Bubs Australia Ltd. · ASX:BUB
Bubs Australia — Shareholder Meeting (November 2020)
53 slides from Bubs Australia's shareholder meeting presentation, Nov 23, 2020
Slide 1: Annual General Meeting
ASX: BUB ubs Australia Cbs BUBS® AUSTRALIA ANNUAL GENERAL MEETING 23 November 2020 | erent Jennifer Hawkins Bubs Global Brand Ambassador
Slide 2: Slide 2
Slide 3: Chairman's Welcome
pCvbs CHAIRMAN'’S WELCOME Dennis Lin Executive Chairman
Slide 4: Bench Strength in Board & Executive Leadership
CDS" cuataman's wercone BENCH STRENGTH IN BOARD & EXECUTIVE LEADERSHIP Solid track record of continually achieving new milestones and executing on M&A opportunities. BOARD OF DIRECTORS DENNIS LIN Executive Chairman KRISTY CARR CEO & Managing Director + China and global + Founder of company in expans
Slide 5: Online Attendees Question Process
pCvbs ONLINE ATTENDEES QUESTION PROCESS LUMI => & When the Question function is available, the Q&A icon will appear at the top of the app choir Welcome to the Annual General Meeting. If you would like to submit a question, please tap on the question icon, type your question in the chat box at the bo
Slide 6: Tabling of Company Financial Statements
bobs CHAIRMAN’S WELCOME TABLING OF COMPANY FINANCIAL STATEMENTS | am obliged to table the financial statements, directors’ report and auditors’ report for the Company for the year ended 30 June 2020. Deloitte. | FINANCIAL HIGHLIGHTS LIFTING OFF INTO GLOBAL GROWTH rt eee 55% ee
Slide 7: Voting Instructions
When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain There is no submit or send button, your selection is auto
Slide 8: Our Resolutions
bobs CHAIRMAN’S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. RESOLUTION 1 RESOLUTION 2 RESOLUTION 3 ADOPTION OF RE-ELECTION OF RATIFICATION OF RATIFICATION OF REMUNERATION DIRECTOR PRIOR ISSUE OF PRIOR ISSUE OF REPORT MR DENNIS L
Slide 9: Resolution 1: Adoption of Remuneration Report
Obs CHAIRMAN'S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. "That, for the purpose of Section 250R(2) of the Corporations Act and for all other purposes, approval is given for the adoption of the Remuneration Report, as contained
Slide 10: Resolution 2: Re-election of Director Mr Dennis Lin
Obs CHAIRMAN’S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. “That for the purpose of Clause 14.2 of the Constitution, ASX Listing Rule 14.4 and for all other purposes, Mr Dennis Lin, who retires as a Director by rotation, and bei
Slide 11: Resolution 3: Ratification of Prior Issue of Shares
Obs CHAIRMAN'S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. “That, for the purpose of ASX Listing Rule 7.4 and for all other purposes, RESOLUTION 3 Shareholders approve and ratify the issue of 31,578,947 Shares to institutional,
Slide 12: Resolution 4: Ratification of Prior Issue of Shares
Obs CHAIRMAN'S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. “That, for the purpose of ASX Listing Rule 7.4 and for all other purposes, Shareholders approve and ratify the issue of 35,371,844 Shares to institutional, RESOLUTION 4
Slide 13: Resolution 5: Ratification of Prior Issue of Shares
Obs CHAIRMAN'S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. “That, for the purpose of ASX Listing Rule 7.4 and for all other purposes, Shareholders approve and ratify the issue of 4,751,775 Shares to eligible shareholders pursuan
Slide 14: Resolution 6: Ratification of Prior Issue of Shares
Obs CHAIRMAN'S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. “That, for the purpose of ASX Listing Rule 7.4 and for all other purposes, Shareholders approve and ratify the issue of 12,356,627 shares to CW Retail RESOLUTION 6 . i .
