Slide 1: 1HFY21 Results Presentation
1HFY21 RESULTS PRESENTATION 26 FEBRUARY 2021
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 Compan
Slide 3: Contents
CONTENTS CEO Update Page 4 - 17 Financial Update Page 18 - 28 Outlook Page 29 - 32 3
Slide 4: CEO Update
CEO Update Ruslan Kogan Founder, CEO and Executive Director 4
Slide 5: 1HFY21 Kogan Group Highlights
1HFY21 KOGAN GROUP HIGHLIGHTS Our Business is experiencing extreme growth which included a record breaking Black Friday week and Active Customers surging past three million during the half. During this extraordinary growth period we achieved Gross Sales1, Revenue, Gross Profit and Adjusted EBITDA2 g
Slide 6: 1HFY21 Kogan Group Results
1HFY21 KOGAN GROUP RESULTS Adjusted EBITDA1 of $51.7 million and Adjusted NPAT1 of $36.5 million exceeded 1HFY20 by 184.4% and 250.2%, respectively, driven by Gross Profit growth of 126.2%. 1HFY20 vs 1HFY21 $m 1HFY20 1HFY212 Variance Gross Sales3 323.45 638.2 97.4% ▲ Revenue4 219.5 414.0 88.6% ▲ Gro
Slide 7: Kogan Group Financial Highlights
KOGAN GROUP FINANCIAL HIGHLIGHTS Improving Operating Leverage over many years has allowed Kogan.com to grow Adjusted EBITDA1 at a faster rate than Gross Sales2 and Gross Profit. GROSS SALES2 GROSS PROFIT ADJUSTED EBITDA1 NPAT ADJUSTED NPAT1 ADJUSTED EPS1 97.4% ▲ 126.2% ▲ 184.4% ▲ 164.2% ▲ 250.2% ▲ 2
Slide 8: Acquisition of Mighty Ape
ACQUISITION OF MIGHTY APE Kogan.com acquired leading NZ Online Retailer Mighty Ape in December 2020. 1995 Launched as Gamezone The Mighty Ape family ● Commenced as a traditional B&M store. Strong relationship with Sony is developed, hosting the official New Zealand release of the first Sony Playstat
Slide 9: Who We Are
WHO WE ARE We have built a Business that allows us to be agile, bold and innovative. Our growing portfolio of businesses enables us to scale significantly while mitigating operational risks. 3,100 Kogan.com Active Customers (000's) 2,900 Mighty Ape Active Customers 2,700 2,500 2,300 2,100 1,900 1,70
Slide 10: Kogan Kinetics
KOGAN KINETICS Our mission is to make the most in-demand products and services more affordable and accessible for all. ENHANCED CONSUMER OFFERING CUSTOMER & PLATFORM GROWTH • Broader selection • Scale of efficiencies • Improved pricing • Customer acquisition & retention • Expand audience via acquisi
Slide 11: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM Gross Sales per Customer1,2 is expected to benefit as recently acquired Customers continue to shop through the remainder of their first year. REPEAT BUSINESS - CREATING BRAND LOYALTY2 Repeat business from new Customers, Repeat Orders is rapidly accelerating, as custom
Slide 12: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM We have invested heavily in our platform and growing Active Customers in 1HFY21, recording our largest marketing spend ever during the period. 6 MONTH RETURN ON INVESTMENT IN MARKETING1 LTM return on investment in marketing1, we we have $30 invested heavily in our pla
Slide 13: Building the Kogan.com Platform
BUILDING THE KOGAN.COM PLATFORM Free traffic continues to represent more than 67% of all traffic following significant investment in our platform. KOGAN.COM TRAFFIC - FREE (BRAND DRIVERS) VS PAID MARKETING Free Sources 33% • Direct website traffic • Direct App traffic 67% • Brand searches • Other or
Slide 14: Kogan Marketplace
KOGAN MARKETPLACE Gross Sales1 in 1HFY21 further grew by 194.3% on 1HFY20 continuing the extraordinary growth achieved in 2HFY20. Kogan Marketplace achieved its first $10m+ week of Gross Sales1 during the Black Friday week. KOGAN MARKETPLACE GROSS SALES1 ACHIEVED SIGNIFICANT GROWTH HALF-ON-HALF 194.
