Bubs Australia Ltd. · ASX:BUB
Bubs Australia — FY2022 Earnings Presentation
37 slides from Bubs Australia's earnings presentation, Aug 30, 2022
Slide 1: FY22 Annual Results
ASX: BUB e$ ® Bubs Australia | RECORD REVENUE AND PROFIT \ FY22 Annual Results 30 August 2022 organic orass fed todd iit ye ee) teddier SE) milkgrink
Slide 2: Disclaimer
bobs DISCLAIMER DISCLAIMER This presentation (Presentation) is dated 30 August 2022 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 and its subsidiaries and their activities curren
Slide 3: For personal use only
For personal use only
Slide 4: Vision & Values
cbs VISION & VALUES Creating new generations of happy & healthy cobs GOODNESS We believe in wholesome, healthy food and a positive approach to life. HONESTY We believe in 100% transparency, this is ‘clean’ food from a brand you trust. VERY BEST We believe in being thorough and uncompromising, sticki
Slide 5: For personal use only
For personal use only
Slide 6: Year at a Glance: Bubs Winning Formula
bor YEAR AT A GLANCE YEAR AT A GLANCE: BUBS WINNING FORMULA Bubs brand-led vertically integrated model is uniquely positioned to deliver margin accretive global growth. For personal use on Trust in Bubs” brand as clean nutrition expert Bubs? is trusted by millions of families around the world to nou
Slide 7: For personal use only
For personal use only Return to high growth trajectory Delivery of first profit, excluding Significant groupwide gains and more than double prior year non-cash compensation expense optimised product and channel mix Bubs now plays in all 3 of the fastest Record sales and market share gains China reve
Slide 8: Macro Forces: Bubs Response to Market Volatility
bobs YEAR AT A GLANCE MACRO FORCES: BUBS RESPONSE TO MARKET VOLATILITY sS\Pemonstrated strategic focus, resilience and agility to continue high growth agenda despite adversity. MACRO FORCES ™s INFANT FORMULA IS ESSENTIAL Inflationary Diversified assortment in highly valued Pressure non-discretionary
Slide 9: FY22 Financial Review
FY22 FINANCIAL REVIEW
Slide 10: High growth global strategy delivers scale with record earnings
High growth global strategy delivers scale with record earnings, gross margin and revenue. ’ Gross revenue is a non-IFRS measure. Non-IFRS measures have not been subject to audit or review. Gross revenue represents the revenue recognised without rebates and marketing contribution IRI Scan Data, Doll
Slide 11: FY22 Financial Review: Financial Results
bo S’FY22 FINANCIAL REVIEW FINANCIAL RESULTS FY22 ($m) Gross revenue’ Revenue Gross margin Other income / (expense) Operating expenses: Distribution Marketing Employee costs” Admin & other * ersonal use only m g 5 o > os Oo a orp LL Underlying EBITDA profit / (loss)* FY21 ($m) 46.8 39.3 (7.3) (0.2)
Slide 12: Delivering Scale and Profitable Growth
bobs FY22 FINANCIAL REVIEW DELIVERING SCALE AND PROFITABLE GROWTH Sy Now that a position of scale has been met with >$100M gross revenue’ as a base, our next phase will === be margin accretive, driving Underlying EBITDA improvement whilst maintaining a high growth rate. GROUP GROSS REVENUE" ($ milli
Slide 13: For personal use only
For personal use only FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22
Slide 14: Gross Margin Drivers
bobs FY22 FINANCIAL REVIEW GROSS MARGIN DRIVERS Sy Optimised Product and Channel mix with increased Infant Formula and China/USA contribution. _———| = = 1 | use_on u Product Mix Revenue Contribution 26% 20% 60% 40% 27% 0% - - = 20% FY20 FY21 FY22 ig Infant Formula products Adult Goat Dairy products
Slide 15: Underlying EBITDA Improvement
bobs FY22 FINANCIAL REVIEW UNDERLYING EBITDA IMPROVEMENT Top line growth, gross margin’ improvement and disciplined operating expense management delivered the Company's first underlying EBITDA profit’. a o 40.4 10.0 as 4.8 FC 50 (1.5) (2.2) a bo (2.9) | (29.8) Underlying EBITDA Gross Margin’ Distrib
Slide 16: FY22 Robust Balance Sheet
bobs FY22 FINANCIAL REVIEW FY22 ROBUST BALANCE SHEET ollowing a successful Capital Raising of $63m post balance date, Bubs maintains a =—— strong balance sheet with sufficient headroom to fund future high growth trajectory. Post balance 35.0 sheet date 15.4 ©,,, $63m @) 27.9 Successful completion of
Slide 17: Strategic Roadmap
STRATEGIC ROADMAP Growing Generation Joy
Slide 18: Strategic Brand Proposition
