Temple & Webster Group

Annual 
Report 
2023

Acknowledgement 
of Country

Temple & Webster Group 
acknowledges the Traditional 
Owners and Custodians of Country 
throughout Australia. We recognise 
their enduring connection to the 
lands, the waterways, and the skies.

We acknowledge the Gadigal and 
Wangal people, on whose lands our 
corporate head office is located, as 
well as all other First Nation Countries 
we operate across. 

We pay our respects to Elders past, 
present and to all Aboriginal and 
Torres Strait Islander peoples.

Temple & Webster Group Ltd ABN 69 608 595 660

Contents

Summary 

Chair’s report 

CEO’s report 

Operational review 

Environmental, social and governance statement 

Directors’ report 

Remuneration report (audited) 

Auditor’s independence declaration 

Consolidated statement of profit or loss  
and other comprehensive income  

Consolidated statement of financial position  

Consolidated statement of changes in equity  

Consolidated statement of cash flows  

Notes to the consolidated financial statements 

Directors’ declaration 

Independent auditor’s report 

Shareholder information 

Corporate directory 

2

4

6

10

18

30

37

61

62

63

64

65

66

99

100

104

107

1

Annual Report 2023Summary

$396m

FY23 Revenue

$14.8m

FY23 EBITDA

3.7%

FY23 EBITDA Margin

$105m

Cash Balance at  
30 June 2023

2

Temple & Webster Group Ltd  FY23 EBITDA 
within guidance

•  FY23 revenue $396m, retained ~90% of COVID-19 revenue

•  FY23 EBITDA margin 3.7% (within guidance of 3-5%)

•  H2 FY23 EBITDA up 80% vs HY FY22

•  FCF of $17.0m (before share buy-back and Renovai investment)

Business back 
to growth

•  The business is back to growth since Q4, driven by growth in 

both repeat and first-time customers

Well positioned 
to capture market 
share

•  Leading pure play online retailer for furniture and homewares 

in Australia

•  $105m cash, profitable, negative working capital

•  Building strategic moats around range, brand, data, tech and 

artificial intelligence

Targeting $1b+ 
in sales in 3-5 years

•  Online market still under-penetrated in Australia

•  Weaker macro-environment provides market share 

opportunity

•  Our goal is to achieve scale point as quickly as possible, while 

remaining profitable

3

Annual Report 2023Chair’s 
report

Dear shareholders,

On behalf of the Board of Directors, it gives me great 
pleasure to present Temple & Webster’s 2023 Annual 
Report.

Results summary

The 2023 financial year was a difficult one for many 
Australians, with rising interest rates and cost-of-living 
pressures, which in turn impacted discretionary spending. 
We are no stranger to such economic cycles, so throughout 
FY23 we ensured that our product range was agile to 
changing customer needs and that we were providing 
quality products at affordable prices. We are starting to 
see a return on this effort, with Q4 revenue growing when 
measured against the previous comparable period which 
was not impacted by the COVID-19 pandemic.

We are pleased to report revenue of $396 million for the 
year. This is around 90% of the revenue of FY22, a year that 
was boosted significantly by strong e-commerce demand 
during the pandemic. Earnings before interest, taxes, 
depreciation and amortisation (EBITDA) was $14.8 million, 
with an EBITDA margin of 3.7%, which was within our 
stated 3–5% guidance.

Capital management

We finished the year with a cash balance of $105 million, 
and we remain debt-free. The strength of our balance 
sheet enabled us to initiate an on-market buy-back of 
up to $30 million Temple & Webster shares to improve 
shareholder value. By 30 June 2023, the business had 
bought back 2.7 million shares at a cost of $12.3 million.

The Board considers the acquisition of shares to be an 
effective capital management strategy that also allows 
us to retain flexibility to pursue future organic and inorganic 
opportunities as part of our growth strategy.

Investing for growth

While we reduced operational expenditure in the first 
half of FY23, we continued to invest in our future growth 
horizons of Trade and Commercial, and Home Improvement. 
We also continued to advance our market-leading digital 
capabilities, including the use of artificial intelligence (AI). 
We see significant potential for AI to increase conversion 
and customer benefits, and to help us achieve productivity 
gains to lower our fixed costs as a percentage of revenue 
as we scale.

The current economic cycle will no doubt present 
challenges for retailers. However, for companies that can 
combine capability and financial strength with agility, it 
could present significant opportunities. Our focus during 
this period will be executing against our key strategic 
priorities to increase our market share. 

4

Temple & Webster Group Ltd  Board composition

Thank you to the team

On behalf of the Board, I would like to thank Mark, the 
executive team and all Temple & Webster staff members 
for their dedication and hard work throughout the year.

I would also like to thank my fellow Board members for their 
expertise, commitment and stewardship. Finally, I would 
like to thank you – our shareholders – for your continued 
support.

Stephen Heath
Chair

In November, we farewelled Sue Thomas, Non-Executive 
Director and Chair of the Audit and Risk Management 
Committee, who retired after six years of service. Sue’s 
contribution to the Board and the Group was highly valued. 
On behalf of the Board and management, I express my 
sincere gratitude to Sue.

We welcomed Melinda Snowden in June as a Non-Executive 
Director. She will also serve as Chair of the Audit and Risk 
Management Committee. Melinda’s extensive experience in 
legal and professional corporate advisory roles makes her 
an ideal addition to the Board and ensures we have the right 
mix of skills and experience to execute our growth strategy.

CEO’s multi-year agreement

I am pleased to note that Mark Coulter (co-founder and 
Chief Executive Officer) has agreed to a new multi-year 
remuneration package that is heavily weighted to long-term 
shareholder value. 

Since rejoining the business in 2016, Mark has grown 
revenue to record levels and significantly improved 
profitability metrics. He has made sound operational and 
strategic investments to create a platform for sustainable 
growth.

We are pleased to have him at our helm as we enter 
Temple & Webster’s next growth phase.

5

Annual Report 2023CEO’s 
report

Dear fellow shareholders,

I am pleased to report Temple & Webster delivered a strong 
FY23 result, with revenue of $396 million and a return to 
growth in the fourth quarter. This performance reflects the 
resilience and flexibility of our business model in a more 
difficult trading environment. As cost-of-living pressures 
impact household budgets, shoppers increasingly search for 
quality at affordable prices, and it is clear our agile range is 
resonating. 

These results meant we retained around 90% of the 
accelerated growth the COVID-19 years delivered. Given the 
current macroeconomic climate, it is great to see the Group 
back in growth now that we have finished cycling COVID-19-
impacted periods. The flexibility of our business model was 
also evident in FY23, with an EBITDA result of $14.8 million 
for the year, and up 80% in the second half compared to the 
same period in FY22.

Where to from here?

As we progress into FY24, we understand that the 
macroeconomic turbulence of the past 12 months isn’t in 
the rear-view mirror yet. However, we are well positioned 
to manage these headwinds and believe this environment 
provides us with an opportunity to gain market share faster 
and more efficiently as less well-capitalised peers struggle 
with market conditions.

We are growing our position as Australia’s leading pure 
play online retailer in a market that is poised to expand 
substantially over time. The Australian furniture and 
homewares market is worth around $19 billion1 but only 
about 18%2 of that market has moved online, compared 
to the 27–28% we see in similar markets in the US and UK. 
The transition from offline to online presents us with a  
once-in-a-generation opportunity to become the top-of-
mind brand in our category.

