.6% - Comparable store sales growth (2) 11.3% 4.9% - Total Online sales 90.8 58.9 54.2% - Total Online % of sales 19.4% 14.5% +485 bps Gross Profit Improvement 173.7 146.9 18.3% -
Slide 6: FY21 operating highlights
FY21 operating highlights Keeping our Team & Customers safe All stores remained open No JobKeeper payments or rent relief received Private Label & Exclusive Product sales growth, now 41.4% of sales Trading commenced online in New Zealand 4 new stores opened Online fulfilment hub stores
Slide 7: Sustainability
Sustainability Baby Bunting is a values driven organisation that seeks to be a good and responsible corporate citizen. Our first Sustainability Report has been released – our strategy has three core commitments: Our People Creating an equitable, inclusive and safe workplace where our team members ca
Slide 8: Matt Spencer
Matt Spencer CEO & Managing Director 8
Slide 9: Excelling in a challenging operating environment
Excelling in a challenging operating environment Ongoing COVID-19 challenges amplified the pace of change and highlighted some key strengths of our business. 1 Keeping our Team and our Customers safe 2 Improvements to our omni-channel capability 3 Leveraging our brand strength and preference 4 Growi
Slide 10: Executing on our FY21 operational plan
Executing on our FY21 operational plan We remain focused on executing our growth strategy: • Expanded our store network by 4 stores with a plan for 100+ stores • Grew gross margin without comprising on value • Investment in Private Label brands & Exclusive products • Expansion of our services busine
Slide 11: Market share growth accelerated
Market share growth accelerated Total Sales ($m) Sales Gross Profit CODB % EBITDA Comp % 500.0 $468.4 $468.4m $173.7m 27.8% $43.5m 480.0 460.0 440.0 $405.2 up 15.6% up 18.3% leverage 14 bps up 29.2% 420.0 400.0 $362.3 380.0 360.0 340.0 $304.5 320.0 $278.0 11.3% All amounts presented on a pro forma b
Slide 12: The strongest nursery brand in the country
the strongest nursery brand in the country Brand BrandAwareness Awareness(1)(1) Brand Brand Preference Preference (1) (2) Net Promoter Score Unaided brand recall is 88%, ...and we are the preferred …providing exceptional customer significantly higher than any retailer place to shop for baby hardgood
Slide 13: Transformation - building the platform for growth
Transformation - building the platform for growth Acquisition of Services Merchandise Financial Point of Sale Business Planning & ERP Acquisition of some car seat Implementation of a robust tool to Review of POS & ERP installation businesses assist in forward planning activities systems Demand Plann
Slide 14: Transformation program for FY22
Transformation program for FY22 Headless e-commerce architecture Go-live early November in Australia Loyalty Program Phase 2 Go-live early November People systems Including HR, payroll and time & attendance Advanced Order Management & Fulfilment Improving online fulfilment efficiency and offering gr
Slide 15: FY22 operating priorities
FY22 operating priorities Focus on executing our strategy of growing market share: • Launch and leverage our investment in headless e-commerce architecture to improve customer experience • Launch phase 2 of the ‘Baby Bunting family’ loyalty program with greater rewards • Open 6 to 8 new stores in Au
Slide 16: Supply Chain – from source to shelf
Supply Chain – from source to shelf Sourcing and availability – our product flow remains strong • Limited product shortages offset by substitute products • Watching brief on intermittent port closures and industrial disputes • Working with suppliers on maintaining strong product flow Global shipping
Slide 17: Impact of lockdowns on sales performance
Impact of lockdowns on sales performance All stores have remained open • Essential & non-discretionary category • Purchasing remains resilient around lockdowns • After lockdowns, sales recovered quickly to pre-lockdown run rates. Sales are not lost. 3rd Trimester Parents with young Shopper Type 1st
Slide 18: Trading update
Trading update Since 12 August, positive comp sales growth achieved Comparable store sales growth continues to improve: Weeks 1 to 7* Weeks 7* to 14 Year-to-date Comparable growth % (6.4%) 3.2% (1.3%) • As at 3 October, year-to-date comparable store sales % ex NSW & ACT 1.0% 10.0% 4.7% growth now -1
Slide 19: Appendices
Appendices 19
Slide 20: Appendix 1: Statutory - Pro Forma Income Statement Reconciliation
Appendix 1: Statutory - Pro Forma Income Statement Reconciliation FY2021 FY2020 Statutory Add Pro Forma Statutory Add Pro Forma FY21 Pro Forma Adj (1) FY21 FY20 Pro Forma Adj (1) FY20 $ million Sales 468.4 468.4 405.2 405.2 Cost of sales (294.7) (294.7) (258.3) (258.3) Gross Profit 173.7 173.7 146.9
Slide 21: Appendix 2: AASB 16 Transition Impact - Pro Forma Income Statement
Appendix 2: AASB 16 Transition Impact - Pro Forma Income Statement FY2021 FY2020 Reversal of AASB 16 Reversal of AASB Pro Forma Depreciation Add Operating Pre-AASB Pro Forma 16 Depreciation Add Operating Pre-AASB FY21 and Interest Lease Expenses 16 FY21 FY20 and Interest Lease Expenses 16 FY20 $ mil
Slide 22: Glossary
Glossary Comparable Store Sales Growth • Calculated as a percentage change of the total sales generated from stores (including the online store) in a relevant period, compared to the total sales from the same set of stores in the prior financial year, provided the stores were open at the beginning o
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