Slide 1: FY21 Results Presentation
FY21 RESULTS PRESENTATION 24 AUGUST 2021
Slide 2: Important Notice
IMPORTANT NOTICE This disclaimer applies to this Presentation and the information contained in it (the “Presentation”). By reading this disclaimer you agree to be bound by it. Important notice and disclaimer: This Presentation contains a general summary of the activities of Kogan.com Ltd (the Compan
Slide 3: CEO Update
CEO Update Ruslan Kogan Founder, CEO and Executive Director “Kogan.com produces record breaking Gross Sales in FY21, surpassing $1 billion” 3
Slide 4: FY21 Kogan Group Highlights
FY21 KOGAN GROUP HIGHLIGHTS In FY21, our Business continued its focus on improving customer value, delivering exceptional growth across key metrics and achieving multiple key milestones. ● Gross Sales1 of $1.179 billion outperformed the prior year by 52.7%, and a CAGR2 of 46.2% since FY19 FINANCIAL
Slide 5: FY21 Kogan Group Results
FY21 KOGAN GROUP RESULTS Strong growth in Gross Sales1 as more customers turn to Kogan.com. FY19 vs FY21 FY20 vs FY21 $m FY19 FY20 FY212 Variance (%) CAGR3 (%) Gross Sales1 551.8 772.34 1,179.0 52.7% ▲ 46.2% ▲ Revenue5 438.7 497.9 780.7 56.8% ▲ 33.4% ▲ Gross Profit 90.7 126.5 203.7 61.0% ▲ 49.9% ▲ G
Slide 6: Kogan Group Financial Highlights
KOGAN GROUP FINANCIAL HIGHLIGHTS Strong trading performance throughout FY21 saw growth across key metrics year-on-year despite the operational challenges experienced from rapid growth. GROSS SALES1 GROSS PROFIT ADJUSTED EBITDA2 ADJUSTED NPAT2 ADJUSTED EPS2 +52.7% on FY20 ▲ +61.0% on FY20 ▲ +24.5% on
Slide 7: Who We Are
WHO WE ARE We have built a Business that allows us to be agile, bold and innovative. Our growing portfolio of businesses enables us to scale significantly while mitigating operational risks. Kogan.com Active Customers Mighty Ape Active Customers LTM Oct 20A 1HFY19 2HFY19 1HFY20 2HFY20 1HFY21 2HFY21
Slide 8: Kogan Kinetics
KOGAN KINETICS Our mission is to make the most in-demand products and services more affordable and accessible for all. ENHANCED CONSUMER OFFERING CUSTOMER & PLATFORM GROWTH • Broader selection • Scale of efficiencies • Improved pricing • Customer acquisition & retention • Expand audience via acquisi
Slide 9: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM We have invested heavily in our platform and growing Active Customers in FY21, recording our largest marketing spend ever during the year. REPEAT BUSINESS - CREATING BRAND LOYALTY1 Repeat business, Repeat Orders3 is rapidly accelerating, as customers access loyalty be
Slide 10: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM Free traffic continues to represent more than 66% of all traffic following significant investment in our platform. KOGAN.COM TRAFFIC - FREE (BRAND DRIVERS) VS PAID MARKETING1 Free Sources ● Direct website traffic 34% ● Direct App traffic ● Brand searches 66% ● Other o
Slide 11: Kogan Marketplace
KOGAN MARKETPLACE Gross Sales1 in FY21 grew by 91.0% on FY20 continuing the extraordinary growth of the platform. KOGAN MARKETPLACE GROSS SALES1 ACHIEVED SIGNIFICANT GROWTH YEAR-ON-YEAR 350 91.0% ▲ 300 250 200 Gross Sales1 ($m) 150 100 50 0 FY192 FY20 FY21 The continued growth of Kogan Marketplace d
Slide 12: Exclusive Brands Strategy
