Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — H1 FY24 Earnings Presentation
20 slides from Temple & Webster's earnings presentation, Feb 13, 2024
Slide 1: H1 FY24 Investor Presentation
H1 FY24 Investor Presentation Mark Coulter CEO Mark Tayler CFO
Slide 2: High growth, increasing profit and taking market share
High growth, increasing profit and taking market share H1 revenue • H1 revenue up 23% year on year (‘yoy’), driven by growth in both $254m up 23%, H2 repeat and first-time customers H1 FY24 off to a • Q2 FY24 up 40%1 yoy helped by strong Black Friday-Cyber Monday Revenue strong start sales • H2FY24
Slide 3: H1 FY24 Key Performance Indicators
H1 FY24 Key Performance Indicators RECORD ACTIVE CUSTOMERS1 ORDERS FROM BOTH REPEAT & NEW CUSTOMERS 12-MONTH MARKETING ROI3 IN LINE WITH ↑13% GROWING STRONGLY2 EXPECTATIONS (AFTER BRAND INVESTMENT) 975k 467k 2.6x 2.6x 906k 841k 410k 2.0x 2.0x 366k 348k 347k 1.8x 678k First Time 301k Customer 267k 25
Slide 4: We are on track to reach $1b+ in annual sales in 3-5 years
We are on track to reach $1b+ in annual sales in 3-5 years ↑13% 3–5 year FY23 target Commentary/Assumptions Core business: B2C $335m >$800m • Although there are some tailwinds for the market (immigration etc.) Furniture & we have assumed the market remains at its current $19.3b1 size • Online penetr
Slide 5: Our strategic plan to reach $1b+ in annual sales
Our strategic plan to reach $1b+ in annual sales 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 3-5 YEA
Slide 6: Become the top-of-mind brand in the category
01 Become the top-of-mind brand in the category We rank 7th in unprompted Now is the time to build our awareness for furniture & brand equity and salience and OUR PROGRESS TO DATE homewares amongst shoppers drive our market share % of Australian consumers spontaneously • 78% of Australian furniture
Slide 7: Majority of revenue from exclusive products
02 Majority of revenue from exclusive products Our focus is to deliver the majority A unique catalogue will of revenue from exclusive products solidify our position of OUR PROGRESS TO DATE having the best range Revenue split by product type (%) • Having a differentiated catalogue of • 500+ new priva
Slide 8: Leading capabilities around data, AI & technology
03 Leading capabilities around data, AI & technology We have the leading Building market leading data conversion rate out of the and AI capabilities to drive OUR PROGRESS TO DATE largest retailers dedicated to further customer conversion the home within Australia and cost-base efficiencies Monthly C
Slide 9: Lower fixed cost % to obtain a price and margin advantage
04 Lower fixed cost % to obtain a price and margin advantage We are aiming to decrease our We are progressing well with our goal to fixed costs as a % of sales through: decrease our fixed costs as a % of sales Increasing scale Fixed costs (wages and overheads as a % of sales) Given that we do not ha
Slide 10: Build scale through adjacent growth plays
05 Build scale through adjacent growth plays Building out current and future Growth plays will leverage growth plays will diversify our the Group’s core capabilities OUR PROGRESS TO DATE revenue mix while adding scale Trade & Commercial (B2B) Group revenue from growth plays beyond our core B2C furni
Slide 11: Scale will help us achieve these strategic priorities
Scale will help us achieve these strategic priorities 01 02 03 04 05 Marketing budgets will More data leads to better Scale allows us to Given that we do not Scale allows us to increase with scale. For predictions of best sellers increase investment in have stores, our fixed cost increase investment
Slide 12: H1 FY24 Financial Results
H1 FY24 Financial Results Page 12
Slide 13: Taking market share and increasing profit
Taking market share and increasing profit A$m H1FY23 H1FY24 • Revenue growth of 23% for the half (25% pre accounting adjustments, such as deferred Revenue 207.1 253.8 revenue and refund provisions) Cost of Goods Sold (141.8) (169.3) Gross Margin 65.3 84.5 • Gross and delivered margin % increases wer
Slide 14: Balance sheet continues to strengthen
Balance sheet continues to strengthen A$m 30-Jun-23 31-Dec-23 Balance sheet remains Net cashflow of $19m Current balance sheet position Assets strong with a closing (before share buyback of can fund organic and Cash & Cash Equivalents 105.1 114.2 cash balance of $114m $10m throughout H1) as a inorga
Slide 15: FY24/25 financial profile will enable growth and further share gains
FY24/25 financial profile will enable growth and further share gains • Having cycled COVID-19 impacted periods, we are returning to our T&W Group FY23 FY24/25 Long Term Longer-term assumptions growth strategy as the category disrupter Revenue 100% 100% 100% • FY24/25 will be focused on high Scale be
Slide 16: Trading Update & Outlook
Trading Update & Outlook Page 16
Slide 17: Trading update & outlook
Trading update & outlook • The 2nd half of FY24 has started strongly with revenue from the 1st January to the 11th February up 35%1 yoy. • Growth is being driven by both first-time customers and repeat customers, which led to us crossing the 1 million Active Customer mark in February this year. • Ou
Slide 18: Q&A
Q&A Page 18
Slide 19: 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 20: Page 20
TEMPLE WEBSTER
Temple & Webster Group — H1 FY24 Earnings Presentation on 6ix