Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Shareholder Meeting (October 2019)
25 slides from Temple & Webster's shareholder meeting presentation, Oct 23, 2019
Slide 1: Chairman's and CEO's address to AGM
TEMPLE & WEBSTER GROUP LTD ABN 69 608 595 660 ASX Announcement 23 October 2019 For personal use only AGM Address Chairman’s address to AGM The 2019 financial year was a great one for the company; • The group delivered a full year revenue result of $101.6m, up 41% year on year, which in the context o
Slide 2: CEO address: FY19 operating leverage and customers
TEMPLE & WEBSTER GROUP LTD ABN 69 608 595 660 This slide shows how we got there. Over the year, we built upon the work completed in the years prior. Importantly, our gross margin improved to 44.6% due to smarter pricing, private label growth and securing better terms from our suppliers. Our advertis
Slide 3: CEO address: achievements and growth plan
TEMPLE & WEBSTER GROUP LTD ABN 69 608 595 660 • We also opened our first “by appointment” showroom in Sydney for our Trade & Commercial customers. This space allows our clients to meet their dedicated account manager, review designs and product selections, and touch and feel key lines and samples. F
Slide 4: CEO address: B2C initiatives and B2B division
TEMPLE & WEBSTER GROUP LTD ABN 69 608 595 660 points and are getting ready for the augmented/virtual reality trend which we see as becoming increasingly important for our sector over the next few years For personal use only • We continue to run our own delivery pilot and are working with our freight
Slide 5: CEO address: outlook, strategy and team
TEMPLE & WEBSTER GROUP LTD ABN 69 608 595 660 retail and housing market conditions. Given the nascent stage of the online furniture and homewares market and the positive structural For personal use only changes, we remain committed to our strategy of investing now to ensure Temple & Webster is the b
Slide 6: FY19 October 2019
For personal use only FY19 AGM Presentation 23 October 2019 Page 1
Slide 7: Stephen Heath, Chairman
For personal use only Stephen Heath Chairman Page 2
Slide 8: Summary
Summary For personal use only FY19 Revenue FY18 Revenue • Temple & Webster is the $101.6m $72.2m online market leader in 41% Growth YoY furniture & homewares FY19 EBITDA FY18 EBITDA • Large addressable market, $1.1m ($0.7m) of which only 4-5% moved online Jun-19 Cash Jun-18 Cash • Business is now tr
Slide 9: Mark Coulter, CEO
For personal use only Mark Coulter CEO Page 4
Slide 10: Operating leverage delivered the Group's first full year of profit
Operating leverage delivered the Group’s first full year of profit For personal use only FY17 FY18 FY19 Revenue 100% 100% 100% Gross Margin 42.7% 44.1% 44.6% • Better terms; more private label Delivered Margin (after all 27.6% 31.0% 30.1% distribution costs) Customer Service Staff & 4.7% 3.3% 3.3% M
Slide 11: Active customers up 37% year on year
Active customers up 37% year on year ↑13% For personal use only Active Customers Repeat and First Time Orders 290,000 60,000 270,000 50,000 250,000 230,000 40,000 210,000 190,000 30,000 170,000 20,000 150,000 130,000 10,000 110,000 0 First Time Repeat NB. Active customers are the number of unique cu
Slide 12: 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 • Faster internet and mobile speeds and furniture spend by age eg. NBN,
Slide 13: We continue to innovate our offering
FY19 Key launches: We continue For personal use only to innovate Increased range by 25%, to 150k products our offering Added ”Shop the Look” Begun to invest in DIY/ home functionality with 500+ improvement category proprietary images Expanded private label range into homewares Added personalisation
Slide 14: FY19 Key launches: Site functionality
FY19 Key launches: Site functionality For personal use only Product Recommendations Room Ideas / Shop the Look Using AI and machine learning Leveraging back catalogue of proprietary imagery Page 9
Slide 15: FY19 Key launches: Showroom & Studio
FY19 Key launches: Showroom & Studio For personal use only By appointment New showroom photographic Personal service studio with dedicated Dedicated account manager photographic for our Trade & studio; multiple Commercial room sets; customers; touch & warehouse feel key product storage for new lines
Slide 16: It's all about the customer
It’s all about the customer For personal use only Net Promoter Score (score range: -100% to 100%) 70% 60% 50% 40% 30% 20% 10% 0% Best pureplay finalist 2019 Page 11
Slide 17: Our plan to grow our leadership in the online B2C market
Our plan to grow our leadership in the online B2C furniture and homewares market For personal use only Add depth and Leverage scale to Increase brand breadth across our core obtain cost advantage awareness from 31% to categories (including and exclusivity on new +80% through digital DIY); expand pri
Slide 18: Trade and Commercial (B2B) division grew 38% year on year
Our Trade and Commercial (B2B) division grew 38% year on year For personal use only Our B2B Customer Proposition B2B Sales $’000s. $2,400 $2,000 $1,600 $1,200 $800 $400 $0 Sales/revenue is pre deferred revenue and refund accounting adjustments Repeat and First Time Orders 2,000 1,600 1,200 800 400 0
Slide 19: Our plan to grow our market share of the B2B market
Our plan to grow our market share of the B2B furniture and homewares market For personal use only Add Trade & Add inbound sales staff Continue pilot of Commercial exclusive (onshore & offshore); Sydney by product ranges and outbound appointment business development showroom managers Continue to impr
Slide 20: Trading update & outlook
Trading update & outlook FY20 has started strongly with YTD trading (to Oct 15) For personal use only up 45% year on year and contribution margins within our target ranges. The company remains committed to a high growth strategy to take advantage of the structural shift towards online. TPW will be r
Slide 21: Questions
For personal use only Questions Page 16
Slide 22: Resolutions
For personal use only Resolutions Page 17
Slide 23: Meeting Closed
For personal use only Meeting Closed Page 19
Slide 24: 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 For personal use only to provide background information on the Company and its subsidiaries and is not an offer or invitation or rec
Slide 25: For personal use only
For personal use only Page 21
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