Articore Group Limited

Thank you for standing by and welcome to the Redbubble Limited Investor and Analyst Conference Call, Q3 FY 2020 results. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the start key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Paul Gordon, Company Secretary. Please go ahead.

Good morning everyone here in Australia and good afternoon to our US investors. I'm Paul Gordon, Company Secretary for Redbubble Group. Welcome to this investor call in relation to Redbubble Group's third quarter FY 2020 business updates. With me on the line I have Redbubble Group Interim CEO Martin Hosking and CFO Emma Clarke. The key information for today's update is in the ASX announcement and supporting slides released to the market this morning. Please note that the financial information in the release documents and in the upcoming call are from internal management reports and have not been subject to audit. Martin and Emma will now speak, and then we will open up the floor for questions. This session is also being recorded. Now, before we start, I would like to call your attention to the Safe Harvest Statement regarding forward-looking information in our ASX release. That Safe Harvest Statement also applies to this investor call. Now I will pass on to Martin.

Thank you, Paul. Hello again, everyone. I hope you're all staying healthy and well. Across all four offices, our employees have continued to work from home and I want to thank each of them for their dedication and commitment during this time. I also want to thank our artists for the incredible talent and creativity that they are sharing. and making a meaningful contribution to our society during this challenging period of human history. Thanks also to our many partners in licensing, fulfillment and shipping who are going above and beyond. I'm pleased to say that the grid's business operations and supply chain continues to operate normally. This is a testament to the robustness of the supply model and the diversification benefits flying from localization. We are watching the external situation closely contingencies have been reinforced into your continuity of supply. Amidst the uncertainties of COVID-19, I'm pleased that we were able to deliver top line growth to the group of 25% in years to date. The third quarter started strongly and then we saw the impact of the coronavirus on consumer sentiment. Towards the end of March, sales were rebounding at Redbubble and TeePublic along with much of online retail. The net of all of this was a good result of 20% top-line growth in the third quarter. We have seen external positive trends continue into the month of April. Both marketplaces have shown strength as consumers have moved more online. Other Group employees have demonstrated that they can work effectively from home and deliver against important strategic and tactical priorities. The Group's generally low price point and differentiated offering is proving to be attractive to consumers. This is so during the COVID-19 crisis and also positions us well for the likely recession. Then we'll discuss the trading performance in more depth and we'll also talk about the initiatives that we undertook within the business to ensure we are responding to current consumer behaviour and capturing opportunities While we are relatively well positioned for the immediate situation, it is also important to continue to invest to emerge strongly. In particular, we are adapting learnings from TeePublic to Redbubble. We are seeing impact in a range of areas including user acquisition and SEO. Learnings in paid marketing are also being shared across the Group, with both marketplaces experiencing improved marketing efficiency. Redbubble's strong presence in Europe and supply chain optimisation is being leveraged by both marketplaces. The business is recommitting to the artists as the prime instigators in the marketplace. Both marketplaces have always recognised the centrality of the artists to creating value, and we're now moving towards making this a shared group activity. This involves leveraging the expertise and systems found in TeePublic, as well as proprietary technology built in Redbubble, in particular the IP Protect tool. We want to ensure as a group that we identify the artists who are creating legitimate and sellable content and serving them with relentless determination. This orientation is expected to provide immediate returns and long-term impact. It is then foundational to good consumer marketing, search engine optimisation and brand building. For the next few months, establishing solid systems for artist acquisition, retention and tech activation will be a key priority. In addition, the group will be progressing work in user acquisition and improving the customer experience. All these activities have an impact on short-term growth and position us well in a recessionary environment and beyond. We, of course, also need to resource activities with medium and longer-term impact because they are critical to our maintaining and extending global leadership. The IP Group will expand product range which delivers both immediate and longer-term benefits. benefits. We will continue to grow our content partnerships and licensed fan-out segment. This is increasingly a group activity with strong longer-term potential. In addition to our work to improve customer loyalty and develop solid brand propositions is underway. This activity is a strong counterpart to work on transactional customer improvements. It's a good first experience of foundation for good second and later experiences. In certain segments e.g. US College campuses, Redbubble has a good customer brand proposition. It's committed to finding more such segments and building brand loyalty for both marketplaces. Finally, I'd like to welcome Ben Heath as the new independent non-executive director to the Redbubble board. Ben is an experienced and professional director with a portfolio of roles, including at the Sky Entertainment Group and Colonial First State Investments. He brings to Redbubble extensive expertise and experience in a range of sectors including retail, technology, asset management and venture capital. We're pleased to have such a high-colour appointment to the board. Now over to Emma.