Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — H1 FY17 Earnings Presentation
24 slides from Temple & Webster's earnings presentation, Feb 27, 2017
Slide 1: H1 FY17 Results
For personal use only 31 Dec 2016 H1 FY17 Results Mark Coulter CEO Mark Tayler CFO 1
Slide 2: For personal use only
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Slide 3: Summary
Summary For personal use only revenue gross margin ebitda $33.4m $14.2m ($4.9m) 11% 25% 35% (on a continuing basis) (on a continuing basis) improvement cash $12.6b key h1 $12.3m market actions Strong balance sheet Only 4.1% Integration of Milan Direct with no debt migrated online Customer aquisition
Slide 4: We operate in a $12.6 billion market, with only ~4% migrated online
We operate in a $12.6 billion dollar market, with only ~4% migrated online For personal use only A$12.6 billion addressable market Furniture and homewares online penetration rates by country from CY12 to CY15. Source: Euromonitor International Limited; Home Furnishings Source: Euromonitor Internatio
Slide 5: Key competencies and assets
Key competencies and assets For personal use only • #1 online retailer in category • World-class tech platform • Largest range in Australia: • Direct sourcing capabilities 140k+ products • Melbourne showroom • Database: 1m+ newsletter subscribers • Trade & commercial division • Best content & curati
Slide 6: Key initiatives and metrics for H1 FY17
Key initiatives and metrics for H1 FY17 1 2 For personal use only Milan Direct Launch of integration Temple & into Temple Webster & Webster Style School 3 18% 16% 4 33% Conversion Average Order 17% 19% rate improved Value grew by 19% 11% by 16% due to strategic -12% -10% shift in our mix (Q2 FY17 &
Slide 7: Data driven acquisition has significantly increased first time customers
Data driven acquisition has significantly increased first time customers while reducing the cost per first time customer For personal use only • Cost per first time First Time Customers and Cost per FT Customer (Quarterly) customer decreased by 33% (Q2FY17, Q2FY16), while first time customers contin
Slide 8: Active customer numbers continue to rise
Active customer numbers continue to rise, with revenue per customer remaining at record highs even after consolidating For personal use only our websiites Active Customers Net Revenue per Active Customers 3x Websites ZIZO MD 3x Websites ZIZO MD T&W; ZIZO/Wayfair; Milan Direct integration integration
Slide 9: H1 FY17 key financials
For personal use only H1 FY17 key financials 9
Slide 10: Pro forma profit and loss
Pro forma profit and loss For personal use only Key observations • Double digit revenue growth of +11% (on a continuing business basis) • Gross profit up +25% (on a continuing business basis) as a result of leveraging the Milan Direct private label and a review of pricing points across the entire Te
Slide 11: Statutory balance sheet
Statutory balance sheet Key Observations For personal use only • Strong balance sheet position with $12.3m cash and zero debt • Inventory levels have reduced as a result of better, data-driven buying decisions including a reduction of aged inventory levels • Low PPE balance reflects the group’s asse
Slide 12: Strategy & outlook
For personal use only strategy & outlook 12
Slide 13: Strategic priorities
For personal use only 1 Execute vision of delivering beautiful solutions for our customers 2 Reach profitability in CY18 3 Set up the business for future growth 13
Slide 14: 1. Execute vision to deliver beautiful solutions
1. Execute vision to deliver beautiful solutions for our customers’ homes and work spaces For personal use only Expand range, focus on Shoppable content eg. Tech innovations Virtual styling advice in Improved last mile catalogue improvement, styled shoots, complete eg. AR, new mobile site customer c
Slide 15: Example: T&W Style School launched December 2016
Example: T&W Style School launched December 2016 For personal use only • Market first • Interactive online education in partnership with the respected Sydney Design School • First course: Styling Your Living Space • More course units launching in April • Leverages Temple & Webster talent and content
Slide 16: 2. Reach profitability in CY18
2. Reach profitability in CY18 Temple & Webster economics and path to profitability For personal use only 16
Slide 17: 3. Set up business for future growth
3. Set up business for future growth • We have begun to For personal use only New Categories invest in our Trade & (eg Gifting) Commercial program which is showing strong month on Trade Program month growth • Focused on SMEs Continue to explore and trade customers omnichannel retail with Melbourne p
Slide 18: Outlook
Outlook For personal use only • January was a strong start to the year with revenue, gross profit and EBITDA showing similar year- on-year growth rates as H1. • While revenue may yet still be impacted by the Milan Direct integration and the continued focus on improving margins, the Company expects m
Slide 19: Why TPW?
Why TPW? For personal use only Large Already #1 Biggest Large and and and range engaged growing capturing in customer market scale Australia database benefits Best team Magazine World On the and talent in quality class tech path to category content platform profitability produced in-house 19
Slide 20: Q&A
For personal use only q&a 20
Slide 21: Appendix
For personal use only appendix 21
Slide 22: 2015 & 2016 were transformational years for the T&W Group
2015 & 2016 were transformational years for the T&W Group For personal use only “The first place Australians turn to when shopping for their homes and work spaces” 22
Slide 23: Disclaimer
Disclaimer This presentation (Document) has been prepared by Temple & Webster Group Limited ACN 608 595 660 (T&W Group or the Company). This Document is a presentation to provide background information on the Company and its subsidiaries and is not an offer or invitation or For personal use only rec
Slide 24: For personal use only
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