Slide 1: 1HFY23 Results Presentation
1HFY23 RESULTS PRESENTATION 27 February 2023
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: 1HFY23 Kogan Group Highlights
1HFY23 KOGAN GROUP HIGHLIGHTS Substantial right-sizing of inventory has set up the Business for a stronger 2HFY23. ● Prior to this period, the Company had heavily invested in inventory and operational capacity to meet FINANCIAL PERFORMANCE the significant growth in demand during the COVID-19 pandemi
Slide 5: 1HFY23 Kogan Group Highlights (cont)
1HFY23 KOGAN GROUP HIGHLIGHTS (cont) Substantial right-sizing of inventory has set up the Business for a strong 2HFY23. ● 3,323,000 Kogan Group Active Customers. PLATFORM PERFORMANCE ● Kogan.com Active Customers were 2,550,000 at 31 December 2022. ● Mighty Ape Active Customers were 773,000 at 31 Dec
Slide 6: 1HFY23 Kogan Group Results
1HFY23 KOGAN GROUP RESULTS Top line performance and profitability declined as the Business cycled COVID-19 lock-down orders and offered unprecedented levels of discounting to right-size inventory. Excess inventories have now substantially been resolved, our cost base has been reset, and we expect to
Slide 7: Delighting Our Customers
DELIGHTING OUR CUSTOMERS We are building a loyal customer base by delivering incredible value every day. 3,323,000 Group Active Customers KOGAN.COM ACTIVE CUSTOMERS1 PROPORTION OF REPEAT CUSTOMERS2,3 14.5% CAGR ▲ (pre COVID-19) Kogan.com Active Customers (000's) 3,314 3,207 3,189 Group Repeat custom
Slide 8: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM The right-sizing of inventory levels during 1HFY23, whilst impacting Gross Profit through deep discounting, resulted in marketing efficiencies beginning to materialise. MARKETING ROI1 IMPACTED BY RIGHT SIZING OF INVENTORY Return on investment in marketing - 1HFY23 saw
Slide 9: Product Division - Kogan Marketplace
PRODUCT DIVISION - KOGAN MARKETPLACE Kogan Marketplace continued it’s long-term growth trajectory and is rapidly growing in New Zealand. MARKETPLACE GROSS SALES KOGAN MARKETPLACE NEW ZEALAND +34.6% CAGR ▲ (pre-covid) +103.0% ▲ 221.1 Gross Sales ($m) Gross Sales ($m) 171.8 142.2 58.4 1HFY20 1HFY21 1H
Slide 10: Product Division - Exclusive Brands
PRODUCT DIVISION - EXCLUSIVE BRANDS The decline in Revenue in comparison to the past two corresponding periods is reflective of cycling lockdowns as well as soft trading conditions during 1HFY23. A longer term view continues to demonstrate long term growth of the Division. EXCLUSIVE BRANDS RETURNS T
Slide 11: Kogan First
KOGAN FIRST Our loyalty program grew by 47.6% to over 404,000 delighted subscribers. Free Exclusive Subscriber Earn Kogan Everyday Priority Customer Shipping Specials Rewards Discounts Service KOGAN FIRST SUBSCRIBERS1 KOGAN FIRST REVENUE2 Kogan First Subscribers (millions) 47.6% ▲ 83.1% ▲ Kogan Firs
Slide 12: Kogan Verticals
KOGAN VERTICALS Our larger Verticals achieved Revenue growth during the period. KOGAN MOBILE AUSTRALIA KOGAN MOBILE NEW ZEALAND KOGAN CREDIT CARDS 5.9% ▲ 75.3% ▲ 6.9% ▲ 0.5 1.3 5.2 1.2 Commissions ($m) Commissions ($m) 4.9 Commissions ($m) 0.3 1HFY22 1HFY23 1HFY22 1HFY23 1HFY22 1HFY23 ● Revenue grow
Slide 13: Mighty Ape
MIGHTY APE 1HFY23 saw Mighty Ape win multiple awards, expand the reach of Jungle Express and continue to deliver strong financial results. Overview ● Mighty Ape continued to deliver its award winning customer service, AWARD WINNING CUSTOMER SERVICE including the introduction of its first ever ‘Under
Slide 14: Financial Update
Financial Update David Shafer CFO, COO and Executive Director 14
Slide 15: Kogan Group P&L
KOGAN GROUP P&L The Business cycled lockdown orders in the prior year and operated through soft trading conditions for online retailers. Operational cost reductions continued to progress throughout the period. $m 1HFY22 1HFY23 YoY Mvmt % Gross Sales 698.0 471.1 (32.5%) Revenue 419.5 275.6 (34.3%) Co
