Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — H1 FY2020 Earnings Presentation
25 slides from Temple & Webster's earnings presentation, Feb 18, 2020
Slide 1: H1 FY20 Results Presentation
H1 FY20 Results Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: Summary
Summary H1 FY20 Revenue H1 FY19 Revenue • Temple & Webster is the online market leader in $74.1m $49.4m furniture & homewares 50% Growth YoY • Large addressable market, H1 FY20 EBITDA H1 FY19 EBITDA of which only 4-5% moved $2.3m $1.0m online Dec-19 Cash Jun-19 Cash • Business is now profitable with
Slide 3: H1 FY20 Business Update
H1 FY20 Business Update • 50% revenue growth • 45% active customer growth High growth in a recovering • Record weekend driven by Black Friday and shift of retail spend into November housing market • Shift to online driven by demographic changes independent of macroeconomic factors • Temple & Webster
Slide 4: Temple & Webster is the leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares Page impressions (NOV) Active customers (LTM) ~14m ~335k Website users (NOV) Product listings ~1.8m ~180k Email subscribers Sub-categories ~2.1m ~193 Social media reach Average time to dispatch ~610k ~1.5 days Source: www.temp
Slide 5: Our core furniture and homewares category is a $13.9 billion market
Our core furniture and homewares category is a $13.9 billion-dollar market, with only 4-5% migrated online Furniture and Homewares Market (AUS) Furniture and homewares online penetration rates by country 2018 Data 2018 Data Source: Euromonitor International Limited; Home Furnishings and Homewares So
Slide 6: 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 Hypothetical distribution of homewares • Faster internet and mobile speeds and furniture spend by age eg. NBN, 5G • New market entra
Slide 7: 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 8: It's all about the customer
It’s all about the customer Net Promoter Score (score range: -100% to 100%) 61% 59% 57% 55% 53% 51% 49% 47% 45% Best pureplay finalist 2019 Key initiatives to further Enforcing quality Taking more control Category experts within drive customer satisfaction standards across over delivery experience c
Slide 9: Active customers up 45% year on year
Active customers up 45% year on year ↑13% Active Customers Repeat and First Time Orders 360,000 90,000 80,000 310,000 70,000 60,000 260,000 50,000 210,000 40,000 30,000 160,000 20,000 10,000 110,000 0 First Time Repeat NB. Active customers are the number of unique customers who have transacted in th
Slide 10: Customers metrics remain strong
Customers metrics remain strong 12 month Marketing ROI Revenue per Active Customer2 Conversion Rate3 holding at ~2.6x1 2.8 $390 3.0% 2.4 $380 $370 2.5% 2.0 $360 1.6 $350 2.0% $340 1.2 $330 1.5% 0.8 $320 $310 1.0% 0.4 $300 0.5% 0.0 As at 30 June 2019 As at 31 December 2019 Customer Acquisition $43 $4
Slide 11: Our Trade and Commercial (B2B) division grew 75% year on year
Our Trade and Commercial (B2B) division grew 75% year on year Our B2B Customer Proposition B2B Sales $’000s. $2,800 $2,400 $2,000 $1,600 $1,200 $800 $400 $0 Sales/revenue is pre deferred revenue and refund accounting adjustments Repeat and First Time Orders 2,800 2,400 2,000 1,600 1,200 800 400 0 Fi
Slide 12: H1 FY20: Beta launch of Mobile App
H1 FY20: Beta launch of Mobile App Content rich homepage, High resolution Easy and prominent use of with integrated images, fast native “favourites” functionality shoppable editorial shopping experience helping customers save items for later purchase Page 12
Slide 13: FY20 Financial Results
FY20 Financial Results Mark Tayler CFO Page 13
Slide 14: We are pursuing a high growth strategy
We are pursuing a high growth strategy Short-mid term Longer term Leverage scale / High Growth / Win the market grow profit Revenue • High growth due to accelerating online • Continue to take advantage of longer-term market penetration and market share online market penetration gains Contribution •
Slide 15: H1 Results vs LY
H1 Results vs LY A$m H1FY19 H1FY20 • Revenue growth for the half of 50%, primarily driven by an increase in active customers Revenue 49.4 74.1 Cost of Sales (27.4) (41.3) • Delivered margin growth for the half of 46% was driven by top line revenue growth, offset by shipping cost increases on bulky f
Slide 16: High growth strategy is already translating into operating leverage
High growth strategy is already translating into operating leverage FY17 FY18 FY19 H1FY20 Revenue 100% 100% 100% 100% Gross Margin 42.7% 44.1% 44.6% 44.3% Delivered Margin (after all 27.6% 31.0% 30.1% 29.7% distribution costs) Customer Service Staff & 4.7% 3.3% 3.3% 3.3% Merchant Fees Advertising Co
Slide 17: Capital light/cash flow positive business model
Capital light/cash flow positive business model A$m 30-Jun-19 31-Dec-19 • Balance sheet position remains strong with a closing cash Assets balance of $15.7m and no debt Cash & Cash Equivalents 13.5 15.7 Inventories 3.5 5.5 • Cash flow positive half of +$2.2m was driven by a positive EBITDA result an
Slide 18: Strategy & Outlook
Strategy & Outlook Page Page 18 18
Slide 19: Given the growth opportunity, our focus is on Australia
Given the growth opportunity, our focus is on Australia Key Addressable H1 FY20 TPW Market categories market size Revenue Share Furniture, Future B2C homewares, (Residential ~$25b ~$69m ~0.5% phases of home & home improvement, growth office) appliances include International (e.g. NZ / SE Asia); offl
Slide 20: Our plan to grow our leadership in the online B2C furniture and homewares market
Our plan to grow our leadership in the online B2C furniture and homewares market Add depth and Leverage scale to Increase brand breadth across our core obtain cost advantage awareness from 31% to categories (including and exclusivity on new +80% through digital DIY); expand private product ranges an
Slide 21: Our plan to grow our market share of the B2B furniture and homewares market
Our plan to grow our market share of the B2B furniture and homewares market Add Trade & Add inbound sales staff Continue pilot of Commercial exclusive (onshore & offshore); Sydney by product ranges and outbound appointment business development showroom managers Continue to improve Innovate offering
Slide 22: Trading update & outlook
Trading update & outlook The second half has started well with YoY revenue growth of 55% (to Feb 17). Temple & Webster is committed to a high growth strategy to take advantage of the structural shift towards online, however we do remain watchful of the competitive and macroeconomic environment. TPW
Slide 23: Q&A
Q&A Page 23
Slide 24: 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
Slide 25: Temple & Webster
TEMPLE WEBSTER
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