Slide 1: 1HFY25 Results Presentation
1HFY25 Results Presentation 24 February 2025
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: 1HFY25 Kogan Group highlights: return to strong growth
1HFY25 Kogan Group highlights. Return to strong growth and continued profitability. Kogan Group financial performance 10.3% Gross Sales1 9.9% Revenue 18.3% Growth Profit growth growth growth 17.5% Adjusted 21.2% Adjusted EBIT2 7.9% Adjusted NPAT4 EBITDA2 growth growth growth And 24.8% EBITDA growth
Slide 5: Operating leverage increased
1HFY25 Kogan Group highlights. Operating leverage increased. Operating leverage Platform-based Sales3 ¦ The Kogan Group’s operating leverage improved, driven by Kogan.com, with ¦ Operating leverage continued to strengthen, largely driven profitability metrics increasing across Gross Margin, Delivere
Slide 6: Key divisions achieved double digit growth
1HFY25 Kogan Group highlights. Key divisions across the Kogan Group achieved double digit growth. Kogan Products The Products5 division continued its post-pandemic recovery with inventory maintained at optimal levels and the division achieving growth. During the half, Gross Sales1 increased by 12.
Slide 7: Accelerated growth over the peak retail period
1HFY25 Kogan Group highlights. Kogan.com achieved accelerated growth over the peak retail period. Peak period review - November and December 2024 Kogan.com Growth on PCP (%) g Through a strategic shift aimed at growing top line and capturing market share, Kogan.com increased marketing Jul-Oct 68.3%
Slide 8: Strong profitability delivered dividends
1HFY25 Kogan Group highlights. Strong profitability delivered dividends. Mighty Ape 1 The Company replatformed the Mighty Ape website, launching the upgraded platform at the end of October 2024. This transition enabled enhancements to the Mighty Ape PRIMATE loyalty program and the introduction of th
Slide 9: 1HFY25 Kogan Group results
1HFY25 Kogan Group results. The Group returned to growth across all key financial metrics. $m 1HFY24 1HFY25 PCP Var (%) Gross Sales¹ 446.6 492.5 10.3% Revenue 248.2 272.7 9.9% Gross Profit 89.5 106.0 18.3% Gross Margin 36.1% 38.9% 2.8pp/7.7% Variable costs6 (36.1) (48.2) 33.7% Fixed costs (34.0) (33
Slide 10: A return to top-line and market share growth
A return to top-line and market share growth A strategic increase in marketing investment combined with a refined customer offering helped deliver topline and market share growth, while retaining operating leverage in Kogan.com. Kogan.com growth on the PCP Kogan Group Active Customers 66.5% 15.7% gr
Slide 11: Kogan.com Platform-based Sales
Kogan.com Platform-based Sales. 3 Platform-based Sales3 contributed significantly to the improved profitability. Kogan.com Platform-based Gross Sales1 contribution 64% 62% 57% 48% 38% 36% 27% 4% 5% FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1HFY25 Kogan.com’s Platform-based Sales3 continue to be a key
Slide 12: Kogan Marketplace
Kogan Marketplace. 8 The division returned to double digit growth in the half. Kogan Marketplace Gross Sales 1 Kogan Marketplace Revenue 16.7% growth 20.2% growth 14.8 > The Kogan Marketplace offers millions of products to 150.8 our customers while supporting thousands of small 129.2 12.3 businesses
Slide 13: Kogan FIRST
Kogan FIRST. Exclusive benefits and the program value drove Revenue uplift. Kogan FIRST Kogan FIRST member benefits 24.2% growth 28.2 Revenue ($m) 22.7 Free shipping Exclusive prices FIRST Member Giveaways Kogan Rewards Holiday & Hotel Double Qantas discounts Points 1HFY24 1HFY25 W Kogan FIRST Subsc
Slide 14: Kogan Verticals
Kogan Verticals. The Verticals division achieved another record half of Revenue, growing by 16.7%. Kogan Verticals 16.7% growth 11.3 Revenue ($m) 9.7 1HFY24 1HFY25 d Increasing customer recognition of the exceptional value in our essential services offering drove another record half-year of Revenue
Slide 15: Kogan Products
Kogan Products. An optimised inventory range drove strong Revenue growth and enhanced profitability. Significant Revenue growth Improved margins delivered accelerated Gross Profit growth ¤ The Products division includes both our Exclusive Brands and Third-Party Brands offering 21.7% growth 37.5% gro
Slide 16: Kogan Products (continued)
Kogan Products (continued). The Kogan Products division has significantly strengthened. Average item value sold has The proportion of Exclusive Brands been increasing products sold has been increasing 71.5% Contribution from Kogan Avg. item value sold ($) 67.9% 66.8% Exclusive Brands 162 140 70 1HFY
Slide 17: Mighty Ape website update
Mighty Ape website update. The onboarding of Mighty Ape onto the Kogan tech ecosystem has enabled a number of improvements and benefits. Improved Affiliate Marketing opportunities App launch Marketplace launch Additional benefits Advanced analytics and reportin} PRIMATE Membership subscription im
Slide 18: Financial update
Financial update. David Shafer CFO, COO and Executive Director 17
Slide 19: Kogan Group 1HFY25 P&L
Kogan Group 1HFY25 P&L. Strong topline performance delivered double digit growth across key financial metrics. $m 1HFY24 1HFY25 PCP Mvmt % Gross Sales¹ 446.6 492.5 10.3% Revenue 248.2 272.7 9.9% Cost of sales (158.7) (166.8) 5.1% Gross Profit 89.5 106.0 18.3% Gross margin 36.1% 38.9% 2.8pp/7.7% Vari
Slide 20: Kogan.com 1HFY25 P&L
