Temple & Webster Group Ltd · ASX:TPW
Temple & Webster — FY2020 Earnings Presentation
24 slides from Temple & Webster's earnings presentation, Aug 31, 2020
Slide 1: ASX Announcement: Full Year 2020 results Investor Presentation
For personal use only TEMPLE & WEBSTER GROUP LTD REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS: ABN 69 608 595 660 Unit 1, 1-7 Unwins Bridge Road St Peters NSW 2044 ASX ANNOUNCEMENT 31 August 2020 Full Year 2020 results Investor Presentation Temple & Webster Group Ltd attaches a Full Year 2020 r
Slide 2: FY20 Investor Presentation
For personal use only FY20 Investor Presentation Mark Coulter CEO Mark Tayler CFO Page 1
Slide 3: Summary
Summary For personal use only FY20 Revenue FY19 Revenue • H2 revenue up 96% vs pcp; Q4 revenue up 130% vs pcp $176.3m $101.6m 74% growth YoY • Temple & Webster is the online FY20 EBITDA FY19 EBITDA market leader in furniture & homewares $8.5m $1.5m 483% growth YoY • Large addressable market with acc
Slide 4: Executive Summary
Executive Summary For personal use only • Furniture & homewares is a $14.6b market (excluding appliances and DIY) Significant growth • Online adoption in Australia lags US/UK markets opportunity • Shift to online driven by demographic changes accelerated by the COVID-19 crisis • Temple & Webster bes
Slide 5: Temple & Webster is the leading online retailer for furniture & homewares
Temple & Webster is the leading online retailer for furniture & homewares For personal use only Page impressions (JUNE) Active customers (LTM) ~32m ~480k Website users (JUNE) Product listings ~3.8m ~180k Email subscribers Sub-categories ~2.5m ~200 Social media reach Average time to dispatch ~735k ~1
Slide 6: Our core furniture and homewares category is a $14.6b market
Our core furniture and homewares category is a $14.6b market, with accelerating online adoption For personal use only 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: 1
Slide 7: 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 • Offline exits/store closures and furniture spend by age • New consume
Slide 8: 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 9: Active customers up 77% year on year
Active customers up 77% year on year ↑13% For personal use only Active Customers Repeat and First Time Orders 510,000 160,000 460,000 140,000 410,000 120,000 360,000 100,000 310,000 80,000 260,000 60,000 210,000 40,000 160,000 20,000 110,000 0 First Time Repeat NB. Active customers are the number of
Slide 10: Customer metrics remain strong
Customer metrics remain strong For personal use only 12 month Marketing ROI Revenue per Active Customer2 Conversion Rate3 holding at ~2.6x1 2.8 $390 3.0% 2.4 $380 $370 2.5% 2.0 $360 1.6 $350 2.0% $340 1.2 $330 1.5% 0.8 $320 $310 1.0% 0.4 $300 0.5% 0.0 As at 30 June 2019 As at 30 June 2020 Customer A
Slide 11: Market leadership and scale are leading to market share growth
Market leadership and scale are leading to market share growth For personal use only Closer relationships We are growing our market share – with suppliers Average from April/May vs pcp with better terms More Bigger 136% inspirational investment in content & technology services and platform 54% 49% M
Slide 12: H2 was focused on scaling the business while keeping high customer satisfaction
H2 was focused on scaling the business while keeping a high level of customer satisfaction For personal use only We grew our customer satisfaction scores to our highest levels while adding record volumes of first Working with all key Business vendors to ensure time customers Continuity continuity of
Slide 13: We continue to innovate our digital offering
We continue to innovate our digital offering For personal use only iOS Mobile app has Data integration with our AI generated room idea collections launched into the app main freight carriers to helping customers to navigate our store providing a faster, enable full end to end huge range and complete
Slide 14: Our Trade and Commercial (B2B) division had a great year
Our Trade and Commercial (B2B) division had a great year despite the challenging conditions For personal use only Trade & Commercial grew revenue by 68% yoy, despite 3 We have set up sector specific teams and increased our 1 facing a challenging second half range of trade specific products. For exam
Slide 15: Drivers to continue growing market share from a position of strength
Drivers to continue growing market share from a position of strength For personal use only Add depth and Increase brand Expand digital breadth across our core awareness from 35% to capabilities: data, and adjacent +80% through digital personalization, AI, categories; grow private and non-digital aug
Slide 16: FY20 Financial Results
For personal use only FY20 Financial Results Mark Tayler CFO Page 15
Slide 17: We are pursuing a high growth strategy
We are pursuing a high growth strategy For personal use only 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 penetr
Slide 18: Profit and loss
Profit and loss A$m FY19 FY20 Revenue growth for the year vs pcp was 74% with H2 delivering growth For personal use only • Revenue 101.6 176.3 of 96% vs pcp and Q4 130% vs pcp Cost of Sales (56.3) (97.7) Gross Margin 45.3 78.6 • Delivered margin (gross margin after distribution costs) remains on tar
Slide 19: High growth strategy is already translating into operating leverage
High growth strategy is already translating into operating leverage For personal use only FY17 FY18 FY19 FY20 Revenue 100% 100% 100% 100% Gross Margin 42.7% 44.1% 44.6% 44.6% Delivered Margin (after all 27.6% 31.0% 30.1% 30.6% distribution costs) Customer Service Staff & 4.7% 3.3% 3.3% 3.3% Merchant
Slide 20: Capital light/cash flow positive business model
Capital light/cash flow positive business model For personal use only A$m 30-Jun-19 30-Jun-20 Assets • Strong balance sheet position with no debt Cash & Cash Equivalents 13.5 38.1 • Closing cash balance of $38.1m which excludes proceeds from recent $40m Inventories 4.2 6.6 placement Other current as
Slide 21: Trading update & outlook
Trading update & outlook For personal use only FY21 has started strongly: • Revenue up 161% through to the 27th August vs pcp • Contribution margin remains >15% • EBITDA for July & August (2-month period) of ~$6m • Cash at 27th August $81m with no debt • Customer satisfaction remains at record level
Slide 22: Q&A
For personal use only Q&A Page 21
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 For personal use only to provide background information on the Company and its subsidiaries and is not an offer or invitation or rec
Slide 24: For personal use only
For personal use only Page 23
Temple & Webster Group — FY2020 Earnings Presentation on 6ix