Cettire Ltd. · ASX:CTT
Cettire — Investor Presentation (August 2021)
32 slides from Cettire's investor presentation, Aug 31, 2021
Slide 1: FY21 Investor Presentation
FY21 INVESTOR PRESENTATION 31 AUGUST 2021
Slide 2: Delivering on Strategy
1 D E L I V E R I N G O N S T R AT E G Y PRIVATE & CONFIDENTIAL
Slide 3: Record Results – FY21
RECORD RESULTS – FY21 FY21 Reported +333% +304% 37% $12.7m Gross revenue 1 Sales revenue Product margin Operating cash flow to $124.5m to $92.4m ($33.8m) FY21 Constant Currency 2 FY21 Operating Metrics +384% +352% +266% +285% Gross revenue 1 Sales revenue Unique Web Traffic Active customers 3 to $13
Slide 4: Significant Outperformance Versus Prospectus Forecast
SIGNIFICANT OUTPERFORMANCE VERSUS PROSPECTUS FORECAST Web traffic Conversion rate Active customers 2 +266% +24% +285% 114.8k 13.9m vs pcp vs pcp vs pcp 1.22% 1.14% 10.2m 0.99% 3.8m 29.8k FY20 FY21 PF 3 FY21 FY20 FY21 PF 3 FY21 FY20 FY21 Gross revenue 1 Sales revenue Product margin +333% +304% +307%
Slide 5: Operational Highlights – FY21
OPERATIONAL HIGHLIGHTS – FY21 Enhancements to customer proposition and technology • Proprietary e-commerce storefront solution launched >170k • Substantial UI/UX improvements Orders • Free returns and BNPL partnerships – supports conversion +353% • Children’s wear category expansion – grows addressa
Slide 6: Unique Value Proposition
2 UN IQUE VALUE PROPOSITION PRIVATE & CONFIDENTIAL
Slide 7: Cettire Overview
CETTIRE OVERVIEW CE T T IRE IS A G LOBA L ON L IN E LUX URY RE TA IL E R Selection Customers Economics 114,830 Active ~200,000 products1 37% Product Margin2 Customers2 13.9m unique website ~1,700 brands1 $723 Average Order Value2 visits2 40% of Gross revenue >90% international ~$700m stock value1 fr
Slide 8: Cettire Value Proposition
CETTIRE VALUE PROPOSITION CE T T IRE OF F E RS ON E OF T HE L A RGEST S E L ECT ION S OF LUX URY ON L IN E . W E OF F E R COM P E T IT IV E P RICIN G A N D RA P ID F UL F IL M E N T, E N A BL E D BY OUR HIGHLY S CA L A BL E P ROP RIE TA RY T ECHN OLOGY RANGE VALUE RAPID FULFILMENT PROPRIETARY TECHNO
Slide 9: Scalable Proprietary Platform Now Covers the User Journey End-to-End
SCALABLE PROPRIETARY PLATFORM NOW COVERS THE USER JOURNEY END -TO-END CE T T IRE HA S A HIGHLY SCALABLE , P ROP RIE TARY T ECHN OLOGY STACK WHIC H REQUIRES M IN IM A L DAY - TO- DAY LA BOUR IN T E RV E N T ION E-commerce storefront • Customer facing e-commerce features that were previously outsource
Slide 10: Building a World Class User Experience
BUILDING A WORLD CLASS USER EXPERIENCE ST E P P E D UP IN V EST M E N T IN FRON T E N D OF P LAT FORM LE V E RAGIN G IP O P R OCE E D S 10
Slide 11: Near Term Priorities for Technology Investment
NEAR TERM PRIORITIES FOR TECHNOLOGY INVESTMENT Brand and user experience Localisation to enhance global iOS and Android Mobile App Continued AI investment presence Development Embedding proprietary e-commerce storefront 11
Slide 12: Enhancing Supply Chain
ENHANCING SUPPLY CHAIN S UP P LY CHA IN CON T IN UES TO GROW ST RON GLY P OST - IP O Brand database Product database Seller stock value 1 2 1 2 1 2 Published Brands Total Database Published Products Total Database Published Stock Value Total Database 199k $713m 1,715 168k 1,323 $520m $465m 87k 3 $26
Slide 13: Exceptional Growth Across Key Metrics
3 EXCEPTIONAL GROWTH ACROSS KEY METRICS
Slide 14: Site Traffic and Conversion
SITE TRAFFIC AND CONVERSION K E Y OP E RAT IN G M E T RICS A RE T RE N D IN G V E RY FAVOURA BLY Rapid growth in website traffic Conversion rate 1 Orders 24 Rolling LTM website visits (m) 21 Unique visits Total visits +24% +353% 18 +269% growth for LTM Jun-21 vs pcp 15 12 1.22 170k 9 % 0.99 % 6 3 38
Slide 15: Exceptional Customer Growth, Immediate Payback
EXCEPTIONAL CUSTOMER GROWTH, IMMEDIATE PAYBACK G ROW T H D RIV E N BY E XCE P T ION A L N E W CUSTOM E R ACQUIS IT ION A N D D E L IV E RIN G ST RON G RE T URN S ON CUSTOM E R ACQUIS IT ION COST S • Rapid customer acquisition • Strong return on customer acquisition investment • Marketing (ex-Brand)
Slide 16: Underlying AOV Increasing
