Kogan com : 1HFY22 Results Presentation

onlyuse

personal1HFY22 RESULTS PRESENTATION

25 February 2022

r

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.

onlyImportant notice and disclaimer: This Presentation contains a general summary of the activities of Kogan.com Ltd (the Company; the Business; Kogan.com; the Group), does not purport to be complete and is to be read in conjunction with all other announcements filed with the Australian Securities Exchange (ASX), including Kogan.com's ha f-year results filed with the ASX on 25 February 2022. Information in this Presentation is current as at the date of this Presentation 25 February 2022 and remains subject to change without notice. Financial information in this Presentation is unaudited. Kogan.com does not warrant the accuracy, adequacy or reliability of the information in this Presentation and, to the maximum extent permitted by law, disclaims all liability and responsibility flowing from the use of or reliance on such information by any person.

N t an offer or financial product advice: This Presentation is not investment or financial product advice or any recommendation (nor tax, accounting or legal advice) and is not intended to be used as the basis for making an investment decision. In providing this document, Kogan.com has not considered the objectives, financial position or needs of any particular recipients. Each recipient should consult with its professional adviser(s), conduct its own investigation and perform its own analysis in order to satisfy themselves of the accuracy and completeness of the information, statements and opinions contained in this document. This Presentation does not constitute an offer to issue or sell

uses curities or other financial products in any jurisdiction. The distribution of this Presentation outside Australia may be restricted by law.

Forward looking statements: This Presentation contains forward looking statements and comments about future events, which reflect Kogan.com's intent, belief or expectation as at the date of this Presentation. Such forward looking statements may include forecast financial and operating information about Kogan.com, its projects and trategies and statements about the industries and locations in which Kogan.com operates. Forward looking statements can be identified by forward-looking terminology including, without limitation, "expect", "anticipate", "likely", "intend", "should", "could", "may", "predict", "plan", "propose", "will", "believe", "forecast", "estimate", "target",

"d e to", "goal", "aim" and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance or outlook on, future earnings or financial position or performance are also forward looking statements. Forward looking statements involve inherent known and unknown risks, uncertainties and contingencies, both general and specific, many of which are beyond Kogan.com's control, and there is a risk that such predictions, forecasts, projections and other forward ooking statements will not be achieved. Actual results may be materially different from those expressed or implied. Forward looking statements are provided as a general guide only and should not be relied on as an indication, representation or guarantee of future performance. Undue reliance should not be placed on any forward looking st tement. Kogan.com does not undertake to update or review any forward looking statements.

Past performance: Past performance should not be relied upon as (and is not) an indication or guarantee of Kogan.com's future performance or condition.

Financial data: All financial amounts contained in this Presentation are expressed in Australian currency, unless otherwise stated. Any discrepancies between totals and sums f components in tables and figures contained in this Presentation are due to rounding.

Non-IFRS measures: Throughout this Presentation, Kogan.com has included certain non-IFRS financial information, including EBITDA, Adjusted EBITDA, Adjusted NPAT, Adjusted EPS and Gross Sales. Kogan.com believes that these non-IFRS financial and operating measures provide useful information to recipients for measuring the underlying operating performance of Kogan.com's business. Non-IFRS measures have not been subject to audit or review.

personal

r

2

r personal use only

CEO Update

Ruslan Kogan

Founder, CEO and Executive Director

3

1HFY22 KOGAN GROUP HIGHLIGHTS

Relentlessly pursuing more choice, value and faster delivery for our customers.