Slide 15: Resolution 7: Approval of Issue of Options to Kristy Carr
Obs CHAIRMAN'S WELCOME OUR RESOLUTIONS Voting today will be conducted by way of a poll on all items of business and is now opened. “That, for the purpose of ASX Listing Rule 10.11 and for all other purposes, approval is given for the Company to issue 4,770,810 Options to Kristy Carr ( or RESTO MU UL
Slide 16: Agenda
AGENDA CEO & Chairman's Address Financial Performance Performance Highlights Business Overview Strategic Focus Three Growth Horizons Questions 17 20 27 34 41 44 50
Slide 17: CEO & Chairman's Address
pCvbs CEQ & CHAIRMAN's ADDRESS Kristy Carr Dennis Lin Chief Executive Officer Executive Chairman
Slide 18: Macro-Environment Response
bobs CEO & CHAIRMAN’S ADDRESS MACRO-ENVIRONMENT RESPONSE The business has responded to the COVID-19 pandemic and channel disruption with resilience and flexibility. ey CONSUMER BEHAVIOUR SUPPLY CHAIN REGULATORY & PEOPLE & & CHANNEL SHIFTING RESILIENCE MARKET ACCESS CULTURE
Slide 19: Strengthening the Business During Continued Disruption
pcobs CEO & CHAIRMAN'S ADDRESS STRENGTHENING THE BUSINESS DURING CONTINUED DISRUPTION 2HFY21 will continue to bring disruption and your Board is well placed to protect shareholder's interests . ¢ Strengthening the core business whilst we manage disruption in the short term. * Protecting Shareholder'
Slide 20: Financial Performance
orbs FINANCIAL PERFORMANCE “Mie.
Slide 21: Key Events 2020
bobs FINANCIAL PERFORMANCE KEY EVENTS 2020 Key activities supporting strong business development. February 2020 BUBS® JUNIOR NUTRITION PRODUCTS LAUNCHED NATIONALLY IN CHEMIST WAREHOUSE AND WOOLWORTHS STORES. Ee Woolworths February 2020 DOUBLING OF RETAIL EXPOSURE FOR BUBS® INFANT FORMULA PORTFOLIO W
Slide 22: Key Events 2020 (post balance date)
CE bobs FINANCIAL PERFORMAN KEY EVENTS 2020 (post balance date) Key activities supporting strong business development post balance sheet date. Naturally gentle for sensitive tummies. on dodo Jennifer July 2020 APPOINTMENT OF JENNIFER HAWKINS AS GLOBAL BRAND AMBASSADOR. bizbs pizbs August 2020 CHINA
Slide 23: FY20 Financial Highlights
bobs FINANCIAL PERFORMANCE FY20 FINANCIAL HIGHLIGHTS : 62 FY20 results were driven by the strong $ m performance of Bubs® Infant Formula in all retail channels and regions. ASX 300 Bubs Australia Group Gross Revenue! +32% +32% Group Gross Revenue! pcp Direct sales to China growth pcp 55% 5x Infant F
Slide 24: FY20 Group Financial Performance
bobs FINANCIAL PERFORMANCE FY20 GROUP FINANCIAL PERFORMANCE Strong FY growth across core products in all regions. ASX 300 Bubs Australia v GROUP GROSS REVENUE REGIONAL CHANNEL MIX BALANCED PRODUCT MIX Continued strong growth Increasing market diversification. Optimising portfolio mix to maximise yea
Slide 25: Fuelled by Strong Infant Formula Growth
Obs FINANCIAL PERFORMANCE FUELLED BY STRONG INFANT FORMULA GROWTH Infant Formula sales delivered +58% pcp. ASX 300 § Bubs Australia Strengthened focus on highest margin products within group portfolio. Bubs? Infant Formula Revenue Contribution share of Infant Formula increases ($mitlion) from 30% to
Slide 26: Underpinned by Strong China Demand
Obs FINANCIAL PERFORMANCE UNDERPINNED BY STRONG CHINA DEMAND China remains catalyst for global growth. ASX 300 § Bubs Australia TOTAL CHINA DIRECT EXPORT GROWTH (Smillion) 16 , an 13.2 * Growth driven by demand for " Bubs® Goat Infant Formula 12 portfolio. 10 9.6 8 * Supported by expansion into 6 Mo
