Slide 1: Annual Results 30 June 2016
For personal use only Annual Results 30 June 2016 Mark Coulter CEO Mark Tayler CFO
Slide 2: For personal use only
For personal use only
Slide 3: Summary
Summary For personal use only Pro forma Pro forma Management revenue $61.7m Ebitda ($14.8m) Team Within revised guidance refreshed Within revised guidance of $60-62m loss of $14-15m Strategic plan implemented Fy17 priorities Stronger $12.6b • Execute vision of delivering " q4 market beautiful soluti
Slide 4: We operate in a $12.6 billion dollar market, with only ~4% migrated online
We operate in a $12.6 billion dollar market, with only ~4% migrated online For personal use only A$12.6 billion addressable market Furniture and homewares online penetration rates by country from CY12 to CY15. Total A$12.6b Source: Euromonitor International Limited; Home Furnishings Source: Euromoni
Slide 5: The Group runs two market leading websites
The Group runs two market leading websites For personal use only #1 online only retailer in category Specialist online furniture retailer Largest range in Australia – 147k products 10 year history Database: 1m+ newsletter subscribers Office and residential sales Famous for content and curation Direc
Slide 6: We have recently refreshed our management team
We have recently refreshed our management team For personal use only Mark Coulter Mark Tayler Adam McWhinney Michael Henriques Interim Chief Interim Chief Group Chief Experience Chief Information Executive Officer Financial Officer Officer, T&W Officer, T&W Mark is a co-founder of Mark joined Temple & Webst
Slide 7: We have recently refreshed our management team (cont.)
We have recently refreshed our management team (cont.) For personal use only Dean Ramler Susie Sugden Sven Lindell Kate Perkins Christie Executive General Chief Commercial Chief Marketing Head of Buying, McGuinness Manager, MD Officer, T&W Officer, T&W T&W Human Resources Dean is founder and Susie is a
Slide 8: Cost per First Time Customer
Our focus on improving marketing has grown first time customers with cost per first time customer decreasing For personal use only • Initial channel mix First Time Customers and Cost 50,000 $120.00 focused on building per FT Customer (Quarterly) 14,000 $120.00 brand awareness 45,000 12,000 impacted
Slide 9: We have completed the first phase of our cost reduction program
We have completed the first phase of our cost reduction program For personal use only Monthly cash burn reduced by $400k+ ✔ Combined T&W and ZIZO $400k+ ✔ Marketing ROI improvement ✔ Employment related expenses reduced ✔ Shipping and fulfillment costs reduced ✔ General OPEX reduction JAN/FEB 2016 AV
Slide 10: The relaunched Temple & Webster site is working
The relaunched Temple & Webster site is working For personal use only May/June year on year 147k+ Organic Conversion (templeandwebster. com.au) products search traffic steady *Google Analytics – 01 May 2015 to 31 Jul 2015 Comp YOY Site Basket Average visits size ship time Key = +/- 5% +/-10% +/-10-3
Slide 11: Both Active Customers and Revenue per Customer grew in Q4
Both Active Customers and Revenue per Customer grew in Q4 For personal use only Active Customers Net Revenue per Active Customer 200,000 $340 190,000 $320 180,000 $300 $280 170,000 $260 160,000 $240 150,000 $220 An Active Customer is a customer that has made at least one purchase over the last 12 mo
Slide 12: FY16 Key Financials
For personal use only FY16 KEY FINANCIALS
Slide 13: Pro Forma profit and loss
Pro Forma profit and loss Key observations A$m FY13 FY14 FY15 H1 H2 FY16 • Revenue up 3.0% for the year. For personal use only Double digit growth rates realised post Revenue 29.9 46.1 59.9 32.1 29.5 61.7 integration of ZIZO/TPW (April 2016) Cost of Sales (17.5) (26.8) (35.2) (19.8) (17.2) (37.0) Gr
Slide 14: Reconciliation of Statutory Results to Pro Forma Results
Reconciliation of Statutory Results to Pro Forma Results For personal use only Revenue Reconciliation FY16 Pro Forma Results A$m FY16 • Include revenue reflecting 12 months Statutory revenue 50.8 revenue for Temple & Webster, Milan Milan Direct revenue pre acquisition Direct and ZIZO 10.0 ZIZO reven
Slide 15: Statutory balance sheet
Statutory balance sheet For personal use only A$m 30-Jun-16 Key observations • Strong balance sheet with +$18m Assets cash and zero debt Cash & Cash Equivalents 18.4 Inventories 3.5 • Cash generation significantly up in Q4 due Other current assets 1.2 to improved trading and the implementation Intan
Slide 16: Strategy & outlook
For personal use only Strategy & outlook
Slide 17: Four strategic priorities
For personal use only 1. 2. 3. 4. Execute Double Push Set up vision of digit towards for future delivering revenue profitability growth beautiful growth solutions © 2016 Temple & Webster Group Pg 17 Commercial in confidence
Slide 18: Execute vision to deliver beautiful solutions for our customers' homes
1. Execute vision to deliver beautiful solutions for our customers’ homes and work spaces For personal use only Expand range, focus on Shoppable content eg. styled Tech innovations Virtual styling advice in Improved last mile catalogue improvement shoots, complete rooms, video eg. AR, new mobile sit
Slide 19: With visits at ~50%, mobile experience is a key focus for innovation
With visits at ~50%, mobile experience is a key focus for innovation For personal use only Snap, find, shop (to be launched later in the year) Augmented reality shopping Explore and shop the look © 2016 Temple & Webster Group Pg 19 Commercial in confidence
Slide 20: Double digit revenue growth
2. Double digit revenue growth For personal use only Online market growth + Take greater share Traffic acquisition Conversion Basket size Repeats Focus on SEO; digital range, price, cross sell, up sell, delivery experience, ecommerce marketing, brand merchandising, mix, add-ons personalisation, basics
Slide 21: Push towards profitability
3. Push towards profitability Achieve Well Breakeven For personal use only capitalised, with better § Integrate Milan Direct and T&W (back end) cash management § Continue to drive scale procedures § Integrate T&W and ZIZO benefits, eg. fulfilment, business § Securing funding through a pre-IPO ca
Slide 22: Set up for future growth
4. Set up for future growth For personal use only A Showroom rollout B Trade program © 2016 Temple & Webster Group Pg 22 Commercial in confidence
Slide 23: Why we will win
Why we will win For personal use only Focus on Already #1 Largest Large and delivering and range and engaged beautiful capturing magazine customer solutions for scale quality database customers benefits content Best Loved team and and World Well talent in respected class tech capitalised platform ca
Slide 24: Q&A
For personal use only Q&A
Slide 25: Appendix
For personal use only appendix
Slide 26: FY16 has been a transformational year for the T&W Group
FY16 has been a transformational year for the T&W Group For personal use only October 2011 30 July 2015 Mid-Sept 2015 December 2015 Feb/Mar 2016 May 2016 • Temple & " • Acquisition of • Wayfair Australia • TPW Group lists • Sydney reorganisation • ZIZO merged Webster is born Wayfair Australia rebran
Slide 27: Disclaimer
Disclaimer This presentation (Document) has been prepared by Temple & Webster Group Limited ACN 608 595 660 (T&W Group or the Company). This For personal use only Document is a presentation to provide background information on the Company and its subsidiaries and is not an offer or invitation or rec
Slide 28: For personal use only
For personal use only