only	FINANCIAL PERFORMANCE	● Gross Sales1 of $698.0m outperformed 1HFY21 by 9.4%, with a CAGR2 of 46.9% since 1HFY20
● Revenue3 of $419.5m outperformed 1HFY21 by 1.3%, with a CAGR of 38.2% since 1HFY20
		● Gross Profit was $108.1m, Adjusted EBITDA4 was $17.4m, Adjusted NPAT4 was $4.8m, Adjusted EPS4 was $0.04
		per Share
		● Statutory NPAT5 of $(11.9)m and statutory EPS5 of $(0.11) per Share were materially impacted by the continuing
		supply chain interruptions as a result of the current COVID situation and associated surges in customer demand
		● Other income6 of $5.1m relates to the proceeds from the sale of an intangible asset
		● A significant investment in Kogan First and technology to scale the platform have impacted Operating Costs,
use		EBITDA, NPAT and EPS in the period but are expected to have long-term benefits for the Business
	● The Group had a strong operating cash inflow of $61.7m and net cash (total cash less drawn debt) of $39.7m,
	after funding A$29.9m Might Ape Tranche 2 payment during the half
	PLATFORM GROWTH	● Over 4m Kogan Group Active Customers
	● Kogan.com Active Customers grew 10.4% YoY to 3,314,000 as at 31 December 2021
personalr		● Mighty Ape had 757,000 Active Customers as at 31 December 2021
STRONG PERFORMANCE	● Kogan Marketplace Gross Sales grew by 28.7% in 1HFY22 YoY with a CAGR of 94.6% since 1HFY20
	● Exclusive Brands Revenue of $185.3m declined 11.2% YoY with a CAGR of 38.1% since 1HFY20
	FROM KEY INITIATIVES
	● Kogan First loyalty program grew 176.4% YoY to over 274,000 subscribers7 as at 31 December 2021
		● Kogan Delivery Services delivered over 150,000 customer orders to date since launching late FY21
	SUCCESSFUL INTEGRATION	● The integration of Mighty Ape is progressing well with the Business recording Revenue of $93.8m8, Gross Profit of
	$21.6m8 and Adjusted EBITDA of $7.1m8 for the six months to 31 December 2021
1. Gross Sales is a key metric of the Business, given that gross transaction values of Kogan Marketplace, Kogan Mobile and other New Verticals are not reflected in Revenue.
2. The Company believes that the Compound Annual Growth Rate (CAGR) between 1HFY20 and 1HFY22 is a useful metric to consider the underlying growth of the Business, given the volatility over the COVID period.
3. The differential between Revenue and Gross Sales is reflective of Kogan Marketplace and New Verticals recognising only seller fee or commission-based Revenue while the gross transaction values are recognised within Gross Sales.
4.	Measures the underlying performance of the Business, removing non-cash items including unrealised FX gain/ (loss), equity-based compensation and one-offnon-recurring items from the sale of the bitbuy.com domain. Post the unaudited January 2022 Business Update released on the ASX on 27 January 2022, the
	proceeds from the sale of the bitbuy.com domain has been reclassified to Other Income and removed from Adjusted EBITDA. Refer to Annexure 2 of the Results Presentation for a detailed reconciliation of adjusting items.
5. Given the various adjustments (including provision for the likely payment of Mighty Ape Tranche purchase price instalments and equity-based compensation) the Company believes the percentage change from prior periods may not be a useful metric of business performance.
6.	For full details of the transaction, refer to the ASX release 'Domain sale re Bitbuy' on 14 December 2021. Post the unaudited January 2022 Business Update released on the ASX on 27 January 2022, the proceeds from the sale of the bitbuy.com domain has been reclassified to Other Income and removed from	4
	Adjusted EBITDA. Refer to Annexure 2 of this Presentation for a detailed reconciliation of adjusting items.

7. Kogan First Subscribers excludes Kogan First customers who are in a trial period, and includes only non-trial subscribers. 8. Values stated in AUD using the AU/NZ average rate from 1 July 2021 to 31 December 2021 of 0.9537.

1HFY22 KOGAN GROUP RESULTS

Another record half for Gross Sales and Revenue as more customers turned to Kogan.com, while trading conditions impacted profitability.

					1HFY21 vs 1HFY22		1HFY20 vs 1HFY22
	$m	1HFY20	1HFY211	1HFY22	Mvmt (%)		CAGR (%)
	Gross Sales2	323.4	638.2	698.0	9.4%	▲	46.9%	▲
onlyRevenue	219.5	414.0	419.5	1.3%	▲	38.2%	▲
use	Gross Profit3	49.9	117.6	108.1	(8.1)%	▲	47.1%	▲
Gross Margin	22.7%	28.4%	25.8%	-2.6pp/-9.3%	▲	6.4%	▲
	Other Income	0.0	0.0	5.1	100.0%	▲	100.0%	▲
personalr	EBITDA	16.7	38.8	(2.0)
Adjusted EBITDA	18.2	51.7	17.4	(66.4%)	▲	(2.3%)	▲
	NPAT	8.9	23.6	(11.9)
	Adjusted NPAT4	10.0	33.4	4.8	(85.6%)	▲	(30.6%)	▲
	EPS	0.10	0.22	(0.11)
	Adjusted EPS4	0.11	0.32	0.04	(85.8%)	▲	(34.9%)	▲

1.	Mighty Ape was purchased in December 2020. As such, Mighty Ape results for the 1HFY21 reflect only one month of performance, being December 2020.
2.	Gross Sales relating to 1HFY20 have been restated to include Kogan Energy Gross Sales. Kogan Energy launched in September 2019, Gross Sales data has historically been unavailable.
3.	Gross Profit relating to 1HFY21 has been restated to include inventory related items originally recorded as 'Other Costs' in the Profit & Loss Statement released on 26 February 2021. This was reflected in the FY21 audited Financial Statements and noted in the AGM Presentation, released on the ASX on 25 November
	2021. The restatement had no impact to Revenue, EBITDA, Adjusted EBITDA or Net Profit After Tax for 1HFY21.	5
4.	1HFY20 and 1HFY21 Adjusted NPAT and Adjusted EPS have been restated to include the Income Tax Expense impact of the adjusting items that are temporary differences for tax purposes.