Our sights are firmly set on exceeding $1 billion in annual 
revenue over the next three to five years. We believe this 
scale will firmly entrench our competitive moats around 
range, brand, data, AI and technology. To do this, we will be 
focusing on five key strategic priorities.

1.  Becoming the top-of-mind brand in the furniture and 
homewares category by building greater brand equity

Temple & Webster currently ranks seventh in unprompted 
awareness for furniture and homewares among Australian 
shoppers3. Furthermore, 78% of Australian furniture and 
homewares shoppers have never visited our website. 
So, we know the Group has plenty of room to grow by 
reaching a large number of untapped customers.

Consumers are most likely to switch brands when 
they seek value, and brand building is likely to be most 
efficient during tougher economic times. As such, we 
believe now is the time to build our brand equity to gain 

1.  Source: ABS 8501.0 Retail Trade, Australia (2023). Excludes Trade & Commercial and Home Improvement.
2.  Source: Euromonitor 2023 Home and Garden for CY22.
3. Source: Lucid (Hub Consulting) Temple & Webster Brand Tracker – April to June 2023. Excludes multi category dept stores/discount retailers.

6

Temple & Webster Group Ltd  market share. In FY24, we will be launching our first  
multi-channel, multi-city, above-the-line campaign. This 
will build on the successes of our earlier trials with TV and 
out-of-home marketing promotions.

As the business scales, so too will our marketing budgets, 
raising brand awareness among consumers. Our end goal 
is to become the top-of-mind brand in the category over 
the next three to five years.

2. Generating the majority of sales from exclusive products 

We want to be famous for having the best range in 
the country, with quality products at great prices. To 
do this, we need most of our sales to come from our 
exclusive lines. These products include our private label 
products (including those imported under the Temple 
& Webster brand), exclusive drop-ship products (such 
as those designed by Temple & Webster), and made-to-
order products. To achieve our goal, we will also need 
to substantially grow the share of revenue from these 
products over the next three to five years.

We already use our data to inform our buying and 
product design decisions. However, we will be increasing 
investment in this area to employ more data scientists, 
grow our product development capabilities and offshore 
sourcing teams. Our exclusive lines have greater margins, 
which allow us to price them more competitively. We also 
have the ability to value engineer products, allowing us 
to offer on-trend, quality products at even better prices. 
More data also decreases the risks of obsolescence 
by helping us to predict bestsellers more accurately. 

Importantly, our goal is to retain our negative working 
capital economics using our different inventory sourcing 
models.

3. Developing market-leading capabilities around data,  

AI and technology 

As an online-only business, we are well placed to benefit 
from the revolutionary potential of new technologies such 
as AI. Not only can AI help us to convert more website 
visits into sales, but it can also enhance our bottom line 
through cost base efficiencies.

In FY23, we increased our investment in our external 
research and development partner, Renovai, an Israeli AI 
startup that is disrupting the way customers shop our 
category, and helping to drive higher conversion rates 
and customer engagement.

Our dedicated internal AI team is looking at how 
we implement AI across all customer interactions 
and internal processes. Early initiatives include using 
generative AI to power all pre-sale product enquiry live 
chats (which account for more than 20% of all customer 
enquiries). We’ve also enhanced product descriptions 
across our 225,000 products, leading to an increase in 
conversions, products added to carts and revenue per 
visit. In FY24, we will target all first-time care interactions, 
logistics routing, exception handling, pricing, promotions 
and recommendations.

7

Annual Report 2023CEO’s report
continued

4. Lowering our fixed cost % to obtain a price and  

margin advantage

5. Building scale through adjacent growth plays, including 
Home Improvement and Trade and Commercial (B2B) 

Our aim is to significantly decrease our fixed costs as a 
percentage of revenue over the coming years. 

Given we do not have physical store costs, our fixed 
cost base will naturally be leveraged across a greater 
scale, significantly reducing our fixed cost % as revenue 
increases. Most areas in our business can and will be 
materially disrupted by AI (including customer care, 
operations, product development, technology and back 
office). This provides us with a competitive advantage 
relative to our offline peers, as they have limited upside 
in their cost bases as a result of AI (staff and lease costs 
cannot be minimised by AI).

Lowering our fixed costs as a percentage of revenue will 
allow us to pass on cost benefits to customers through 
better pricing and promotions, further differentiating 
our value proposition. Over time, this will lead to margin 
benefits as operating leverage translates into bottom-line 
improvements.

In FY23, 16% of our revenue was from growth outside 
our core B2C furniture and homewares business. This 
included $38 million (10% of Group revenue) from 
our B2B division, and $23 million from the Home 
Improvement category (6% of Group revenue). Our plan 
over the next three to five years is to earn more than 30% 
of Group revenue from these (and new) growth plays. 
This will diversify the Group’s revenue mix and enable us 
to gain further leverage from our fixed cost base.

Our growth plays will (and do) leverage the core 
capabilities of the Group, such as brand, customer base, 
technology, data, sourcing, operations and logistics. 
These growth plays significantly increase our total 
addressable market (TAM). For example, the B2B market 
is a multi-billion dollar, highly fragmented market, while 
Home Improvement adds around $20 billion to our TAM.

8

 Temple & Webster Group Ltd  In FY22, we launched a pilot site, The Build, as an entry 
into the Australian Home Improvement market. We 
assembled a dedicated team and developed a range 
across core categories such as laundry, bathroom and 
kitchen fixtures, flooring and lighting. This range was 
replicated on www.templeandwebster.com.au.

As mentioned, these efforts delivered revenue of 
$23 million for the year, 80% of which came from the 
main Temple & Webster site. This is a great outcome 
as it shows the Temple & Webster brand can stretch 
into adjacent categories, which was reflected in lower 
marketing acquisition costs and higher conversion rates 
than The Build.

We are still bullish about the Home Improvement 
category and have decided to consolidate our focus on 
the Temple & Webster brand for all activities across the 
Group. This will allow for easier cross-sells and targeted 
marketing to our existing customer base. It will also 
enable us to redeploy The Build team and marketing 
budget to Temple & Webster. We will continue to build 

out a high-quality range and trial our first private label 
collection of bathroom fixtures. Gaining a foothold in 
large, more complex projects is a key focus, and will 
be assisted by building out project tools and fulfilment 
solutions.

Leadership team changes

To ensure we are set up for success, we reviewed the 
structure of our leadership team. We have added a Chief 
Marketing Officer, Joana Barros, an experienced cross-
channel marketer who has worked in e-commerce for many 
years, including roles in the hyper-competitive online travel 
market.

Tim Charlton, who was running our supply chain team, 
has been promoted to Chief Operating Officer. His focus 
will be on growth. In addition to logistics, customer care 
and operations, Tim will take on Group strategy, Trade 
& Commercial and any new growth plays (including 
international markets). 

Lastly, Kate Perkins, who leads our furniture and homewares 
category management and sourcing teams, has been 
promoted to Chief Merchandise Officer. In this role, Kate 
will be responsible for all products we sell across the Group, 
including Home Improvement and any new categories.

Thank you to the Tempster team

As always, I’d like to say a massive thank you to the Tempster 
team. Your commitment, adaptability, and resilience are as 
inspiring as ever. We wouldn’t be able to fulfil our vision 
of making the world more beautiful, one room at a time, 
without you.