EXCLUSIVE BRANDS STRATEGY Exclusive Brands achieved Revenue growth of 62.5% in FY21 vs FY20 and a CAGR1 of 43.3% since FY19, continuing to meet strong customer demand across a wide-array of products. YoY GROWTH IN KOGAN EXCLUSIVE BRANDS REVENUE ACCELERATED IN FY21 +43.3% CAGR1 on FY19 ▲ +62.5% on FY
Slide 13: Kogan First
KOGAN FIRST Kogan First subscription revenues contribute 4.4% of the Group's total Gross Profit as members continue to appreciate the benefits of membership. Free Shipping Exclusive Member Earn Kogan Everyday Priority Customer Specials Rewards Discounts Service KOGAN FIRST MEMBERS1 144.2% ▲ 150,000
Slide 14: Our Proprietary Technology
OUR PROPRIETARY TECHNOLOGY IT solutions powering scale. PLATFORM FOR SCALE & GROWTH TECHNOLOGY PLATFORM Proprietary eCommerce Engine Refined Team Technical Capability • Offers over 15 payment methods - including BNPL • Proprietary Product Search algorithm • Strong development processes • Secure plat
Slide 15: Financial Update
Financial Update David Shafer CFO, COO and Executive Director “Business growth accelerated significantly at the start of FY21, delivering strong headline growth in our 15th year.” 15
Slide 16: Kogan Group P&L
KOGAN GROUP P&L Gross Sales1 growth to $1.179 billion represents an increase of 52.7% on FY20. $m FY20 FY213 Variance % Overview Gross Sales 1 772.3 2 1,179.0 52.7% Gross Sales1 increased while navigating major supply chain and operational challenges - we achieved our Revenue4 497.9 780.7 56.8% high
Slide 17: Mighty Ape
MIGHTY APE For a full 12 month period to 31 March 2021, Mighty Ape forecasted $14.3 million1 EBITDA as disclosed in the ASX announcement on 3 December 2020 - this forecast was achieved. For the seven months to 30 June 2021, Mighty Ape has contributed 9.8% to the Group’s overall Gross Profit in FY21.
Slide 18: Key Drivers of Kogan Group FY21 Financial Performance
KEY DRIVERS OF KOGAN GROUP FY21 FINANCIAL PERFORMANCE Continued focus on improving customer value through a turbulent trading and social environment. The Business achieved growth in Active Customers of 46.9% in FY21. At 30 June 2021 Kogan.com had PLATFORM GROWTH 3,207,000 Active Customers (excluding
Slide 19: Key Drivers of Kogan Group FY21 Financial Performance
KEY DRIVERS OF KOGAN GROUP FY21 FINANCIAL PERFORMANCE The success of Kogan Marketplace has resulted in Gross Sales1 increasing by 91.0% in FY21 compared KOGAN MARKETPLACE to FY20. The platform continues to resonate with sellers, with Kogan Marketplace having increased the number of sellers significa
Slide 20: Key Drivers of Kogan Group FY21 Financial Performance
KEY DRIVERS OF KOGAN GROUP FY21 FINANCIAL PERFORMANCE Variable Costs predominantly consist of warehousing and selling costs. The increase in selling costs was VARIABLE COSTS largely driven by growing volumes of transactions, while the increase in warehousing costs was driven by the significant inven
Slide 21: FY21 Kogan Group Gross Profit Product & Business Mix
FY21 KOGAN GROUP GROSS PROFIT PRODUCT & BUSINESS MIX More than half of our Gross Profit is generated from our Exclusive Brands Products. Mighty Ape1 9.8% Other Revenue2 1.4% Advertising Income 2.0% Kogan First 4.4% Kogan Mobile 5.6% Exclusive Brands 51.6% Kogan Marketplace 11.5% Exclusive Brands pro
Slide 22: Operating Leverage
OPERATING LEVERAGE FY18 FY19 FY20 FY211 Revenue 100.0% 100.0% 100.0% 100.0% Gross Margin 19.5% 20.7% 25.4% 26.1% Delivered Margin (after all logistics costs) 16.1% 16.5% 21.4% 20.3% Marketing costs 4.8% 4.3% 5.6% 7.5% Contribution Margin 11.3% 12.3% 15.8% 12.8% Fixed costs 5.0% 5.4% 6.2% 10.1% EBITD
