16 NOVEMBER 2018 - 61 Financial · compelling short-term plan promotions during the period •...
Transcript of 16 NOVEMBER 2018 - 61 Financial · compelling short-term plan promotions during the period •...
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16 NOVEMBER 2018
2018 ANNUAL GENERAL MEETING
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Greg RidderIndependent,
Non-Executive Chairman
Ruslan KoganFounder & CEO
David ShaferCFO & COO
Harry DebneyIndependent,
Non-Executive Director
YOUR BOARD
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CHAIRMAN’S ADDRESS
Greg Ridder, Chairman
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$412.3mrevenue
$14.1mNPAT
$26.0mEBITDA
13.0 cpsTotal Dividends
42.4% on FY17
110.4% on FY17 Pro Forma
108.0% on FY17 Pro Forma
FY18 RESULTS
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CEO’S PRESENTATION
Ruslan Kogan, Founder & CEO
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STRATEGY DRIVEN RESULTS
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REVENUE GROSS PROFIT EBITDA1
Notes:1. The FY17 Pro Forma results represent the results of the business after removing the impact of transaction costs relating to the IPO, as set out in Annexure 3 of the FY17 Results Presentation (released to ASX on 18 August 2017). The impact of mark-to-market on unrealised foreign exchange contracts has not been removed from EBITDA in FY17, which is consistent with the treatment in FY18. The FY16 Pro Forma results are consistent with the FY16 Investor Presentation (released to ASX on 23 August 2016).
$m $m $m
FY16 Pro FormaFY16
Pro FormaFY17 FY18FY16
211.2
4.0
32.7
289.512.5
51.7
412.326.080.6
FY17 FY17FY18 FY18150.0 --
200.0 5.0
10.0
250.0 10.0
20.0
300.0 15.0
30.0
350.020.0
40.0
70.0
400.025.0
50.0
80.0
450.0
60.0
90.0
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GROWTH DRIVERS
Expansion of product offering
Portfolio Strategy
Investment in Brand
Operating Leverage
YoY revenue growth of 40.5% from Product Divisions
Kogan Mobile gross profit of $12.0 million FY17: $3.6 million
YoY Active Customer growth in FY18of 45.3%1, NPS2 of 58.8
EBITDA Margin ▲ 2.0pp to 6.3%
Notes:1. Active Customers: unique customers who have purchased in the last twelve months from 30 June 2017.2. NPS: Net Promoter Score (NPS) is calculated based on answers to the question, “How likely is it that you would recommend Kogan.com to a friend or colleague?” Kogan.com measures its NPS as the percentage of customers who are “promoters” rating its products and services 9 or 10 out of a possible 10, less the percentage of ”detractors”, rating its products and services 0 to 6 out of a possible 10. The maximum possible NPS is 100, and the minimum possible NPS is -100.
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PORTFOLIO STRATEGY
1,467,000Active Customers
Additional Channels
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2018 FOCUS
Notes:1. Australia Post estimates that the Australians spent $21.3 billion buying goods online in 2017: https://auspost.com.au/content/dam/auspost_corp/media/documents/2018-ecommerce-industry-paper-inside-australian-online-shopping.pdf2. Source: NBN Corporate Plan 2017 and NBN Weekly Progress Report (8 June 2017)3. Source: KPMG General Insurance Industry Review 2017 – Gross Written Premiums4. Source: IBISWorld Health Insurance – Australia Market Research Report November 20175. Source: IBISWorld Life Insurance - Australia Market Research Report October 20176. Source: Canstar - www.canstar.com.au/pet-insurance/how-much-do-we-spend-on-our-pets/7. Source: https://www.statista.com/statistics/274677/forecast-of-mobile-phone-users-inaustralia/8. Source: http://archive.stats.govt.nz/browse_for_stats/industry_sectors/information_technology_and_communications/isp-2017-mobile-connections-story.aspx9. Source: https://www.ibisworld.com.au/industry-trends/market-research-reports/thematic-reports/mortgages.html10. Source: https://www.superannuation.asn.au/ArticleDocuments/269/SuperStats-Jun2018.pdf.aspx
PORTFOLIO BUSINESS - MARKETPortfolio Business Partner Launch date Market size Achieved greater than
1% market share?
Kogan Retail
Kogan Internet
Kogan Insurance
Kogan Health
Kogan Life
Kogan Pet
Kogan Mobile
Kogan Mobile NZ
Kogan Money Home Loans
Kogan Money Super
n/a
Vodafone
Hollard
Medibank
Greenstone
PetSure
Vodafone
Vodafone
Pepper & Adelaide Bank
Mercer
FY06
Launched 4QFY18
Launched 1QFY18
Launched 3QFY18
Launched 4QFY18
Launched 4QFY18
Launched 2QFY16
FY19
FY19
FY19
$21.3 billion1
10.9m premises2
$43.0 billion3
$26.0 billion4
$66.0 billion5
$490 million6
19.7m users7
3.8m users8
84.0 billion9
28.6 million accounts10
✓
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-
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✓
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Kogan TVs won the Televisions 2018 ValueFor Money Award
Back to back winner of the People’s Choice Award at theAustralia Post Online Retail Industry Awards (ORIAS)
Kogan has received various awards and recognition in FY18.
SOME RECENT AWARDS
“Aussie brand Kogan was the onlytelevision brand to achieve a five-star
review for value for money”
“Kogan brand steam mops were voted the best overall, receiving 5 out of 5
stars across most categories”
Kogan Steam Mops won the 2017 Most SatisfiedCustomers Award
Over 1,100 Retailers were considered and over 240,000 Australian consumers voted
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CURRENT TRADING - REVENUE AND MARGINOctober Active Customers of 1,467,000 at 31 October 2018, representing a YoY increase of 37.9%.