Mark Coulter 
Chief Executive Officer

999

Annual Report 2023Annual Report 2023Annual Report 2023Operational 
review

10

Temple & Webster Group Ltd  Overview of FY23 performance

The Group delivered a strong FY23 result with $396 million 
in revenue, achieving ~90% of sales from the previous  
year, our strongest COVID-19-driven trading period.  
Q4 FY23 revenue was up year on year with a return to 
market share gains driven by growth in both repeat and 
first-time customers.

$396m

$14.8m

FY23 Revenue

FY23 EBITDA

FY23 EBITDA of $14.8 million was within our stated range of 
3-5% and H2 FY23 EBITDA was up 80% vs H2 FY22. Note 
this result is after our investment into our current growth 
plays, Trade & Commercial and Home Improvement.

The Company remains in a strong financial position with a 
closing cash balance at 30 June 2023 of $105 million and 
no debt. 

Active Customers and Revenue  
per Active Customer

While active customers decreased as a result of cycling 
the COVID-19 impacted periods of FY22, pleasingly we 
managed to retain ~90% of our peak customer numbers. 
This in part was due to us recognising early that customer 
needs were changing  as a result of macroeconomic 
conditions, which resulted in a shift towards increasing our 
promotional activity and focusing on the value ends of our 
ranges.

Active customers retained ~90% of peak COVID-19 numbers

941k

832k

778k

480k

271k

FY19

FY20

FY21

FY22

FY23

11

Annual Report 2023Operational review
continued

Revenue per active customer continued to increase, up 
6% year on year. This was driven by an increase in average 
order values, which benefited from mix shifts towards 
less-discretionary categories such as furniture with higher 
average selling prices relative to homewares categories. 
We were also able to pass on most inflationary pressures 
in our cost-base, particularly around shipping.

Revenue per active customer up 6%

Canstar award for most satisfied customers

Based on independent customer survey data1, Temple & 
Webster was awarded the furniture retailer with the most 
satisfied customers by CanstarBlue in December 2022. 
Of the top six retailers, we were the only pure play online 
retailer, with the other five retailers predominantly store 
based. Temple & Webster was the only retailer to receive 
5 stars across all relevant important customer satisfaction 
drivers including: 

$451

$477

$426

$379

$380

•  overall satisfaction

•  value for money

•  customer service

•  checkout experience

•  product availability, and

•  website experience.

FY19

FY20

FY21

FY22

FY23

1.  Canstar Blue customer satisfaction research conducted through online sample aggregation from ISO accredited panels (December 2022). 

1212

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Marketing

Marketing ROI2 is holding and allows room for 
growth investments

2.7x

2.6x

2.3x

2.0x

2.0x

54% of customers are repeating customers

620k 628k

574k

491k

565k

463k

361k

245k

203k

140k

FY19

FY23

$72

FY20

FY21
■  First-time customer  ■  Repeat customer

FY22

FY23

FY19

$43

FY20

FY21

FY22

$46

$58
Customer Acquistion Cost (’CAC’)

$69

Marketing return on investment held, despite inflationary 
pressures, which provides headroom to increase our brand 
spend in FY24 and FY25 to drive market share, and increase 
both first-time and repeat customers. 

In FY23, given the strategic importance of brand and 
organic traffic, we focused on building out our internal and 
external capabilities. We were in-market in Sydney with 
a heavy-weight out-of-home brand test campaign from 
May to July 2023. Early causal impact study results show 
a positive impact on orders and we saw a 25% increase in 
branded searches in NSW from May to June. 

Our focus on growing organic traffic has also begun to 
take shape. Initiatives aiming to boost SEO authority have 
delivered a 50% improvement in ranking for most of our 
targeted keywords and the integration of AI assisted content 
on pages has resulted in significant ranking improvements.

Personalisation in CRM ramped up in FY23 as we doubled 
our email journeys targeting shoppers with a higher affinity 
for certain categories, resulting in an increase in revenue from 
personalisation by 3.5x. Orders from repeat customers now 
make up 54% of total orders, and further increasing repeat 
customers will drive better returns on marketing spend. 

Product Range

At the end of FY23, we had over 225,000 unique products 
for sale across 225 sub-categories. Key growth categories 
for the year included bedroom, outdoor and children’s 
furniture, sofas, plumbing and pet products, all sourced from 
a combination of private label (owned-inventory) and our 
drop-shipping network of over 500 local supplier partners. 

We have maintained a strong inventory position across 
all categories, sourced and imported directly by Temple & 
Webster from more than 100 overseas suppliers and secured 
inventory into our warehouses from our key drop-ship 
partners, to deliver deeper margins and an improved last 
mile delivery service.

We have diversified our sourcing to non-China geographies 
wherever possible and launched made-to-order collections 
in upholstery to offer wider choice in our growing Sofa 
category where private label and exclusive products now 
represent more than 50% of our revenue. 

With millennials being the fastest growing cohort in the 
online furniture space, it is not a surprise that children’s 
furniture is one of our fastest growing categories. The 
diversity of our catalogue has also enabled us to achieve 
growth in categories impacted by post lockdown lifestyle 
changes, such as pet and travel products. 

2.  Marketing ROI = Margin $ / CAC Margin = Revenue per active customer as at 30 June 2023 x delivered margin % for FY23 CAC = Total marketing spend for 
FY23 x 73% (being the estimated percentage of marketing spent on new customer acquisition, i.e., excludes estimated spend on repeat customers) divided 
by the number of first-time customers during FY23.

131313

Annual Report 2023Annual Report 2023Annual Report 2023Operational review
continued

We have made a strategic shift into more entry-priced 
ranges to meet consumer demand, introducing smaller 
sizes, new production techniques, and new factories 
and suppliers. Re-engineering bulky products for higher 
loadability and increasing flat pack options in sofas and 
chairs has also delivered cost savings for customers.

We have partnered with an exclusive sourcing team in 
China to provide access to new factories, gain deeper 
intelligence around manufacturing, and source goods that 
offer cost savings in the value chain, as well as returned 
to international sourcing travel for the Buying teams.

Data, AI and technology

We have the leading conversion rate out of the Australian 
large retailers dedicated to the home.

Monthly conversion rate, June 20233 

Temple & Webster

2.5%

2.3%

2.1%

Competitors

1.4%

1.1%

1.0%

3. Source: Similar Web, June 2023. All retailers in home category with monthly visits >200k visits. Excludes marketplaces e.g. Amazon.

1414

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Average conversion rate remains high4 

Content

3.0%

2.9%

3.0%

3.2%

2.8%

FY19

FY20

FY21

FY22

FY23

Our objective is to use data, AI and technology to break 
down the barriers of shopping online and drive cost 
efficiencies. A dedicated internal team of data scientists, 
engineers and product managers have been applying AI 
throughout the business during FY23. These AI capabilities 
have already introduced measurable wins. These include 
enhancing product descriptions across all 225,000 products 
leading to an increase in conversion rate, add to carts and 
revenue per visit.

In addition, generative AI has proven its ability to drive 
customer satisfaction, lower response times and improve 
conversion rates by directly assisting customers. All pre-sale 
product enquiry live chats (+20% of all customer enquiries) 
are now powered by our custom Generative AI solution. 

Our research and development partner, Renovai, is 
delivering AI generated personalised mood boards. We 
increased our investment in Renovai during FY23 and 
maintained our exclusivity within Australia and New Zealand 
to strengthen our competitive advantage. 