Slide 27: Performance Highlights
pCubs PERFORMANC HIGHLIGHTS
Slide 28: Q1 FY21: China & Infant Formula Growth
bobs PERFORMANCE HIGHLIGHTS Q1 FY21: CHINA & INFANT FORMULA GROWTH We remain true to our core strategy for sustainable profitable long-term growth. BUBS® INFANT FORMULA EXPORT SALES FOR SALES ACROSS ALL INFANT FORMULA OUTSIDE OF CHINA CHANNELS +9% pep +6% pcp DIRECT CHINA REGIONAL BALANCED With tota
Slide 29: Official Tmall Global Bubs 11.11 Results
bobs PERFORMANCE HIGHLIGHT: OFFICIAL TMALL GLOBAL BUBS® 11.11 RESULTS +174%" pcp. Record results surpassing the previous year’s total in first hour of Double 11 sales. Bubs® Goat ranked number 3 imported goat brand across Tmall Global’ and #1 Australian Goat brand in Tmall.? Tmall Global (CBEC)' Tma
Slide 30: CapriLac Double 11 Sales Growth
bobs PERFORMANCE HIGHLIGHTS CAPRILAC® DOUBLE 11 +48% SALES GROWTH pcp’. CapriLac® ranked #1 adult goat powder product on Tmall platform (General Trade + CBEC). CapriLacté#S BwWA2*... BAMA OK 2103ARNR Bie GEO) Res Ra... HER RET PRAMS CO TENET AEE * Flagship Store sales achieved +48% growth on Double
Slide 31: Re-Building Momentum Australian Daigou Community
cobs RE-BUILDING MOMENTUM AUSTRALIAN DAIGOU COMMUNITY Positive momentum returning to the Daigou Channel with new tactical activity to help mitigate channel shift. Redirecting market activity to support and stimulate Daigou Channel with live streaming events linked to e-commerce to reactivate sales.
Slide 32: Bubs Fastest Growing Infant Formula Manufacturer
bobs PERFORMANCE HIGHLIGHTS BUBS +48% FASTEST GROWING INFANT FORMULA MANUFACTURER’ Despite sharp decline in Daigou market which adversely impacted Q1 Group performance, Bubs® is now the fastest growing Infant Milk Formula manufacturer with +48% scan sales growth pcp, achieved across top 3 grocery &
Slide 33: New Vita Bubs
bobs ocpeopwance wine oe NEW VITA BUBS™ Successful launch nationally across 400 Chemist Warehouse stores. NEW Vita Bubs” from Bubs: dedicated to Children’s Nutrition. Preis ffeofies Total of 8 SKU’s launched nationally across 400 Chemist Warehouse stores. TGA registered product range supporting all
Slide 34: Business Overview
orbs BUSINESS OVERVIEW
Slide 35: We Are Now Entering the Third Phase of Bubs Journey
bobs BUSINESS OVERVIEW WE ARE NOW ENTERING THE THIRD PHASE OF BUBS® JOURNEY Could have only been reached after period of gaining supply chain expertise and scale as a foundation for rapid global expansion built on brand trust, invaluable knowledge and intellectual property. CY: of Brand PHASE 1 CREA
Slide 36: Our Unique Value Proposition
Obs BUSINESS OVERVIEW OUR UNIQUE VALUE PROPOSITION 360° integrated business model, combining the best of an ingredient and manufacturing business, together with a brand-led and consumer focused portfolio driven business. TRADITIONAL SPACE FOR; Ingredient & manufacturing led businesses. ~~ Re DAIRY S
Slide 37: One Brand, Multiple Feeding Occasions
Obs BUSINESS OVERVIEW ONE BRAND, MULTIPLE FEEDING OCCASIONS Bubs® caters for all feeding occasions throughout a child’s development. Our comprehensive portfolio provides a unique advantage to extend consumer lifecycle and increase basket size with single customer base and brand message. ve vis ll vi
