Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — FY2021 Earnings Presentation
28 slides from Temple & Webster's earnings presentation, Aug 30, 2021
Slide 1: Full Year 2021 Investor Presentation ASX Announcement
For personal use only TEMPLE & WEBSTER GROUP LTD REGISTERED OFFICE AND ABN 69 608 595 660 PRINCIPAL PLACE OF BUSINESS: Unit 1, 1-7 Unwins Bridge Road St Peters NSW 2044 ASX ANNOUNCEMENT 30 August 2021 Full Year 2021 Investor Presentation Temple & Webster Group Ltd attaches a Full Year 2021 Investor
Slide 2: FY21 Investor Presentation
For personal use only FY21 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 3: Summary
Summary For personal use only FY21 Revenue FY20 Revenue • Temple & Webster is the leading pure play online retailer for furniture & $326.3m $176.3m homewares in Australia 85% growth vs pcp • Large addressable market with FY21 EBITDA FY20 EBITDA accelerating online adoption $20.5m $8.5m 141% growth v
Slide 4: Temple & Webster at a glance
Temple & Webster at a glance For personal use only Operating in a large ~$16b market (excludes The leading pure play online retailer for Leverage to fund reinvestment activity to B2B), with less than 9% sold online furniture & homewares in Australia outgrow the market 2020 B2C Furniture & Homewares
Slide 5: FY21 Business Update
FY21 Business Update For personal use only Strong growth across the year • Revenue up 85% for the year, EBITDA up 141% to $20.5m • Q4 revenue up 26% pcp (which is comparing to Q4 FY20 which in turn grew ~130% over Q4FY19) • Strong growth across all categories, geographies, channels & demographics •
Slide 6: Customer growth remains strong
Customer growth remains strong even after comparing against FY20 COVID impacted growth rates ↑13% For personal use only Cohorts are performing well, leading to an Active Customers grew 62% year on year increase in repeat rate 800,000 160,000 700,000 140,000 120,000 600,000 100,000 500,000 80,000 400
Slide 7: Revenue per active customer vs CAC and marketing ROI
Strong growth in revenue per active customer is partially offsetting an increase in CAC due to longer term brand investments For personal use only 12 month marketing ROI still strong, even with Revenue per active customer up 12% due to a large brand investment (TV advertising) higher repeat rate and
Slide 8: Key initiatives driving conversion rate and customer satisfaction
Key initiatives driving conversion rate and customer satisfaction For personal use only Customer satisfaction (NPS) has returned to target Conversion rate continues to improve 65%+ after dip post Christmas peak 3.5% Net Promoter Score (score range: -100% to 100%) 70% 3.0% 65% 2.5% 60% 2.0% 55% 50% 1
Slide 9: Temple & Webster Private Label
Temple & Webster Private Label For personal use only Private label is providing strategic benefits such as a Private label share (% of total sales) diversification of supply (less dependency on drop-ship network), improved margins, stock assurance and speed of dispatch. 19% 26% Key Initiatives durin
Slide 10: We have now launched both iOS and Android apps
We have now launched both iOS and Android apps For personal use only • iOS app launched in H1 FY21 • Android app launched Jul-21 • Customer feedback has been extremely positive: • +5,000 reviews • Rating: 4.8 out of 5 • App is leading to higher levels of engagement and repeat purchasing • Mobile (mo
Slide 11: Merging online and offline experience through Augmented Reality
We are merging the online and offline experience through Augmented Reality (AR) For personal use only • Augmented Reality (“see in your room”) pilot launched in H2 and will be progressively rolled out • Removing barriers in the online shopping journey while providing an interactive feature for custo
Slide 12: Increased investment in an AI Interior Design start up
We have increased our investment in an AI Interior Design start up AI (Artificial Intelligence) Interior Design service, For personal use only • • Exposes Temple & Webster’s huge range of suggesting products to match a customer’s furniture & homewares selected item • Developed by an Israel based tec
Slide 13: Trade and Commercial (B2B) division grew 110%
Our Trade and Commercial (B2B) division grew 110% For personal use only 1 T&C has rebounded quickly with revenue up 110% 3 Residential property development sector and regional hospitality remain key areas $’000s. of focus: $8,000 • Successful launch of new service model $6,000 for the residential pr
Slide 14: FY21 Financial Results
For personal use only FY21 Financial Results Page 13
Slide 15: FY21: Strong growth and performance
FY21: Strong growth and performance Revenue $m EBITDA $m EBITDA % For personal use only 326.3 20.5 Up Up Up 6.3% 85% 141% 1.5 pts 176.3 4.8% 8.5 FY20 FY21 FY20 FY21 FY20 FY21 Active Customers $ per Active Customer Fixed Costs (% of Rev) 778k 426 380 10.0% Up Up 12% Down 480k 62% 7.9% 2.1 pts 30-Jun-
Slide 16: FY21 produced record revenue and profitability
FY21 produced record revenue and profitability A$m FY20 FY21 Record revenue • Revenue of $326.3m for FY21 was up 85% YoY For personal use only Revenue 176.3 326.3 Cost of Sales (97.7) (178.3) • Q4 revenue was up 26% YoY which is comparing to Q4 FY20 which grew ~130% YoY Gross Margin 78.6 148.0 Priva
Slide 17: Reiterating our high growth strategy
Reiterating our high growth strategy Short-mid term Longer term For personal use only High growth / win the market Leverage scale / grow profit Revenue • Market leader takes a disproportionate share of • Continue to take advantage of longer-term accelerating online penetration online market penetrat
Slide 18: Capital light/cash flow positive business model
Capital light/cash flow positive business model For personal use only A$m 30-Jun-20 30-Jun-21 • Strong balance sheet position with a closing cash balance of $97.5m and no debt Assets • Positive cash flows from operations and the group’s capital light/negative working Cash & Cash Equivalents 38.1 97.
Slide 19: Strategy & Outlook
For personal use only Strategy & Outlook Page 18
Slide 20: Core B2C furniture and homewares market shifting online
Our core B2C furniture and homewares category is a ~$16b market, undergoing a structural shift towards online For personal use only Hypothetical adoption curve for online penetration in the Furniture & Homewares market Aus US % 50%+ Online market penetration 40% 30% Short-Med term 2020: 25.3% 20% 20
Slide 21: Demographic and structural changes driving 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 • Offline exits/store closures Hypothetical distribution of homewares and furniture spend by age • New consume
Slide 22: Our strategy is based on range, inspiration and service
Our strategy is based on range, inspiration and service For personal use only 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’ home
Slide 23: Scale increases operating leverage to accelerate investment
Scale increases our operating leverage, allowing us to accelerate investment in future growth and take market share For personal use only REINVEST FOR GROWTH STRONG CONSUMER PROPOSITION Use cash flows generated to reinvest in marketing, Trusted brand, large range of quality products and technology d
Slide 24: Growth strategy
Growth strategy For personal use only 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 inspiratio
Slide 25: Trading update & outlook
Trading update & outlook For personal use only • FY22 has started strongly with YoY revenue growth of 49% for the period 1st July – 27th August 2021. • We continue to experience strong tailwinds, including: • the ongoing adoption of online shopping due to structural and demographic shifts • an accel
Slide 26: Q&A
For personal use only Q&A Page 25
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 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 28: For personal use only
For personal use only Page 27
Temple & Webster Group — FY2021 Earnings Presentation on 6ix