Baby Bunting Group Ltd. · ASX:BBN
Baby Bunting — Shareholder Meeting (October 2021)
23 slides from Baby Bunting's shareholder meeting presentation, Oct 5, 2021
Slide 1: AGM presentation announcement
For personal use only 5 October 2021 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 2021 Annual General Meeting toda
Slide 2: Annual General Meeting
For personal use only Annual General Meeting 5 October 2021 Ian Cornell Chairman Matt Spencer CEO & Managing Director
Slide 3: Important notice and disclaimer
Important notice and disclaimer This document is a presentation of general background information about the activities of Baby Bunting Group Limited (Baby Bunting) current at the date of the presentation (5 October 2021). The information contained in this presentation is for general background infor
Slide 4: Supporting new and expectant parents
For personal use only Supporting new and expectant parents Ian Cornell Chairman 3
Slide 5: Growth strategy - grow market share
Growth strategy - grow market share Building to become the most loved baby retailer for every family For personal use only 1 Investment in digital to deliver the best possible customer experience across channels and enable new business models 2 Investment to grow market share from our core business
Slide 6: FY21 financial highlights
FY21 financial highlights 10% EBITDA (1) margin achieved in 2H For personal use only FY21 FY20 Growth % $m $m Total Sales Growth 468.4 405.2 15.6% - Comparable store sales growth (2) 11.3% 4.9% - Total Online sales 90.8 58.9 54.2% - Total Online % of sales 19.4% 14.5% +485 bps Gross Profit Improveme
Slide 7: FY21 operating highlights
FY21 operating highlights For personal use only Keeping our Team & Customers safe All stores remained open No JobKeeper payments or rent relief received Private Label & Exclusive Product sales growth, now 41.4% of sales Trading commenced online in New Zealand 4 new stores opened Online
Slide 8: Sustainability
Sustainability Baby Bunting is a values driven organisation that seeks to be a good and responsible corporate citizen. For personal use only Our first Sustainability Report has been released – our strategy has three core commitments: Our People Creating an equitable, inclusive and safe workplace whe
Slide 9: Matt Spencer, CEO & Managing Director
For personal use only Matt Spencer CEO & Managing Director 8
Slide 10: Excelling in a challenging operating environment
Excelling in a challenging For personal use only operating environment Ongoing COVID-19 challenges amplified the pace of change and highlighted some key strengths of our business. 1 Keeping our Team and our Customers safe 2 Improvements to our omni-channel capability 3 Leveraging our brand strength
Slide 11: Executing on our FY21 operational plan
Executing on our FY21 operational plan For personal use only We remain focused on executing our growth strategy: • Expanded our store network by 4 stores with a plan for 100+ stores • Grew gross margin without comprising on value • Investment in Private Label brands & Exclusive products • Expansion
Slide 12: Market share growth accelerated
Market share growth accelerated Total Sales ($m) Sales Gross Profit CODB % EBITDA Comp % 500.0 $468.4 $173.7m $43.5m For personal use only $468.4m 27.8% 480.0 460.0 440.0 $405.2 up 15.6% up 18.3% leverage 14 bps up 29.2% 420.0 400.0 $362.3 380.0 360.0 340.0 $304.5 320.0 $278.0 11.3% All amounts pres
Slide 13: The strongest nursery brand in the country
the strongest nursery brand in the country For personal use only Brand BrandAwareness Awareness(1)(1) Brand Brand Preference Preference (1) (2) Net Promoter Score Unaided brand recall is 88%, ...and we are the preferred …providing exceptional customer significantly higher than any retailer place to
Slide 14: Transformation - building the platform for growth
Transformation - building the platform for growth Acquisition of Services Merchandise Financial For personal use only Point of Sale Business Planning & ERP Acquisition of some car seat Implementation of a robust tool to Review of POS & ERP installation businesses assist in forward planning activitie
Slide 15: Transformation program for FY22
Transformation program for FY22 Headless e-commerce architecture For personal use only Go-live early November in Australia Loyalty Program Phase 2 Go-live early November People systems Including HR, payroll and time & attendance Advanced Order Management & Fulfilment Improving online fulfilment effi
Slide 16: FY22 operating priorities
FY22 operating priorities For personal use only Focus on executing our strategy of growing market share: • Launch and leverage our investment in headless e-commerce architecture to improve customer experience • Launch phase 2 of the ‘Baby Bunting family’ loyalty program with greater rewards • Open 6
Slide 17: Supply Chain – from source to shelf
Supply Chain – from source to shelf Sourcing and availability – our product flow remains strong For personal use only • Limited product shortages offset by substitute products • Watching brief on intermittent port closures and industrial disputes • Working with suppliers on maintaining strong produc
Slide 18: Impact of lockdowns on sales performance
Impact of lockdowns on sales performance All stores have remained open • Essential & non-discretionary category • Purchasing remains resilient around lockdowns For personal use only • After lockdowns, sales recovered quickly to pre-lockdown run rates. Sales are not lost. 3rd Trimester Parents with y
Slide 19: Trading update
Trading update Since 12 August, positive comp sales growth achieved Comparable store sales growth continues to improve: Weeks 1 to 7* Weeks 7* to 14 Year-to-date For personal use only Comparable growth % (6.4%) 3.2% (1.3%) • As at 3 October, year-to-date comparable store sales % ex NSW & ACT 1.0% 10
Slide 20: Appendices
For personal use only Appendices 19
Slide 21: Appendix 1: Statutory - Pro Forma Income Statement Reconciliation
Appendix 1: Statutory - Pro Forma Income Statement Reconciliation FY2021 FY2020 Statutory Add Pro Forma Statutory Add Pro Forma FY21 Pro Forma Adj (1) FY21 FY20 Pro Forma Adj (1) FY20 For personal use only $ million Sales 468.4 468.4 405.2 405.2 Cost of sales (294.7) (294.7) (258.3) (258.3) Gross Pr
Slide 22: Appendix 2: AASB Transition Impact - Pro Forma Income Statement
Appendix 2: AASB 16 Transition Impact - Pro Forma Income Statement For personal use only FY2021 FY2020 Reversal of AASB 16 Reversal of AASB Pro Forma Depreciation Add Operating Pre-AASB Pro Forma 16 Depreciation Add Operating Pre-AASB FY21 and Interest Lease Expenses 16 FY21 FY20 and Interest Lease
Slide 23: Glossary
Glossary For personal use only Comparable Store Sales Growth • Calculated as a percentage change of the total sales generated from stores (including the online store) in a relevant period, compared to the total sales from the same set of stores in the prior financial year, provided the stores were o
Baby Bunting Group — Shareholder Meeting (October 2021) on 6ix