INV NVESTOR OR PRESENT NTATION ON Mo Morgans Te Technology gy Confe fere rence – Sy Sydney - 18 May 201 017 Pr Prese sented by Chris s Nu Nunn (R (Redbub ubble Limited Chief f Fi Finan ancial al Of Officer)
AGENDA 1 Ab About t Redbubble 2 Healthy marketplace He 3 Hi Historical top op-li line grow rowth 4 Customer acquisition Cu 5 The opportun Th unity 6 Gr Growth the themes and nd ini niti tiati tives 7 Fi Financials 8 Wrap up Wr 2
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Redbubble Video This is Redbubble 4 1. 1. Li Link nk to Vi Video: : ht https :// vi vimeo.com /195555159
A RECAP ON THE RB STORY A THREE-SIDED MARKETPLACE, FOUNDED IN 2006 AND LISTED IN MAY 2016 ARTISTS CUSTOMERS CONTENT 600,000+ (as of Q3 FY2017) 2.9M 1 11.5M 2 (FY2017) (as of Q3 FY2017) 3 rd PARTY FULFILLERS 1. 1. Q4 FY201 Q4 017 has been projected fr from actuals through Q3 FY201 017 15 FULFILLERS (23 locations), 62 PRODUCTS 2. 2. Published artists net of removals: Source: Redbubble internal data Pu 5
COMPANY SNAPSHOT: Redbubble Limited (ASX:RBL) A s a t 1 6 M a y 2 0 1 7 Sha Shareho holders: Capital Structure: Ca Board &Management: 33.6% Share Price (16 May 2017): $0. 0.83 Top 20: 75.3% Fully Paid Ordinary Shares: 206 06.2 million Acorn Capital (pre-IPO investor): 6.2% Market Capitalisation: $17 171.1 1.1 million illion Simon Baker (ex-director): 6.1% Issue Price (17 May 2017): $1.3 1.33 Blackbird Ventures (pre-IPO investor): 5.5% Net Cash (31 March 2017): $3 $31.9mi million Osmium Partners (recent investor): 5.1% Sha Share Price Vo Volume Bo Board and Management: $1.60 2.5 Mr Richard Cawsey: Non-executive Chairman Millions $1.40 Mr Martin Hosking: CEO and Managing Director 2.0 $1.20 Ms Teresa Engelhard:Non-executive Director $1.00 Mr Greg Lockwood: Non-executive Director 1.5 $0.80 Mr Grant Murdoch: Non-executive Director 1.0 $0.60 Dr Hugh Williams: Non-executive Director $0.40 0.5 $0.20 Mr Barry Newstead: Chief Operating Officer Mr Chris Nunn: Chief Financial Officer $0.00 0.0 6
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THE R B MARKETPLACE IS SCALING RAPIDLY CONSISTENT GROWTH IN CUSTOMERS, ARTISTS AND FULFILLERS New and Repeat Customers Selling Artists Fulfillers 280 16 # of Artists (,000) Fulfillers 3.0 # Customers (Millions) 14 240 Repeat 2.5 12 New 200 2.0 10 160 8 1.5 120 6 1.0 80 4 0.5 40 2 0.0 0 0 FY13 FY14 FY15 FY16 FY17* FY13 FY14 FY15 FY16 FY17* FY13 FY14 FY15 FY16 FY17* S US T A INA B L E , D iv e r s e , L a r g e a nd G r ow ing L OW C OST A R T IST C OMMUNIT Y L oc a l ise d ma nuf a c t ur ing c ust om e r b a s e 8 * Q4 FY201 017 has been projected based on actuals through Q3 FY201 017
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R B HAS HAD STRONG TOP-LINE GROWTH GTV GROWTH DRIVEN BY VISITS AND CONVERSION RATE IMPROVEMENTS Gross Transaction Value Visits and Conversion $AUD Millions $200 200 2.5% Conversion Rate (%) # Visits (Millions) $160 160 2.0% $120 120 1.5% Repeat GTV $80 80 1.0% First Time GTV $40 Visits 40 0.5% CVR $0 FY13 FY14 FY15 FY16 FY17* 0 0.0% YoY ✝ 122.1% 55.9% 38.1% 47.5% 32.0% FY13 FY14 FY15 FY16 FY17 * * FY17 pr projection ba based d on mid-po point of Apr pril 17 reaffirmed d guida dance Q4 Q4 FY201 017 CV CVR R an and Visits has as be been pr projected d 10 ✝ Yo YoY Y gro rowth ra rates are re based on con onstant currency exchange rates to o based on actuals through Q3 FY201 017 eliminate el e ex exogen enous FX spikes es
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GROWS STRONGLY WITH LOW CUSTOMER ACQUISITION COSTS W I T H A L L P A I D C H A N N E L S P R O F I T A B L E O N F I R S T P U R C H A S E FY2017 YTD TRAFFI FY FFIC 4 2 % - Paid 5 8 % - Free 10% 32% 8% 8% 6% 36% Paid Social Paid Search and Other Other Free Email Direct Organic Search 1. Organic Search = traffic to the site originating from search click through that we do not pay for 2. Direct = Traffic coming directly to the RB homepage 3. Paid = Traffic from sources we pay for (Google ads, Facebook ads, etc.) 4. Data complete through Q3 FY 2017 12 Source: Redbubble internal data
