Slide 1: FY22 Results Presentation
FY22 RESULTS PRESENTATION 23 August 2022
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 3
Slide 4: FY22 Kogan Group Highlights
FY22 KOGAN GROUP HIGHLIGHTS Record Gross Sales, despite uncertain trading conditions impacting profitability. ● Gross Sales1 of $1.180b outperformed FY21 by 0.1%, reflecting a CAGR2 of 23.6% since FY20. FINANCIAL PERFORMANCE ● Revenue3 of $718.5m was down on FY21 by 8.0%, reflecting a CAGR of 20.1%
Slide 5: FY22 Kogan Group Highlights (cont'd)
FY22 KOGAN GROUP HIGHLIGHTS (cont'd) Record Gross Sales, despite uncertain trading conditions impacting profitability. ● 3,972,000 Kogan Group Active Customers. PLATFORM PERFORMANCE ● Kogan.com Active Customers achieved a CAGR of 20.9% since FY20 to 3,189,000 as at 30 June 2022. ● Mighty Ape had 783
Slide 6: FY22 Market Challenges
FY22 MARKET CHALLENGES We have navigated an unpredictable and volatile year. NON-FOOD ONLINE PENETRATION (SEASONALLY ADJUSTED)1 For more than 10 years, eCommerce grew in Australia at a consistent and stable rate. This enabled Kogan.com to plan for growth in a measured and precise way. 20.0% The cons
Slide 7: FY22 Kogan Group Results
FY22 KOGAN GROUP RESULTS The Group is cycling significant growth in the prior year and a dramatically different trading environment. In response, we are recalibrating the CODB to return to profit with long-term growth demonstrating the health of the Business. $m FY20 FY211 FY22 YoY Mvmt % CAGR since
Slide 8: Delighting Our Customers
DELIGHTING OUR CUSTOMERS We have a large customer base in Australia and New Zealand. GROUP ACTIVE CUSTOMERS1 REPEAT BUYING ACTIVITY3 Repeat Customers4 Repeat Orders5 4,000 6,000,000 3,971 3,972 Kogan Group Active Customers (000's) 3,000 4,000,000 2,000 2,183 1,609 2,000,000 1,000 0 0 FY19 FY20 FY21
Slide 9: Industry Leading Technology
INDUSTRY LEADING TECHNOLOGY Driving innovation to deliver a world class eCommerce experience. Select External Network Drivers LUUSNIIQV E BRAN C DS EXGENERATE UE CUSTOM Developer Friendly Open APIs ER V AL UE Data Driven Insights M ROWTH VIA NETWORK SALE EL PA AT TR S Optimised Performance Marketing
Slide 10: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM As customer demand fluctuated during the pandemic, the Company invested more in marketing to reach new customers and unwind excess inventory. MARKETING1,2 ROI IMPACTED BY EXCESS INVENTORY Return on investment in marketing - we undertook our largest ever marketing camp
Slide 11: Product Division - Kogan Marketplace
PRODUCT DIVISION - KOGAN MARKETPLACE Kogan Marketplace continues to grow, expanding our range and offering. MARKETPLACE GROSS SALES MARKETPLACE ACTIVE SELLERS1 51.6% CAGR since FY20 ▲ 138.0% CAGR since FY20 ▲ 400 20.3% on FY21 ▲ 49.1% on FY21 ▲ 300 Gross Sales ($m) Active Sellers 200 100 0 FY20 FY21
Slide 12: Product Division - Kogan Marketplace (cont'd)
PRODUCT DIVISION - KOGAN MARKETPLACE (cont'd) A seamless shopping experience for customers and sellers alike. We have built curated technology that groups products together from the thousands of sellers on the Kogan Marketplace, and suggests the best value offer to our customers. No longer do you ne
Slide 13: Product Division - Exclusive Brands
PRODUCT DIVISION - EXCLUSIVE BRANDS Exclusive Brands achieved a Revenue CAGR of 15.7% since FY20, continuing to meet strong customer demand across a wide-array of products. EXCLUSIVE BRANDS DELIVERED A STRONG RESULT AFTER A RECORD YEAR LAST YEAR 400 Exclusive Brands CAGR increased over the period an
Slide 14: Kogan First
KOGAN FIRST Our loyalty program grew by 209.7% to over 372,000 delighted subscribers. Free Exclusive Subscriber Earn Kogan Everyday Priority Customer Shipping Specials Rewards Discounts Service KOGAN FIRST SUBSCRIBERS1 KOGAN FIRST RENEWAL RATE2 400,000 209.7% on FY21 ▲ 90.0% 84.7% 300,000 80.0% Koga
Slide 15: Kogan Verticals
KOGAN VERTICALS Our larger Kogan Verticals have achieved growth. KOGAN MOBILE AUSTRALIA KOGAN MOBILE NEW ZEALAND KOGAN CREDIT CARDS 1.5% ▲ 130.6% ▲ 61.3% ▲ Kogan Mobile New Zealand Active Customers Kogan Mobile Australia Active Customers Kogan Money Credit Card Approvals FY20 FY21 FY22 FY20 FY21 FY2
Slide 16: Mighty Ape
MIGHTY APE FY22 represents the first full financial year1 of Mighty Ape. The business is entering a new era with the transition of a new CEO, whilst continuing to benefit from the ongoing implementation of synergies with Kogan.com. MIGHTY APE FINANCIAL HIGHLIGHTS Overview ● Mighty Ape have had stron
Slide 17: Financial Update
Financial Update David Shafer CFO, COO and Executive Director 17
Slide 18: Kogan Group P&L
KOGAN GROUP P&L Gross Sales and Gross Profit show strong long-term growth reflecting a CAGR of 23.6% and 20.7% since FY20. FY20 vs FY22 FY21 vs FY22 $m FY20 FY21 FY22 CAGR % Mvmt % Gross Sales 772.3 1,179.0 1,180.0 23.6% 0.1% Revenue 497.9 780.7 718.5 20.1% (8.0%) Cost of sales (371.4) (577.0) (534.