Slide 15: Exclusive Brands Strategy
EXCLUSIVE BRANDS STRATEGY Exclusive Brands achieved Revenue growth of 114.9% in 1HFY21 vs 1HFY20, continuing to meet strong consumer demand across a wide-array of products. YoY GROWTH IN KOGAN EXCLUSIVE BRANDS REVENUE ACCELERATED IN 1HFY21 250 114.9% ▲ Exclusive Brands growth rate increased YoY and
Slide 16: Kogan First
KOGAN FIRST Kogan First provides members with a suite of consumer benefits, creating a large and growing community of loyal customers who access free shipping and a range of exclusive benefits. KOGAN FIRST MEMBERS1 Kogan First members purchase on average much more often than non- members, demonstrat
Slide 17: Our Proprietary Technology
OUR PROPRIETARY TECHNOLOGY IT solutions powering scale. PLATFORM FOR SCALE & GROWTH TECHNOLOGY PLATFORM Proprietary eCommerce Engine Refined Team Technical Capability • Offers over 15 payment methods - including BNPL • Proprietary Product Search algorithm • Strong development processes • Secure plat
Slide 18: Financial Update
Financial Update David Shafer CFO, COO and Executive Director 18
Slide 19: 1HFY21 Kogan Group Results Compared to 1HFY20
1HFY21 KOGAN GROUP RESULTS COMPARED TO 1HFY20 Adjusted EBITDA1 growth to $51.7 million represents an increase of 184.4%. $m 1HFY20 1HFY214 Variance % Gross Sales 2 323.4 5 638.2 97.4% Overview Revenue3 219.5 414.0 88.6% Cost of sales (169.6) (301.1) 77.5% Gross Sales2 growth accelerated through the
Slide 20: 1HFY21 Kogan.com Results Compared to 1HFY20
1HFY21 KOGAN.COM RESULTS1 COMPARED TO 1HFY20 Adjusted EBITDA2 growth to $48.8 million represents an increase of 168.3%. $m 1HFY20 1HFY21 Variance % Gross Sales 3 323.4 5 618.3 91.2% Overview Revenue4 219.5 394.1 79.5% Cost of sales (169.6) (286.5) 68.9% Gross Sales3 reflects the total transactional
Slide 21: Key Drivers of Kogan Group 1HFY21 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY21 FINANCIAL PERFORMANCE Record half including record breaking Black Friday week and Active Customers surging past three million. The Business achieved growth in Active Customers of 76.8% in 1HFY21. At 31 December 2020 Kogan.com PLATFORM GROWTH had 3,003,000 Active Cus
Slide 22: Key Drivers of Kogan Group 1HFY21 Financial Performance
KEY DRIVERS OF KOGAN GROUP 1HFY21 FINANCIAL PERFORMANCE Kogan Mobile grew 12.9% YoY, contributing over 4.8% of the Group’s total Gross Profit. Kogan Internet NEW VERTICALS Customers grew 17.9% YoY. Negative growth was experienced in some New Verticals, driven by Travel and Insurance (inc Travel Insu
Slide 23: Improving Operating Leverage
IMPROVING OPERATING LEVERAGE 1HFY18 1HFY19 1HFY20 1HFY211 Revenue 100.0% 100.0% 100.0% 100.0% Gross Margin 19.4% 19.5% 22.7% 27.3% Delivered Margin (after all logistics costs) 16.1% 15.3% 17.8% 22.9% Marketing costs 4.5% 5.0% 4.0% 7.4% Contribution Margin 11.6% 10.3% 13.8% 15.5% Fixed costs 4.9% 4.7
Slide 24: 1HFY21 Kogan Group Gross Profit Product & Business Mix
1HFY21 KOGAN GROUP GROSS PROFIT PRODUCT & BUSINESS MIX More than half of our Gross Profit is generated from our Exclusive Brands Products. Mighty Ape1 4.8% Other Revenue2 4.7% Advertising Income 1.9% Kogan Mobile Australia 4.8% Kogan Marketplace 11.7% Exclusive Brands 55.9% Kogan Marketplace outperf
Slide 25: Kogan Mobile & Kogan Internet
