Slide 1: FY24 Results Presentation
FY24 Results Presentation 26 August 2024
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 Compa
Slide 3: CEO update
CEO update. Ruslan Kogan Founder, CEO and Executive Director 2
Slide 4: FY24 Kogan Group highlights
FY24 Kogan Group highlights. Loyal customers underpin return to positive operating leverage and profitability. Platform performance Operating leverage ¦ Kogan FIRST grew to over 502,000 Subscribers1, an ¦ The FY24 results confirm the return to historically strong operating leverage increase of over
Slide 5: FY24 Kogan Group highlights
FY24 Kogan Group highlights. Our Verticals achieved a record year and we expanded our platform revenue stream. Verticals u The Verticals grew by over 20% in FY24, delivering $20.0 million in RevenueT u Mighty Mobile, Mighty Ape's first vertical launched, leveraging Kogan.com's platform and experienc
Slide 6: FY24 Kogan Group highlights
FY24 Kogan Group highlights. Earnings growing faster than revenues as operating leverage momentum builds. Group financial Gross Sales and Revenue of $809.0 million and $459.7 million, declined 4.8% and 6.1%, respectively. However performance comps did improve throughout the year, culminating in gr
Slide 7: FY24 Kogan Group results
FY24 Kogan Group results. Increased operating leverage delivers strong profitability. $m FY23 FY24 Gross Sales7 849.7 809.0 Revenue 489.5 459.7 Gross Profit 136.6 168.4 Gross Margin 27.9% 36.6% Variable costs8 (67.8) (64.9) Fixed costs (89.7) (67.4) EBITDA (20.8) 36.0 Adjusted EBITDA 6.8 40.0 EBIT (
Slide 8: Kogan.com Platform-based Sales
Kogan.com Platform-based Sales. 2 Higher margin Platform-based Sales2 contribution continues YoY growth, underpinning improved earnings. Platform-based Gross Sales contribution 2,11 62% 57% 48% 38% 36% 27% 4% 5% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 The positive impact of Platform-based Sales2 on
Slide 9: Kogan FIRST
Kogan FIRST. Free shipping Exclusive prices Rewards credits Everyday discount Priority Customer service Kogan FIRST grew to more than half-a-million Subscribers12. Kogan FIRST Subscribers 12 What Kogan FIRST Subscribers12 mean to us 60.7% 3-year CAGR Over 61% 600,000 +25.0% YoY Kogan FIRST Subscribe
Slide 10: Delighting our customers
Delighting our customers. We have strong repeat-buyer behaviour amongst our 2.6 million customers, delivering strong profitability. Kogan Group Active Proportion of Group Gross profit per Group Customers Repeat Customers 14 Active Customer 15 69.5% 67.9% 64.6 65.0% 46.4 58.3% (%) ($) 2,609,000 51.0%
Slide 11: Marketing proficiency
Marketing proficiency. We are achieving greater marketing efficiency with our key customers, specifically Kogan FIRST Subscribers. FY24 Group Traffic - Marketing spend per Kogan Owned & Earned vs Paid FIRST Subscriber16 97.8 88.8 Owned & Earned Source } Direct website traffi 32% } Direct App traff
Slide 12: Products
Products. Topline growth returned to the Division in the final quarter, while Gross Profit grew by over 39%. Significant profitability improvement The Product Division exited FY24 with a strong trajectory +39.6% 3.8% 39.3 Revenue YoY Comps (%) Gross Profit ($m) 28.1 -6.1% -21.0% -31.3% FY23 FY24 1QF
Slide 13: Kogan Verticals
Kogan Verticals. The Kogan Verticals achieved a record year, delivering incredible value on essential services to hundreds of thousands of customers. Verticals 15.0% 3-year CAGR +20.5% 20.0 Revenue ($m) 16.6 15.7 13.2 FY21 FY22 FY23 FY24 T The Verticals play a crucial role in diversifying and streng
Slide 14: Financial update
Financial update. David Shafer CFO, COO and Executive Director 13
Slide 15: Kogan Group FY24 P&L
Kogan Group FY24 P&L. A transition to higher-margin revenue and effective inventory management led the return to profitability. $m FY23 FY24 Gross Sales 849.7 809.0 Revenue 489.5 459.7 Cost of sales (352.9) (291.3) Gross Profit 136.6 168.4 Gross Margin 27.9% 36.6% Variable costs (19.3) (16.9) Market
Slide 16: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. We have returned to strong financial performance. The Company recorded Gross Sales of $809.0 million and Revenue of $459.7 million. Despite the decline in results, growth Gross Sales & trajectory improved through FY24^ Revenue The Group achieved Revenue gr
