Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (August 2023)
21 slides from Temple & Webster's investor presentation, Aug 15, 2023
Slide 1: FY23 Investor Presentation
FY23 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: FY23 within guidance, business back to growth
FY23 within guidance, business back to growth $396m FY23 EBTIDA • FY23 revenue $396m, retained ~90% of COVID-19 revenue FY23 within guidance • FY23 EBITDA margin 3.7% (within guidance of 3-5%) Revenue • H2 FY23 EBITDA $ up 80% vs H2FY22 • FCF of $17.0m (before share buyback and Renovai investment) $
Slide 3: FY23 Key Performance Indicators
FY23 Key Performance Indicators ACTIVE CUSTOMERS RETAINED 54% OF CUSTOMERS ARE MARKETING ROI1 IS HOLDING AND ↑13% ~90% OF PEAK COVID-19 NUMBERS REPEATING CUSTOMERS ALLOWS ROOM FOR GROWTH FOCUS 941k 832k 620k 628k 2.7x 2.6x 778k 565k 574k 2.3x First Time 491k Customer 2.0x 2.0x 463k Repeat 480k 361k
Slide 4: Targeting $1b+ in annual sales in 3-5 years
Targeting $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 Furniture & (immigration etc.) we have assumed the market remains at its current $19.3b size Homewares Revenue • Online pene
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 experience & customer service 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 We will be investing in awareness for furniture & brand equity and salience and brand marketing from homewares amongst shoppers drive our market share FY24 onwards % of Australian consumers spontan
Slide 7: Majority of revenue from exclusive products
02 Majority of revenue from exclusive products Our focus is to deliver the A unique catalogue will In FY24 and beyond we will majority of revenue from solidify our position of having be investing in our buying exclusive products the best range and sourcing capabilities Revenue split by product type
Slide 8: Leading capabilities around data, AI, technology
03 Leading capabilities around data, AI, technology We have the leading Building market leading data and AI capabilities to drive conversion rate out of the further customer conversion and cost-base efficiencies large retailers dedicated to the home within Australia • Renovai (Israeli R&D team) deli
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 significantly We will lower our fixed costs through; decrease our fixed costs as % of sales Increasing scale Fixed costs (wages and overheads as a • Given we do not have physical store costs, our fixed cost base will % of
Slide 10: Build scale through adjacent growth plays
05 Build scale through adjacent growth plays Building out current and future Growth plays will leverage In FY24 we will be investing in growth plays will diversify our the Group’s core capabilities B2B and Home Improvement revenue mix while adding scale Trade & Commercial (B2B) % of Group revenue fr
Slide 11: Temple & Webster has emerged as the best brand/site to sell Home Improvement
05 Temple & Webster has emerged as the best brand/site to sell Home Improvement “The Build” has successfully launched the Group into Home Improvement • The Build was a pilot site to launch our Home Improvement offering (range was replicated on Temple & Webster) • $23m Group Home Improvement revenue
Slide 12: 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 we do not have Scale allows us to increase with scale. For predictions of best sellers increase investment in stores, our fixed cost base increase investment
Slide 13: FY23 Financial Results
FY23 Financial Results Page 13
Slide 14: FY23 result within our 3-5% target range, H2 EBITDA up vs LY
FY23 result within our 3-5% target range, H2 EBITDA up vs LY • Q4FY23 saw a return to YoY revenue growth (a period that was not materially impacted by cycling COVID-19 comparisons) and a return to market share gains • Increases in private label share of revenue and favorable positions with suppliers
Slide 15: Positive cash generation, balance sheet strength provides flexibility
Positive cash generation, balance sheet strength provides flexibility Balance sheet remains Inventory being managed Current balance sheet position strong with cash levels well; our negative working can fund organic and inorganic of $105m and no debt. capital drop ship (~70%) plans with optionality t
Slide 16: 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 T&W Group FY23 FY24/25 Long Term Longer-term assumptions periods, we are returning to our growth strategy as the category disrupter Revenue 100% 100% 100% • FY24/25 will be focused on high Scale be
Slide 17: Trading Update & Outlook
Trading Update & Outlook Page 17
Slide 18: Trading update & outlook
Trading update & outlook • The positive momentum from Q4 has continued into FY24 with revenue from the 1st July to the 13th August up 16% vs pcp driven by both repeat and first-time customer growth • We are well positioned to manage near-term macro headwinds, and this environment provides an opportu
Slide 19: Q&A
Q&A Page 19
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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