KOGAN MOBILE & KOGAN INTERNET Kogan Mobile Australia and Kogan Internet continue to achieve growth in number of Customers. KOGAN MOBILE AUSTRALIA CUSTOMERS1 Kogan Mobile Australia, grew 12.9% YoY, contributing over 4.8% of the Group’s total Customers Gross Profit. The Business is continuing to work
Slide 26: Kogan Energy and Kogan Credit Cards
KOGAN ENERGY AND KOGAN CREDIT CARDS New Verticals launched in 1HFY20 Kogan Energy and Kogan Credit Cards are growing strongly. KOGAN ENERGY CUSTOMERS1 Active Customers Kogan Energy offers competitive power and gas deals and was launched in September 2019 in partnership with part of the Meridian Ener
Slide 27: Kogan Group Net Assets
KOGAN GROUP NET ASSETS A strong balance sheet at 31 December 2020 with $79.0 million of cash post Tranche 1 of the Mighty Ape acquisition in December 2020. $m Dec-20 CURRENT ASSETS Cash 79.0 Cash balance at 31 December 2020 of $79.0 Trade and other receivables 10.6 million with $1.4 million of the G
Slide 28: 1HFY21 Kogan Group Statutory Cash Flow
1HFY21 KOGAN GROUP STATUTORY CASH FLOW $000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 433.8 Payments to suppliers (430.1) Payments to employees (14.1) Interest received 0.0 Finance costs paid (0.1) Income tax paid (12.9) Net cash (used in) operating activities (23.4) The Group sig
Slide 29: Outlook
Outlook kogan.com
Slide 30: Portfolio Business - Market
PORTFOLIO BUSINESS - MARKET Achieved greater than Portfolio Business Partner Launch date Market size 1% market share? Kogan Retail n/a FY06 $29.4 billion1 ✓ Kogan Marketplace n/a Launched FY19 $29.4 billion 1 ✓ Kogan Internet Vodafone Launched 4QFY18 11.6 million premises2 - Kogan Insurance Hollard
Slide 31: 2HFY21 Kogan Group Outlook
2HFY21 KOGAN GROUP OUTLOOK We expect that 2HFY21 will see further growth in Exclusive Brands, enhance and develop Kogan Marketplace and complete the integration of the Mighty Ape team and operations, and further growth in the Group’s Active Customer base. Consistent with prior years, the Company wil
Slide 32: Dividend
DIVIDEND The Board has declared a fully franked interim Dividend of 16.0 cents per share. The Dividend Reinvestment Plan will apply to the interim Dividend at a 2.5% discount to the 5-day volume weighted average price of shares sold on ASX from the trading day prior to the record date. DPS (cents) F
Slide 33: Glossary
GLOSSARY 1HFYxx: the six months ended 31 December 20xx. 2HFYxx: the six months ended 30 June 20xx. 1QFYxx: the three months ended 30 September 20xx. 2QFYxx: the three months ended 31 December 20xx. 3QFYxx: the three months ended 31 March 20xx. 4QFYxx: the three months ended 30 June 20xx. Active Cust
Slide 34: Glossary
GLOSSARY Kogan Life: New Vertical launched in 4QFY18 offering life insurance online. 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, ver
Slide 35: Annexure 1: 1HFY21 Revenue Growth by Portfolio
ANNEXURE 1 1HFY21 REVENUE GROWTH BY PORTFOLIO Revenue growth was driven by Exclusive Brands and Kogan Marketplace. 1HFY20 1HFY21 $m Revenue Revenue YoY Revenue growth % Exclusive Brands 97.2 208.7 114.9% Third-Party Brands 105.8 159.1 50.5% Kogan Marketplace 5.5 13.2 141.0% Mighty Ape1 n/a 20.0 n/a
Slide 36: Annexure 2: Reconciliation to Adjusted EBITDA and Adjusted NPAT
ANNEXURE 2 RECONCILIATION TO KOGAN GROUP ADJUSTED EBITDA AND ADJUSTED NPAT COVID-19 COVID-19 Mighty Ape Mighty Ape Unrealised FX Equity-based related stock related purchase - purchase - Unadjusted gain/(loss) compensation Donations provision logistics costs Tranches 3&4 transaction costs Adjusted Re