Slide 16: Key Drivers of Kogan Group 1HFY23 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY23 FINANCIAL PERFORMANCE The substantial resolution of excess inventory has enabled for renewed focus on operational efficiency. The Company recorded Gross Sales of $471.1m and Revenue of $275.6m. These results were both down GROSS SALES & REVENUE on the prior correspo
Slide 17: Key Drivers of Kogan Group 1HFY23 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY23 FINANCIAL PERFORMANCE Kogan Marketplace Gross Sales declined by 35.7% year-on-year due to softer market conditions KOGAN MARKETPLACE discussed earlier. However, overall seller-fees reduced by a lesser percentage due to improvements in seller management and experienc
Slide 18: Key Drivers of Kogan Group 1HFY23 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY23 FINANCIAL PERFORMANCE Variable costs consist of warehousing and selling costs. Whilst the reduction in selling costs reflects VARIABLE COSTS softer trading conditions versus the prior period, the reduction in in warehousing costs is a result of the substantial right
Slide 19: 1HFY23 Group Gross Profit Business Division Mix
1HFY23 GROUP GROSS PROFIT BUSINESS DIVISION MIX The right-sizing of inventory levels via deep discounting resulted in a significant reduction in Gross Profit contribution from both Exclusive Brands and Third-Party Brands. Mighty Ape 34.3% Marketplace 20.3% Kogan First 17.2% Exclusive Brands 15.6% &
Slide 20: Kogan.com Cost of Doing Business
KOGAN.COM COST OF DOING BUSINESS 1 The accelerated right-sizing of inventory during the period has allowed for improved operational efficiency, which will continue in 2HFY23. KOGAN.COM1 IN-WAREHOUSE KOGAN.COM1 COST OF DOING KOGAN.COM MARKETING 1 INVENTORY BUSINESS Inventory in-warehouse ($m) 6.3% 11
Slide 21: Kogan Group Balance Sheet
KOGAN GROUP BALANCE SHEET $m Jun-22 Dec-22 CURRENT ASSETS Overview Cash 66.2 85.0 The Group has a strong capital position, with net cash Trade and other receivables 8.1 9.6 (total cash less drawn debt) of $74.0m increasing by Inventories 159.9 98.3 $42.8m in the period. Current tax asset 0.7 1.0 Oth
Slide 22: Kogan Group Cash Flow
KOGAN GROUP CASH FLOW 1HFY22 1HFY23 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 439.9 295.4 Overview Payments to suppliers and employees (369.1) (226.0) Our net cash position (total cash less loans & Interest received 0.0 0.3 borrowings) increased to $74.0m, from $31.2m at Finance c
Slide 23: 2HFY23 Strategy & Outlook
kogan com 2HFY23 Strategy & Outlook
Slide 24: 2HFY23 Kogan Group Trading Update, Outlook & Dividend
2HFY23 KOGAN GROUP TRADING UPDATE, OUTLOOK & DIVIDEND ● Consistent with prior years, the Company will not be providing earnings guidance for 2HFY23. However, it will provide regular business updates during the period. ● January 2023 unaudited management accounts demonstrate the expected return to Ad
Slide 25: Glossary
GLOSSARY 1HFY2x: the 6 months ended 31 December 20xx. 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. Refer to Annexure 2 of this Presentation for a
Slide 26: Glossary
GLOSSARY Kogan Marketplace: a platform launched in 3QFY19 for sellers and buyers to complete transactions on Kogan.com, with commission-based Revenue being earned by Kogan.com. Kogan Mobile Australia: launched in 2QFY16, vertical offering pre-paid mobile phone plans available online using TPG’s mobi
Slide 27: Annexure 1: 1HFY23 Revenue by Business Division
ANNEXURE 1 1HFY23 REVENUE BY BUSINESS DIVISION Strong Revenue growth was achieved in Kogan First, Kogan Mobile and Kogan Money. 1HFY22 1HFY23 YoY $m Revenue Revenue Revenue Var % Exclusive Brands 185.3 105.2 (43.2%) Third-Party Brands 105.9 50.9 (52.0%) Product Divisions 291.2 156.1 (46.4%) Kogan Ma
Slide 28: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
ANNEXURE 2 RECONCILIATION TO KOGAN GROUP ADJUSTED EBITDA AND ADJUSTED NPAT Realised loss Mighty Ape ● Adjusted EBITDA and Adjusted NPAT are measures Unrealised on Wonderfi Equity-based purchase - Bitbuy.com Unadjusted (gain)/loss shares compensation Tranche 4 domain sale Adjusted of the underlying p