Slide 1: Acquisition of Mighty Ape - Presentation
ACQUISITION OF MIGHTY APE - PRESENTATION 3 DECEMBER 2020
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: Contents
CONTENTS Transaction Overview & Highlights Pages 4 - 6 Market Overview Page 7 - 8 Overview of Mighty Ape Page 9 - 13 A World-Class Combination Page 14 - 15 Glossary & Annexures Page 16 - 17 3
Slide 4: Transaction Overview & Highlights
Transaction Overview & Highlights 4
Slide 5: Transaction Overview
TRANSACTION OVERVIEW Kogan.com has acquired Mighty Ape Limited. The acquisition enables the combined group to accelerate growth across Australia and New Zealand via improved customer offerings and superior infrastructure. Transaction ● Kogan.com has acquired 100% of the issued capital of Mighty Ape
Slide 6: Investment Highlights
INVESTMENT HIGHLIGHTS Mighty Ape is a leading online retailer in New Zealand, with strong fundamentals and a significant growth trajectory. NZ’s leading online ● Leading online retailer in New Zealand retail specialist brand ● New Zealand’s highest ranked retailer for customer experience1 Highly eng
Slide 7: Market Overview
kogan.com Market Overview
Slide 8: New Zealand Market Overview
NEW ZEALAND MARKET OVERVIEW The online retail market in New Zealand is expected to be worth AUD $6.5b1 by 2026, with many of New Zealand’s online shoppers favouring domestic online retailers. NEW ZEALAND ONLINE RETAIL MARKET1 PERCENTAGE OF NEW ZEALANDERS SHOPPING ONLINE2 100% 7.0 83% 6.0 75% 66% 5.0
Slide 9: Overview of Mighty Ape
kogan.com Overview of Mighty Ape
Slide 10: Evolution of Mighty Ape
EVOLUTION OF MIGHTY APE Mighty Ape has built a strong brand based on a proud history of exceptional customer experience. 1995 Launched as Gamezone The Mighty Ape family ● Commenced as a traditional B&M store. Strong relationship with Sony is developed, hosting the official New Zealand release of the
Slide 11: The Mighty Ape Business
THE MIGHTY APE BUSINESS Mighty Ape is run by a highly skilled and experienced team, illustrated by strong growth in both LTM unique customers and strong repeat purchase activity from satisfied customers. ● Founder & CEO, Simon Barton, has committed to continue leading the Mighty Ape team until at le
Slide 12: Mighty Ape Financial Overview
MIGHTY APE FINANCIAL OVERVIEW Mighty Ape has successfully serviced the accelerating demand brought on by the shift to online shopping in the past 12 months, while also improving margins. MIGHTY APE REVENUE ($M) MIGHTY APE GROSS PROFIT ($M) MIGHTY APE EBITDA ($M) FY19A - FY21F1 FY19A - FY21F1 FY19A -
Slide 13: Mighty Ape Income Statement
MIGHTY APE INCOME STATEMENT Mighty Ape FY21F1 versus FY20A2 prior to any benefits derived from synergies upon acquisition. ($m)3 FY20A2 FY21F1 Var Var (%) Revenue 95.8 137.7 41.9 43.7% Gross Profit 28.9 45.7 16.8 58.1% Gross Margin 30.1% 33.2% 3.0pp EBITDA 4.0 14.3 10.3 254.1% EBITDA Margin 4.2% 10.
Slide 14: A World-Class Combination
A World-Class Combination 14
Slide 15: A World-Class Combination
A WORLD-CLASS COMBINATION The acquisition of Mighty Ape by Kogan.com is a natural, exciting coming together of companies with complementary capabilities, meaning that significant synergies are likely to be available across the merged group. Significant sourcing ● Significant potential savings and ra
Slide 16: Glossary
GLOSSARY AUD: value stated in Australian dollars using spot rate of 0.95 on 23 November 2020. EBITDA: earnings before interest, tax, depreciation and amortisation. EBITDA Margin: EBITDA divided by Revenue. Exclusive Brands: products sold under brands owned by Mighty Ape. Enterprise Value (EV): the e
Slide 17: Annexure A
ANNEXURE A Summary of transaction structure. Tranche Payment Timing Payment Split Payment 1 At Completion AUD $56.1m1, subject to completion adjustments 70% Up to AUD $29.5m1 based on a multiple of the amount by which full-year 2 Post 31 Mar 2021 FY21 Normalised EBITDA (year ending 31 March 2021) ex