Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (August 2024)
21 slides from Temple & Webster's investor presentation, Aug 13, 2024
Slide 1: FY24 Investor Presentation
FY24 Investor Presentation Mark Coulter CEO Mark Tayler CFO
Slide 2: FY24 delivered ~$500m in revenue, up 26%, on track to $1b+ target
FY24 delivered ~$500m in revenue, up yoy 26%, on track to our $1b+ target Overview • Australia’s leading pure-play online retailer for furniture and FY24 Revenue $498m homewares1 • TPW market share of the total Furniture & Homewares market is now 2.3%2, up 31% year on year (‘yoy’) • Profitable, cash
Slide 3: FY24 Key Performance Indicators
FY24 Key Performance Indicators 1Active customers are the RECORD ACTIVE CUSTOMERS1 ORDERS FROM BOTH REPEAT2 & NEW 12-MONTH MARKETING ROI3 IN number of all unique CUSTOMERS GROWING STRONGLY LINE WITH EXPECTATIONS customers who have transacted in the last twelve 1094k months (‘LTM’). Non-brand 941k Fi
Slide 4: Our business model is driving market share gains
Our business model is driving market share gains ↑13% TPW share of the total Australian Furniture Growth & market share gains driven by: and Homewares market1 We have one of the best and largest ranges of quality TPW market share furniture & homewares items surpasses COVID peak 2.5% (up 31% yoy) COV
Slide 5: Our strategy is to take advantage of a structural change
Our strategy is to take advantage of a “once in a generation” structural change to build a platform for growth ↑13% We believe that now is the time to accelerate our market share growth, with the ultimate goal of becoming the largest retailer of furniture & homewares in Australia Millennials/Gen Z c
Slide 6: On track to reach our mid-term goal of $1b+ in annual sales
On track to reach our mid-term goal of $1b+ in annual sales ↑13% FY23 FY24 Mid-Term1 Commentary/Assumptions Core business: B2C $335m $424m >$800m • Total market (online & offline): Although there are Furniture & some tailwinds (e.g., immigration), assuming the market Homewares Revenue remains at its
Slide 7: Our strategic plan
Our strategic plan OUR To make the world more beautiful, one room at a time VISION CUSTOMER We want to be famous for having the best range in our category, the most PROMISE inspirational content and services and a great delivery & customer service experience OUR MID- TERM1 STRATEGIC 01 02 03 04 05 G
Slide 8: Update on our strategic goals
Update on our strategic goals Ahead of target On target In progress 01 • FY24 was a year of experimentation (at scale) to get a statistically significant read on the benefit of adding Become the top-of-mind incremental marketing channels (TV, online video, OOH, audio, print, cinema and paid social)
Slide 9: Data, AI & technology is a key differentiator vs our peers
Data, AI & technology is a key differentiator vs our peers Developing internal AI “Solutions in a box” AI capabilities already delivering results • New hires added to our internal AI • Conversion improvements being team, combining Machine Learning driven by product content and Gen AI knowledge gener
Slide 10: FY24 Financial Results
FY24 Financial Results Page 10
Slide 11: Tracking to target as we execute on our strategy
Tracking to target as we execute on our strategy In Aug-23, we outlined a plan Metric FY24Targets FY24 Result focused on high growth, achieving a mid-term target of $1b+ in annual Revenue Growth 20-36% 25.9% Mid-point of range sales whilst building on strategic CAGR moats of brand, range, AI/data, a
Slide 12: High growth, long term investments, EBITDA at top end of guidance
High growth, long term investments, EBITDA at top end of guidance A$m FY23 FY24 • Revenue for FY24 was up 26% vs last year driven • Fixed costs as a % of revenue were down Revenue 395.5 497.8 by growth in both repeat and new customers from 12% in FY23 to 11% in FY24 as a Cost of Sales (266.6) (331.8
Slide 13: Asset light model delivered +$25m in free cash flow
Asset light model delivered +$25m in free cash flow A$m 30-Jun-23 30-Jun-24 • The Group ended with $116m in cash with no debt Assets • This positions TPW strongly to take advantage of prevailing market conditions, Cash & Cash Equivalents 105.1 116.4 both positive and weaker conditions Inventories 18
Slide 14: FY25 financial profile will enable growth and further share gains
FY25 financial profile will enable growth and further share gains FY25 T&W Group FY24 FY25 Long Term Longer-term • As previously disclosed, FY25 will include assumptions an additional 2-3% of revenue invested Revenue 100% 100% 100% into marketing, spread across brand and performance channels to incr
Slide 15: Trading Update & Outlook
Trading Update & Outlook Page 15
Slide 16: Trading update & outlook
Trading update & outlook • FY25 has started strongly with revenue from July 1 to August 11 up 26%1 year on year • Our customer proposition focused on price, range and convenience continues to resonate with customers who are being impacted by ongoing cost-of-living pressures • At our mid-term target
Slide 17: Q&A
Q&A Page 17
Slide 18: Appendix
Appendix Page 18
Slide 19: IFRS/EBITDA reconciliation
IFRS/EBITDA reconciliation A$m FY24 Profit before tax 6.4 Adjustments Add: Depreciation and amortisation 5.8 Add: Interest on lease liabilities 1.2 Less: Interest income (5.0) EBITDA 8.4 One-off costs Add: Impairment of investment in an associate1 1.7 Add: Change in fair value of convertible notes1
Slide 20: 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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