TEMPLE & WEBSTER GROUP LTD — Investor Presentation 2021

May 4, 2021

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TEMPLE & WEBSTER GROUP LTD ABN 69 608 595 660

Unit 1, 1-7 Unwins Bridge Road St Peters NSW 2044

ASX ANNOUNCEMENT

5 May 2021

Presentation at Macquarie Australia Conference

Temple & Webster Group Ltd attaches the presentation on 5 May at the Macquarie Australia Conference.

This document has been authorised for release by the Board of Directors.

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Macquarie Australia Conference

May-21 Mark Coulter CEO Mark Tayler CFO

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Overview

• Temple & Webster is the leading pure-play online retailer for furniture & homewares in Australia

• Our mission is to make the world more beautiful, one room at a time

>750k Active 55% Brand Customers Awareness >700 ~500 Suppliers Employees

• We are profitable, rapidly scaling, and best positioned to win the customer as they shift online

Founder-Led High Customer Business Satisfaction

All metrics are from Apr-21.

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Our core B2C furniture and homewares category is a ~$16b market, undergoing a structural shift towards online

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Hypothetical adoption curve for online penetration in the Furniture & Homewares market Aus US
%
50%+
40%
30%
Short-Med term
20% 2020e: 21%
2019: 15.2%
10%
2020e: ~9%
2019: 5.1%
Time
Start Up Scale Up Optimise
Become #1 Expand market leadership Bank scale benefits
Online market penetration
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Source: Euromonitor International Limited; Home Furnishings and Homewares System 2019 edition, ABS Retail Sales data, TPW estimates

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Scale increases our operating leverage, allowing us to accelerate investment in future growth and take market share

REINVEST FOR GROWTH

Use cash flows generated to reinvest in marketing, technology development, product range and overall customer experience

STRONG CONSUMER PROPOSITION

Trusted brand, large range of quality products and great user experience attract customers, grow conversion and drive customer satisfaction

Leveraging our leadership position to realise scale advantages

BETTER UNIT ECONOMICS

Increased scale provides cost advantages in product sourcing, logistics and marketing

REPEAT & FIRST TIME ORDERS

Great initial customer experience builds customer loyalty and grows share of wallet, delivering revenue growth

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Our B2C Growth strategy

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RANGE INSPIRATION EXPERIENCE
Biggest and best range in Most inspirational Best delivery experience &
our category content and services customer service
Add depth and breadth More video, editorial, Data integrations with
across core & new categories shoppable content logistics partners
e.g. home improvement
Build largest library of 3D
More options – e.g. after
Grow private label (import) models in Australia
hours, white glove delivery
division
Add design tools (e.g. 3D/AR,
Launch exclusive ranges AI generated interior design Exceptional customer
with drop ship suppliers advice) service and support
BRAND AWARENESS
Aiming for 80%+ brand awareness, driven by brand building above-the-line investment and digital marketing
Pproposition
Customer Value
PILLARS
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FOUNDATIONS
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DATA & PERSONALISATION

Investment in Data & Analytics capabilities: business intelligence, AI / machine learning, personalisation

WORLD-CLASS TECHNOLOGY

E-commerce platform; great user experience; mobile apps

ONLINE RETAIL EXPERTISE

Team of digital natives; category expertise; product curation; creative expertise; pricing

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Our Trade & Commercial (B2B) division is an emerging growth horizon

• 1 T&C Revenue is growing strongly $’000s.

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$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
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• The nature of the customer and our service model

• 2 has led to high repeat rates

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7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
First Time Orders Repeat Orders
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• 3 Our strategy to step change the B2B division

• Leverage the range, platform, brand and logistics capabilities of the B2C division

• Over time significantly increase sales force – new client segments, geographies, capabilities

• Scale B2B fulfillment solutions (design, consolidation, install)

• Add commercial grade furniture & fit out ranges

• Grow B2B/trade marketing and invest in B2B brand awareness

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Revenue growth is based on checkout revenue which is pre accounting adjustments (deferred revenue, refund provision).

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Trading update & outlook

As announced on the 20th April, trading continues to exceed expectations, despite the fact that prior comparable periods now include the impact of the COVID-19 lockdowns:

• Q3 FY21 Revenue up 112% vs pcp

• Active customers reached ~750k at the end of Q3

• April 2021 (to the 20th April) revenue up >20% vs pcp, noting this month is comparing to April 2020 which was the fastest growing month last year due to the nationwide lockdowns implemented during March 2020

• COVID-19 cohorts continue to perform better than historical cohorts

Temple & Webster believes this trading suggests COVID-19 has permanently accelerated online adoption in the Australian furniture and homewares market.

Revenue growth is based on checkout revenue which is pre accounting adjustments (deferred revenue, refund provision adjustments).

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