Kogan.com Ltd. · ASX:KGN
Kogan.com — UBS Emerging Companies Consumer Conference 2017
17 slides from Kogan.com's conference presentation, May 31, 2017
Slide 1: UBS Emerging Companies Consumer Conference
UBS EMERGING COMPANIES CONSUMER CONFERENCE 31 MAY 2017
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 (Kogan.com)
Slide 3: Who We Are
WHO WE ARE MOST VISITED AUSTRALIAN CHANNELS COMMUNITY SHOPPING WEBSITES1 1 910,000 active customers2 2 36.4% YoY 3 Active customers3 4 950 910 900 887 5 856 872 850 830 VERTICALS 791 6 '000 800 763 746 750 727 717 7 687 702 700 667 650 8 Jan-17 Feb-17 Mar-17 Apr-17 Jul-16 Dec-16 Sep-16 Apr-16 Aug-16
Slide 4: Business Performance
BUSINESS PERFORMANCE Kogan.com exceeded the full year FY17 Prospectus forecast Pro Forma EBITDA of $6.9 million within the first half. Prospectus forecast Actual 1H16 1H172 Actual 1H17 YoY Variance % Revenue $m 104.7 123.3 143.9 37.4% Gross Margin % 15.1% 15.2% 18.0% 2.9pp/19.2% Pro Forma Trading EB
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS GROSS MARGIN Pro Forma Trading EBITDA1 VALUE DRIVERS 18.5% 8.0 18.0% Strong Private 7.0 Label business 17.5% 6.0 17.0% 5.0 16.5% World class 16.0% 4.0 supply chain 15.5% 3.0 15.0% 2.0 14.5% Established brand 1.0 14.0% 13.5% 0 1H16A 1H17F2 1H17A 1H16A 1H17F2 1H17A Kogan Mobile No
Slide 6: How We Deliver Value
HOW WE DELIVER VALUE BEST-IN-CLASS DATA DRIVEN CULTURE COMPELLING OFFERING SERVICE & TECHNOLOGY Leveraging data, analytics and We believe ‘There is always a Strong Private Label offering, customer insights to effectively better way’ and as such continue bringing market leading prices to deploy IPO p
Slide 7: Growing Our Brand
GROWING OUR BRAND The business achieved 36.4% YoY growth in active customers. Apr-16 Apr-17 YoY growth % Active Customers1 667,000 910,000 36.4% LTM UNIQUE ACTIVE CUSTOMERS1 950 910 900 887 872 856 850 830 791 '000 800 763 746 750 727 717 702 700 687 667 650 Jan-17 Feb-17 Mar-17 Apr-17 Jul-16 Dec-16
Slide 8: Industry Leading Proprietary IT Platform
INDUSTRY LEADING PROPRIETARY IT PLATFORM Scalable web infrastructure that drives increased engagement and conversion optimisation #1 Most Mobile Ready Australian Brand1 -Ansible Leveraging data, analytics and long-term investments in systems to continually better understand PROPRIETARY our customers
Slide 9: Private Label Strategy
PRIVATE LABEL STRATEGY Private Label is a pillar of the business and remains a focus area for the business to generate further growth and build the customer base. Investment of IPO proceeds in our exclusive Private Label brands is expected to be a key driver in 2H17 performance. Consumer Electronics
Slide 10: Recent Awards
RECENT AWARDS Kogan Private Label products have recieved awards and recognition in 2H17. Kogan TVs won the Kogan Atlas UltraSlim Pro laptop recognised Canstar Value for Money Award by the Good Gear Guide as Best Buy 10
Slide 11: 1H17 Gross Profit Product & Business Mix
1H17 GROSS PROFIT PRODUCT & BUSINESS MIX Following investment of IPO proceeds in 1H17, Private Label is poised for strong growth in 2H17. GROSS PROFIT MIX IN 1H17 Mobile 4.2% Other Income 0.9% Travel 1.3% OVERVIEW Private Label began to reap the benefits Private Label Third Party of the deployment o
Slide 12: Kogan Mobile
KOGAN MOBILE Kogan Mobile exceeded Prospectus Forecast Gross Sales by 83.3% in 1H17 and continued its trajectory in 3Q17 Prospectus $m forecast 1H17 Actual 1H17 % Variance Gross sales1 Kogan Mobile 0.6 1.1 83.3% KOGAN MOBILE QUARTERLY COMMISSION ($000s) 1300 1200 1100 1000 900 Strong commercial rela
Slide 13: Delivering Growth in FY17 & Beyond
DELIVERING GROWTH IN FY17 & BEYOND Kogan.com’s growth initiatives are designed to support and consolidate our position as Australia’s largest pure play online retailer by leveraging our core business strengths. EXISTING GROWTH INITIATIVES USE OF NEW CAPITAL MEDIUM-TERM OPPORTUNITIES Third Party Dome
Slide 14: Market Opportunity
MARKET OPPORTUNITY AUSTRALIAN ONLINE RETAIL PENETRATION STILL COMPARATIVELY LOW 11.5% CAGR Euromonitor forecast for Australian online retail growth to 2019 37.2% CAGR Euromonitor forecast for Australian mobile online retail growth to 2019 Note: Euromonitor Passport Retailing 2016. Online penetration
Slide 15: 2H17 Outlook
2H17 OUTLOOK Positive outlook for 2H17 due to growth in gross margins, strong growth in revenue and Kogan Mobile. The company has delivered more than $10 million of Pro Forma Trading EBITDA in the nine months to 31 March 2017, and the Board now expects full year FY17 Pro Forma Trading EBITDA to be m
Slide 16: Q&A
Q&A 16
Slide 17: Glossary
GLOSSARY Third Party Branded Domestic: brands owned by third parties, for which products are sourced domestically Third Party Branded International: brands owned by third parties, for which products are sourced internationally Private Label: products sold under brands owned by Kogan.com New Vertical
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