In FY24, we will continue to build skills and capabilities 
within our team in the areas of machine learning, generative 
AI and innovation. We are specifically targeting all first-time 
care interactions, logistics routing and exception handling, 
pricing, promotions and recommendations. 

Throughout FY23, our creative team and partners produced 
2,678 bespoke studio images, 442 video assets, and 
1,024 3D assets. These assets are all exclusive to Temple 
& Webster and are used across our digital shopping 
experience and in marketing channels including social 
media, display advertising, and email, helping create a 
uniquely differentiated customer experience.

We began experimentation with Renovai to generate 
images entirely using AI. Initial results were encouraging and 
these experiments will continue in FY24 with the objective 
of creating Temple & Webster style imagery at scale with 
the expected benefits of increased production capacity, 
reduced cost per image and faster turnaround times.

Supply chain

Over the past year, we made significant investments in 
our people, processes, and technology to develop an 
operational capability that can scale and effectively serve 
the current and future initiatives of the Group. As a result, 
we successfully reduced our customer care and operations 
overheads as a percentage of revenue from ~3% in FY22 to 
~2.5% in FY23. At the same time, we focused on enhancing 
customer satisfaction, as reflected in our overall FY23 Net 
Promoter Score ('NPS'), which increased from 57% in FY22 
to 62%.

Customer satisfaction remains one of the strongest in 
the category

60%

62%

62%

57%

54%

FY19

FY20

FY21

FY22

FY23

4. Average conversion rate is the total number of unique visits over a 12-month period divided by the total number of transactions.

151515

Annual Report 2023Annual Report 2023Annual Report 2023Operational review
continued

We successfully launched our scalable, 3rd party, asset-light 
T&W delivery service in various regions, including Sydney, 
Brisbane, Melbourne and Canberra metropolitan areas, as 
well as regional areas such as Central Coast, Newcastle, 
Wollongong, Geelong, Ballarat, Mornington, Sunshine Coast 
and Gold Coast. In the past 10 months, we have completed 
over 70,000 deliveries through this service, with a high NPS 
of over 70%. Moreover, our T&W Delivery service operates at 
a lower cost, reduces product damages, and ensures faster 
delivery times by eliminating touch points within traditional 
delivery networks.

Collaboration between our Supply Chain function and Data 
and Analytics team enabled us to optimise our shipping 
recovery models. As a result, we increased shipping 
recovery from approximately 91% in FY22 to around 98% in 
FY23, ensuring that we passed on the true cost of delivery 
to our customers.

Stabilisation in global supply chains enabled us to bring 
down our private label inventory holding from the 
peaks experienced during the COVID-19 pandemic. We 
continuously right sized our warehouse capacity to support 
growth while navigating low industrial property vacancy 
and inflation pressure on lease costs. Through enhanced 
planning cadences, we operate as an integrated business 
with short, mid and long-term capacity planning horizons.

iOS and Android apps

By the end of FY23, we had 536k lifetime downloads of our 
iOS and Android apps. App customers are demonstrating 
higher conversion rates, greater lifetime values and higher 
customer satisfaction. 

While our desktop and mobile websites are the primary 
vehicle for first-time customer acquisition, once a customer 
has purchased from us, we encourage them to download 
the app and migrate to the better shopping experience our 
app offers. Our apps now represent ~19% of total Group 
repeat revenue.

Trade and Commercial (B2B)

$38.2m

$35.3m

$25.2m

$11.8m

FY20

FY21

FY22

FY23

The Trade & Commercial (B2B) division grew 9% YoY to 
represent 10% of the Group. B2B plays is a multi-billion-
dollar market, which is fragmented and high margin, 
representing a material opportunity for the Group.

B2B has been structured to provide a full service offering to 
business customers, including a newly established Design 
and Projects division responsible for design, procurement 
and installation of large-scale projects. This resulted in an 
increase in large-scale project opportunities and as a result 
an increase in average order value of 11% YoY.

A dedicated marketing and growth team worked to improve 
new customer acquisition and conversion in selected 
markets with new customer acquisition improving by 19% 
YoY. A key area of focus are the accommodation, residential 
and SME office markets with sales specialists in each sector.

Ongoing design and sourcing of a commercial grade 
product offering to service these industries will result in 
large scale range expansions in FY24.

1616

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Home Improvement 

New office

During the year, we moved into our new Head Office in 
St Peters. This purpose-built area spans approximately 
6,000m2, incorporating office space, communal dining 
and entertainment areas, training facilities, wellness areas, 
photography studio and associated studio warehouse, 
with expansion opportunities. This space was designed to 
meet our current and future needs for many years to come, 
signing a long-term lease (up to 20 years) to ensure this. We 
believe having a physical space which is enjoyable to work 
in is a big driver of employee engagement and productivity, 
and in our recent engagement survey, ~95% of Tempsters 
stated that they were enjoying our new home.

Home Improvement is one of the fastest growing categories, 
with Group Revenue of $23 million.

FY23 was the first full year of having a dedicated team 
in the Home Improvement space. Over the course of the 
year, our main focus was on improving ranges across key 
categories such as laundry, bathroom and kitchen fixtures, 
flooring and lighting. At the end of the year, we had over 
20,000 items for sale from more than 100 suppliers.

We also scoped and ordered our first private label range 
(in bathroom fixtures) which will land during FY24.

Our customer experience, product and technology teams 
delivered a range of deployments throughout the year to 
support the Home Improvement category, including options 
for customers to purchase swatches (e.g. fabrics) made to 
order products (e.g. blinds), and products sold by size/sqm 
(e.g. tiles).

We also launched new fulfilment options (e.g., palletised 
shipping), dedicated pre and post customer support, and 
project management tools. Our NPS for Home Improvement 
customers ended the year at 69%, a remarkably high score 
for a category that traditionally presents challenges in 
shipping products.

17

Annual Report 2023Environmental, social 
and governance 
statement

18

Temple & Webster Group Ltd  OUR COMMITMENT 

At Temple & Webster, we believe everyone wants to live more 
beautifully, which is why we continue to focus on areas that 
will deliver lasting change for the planet, our people, and the 
communities in which we operate. 

In FY23, we made significant progress in establishing key 
baseline environmental, social and governance (ESG) metrics. 
These allow us to track and measure the progress of our 
sustainability goals, while providing valuable insights to inform 
our long-term strategy in key areas, such as procurement and 
capital allocation.

We remain committed to reducing our carbon emissions by 45% 
by 2030 in line with the United Nations Sustainable Development 
Goal (SDG) on climate action. We recognise the importance of 
carbon offsetting to achieve this goal and are firmly committed 
to reducing or removing carbon emissions from our operations 
where possible. 

The procurement of our range remains the area where we have 
the most potential to drive positive change throughout the value 
chain and deliver on our vision to make the world more beautiful, 
one room at a time. Our procurement teams continue to work 
with suppliers to offer more products that have been responsibly 
and ethically sourced, with a key focus on due diligence and 
verification of sustainability claims.

As part of this collaboration with our suppliers, we aim to use 
more responsible materials in the packaging of our private 
label range. We remain committed to meeting Australia’s 
2025 National Packaging Targets and continue to work with 
key suppliers to achieve this. In the second half of FY23, we 
submitted our first annual report as a member of the Australian 
Packaging Covenant Organisation (APCO).

