Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Shareholder Meeting (November 2018)
17 slides from Baby Bunting's shareholder meeting presentation, Nov 19, 2018
Slide 1: AGM presentation
19 November 2018 ASX Market Announcements Office Australian Securities Exchange Baby Bunting Group Limited (ASX: BBN) AGM presentation Attached is a copy of the Chairman’s and CEO & Managing Director’s presentation to be delivered at the Company’s 2018 Annual General Meeting today. For further infor
Slide 2: 2018 Annual General Meeting
® 2018 ANNUAL GENERAL MEETING 19 NOVEMBER 2018
Slide 3: Ian Cornell, Chairman
gly) me | pene: . -_ 7 the one stop baby akofp IAN CORNELL, CHAIRMAN
Slide 4: Baby Bunting
BABY BUNTING OUR VISION To be the most loved baby retailer for every family, everywhere OUR CORE PURPOSE To support new and expectant parents in navigating the early years of parenthood OUR VALUES Being Being Being Being Being Being Passionate Considerate Honest Positive Focused Bold OUR STRATEGY Di
Slide 5: Matt Spencer, CEO & Managing Director
® MATT SPENCER, CEO & MANAGING DIRECTOR
Slide 6: FY2018 results summary
FY2018 RESULTS SUMMARY 1 • Sales +9.0% to $303.1 million, transaction growth of 12.5% • Comparable store sales flat year on year, comparable store transaction growth of 2.6% Trading • Gross profit income up 5.9%, gross margin of 33.3% (FY17: 34.3%), impacted by price deflation of 3.6% • Cost of doin
Slide 7: The clear leader in specialty baby goods retail
THE CLEAR LEADER IN SPECIALTY BABY GOODS RETAIL BBN estimated Large number of small, Baby goods is a $5.1bn addressable market is specialty players & Sector consolidation market in Australia $2.4bn department stores +8 -45 50 Specialty baby goods retailers in Australia Department stores in Australia
Slide 8: Changes in the market creates opportunity
CHANGES IN THE MARKET CREATES OPPORTUNITY Changes in competition occurred in all markets since September 2017 Specialty baby retailer store closures by state (key competitors only) Estimated Key Competitor Closure dates Stores Sales Bubs ~Sep-17 8 $17m Baby Bounce (WA) ~Nov-17 3 ~$5m 4 Baby Bounce (
Slide 9: Growth strategy – grow market share
GROWTH STRATEGY – GROW MARKET SHARE 1 Invest in digital to deliver the best possible customer experience across channels • Engage and retain the customer through the customer journey and lifecycle • Aiming for same day fulfillment for 90% of consumers • Customer insights and loyalty • Click and coll
Slide 10: Online & digital progression
ONLINE & DIGITAL PROGRESSION Website replatform expected to complete late 2018, delivering a better online customer experience. The website will focus on content and consumer solutions Marketing Automation utilised with personalised communication to ~620,000 Click & Collect customers. sales CRM inve
Slide 11: Investment in the customer experience update
INVESTMENT IN THE CUSTOMER EXPERIENCE UPDATE Progress update • Net Promoter Score of 72 – reflects high engagement with brand • Investment in the in-store customer experience • Team leadership and service training underway • In-store technologies to free up Team Member time to service the customer b
Slide 12: Supply chain strategy update
SUPPLY CHAIN STRATEGY UPDATE Supply chain evolution to lower our current cost model, improve the customer experience through speed to market and increased on-shelf stock availability • Store to door online fulfilment hubs identified and to be commissioned to facilitate same day delivery for online o
Slide 13: Private label & exclusive products update
PRIVATE LABEL & EXCLUSIVE PRODUCTS UPDATE • Leveraging scale to deliver improved ranging, service offers and profitability • Further evolution of private label program to introduce additional lines • Private label and exclusive products • On track to exceed 25% of total sales in FY19 • Long term tar
Slide 14: New stores update
NEW STORES UPDATE Building a network of 80+ stores Number of stores at year end 80+ 80 60 47 42 40 36 31 21 23 19 20 12 15 9 0 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Network Plan • 48th store opened in July 2018 (Toowoomba Qld), 49th store opened in September 2018 (Cha
Slide 15: Chadstone shopping centre – concept images
CHADSTONE SHOPPING CENTRE – CONCEPT IMAGES 14
Slide 16: Outlook
OUTLOOK FY2019 guidance • EBITDA now expected to be in the range of $25.0 million to $27.0 million, representing growth of between ~34% to ~45%. This excludes employee equity incentive expenses • Guidance assumes: • Comparable store sales growth to be mid to high single digits for the year. A key fa
Slide 17: Important notice
IMPORTANT NOTICE Forward looking statements This document contains certain forward looking statements and comments about future events, including Baby Bunting’s expectations about the performance of its business. Forward looking statements can generally be identified by the use of forward looking wo
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