Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Investor Presentation (December 2019)
31 slides from Bubs Australia's investor presentation, Dec 6, 2019
Slide 1: Investor Capital Raising
— la INVESTOR CAPITAL RAISING ASX: BUB Bub: Australia
Slide 2: Disclaimer
DISCLAIMER bc sbs 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 Conditions fell This pr
Slide 3: Goodness: Creating new generations of happy, healthy bubs
Goodness Creating new generations of happy, healthy bubs
Slide 4: • • • • • • •
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Slide 5: Executive Summary
EXECUTIVE SUMMARY Capital Raising $35 million New retail data driven marketing, expansion of innovation pipeline and Asia footprint. A Placement of $30m at $0.95 per share as pursuant to the Listing Rule 7.1. A Share Purchase Plan (SPP) of $5.0m at the same price as the Placement. Record date of SPP
Slide 6: Financial Overview
= 01 ~ pes; FINANCIAL =e OVERVIEW
Slide 7: Financial Highlights
FINANCIAL HIGHLIGHTS Record Growth Year FY19 results are characterised by our exceptional revenue trajectory. The Company has continued to focus on building scale through channel development, gross margin improvements and further enhancing the integration of our end-to-end supply value chain. ASX 30
Slide 8: Quarterly revenue growth
$50,000,000.00 $45,000,000.00 $40,000,000.00 $35,000,000.00 $30,000,000.00 +154% $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 +58% $5,000,000.00 $- Q1 Q2 Q3 Q4
Slide 9: Growth Strategy
Slide 10: Goat Dairy Market Leader
GOAT DAIRY MARKET LEADER cobs Bubs owns exclusive access to Australia’s largest goat milk pool, providing supply chain security, traceability and scalability. Milk Pool Strength © Bubs is the market leader in goat dairy, producing >65% of all Australian goat milk products. Our herd has grown to c.20
Slide 11: Goat dairy production sources
*Beth A Miller and Christopher P Lu, “Current Status of global dairy goat production: an overview”, Asian- Australasian Journal of Animal Sciences, 2019
Slide 12: Growing to Benefit All Australians
GROWING TO BENEFIT ALL AUSTRALIANS cobs Conversion from goat milk supply, to goat milk powder into infant formula. 7.5% of the 1 of only 15 world’s Goat Milk CNCA accredited facilities in Powder Supply. Australia Key Highlights With Bubs market leading access to an Australian goat milk supply, our a
Slide 13: Existing Product Portfolio
EXISTING PRODUCT PORTFOLIO bc sbs Bubs® caters for all stages of a child's development and feeding occasions. Our suite of adult goat dairy products extends consumption opportunities to the entire family. : Infant Milk Formula Infant Milk Formula Organic Toddler Snacks Australian Goat Milk Organic G
Slide 14: Our Building Blocks
OUR BUILDING BLOCKS Bubs ability to leverage our foundation building blocks is what sets us apart. We have unrivalled strategic equity-linked partnerships and end-to-end vertical integration of our value chain. Product innovation in high growth segments for value creation. JV with Beingmate, Key str
Slide 15: FY20 Focus on Growth Engines
FY20 FOCUS ON 3 GROWTH ENGINES \Cxbs For the remainder of FY20 our focus will be directed on three fundamental drivers for our long-term growth. Sustainable leadership in vertical supply chain value creation. + Our current existing pool alone represents 7 million tins of Australian Sourced Milk per
Slide 16: Scalable Growth
SCALABLE GROWTH Our four key strategic growth pillars have remained unchanged and continue to be our focus. cobs VALUE en CHAIN INTEGRATION BRAND AWARENESS NEW PRODUCT INNOVATION DRIVE = CHANNEL DEVELOPMENT + One-step processing (came into effect in April 2019) improves input costs. + GP improvement
Slide 17: Use of Funds
Slide 18: Use of Funds
USE OF FUNDS With our foundational building blocks now in place, we will focus our capital raising to accelerate growth opportunities across our strategic growth pillars to take market share. SUPPLY CHAIN $3m + Invest in advance for production deposit and procurement of raw materials for unique SAMR
Slide 19: China Marketing — New Retail
CHINA MARKETING — NEW RETAIL Cbs Increase focus for China Marketing across both infant and adult goat dairy nutrition. Investing in user acquisition and loyalty through greater consumer insights across entire Consumer IMF Journey. The consumer purchase journey for infant formula is highly considered
Slide 20: Case Study — Alibaba Global Shopping Festival
CASE STUDY — ALIBABA GLOBAL SHOPPING FESTIVAL bc wbs With the commencement of the first of our acquisition sales drive to build the consumer acquisition pipeline, Bubs are now ahead of the curve in user acquisition and retention initiatives. Strong inaugural campaign, delivering well over A$1m GMV s
Slide 21: China Expansion
CHINA EXPANSION bcos Leveraging new channels and product categories in China. Gaining access to Mother & Baby Stores prior to registration. © Significant opportunity to access Online-to-Offline channel and gain access to Mother & Baby stores prior to SAMR registration through new 020 platform struct
Slide 22: Asian Footprint
ASIAN FOOTPRINT Cbs Expansion plans to enter 3 new markets in Asia in the next 12 months. Asian penetration beyond China. >) The value of the Southeast Asian baby food market is expected to grow to $US8bn (4% CAGR growth) over the next 5 years. (Source: Euromonitor & Expert Interviews) ° Vietnam is
Slide 23: Product Innovation
PRODUCT INNOVATION Cbs Extend into high growth opportunities and leverage existing key partnerships across Asia. Development and launch of new product development to leverage key consumer insights for growth. Developing future innovation pipeline under Serer | © As Australia’s leading goat milk supp
Slide 24: Junior China Label and Junior English Label concepts
Junior China Label Junior English Label (concept) (concept)
Slide 25: Capital Raise Overview
Slide 26: Capital Raise Overview
CAPITAL RAISE OVERVIEW Cbs PLACEMENT * Approximately $35m to be raised through a capital raising comprising a fixed price Institutional Placement ($30m) and Share Purchase Plan ($5m). OFFER TERMS OFFER PRICE * The institutional placement and share purchase plan is priced at $0.95, representing: * 11
Slide 27: Capital Structure & Timetable
CAPITAL STRUCTURE & TIMETABLE Indicative Capital Structure Indicative Timetable 27 Cbs Description Number of Shares Existing Shares on Issue 514,070,874 New Shares to be Issued under Placement 31,578,947 New Shares to be Issued under SPP 5,263,158 Total Shares on Issue post the Offer 550,912,979 Des
Slide 28: MAM OI
MAM OI
Slide 29: Board & Top Shareholders
BOARD & TOP SHAREHOLDERS Dennis Lin recently appointed as Executive Chairman, leading M&A and China strategy. DENNIS LIN Me. Lin was oa {orton years and is Saleitr. Denne ha been el sccounting im Accountant and 29 Prior to Bubs and busines: ong, is wit Bubs" a successlul global brand publicly ited c
Slide 30: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM 30 KRISTY CARR Founder CEO Kristy Carr has an in-degth knowledge of the infant nutrition category and retail sector, with a proven track record of leading and building successful brands and businesses over the past 20 years. Prior to Bubs®, Kristy held international marketi
Slide 31: Bubs Australia
ASX: BUB Bubs Australia Growing Generation Joy
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