Slide 1: Investor Update and Strategic Outlook
Investor Update and Strategic Outlook March 2019
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by “AuMake To the fullest extent permitted by law, AuMake, its International Limited” (“AuMake”). This document officers, employees, agents and advisors do not make contains background information about AuMake any representation or warranty, express or
Slide 3: Overview of 1H FY19
Overview of 1H FY19 — AuMake has been using its 13 retail stores to develop a profitable and scalable business model in the Australian daigou and Chinese tourist (“cross border retail”) market — AuMake retail stores now achieve gross margins double that of our competitors (20% vs 10%) — AuMake can e
Slide 4: Profitable & scalable business model
Profitable & scalable business model — Significant turnaround in 1H FY19 (vs 2H FY18) — Market leading efficiency and cash investment to • Sales and gross profit up 77% and 108% gross profit conversion • Total operating expenses only grew 19% — Demonstrates AuMake business model can generate — Gross
Slide 5: 1H FY19 financial overview
1H FY19 financial overview Sales, gross profit and margin Same store growth* — Total sales up 142% to $21.8m on the corresponding — Strong same store growth up 30% in sales and 71% period 1H FY18 in gross profit — Gross profit increased by 274% to $4.2m resulting in — All stores have been maturing a
Slide 6: 1H FY19 financial overview
1H FY19 financial overview Normalised operating expenses as a % of sales Net cash operating outflows — For the half year, operating costs significantly — Operating cash outflow significantly decreased decreased representing 31% of sales, down by 33% to $2.07m compared to 2H 2018 $4.6m, while from pr
Slide 7: 1H FY19 financial overview
1H FY19 financial overview Owned brand sales — Exceptional growth in owned brand sales up 424% to $1.40m 1H FY19 compared to 1H FY18 — Key tenet of AuMake business model and gross margin expansion strategy — Inherent value in owned brand equity; potential opportunity to sell these brand(s) themselve
Slide 8: Market size and AuMake today
Market size and — Total value of products via the cross border retail market estimated in Australia to be $1.5b – $2b p.a. AuMake today — New Zealand (NZ) market estimated to be $0.25b – $0.5b p.a. — AuMake currently only in Sydney (13 stores) – Approx $50m p.a. — No dominant brands in either the Au
Slide 9: AuMake's future
AuMake’s future — AuMake assessing expansion opportunities in Australian and New Zealand capital cities: • Low store setup capital requirements to establish highly profitable stores in key new markets — Once achieved AuMake has the opportunity to be the dominant retail brand in both Australia and Ne
Slide 10: China
China Exclusive strategic agreement with JD Worldwide — JD Worldwide cross border e-commerce platform of JD.com, third largest internet company globally with revenues of A$77b in 2017 — AuMake has exclusive strategic agreement with JD Worldwide as its retail store partner in Australia — JD Worldwide
Slide 11: China
China JiaJia TV distribution agreement — Direct exposure through TV advertising reaching 300m Chinese viewers • $100,000 in sales of owned brand products achieved in short trial period since November 2018 with one product line sold out — Next scheduled screening planned for March 2019 — Opportunity
Slide 12: Current trading conditions and outlook
Current trading conditions and outlook —Strong trading volumes observed post Chinese New Year —No structural changes observed post 1 January 2019 e-commerce regulation —Overall long term demand from China for Australian and NZ products is strong —Cross border retail channel very resilient and adapti
Slide 13: Strategic outlook
Strategic outlook — Significant progress in last six months with AuMake achieving significant milestones: • Demonstrated capability to generate profits well in excess of operating expenses • Developed a profitable and scalable business model in a highly competitive market — Shift of strategic focus
Slide 14: Contact details
Contact details CORPORATE WEBSITE www.aumake.com.au MEDIA RELATIONS Lynn Semjaniv, Sauce Communications Mobile: 0481 004 797 Email: lynn@saucecommunications.com.au INVESTOR RELATIONS Keong Chan Executive Chairman Email: keong.chan@aumake.com.au Twitter: @AuMakeAus Instagram: @aumake LinkedIn: www.li