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SUSTAINABLE GROWTH NOT SUBJECT TO A MARKET CEILING E S T I M A T E D A D D R E S S A B L E M A R K E T I N E X C E S S O F U S $ 6 0 B I L L I O N Esti timate ated ad addressab able mar arket 1 70 Market Size (US$B) Global online market: Gl 60 Apparel = US$81B 50 Homewares 2 = US$131B 42 40 Both of these large online 64 30 markets expected to grow at between 10 and 20 10 14% per annum through $22B 10 to 2020 Existing markets 12 0 US/UK/Au Europe ROW Total 1. Redbubble analysis of the total market of customers seeking creative expression on lifestyle products (apparel, electronic accessories, homewares and stationery) 2. Homewares = furniture and household goods such as kitchen and bathroom accessories, textile furnishings, office supplies and stationery 14 Sources: eMarketer, McKinsey and Company, ATKearney, Redbubble analysis
HUGE CONTENT LIBRARY & PRODUCTS PROVIDE INCREASING LEVERAGE ~ 6 0 % O F S A L E S A R E F R O M E N D U R I N G C O N T E N T Items and Works Sold 4.0 # (Millions) 3.75M Unique items sold Diversifying the range of items broadens potential customer base 3.0 Increasing leverage from Content library can be instantly new products applied to new products 2.0 1.16M Unique works sold Content is a mix of enduring (~60%) 1.0 and new/trending (~40%) 0.0 FY12 FY13 FY14 FY15 FY16 Source: Redbubble internal data 15 A Product is a combination of physical product and artist work, a work is simply a single artist image
PRODUCTION IS LOCALISED IN OUR PRIMARY MARKETS W I T H G A I N S I N M A R G I N , C O N V E R S I O N A N D C U S T O M E R E X P E R I E N C E Localisation of production has R E R E D U C E D G G L O B A L A A V E R A R A G E D E L I V E R Y T I M E D E by a full day in the last 12 months, resulting in: M A M A R G I N I M P M P R O V E M E M E N T T via reduction of shipping charges C O C O N V E R S I O N U P L I F T from improved delivery times N P S G N P G A I N S N S from better service experience 23 62 6 S Y S Y S T S T E M I C R E D U N D A N A N C Y F U L F I F U F I L M E N T P R P R O D U C T S C O U N T R I E S C O against fulfiller failure C E N T E R S C E 16 Source: Redbubble internal data
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4 BIG THEMES FOR CY2017 S T A Y F O C U S E D O N S T R E N G T H E N I N G M A R K E T P L A C E D Y N A M I C S E n h a n c i n g a b i l i t y T O F I N D Y O U R T H I N G E f f i c i e n t to enrich experiences G L O B A L A C Q U I S I T I O N Personalised content recommendations of new customers & artists Content discovery journey ü Increase leverage of content library Content partnerships into paid channels (search, Facebook) Improvements in organic acquisition (social, search) D e v e l o p i n g D E E P E R R E L A T I O N S H I P S with our customers E n h a n c i n g Mobile app for rich, habitual ü S C A L A B I L I T Y browsing experience across the business Upgrading account creation to enable personalisation ü EBITDA improvements of up to $3 million p.a. from operational efficiencies Faster core platform – critical for mobile experience 18
WITH A FINAL OBJECTIVE FOR CUSTOMERS More buyers acquired more profitably Seeing ever more content from more artists & partners With a personalised mobile discovery & shopping experience for all visitors Forming a mobile habit resulting in more orders from more loyal customers Supported by best-in-class site speed … Attracting more artists, generating more content to sell to more customers 19
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UNIQUE R B BUSINESS MODEL INSIGN IN SIGNIF IFICA ICANT CA CAPITA ITAL IN INVESTM TMENT (P T (PP&E) No Inv No nvent ntory ry Ri Risk No No distri ribu bution n costs Po Positi tive working capi pita tal cycle No ware No reho housing ng costs 21
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