Slide 19: Key Drivers of Kogan Group FY22 Financial Performance
KEY DRIVERS OF KOGAN GROUP FY22 FINANCIAL PERFORMANCE A renewed focus on operational efficiency is already bearing fruit. In FY22, our Business achieved its highest ever Gross Sales of $1.180b despite operational disruptions GROSS SALES & REVENUE caused by volatile customer demand. Gross Sales refle
Slide 20: Key Drivers of Kogan Group FY22 Financial Performance
KEY DRIVERS OF KOGAN GROUP FY22 FINANCIAL PERFORMANCE The Business has been performing extensive range reviews to ensure it is offering the most in-demand PRODUCT DIVISIONS (CONT'D) products at the most affordable prices, without investing in under-performing product categories. By focusing on in-de
Slide 21: Key Drivers of Kogan Group FY22 Financial Performance
KEY DRIVERS OF KOGAN GROUP FY22 FINANCIAL PERFORMANCE Mighty Ape recorded FY22 Revenue of $163.4 million, Gross Profit of $39.1 million and Adjusted EBITDA of MIGHTY APE $12.3 million. Active Customers were 783,000 as at 30 June 2022. The year included the appointment of Gracie MacKinlay to Chief Ex
Slide 22: FY22 Group Gross Profit Business Division Mix
FY22 GROUP GROSS PROFIT BUSINESS DIVISION MIX Our Exclusive Brands range continues to be our largest Gross Profit contributor, closely followed by the fast growing Mighty Ape and Kogan Marketplace. Mighty Ape 21.2% Exclusive Brands 33.1% Exclusive Brands products continue to deliver the largest Gros
Slide 23: Kogan.com Operating Costs
KOGAN.COM1 OPERATING COSTS Ongoing cost reduction initiatives commenced in 2HFY22 to recalibrate the Cost of Doing Business. 12.0% 10.0% % of Gross Sales 8.0% 6.0% 2HFY21 4.0% 2HFY22 Variable 2 Fixed 3 A number of initiatives have commenced in 2HFY22 to focus on profitability. These include: ● A foc
Slide 24: Kogan Group Net Assets
KOGAN GROUP NET ASSETS $m Jun-21 Jun-22 Overview CURRENT ASSETS The Group had a strong capital position, with net cash Cash 91.7 66.2 (total cash less loans & borrowings) of $31.2m, after Trade and other receivables 7.8 8.1 having funded the Tranche 2 payment in respect of the Inventories 227.9 159.
Slide 25: Kogan Group Cash Flow
KOGAN GROUP CASH FLOW CASH FLOWS FROM OPERATING ACTIVITIES FY21 FY22 Overview Receipts from customers 885.5 745.0 Our net cash position (total cash less loans & Payments to suppliers and employees (926.3) (678.5) borrowings) increased to $31.2m, from $12.8m at 30 Interest received 0.0 0.0 June 2021.
Slide 26: FY23 Strategy & Outlook
kogan.com FY23 Strategy & Outlook
Slide 27: FY23 Kogan Group Trading Update, Outlook & Dividend
FY23 KOGAN GROUP TRADING UPDATE, OUTLOOK & DIVIDEND ● Consistent with prior years, the Company will not be providing earnings guidance for FY23. However, it will provide regular business updates during the year. ● The Business looks forward to returning to positive operating leverage, having commenc
Slide 28: Thank you. Questions?
Thank you. Questions? kogan.com
Slide 29: Glossary
GLOSSARY 2HFY2x: the 6 months ended 30 June 20xx. Adjusted EBITDA: earnings before interest, tax, depreciation, amortisation, unrealised gain/(loss), equity-based compensation and one-off non-recurring items including the profit from sale of the Bitbuy.com domain. Refer to Annexure 2 of this Present
Slide 30: Glossary
GLOSSARY Kogan Pet: Vertical launched in 4QFY18 offering pet insurance online. Kogan Retail: Exclusive Brands and Third-Party Brands sales through the Core Website Channels and eBay, Amazon.com.au, TradeMe and other platforms. Kogan Travel: Vertical offering online holiday packages and hotel and cru
Slide 31: Annexure 1: FY22 Revenue by Business Division
ANNEXURE 1 FY22 REVENUE BY BUSINESS DIVISION Strong revenue growth was achieved in Kogan Marketplace, Mighty Ape and Kogan First. FY20 FY21 FY22 FY20 vs FY22 FY21 vs FY22 $m Revenue Revenue Revenue CAGR % YoY growth % Exclusive Brands 232.7 378.0 311.6 15.7% (17.6%) Third-Party Brands 228.6 271.7 17
Slide 32: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
ANNEXURE 2 RECONCILIATION TO KOGAN GROUP ADJUSTED EBITDA AND ADJUSTED NPAT Mighty Ape Unrealised Equity-based purchase - Bitbuy.com Unadjusted gain/(loss) compensation tranches 3&4 domain sale Adjusted Adjusted EBITDA and Adjusted NPAT are measures of the underlying Revenue 718.5 718.5 performance o