Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (August 2018)
17 slides from Temple & Webster's investor presentation, Aug 3, 2018
Slide 1: Investor Presentation & Trading Update
For personal use only Temple & Webster Investor Presentation & Trading Update Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: Summary
Summary For personal use only FY18 Revenue H2 Revenue • Temple & Webster is the $72.6m ⇧ 25% online market leader in furniture & homewares FY18 EBITDA H2 EBITDA ($0.6m) +$0.3m • ~$13b total market, less than 4% moved online June 30 Cash • Business is now profitable $9.9m with top-line growth acceler
Slide 3: Temple & Webster is the leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares For personal use only 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 dis
Slide 4: Core furniture and homewares category is a $13.6 billion market, ~4% online
Our core furniture and homewares category is a $13.6 billion dollar market, with only ~4% migrated online For personal use only Furniture and Homewares Market (AUS) Furniture and homewares online penetration rates by country for CY17 16% 14.2% 13.7% 14% 12% 10% 8% 6% 3.9% 4% 2% 0% Australia US UK CY
Slide 5: Demographic and structural changes will drive strong market growth
Demographic and structural changes will drive strong market growth for years to come For personal use only 1 Millennials are now entering our core demographic 2 Structural changes in our favour Hypothetical distribution of homewares • New logistics entrants and furniture spend by age eg. SingPost, J
Slide 6: Our strategy is based on range, inspiration and service
Our strategy is based on range, inspiration and service For personal use only Our Core Belief • We believe everyone wants to live more beautifully. Our Vision • Our vision is to make the world more beautiful, one room at a time. • Our mission is to deliver beautiful solutions for our customers’ home
Slide 7: Revenue growth is accelerating
Revenue growth is accelerating For personal use only Phase 3:FY19+ Phase 2: FY18 • Accelerate top-line growth ✓ Focus on growth of core • Invest in marketing and business adjacent growth plays ✓ Reach profitability within • Look at organic and inorganic Phase 1: FY17 existing cash reserves growth op
Slide 8: Active customers are growing at +25% year on year
Active customers are growing at +25% year on year ↑13% For personal use only Active Customers Repeat and First Time Orders 200,000 190,000 45,000 180,000 40,000 170,000 35,000 160,000 30,000 150,000 25,000 20,000 140,000 15,000 130,000 10,000 120,000 5,000 0 110,000 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q1
Slide 9: Customer profitability continues to improve
Customer profitability continues to improve For personal use only Revenue per Active Customer1 ($) Conversion Rate2 Year 1 Marketing ROI 2.50% $400 2.30% $115 2.10% $350 1.90% 1.70% $300 1.50% $54 $250 1.30% 1.10% $200 0.90% 0.70% $150 0.50% Margin per Active Marketing spend Customer3 ($) per First
Slide 10: Our business can now scale profitably
Our business can now scale profitably For personal use only FY16 FY17 FY18 Revenue 100% 100% 100% Gross Margin 39.9% 42.7% 44.3% Delivered Margin (after all 21.7% 27.6% 31.1% distribution costs) Customer Service & Merchant 4.9% 4.7% 3.3% Fees • Includes 100% of marketing and customer service costs M
Slide 11: Our top-line is now delivering operating leverage
Our top-line is now delivering operating leverage ↑13% For personal use only 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
Slide 12: Our plan to grow our market leadership in online furniture and homewares
Our plan to grow our market leadership in the online furniture and homewares market For personal use only 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 off
Slide 13: We are setting the business up for future growth horizons
We are setting the business up for future growth horizons For personal use only 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 Br
Slide 14: Trading update & outlook
Trading update & outlook The new financial year has started For personal use only strongly, with trading exceeding expectations. The revenue growth rate seen in Q4FY18 (28%) has accelerated into July. The Company remains confident of delivering its maiden full year profit in FY19. Page 14
Slide 15: Q&A
For personal use only Q&A Page 15
Slide 16: 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 For personal use only to provide background information on the Company and its subsidiaries and is not an offer or invitation or rec
Slide 17: For personal use only
For personal use only Page 17
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