Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — Investor Presentation (February 2021)
27 slides from Temple & Webster's investor presentation, Feb 25, 2021
Slide 1: H1 FY21 Investor Presentation
H1 FY21 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 2: Summary
Summary H1 FY21 Revenue H1 FY20 Revenue • Temple & Webster is the leading pure play online $161.6m $74.1m retailer for furniture & 118% growth vs pcp homewares in Australia H1 FY21 EBITDA H1 FY20 EBITDA • Large addressable market $14.8m $2.3m with accelerating online 556% growth vs pcp adoption Dec-
Slide 3: H1 FY21 Business Update
H1 FY21 Business Update Record performance • Revenue up 118%; EBITDA up 556% • Strong growth across all categories, geographies, channels & demographics • Scale increasing operating leverage, fixed costs as % of revenue decreasing Strengthened brand awareness • National TV campaign, significant lift
Slide 4: Temple & Webster at a glance
Temple & Webster at a glance Temple & Webster is the leading pure play online retailer for furniture & homewares in Australia, differentiating through range, inspirational content & service Leading pure play online retailer for furniture & Consistent Revenue Growth homewares • iOS App, desktop and m
Slide 5: Temple & Webster Private Label
Temple & Webster Private Label Key Initiatives Private Label Share (% of Total Sales) • Expanded Buying and Merchandise Planning teams for range development and inventory forecasting 18% 25% • Using data to expand range and fill price and product gaps • Testing machine learning forecasting software
Slide 6: Key initiatives driving conversion rate and customer satisfaction
Key initiatives driving conversion rate and customer satisfaction Conversion Rate Customer Satisfaction (NPS) 3.0% Net Promoter Score (score range: -100% to 100%) 70% 2.5% 65% 2.0% 60% 1.5% 55% 1.0% 50% 0.5% 45% Jun-17 Jun-18 Dec-20 Jun-19 Mar-18 Sep-17 Sep-18 Mar-19 Sep-19 Dec-19 Jun-20 Mar-20 Dec-
Slide 7: Aided brand awareness has increased to 55%
Aided brand awareness has increased to 55%, in part driven by national TV campaign in H1 • Successful pilot in June 20 led to a large increase in brand awareness (13 point increase vs. pre-TV campaign) • Christmas campaign ran Sept – Nov 2020 and yielded another 7 point increase in brand awareness •
Slide 8: Active customers up 102% year on year
Active customers up 102% year on year ↑13% Active Customers Repeat and First Time Orders 700,000 160,000 140,000 600,000 120,000 500,000 100,000 400,000 80,000 60,000 300,000 40,000 200,000 20,000 100,000 0 First Time Repeat Active customers are the number of unique customers who have transacted in
Slide 9: Customer metrics remain strong even with the increased investment into TV
Customer metrics remain strong even with the increased investment into TV 12 month Marketing ROI holding at Revenue per Active Customer up 6% due ~2.6x1 to a higher repeat rate2 2.8 $420 2.4 $400 2.0 1.6 $380 1.2 $360 0.8 $340 0.4 $320 0.0 $300 December 19 (LTM) December 20 (LTM) Customer Acquisitio
Slide 10: Our Trade and Commercial (B2B) division grew 89%
Our Trade and Commercial (B2B) division grew 89% 1 T&C has rebounded quickly with revenue up 89% 3 H1 focus was to build out specific market sectors $’000s. including hospitality & $6,000 residential developers. $5,000 $4,000 Initiatives included: $3,000 $2,000 $1,000 • Launch of sector- $0 specific
Slide 11: H1 FY21 Financial Results
H1 FY21 Financial Results Page 11
Slide 12: H1 FY21: Strong growth and performance
H1 FY21: Strong growth and performance Revenue $m EBITDA $m EBITDA % 161.6 14.8 9.2% Up Up Up 118% 556% 6.1 pts 74.1 3.1% 2.3 H1 FY20 H1 FY21 H1 FY20 H1 FY21 H1 FY20 H1 FY21 Active Customers $ per Active Customer Fixed Costs (% of Rev) 678k 401 11.6% 380 Up Up 6% Down 102% 7.5% 4.1 pts 335k 31-Dec-1
Slide 13: We are pursuing a high growth strategy
We are pursuing a high growth strategy Short-mid term Longer term Leverage scale / High growth / win the market grow profit Revenue • Market leader takes a disproportionate share • Continue to take advantage of longer-term of accelerating online penetration online market penetration • Pursue organic
Slide 14: H1 produced record revenue and profitability
H1 produced record revenue and profitability A$m H1FY20 H1FY21 Record revenue • Revenue of $161.6m was up 118% YoY (124% on a checkout revenue basis Revenue 74.1 161.6 which is pre-accounting adjustments for deferred revenue and refunds) Cost of Sales (41.3) (88.1) Gross Margin 32.8 73.5 Investment
Slide 15: High growth strategy yielding operating leverage
High growth strategy yielding operating leverage FY18 FY19 FY20 H1FY21 Revenue 100% 100% 100% 100% Gross Margin 44.1% 44.6% 44.6% 45.5% Delivered Margin (after all distribution costs) 31.0% 30.1% 30.6% 33.0% • Margin growth driven by increase in private label which is now 25% of revenue, however mid
Slide 16: Strong balance sheet enabling investment for growth
Strong balance sheet enabling investment for growth A$m 30-Jun-20 31-Dec-20 Assets Cash & Cash Equivalents 38.1 85.7 Inventories 6.6 17.4 • Investment in private label, all inventory metrics (WOC/ageing profile) tracking better Other current assets 3.5 5.4 than target ranges Intangibles, (inc. goodw
Slide 17: Capital light/cash flow positive business model
Capital light/cash flow positive business model Closing cash by half Net cash flow movement $000 $000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 • Closing cash balance of $85.7m • Cash flow positive half $47.7m was driven by: • the
Slide 18: Strategy & Outlook
Strategy & Outlook Page 18
Slide 19: Our core furniture and homewares category is a $14.6b market
Our core furniture and homewares category is a $14.6b market, undergoing a structural shift towards online Furniture and Homewares Market (AUS) Hypothetical adoption curve for online penetration in the furniture & homewares market: Australia lags US/UK markets 2019 Data Total $14.6b UK: 16.6% (2019)
Slide 20: Demographic and structural changes will drive strong market growth
Demographic and structural changes will drive strong market growth for years to come 1 Millennials are entering our core demographic 2 Structural changes in our favour • Offline exits/store closures Hypothetical distribution of homewares and furniture spend by age • New consumer habits forming durin
Slide 21: 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 22: Scale is allowing us to accelerate investment and grow market share
Scale is allowing us to accelerate investment and grow market share Hypothetical drivers of market share growth We are growing our market share – Closer Average from July to October vs pcp relationships with suppliers with better terms More Bigger 133% inspirational investments content & in technolo
Slide 23: Growth strategy
Growth strategy Add depth and Increase brand Expand digital breadth across our core awareness from 55% capabilities: data, and adjacent to +80% through personalisation, AI, categories; grow private digital and non-digital augmented reality label division channels Add inspirational Focus on exception
Slide 24: Trading update & outlook
Trading update & outlook • The second half has started strongly, with YoY revenue growth of 118% to Feb 23. • We continue to experience strong tailwinds, including: • the ongoing adoption of online shopping • an acceleration of these trends due to COVID-19 • an increase in discretionary income due t
Slide 25: Q&A
Q&A Page 25
Slide 26: 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 27: Temple & Webster
TEMPLE WEBSTER
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