Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (January 2019)
24 slides from Temple & Webster's investor presentation, Jan 30, 2019
Slide 1: H1FY19 Investor Presentation
H1FY19 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: H1 Summary
H1 Summary Pre Audit H1FY19 Revenue H1FY18 Revenue • Temple & Webster is the $49.3m $35.2m online market leader in 40% Growth YoY furniture & homewares H1FY19 EBITDA H1FY18 EBITDA • $13.6b total market, ~4% $0.9m ($0.5m) moved online • Business is now trading Dec-18 Cash Jun-18 Cash profitably with
Slide 3: H1 Summary Cont.
H1 Summary Cont. • 40% year on year revenue growth • Shift to online driven by demographic changes independent of High growth, even in a weak macroeconomic factors housing market • Temple & Webster positioned as “affordable beauty”, appealing to value conscious shopper • Furniture & homewares is a $
Slide 4: Temple & Webster is the leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares Page impressions (MONTHLY) Active customers (LTM) ~11m ~231k Website users (MONTHLY) Product listings ~1.2m ~120k Email subscribers (WEEKLY) Sub-categories ~1.6m ~190 Social media reach Average time to dispatch ~510k ~2 days S
Slide 5: Our core furniture and homewares category is a $13.6 billion market, with only ~4% online
Our core furniture and homewares category is a $13.6 billion dollar market, with only ~4% migrated online Furniture and Homewares Market (AUS) Furniture and homewares online penetration rates by country 2017 Data 2017 Data 16% 14.2% 13.7% 14% 12% 10% 8% 6% 3.9% 4% 2% 0% Australia US UK CY17 Source:
Slide 6: Demographic and structural changes will drive strong market growth for years to come
Demographic and structural changes will drive strong market growth for years to come 1 Millennials are now entering our core demographic 2 Structural changes in our favour Hypothetical distribution of homewares • Faster internet and mobile speeds and furniture spend by age eg. NBN, 5G • New market e
Slide 7: Our strategy is based on range, inspiration and service
Our strategy is based on range, inspiration and service Our Core Belief • We believe everyone wants to live more beautifully. Our Vision • Our vision is to make the world more beautiful, one room at a time. • Our mission is to deliver beautiful solutions for our customers’ homes and work Our Mission
Slide 8: It's all about the customer
It’s all about the customer Net Promoter Score (score range: -100% to 100%) 70% 60% 50% 40% 30% 20% 10% 0% Key initiatives to further Enforcing quality Taking more control Category experts within drive customer satisfaction standards across over delivery experience customer care team supplier base P
Slide 9: Active customers grew 32% year on year
Active customers grew 32% year on year ↑13% Active Customers Repeat and First Time Orders 250,000 230,000 60,000 210,000 50,000 190,000 40,000 170,000 30,000 150,000 20,000 130,000 10,000 110,000 0 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 2Q17 3Q17 4Q17 1Q18 2Q
Slide 10: Customer metrics have all improved year on year
Customers metrics have all improved year on year Year 1 Marketing ROI Revenue per Active Customer3 Conversion Rate4 3.0% $390 $114 2.5% $370 $350 2.0% $56 $330 $310 1.5% $290 1.0% $270 Marketing spend $250 0.5% Margin per Active per First Time Customer2 ($) customer1 ($) 1. Marketing spend per First
Slide 11: Our business is now scaling profitably
Our business is now scaling profitably Pre Audit FY16 FY17 FY18 H1FY18 H1FY19 Revenue 100% 100% 100% 100% 100% Gross Margin 39.9% 42.7% 44.2% 44.2% 44.6% Delivered Margin (after all 21.7% 27.6% 31.0% 30.8% 30.5% distribution costs) Customer Service Staff & 4.9% 4.7% 3.3% 3.1% 3.1% Merchant Fees Cost
Slide 12: Our Trade and Commercial (B2B) division grew 35% year on year
Our Trade and Commercial (B2B) division grew 35% year on year Our B2B Customer Proposition B2B Sales $’000s. $1,600 $1,200 $800 $400 $0 Repeat and First Time Orders 1,400 1,200 1,000 800 600 400 200 0 First Time Trade & Commercial Customer Orders Repeat Trade & Commercial Customer Orders Page 12
Slide 13: We continue to innovate our offering
We continue to innovate our offering Product Recommendations Room Ideas / Shop the Look Using AI and machine learning Leveraging back catalogue of proprietary imagery Page 13
Slide 14: H1FY19 Financial Results
H1FY19 Financial Results Mark Tayler CFO Page 14
Slide 15: Profit and loss
Profit and loss Pre Audit • H1 growth rate of 40% (numbers reflect the adoption of AASB15) H1FY18 AASB 15 H1FY18 H1FY19 A$m Pre Adj Adjustment Post Adj Adoption of AASB 15 (Revenue from Contracts with Customers) provides a new framework for revenue recognition, shifting from previous principles of “
Slide 16: Top-line growth is delivering operating leverage
Top-line growth is delivering operating leverage Pre Audit ↑13% Revenue by Half EBITDA by Half 52,000 4,000 48,000 2,000 44,000 0 40,000 36,000 -2,000 32,000 -4,000 28,000 -6,000 24,000 20,000 -8,000 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 H1 FY16 H2 FY16 H1 FY17 H2 FY17 H1 FY18 H2 F
Slide 17: Balance sheet & cash flow
Balance sheet & cash flow Pre Audit A$m 30-Jun-18 31-Dec-18 • Strong balance sheet position with no debt Cash & Cash Equivalents 9.9 11.5 • Inventory and creditor metrics (WOC/DPO/Ageing profile) all continue to track Inventories 2.3 3.4 within target ranges Other current assets 1.3 1.5 • Cash flow
Slide 18: Strategy & Outlook
Strategy & Outlook Page 18
Slide 19: Our plan to grow our market leadership in online furniture and homewares
Our plan to grow our market leadership in the online furniture and homewares market Add depth and Leverage scale to Increase brand breadth across our core obtain cost advantage awareness through categories, expand and exclusivity on new digital and non-digital private label offering product ranges c
Slide 20: We are setting the business up for future growth horizons
We are setting the business up for future growth horizons Offline New business Addressable B2B Adjacent lines, new markets furniture & furniture & Categories geographies fitout homewares Online furniture & homewares Maintain and Accelerate Continue to Broaden current DIY FY19 Plan offering Trial NZ
Slide 21: Trading update & outlook
Trading update & outlook January has started strongly with trading exceeding H1 FY19’s year on year growth rate of 40%. The Company remains confident of delivering its maiden full year profit in FY19. Page 21
Slide 22: Q&A
Q&A Page 22
Slide 23: 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
Slide 24: Temple & Webster
TEMPLE WEBSTER
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