Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (July 2020)
24 slides from Temple & Webster's investor presentation, Jul 28, 2020
Slide 1: Full Year 2020 Investor Presentation
TEMPLE & WEBSTER GROUP LTD REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS: ABN 69 608 595 660 Unit 1, 1-7 Unwins Bridge Road St Peters NSW 2044 ASX ANNOUNCEMENT 28 July 2020 FULL YEAR 2020 INVESTOR PRESENTATION Temple & Webster Group Ltd attaches an Investor Presentation for the full year 2020 re
Slide 2: FY20 Investor Presentation
FY20 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 3: Summary
Summary Pre Audit FY20 Revenue FY19 Revenue • H2 revenue up 96% vs pcp; Q4 revenue up 130% vs pcp $176.3m $101.6m 74% growth YoY • Temple & Webster is the online FY20 EBITDA FY19 EBITDA market leader in furniture & homewares $8.5m $1.5m 483% growth YoY • Large addressable market with accelerating on
Slide 4: Executive Summary
Executive Summary • Furniture & homewares is a $14.6b market (excluding appliances and DIY) Significant growth • Online adoption in Australia lags US/UK markets opportunity • Shift to online driven by demographic changes accelerated by the COVID-19 crisis • Temple & Webster positioned as “affordable
Slide 5: Temple & Webster is the leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares Page impressions (JUNE) Active customers (LTM) ~32m ~480k Website users (JUNE) Product listings ~3.8m ~180k Email subscribers Sub-categories ~2.5m ~200 Social media reach Average time to dispatch ~735k ~1.8 days Source: www.te
Slide 6: Our core furniture and homewares category is a $14.6b market
Our core furniture and homewares category is a $14.6b market, with accelerating online adoption Furniture and Homewares Market (AUS) Hypothetical adoption curve for online penetration in the furniture & homewares market: Australia lags US/UK markets 2019 Data Total $14.6b UK: 16.6% (2019) Online US:
Slide 7: Demographic and structural changes will drive strong market growth
Demographic and structural changes will drive strong market growth for years to come 1 Millennials are entering our core demographic 2 Structural changes in our favour Hypothetical distribution of homewares • Offline exits/store closures and furniture spend by age • New consumer habits forming durin
Slide 8: 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 9: Active customers up 77% year on year
Active customers up 77% year on year ↑13% Active Customers Repeat and First Time Orders 510,000 160,000 460,000 140,000 410,000 120,000 360,000 100,000 310,000 80,000 260,000 60,000 210,000 40,000 160,000 20,000 110,000 0 First Time Repeat NB. Active customers are the number of unique customers who
Slide 10: Customer metrics remain strong
Customer metrics remain strong 12 month Marketing ROI Revenue per Active Customer2 Conversion Rate3 holding at ~2.6x1 2.8 $390 3.0% 2.4 $380 $370 2.5% 2.0 $360 1.6 $350 2.0% $340 1.2 $330 1.5% 0.8 $320 $310 1.0% 0.4 $300 0.5% 0.0 As at 30 June 2019 As at 30 June 2020 Customer Acquisition $43 $46 Cos
Slide 11: Market leadership and scale are leading to market share growth
Market leadership and scale are leading to market share growth Closer relationships We are growing our market share – with suppliers Average from April/May vs pcp with better terms More Bigger 136% inspirational investment in content & technology services and platform 54% 49% Market share Deeper gro
Slide 12: H2 was focused on scaling the business while keeping high customer satisfaction
H2 was focused on scaling the business while keeping a high level of customer satisfaction We grew our customer satisfaction scores to our highest levels while adding record volumes of first Working with all key Business vendors to ensure time customers Continuity continuity of critical Planning ser
Slide 13: We continue to innovate our digital offering
We continue to innovate our digital offering iOS App approved Data integration with AI generated room idea collections during H2 by Apple; each freight carrier to helping customers to navigate our launch deferred to Q1 enable full end to end huge range and complete their FY21 tracking of deliveries,
Slide 14: Our Trade and Commercial (B2B) division had a great year
Our Trade and Commercial (B2B) division had a great year despite the challenging conditions Trade & Commercial grew revenue by 68% yoy, despite 3 We have set up sector specific teams and increased our 1 facing a challenging second half range of trade specific products. For example, our developer foc
Slide 15: Drivers to continue growing market share from a position of strength
Drivers to continue growing market share from a position of strength Add depth and Increase brand Expand digital breadth across our core awareness from 35% to capabilities: data, and adjacent +80% through digital personalization, AI, categories; grow private and non-digital augmented reality label (
Slide 16: FY20 Financial Results
FY20 Financial Results Mark Tayler CFO Page 15
Slide 17: We are pursuing a high growth strategy
We are pursuing a high growth strategy Short-mid term Longer term Leverage scale / High growth / win the market grow profit Revenue • Market leader takes a disproportionate share • Continue to take advantage of longer-term of accelerating online penetration online market penetration • Pursue organic
Slide 18: Profit and loss
Profit and loss Pre Audit • Revenue growth for the year vs pcp was 74% with H2 delivering growth A$m FY19 FY20 of 96% vs pcp and Q4 130% vs pcp Revenue 101.6 176.3 • Delivered margin (gross margin after distribution costs) remains on Cost of Sales (56.3) (97.7) target at ~30% Gross Margin 45.3 78.6
Slide 19: High growth strategy is already translating into operating leverage
High growth strategy is already translating into Pre Audit operating leverage FY17 FY18 FY19 FY20 Revenue 100% 100% 100% 100% Gross Margin 42.7% 44.1% 44.6% 44.6% Delivered Margin (after all 27.6% 31.0% 30.1% 30.6% distribution costs) Customer Service Staff & 4.7% 3.3% 3.3% 3.3% Merchant Fees Advert
Slide 20: Capital light/cash flow positive business model
Capital light/cash flow positive business model Pre Audit Closing cash by half $000 40,000 • Strong balance sheet position with no debt 35,000 • Closing cash balance of $38.1m (excludes proceeds from recent $40m placement) 30,000 • Cash flow positive year +$24.6m was driven by the positive 25,000 EB
Slide 21: Trading update & outlook
Trading update & outlook FY21 has started strongly with July’s revenue growth rates in line with those experienced throughout Q4. Temple & Webster is committed to a high growth strategy to take advantage of the structural shift towards online, capitalising on both organic and inorganic opportunities
Slide 22: Q&A
Q&A Page 21
Slide 23: 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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