Furthermore, we recognise the importance of supporting 
our people and the broader community. Diversity, equity 
and inclusion (DEI) has always been a fundamental element 
of our business and values. We are committed to advancing 
reconciliation with First Nations peoples, taking steps to make 
our workplace fairer and more inclusive, and ensuring our 
employees are provided with the opportunities and resources to 
grow and thrive in a psychologically safe environment.

We are committed to being a responsible business by driving 
long-term sustainable value for our customers, employees, 
shareholders and other stakeholders. In line with this, we set 
important sustainability goals for the future which are outlined 
in this report.

19

Annual Report 2023Environmental, social and governance statement
continued

Our ESG goals

Number

Goal

Carbon neutral in our 
controlled operations 
(Scope 1 and 2 emissions)

Just started

In progress

Complete

Calendar 
year target

2030

Progress to date

Status

Successfully attained carbon neutrality 
for FY22 Scope 1 and 2 emissions

45% reduction in our carbon 
footprint (compared to our 
FY23 baseline)

2030

Commenced procurement of renewable energy 
for our corporate head office

Audit all private label 
suppliers for ethical and 
social compliance

2023

• 

100% of our private label suppliers have been 
audited for ethical and social compliance

•  Where applicable, suppliers requiring 

corrective action received plans based on 
audit findings

100% responsibly sourced 
solid wood in our private 
label range

2030

Range baseline is undergoing verification

• 

100% of packaging baseline has been 
established for our private label range

•  Submitted first APCO Annual Report

•  Submitted first APCO Action Plan

100% reusable, recyclable or 
compostable packaging

2025

70% of plastic packaging 
being recycled or 
composted

50% of average recycled 
content included in 
packaging

2025

2025

Phase out rigid polystyrene 
packaging

2025

1

2

3

4

5

6

7

8

2020

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Our ESG goals

Number

Goal

Just started

In progress

Complete

Calendar 
year target

Progress to date

Status

9

Continue to foster a diverse 
and inclusive workplace

Ongoing

•  Became an official partner of ACON’s 
Pride in Diversity Program in FY22

•  Established all-gender facilities in 
our corporate head office in FY22 

•  Delivered LGBTQ+ awareness training 

for all employees in FY23

•  Established DEI Committee in FY23

10

11

12

Continue to invest in the 
growth of our people for 
today and tomorrow

Ongoing

•  Established a Learning and Development 

department in FY22

•  Developed and launched a Learning 

Management System in FY23

•  Delivered bespoke leadership training 

for all people leaders in FY23

Build authentic and 
respectful relationships with 
First Nations communities

Ongoing

•  Established a Reconciliation Action Plan (RAP) 

working group in FY22

•  Published our Acknowledgement of 

Country across all major communication 
channels in FY23

•  Submitted our Reflect RAP for endorsement 

in FY23

Achieve ISO 27001:2022 
Information security 
management systems 
certification

2025

•  Established internal Cyber governance FY21 

•  Aligned to the ISO 27001 framework in FY21

•  Adopted risk-based cyber model FY22

•  Expanded our internal cyber capability in FY22

•  Partnered with the Australian Cyber Security 

Centre (ACSC) in FY23

2121

Annual Report 2023Annual Report 2023Environmental, social and governance statement
continued

Caring for 
the planet

Carbon emissions and energy management

Addressing the many challenges associated with climate 
change will require a considered approach to how we 
operate into the future. We have made great progress over 
the past two years to understand the full scope of our 
greenhouse gas (GHG) emissions, and while reducing our 
emissions footprint remains a key priority, we know we have 
a long way to go.

Through our partnership with Carbon Neutral, we 
completed our annual GHG inventory in accordance 
with the Greenhouse Gas Protocol Corporate Standard. 
Details and insights from this report helped to inform the 
development of our four-year carbon-reduction strategy.

In FY22, we set a target to offset 100% of our direct 
emissions (Scope 1 and 2) and to begin procuring renewable 
energy for our corporate head office. In FY23, we invested 
in Australian Carbon Credit Units (ACCUs) from projects 
which established native forests through human induced 
regeneration (HIR) in Eastern Australia. These projects 
positively impact the triple bottom line through a diverse 
range of benefits, including:

• 

improved water and soil quality,

•  biodiversity conservation,

• 

increased social capital,

•  knowledge sharing and education,

• 

• 

job creation in regional areas, and

investment in regions and rural communities. 

We are committed to reducing 
our carbon emissions by 
45% by 2030

We started procuring renewable energy for our head office, 
which will constitute 25% of our total power usage. We aim 
to build on this by installing solar panels at our head office, 
which will allow us to offset most of our grid requirements 
and transition towards 100% renewable energy.

We recognise that the largest component of our carbon 
footprint is related to indirect emissions (Scope 3), which 
occur along our value chain and outside our operational 
control. We understand that collaboration will be key to 
addressing this issue and are currently exploring strategies 
to effectively manage and reduce our Scope 3 emissions.

Temple & Webster GHG 
emissions (tonnes carbon 
dioxide equivalent [t CO2e])

Scope 1

Scope 2

Scope 3

FY22

0.02

112.33

FY23

0.05

255.79

26,810.50

27,759.05

Total GHG Emissions

26,922.85

28,014.89

In FY23, our carbon footprint increased by 4%  
(1092.04 t-CO2e), primarily due to resuming regular office 
operations after the COVID-19 pandemic. This led to higher 
electricity consumption on-site at our corporate head office, 
increased employee presence, regular staff commuting, and 
a rise in domestic and overseas business travel.

As we analyse the changes in our carbon footprint, we 
recognise that the return to work has a material impact on 
our emissions. Whilst this necessitates further attention, 
we are confident that we can significantly reduce the 
carbon emissions contributed by our controlled operations 
throughout FY24 and beyond. 

United Nations Sustainable Development Goals that align with this area of focus1 

1.  The  framework is a comprehensive roadmap consisting of 17 interconnected goals aimed at addressing social, economic and environmental changes to 

create a better world for all by 2030. Please refer to this link for further information - https://sdgs.un.org/goals.

2222

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Reducing the impact of our products

As Australia’s leading online-only retailer for the home, 
we are committed to developing and sourcing lower- 
impact products through third-party certification, ethical 
procurement practices and trialing end-of-life product 
solutions to divert waste from landfill to support a circular 
economy.

100% of our private label 
suppliers received corrective 
action plan reports

We understand the importance of responsible product 
stewardship and are committed to managing the full life 
cycle of our products to minimise any associated impacts.

We continued to build on our efforts in FY20 to promote 
ethical procurement practices and transparency within our 
supply chain. In FY23, we continued to assess our supply 
chain for modern slavery risk, ensuring all private label 
suppliers were audited for social and ethical compliance 
with fair work and labour standards. As a result of our 
commitment to continuous improvement, 100% of our 
private label suppliers received corrective action plan 
reports based on the findings from these audits (where 
necessary). These reports allow us to effectively manage 
human rights risks within our supplying factories, while 
providing our suppliers with key insights that empower 
them to improve social management systems and labour 
practices. Our long-term goal is to engage with suppliers 
across every tier of our supply chain and to partner with 
them in addressing modern slavery where it may exist. 

In line with our FY22 commitment, we continued to develop 
sustainability credentials for our range. Our focus in FY23 
was to engage and collaborate with suppliers to identify 
the proportion of our range that incorporates responsibly 
sourced timber in the final product. The emphasis was on 
improving our internal procedures to ensure that any related 
claims are accurate and verifiable. 

