Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — FY2021 Earnings Presentation
28 slides from Temple & Webster's earnings presentation, Jul 27, 2021
Slide 1: Full Year 2021 Investor Presentation
TEMPLE & WEBSTER GROUP LTD REGISTERED OFFICE AND ABN 69 608 595 660 PRINCIPAL PLACE OF BUSINESS: Unit 1, 1-7 Unwins Bridge Road St Peters NSW 2044 ASX ANNOUNCEMENT 27 July 2021 Full Year 2021 Investor Presentation Temple & Webster Group Ltd attaches a Full Year 2021 Results Investor Presentation. Th
Slide 2: FY21 Investor Presentation
FY21 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 3: Summary
Summary FY21 Revenue FY20 Revenue • Temple & Webster is the leading pure play online retailer for furniture & $326.3m $176.3m homewares in Australia 85% growth vs pcp • Large addressable market with FY21 EBITDA FY20 EBITDA accelerating online adoption $20.5m $8.5m 141% growth vs pcp • Business is pr
Slide 4: Temple & Webster at a glance
Temple & Webster at a glance Operating in a large ~$16b market (excludes The leading pure play online retailer for Leverage to fund reinvestment activity to B2B), with less than 9% sold online furniture & homewares in Australia outgrow the market 2020 B2C Furniture & Homewares Market, Australia Only
Slide 5: FY21 Business Update
FY21 Business Update Strong growth across the year • Revenue up 85% for the year, EBITDA up 141% to $20.5m • Q4 revenue up 26% pcp (which is comparing to Q4 FY20 which in turn grew ~130% over Q4FY19) • Strong growth across all categories, geographies, channels & demographics • Scale is increasing op
Slide 6: Customer growth remains strong even after comparing against FY20 COVID impacted growth rates
Customer growth remains strong even after comparing against FY20 COVID impacted growth rates ↑13% Cohorts are performing well, leading to an Active Customers grew 62% year on year increase in repeat rate 800,000 160,000 700,000 140,000 120,000 600,000 100,000 500,000 80,000 400,000 60,000 300,000 40
Slide 7: Strong growth in revenue per active customer is partially offsetting an increase in CAC
Strong growth in revenue per active customer is partially offsetting an increase in CAC due to longer term brand investments 12 month marketing ROI still strong, even with Revenue per active customer up 12% due to a large brand investment (TV advertising) higher repeat rate and average order value2
Slide 8: Key initiatives driving conversion rate and customer satisfaction
Key initiatives driving conversion rate and customer satisfaction Customer satisfaction (NPS) has returned to target Conversion rate continues to improve 65%+ after dip post Christmas peak 3.5% Net Promoter Score (score range: -100% to 100%) 70% 3.0% 65% 2.5% 60% 2.0% 55% 50% 1.5% 45% 1.0% 40% Jun-1
Slide 9: Temple & Webster Private Label
Temple & Webster Private Label Private label is providing strategic benefits such as a Private label share (% of total sales) diversification of supply (less dependency on drop-ship network), improved margins, stock assurance and speed of dispatch. 19% 26% Key Initiatives during FY21 • Expanded Buyi
Slide 10: We have now launched both iOS and Android apps
We have now launched both iOS and Android apps • iOS app launched in H1 FY21 • Android app launched Jul-21 • Customer feedback has been extremely positive: • +4,000 reviews • Rating: 4.8 out of 5 • App is leading to higher levels of engagement and repeat purchasing • Mobile (mobile web & app) now ac
Slide 11: We are merging the online and offline experience through Augmented Reality (AR)
We are merging the online and offline experience through Augmented Reality (AR) • Augmented Reality (“see in your room”) pilot launched in H2 and will be progressively rolled out • Removing barriers in the online shopping journey while providing an interactive feature for customers which will drive
Slide 12: We have increased our investment in an AI Interior Design start up
We have increased our investment in an AI Interior Design start up • AI (Artificial Intelligence) Interior Design service, • Exposes Temple & Webster’s huge range of suggesting products to match a customer’s furniture & homewares selected item • Developed by an Israel based technology start up, • Ne
Slide 13: Our Trade and Commercial (B2B) division grew 110%
