Articore Group Limited · ASX:ATG
Articore — Morgans Technology Conference 2017
27 slides from Articore's conference presentation, May 18, 2017
Slide 1: Investor Presentation - Morgans Technology Conference
INVESTOR PRESENTATION Morgans Technology Conference – Sydney - 18 May 2017 Presented by Chris Nunn (Redbubble Limited Chief Financial Officer)
Slide 2: Agenda
AGENDA 1 About Redbubble 2 Healthy marketplace 3 Historical top-line growth 4 Customer acquisition 5 The opportunity 6 Growth themes and initiatives 7 Financials 8 Wrap up 2
Slide 3: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 3
Slide 4: Redbubble Video
Redbubble Video This is Redbubble 1. Link to Video: https://vimeo.com/195555159 4
Slide 5: A Recap on the RB Story
A RECAP ON THE RB STORY A THREE-SIDED MARKETPLACE, FOUNDED IN 2006 AND LISTED IN MAY 2016 ARTISTS CUSTOMERS CONTENT 600,000+ (as of Q3 FY2017) 2.9M1 11.5M2 (FY2017) 3rd PARTY FULFILLERS (as of Q3 FY2017) 1. Q4 FY2017 has been projected from actuals through Q3 FY2017 15 FULFILLERS (23 locations), 62
Slide 6: Company Snapshot: Redbubble Limited (ASX:RBL)
COMPANY SNAPSHOT: Redbubble Limited (ASX:RBL) As at 16 May 2017 Capital Structure: Shareholders: Share Price (16 May 2017): $0.83 Board &Management: 33.6% Fully Paid Ordinary Shares: 206.2 million Top 20: 75.3% Market Capitalisation: $171.1 million Acorn Capital (pre-IPO investor): 6.2% Issue Price
Slide 7: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 7
Slide 8: The RB Marketplace Is Scaling Rapidly
THE R B MARKETPLACE IS SCALING RAPIDLY CONSISTENT GROWTH IN CUSTOMERS, ARTISTS AND FULFILLERS New and Repeat Customers Selling Artists Fulfillers 280 16 # of Artists (,000) Fulfillers 3.0 # Customers (Millions) 240 14 Repeat 2.5 New 12 200 2.0 10 160 1.5 8 120 6 1.0 80 4 0.5 40 2 0.0 0 0 FY13 FY14 F
Slide 9: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 9
Slide 10: RB Has Had Strong Top-Line Growth
R B HAS HAD STRONG TOP-LINE GROWTH GTV GROWTH DRIVEN BY VISITS AND CONVERSION RATE IMPROVEMENTS Gross Transaction Value Visits and Conversion $AUD Millions $200 200 2.5% Conversion Rate (%) # Visits (Millions) $160 160 2.0% $120 120 1.5% Repeat $80 GTV 80 1.0% First Time $40 GTV Visits 40 0.5% CVR $
Slide 11: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 11
Slide 12: Grows Strongly with Low Customer Acquisition Costs
GROWS STRONGLY WITH LOW CUSTOMER ACQUISITION COSTS WITH ALL PAID CHANNELS PROFITABLE ON FIRST PURCHASE FY2017 YTD TRAFFIC 4 2 % - Paid 5 8 % - Free 10% 32% 8% 8% 6% 36% Paid Social Paid Search and Other Other Free Email Direct Organic Search 1. Organic Search = traffic to the site originating from s
Slide 13: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 13
Slide 14: Sustainable Growth Not Subject to a Market Ceiling
SUSTAINABLE GROWTH NOT SUBJECT TO A MARKET CEILING ESTIMATED ADDRESSABLE MARKET IN EXCESS OF US$60 BILLION Estimated addressable market1 70 Market Size (US$B) 60 Global online market: Apparel = US$81B 50 Homewares2 = US$131B 42 40 64 Both of these large online 30 markets expected to 20 grow at betwe
Slide 15: Huge Content Library & Products Provide Increasing Leverage
HUGE CONTENT LIBRARY & PRODUCTS PROVIDE INCREASING LEVERAGE ~60% OF SALES ARE FROM ENDURING CONTENT 4.0 Items and Works Sold # (Millions) 3.75M Unique items sold Diversifying the range of items broadens potential customer base 3.0 Increasing leverage from Content library can be instantly new product
Slide 16: Production Is Localised in Our Primary Markets
PRODUCTION IS LOCALISED IN OUR PRIMARY MARKETS WITH GAINS IN MARGIN, CONVERSION AND CUSTOMER EXPERIENCE Localisation of production has REDUCED GLOBAL AVERAGE DELIVERY TIME by a full day in the last 12 months, resulting in: MARGIN IMPROVEMENT via reduction of shipping charges C O N V E R S I O N U P
Slide 17: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 17
Slide 18: 4 Big Themes for CY2017
4 BIG THEMES FOR CY2017 STAY FOCUSED ON STRENGTHENING MARKETPLACE DYNAMICS Enhancing ability TO FIND YOUR THING Efficient to enrich experiences GLOBAL ACQUISITION Personalised content recommendations of new customers & artists Content discovery journey ü Increase leverage of content library Content
Slide 19: With a Final Objective for Customers
WITH A FINAL OBJECTIVE FOR CUSTOMERS More buyers acquired more profitably Seeing ever more content from more artists & partners With a personalised mobile discovery & shopping experience for all visitors Forming a mobile habit resulting in more orders from more loyal customers Supported by best-in-c
Slide 20: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 20
Slide 21: Unique RB Business Model
UNIQUE R B BUSINESS MODEL INSIGNIFICANT CAPITAL INVESTMENT (PP&E) No Inventory Risk No distribution costs Positive working capital cycle No warehousing costs 21
Slide 22: Confirming FY2017 P&L Guidance
CONFIRMING FY2017 P&L GUIDANCE Guidance P&L FY2016 FY 2017 Growth (A$M) Full Year Guidance 1 % • GTV & Revenue expected to GTV 142.9 180.0 26.0% increased by 33.4% and 33.7% on Revenue 114.6 144.0 25.7% Constant Currency basis Cost of sales (75.6) (93.6) 23.8% • Significant margin improvement achiev
Slide 23: Significant Spend in 1H FY2017 Invested for Future Growth
SIGNIFICANT SPEND IN 1H FY2017 INVESTED FOR FUTURE GROWTH … UNDERLYING PROFIT $6.8M DELIVERED Spend to deliver 1H FY2017 Gross Profit (66%) AUD $M $15.0 $6.6 Spend to generate future growth $28.3 (34%) $7.4 $6.8 ($1.1) Gross Profit Paid marketing Operating expenses Underlying Profit Expended Growth
Slide 24: Building a High Growth, Sustainable and Diversified Marketplace
BUILDING A HIGH GROWTH, SUSTAINABLE AND DIVERSIFIED MARKETPLACE 24
Slide 25: Positioned for Low Risk Long-Term Growth
POSITIONED FOR LOW RISK LONG-TERM GROWTH… HIGH GROWTH DIVERSIFIED SUSTAINABLE • Leading global marketplace • Fresh and enduring content • Capital efficiency from • 10 consecutive years of growth • From global artists outsourcing and business model • Enormous addressable market • Range of product off
Slide 26: Thank You
© REDBUBBLE } THANK YOU
Slide 27: Disclaimer
DISCLAIMER The material herein is a presentation of information in summary form and does not purport to be complete. Investors or potential investors should seek their own independent advice. This material is not intended to be relied upon as advice to investors or potential investors and does not t