Kogan.com 1HFY25 P&L. Topline growth and increased operating leverage delivered 48% growth in Adjusted EBITDA2. $m 1HFY24 1HFY25 PCP Mvmt % Gross Sales¹ 359.3 414.8 15.4% Revenue 162.7 198.9 22.3% Cost of sales (95.7) (113.2) 18.4% Gross Profit 67.0 85.6 27.8% Gross Margin 41.2% 43.1% 1.9pp/4.5% Var
Slide 21: Key drivers of Kogan.com performance
Key drivers of Kogan.com performance. Kogan.com delivered profitable growth across key divisions. Gross Sales1 & h Kogan.com recorded Gross Sales1 of $414.8 million and Revenue of $198.9 million. These results represent double digit growth of Revenue 15.4% and 22.3%, respectively. Gross Profit & h G
Slide 22: Key drivers of Kogan.com performance
Key drivers of Kogan.com performance. Kogan.com has returned to strong financial performance. Kogan e Kogan Marketplace contributed Gross Sales1 of $150.8 million and Revenue of $14.8 million in 1HFY25? Marketplace e This result represents a return to growth of the division, with Gross Sales1 growin
Slide 23: Key drivers of Kogan.com performance
Key drivers of Kogan.com performance. Kogan.com profitability increased. Bottom line m Key profitability metrics improved, beingS profitability metrics m Adjusted EBITDA2 of $23.4 million grew 48.0%; anQ m Adjusted EBIT2 of $18.4 million grew 66.5%F m These adjusted metrics measure the underlying pe
Slide 24: Mighty Ape performance
Mighty Ape performance. The half included the upgrade of the Mighty Ape website, unlocking significant future improvements while causing short-term challenges. Prior to November, Mighty Ape’s profitability was broadly stable year-on-year while the Mighty Ape Financials Company was facing sub-optimal
Slide 25: Gross Profit by Business Division
1HFY25 Kogan Group Gross Profit by Business Division. Platform-based Sales3 divisions contributed over 55%. Exclusive Products and Services contributed 71.2%. This demonstrates the majority of the Gross Profit of the Group is derived from scalable and defensible sources. 1HFY25 Gross Profit contribu
Slide 26: Kogan Group Operating Leverage
Kogan Group Operating Leverage. The Kogan Group achieved strong profitability metrics in the half, driven by an efficient business model. 1HFY23 1HFY24 1HFY25 Revenue 100.0% 100.0% 100.0% Gross Margin 22.8% 36.1% 38.9% Delivered Margin (after all logistics costs) 18.6% 32.2% 35.4% Marketing costs 8.
Slide 27: Kogan Group Balance Sheet
Kogan Group Balance Sheet. The Group completed the period with a strong cash balance and no debt. $m 31 Dec 2023 31 Dec 2024 CURRENT ASSETS The cash balance of $67.7 million was achieved inclusive ofT Cash 83.3 67.7 Trade and Other Receivables 10.1 14.7 6 Investment in the Share buy-back program; an
Slide 28: Kogan Group Cash Flow Statement
Kogan Group Cash Flow Statement. The Group generated strong positive operating cash flows, highlighting its profitable and sustainable business model. Cash flows from Operating Activities 1HFY24 1HFY25 Receipts from customers 257.3 294.9 Payments to suppliers and employees (204.6) (244.7) The Group
Slide 29: 2HFY25 Trading Update & Outlook
2HFY25 Trading Update & Outlook. Ruslan Kogan Founder, CEO and Executive Director
Slide 30: 2HFY25 Kogan Group trading update and outlook
2HFY25 Kogan Group trading update and outlook. Consistent with prior years, the Company will not be providing earnings guidance. January 2025 unaudited management account In 2HFY25, we expect: Group Gross Sales1 of $80.4 million (+24.9% YoY) YoYd Kogan.com Gross Sales1 of $70.8 million (+30.8%
Slide 31: Dividend
Dividend. Reflecting a profitable financial performance in the half, the Board has declared a fully franked interim dividend of 7.0 cents per Ordinary Share. In addition, the Board intends to resume the Share buy-back program. The Dividend Reinvestment Plan (DRP) will apply to the interim dividend a
Slide 32: Annexure 1: 1HFY25 Revenue by Business Division
Annexure 1. 1HFY25 Revenue by Business Division. 1HFY24 1HFY25 PCP $m Revenue Revenue Variance (%) Products 115.9 141.0 21.7% Marketplaces 12.3 15.1 22.5% Mighty Ape¹2 85.5 72.6 (15.1%) Verticals 9.7 11.5 17.9% Loyalty programs 22.7 29.0 27.8% Advertising & Other 2.1 3.6 70.5% Total 248.2 272.7 9.9%
Slide 33: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
Annexure 2. Reconciliation to Kogan Group Adjusted EBITDA² and Adjusted NPAT4 Non-cash Adjusted EBITDA2 and Adjusted NPAT4 are measures of the underlying Unrealised gain Equity-based performance of the Business, they remove non-cash items including the unrealised compensation depreciation & Adjusted
Slide 34: Footnotes
Footnotes. 6 Gross Sales is a key metric of the Company, given the gross transaction values of the Marketplaces and Verticals are not reflected in Revenue ! Adjusted EBITDA and Adjusted EBIT exclude non-cash items including unrealised gains/(losses) and equity-based compensation Refers to sales gene
Slide 35: Glossary
Glossary. 1HFY2x: the 6 months ended 31 December 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 detailed reconciliation of adjusting it
Slide 36: Glossary
Glossary. Kogan Mobile Australia: launched in 2QFY16, vertical offering pre-paid mobile phone plans available online using TPG/Vodafone’s mobile network in Australia. Kogan Mobile New Zealand: Vertical launched in 1HFY20 offering pre-paid mobile phone plans available online using One NZ’s mobile net