Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — H1 2025 Earnings Presentation
23 slides from Temple & Webster's earnings presentation, Feb 13, 2025
Slide 1: H1 FY25 Investor Presentation
H1 FY25 Investor Presentation 13 FEB 2025
Slide 2: Agenda
Agenda 01 Business and Strategy Update MARK COULTER CEO 02 H1 FY25 Financial Results CAMERON BARNSLEY CFO 03 Trading Update and Outlook MARK COULTER CEO 04 Q&A Page 2
Slide 3: Business and Strategy Update
01 Business and Strategy Update MARK COULTER CEO Page 3
Slide 4: Revenue growth 24%, taking market share, strong margins
Revenue growth 24%, taking market share, strong margins Revenue growth Strong margins and Executing well H1 FY25 revenue within our target cash flow, on track for towards our mid- range, significant market share gains full year margin guidance term goal of $1b+ in annual revenue $314m +24% on H1 FY2
Slide 5: Key performance indicators remain strong
Key performance indicators remain strong 1 Active customers are RECORD ACTIVE CUSTOMERS,1 +22% VS PCP CONTINUED GROWTH IN ORDERS FROM BOTH 12-MONTH MARKETING ROI3 REMAINS IN the number of all NEW & REPEAT CUSTOMERS, TOTAL ORDERS LINE WITH EXPECTATIONS DURING unique customers who have transacted +16%
Slide 6: Our strategy is to take advantage of a once in a generation structural change
Our strategy is to take advantage of a “once in a generation” structural change to build a platform for growth ↑13% We believe that now is the time to accelerate our market …and we are executing to this plan, with our market share share growth, with the goal of becoming the largest retailer of hitti
Slide 7: Our mid-term goal of $1b+ in annual sales remains unchanged
Our mid-term goal of $1b+ in annual sales remains unchanged ↑13% FY23 FY24 Mid-Term1 Commentary/Assumptions Core business: B2C Furniture & Homewares $335m $424m >$800m • Total market (online & offline) view: Although there are Revenue some tailwinds (e.g., immigration), assuming the market remains a
Slide 8: Our strategic plan
Our strategic plan 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 inspirational content PROMISE and services and a great delivery and customer service experience OUR MID- TERM1 STRATEGIC 01 02 03 04 05
Slide 9: We are tracking to plan across all of our strategic goals
We are tracking to plan across all of our strategic goals 01 02 Become the top-of-mind Majority of revenue from brand in the category exclusive products to build brand equity and to solidify our position drive market share gains of having the best range • We continue to optimise our marketing • Reve
Slide 10: We are tracking to plan across all of our strategic goals (cont.)
We are tracking to plan across all of our strategic goals (cont.) 03 04 05 Leading capabilities Lower fixed cost % to obtain Build scale through around data, AI & a price and margin adjacent growth plays technology advantage to continue diversifying to drive conversion and to improve pricing and uni
Slide 11: Home improvement is the fastest growing category of T&W
Home improvement is the fastest growing category of T&W SELECTED TEMPLE & WEBSTER PRIVATE LABEL HOME IMPROVEMENT • Our home improvement business continues to grow strongly, providing us PRODUCTS with access to a $17b+1 market with no online-only dominant market player and low online penetration • H1
Slide 12: H1 FY25 Financial Results
02 H1 FY25 Financial Results CAMERON BARNSLEY CFO Page 12
Slide 13: Financial highlights
Financial highlights H1 FY25 H1 FY25 H1 FY25 fixed costs revenue delivered margin as % of revenue $314m $102m 10.5% +24% on H1 FY24 +26% on H1 FY24 vs 10.7% for H1 FY24 H1 FY25 H1 FY25 free cash Cash balance as at EBITDA margin1 flow generation2 31 December 20243 4.2% $33m $139m +126bps on H1 FY24 +
Slide 14: Results demonstrate our focus on disciplined growth
Results demonstrate our focus on disciplined growth A$m H1 FY24 H1 FY25 $ Change % Change • Revenue for H1 FY25 +24% vs pcp, driven by growth in Revenue 253.8 313.7 59.9 23.6% repeat and new active customers, increase in AOV, and a positive deferred revenue result (checkout revenue +22% (-) Cost of
Slide 15: Robust balance sheet reflects capital light nature of our business
Robust balance sheet reflects capital light nature of our business A$m 30-Jun-24 31-Dec-24 $ Change % Change • Ending cash position of $139m1, increased by 30% from Cash & Cash Equivalents1 107.2 139.3 32.1 29.9% FY24 Inventories 26.5 28.3 1.8 6.9% • Strong cash balance provides us with flexibility
Slide 16: Continued growth in free cash flow generation provides capital management flexibility
Continued growth in free cash flow generation provides us with capital management flexibility A$m H1 FY24 H1 FY25 $ Change % Change Our capital management priorities EBITDA 7.5 13.2 5.7 76.3% 01 • Appropriate liquidity Ensure the business has (+) Change in Net Working Capital 11.5 19.5 8.0 69.4% buf
Slide 17: Our model allows us to reinvest for growth whilst expanding margins
Our model allows us to reinvest for growth whilst expanding margins over the long-term T&W Group FY24 FY25 Long Term • As the leading online retailer in the furniture and homewares category in Australia with $139m in cash, no debt, high customer Revenue 100% 100% 100% satisfaction levels and a scala
Slide 18: Trading Update and Outlook
03 Trading Update and Outlook MARK COULTER CEO Page 18
Slide 19: Trading update and FY25 outlook
Trading update and FY25 outlook • The market share gains and revenue growth demonstrated in H1 FY25 have continued into H2 FY25 • Revenue from 1 January to 10 February 2025 is up 16% year-on-year,1 despite the challenges of the cost-of- living crisis • The February growth rate has accelerated to 19%
Slide 20: Q&A
04 Q&A Page 20
Slide 21: Appendix: H1 FY25 IFRS / EBITDA Reconciliation
Appendix: H1 FY25 IFRS / EBITDA Reconciliation A$m H1 FY25 Net Profit Before Tax 12.5 Adjustments: Add: Depreciation and Amortisation 2.9 Add: Interest on Lease Liabilities 0.5 Less: Interest Income (2.8) EBITDA 13.2 Page 21
Slide 22: 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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