Slide 1: 1HFY22 Results Presentation
1HFY22 RESULTS PRESENTATION 25 February 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: 1HFY22 Kogan Group Highlights
1HFY22 KOGAN GROUP HIGHLIGHTS Relentlessly pursuing more choice, value and faster delivery for our customers. ● Gross Sales1 of $698.0m outperformed 1HFY21 by 9.4%, with a CAGR2 of 46.9% since 1HFY20 FINANCIAL PERFORMANCE ● Revenue3 of $419.5m outperformed 1HFY21 by 1.3%, with a CAGR of 38.2% since
Slide 5: 1HFY22 Kogan Group Results
1HFY22 KOGAN GROUP RESULTS Another record half for Gross Sales and Revenue as more customers turned to Kogan.com, while trading conditions impacted profitability. 1HFY21 vs 1HFY22 1HFY20 vs 1HFY22 $m 1HFY20 1HFY211 1HFY22 Mvmt (%) CAGR (%) Gross Sales2 323.4 638.2 698.0 9.4% ▲ 46.9% ▲ Revenue 219.5
Slide 6: Who We Are
WHO WE ARE We have built a vertically integrated eCommerce business across Australia and New Zealand - providing incredible value to more than 4m Group Active Customers in the past year. 4,500 +9.4% ▲ 4,000 Kogan Group Active Customers ('000) 3,500 3,000 2,500 4,071,000 2,000 Group Active Customers
Slide 7: Kogan Kinetics
KOGAN KINETICS Our mission is to make the most in-demand products and services more affordable and accessible. ENHANCED CUSTOMER OFFERING CUSTOMER & PLATFORM GROWTH • Broader selection • Scale of efficiencies • Improved pricing • Customer acquisition & retention • Expand audience via acquisition The
Slide 8: In House Industry Leading Technology
IN HOUSE INDUSTRY LEADING TECHNOLOGY Working closely on leading edge projects with Amazon Web Services and Google Cloud. 8
Slide 9: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM We have invested more than ever in our platform, providing more choice for our over 4m Group Active Customer base and continuing to invest in our expanding Kogan First Loyalty program. 6 MONTHS RETURN ON INVESTMENT IN MARKETING1 L6M return on investment in marketing -
Slide 10: Creating More Choice for Our Customers
CREATING MORE CHOICE FOR OUR CUSTOMERS We are expanding our range to delight customers with more than 14.3m products. TOTAL PRODUCTS ON KOGAN.COM UNIQUE EXCLUSIVE BRANDS PLATFORM1,2 PRODUCTS1 +3.2% ▲ +304.2% ▲ +49.0% ▲ 15,000,000 6,000 Number of Exclusive Brands Products 10,000,000 4,000 Number of P
Slide 11: Improving Customer Value
IMPROVING CUSTOMER VALUE We are continuing to improve the value available to customers through better products, services and pricing. This leads to higher traffic, more engagement with our platform and more repeat business from customers. SIGNIFICANT INCREASE IN THE NUMBER OF PRODUCT REVIEWS BY MORE
Slide 12: Improving Delivery to Customers
IMPROVING DELIVERY TO CUSTOMERS The Company’s own last-mile delivery service has facilitated a better delivery experience for customers. OUR RECENTLY INTRODUCED DELIVERY SERVICES IS A NETWORK OF 29 WAREHOUSES HAS BROUGHT SIGNIFICANTLY INCREASING MoM SINCE LAUNCH IN JUN-211 OUR PRODUCTS CLOSER TO OUR
Slide 13: Kogan Marketplace
KOGAN MARKETPLACE Kogan Marketplace achieved $221.1m in Gross Sales - exceeding $200m for the first time ever in a half. KOGAN MARKETPLACE GROSS SALES KOGAN MARKETPLACE GROSS SALES ACHIEVED SIGNIFICANT GROWTH YoY ACHIEVED SIGNIFICANT GROWTH QoQ +94.6% CAGR since 1HFY20 ▲ +79.1% CAGR since 2QFY20 ▲ 2
Slide 14: Exclusive Brands Strategy
EXCLUSIVE BRANDS STRATEGY Exclusive Brands achieved a Revenue CAGR of 38.1% since 1HFY20, continuing to meet strong customer demand across a wide-array of products. 250 EXCLUSIVE BRANDS DELIVERED A STRONG RESULT AFTER A RECORD YEAR LAST YEAR 200 +38.1% CAGR since 1HFY20 ▲ 250 150 Exclusive Brands CA
Slide 15: Kogan First
KOGAN FIRST Rapid growth in Kogan First Subscribers is quickly building a highly loyal subscriber base, now with over 310k subscribers. Free Shipping Exclusive Subscriber Specials Earn Kogan Rewards Everyday Discounts Priority Customer Service KOGAN FIRST SUBSCRIBERS +213.2% ▲ 350,000 +176.4% ▲ 300,
Slide 16: Kogan Verticals
KOGAN VERTICALS Many Kogan Verticals have achieved strong Active Customer growth in 1HFY22 as more customers take advantage of the exceptional value and loyalty benefits offered by the New Vertical products. KOGAN MOBILE AUSTRALIA KOGAN MOBILE NEW ZEALAND1 KOGAN CREDIT CARDS1 KOGAN ENERGY1 +14.8% ▲
Slide 17: Financial Update
Financial Update David Shafer CFO, COO and Executive Director “Kogan.com performed strongly, even while cycling exceptional growth and navigating COVID-impacted markets.” 17
Slide 18: Kogan Group P&L