Slide 17: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. We have returned to strong financial performance. Products Products refers to Kogan.com’s (excluding Mighty Ape) Exclusive Brands and Third-Party Brands offerings. Revenue totalled $223.8 million, representing a decline of 15.6%.w A significant driver of p
Slide 18: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. We have returned to strong financial performance. Variable & d Variable costs reduced by over 12%, as the realignment of inventory in the business allowed for a combination of consolidation marketing costs and reduction in costs within our logistics network. }
Slide 19: Key drivers of Kogan Group performance
Key drivers of Kogan Group performance. We have returned to strong financial performance. Bottom line s These adjusted metrics measure the underlying performance of the Business, removing non-cash items, namely unrealised profitability gains/(losses) and equity-based compensation. As such, these met
Slide 20: FY24 Gross Profit by Business Division
FY24 Gross Profit by Business Division. Over half of the Group’s Gross Profit was generated from Platform-based Sales2, which are higher margin, capital light and scalable. FY24 Gross Profit contribution Advertising & Other 2.3% Kogan FIRST Verticals 25.9% 11.9% Kogan Marketplace 13.0% Products Migh
Slide 21: Kogan Group Operating Leverage
Kogan Group Operating Leverage. Recovery post-COVID is complete, with bottom line profitability approaching historical highs. FY19 FY20 FY21 FY22 FY23 FY24 Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Gross Margin 20.7% 25.4% 26.1% 25.7% 27.9% 36.6% Delivered Margin (after all logistics costs)
Slide 22: Mighty Ape
Mighty Ape. Gross profitability improved along with growth of the PRIMATE program despite challenging trading conditions in New Zealand. Mighty Ape Financials A$m FY23 FY24 Gross Sales 154.4 147.7 Revenue 154.8 146.518 Over 35% Gross Profit 39.0 39.8 Gross Margin 25.2% 27.1% EBITDA 8.7 7.4 EBITDA Ma
Slide 23: Kogan Group Balance Sheet
Kogan Group Balance Sheet. Strong cash balance, zero debt and well-managed inventory levels. $m 30 June 2023 30 June 2024 CURRENT ASSETS Strong capital position with $41.2 million cash and no debt at 30 Cash 65.4 41.2 Trade and Other Receivables 8.5 10.2 June 2024. The cash balance was achieved incl
Slide 24: Kogan Group Cash Flow Statement
Kogan Group Cash Flow Statement. The Group’s cash flows included a sizable investment in the Share buy-back program and completion of the Mighty Ape Tranche 4 payment (final tranche). Cash flows from Operating Activities FY23 FY24 Receipts from customers 509.9 519.2 The Group generated $28.2 million
Slide 25: FY25 Trading Update & Outlook
FY25 Trading Update & Outlook. Ruslan Kogan Founder, CEO and Executive Director 24
Slide 26: FY25 Kogan Group trading update and outlook
FY25 Kogan Group trading update and outlook. Overvie4 In FY25, we expectn A Consistent with prior years, the Company will not be providing earnings A Continued strong contribution from Platform-based Sale\ guidance. Its next scheduled business update will be provided at the AGM A Improving Gross Mar
Slide 27: Final Dividend
Final Dividend. The Board has declared a fully franked Final Dividend of 7.5 cents per Ordinary Share. The Dividend Reinvestment Plan (DRP) will apply to the Final Dividend at a 2.5% discount to the 5-day volume weighted average price of shares sold on the ASX from the trading day prior to the recor
Slide 28: Glossary
Glossary. FY2x: the 12 months ended 30 June 20xx. Adjusted EBITDA: earnings before interest, tax, depreciation and amortisation and excludes unrealised gain/(loss), equity-based compensation and one-off non-recurring items. Refer to Annexure 2 of this Presentation for a detailed reconciliation of ad
Slide 29: 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/Vodaf
Slide 30: Annexure 1: FY24 Revenue by Business Division
Annexure 1. FY24 Revenue by Business Division. FY23 FY24 $m Revenue Revenue Variance (%) Products 265.2 223.8 (15.6%) Mighty Ape21 154.8 146.4 (5.4%) Kogan FIRST 26.3 43.7 66.1% Kogan Marketplace 23.9 21.9 (8.2%) Verticals21 16.6 20.0 20.5% Advertising & Other 2.7 3.9 42.2% Total 489.5 459.7 (6.1%)
Slide 31: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
Annexure 2. Reconciliation to Kogan Group Adjusted EBITDA and Adjusted NPAT. Non-cash Adjusted EBITDA, Adjusted EBIT and Adjusted NPAT are measures of the Unrealised Equity-based Non-cash loss) compensation DTA release depreciation & underlying performance of the Business, they remove non-cash items