Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (August 2022)
25 slides from Temple & Webster's investor presentation, Aug 16, 2022
Slide 1: FY22 Investor Presentation
FY22 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: Summary
Summary FY22 Revenue FY22 EBITDA FY22 EBITDA Margin $426.3m $16.2m 3.8% 2-Year CAGR: 55% 2-Year CAGR: 38% High end of 2-4% (incl. The Build investment) guidance Temple & Webster is the leading The furniture and homewares pure play online retailer for market is large, stable and furniture and homewar
Slide 3: Our strategy is to deliver a high growth business while growing profit
Our strategy is to deliver a high growth business while growing profit ↑13% 500 Revenue, $m • Capitalise on the structural shift from offline to online 450 High growth 400 • Increase market share through conversion rate and traffic 350 growth initiatives 300 • Add further revenue pools (e.g. trade a
Slide 4: Our customer proposition is based on range, inspiration and service
Our customer proposition is based on range, inspiration and service Our Core Belief Our Vision Our Mission Our Goal We believe everyone Our vision is to make Our mission is to deliver beautiful We believe if we can deliver on our wants to live more the world more solutions for our customers’ homes s
Slide 5: Active customers grew 21% to 940k
Active customers grew 21% to 940k ↑13% Active customer growth • Curated range: 240k+ products from 500+ suppliers Range & content a key across 210 categories 900,000 • 73% drop ship (no inventory risk) and differentiator 27% private label/inventory 800,000 • Large in-house content team (e.g. stylist
Slide 6: Revenue per active customer growth offsetting customer acquisition cost inflation
Whilst growth in revenue per active customer has allowed us to weather customer acquisition cost inflation ↑13% Revenue per active 12 month marketing ROI ~2, 55% of orders are now customer up 6% despite COVID CAC inflation from repeat customers $500 250,000 2.4 200,000 First Time Repeat $450 2.0 $40
Slide 7: Conversion rate positive trend has maintained its momentum
Conversion rate positive trend has maintained its momentum ↑13% Conversion rate by month Key Initiative 1: Key Initiative 2: Continued roll-out of AI based Enhanced product pages recommendations powered by 3.5% Renovai • Renovai is an Israeli start up that TPW has • Additional content added to the 3
Slide 8: Our diverse and digitally connected supply chain
Our diverse and digitally connected supply chain allows us to navigate headwinds, whilst providing a tailored customer experience Net promoter score (score Our asset light supply chain provides operational excellence through a digitally connected range: -100% to 100%) physical network of partners, w
Slide 9: Our trade and commercial division (B2B) grew 39% YoY
Our trade and commercial division (B2B) grew 39% YoY Revenue Our trade and commercial division continued to $’000s. deliver strong results despite challenging market conditions in the second half of the year. $8,000 $6,000 Key areas of focus included: $4,000 • Improving customer acquisition through
Slide 10: Our home improvement category grew 61% in FY22
Our home improvement category grew 61% in FY22 Home • Large, addressable market (~$26b, with ~$16b improvement is an addressable to T&W) attractive growth • Opportunity to maximise share of spend in the home and horizon for Temple cross-sell into our core furniture and homewares business & Webster •
Slide 11: Our new HQ will be ready in H1 FY23
Our new HQ will be ready in H1 FY23 New HQ consolidates multiple facilities • Single 5,000 m2 site in Inner West (20 min out of Sydney CBD) • Consolidates multiple offices, studio and studio warehouse into a single site • 10-year cost effective lease with multiple expansion options (time & space) Pa
Slide 12: FY22 Financial Results
FY22 Financial Results Page 12
Slide 13: FY22 profit and loss results
FY22 profit and loss results A$m FY20 FY21 FY22 Strong growth with revenue up Delivered and contribution Revenue 176.3 326.3 426.0 31% vs FY21 and up 142% vs FY20 margins were in line with Cost of Sales (97.7) (178.3) (233.6) which equates to a 55% 2-year guidance despite inflationary Gross Margin 7
Slide 14: Our strategy is to deliver a high growth business while growing profit
Our strategy is to deliver a high growth business while growing profit Longer T&W Group FY17 FY22 Key Levers Term Goal Substantial progress has been made from FY17 to Revenue 100% 100% 100% FY22 in terms of the unit Scale benefits with suppliers, private economics of Temple & Delivered Margin (after
Slide 15: Cash flow positive with no debt
Cash flow positive with no debt A$m 30-Jun-21 30-Jun-22 Closing cash balance Operating cash was driven from FY22 profitability Assets of $101m and no debt and the group’s capital light model Cash & Cash Equivalents 97.5 101.0 Inventories 21.3 26.4 Other current assets 4.4 6.0 Data driven approach en
Slide 16: Strategy & Outlook
Strategy & Outlook Page 16
Slide 17: Our Total Addressable Market is now >$30billion
Our Total Addressable Market is now >$30billion The ~$16b furniture and homewares market is stable and has shown Home improvement adds a further ~$16b to our TAM steady growth, even through periods of high interest rates, high (in-scope categories only) inflation, recessionary periods and housing ma
Slide 18: Online market penetration
Our core furniture and homewares category will provide strong growth for many years due to online penetration and market share increases Australia furniture and homewares market significantly lags the In the US, the online market leader, Wayfair, tripled its market share of the entire online penetra
Slide 19: Our core markets have different fundamentals than many other ecommerce categories
Our core markets have different fundamentals than many other ecommerce categories, providing a clearer path to sustainable profit Fundamental Quality Benefit • Many costs are variable and related to the order (e.g. pick & pack, customer care) Large AOV/ • Higher Average Order Values and margins allo
Slide 20: Scale increases our operating leverage, allowing us to accelerate investment
Scale increases our operating leverage, allowing us to accelerate investment in future growth and take market share INVESTING FOR GROWTH STRONG CONSUMER PROPOSITION Phasing investment in marketing, data, technology Trusted brand, large range of quality products and development, product range and ove
Slide 21: Our strategy to continue to take further market share
Our strategy to continue to take further market share Add depth and Increase brand Expand digital breadth across our awareness from 61% capabilities: data, core and adjacent to +80% through personalisation, AI, categories; grow digital and non-digital augmented reality private label division channel
Slide 22: Trading update & outlook
Trading update & outlook • Given FY23 cyclical headwinds, we have accelerated some of our margin optimisation and cost management programs. As such, we are upgrading our EBITDA margin % guidance for FY23 from 2-4% to a 3-5% range. This profitability range is after our investment into The Build, whic
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: Page 25
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