Ann: Appendix 4C - quarterly and business update, page-2

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ASX ANNOUNCEMENT 16 January 2017 Kogan.com quarterly Cash Flow Statement and Business Update Kogan.com Limited (Kogan.com; ASX:KGN), Australia’s leading pure-play online retail website, today released its Appendix 4C Cash Flow Statement for the quarter ending 31 December 2016 (2Q17). The Company ended 2Q17 with cash of $26.5m. Assessing management accounts of performance in 2Q17, Kogan.com is pleased to advise:  it exceeded expectations for November and December trading against the budget for those months in the revised pro-forma EBITDA guidance of between $8.0m – $9.0m for FY17 as outlined at the Company’s AGM in November 2016 (on a full year basis only)  it has exceeded the full year FY17 Prospectus forecast pro-forma EBITDA of $6.9m1 during the first half of FY17  the Company’s level of inventories: o as at 31 December 2016 was $41.83m, comprising $32.27m stock in warehouse and $9.56m stock in transit, whereas o as at 30 September 2016 was $28.28m, comprising $18.10m stock in warehouse and $10.18m stock in transit  almost 90% of stock in warehouse as at 31 December 2016 was received during 2Q17 indicating strong turnover of inventory Kogan.com Founder & CEO Ruslan Kogan said the Company is pleased with the strong performance in 2Q17 combined with the healthy inventory level of recently received stock following the deployment of IPO proceeds into inventory as set out in the Prospectus. “We are pleased to deliver cashflows that demonstrate better than forecast operating results for Kogan.com’s second quarter of trading as a listed company. This has led to the Company exceeding its full year FY17 Prospectus forecast pro-forma EBITDA of $6.9m in two quarters of trading. With a healthy cash balance and the Company’s best ever level of quality inventory, we believe Kogan.com is well placed to continue the strong momentum generated in the first half. “The benefits of our investment in inventory are demonstrated by the strong trading performance and margin improvement in 2Q17. The release of capital constraints has allowed the Company to operate with desired inventory levels of brand new in-demand private label stock. More importantly, Christmas trading demonstrated strong demand for new products and this has continued post Christmas. The team is also pleased to see the investment in systems, architecture and automation made in the years leading up to our IPO delivering positive results as we start to scale the business. “While the Company’s earnings performance to date is exceeding expectations of guidance which was revised upwards at the Company’s AGM, the Board is mindful that a half-yearly review is being undertaken by the auditor. The Board is closely monitoring ongoing trading performance, and will consider if a further update to the Company’s outlook is required at the conclusion of the auditor’s half yearly review”. ENDS For further information please contact: Lauren Thompson +61 438 954 729