Redbubble Annual Report 2020

8 9 Redbubble Annual Report 2020 Chair’s Letter On behalf of the Redbubble Board of directors, I am pleased to present the Annual Report for 2020. The past year has been uniquely challenging and I am proud of Redbubble’s strong business performance during this period. The COVID-19 pandemic has had a profound impact on consumer behaviour and has accelerated the shift to online platforms. The Redbubble and TeePublic marketplaces have benefitted from this shift, with strong growth evident across geographies and product categories. I am particularly pleased with the performance of the Redbubble supply chain, which has proven to be highly resilient and largely unaffected by the pandemic. One sign of a great business is its ability to adapt to changing circumstances. Redbubble was amongst the first to move all staff to remote working, whilst maintaining the usual high levels of productivity. The Redbubble team was also able to design and launch a new facemask product with impressive speed. Facemasks have rapidly grown to be an important sales contributor for both Redbubble and TeePublic. I was delighted to assume the role as Board Chair in March this year. I thank my predecessor Richard Cawsey for his leadership of the Board and many contributions to Redbubble over the past decade. I also thank Redbubble’s co-founder Martin Hosking for coming out of retirement to step in as interim CEO following Barry Newstead’s departure from the company in February. Martin is continuing as interim CEO whilst the Board completes a global search for a permanent CEO. We welcomed Ben Heap to the Redbubble Board in April 2020. Ben is passionate about innovation and his diverse experience has proved to be a great addition to the board. Thanks to our wonderful community of committed artists. We are proud of the quality and diversity of art and design work they bring to the Redbubble and TeePublic marketplaces. This year artists earned over $67 million through our marketplaces. Thanks also to our valued third party fulfillers, content partners and customers for their continued support. My thanks also go to all Redbubble employees. Our success this year would not have been possible without the efforts of our strong executive team and dedicated employees around the globe. Finally, thanks to you, our shareholders. We will continue to focus on building long term value for you as we realise our ambition of creating the world’s largest marketplace for independent artists. Anne Ward Chair CEO’s Review The potential for the Redbubble Group (“RB Group”) has become increasingly clear during FY2020 as both marketplaces (Redbubble and Teepublic) have seized on the opportunities presented by the Covid-19 crisis to extend leadership positions serving independent artists and their customers. The Company’s potential is reflected in financial results highlighting rapidly accelerating profitability as the advantages of increasing scale are realised. In this review I want to highlight the four factors that have driven success of the Company through 2020 and which underpin the potential for the Company in the coming decade: changes in the retail landscape, the strong flywheel dynamics, the advantages of the on-demand model and finally our commitment to profitable growth. Changes in the Retail Landscape The Covid-19 crisis that unfolded in the third and fourth quarters of 2020 has accelerated trends that were already underway. 10 years of online growth were achieved over the course of a few months. There are signs of enduring structural changes with consumer behaviour having shifted and online retail retaining share even as reopening occurred. The Group was particularly well suited, versus traditional retailers, by the nature of our offering: more differentiated and personalised products, almost immediate timely product designs created by the artists and negligible stocking or inventory risk as a result of the print-on-demand offering. The combined effect of these factors was that the Redbubble marketplaces had the most relevant products for the customers made available at attractive prices with attractive margins. Growth for the Company was realized in all four of our principal geographies: North America, Continental Europe, the UK and Australia and New Zealand. In the fourth quarter year-on-year growth was 121%, 61%, 124% and 79% respectively. These geographies represent a total addressable market of some 1 billion people. There are very few consumer marketplaces from anywhere in the world, let alone Australia, that have such global spread.