12 October 2016 ASX Market Announcements Office Australian - PDF document

12 October 2016 ASX Market Announcements Office Australian Securities Exchange Baby Bunting Group Limited (ASX: BBN) Morgans Queensland Conference 2016 Matt Spencer, CEO and Managing Director of Baby Bunting Group Limited, will today deliver a presentation at the Morgans Queensland Conference 2016. A copy of the presentation is attached. The FY2017 outlook information in the slides is unchanged from that included in the FY2016 Results Presentation released to ASX on 12 August 2016. For further information, please contact: Corey Lewis Company Secretary Ph: 03 8795 8169 Baby Bunting Group Limited ABN 58 128 533 693 955 Taylors Road, Dandenong South, VIC 3175 Telephone: +61 3 8795 8100 Facsimile: +61 3 8795 8105 Internet: http://www.babybuntingcorporate.com.au

Morgans Queensland Conference 2016 Baby Bunting Group Limited 12 October 2016 Matt Spencer Chief Executive Officer & Managing Director

Important Notice and Disclaimer This document is a presentation of general background information about the activities of Baby Bunting Group Limited (Baby Bunting). The information contained in this presentation is for general background information and does not purport to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate. To the maximum extent permitted by law, Baby Bunting, its related bodies corporate and their respective officers, directors and employees (Baby Bunting Parties), do not warrant the accuracy or reliability of this information, and do not accept any liability to any person, organisation or entity for any loss or damage suffered as a result of reliance on this document. 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 words such as ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions within the meaning of securities laws or applicable jurisdictions. Indications of, and guidance on, future earnings or financial position or performance are also forward looking statements. Forward looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward looking statements will not be achieved. The Baby Bunting 2016 Directors’ Report (dated 12 August 2016) contains details of the number of material risks associated with an investment in Baby Bunting. Forward looking statements are provided as a general guide only, and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors which can cause Baby Bunting’s actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements and many of these factors are outside the control of Baby Bunting. As such, undue reliance should not be placed on any forward looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of promise, representation, warranty or guarantee as to the past, present or the future performance of Baby Bunting. Pro forma financial information Baby Bunting uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are referred to as non-IFRS financial information. Baby Bunting considers that this non-IFRS financial information is important to assist in evaluating Baby Bunting’s performance. The information is presented to assist in making appropriate comparisons with prior periods and to assess the operating performance of the business. In particular, this information is important for comparative purposes with pro forma information in Baby Bunting’s IPO Prospectus. For a reconciliation of the non-IFRS financial information contained in this presentation to IFRS-compliant comparative information, refer to the Appendix to this presentation. All dollar values are in Australian dollars (A$) unless otherwise stated. . 2

Baby Bunting Baby Bunting is Australia’s largest specialty retailer of baby goods, aiming to provide customers with the widest range of products, high levels of service and low prices every day • Founded in 1979, Baby Bunting is Australia’s largest specialty baby goods retailer IN ST STOCK CK A AND • Operating 37 stores across Australia, with the leading AVAILA LABLE specialty baby goods website by number of visits ALL THE B E BEST BRAN ANDS A AT • Target market is parents-to-be, parents, friends and LOW P W PRICE CES family purchasing products for the 0 to 3 years age CA CAR group across all demographics SEAT AT • Principal product categories include prams, cots and FITTING LAY AY B BY nursery furniture, car safety, toys, babywear, feeding, nappies, manchester, associated accessories and consumables PERSO SONALISE SED SERV RVICE EXCL CLUSI SIVE • Successful ASX listing in October 2015 PRODUCT CTS & & BRAN ANDS GI GIFT REGISTRY RY 3

Strong Financial Track Record FY2016 sales growth of +31.4% and pro forma EBITDA growth of +51.1% SALES GROSS MARGIN ($ million) (%) +310 ~24% bps 236.8 CAGR 34.3% 34.3% 180.2 33.3% 150.2 125.5 31.2% FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016 PRO FORMA CODB (%) 1 PRO FORMA EBITDA ($ million) 7.9% 27 margin bps 6.9% 45 margin 18.7 bps 28.2% 27.9% 109 5.3% 27.5% bps margin 12.4 3.0% 26.4% margin 8.0 3.8 FY2013 FY2014 FY2015 FY2016 FY2013 FY2014 FY2015 FY2016 Note: 4 1. Refer to Glossary for a definition of CODB (%)

1. Industry overview

Industry Overview Estimated addressable Large number of small, Strict Australian mandatory Changing competitive market is ~$2.4bn pa / specialty players & product safety standards landscape ~1 million 0 to 3 year olds Department stores provide barriers to entry SPECIALTY BABY GOODS RETAILERS IN AUSTRALIA DEPARTMENT STORES IN AUSTRALIA Number of Stores (as at 12 August 2016) Number of Stores (as at 12 August 2016) 36 308 191 186 17 15 8 66 40 4 36 3 3 3 3 Baby Bunting Babies"R"Us Baby Bubs Baby Co Baby Baby Savings Baby Mode Parenthood Target Kmart Big W Myer David Baby (1) (2) Superstore Bounce Kingdom Jones Bunting VIC, VIC, Department stores where baby goods are a WA, NSW, NSW, QLD, component of the overall offer QLD, VIC NSW NSW VIC VIC QLD, SA, QLD, SA, NSW NSW WA, ACT WA, ACT Note: 1. Toys"R"Us has an additional 17 stores that sell a limited range of baby goods 2. Baby Bounce purchased 15 of 21 stores of the retail chain My Baby Warehouse (MBW). MBW went into administration in Dec-15 6

2. Business overview

Drivers of Competitive Advantage Consistent Retail Format Widest Product Convenient Network Offering, In Stock of Stores and Online and Available Competitively Cost Effective Priced Marketing Comprehensive Range of Ancillary Scale Platform Services Customer Centric Team Culture 8

Baby Bunting’s Store Network 37 stores across Australia, with significant roll-out potential to over 80 stores Queensland Helensvale Booval (29 Jul ‘15) Kawana North Lakes (18 Sep ‘15) Fortitude Valley Burleigh Waters (14 Nov ‘15) Townsville Capalaba (12 Feb ‘16) Macgregor New S South W Wal ales an and A ACT Penrith Moore Park Warners Bay West Gosford Taren Point Campbelltown (19 Dec ‘15) 9 stores Auburn Fyshwick (ACT) Victor oria 5 stores 5 st Hawthorn Ringwood Maribyrnong 2 st 2 stores East Bentleigh Thomastown Bendigo Frankston Ballarat Preston Taylors Lakes Geelong 8 stores Narre Warren Hoppers Crossing South A Aust stral alia Gepps Cross Melrose Park 13 13 stores Western A Austral alia Preston on (Vic icto toria) open ened ed i in August 201 2016 Cannington Midland Myaree Osborne Park Camperdown (NSW) o opening i in O October 2 2016 16 Joondalup 9

Store Experience Stores are consistent in branding, range, operations and customer service •  The widest range of products with over 6,000 products in store •  Price match guarantee and continued investment in value for the customer • Increasing range of Private Label and  Exclusive Products • Services include lay-by, car seat fitting,  parenting room, in-store / online gift registry  • Click & Collect • Dedicated team of knowledgeable staff to  service customers individual needs • Comprehensive range of Best Buy products  to meet everyday parenting needs • Significant opportunity in customer loyalty  10