Slide 23: Kogan Group Net Assets
KOGAN GROUP NET ASSETS Jun-20 vs Jun-21 $m Jun-20 Jun-21 Mvmt % Overview CURRENT ASSETS Net cash balance (total cash less drawn debt) of Cash 146.7 91.7 (37.5%) $12.8 million at 30 June 2021. Trade and other receivables 6.8 7.8 14.7% Inventories 112.9 227.9 101.9% Inventories across the Group held a
Slide 24: Kogan Group Cash Flow
KOGAN GROUP CASH FLOW FY20 vs FY21 $000 FY20 FY21 Mvmt % CASH FLOWS FROM OPERATING ACTIVITIES Overview Receipts from customers 579.0 885.5 52.9% Payments to suppliers and employees (523.8) (926.4) 76.8% The Group significantly expanded it’s inventory levels to respond to forecasted Interest received
Slide 25: Growth Strategy & Outlook
Growth Strategy & Outlook “Kogan.com is well placed to continue delivering strong sustainable growth.” 25
Slide 26: Increasing Market Share in a Rapidly Growing Market
INCREASING MARKET SHARE IN A RAPIDLY GROWING MARKET Online retail is in its infancy in Australia. The Kogan Group’s market share has continually grown in a market that continues to rapidly increase in size. NAB estimates that in the 12 months to June 2021, Australians spent $48.6 billion on online r
Slide 27: Trading Update
TRADING UPDATE Consistent with prior years, the Company will not be providing earnings guidance for FY22. However, it will provide regular business updates during the year. July 2021 unaudited management accounts show: • Gross Sales1 growth of 5.1% above July 2020 • Gross Margin improvement on June
Slide 28: FY22 Kogan Group Outlook & Dividend
FY22 KOGAN GROUP OUTLOOK & DIVIDEND Kogan.com has a strong balance sheet at 30 June 2021, and attractive short-term and long-term growth opportunities. To support the Company with its growth plans, the Board has decided to conserve cash for business investment and growth purposes and has paused divi
Slide 29: Thank you.
Thank you. Questions? kogan.com
Slide 30: Glossary
GLOSSARY 1HFYxx: 1HFYxx: the six months ended 31 December 20xx. 2HFYxx: the six months ended 30 June 20xx. 1QFYxx: the three months ended 30 September 20xx. 2QFYxx: the three months ended 31 December 20xx. 3QFYxx: the three months ended 31 March 20xx. 4QFYxx: the three months ended 30 June 20xx. Act
Slide 31: Glossary
GLOSSARY Kogan Internet: New Vertical launched in 4QFY18 offering NBN plans via Vodafone’s fixed line NBN network. Kogan Life: New Vertical launched in 4QFY18 offering life insurance online. Kogan Marketplace: a platform launched in 3QFY19 for sellers and buyers to complete transactions on Kogan.com
Slide 32: Annexure 1: FY21 Revenue Growth by Portfolio
ANNEXURE 1 FY21 REVENUE GROWTH BY PORTFOLIO Revenue growth was driven by Exclusive Brands and Kogan Marketplace. FY19 FY20 FY21 FY19 vs FY21 FY20 vs FY21 $m Revenue Revenue Revenue CAGR % Revenue growth % Exclusive Brands 184.1 232.7 378.0 43.3% 62.5% Third-Party Brands 233.2 228.6 271.7 7.9% 18.9%
Slide 33: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
ANNEXURE 2 RECONCILIATION TO KOGAN GROUP ADJUSTED EBITDA AND ADJUSTED NPAT COVID-19 COVID-19 Mighty Ape purchase Unrealised FX Equity-based related stock related - tranches 3&4 and Unadjusted gain/(loss) compensation Donations provision logistics costs acquisition costs Adjusted Revenue 780.7 780.7