obs STRATEIC ROADMAP STRATEGIC BRAND PROPOSITION aS TOSETHELEADING GLOBAL FAMILY NUTRITION BRAND FROM AUSTRALIA | TO BE THE LEADING GLOBAL FAMILY NUTRITION BRAND FROM A RALIA ee Sa a. CREATING NEW GENERATIONS —_ OF HAPPY & HEALTHY BUBS @ Sue Bubs® Trusted Nutrition Clean Label (la Y) — “CHANNELS 3 G
Slide 19: Strategic Growth Strategy
obs STRATEIC ROADMAP STRATEGIC GROWTH STRATEGY Leveraging portfolio expansion and strategic alliances in key markets with highest category growth potential. USA >800,000 Bubs® Infant Formula tins landed in USA since June Accelerated market access with first mover advantage 3.6m $5.6Bn Top 3 Multinat
Slide 20: Diversified Revenue Streams
bobs FY22 FINANCIAL REVIEW DIVERSIFIED REVENUE STREAMS 3 Key Markets BUBS INFANT FORMULA CHANNEL MIX FY22 REVENUE’ CONTRIBUTION Australia Other ° USA Operation Fly Formula commenced in June * USA contribution expected to increase substantially ° USA developments having a positive halo impact on Aust
Slide 21: Australia
AUSTRALIA Growing Generation Joy
Slide 22: Strategic Road Map - Australia
STRATEGIC ROAD MAP - AUSTRALIA Bubs® comprehensive infant formula portfolio has strong appeal with Australian families, providing clean quality infant nutrition for different dietary needs across the three highest value segments of the category. a waa organic grass fed
Slide 23: Australia value sales and market share
For personal use only Value Sales ($'s) Market Share (%)
Slide 24: For personal use only
For personal use only
Slide 25: Video
For personal use only VIDEO <<CLICK HERE>>
Slide 26: China: Growing Brand Power in Evolving New Model
bobs STRATEGIC ROAD MAP - CHINA CHINA: GROWING BRAND POWER IN EVOLVING NEW MODEL Rapid revenue growth in China at a record high driven by the launch of Bubs Supreme® A2 beta-casein ‘ec protein. Investing in building brand traction with modern Chinese families in a continuously evolving market. DAW.
Slide 27: For personal use only
For personal use only
Slide 28: Video
VIDEO <<CLICK HERE>> For personal use only • • • • •
Slide 29: USA: Accelerated Market Access
bobs STRATEGIC ROAD MAP- USA USA: ACCELERATED MARKET ACCESS Since receiving FDA approval to import all 6 Bubs® Infant Formula products 3 months ago, >800,000 tins have landed in the U.S. with ranging in >6,000 stores across 42 States. Aussie Bubs™ Congressional Aussie Bubs™ Aussie Bubs™ is born Repo
Slide 30: USA: US Government Engagement
bobs STRATEGIC ROAD MAP- USA USA: US GOVERNMENT ENGAGEMENT it has been an honour to work closely with the Executive Office to the President, HHS, USDA and FDA, in an exemplary case study of government and business collaborating to solve supply chain disruption. @ © onus Biden @ United States governm
Slide 31: USA: Pathway to Permanent FDA Registration
bobs STRATEGIC ROAD MAP- USA USA: PATHWAY TO PERMANENT FDA REGISTRATION Bubs is committed to supplying American families with our infant formula products for the long-term. CF . . - A Regulatory Roadmap to Permanent Registration To keep this from happening again, we need to change something else, an
Slide 32: USA: National Footprint in All Major Retailers
bobs STRATEGIC ROAD MAP - USA USA: NATIONAL FOOTPRINT IN ALL MAJOR RETAILERS Bubs® Infant Formula is now ranged in over 6,000 stores including the Top 4 infant formula retailers. Bubs recently entered into a Supply Agreement with Wholefoods to range products in >500 stores. >6,000 —— =" stores in 4\
Slide 33: USA: Bubs Approved for WIC Subsidy in 27 States
bobs STRATEGIC ROAD MAP - USA USA: BUBS APPROVED FOR WIC SUBSIDY IN 27 STATES Acceptance into the Women Infants & Children (WIC) government program unlocks 50% of the market. The revised WIC waiver schedule has been extended until 31 December 2022. Interactive Map: where Bubs is an approved WIC Infa
Slide 34: USA: Building Brand Awareness and Conversion
bobs STRATEGIC ROAD MAP- USA USA: BUILDING BRAND AWARENESS AND CONVERSION Launched integrated and targeted consumer marketing campaigns across three strategic pillars. TO BE THE LEADING CLEAN NUTRITION INFANT FORMULA PROVIDER FROM AUSTRALIA GROWTH AMBITION: 8 a Drive consumer brand Engage paediatric
Slide 35: Outlook
bobs OUTLOOK Growing Generation Joy
Slide 36: Outlook
bobs OUTLOOK OUTLOOK With the business achieving scale with all key products and markets in high growth, FY23 focus is on margin accretion and earnings growth whilst maintaining a high growth rate. Focus on further margin improvement opportunities from farm to consumer with priority projects to driv
Slide 37: For personal use only
For personal use only