In FY23, an internal leadership group was established to 
identify and plan for how we could prevent customers’ old 
products from ending up in landfill. We will continue to build 
on the findings from this project and aim to trial an end-of- 
life product solution in FY24 that will reduce the number 
of products sent to landfill by diverting valuable material 
resources into the circular economy.

We understand the important role we play in protecting 
the environment for future generations. We will work 
closely with our partners to ensure we can continue to 
deliver beautiful solutions for our customers while making 
a positive difference within the global community. 

United Nations Sustainable Development Goals that align with this area of focus

2323

Annual Report 2023Annual Report 2023Environmental, social and governance statement
continued

Responsible packaging

In FY22, we worked with an external consultant to conduct 
a materiality assessment of our business. The assessment 
revealed that responsible packaging emerged as the most 
significant focus area for our business and stakeholders. 
As a result, we made a commitment to meet the National 
Packaging Targets by 2025. 

As part of this commitment, we joined an industry-driven 
initiative and became a member of APCO. In the second half 
of FY23, we submitted our first annual report, which defines 
and details the packaging footprint of our extensive private 
label range. Our overall performance has been classified as 
‘Getting started’, acknowledging that we are at the initial 
stages of the journey.

As a member of APCO, we have access to a comprehensive 
suite of resources, including technical guides, case studies 
and webinars. These resources will assist us in implementing 
practical measures to optimise, and reduce the impact of, 
our packaging.

Recognising that protective packaging plays a pivotal role 
in reducing transit damages and subsequent product waste, 
we are actively collaborating with key private label suppliers 
to assess our packaging against the Sustainable Packaging 
Guidelines (SPGs) prescribed by APCO. Through this 
collaboration, we aim to improve the recoverability of 
our packaging and support our customers in diverting 
packaging waste from landfill via kerbside recycling systems. 

Submitted our first 
APCO Annual Report  
and Action Plan

In line with the SPGs, we are also working closely with our 
private label suppliers to increase the proportion of recycled 
content used in our packaging to 20% in FY24. We believe 
this is an area of critical importance as it not only reduces 
our reliance on virgin materials, but also promotes a circular 
economy by giving new life to recycled materials.

United Nations Sustainable Development Goals that align with this area of focus

2424

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Supporting our people 
and communities

Diversity, equity and inclusion

An important part of living more beautifully is to invest in 
the wellbeing and development of our employees, so that 
every individual has opportunities to succeed and thrive. 
We know that people are happier and more fulfilled at 
work if they can be their authentic selves. We want our 
employees to feel safe, comfortable and have a true sense 
of belonging in the workplace. 

Through the use of formal feedback mechanisms, we are 
able to identify areas of opportunity to nurture a culture of 
continuous learning and development, whilst continuing to 
drive a strong employee engagement score. Being aware 
of our employees’ passions, strengths and areas of interest 
allows us to equip them with the necessary tools and 
resources to achieve their goals.

In FY23, we successfully launched our employee Learning 
Management System (LMS) – a comprehensive, centralised 
hub for all training and learning content. The LMS hosts 
a large range of enterprise-wide learning programs, 
covering onboarding, compliance, leadership and career 
development. We also curated a content library and 
personalised learning pathways that empower our team 
to engage in self-directed learning at their own pace. 
In partnership with Thinka, an independent external learning 
and development business, our leaders received bespoke 
leadership training which consisted of:

• 

interactive workshops, 

•  practical support tools, and

•  our new leadership framework.

We recognise the importance of developing our leaders 
to ensure we are investing in the growth of our people for 
today and tomorrow. 

Nurturing the mental health and wellbeing of our employees 
has consistently remained a fundamental aspect of 
our corporate culture. We will continue to focus on our 
employees’ mental health by inviting them to participate in 
daily mindfulness in our new Wellness Room. Through our 
LMS, employees also have access to a range of wellbeing 
resources to support their holistic growth. To ensure 
we have the necessary resources to best support our 
employees, members of our leadership team have been 
trained and certified in mental health first aid training. We 
are assessing the potential to expand this training to all 
employees in future.

All employees were provided 
with LGBTQ+ awareness training 
and have ongoing access to 
the training

In FY23, we became members of Diversity Council Australia 
(DCA) and established our internal DEI Committee. As 
members of DCA, we have access to comprehensive 
resources, subject matter experts and unique research. 
These resources will help the DEI Committee to identify 
best practices and guide our initiatives for being an inclusive 
workplace where everyone can genuinely thrive.

In line with our DEI efforts, an internal leadership group was 
established to investigate and develop potential strategies 
which will help to remove bias from our recruitment process. 
In FY23, we trialed some of these strategies to identify 
opportunities for improvement and to assess effectiveness 
in removing bias. Whilst this is just a small step in our 
recruitment process, we remain committed to evolving our 
internal hiring procedures so they are fair and equitable for 
everyone.

United Nations Sustainable Development Goals that align with this area of focus

2525

Annual Report 2023Annual Report 2023Environmental, social and governance statement
continued

Advancing reconciliation

In FY23, we reaffirmed our dedication to advancing 
reconciliation with Aboriginal and Torres Strait Islander 
peoples in Australia. Guided by our commitment to 
authenticity and collaboration, we embarked on a 
transformative journey.

To deepen our understanding and recognition of the land 
on which we operate, we participated in an enlightening 
Acknowledgement of Country workshop led by a First 
Nations facilitator from Murawin, an independent external 
Indigenous consultancy certified by Supply Nation. 
This workshop served as a catalyst for developing an 
appreciation of Country and its significance to First Nations 
Australians. Through guided learnings and thoughtful 
discussions, we explored various types of acknowledgements 
to understand their true meaning and purpose. This helped 
us to develop our own Acknowledgement of Country, which 
is used on all our major communication channels, symbolising 
our commitment to honouring and respecting the lands, 
waterways and skies that we use to store and transport our 
products. Our Acknowledgement of Country also recognises 
the Gadigal and Wangal people as the Traditional Owners 
and Custodians of the lands where our head office is located.

Building on our efforts, we celebrated NAIDOC Week in 2022 
by showcasing the remarkable talent of First Nations artists 
on our website. We took great care to ensure that artists 
were portrayed in an authentic and respectful manner, and 
were proud to provide them with a platform to showcase 
their talents. To ensure accuracy and to adhere to cultural 
protocols, we collaborated directly with individual artists to 
fact-check and obtain their approval for all content before 
publication. Our campaign encompassed Instagram stories, 
Pinterest pins, and a dedicated customer email, showcasing 
the stories and selected artworks of four gifted First Nations 
artists. Moving forward, we remain committed to celebrating 
and promoting the incredible talent of First Nations artists.

2022 NAIDOC Week Campaign 
Artist – Amanda Hinkelmann

United Nations Sustainable Development Goals that align with this area of focus

2626

Temple & Webster Group Ltd  Temple & Webster Group Ltd  At the end of 2022, we moved into our new Eora (St Peters, 
NSW) office. We were welcomed through a Smoking 
Ceremony and Welcome to Country, led by Brendan Kerin, 
skin name Japangardi, a cultural representative of the 
Metropolitan Aboriginal Land Council. Brendan’s personal 
journey of rediscovering his identity by reconnecting with 
Country fostered a deep appreciation for the enduring 
connections First Nations people share with the land. 
This experience was a powerful reminder of the importance 
of acknowledging and valuing the traditions and wisdom 
passed down through generations.