YEAR-ON-YEAR REVENUE GROWTH DURING YTD19
Revenue• Exclusive Brand growth accelerated in October, following receipt of
inventory in the lead up to Christmas• Partner Brand growth continues to improve, as new brands are
on-boarded and existing relationships are strengthened• Global Brands continues to decline, as foreign websites continue to evade
GST while increasing their marketing efforts to win market share
Gross margin• YoY gross margin declined in the quarter to September, however margin
in October has seen an improvement above the September quarter and above October 2017
OctoberJuly - September
Exclusive Brands growth
Global Brands growth
Partner Brands growth
Total revenue growth
38.0%
-48.4%
84.1%
12.1%
15.7%
-27.4%
73.0%
9.6%
0
200
400
600
800
1,000
1,200
1,400
1,600
Jun-
16
Sep-
16
Dec
-16
Mar
-17
Jun-
17
Sep-
17
Dec
-17
Mar
-18
Jun-
18
Sep-
18
Oct
-18
ACTIVE CUSTOMERS
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CURRENT TRADING - NEW VERTICALSKogan Mobile Active Customers continue to grow. Kogan Internet and Kogan Insurance are growing progressively.
KOGAN INTERNET - ACTIVE CUSTOMERS
KOGAN INSURANCE1 – QUARTERLY GROSS WRITTEN PREMIUMS
KOGAN MOBILE AUSTRALIA - ACTIVE CUSTOMERS
Kogan Mobile• Active Customers continue to grow, as a result of the strength of the
Kogan brand, and strong commercial relationship with Vodafone driving compelling short-term plan promotions during the period
• Global roaming is expected to launch in 1HFY19• Commissions are expected to benefit from long-term plan promotions
commencing in the lead up to Christmas
200
400
600
800
1,000
1,200
1,400
1,600
0
GW
P (
$)
2QFY
18
3QFY
18
4Q
FY18
1QFY
19
Notes:1. Kogan Insurance includes General, Pet, Life & Health insurances.2. This represents one month, rather than a full quarter.
Apr
-18
May
-18
Jun-
18
Jul-1
8
Aug
-18
Sep-
18
Oct
-18
2QFY
16
3QFY
16
4Q
FY16
1QFY
17
2QFY
17
3QFY
17
4Q
FY17
1QFY
18
2QFY
18
3QFY
18
4Q
FY18
1QFY
19
Oct
-182
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CURRENT TRADING - OVERHEADS
Overheads• Marketing Costs have increased above growth in revenue year-on-year primarily as a result of a decline in competitiveness of Global Brand products due
to GST evasion from foreign websites. The Company is taking steps to reduce some wastage, and to improve the ROI on marketing.• Variable Costs increased significantly year-on-year in the September quarter, driven by the Company’s expanding warehousing footprint, but
year-on-year growth in these costs reduced in October.• People Costs and Other Costs have also grown faster than the growth in revenue, and the Company is reviewing certain areas of expenditure that may
be reduced, and certain staff reassigned, given the changing trading conditions in the Global Brands Product Division.• As at 31 October 2018, there is a positive P&L impact of ~$0.8 million in relation to unrealised foreign exchange gains, which has not been reflected in any
of the above commentary or results.
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Resolutions
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ORDINARY BUSINESS
ITEM 1
The first item of business is to receive and consider the Annual Financial Report together with the Directors’ and Auditor’s Reports for the period ended 30 June 2018.
FINANCIAL STATEMENTS & REPORTS
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ORDINARY BUSINESS
ITEM 2 ADOPTION OF REMUNERATION REPORT
To consider and if thought fit pass the following resolution as an ordinary resolution:
“That the Company adopt the Remuneration Report for the year ended 30 June 2018 in accordance with Section 250R (2) of the Corporations Act.”
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ITEM 2 ADOPTION OF REMUNERATION REPORT
PROXY VOTING RESULTS
Number %2
For
Open - Nominated Chair1
Against
- Other nomination
Abstain
Notes:1. To be voted in favour of the resolution2. Of proxies cast
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22,900,284
123,238
96.51
0.52
660,740
44,480
1,038,721
2.78
0.19
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ORDINARY BUSINESS
ITEM 3
To consider and if thought fit pass the following resolution as an ordinary resolution:
“That David Shafer, who retires in accordance with the Company’s Constitution and, being eligible, be re-elected as a Director of the Company.”
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RE-ELECTION OF DIRECTOR – DAVID SHAFER
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ITEM 3
PROXY VOTING RESULTS
Number %2
For
Open - Nominated Chair1
Against
- Other nomination
Abstain
Notes:1. To be voted in favour of the resolution2. Of proxies cast
19
RE-ELECTION OF DIRECTOR – DAVID SHAFER
48,612,043
123,957
82.36
0.21
10,242,261
44,480
73,921
17.35
0.08
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ORDINARY BUSINESS
ITEM 4
To consider and if thought fit pass the following resolution as an ordinary resolution:
“That for the purposes of Listing Rule 7.2 Exception 9(b) and for all other purposes, the Employee Incentive Plan is renewed for a period of three years from the date of this Meeting.”
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RENEWAL OF EQUITY INCENTIVE PLAN
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ITEM 4
PROXY VOTING RESULTS
Number %2
For
Open - Nominated Chair1
Against
- Other nomination
Abstain
Notes:1. To be voted in favour of the resolution2. Of proxies cast
21
RENEWAL OF EQUITY INCENTIVE PLAN
23,530,362
117,138
96.17
0.48
775,473
44,480
516,060
3.17
0.18
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