Cettire Ltd. · ASX:CTT
Cettire — H1 FY2023 Earnings Presentation
25 slides from Cettire's earnings presentation, Feb 7, 2023
Slide 1: H1 FY23 Results Presentation
H1 FY23 RESULTS PRESENTATION 7 FEBRUARY 2023 1
Slide 2: H1 FY23 Highlights
1 H1 FY23 HIGHLIGHTS CETTIRE
Slide 3: H1 FY23 Financial Highlights
H1 FY23 FINANCIAL HIGHLIGHTS RAPID, PROFITABLE GROWTH DELIVERING H1 FY23 ADJUSTED EBITDA OF $ 16.7 MILLION H1 FY23 Reported +57% +65% $16.7m ~$53m +50% Gross revenue 1 Sales revenue Adjusted EBITDA 3 Net cash vs Active customers 2 to 314k to $242.7m to $187.7m $23m at 30 June H1 FY23 Unit Economics
Slide 4: H1 FY23 Operational Highlights
H1 FY23 OPERATIONAL HIGHLIGHTS FOCUSED EXECUTION ON PROFITABLE GROWTH STRATEGY Profitable growth • Focused execution on profitable growth strategy in core fashion and accessories verticals execution • Significant fulfilment unit cost reductions achieved • Marketing optimisation Demand • Demand envir
Slide 5: Cettire's Continued Evolution
CETTIRE’S CONTINUED EVOLUTION CETTIRE HAS AN ENVIABLE ABILITY TO REMAIN AGILE, MAINTAINING STR ATEGIC FLEXIBILITY Sales revenue $209.9m $187.7m H1 H2 $92.4m $22.9m $0.5m $5.7m FY18 FY19 FY20 FY21 FY22 H1 FY23 FY24+ EBITDA margin2 10% 12% 12% (10)% 9% Pre-IPO Since IPO FY23 Proving capability Superch
Slide 6: FY23 Strategic Priorities
FY23 STRATEGIC PRIORITIES LEVERAGING TECHNOLOGY TO ADD SIGNIFICANT VALUE ACROSS THE LUXURY VALUE CHAIN 1 2 3 Continued growth in Increase penetration in Expansion into established markets¹ emerging markets¹ new markets & verticals Early in the market penetration story Enabled by migration to new, pr
Slide 7: Strong Growth Trends In Existing Emerging Markets
STRONG GROWTH TRENDS IN EXISTING “EMERGING” MARKETS STOREFRONT AND LOCALISATION TO FACILITATE NEXT LAYER OF PROFITAB LE GROWTH Gross Revenue1,2 growth across Emerging Markets share markets (H1 FY23) of Gross Revenue 1,2 101% 25% 51% 16% "Established" "Emerging" H1 FY21 H1 FY23 (pre-storefront) (post
Slide 8: H1 FY23 Results
2 H1 FY23 RESULTS 8
Slide 9: Continued Customer Momentum
CONTINUED CUSTOMER MOMENTUM WELL POSITIONED TO DRIVE LONG TERM REVENUE GROWTH AND ENHANCE LIFETI ME VALUE Active Customers1,4 Growing share of gross revenue Repeat customers spending more from repeat customers 1,2,3 per order 1,3 314K $859 $818 $805 44% 260K 54% 50% $661 $642 $623 209K 56% 46% 50% H
Slide 10: Improving Wallet Share
IMPROVING WALLET SHARE LOYALTY AND GROWING FREQUENCY DRIVING CONSISTENT GROWTH IN SPEND PER CUSTOMER $1,198 $1,106 $1,069 $1,084 $1,082 $963 1.61x $873 1.55x $826 1.52x $784 1.48x 1.37x 1.26x 1.18x 1.19x 1.11x Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 1,2,3,4 Gross revenue/activ
Slide 11: Improving Customer Lifetime Value
IMPROVING CUSTOMER LIFETIME VALUE COST INITIATIVES IMPLEMENTED SINCE H2 FY22 DRIVING SIGNIFICANT U NIT MARGIN IMPROVEMENT Customer acquisition cost 1,2 Delivered margin per active customer1,3,4 $300 $237 $141 $93 H1 FY22 H1 FY23 H1 FY22 H1 FY23 Disciplined acquisition: Margin uplift: Channel / geogr
Slide 12: Financial Performance
FINANCIAL PERFORMANCE HIGHLY FLEX IBLE COS T BA S E ENA BLING S IGNIFICA NT PROFITA BILITY • Continued strong revenue growth, with sales revenue +65% Y/Y $’000 H1 FY23 H1 FY22 • Returns rate reduction supported by amendments to returns Sales revenue 187,697 113,706 policy in H2 FY22 Delivered margin
Slide 13: Balance Sheet
