Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (October 2018)
18 slides from Temple & Webster's investor presentation, Oct 22, 2018
Slide 1: Investor Presentation & Q1FY19 Trading Update
Temple & Webster Investor Presentation & Q1FY19 Trading Update October 2018 Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: Summary Q1FY19 Update
Summary Q1FY19 Update FY18 Revenue Q1FY19 Revenue • Temple & Webster is the $72.6m ⇧ 39% online market leader in furniture & homewares FY18 EBITDA Q1FY19 EBITDA -$0.6m +$0.2m • $13b total market, less than 4% moved online June 30 Cash Sep 30 Cash • Business is now profitable $9.9m $10.5m with top-li
Slide 3: Temple & Webster is the leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares Page impressions (MONTHLY) Active customers (LTM) 11m+ ~198k Website users (MONTHLY) Product listings 1.1m ~125k Email subscribers (WEEKLY) Sub-categories 1.6m+ ~185 Social media reach Average time to dispatch ~465k ~2 days So
Slide 4: Our core furniture and homewares category is a $13.6 billion market, with only ~4% online
Our core furniture and homewares category is a $13.6 billion dollar market, with only ~4% migrated online Furniture and Homewares Market (AUS) Furniture and homewares online penetration rates by country for CY17 16% 14.2% 13.7% 14% 12% 10% 8% 6% 3.9% 4% 2% 0% Australia US UK CY17 Source: Euromonitor
Slide 5: 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 now 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 e
Slide 6: 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 7: As market leader we continue to innovate our offer
As market leader we continue to innovate our offer Visual Search Private Label Temple & Webster Delivery Using machine learning and Private label ranges under the Temple Our first branded delivery van, aimed at artificial intelligence & Webster brand improving the bulky delivery experience Page 7
Slide 8: Our focus is now on growth
Our focus is now on growth Phase 3:FY19+ Phase 2: FY18 • Accelerate top-line growth ✓ Focus on growth of core • Invest in marketing and business adjacent growth plays ✓ Reach profitability within • Look at organic and inorganic Phase 1: FY17 existing cash reserves growth opportunities ✓ Improve core
Slide 9: Active customers continue to grow with 45% of orders now from repeat customers
Q1FY19 Update Active customers continue to grow with 45% of orders now from repeat customers ↑13% Active Customers Repeat and First Time Orders 230,000 210,000 50,000 190,000 40,000 170,000 30,000 150,000 20,000 130,000 10,000 110,000 0 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 First Time Cu
Slide 10: Our customers are profitable in their first year
Q1FY19 Update Our customers are profitable in their first year Revenue per Active Customer1 ($) Conversion Rate2 Year 1 Marketing ROI 2.5% $390 2.3% $114 $370 2.1% $350 1.9% 1.7% $330 1.5% $55 $310 1.3% $290 1.1% 0.9% $270 0.7% $250 0.5% Margin per Active Marketing spend Customer3 ($) per First Time
Slide 11: Our business can now scale profitably
Our business can now scale profitably FY16 FY17 FY18 Revenue 100% 100% 100% Gross Margin 39.9% 42.7% 44.2% Delivered Margin (after all 21.7% 27.6% 31.0% distribution costs) Customer Service & Merchant 4.9% 4.7% 3.3% Fees • Includes 100% of marketing and customer service costs Marketing 19.4% 12.7% 1
Slide 12: Our top-line is now delivering operating leverage
Our top-line is now delivering operating leverage ↑13% Revenue by Half EBITDA by Half 40,000 2,000 36,000 0 32,000 -2,000 28,000 -4,000 24,000 -6,000 20,000 -8,000 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 milandirect.com.au integrated into templ
Slide 13: Our plan to grow our market leadership in the online furniture and homewares market
Our plan to grow our market leadership in the online furniture and homewares market Add depth and Leverage scale to Increase brand breadth across our core obtain cost advantage awareness through categories, expand and exclusivity on new digital and non-digital private label offering product ranges c
Slide 14: We are setting the business up for future growth horizons
We are setting the business up for future growth horizons Offline New business Addressable B2B furniture & Adjacent lines, new markets furniture & homewares Categories geographies Online fitout (retail) furniture & ~$13.1b homewares ~$0.5b Maintain and Accelerate Continue to Broaden current DIY FY19
Slide 15: Trading update & outlook
Q1FY19 Update Trading update & outlook The new financial year has started strongly, with trading exceeding expectations. Q1 FY19 revenue grew 39% year on year, delivering a profitable quarter. The Company remains confident of delivering its maiden full year profit in FY19. Gross Revenue is used in t
Slide 16: Q&A
Q&A Page 16
Slide 17: 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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