Throughout the development of our Reflect Reconciliation 
Action Plan, Murawin has stood as our invaluable ‘Critical 
Friend’, facilitating meaningful discussions on important 
topics and ensuring we were supported every step of the 
way. These workshops allowed our team to reflect, ask 
questions and lay the groundwork for essential learning 
resources. Together, we explored cultural protocols, job 
parity, cultural safety and the appropriate use of First Nations 
terms and languages in professional and everyday contexts. 
Through these engagements, we embraced the opportunity 
to drive social and cultural change within our organisation to 
foster an inclusive and respectful environment for all.

Smoking Ceremony for the opening of our new corporate head office

2022 NAIDOC Week campaign  
Artist – Russellina Puruntatameri

Welcome to Country led by Brendan Kerin

2727

Annual Report 2023Annual Report 2023Environmental, social and governance statement
continued

Giving back

Since 2018, we have partnered with Women’s Community 
Shelters (WCS), an organisation dedicated to providing 
community-based emergency accommodation and 
support to women and children at risk of homelessness and 
domestic and family violence. In the past five years, we have 
supported and contributed to eight shelters by donating 
furniture and homewares, leveraging our design expertise to 
style rooms, handling the delivery of product and providing 
employee volunteer services for assembly and installation. 

This year, we focused our efforts on supporting Blue Wren 
House – Camden Women’s Shelter and The Haven – Nepean 
Women’s Shelter. We provided furniture, homewares, 
delivery and assembly, and styled these safe havens for 
women and children in need of support.

In December, we aimed to bring joy and empowerment to 
the residents of the WCS. We initiated a Christmas gift card 
donation campaign, enabling residents to choose what 
they wanted to purchase for themselves or their children. 
This gesture provided a sense of agency and allowed 
individuals to select items that would truly bring happiness 
and fulfilment to their lives during the holiday season.

Following our collaboration in FY22, we launched a formal 
partnership with the Black Dog Institute, a not-for-profit 
organisation for the diagnosis, treatment and prevention 
of mood disorders such as anxiety and depression. As part 
of our mutually beneficial partnership, we will continue to 
provide the Black Dog Institute with furniture, homewares 
and styling services, in return for employee access to 
important mental health tools and resources.

Blue Wren House – Camden Women’s Shelter

In our ongoing commitment to supporting a diverse range 
of causes, we also participated in:

•  Australia’s Biggest Morning Tea – a fundraising event 

that brings people together to enjoy a morning tea while 
raising funds for cancer research and support services

•  STEPtember – a fitness and fundraising challenge that 
encourages participants to take 10,000 steps a day for 
28 days in support of people living with cerebral palsy

•  RSPCA Cupcake Day – a fundraising event where 
participants bake and sell cupcakes to raise funds 
for the Royal Society for the Prevention of Cruelty 
to Animals (RSPCA)

•  Red Ribbon Appeal – a campaign to raise awareness 
and support for people living with HIV/AIDS, and 
promote prevention and education; and combat stigma 
around the disease

•  MINUS18 – an organisation that works to lead change, 
build social inclusion and advocate for an Australia 
where young LGBTQ+ people are safe, empowered 
and surrounded by people who support them.

United Nations Sustainable Development Goal that align with this area of focus

2828

Temple & Webster Group Ltd  Temple & Webster Group Ltd  Being a good 
corporate citizen

Integrity

We are committed to the high ethical standards outlined 
in our Code of Conduct. We expect our employees to 
act honestly and with integrity in all their dealings on 
behalf of the company, including in their interactions 
with colleagues, business partners, customers and 
the community. Our Code of Conduct is available at 
www.templeandwebstergroup.com.au. 

Customer data, privacy and security

We are committed to safeguarding customer data and 
preserving privacy in adherence to legislative requirements, 
specifically the Privacy Act 1988 (Cth) and associated 
amendments, such as the Notifiable Data Breaches scheme. 

Highly publicised data breaches in FY23 highlight the 
risks to all Australian organisations. We see this as a call 
to further enhance security practices across all aspects 
of our business, both technically and operationally. The 
prevalence of these attacks in recent times call for technical 
investment, employee vigilance and a focused approach to 
corporate governance to respond effectively. Our response 
across all levels of our organisation is commensurate to the 
threats faced.

As a leading e-commerce company, we take the protection 
of data and digital assets with the utmost criticality.

In the past 12 months, Temple & Webster has adopted 
a risk-based approach to Cyber Security strategy, by 
implementing a zero-trust cyber security architecture 
and aligning to ISO 27001 as a best practice to bolster 
cyber defences. Furthermore, we have made substantial 
investments in technical security controls and have invested 
in dedicated information security resources.

Beyond this, we have committed to the implementation and 
certification of the internationally recognised Information 
and Data Security Standard, ISO 27001:2022. We consider 
this initiative to validate our commitment to our cyber 
security duties and trust model in the protection of our 
corporate and customer data. ISO 27001:2022 is the most 
comprehensive and relevant security best practice for our 
business. By adhering to this standard, we aim to protect 
our digital assets, effectively manage our supply chain, 
foster crucial technical relationships and establish an 
ongoing framework for enhancing security measures.

To ensure we stay abreast of evolving security threats and 
maintain a proactive approach, we regularly collaborate with 
external parties to obtain objective and timely insights that 
help identify potential risks to Temple & Webster's data and 
privacy obligations. We have partnered with the Australian 
Cyber Security Centre (ACSC) to gain continual and 
relevant insights into real time threats, to increase vigilance 
to the Temple & Webster environment. 

Further investments have been earmarked for the short 
to medium term to continue to respond to the Company’s 
overall commitment to the detection and prevention of 
cyber threats. 

We will continue to reinforce our risk based approach by 
implementing initiatives such as: further expanding on our 
internal resources with the addition of dedicated SecOps 
resources, dedicated CISO role to further support our cyber 
related project investments being Identity and Access 
Management, enhancements to Zero Trust architecture, 
Incident Response and Observability, Compliance and 
Governance controls to name a few. 

Corporate governance

The Board of Directors (the Board) of Temple & Webster 
Group Ltd is committed to high standards of governance, 
legislative compliance and ethical behaviour. It is responsible 
for the overall operation, stewardship and governance of the 
Company. The Board has adopted a framework of corporate 
governance principles, policies and practices that are in line 
with the ASX Principles and Recommendations to promote 
responsible governance. Our Corporate Governance 
Statement reports the Company’s compliance with the 
fourth edition of the ASX Corporate Governance Council’s 
Corporate Governance Principles and Recommendations 
and has been approved by the Board. The Corporate 
Governance Statement and further details about corporate 
governance policies adopted by the Company and the 
Board are available on the Company’s website at www.
templeandwebstergroup.com.au. 

2929

Annual Report 2023Annual Report 2023Directors’ 
report

The directors present their report, together with the consolidated financial statements, on the consolidated entity (referred 
to hereafter as the ‘Group’) consisting of Temple & Webster Group Ltd (referred to hereafter as the ‘Company’ or ‘parent 
entity’) and the entities it controlled at the end of, or during, the year ended 30 June 2023. 

Directors

The following persons were directors of Temple & Webster Group Ltd during the whole of the financial year and up to the 
date of this report, unless otherwise stated:

Stephen Heath

Conrad Yiu

Mark Coulter

Belinda Rowe

Susan Thomas (retired on 30 November 2022)

Melinda Snowden (appointed on 1 June 2023)

Principal activities

Temple & Webster is Australia’s largest pure play online retailer of furniture and homewares. 

