Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (February 2022)
26 slides from Temple & Webster's investor presentation, Feb 9, 2022
Slide 1: Temple & Webster Group Ltd H1 FY22 Investor Presentation
TEMPLE & WEBSTER GROUP LTD REGISTERED OFFICE: Unit 1, 1-7 Unwins Bridge Road ABN 69 608 595 660 St Peters NSW 2044 ASX ANNOUNCEMENT 9 February 2022 H1 FY22 Investor Presentation Temple & Webster Group Ltd attaches its H1 FY22 Investor Presentation. This document has been authorised for release by th
Slide 2: H1 FY22 Investor Presentation
H1 FY22 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 3: Summary
Summary $235.4m ↑46% ↑218% H1 FY22 Revenue vs H1 FY21 Revenue vs H1 FY20 Revenue Temple & Webster is the leading Strong growth with H1 Revenue up pure play online retailer for furniture 46% YoY and 218% on a 2-year basis & homewares in Australia H1 EBITDA, 5.1%, ahead of full Debt free balance sheet
Slide 4: H1 FY22 Business Update
H1 FY22 Business Update • We continue to be one of the fastest growing retailers in Australia Record half with strong growth • H1 Revenue up 46% YoY, up 218% on a 2-year basis • 6th straight quarter of revenue per active customer growth • EBITDA 5.1%, above the full year target range of 2-4% Investm
Slide 5: Our strategy is based on range, inspiration and service
Our strategy is based on range, inspiration and service Our Core Belief Our Vision Our Mission Our Goal We believe everyone Our vision is to make the Our mission is to deliver We believe if we can deliver on wants to live more world more beautiful, one beautiful solutions for our our strategic pilla
Slide 6: We are continuing to follow our strategy with strong growth in our core market
We are continuing to follow our strategy with strong growth in our core furniture and homewares market ↑13% Active Customer Growth Range & • Curated range: ~240k products from 500+ suppliers content a key across 210 categories 900,000 differentiator • 74% drop ship (no inventory risk) and 26% privat
Slide 7: Private Label share continues to grow
Private Label share continues to grow, supporting the group’s goal of the biggest and best range in our category Private label share (% of total sales) Private label High growth Private label has contribution up YoY categories include extended into despite significant Sofas, Living room and Baby & K
Slide 8: Supply chain diversity is mitigating short term disruptions; NPS tracking back to target
Supply chain diversity is mitigating short term disruptions; NPS tracking back to target levels Customer satisfaction (NPS) has been Despite supply chain headwinds, diversity within our supply chain is impacted by local logistics, however is helping us to navigate these challenges starting to track
Slide 9: 6th straight quarter of growth in Revenue per Active Customer
6th straight quarter of growth in Revenue per Active Customer ↑13% Revenue per active customer Conversion rate trend is Growth driven by new and repeat up 10% positive customers $500 3.5% 250,000 $450 3.0% 200,000 First Time Repeat $400 2.5% 150,000 $350 2.0% 100,000 $300 1.5% 50,000 $250 1.0% 0 Jun
Slide 10: Investments in Data and Technology are key drivers of improving cohort performance
Investments in Data and Technology are key drivers of improving cohort performance ↑13% AI based 3D/Augmented iOS and recommendations Reality Android Apps Complete the look functionality is 3D imagery is being used to complement 4.8 app rating for both platforms: iOS and supporting an increase in bo
Slide 11: 12-month marketing ROI is holding above as brand awareness increases
12-month marketing ROI is holding above 2 as brand awareness increases 12 month marketing ROI Brand awareness increase >2 with TV investment 2.4 60% 2.0 50% 1.6 40% 1.2 30% 0.8 20% No brand activity TV activity 0.4 10% 0.0 0% As at 31 Dec 2021 $66 Customer Acquisition Cost • • Brand marketing in ear
Slide 12: Our 2nd Growth Horizon, Trade and Commercial (B2B) grew 49% in H1
Our 2nd Growth Horizon, Trade and Commercial (B2B) grew 49% in H1 Revenue Our Trade division continued to show strong $’000s. growth despite challenging market conditions due to COVID-19 disruptions within the $8,000 hospitality and commercial sectors. $6,000 Key areas of focus included: $4,000 ● Th
Slide 13: Our 3rd Growth Horizon, Home Improvement grew 95% in H1
Our 3rd Growth Horizon, Home Improvement grew 95% in H1 Home ● Large, addressable market (~$26b, with ~$16b Improvement is addressable to T&W) an attractive ● Opportunity to maximise share of spend in the home growth horizon and realise synergies with core furniture & homewares business for Temple &
Slide 14: H1 FY22 Financial Results
H1 FY22 Financial Results Page 13
Slide 15: Reiterating our short-mid and longer term profile
Reiterating our short-mid and longer term profile Short-mid term Longer term High growth / win the market Leverage scale / grow profit Revenue Market leader takes a disproportionate share of accelerating online Continue to take advantage of longer term online market penetration penetration Execute o
Slide 16: H1 FY22 profit and loss results
H1 FY22 profit and loss results A$m H1FY20 H1FY21 H1FY22 Strong growth with Revenue growth Delivered margin H1 revenue up 46% driven by both in line with Revenue 74.1 161.6 235.4 vs FY21 and up 218% active customer expectations Cost of Sales (41.3) (88.1) (129.7) vs FY20 growth (34%) and (~30%) and
Slide 17: Cash position is allowing for investment into growth initiatives
Cash position is allowing for investment into growth initiatives A$m 30-Jun-21 31-Dec-21 Closing cash balance Positive cash flows Inventory metrics Assets of $105.5m and were predominately (WOC/ageing Cash & Cash Equivalents 97.5 105.5 no debt driven from operations profile/GMROI) Inventories 21.3 2
Slide 18: Strategy & Outlook
Strategy & Outlook Page 17
Slide 19: Online market penetration
Our core B2C furniture and homewares category is a ~$16b market, undergoing a structural shift towards online Hypothetical adoption curve for online penetration in the Furniture & Homewares market Aus US % 50%+ Online market penetration 40% 30% Short-Med term 2020: 25.3% 20% 2019: 15.2% 10% 2020e: 7
Slide 20: Home Improvement adds a further ~$16b to our addressable market
Home Improvement adds a further ~$16b to our addressable market Product class Tools & equipment Garden & landscaping Paint & supplies =$16.4b in scope Window furnishings market opportunity Flooring Online <5% Plumbing fixtures Other products Less than 5% moved online Source: ABS Retail Sale data Jan
Slide 21: 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 REINVEST FOR GROWTH STRONG CONSUMER PROPOSITION Use cash flows generated to reinvest in marketing, Trusted brand, large range of quality products and technology development, product ra
Slide 22: Growth Strategy
Growth Strategy 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 channels Add inspirational Focus on exception
Slide 23: Trading update & outlook
Trading update & outlook • The second half of FY22 has started strongly with YoY revenue growth of 26% for the period 1st January to the 6th of February vs. the same period in 2021, and up 161% vs 2020 • We remain confident our strategy is resonating with the next generation of shopper and that we a
Slide 24: Q&A
Q&A Page 23
Slide 25: 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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