Bubs Australia Ltd. · ASX:BUB
Bubs Australia — 12th Annual Australia & New Zealand Investment Conference (October 2020)
25 slides from Bubs Australia's conference presentation, Oct 15, 2020
Slide 1: Lead Challenger in Global Growth Throughout Macro Disruption
ASX: BUB Bubs Australia LEAD CHALLENGER IN GLOBAL GROWTH= === THROUGHOUT MACRO DISRUPTION a Strategy Update to Cl t | 12th Annual Australia & r New Zealand Investment Conference _ aa Jennifer Hawkins Bubs Global Brand Ambassador
Slide 2: Disclaimer
obs DISCLAIMER DISCLAIMER This investor presentation (Presentation) is dated 15 October 2020 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’ activities current at the date of the
Slide 3: For personal use only
For personal use only
Slide 4: Vision & Values
cbs VISION & VALUES Creating new generations of happy, healthy )Csbs 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: Contents Page
CONTENTS PAGE Business Overview 06 Strategy Review 19 5-Year Growth Pathway 23
Slide 6: Business Overview
orbs BUSINESS ~ OVERVIEW
Slide 7: Our Unique Value Proposition & Investment Case
bobs BUSINESS OVERVIEW OUR UNIQUE VALUE PROPOSITION & INVESTMENT CASE 360° integrated business model, combining the best of an ingredient and manufacturing business, eC together with a brand-led and consumer focused portfolio driven business. HIGH MARGIN —~_ wa = DAIRY SPECIALIST orb Infant Formula
Slide 8: For personal use only
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Slide 9: Macro-Environment Forces & Immediate Term Response
CIS" susie MACRO-ENVIRONMENT FORCES & IMMEDIATE TERM RESPONSE COVID-19 border closures have negatively impacted short term Daigou channel sales. wy CONSUMER BEHAVIOUR & CHANNEL SHIFTING Domestic market share increasing. Despite initial decline after pantry stocking, now seeing recovery of consumptio
Slide 10: Supported by Our Core Competencies
Obs BUSINESS OVERVIEW SUPPORTED BY OUR CORE COMPETENCIES Our key foundational strengths will provide the ability to manage through disruption to unlock growth potential with economic recovery. STRONG BRAND EQUITY Investing to build brand DNA and awareness across group portfolio to drive further stre
Slide 11: For personal use only
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Slide 12: Specialist Leader in Australian Goat Dairy
Obs BUSINESS OVERVIEW SPECIALIST LEADER IN AUSTRALIAN GOAT DAIRY As Australia’s largest goat dairy producer, we have now optimised the highest and best use of an exclusive milk source and gained valuable specialist dairy competencies. CONSUMER « owe & NSIGH> oo Cus GOAT DAIRY SPECIALIST “GO-DEEP” ST
Slide 13: Unparalleled Vertical Supply Chain Expertise
Obs BUSINESS OVERVIEV UNPARALLELED VERTICAL SUPPLY CHAIN EXPERTISE Provides a strong foundation for long-term “Created by Bubs®” localisation market entry strategy. Due Diligence for right to acquire a stakeholding in Beingmate production facility in progress. Australia Deloraine Dairy Beingmate Bei
Slide 14: Global Brand Specialist & Brand Reach
Obs BUSINESS OVERVIEW GLOBAL BRAND SPECIALIST & BRAND REACH Significant global brand assets for regional expansion. BRAND & MARKETING EXPERTISE . Ability to develop scalable and uniquely ownable brand strategy and marketing assets across brand portfolio. Developed Global Brand Ambassador campaign, t
Slide 15: Group Brand Portfolio
bobs BUSINESS OVERVIEW GROUP BRAND PORTFOLIO Our portfolio is led by Bubs®, our hero brand and the catalyst for value creation across the business. “Australian organic goat milk =~ grass fed toddler drink toddler milk Pri 1 eres res R=} 385 ar on pass ° natty une Viostatante . = Our goat dairy speci
Slide 16: Significant Local & Global Distribution Partners
bobs BUSINESS OVERVIEW SIGNIFICANT LOCAL & GLOBAL DISTRIBUTION PARTNERS Domestic Market penetration at record levels. China direct distribution strength via Beingmate (“and Alibaba E-commerce alliance. Pharmacy Grocery Woolworths eG Corporate Daigou « @® aiwcoles bp bot Cross Border E- Commerce AG C
Slide 17: Increasing Domestic Market Share
bobs BUSINESS OVER’ INCREASING DOMESTIC MARKET SHARE Despite the major decline from individual Daigou retail sales, Bubs FY21 Q1 domestic retail sales for total Bubs infant formula is up 29% pcp (excluding Corporate Daigou sales). Goat RRP increase was also successfully implemented over this same pe
Slide 18: Accelerating CBEC China Consumer Offtake Sales
Obs BUSINESS OVERVIEW ACCELERATING CBEC CHINA CONSUMER OFFTAKE SALES Demonstrating CBEC channel shift & continued strength of brand connection with our end China consumer, as well as positive outcome from our China strategic partnerships. ( .—— | Total China CBEC - platform offtake sales to end conu
Slide 19: Strategy Review
For personal use only
Slide 20: Our Core Strategic Priorities
FUTUR TRAT BG FOUNDA TIONAE BUILDING_BLOGKY 5 Obs STRATEGY REVIEW OUR CORE STRATEGIC PRIORITIES Since listing, our core strategic focus remains unwavering and has been successfully strengthened in both our core business as well as via extensions into new markets and category growth opportunities. MA
Slide 21: Bubs Infant Formula China Portfolio Strategy
Obs STRATEGY REVIEW BUBS® INFANT FORMULA CHINA PORTFOLIO STRATEGY Infant Formula to remain our key growth engine and catalyst for maximizing China growth potential ie 3 i ees 3t _—— Concept in development Segmentation: PREMIUM SUPER - PREMIUM ULTRA - PREMIUM SAMR - China Label FSANZ - English Label
Slide 22: Adjacent Category Growth Strategy
ADJACENT CATEGORY GROWTH STRATEGY Organically extend into complementary adjacent categories which leverage existing core competencies and consumer audiences via new consumption occasions. TARGET MARKET MOTHER & BABY TARGET MARKET ADULT NUTRITION VITAMIN & MINERAL SUPPLEMENTS (VMS) PLANT BASED LIQUID
Slide 23: 5-Year Growth Pathway
boobs b-YEAR GROWTH PATHWAY
Slide 24: Long Term Sustainable Growth Agenda
bobs 5-YEAR GROWTH PATHWAY LONG TERM SUSTAINABLE GROWTH AGENDA 5-year profitable growth strategy towards $400m target gross revenue. $400m Gross Revenue and 40% Pies Mar. Men 46% 5-year HORIZON 3: aspirational Create genuinely target. new business Growth Horizon 1 HORIZON 2: Nurture emerging busines
Slide 25: Growing Generation Joy
ASX: BUB - Bubs Australia Growing Generation Joy
Bubs Australia — 12th Annual Australia & New Zealand Investment Conference (October 2020) on 6ix