Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (July 2020)
31 slides from Temple & Webster's investor presentation, Jul 1, 2020
Slide 1: ASX Announcement: Investor presentation
For personal use only Not for release to US wire services or distribution in the United States 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 1 July 2020 Investor presentation Temple
Slide 2: Investor Presentation July 2020
For personal use only Investor Presentation July 2020 Not for release to US wire service or distribution in the United States Page 1
Slide 3: Disclaimer
Disclaimer Summary Information For personal use only This presentation has been prepared by Temple & Webster Group Ltd 69 608 595 660 (Temple & Webster or the Company). This presentation contains information about Temple & Webster and its subsidiaries and is dated 1 July 2020. The information in thi
Slide 4: Disclaimer
Disclaimer Disclosure For personal use only Temple & Webster has prepared this Document based on information available to it to date and the Company is not obliged to update this Document. Certain information in this Document is based on independent third-party research. No representation or warrant
Slide 5: Disclaimer
Disclaimer Any forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without For personal use only notice and involve known and unknown risks and uncertainties and other factors which are beyond the con
Slide 6: Summary (YTD to May)
Summary (YTD to 31 May) For personal use only YTD FY20 Revenue • Temple & Webster is the online market leader in furniture & homewares $151.7m 68% growth vs pcp • Large addressable market with accelerating YTD FY20 EBITDA online adoption $7.1m • Business is profitable with strong top-line growth 668
Slide 7: Executive Summary
Executive Summary For personal use only • Furniture & homewares is a $13.9b market (excluding appliances and DIY) Significant growth • Online adoption in Australia lags other international markets opportunity • Shift to online driven by demographic changes accelerated by the COVID-19 crisis • Temple
Slide 8: Leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares For personal use only Page impressions (MAY) Active customers (LTM) ~29m ~440k Website users (MAY) Product listings ~3.5m ~180k Email subscribers Sub-categories ~2.4m ~200 Social media reach Average time to dispatch ~715k ~1.7
Slide 9: $13.9 billion market with accelerating online adoption
Our core furniture and homewares category is a $13.9 billion-dollar market, with accelerating online adoption For personal use only Furniture and Homewares Market (AUS) Hypothetical adoption curve for online penetration in the furniture & homewares market: Australia lags other markets 2018 Data US:
Slide 10: Demographic and structural changes will drive strong market growth
Demographic and structural changes will drive strong market growth for years to come For personal use only 1 Millennials are entering our core demographic 2 Structural changes in our favour Hypothetical distribution of homewares • Offline exits/store closures and furniture spend by age • New consume
Slide 11: Step change in sales while maintaining record customer satisfaction
The business has experienced a step change in sales ↑13% while maintaining record customer satisfaction levels For personal use only First time and Repeat Orders Net Promoter Score (score range: -100% to 100%) 50,000 45,000 40,000 70% 35,000 30,000 65% 25,000 60% 20,000 15,000 55% 10,000 50% 5,000 0
Slide 12: Market leadership and scale are leading to market share growth
Market leadership and scale are leading to market share growth For personal use only Closer relationships We are growing our market share – with suppliers Month of April vs pcp with better terms More Bigger inspirational investment in content & technology 129% services and platform 59% 55% Market sh
Slide 13: Drivers to continue growing market share
Drivers to continue growing market share from a position of strength For personal use only Add depth and Increase brand Expand digital breadth across our core awareness from 35% to capabilities: data, and adjacent +80% through digital personalization, AI, categories; grow private and non-digital aug
Slide 14: Financials & Equity Raise Summary
For personal use only Financials & Equity Raise Summary Mark Tayler CFO Page 13
Slide 15: YTD Results vs LY and June Update
YTD Results (to May 31) vs LY and June Update For personal use only A$m YTD FY19 YTD FY20 • YTD (to 31 May) revenue growth of 68% (H2 growth rate ~90%) Revenue 90.4 151.7 Cost of Sales (50.1) (84.0) • Contribution margin tracking above our target of ~15% Gross Margin 40.4 67.7 44.6% 44.6% • Operatin
Slide 16: Use of Proceeds
Use of Proceeds For personal use only • Proceeds of the Placement will be used to provide Temple & Webster with the financial flexibility to pursue strategic growth initiatives including initiatives to enhance the Company’s technology, product and service offering Sources $m Uses $m Flexibility to c
Slide 17: Placement Timetable
Placement Timetable For personal use only Event Date¹ Trading halt and announcement of the Placement Wednesday, 1 July 2020 Placement bookbuild Wednesday, 1 July 2020 Trading halt lifted and shares recommence trading Thursday, 2 July 2020 on ASX Settlement of Placement Tuesday, 7 July 2020 Allotment
Slide 18: Key Business Risks
For personal use only Key Business Risks Page Page 17 17
Slide 19: Key Risks
Key Risks For personal use only This section sets out some of the key risks associated with any investment in Temple & Webster, together with risks relating to participating in the Placement which may affect the value of securities in Temple & Webster • The risks are not set out in order of importan
Slide 20: Key Risks
Key Risks For personal use only Temple & Webster’s financial and operational performance could be adversely affected by a system failure that causes Performance and reliability of disruption to its websites, or to third party suppliers of its systems and products. This could directly damage the repu
Slide 21: Key Risks
Key Risks For personal use only Temple & Webster aims to continue its revenue growth, consideration of future acquisitions, potential offshore expansion and a Future growth may place consideration of a traditional offline offering such as retail showrooms. The Company anticipates that this will resu
Slide 22: Key Risks
Key Risks For personal use only Substantial parts of Temple & Webster’s online platforms, distribution software, applications, data analytics and customer Unauthorised use of databases are seen as proprietary information. Unauthorised parties may obtain or copy, or seek to imitate, all or portions o
Slide 23: Key Risks
Key Risks For personal use only Temple & Webster is subject to, and must comply with, a variety of laws and regulations in the ordinary course of its business. Laws and regulations may These laws and regulations include those that relate to fair trading and consumer protection, product safety, emplo
Slide 24: Key Risks
Key Risks For personal use only Temple & Webster’s suppliers and service providers are also subject to various risks which could limit their ability to provide Temple & Webster with sufficient, or any, products or services. Some of these risks include raw material costs, inflation, labour Political,
Slide 25: Key Risks
Key Risks For personal use only There is always the possibility that existing substantial shareholders (including directors) may seek to sell-down their shareholdings in Temple & Webster. A significant sale of shares or a perception that a sell-down may occur could adversely affect Sell-down by exis
Slide 26: Placement Agreement Summary
Placement Agreement Summary For personal use only Canaccord Genuity (Australia) Limited ACN 075 071 466 (Lead Manager) is acting as sole lead manager, bookrunner and underwriter of the Placement. Temple & Webster has entered into a placement agreement with the Lead Manager in respect of the Placemen
Slide 27: Placement Agreement Summary
Placement Agreement Summary For personal use only • a director or the chief executive officer or chief financial officer of Temple & Webster resigns or indicates that he or she does not intend to be a director or executive (as applicable) of Temple & Webster, for any reason other than incapacity; •
Slide 28: International Offer Restrictions
International Offer Restrictions For personal use only This document does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside
Slide 29: International Offer Restrictions
International Offer Restrictions For personal use only Section 138 of the Securities Act (Ontario) provides that no action shall be commenced to enforce these rights more than (a) in the case of any action for rescission, 180 days after the date of the transaction that gave rise to the cause of acti
Slide 30: International Offer Restrictions
International Offer Restrictions For personal use only Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other docum
Slide 31: For personal use only
For personal use only Page 30
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