KOGAN GROUP P&L Gross Sales growth to $698.0m increased 9.4% on 1HFY21. 1HFY21 vs 1HFY22 $m 1HFY21 1HFY22 Mvmt % Gross Sales 638.2 698.0 9.4% Revenue 414.0 419.5 1.3% Cost of sales (296.4) (311.4) 5.1% Gross Profit 117.6 108.1 (8.1%) Gross margin 28.4% 25.8% -2.6pp/-9.3% Other income 0.0 5.1 100.0%
Slide 19: Key Drivers of Kogan Group 1HFY22 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY22 FINANCIAL PERFORMANCE Record first half operating performance with continued growth in Gross Sales and Revenue following record year last year. Gross Sales increased despite cycling exceptional growth in the prior year and the continuing challenges GROSS SALES & REV
Slide 20: Key Drivers of Kogan Group 1HFY22 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY22 FINANCIAL PERFORMANCE Exclusive Brands and Third-Party Brands have cycled extreme growth in the prior year, with a decline in PRODUCT DIVISIONS Revenue of 11.2% and 33.5%, respectively. However, Exclusive Brands Revenue of $185.3m in 1HFY22 had a CAGR of +38.1% sinc
Slide 21: Key Drivers of Kogan Group 1HFY22 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY22 FINANCIAL PERFORMANCE The Mighty Ape team and operations are progressively being integrated into the Kogan Group. MIGHTY APE Mighty Ape is discussed in further detail on the next slide. Kogan now offers its own last-mile delivery solution for certain items and locat
Slide 22: Mighty Ape
MIGHTY APE For the six months to 31 December 2021, Mighty Ape has contributed 19.9% to the Group’s overall Gross Profit in 1HFY22. MIGHTY APE FINANCIAL HIGHLIGHTS Overview 6 MONTHS TO 31 DECEMBER 2021 ● Mighty Ape have had strong trading performance over the last six months which recorded Gross Sale
Slide 23: 1HFY22 Kogan Group Gross Profit Product & Business Mix
1HFY22 KOGAN GROUP GROSS PROFIT PRODUCT & BUSINESS MIX Our core product range in Exclusive Brands continue to generate the majority of our Gross Profit. Other Revenue1 2.4% Advertising Revenue 2.4% Kogan First 5.5% Kogan Mobile 4.8% Mighty Ape 19.9% Exclusive Brands 37.5% Exclusive Brands products c
Slide 24: Kogan Group Net Assets
KOGAN GROUP NET ASSETS $m Jun-21 Dec-21 Overview CURRENT ASSETS The Group had a strong capital position, with net cash (total Cash 91.7 69.7 cash less drawn debt) of $39.7m, after having funded the Trade and other receivables 7.8 13.1 Tranche 2 payment in respect of the Mighty Ape Acquisition Invent
Slide 25: Kogan Group Cash Flow
KOGAN GROUP CASH FLOW Dec 20 vs Dec 21 $m Dec-20 Dec-21 Mvmt % Overview CASH FLOWS FROM OPERATING ACTIVITIES Strong operating cash inflow of $61.7m and a net Receipts from customers 433.8 439.9 1.4% cash (total cash less drawn debt) of $39.7m, after the Payments to suppliers and employees (444.2) (3
Slide 26: Growth Strategy & Outlook
Growth Strategy & Outlook “Kogan.com is well placed to continue delivering strong sustainable growth.” 26
Slide 27: 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 December 2021, Australians spent $52.9 billion on onli
Slide 28: 2HFY22 Kogan Group Trading Update, Outlook & Dividend
2HFY22 KOGAN GROUP TRADING UPDATE, OUTLOOK & DIVIDEND ● Consistent with prior years, the Company will not be providing earnings guidance for 2HFY22. However, it will provide regular business updates during the year. ● January 2022 unaudited management accounts show Gross Sales growth of 11.9% above
Slide 29: Kogan Group Five Year Goal
KOGAN GROUP FIVE YEAR GOAL GROSS SALES OF $698.0M IN THE HALF HAVE GROWN 9.4% YoY WHILST CYCLING EXTREME GROWTH IN 1HFY21, PRO- GRESSING TOWARDS OUR 5 YEAR TARGET OF $3 BILLION IN ANNUAL GROSS SALES +36.7% CAGR on 1HFY16 +9.4% on 1HFY21 698.0 638.2 Gross Sales ($m) 323.4 277.3 245.6 162.5 107.1 107.
Slide 30: Thank you. Questions?
Thank you. Questions? kogan.com
Slide 31: Glossary
GLOSSARY 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. Active Cust
Slide 32: 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 33: Annexure 1: 1HFY22 Revenue Growth by Portfolio
ANNEXURE 1 1HFY22 REVENUE GROWTH BY PORTFOLIO Revenue growth was driven by Kogan Marketplace, Kogan First and Mighty Ape. 1HFY20 1HFY21 1HFY22 1HFY20 vs 1HFY22 1HFY21 vs 1HFY22 $m Revenue Revenue Revenue CAGR % Revenue growth % Exclusive Brands 97.2 208.7 185.3 38.1% (11.2%) Third-Party Brands 105.8
Slide 34: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
ANNEXURE 2 RECONCILIATION TO KOGAN GROUP ADJUSTED EBITDA AND ADJUSTED NPAT Mighty Ape Unrealised FX Equity-based purchase - Bitbuy.com Adjusted EBITDA, Adjusted NPAT and Adjusted EPS are measures Unadjusted gain/(loss) compensation tranches 3&4 domain sale Adjusted of the underlying performance of t