Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Dairy Day (FNZC & Credit Suisse) (April 2019)
20 slides from Bubs Australia's conference presentation, Apr 3, 2019
Slide 1: Dairy Day
For personal use only DAIRY DAY FNZC & CREDIT SUISSE 03.04.2019 1
Slide 2: Disclaimer
DISCLAIMER For personal use only This presentation and any materials provided (materials) have been prepared by Bubs Australia Limited (Bubs) and contains general information about Bubs activities. By accepting the Materials you agree to be bound by the below terms and conditions. Terms and Conditio
Slide 3: Goodness Very Best
For personal use only GOODNESS VERY BEST Inspiring new generations of happy, healthy bubs. HONESTY PLAYFULNESS 3
Slide 4: Snapshot Financial
For personal use only 01 SNAPSHOT FINANCIAL
Slide 5: Record Growth
RECORD GROWTH For personal use only GROUP QUARTERLY GROSS SALES REVENUE 1H19 KEY DRIVERS $25,000,000 Record gross revenue: 1H19 $21.03 million; $21.03M exceeded total FY18 full-year revenue. $20,000,000 $18.4M Driven by strong domestic growth: +412% (5x) pcp, and increased sales to China: +901% (10x
Slide 6: Sales Momentum
SALES MOMENTUM For personal use only HALF YEAR GROSS SALES REVENUE ADULT MILK PRODUCTS BUBS INFANT NUTRITION PRODUCTS $14,000,000 $10,000,000 +26% $9,000,000 $12,000,000 $8,000,000 $10,000,000 $7,000,000 +109% $6,000,000 $8,000,000 $5,000,000 $6,000,000 $4,000,000 $4,000,000 $3,000,000 NuLac Foods A
Slide 7: Growth Drivers: FY19 Strategic Priorities
GROWTH DRIVERS For personal use only FY19 STRATEGIC PRIORITIES INCREASED DOMESTIC INNOVATION MARKET & PRODUCT PENETRATION DEVELOPMENT CHINA VERTICAL CHANNEL INTEGRATION & DEVELOPMENT SUPPLY CHAIN & PARTNERS 7
Slide 8: Vertical Integration
02 For personal use only VERTICAL INTEGRATION 8
Slide 9: Chinese Demand Goat Milk Formula
CHINESE DEMAND GOAT MILK FORMULA For personal use only Goat milk formula is experiencing rapid growth in China, surpassing the global supply growth rate. MARKET SIZE (RETAIL VALUE) | BN RMB CATEGORY POTENTIAL CAGR +28% Goat milk based formula is experiencing 15,5 rapid growth, now accounting for 5-1
Slide 10: Australia's Largest Producer of Goat Dairy Products
TOTAL HERD: ~20,000 TOTAL SUPPLY: ~20M LT p.a. AUSTRALIA’S LARGEST PRODUCER OF For personal use only GOAT DAIRY PRODUCTS Bubs Australia Farms 9,000 goats 7.2M Lt p.a. Bubs NZ Farms 4,800 goats 3.8M Lt p.a. Central Dairy Goats Exclusive Milk Supply Bubs Australia is a clear leader in the goat dairy l
Slide 11: One-Step Processing Tatura (Bega)
ONE-STEP PROCESSING TATURA (BEGA) For personal use only FRESH MILK DIRECTLY TO INFANT FORMULA Bubs has recently entered a long-term manufacturing agreement with Tatura, taking fresh goat milk directly from the farm gate and wet blending to nutritional infant formula base in one step (without first c
Slide 12: Acquisition Deloraine Dairy
ACQUISITION DELORAINE DAIRY For personal use only CNCA CERTIFIED INFANT FORMULA CANNING FACILITY REGULATORY CRICTICAL CONTROL POINT On 1 April, Bubs entered a conditional Sale and Purchase Agreement to acquire 100% of Deloraine Dairy for $35M in the form of cash and scrip, and $15M in deferred payme
Slide 13: Vertical Integration
VERTICAL INTEGRATION For personal use only Supply chain integration and strategic manufacturing partnerships provide Bubs® with a unique provenance positioning, offering consumers and retailers product integrity, traceability, and scalability. AUSTRALIA FARMS NUTRITIONALS CANNING BUBS® BRAND Exclusi
Slide 14: China Channel Development
03 For personal use only CHINA CHANNEL DEVELOPMENT 14
Slide 15: Joint Venture Beingmate
JOINT VENTURE BEINGMATE For personal use only ACCELERATION OF CHINA EXPANSION STRATEGY VIA ACCESS TO INFRASTRUCTURE AND EXPERTISE On 6 March, Bubs entered a MoU to form a JV with Beingmate, one of the largest Chinese owned enterprises in the infant nutrition industry. Beingmate is listed on the Shen
Slide 16: Routes-to-Market China: Multi Channel Strategy
ROUTES-TO-MARKET CHINA For personal use only MULTI CHANNEL STRATEGY PUSH FROM PULL FROM AUSTRALIA CHINA Australian shelf presence C2C Daigou Mother & BabyB2C Cross-border, eCommerce in major supermarkets gift stores, stores & O2O and pharmacies. P&S, KOL. 16
Slide 17: Product Innovation
04 For personal use only PRODUCT INNOVATION 17
Slide 18: First 1,000 Days Premium Infant Nutrition
FIRST 1,000 DAYS PREMIUM INFANT NUTRITION For personal use only Bubs® provides quality Australian nutrition for every feeding occasion and stage of a child’s development. 18
Slide 19: Growth Opportunity: Extending Lifetime Value
GROWTH OPPORTUNITY EXTENDING LIFETIME VALUE For personal use only Bubs Organic® toddler snacks (x8 SKU) to launch into Coles supermarkets nationally in May 2019. 19
Slide 20: Investor Resource Centre
For personal use only INVESTOR RESOURCE CENTRE www.investor.bubsaustralia.com 20
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