Our Trade and Commercial (B2B) division grew 110% 1 T&C has rebounded quickly with revenue up 110% 3 Residential property development sector and regional hospitality remain key areas $’000s. of focus: $8,000 • Successful launch of new service model $6,000 for the residential property development $4,
Slide 14: FY21 Financial Results
FY21 Financial Results Page 13
Slide 15: FY21: Strong growth and performance
FY21: Strong growth and performance Revenue $m EBITDA $m EBITDA % 326.3 20.5 Up Up Up 6.3% 85% 141% 1.5 pts 176.3 4.8% 8.5 FY20 FY21 FY20 FY21 FY20 FY21 Active Customers $ per Active Customer Fixed Costs (% of Rev) 778k 426 380 10.0% Up Up 12% Down 480k 62% 7.9% 2.1 pts 30-Jun-20 30-Jun-21 FY20 FY21
Slide 16: FY21 produced record revenue and profitability
FY21 produced record revenue and profitability A$m FY20 FY21 Record revenue Revenue 176.3 326.3 • Revenue of $326.3m for FY21 was up 85% YoY • Q4 revenue was up 26% YoY which is comparing to Q4 FY20 which grew ~130% YoY Cost of Sales (97.7) (178.3) Gross Margin 78.6 148.0 Private label now making up
Slide 17: Reiterating our high growth strategy
Reiterating our high growth strategy Short-mid term Longer term High growth / win the market Leverage scale / grow profit Revenue • Market leader takes a disproportionate share of • Continue to take advantage of longer-term accelerating online penetration online market penetration • Execute on organ
Slide 18: Capital light/cash flow positive business model
Capital light/cash flow positive business model Closing cash Net cash flow movement $000 $000 95,000 85,000 75,000 65,000 55,000 45,000 35,000 25,000 15,000 5,000 FY17 FY18 FY19 FY20 FY21 • Strong balance sheet position with a closing • Investment in private label paying off with growth cash balance
Slide 19: Strategy & Outlook
Strategy & Outlook Page 18
Slide 20: Online market penetration
Our core B2C furniture and homewares category is a ~$16b market, undergoing a structural shift towards online Hypothetical adoption curve for online penetration in the Furniture & Homewares market Aus US % 50%+ Online market penetration 40% 30% Short-Med term 2020: 25.3% 20% 2019: 15.2% 10% 2020e: 7
Slide 21: Demographic and structural changes will drive strong market growth for years to come
Demographic and structural changes will drive strong market growth for years to come 1 Millennials are entering our core demographic 2 Structural changes in our favour • Offline exits/store closures Hypothetical distribution of homewares and furniture spend by age • New consumer habits forming durin
Slide 22: Our strategy is based on range, inspiration and service
Our strategy is based on range, inspiration and service Our Core Belief • We believe everyone wants to live more beautifully. Our Vision • Our vision is to make the world more beautiful, one room at a time. • Our mission is to deliver beautiful solutions for our customers’ homes and work Our Mission
Slide 23: Scale increases our operating leverage, allowing us to accelerate investment in future growth
Scale increases our operating leverage, allowing us to accelerate investment in future growth and take market share REINVEST FOR GROWTH STRONG CONSUMER PROPOSITION Use cash flows generated to reinvest in marketing, Trusted brand, large range of quality products and technology development, product ra
Slide 24: Growth strategy
Growth strategy Add depth and Increase brand Expand digital breadth across our core awareness from 55% capabilities: data, and adjacent to +80% through personalisation, AI, categories; grow private digital and non-digital augmented reality label division channels Add inspirational Focus on exception
Slide 25: Trading update & outlook
Trading update & outlook • FY22 has started strongly with YoY revenue growth of 39% for the period 1st July – 24th July 2021. • We continue to experience strong tailwinds, including: • the ongoing adoption of online shopping due to structural and demographic shifts • an acceleration of these trends
Slide 26: Q&A
Q&A Page 25
Slide 27: 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 recommendation to subscri
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TEMPLE WEBSTER
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