DW8 Growth, page-7091

Here are my notes from the webinar.

Direct to export to be added to the platform. Export market worth $3B.

Increasing scale by getting all suppliers volumes together = better pricing.

Logistics volume breaks – continue to increase volume & pass on savings as costs reduce. Logistics margin 25%.

Revenue model - 5 streams vertically integrated. Some customers use only some streams & others use all.

Logistics is an excellent market fit thus the rapid take up rate. Premium, efficient & more cost effective product relative to competitors = moat.

Revenue growth to accelerate with the addition of the additional revenue streams.

Overnight can become the go to for products globally from Australia & NZ when enabled. Total australian wine market $40B. Trade $5-10B depending on sources. DTC has grown from $1B to $1.5B based on industry figures & has had massive growth.

No marketing activities or DTC sales on behalf of suppliers to date. All logistics is via the suppliers own website and/or cellar door. Will commence when DTC launched.

DTC planned to be launched within the next couple of months. Focus is on B2B Market.

2,500 Australian wineries + 500 NZ wineries = 3,000 x 2 brands each on average = 6,000 brands x 75-80% TARGET = 4,500-4,800. Currently have over 500. Most will want to use B2B Market. B2B & DTC will increase customer numbers.

Churn is negligible. There have been a handful of customers leaving & some have now returned for B2B Market. Some customers are seasonal & they come & go.

Mainly smaller players joined to date. Is ideal as trade wants diversity as they are not interested in large brands they can purchase anywhere.

Break even plan - last CR was enough cashflow to achive break even. No time frame but growth can be accelerated by acquisition & large player coming on board. (Should be similar to the numbers I previously posted)

Big player can result in break even overnight. Takes loner time frame for big players to make decisions & join. (ie. something is in the pipeline)

B2B Market has high profit margin 80-85% (near my calculations of 78.7%). Cashflow from profits to be used for funding new ventures & global expansion.

Main focus is on growing market share as currently the only ones in the market. Grow market share fast & create a moat prior to competitors entering the market. Growing market share has priority over break even at this stage.

Launching B2B market slowly as doesn't want to be greedy & break the system in turn losing face with customers. Will roll it out gradually as previously mentioned.

When asked what do you think of SP? Markets are the markets no control. Was an over reaction. SP will get back to where it deserves to be. He seemed a bit pissed off at the sell off & market thinking they slowed down.

Also mentioned shareholders have grown from 500 initially to about 10,500. In January 2021 there were about 5,000 so it doubled. Mentioned some day traders & people that don't fully understand the business selling out. No Top 20 shareholders were selling & no long term holders as it was mainly smaller short term holders selling.

Covered quite a bit in 30 minutes. Main things are growing market share fast to 75-80% & B2B has a lot of fat with 80-85% margin that will fund new ventures.