BALANCE SHEET STRONG CASH GENERATION SUPPORTED BY OPERATING PROFITS AND ATTRACTIVE WORKING CAPITAL CYCLE • Closing cash $53m, zero debt Dec Jun $’000 2022 2022 • Operating cash flow driven by H1 FY23 operating surplus (cash profit) and favourable working capital dynamics Cash and cash equivalents 53
Slide 14: Trading Update & Outlook
3 TRADING UPDATE & OUTLOOK 14
Slide 15: Trading Update And Outlook
TRADING UPDATE AND OUTLOOK S ELF-FUND ING OPERA TING M OD EL, TA RGETING CONTINUED PROFITA BILITY IN H2 FY 2 3 • The Company continues to experience a healthy demand environment across its geographic footprint. • In light of the above, Cettire’s positive trading momentum has continued into H2 FY23:
Slide 16: Cettire Remains Well-Positioned For Ongoing Growth
CETTIRE REMAINS WELL-POSITIONED FOR ONGOING GROWTH Massive + growing TAM, with structural tailwinds Global platform and opportunity, with traction in multiple markets Track record of explosive growth and cash generation No inventory business model, delivering capital efficient growth and compelling
Slide 17: Appendix
4 APPENDIX 17
Slide 18: Cettire Overview
CETTIRE OVERVIEW CETTIRE IS A GLOBA L ONLINE LUX URY RETA ILER Selection Customers Economics 314,000 Active >400,000 products 1 53 markets Customers2 >40m unique website ~90% international >2,500 brands 1 revenue2 visits3 56% of Gross revenue >$1.2 bn stock value 1 from returning >$280m revenue3 cus
Slide 19: Cettire Value Proposition
CETTIRE VALUE PROPOSITION CETTIRE OFFERS ONE OF THE LA RGES T S ELECTIONS OF LUX URY ONLINE. W E OFFER COM PETITIVE P RIC ING A ND RA P ID FULFILM ENT, ENA BLED BY OUR HIGHLY S CA LA BL E P RO P RIE TA RY TE C HNO L O GY RANGE RAPID VALUE FULFILMENT PROPRIETARY TECHNOLOGY Customer value proposition
Slide 20: Supply Chain Momentum
SUPPLY CHAIN MOMENTUM S UPPLY CHAIN CONTINUES TO GROW S TRONGLY Brand database Product database Seller stock value 1 2 1 2 Published Brands Total Database Published Products 1 Total Database 2 Published Stock Value Total Database >2,500 >2,500 >400,000 >400,000 >$1bn >$1.2bn >$600m >$600m 659 140k 6
Slide 21: Massive + Growing TAM, Structural Tailwinds
MASSIVE + GROWING TAM, STRUCTURAL TAILWINDS THE PERS ONA L LUX URY GOOD S M A RKET IS A A $ 410B GLOBA L IND US TRY Massive + Growing TAM Online Penetration Millennial and Gen Z China Growth Global Personal Luxury Goods % Online Penetration Millennial and Gen Z as a % of Share of sales Market Global
Slide 22: Customer Fulfilment On The Cettire Platform
CUSTOMER FULFILMENT ON THE CETTIRE PLATFORM PROPRIETARY TECHNOLOGY TO MANAGE AND AUTOMATE ALL STAGES OF CUST OMER ORDER FULFILMENT Customer fulfilment cycle Order Inventory Logistics Sale Fulfilment management management management Customer Purchase made Customer order received Payment authorised Ce
Slide 23: Income Statement Reconciliations
INCOME STATEMENT RECONCILIATIONS Statutory EBITDA to Adjusted EBITDA reconciliation $’000s H1 FY23 H1 FY22 Statutory EBITDA 13,911 (11,011) Share-based payments 221 206 Unrealised FX (gain) / loss 2,343 865 Other 210 - Adjusted EBITDA 16,686 (9,940) General & administrative expenses $’000s H1 FY23 H
Slide 24: Important Notice And Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The information contained in this document and discussed at this presentation (collectively, the Presentation) has been prepared by Cettire Limited (ACN 645 474 166) (Cettire or the Company). The Presentation is subject to the conditions outlined below. Your receipt o
Slide 25: Global Online Luxury Retailer www.cettire.com
GLOBAL ONLINE LUXURY RETAILER WWW.CETTIRE.COM 25