UNDERLYING AOV INCREASING UN D E RLY IN G AOV IN CREA S E D 7 % 1 , D RIV E N BY BASKE T SIZ E Reported AOV has remained relatively stable over time Basket size was a key driver of underlying AOV AOV (A$)2 $1,000 $53 $808 $800 $(85) $757 $(1) $723 $600 $400 $200 $0 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20
Slide 17: Customer Lifetime Value
CUSTOMER LIFETIME VALUE P IECES IN P LACE TO D RIV E LON G T E RM RE V E N UE GROWT H A N D L IF E T IM E VA LUE Share of gross revenue from repeat customers is Repeat customers spend more per order1 Sales revenue per customer1, 3 growing1, 2 $890 $901 $841 $794 $805 $761 $766 $733 $683 $649 60% 74%
Slide 18: Financial Performance
FINANCIAL PERFORMANCE RA P ID GROWT H CON T IN UIN G WIT H ST RON G M A RGIN P E RFORM A N CE • Record sales revenue of $92.4m (+304% YoY) $’000 FY21 FY20 Growth % Growth % CC6 — Customer growth Sales revenue 92,409 22,856 304% 352% — Revenue per customer growth Product margin 33,772 8,306 307% 408%
Slide 19: Significantly Ahead of Prospectus Forecasts Across Key Metrics
SIGNIFICANTLY AHEAD OF PROSPECTUS FORECASTS ACROSS KEY METRICS ST RON G F UL L Y EA R P E RFORM A N CE June year end FY19 FY20 FY21 FY21 PF1 Beat vs FY21 PF1 Key operational metrics Unique website visits (‘000) 1,522 3,804 13,936 10,165 +37% % Change 686% 150% 266% 167% Conversion rate (%) 0.68% 0.9
Slide 20: Financial Position
FINANCIAL POSITION ST RON G BA LA N CE S HE E T TO UN D E RP IN GROWT H June June • Closing cash balance of $47.1m, incorporating IPO proceeds $’000 2021 2020 • Strong balance sheet with zero debt provides flexibility for Cash and cash equivalents 47,131 4,669 future growth Other current assets 2,75
Slide 21: Cash Flow
CASH FLOW CA P ITA L LIGHT BUS IN ES S M OD E L S UP P ORT S CA S H GE N E RAT ION $’000 FY21 FY20 • $12.7m positive operating cash flow supported by: — Trading EBITDA Net profit after tax (251) 1,532 Amortisation 663 366 — Highly attractive working capital profile Share-based payments expense 70 -
Slide 22: Outlook
OUTLOOK CETTIRE
Slide 23: Growth Strategy and Initiatives
GROWTH STRATEGY AND INITIATIVES WE A RE E X ECUT IN G ON OUR LON G - T E RM GROWT H ST RAT EGY GROWTH LEVER INITIATIVES • Further accelerate marketing spend to drive traffic Acquire and retain customers • New channels e.g. new paid marketing channels Grow awareness via brand • Selected investment in
Slide 24: FY22 Trading Update and Outlook
FY22 TRADING UPDATE AND OUTLOOK • Our positive trading momentum has continued into FY22, with July 2021 unaudited gross revenue increasing 181% on the pcp1 • Significant market penetration opportunity ahead • Business will be operated to maximise global revenue growth opportunity • Near term investm
Slide 25: Cettire Is Well Placed to Grow
CETTIRE IS WELL PLACED TO GROW 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 risk reward Technolo
Slide 26: Appendix
SARS APPENDIX - CETTIRE
Slide 27: Sales Revenue Drivers
SALES REVENUE DRIVERS Gross Revenue Sales Revenue Drivers A Website visits E Gross revenue x x Seasonality B Conversion rate (1- F Return rate ) Marketing = Online product C Number of orders listings x D Average order value = E Gross revenue 27
Slide 28: Massive + Growing TAM, Structural Tailwinds
MASSIVE + GROWING TAM, STRUCTURAL TAILWINDS T HE P E RS ON A L LUX URY GOOD S M A RK E T IS A A $ 4 6 0 B GLOBA L IN D UST RY 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 Mar
Slide 29: Customer Fulfilment on the Cettire Platform
CUSTOMER FULFILMENT ON THE CETTIRE PLATFORM P ROP RIE TA RY T ECHN OLOGY TO M A N AGE A N D AUTOM AT E A L L STAGES OF CUSTOM E R ORD E R F UL F IL M E N T Customer fulfilment cycle ORDER INVENTORY LOGISTICS SALE FULFILMENT MANAGEMENT MANAGEMENT MANAGEMENT Customer Purchase made Customer order recei
Slide 30: Income Statement Reconciliations
INCOME STATEMENT RECONCILIATIONS Statutory to pro forma EBITDA and NPAT and comparison to Prospectus forecasts Prospectus $’000s FY21A Pro Forma FY21F Pro Forma1 Difference Statutory EBITDA 797 (1,973) 2,770 Share-based payments 64 - 64 IPO costs 847 495 352 Incremental public company costs (379)2 (
Slide 31: 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 32: Global Online Luxury Retailer www.cettire.com
GLOBAL ONLINE LUXURY RETAILER WWW.CETTIRE.COM