Slide 38: Building China Brand Reach & Messaging
Obs BUSINESS OVERVIEW BUILDING CHINA BRAND REACH & MESSAGING Leveraging Global Brand Ambassador campaign, via localised multimedia campaign support through to key opinion leaders and consumer digital campaign. iio zene RUAZEREB BERGER SPSSRE SRE— RHWARA2SDRAY mer ASME. denfrtae Jenni er Hawkins SURE
Slide 39: Driving Push and Pull China Channel Strategies
bobs BUSINESS OVERVIE DRIVING PUSH AND PULL CHINA CHANNEL STRATEGIES Building momentum across China's complex ecosystem, pinpointing the most lucrative channel tiers and demographics, ensuring all paths lead to Bubs®. i i i i i Regional Daigou Markets = ; Lozada it Australia Outbound Daigou C2C Chan
Slide 40: Accelerating China Demand on CBEC
Obs BUSINESS OVERVIEW ACCELERATING CHINA DEMAND ON CBEC Demonstrating CBEC channel shift & continued strength of brand connection with our end China consumers, as well as positive outcome from our China strategic partnerships with Alibaba and Beingmate. Chinese consumer offtake demand remains strong
Slide 41: Strategic Focus
pCvbs STRATEGIC FOCUS
Slide 42: Our Core Strategic Priorities
FUTURE FOUNDATIONAL Obs STRATEGIC FOCUS 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. MAXIMISE BRAND OPTIMISE GOAT
Slide 43: Specialist Leader in Australian Goat Dairy
Obs STRATEGIC FOCUS 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. NSUME, oe aco R INSIGHy \) OC, Q Us GOAT DAIRY SPECIALIST “GO-DEEP”
Slide 44: Three Growth Horizons
Slide 45: Three Horizons for Long Term Sustainable Growth
bobs THREE GROWTH HORIZONS, THREE HORIZONS FOR LONG TERM SUSTAINABLE GROWTH 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 eme
Slide 46: Horizon 1: Maintain & Defend Core Business
Obs THREE GROWTH HORIZONS HORIZON 1 — MAINTAIN & DEFEND CORE BUSINESS Accelerating growth across our channels and improving supply chain production efficiencies. DRIVING INFANT FORMULA SALES GROWTH Aspirational goal in existing channels and markets. +125% FY22 = Bubs® Infant Formula continues to be
Slide 47: Horizon 2: Nurture Emerging Business
Obs THREE GROWTH HORIZONS HORIZON 2 —- NURTURE EMERGING BUSINESS Acceleration into China market with SAMR portfolio expansion via Australian and China manufactured Australian Goat Milk products. Accelerating growth into SEA, leveraging RECP Agreement. } ECONOMIC PARTNERSHIP Ne » REGIONAL.GOMPREHENSI
Slide 48: USA Total Infant Formula Category Value
USA TOTAL Infant Formula Category Value³
Slide 49: In Conclusion
hobs THREE GROWTH HORIZONS IN CONCLUSION The company is well positioned to deliver sustainable long-term profitable growth. * Unique integrated value proposition, with ingredient, manufacturing and brand focused capability. * Aspecialist leader in Australian Goat Dairy, allowing us to go deep in the
Slide 50: Questions
TIONS pebs “QUES
Slide 51: Our Resolutions
bobs OUR RESOLUTIONS OUR RESOLUTIONS Voting will be closed shortly. Please ensure that you have cast your vote on all resolutions. RESOLUTION 1 RESOLUTION 2 RESOLUTION 3 ADOPTION OF RE-ELECTION OF RATIFICATION OF RATIFICATION OF REMUNERATION DIRECTOR PRIOR ISSUE OF PRIOR ISSUE OF REPORT MR DENNIS LI
Slide 52: Disclaimer
obs DISCLAIMER DISCLAIMER This investor presentation (Presentation) is dated 23 November 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 53: Bubs Australia
ASX: BUB - Bubs Australia Growing Generation Joy