Temple & Webster has over 200,000 products on sale from hundreds of suppliers. The business runs an innovative drop-
shipping model whereby products are sent directly to customers by suppliers, enabling faster delivery times and reducing 
the need to hold inventory, allowing for a larger product range. 

The drop ship range is complemented by a private label range which is sourced directly by Temple & Webster from overseas 
suppliers. 

Temple & Webster’s Trade & Commercial division services the B2B market, offering exclusive product ranges, procurement, 
styling, specialised delivery and installation services by a dedicated support team.

The Group also provides home improvement products via both the Temple & Webster and The Build websites, with 
everything customers need to renovate and redecorate their homes.

Temple & Webster Group’s registered office and principal place of business is 2, 1-7 Unwins Bridge Road, St Peters, Sydney, 
Australia and is listed on the Australian Securities Exchange under the code TPW.

Dividends

There were no dividends paid, recommended, or declared during the current or previous financial year.

30

Temple & Webster Group Ltd  Operating and financial review

Key operating and financial metrics for the year ended 30 June 2023 include:

•  FY23 revenue of $396 million which reflects ~90% retention of COVID-19 revenue; 

•  Q4 FY23 saw a return to year on year growth after cycling COVID-19 impacted periods;

•  Gross margin % for FY23 at 32.6%, an increase from the prior comparison period (‘pcp’) despite inflationary pressures 

during the year;

•  EBITDA of $14.8 million was within the Group’s communicated range of 3-5% at 3.7%;

•  H2 EBITDA was up 80% on the pcp; and

•  Free cash flow of $17.0 million (before share buy-back and Renovai investment) with a closing cash balance of 

$105 million, and no debt.

Please refer to the Group’s FY23 results presentation for further commentary on the Group’s financial and 
operational results.

Key business risks

There are a number of market, financial and operational risks both specific to the Group and externally that could have 
an adverse effect on the Group’s future performance. The Group has a risk management framework in place with internal 
control systems to identify key business risks and mitigate them to an acceptable level. The material business risks are 
summarised below (not exhaustive nor in order of materiality).

Key risk

Description

Continued growth 
of retail ecommerce 
in general and 
growth in demand 
may be affected by 
economic factors

While the B2C retail ecommerce market and the online market for furniture, homewares and 
home improvement have been growing there is no guarantee this will continue into the future. 
The Group is subject to factors outside its current control including Australia’s outlook for 
economic growth, cash rate, taxation, unemployment rate, consumer sentiment, global economic 
outlook, foreign economic shocks and building activity. One or more of these factors could cause 
a slowing or contraction in the forecasted growth in the market and industry. 

New and existing 
competitors could 
adversely affect 
prices and demand 
and decrease the 
Group’s market 
share

Supply chain might 
be disrupted 

Political, economic 
or social instability

The Australian furniture, homewares and home improvement segment is highly fragmented. 
Competition can arise from a number of sources including domestic and foreign traditional 
offline retailers, including multi-channel, mono-channel, multi-branded retailers, and online-only 
ecommerce competitors. Existing online competitors may strengthen through funding or industry 
consolidation, or through financial or operational advantages which allow them to compete 
aggressively on pricing. Competition may also come from third-party suppliers establishing their 
own online presence as opposed to utilising the Group’s platform. As a result, this may increase 
the costs of customer acquisition, lower margins due to pricing pressure and reduce the Group’s 
market share in the furniture and homewares segment in Australia. 

There remains a risk that the spread of pandemic like COVID-19 or a similar event, has an adverse 
impact on the Group’s supply chain. This could occur if the ability to transport products between 
countries is disrupted, the Group’s key suppliers are negatively affected or the Group is otherwise 
unable to efficiently distribute products to customers. In the event that the supply chain of the 
Group is disrupted, this may have a material adverse effect on the Group’s operating performance 
and earnings.

The Group’s suppliers and service providers are also subject to various risks which could limit 
their ability to provide the Group with sufficient, or any, products or services. Some of these risks 
include raw material costs, inflation, labour disputes, union activities, boycotts, financial liquidity, 
product merchantability, safety issues, natural disasters, disruption in exports, trade restrictions, 
currency fluctuations and general economic and political instability (including as a result of 
pandemics such as COVID-19 and military conflicts). The Group is also exposed to risks related 
to labour practices, environmental matters, disruptions to production and ability to supply, and 
other issues in the foreign jurisdictions where suppliers and service providers operate. Any of 
these risks, individually or collectively, could materially adversely affect the Group’s financial and 
operational performance.

31

Annual Report 2023Directors’ report
continued

Key risk

Description

Performance, 
reliability and 
security of websites, 
databases, operating 
systems

The Group’s financial and operational performance could be adversely affected by a system 
failure that causes disruption to its websites, or to third party suppliers of its systems and 
products. This could directly damage the reputation and brand of the relevant platform and could 
reduce visitors to the Group’s website and directly influence sales to customers. The Group’s 
databases and systems are hosted on platforms provided by third party providers. As a result, the 
Group is subject to its own disaster planning contingencies and those of its third parties to deal 
with events that are beyond the control of those parties such as natural disasters, infrastructure 
failures, terrorist and cyber attacks. A material failure in the systems of a third party provider is 
likely to have a material impact on the systems and operations of the Group’s platforms. 

Unauthorised use of 
intellectual property 
or independent 
development of 
technology

Substantial parts of the Group’s online platforms, distribution software, applications, data 
analytics and customer databases are seen as proprietary information. Unauthorised parties may 
obtain or copy, or seek to imitate, all or portions of this intellectual property or independently 
develop technology that is similar and may be in breach of proprietary rights. In this instance, the 
Group may seek legal actions to remedy the breach of proprietary information. This may incur 
legal or other fees and if unsuccessful may have a material adverse effect on the Group’s financial 
and operational performance in the future.

Laws and 
regulations may 
change

Key Management 
Personnel (‘KMP’) 

The Group is subject to, and must comply with, a variety of laws and regulations in the ordinary 
course of its business. These laws and regulations include those that relate to fair trading and 
consumer protection, product safety, employment, property, taxation (including goods and 
services taxes and stamp duty), accounting standards, customs and tariffs. Failure to comply with, 
or changes to, laws and regulations may adversely affect the Group, including by increasing its 
costs either directly or indirectly (including by increasing the cost to the business of complying 
with legal requirements).

The Group relies on the expertise, experience and strategic direction provided by its Key 
Management Personnel. These individuals have extensive experience in, and knowledge of, the 
Group’s business. Additionally, successful operation of the Group’s business depends on its 
ability to attract and retain quality employees. Competition could increase the demand for, and 
cost of hiring, quality employees. The Group’s ability to meet its labour needs while controlling 
costs associated with hiring and training employees is subject to external factors such as 
unemployment rates, prevailing wage legislation and changing demographics. 

Significant changes in the state of affairs

During the period, the Group commenced its 10-year lease for office space in St Peters. Sydney. The lease was recognised in 
accordance with AASB 16 Leases and a right of use asset and lease liability were recognised in November 2022. 

In March 2023, the Group also entered into an agreement to invest in convertible notes of US$2,000,000 issued by 
Renovai, Inc (‘Renovai’) a start-up developing AI/Augmented Reality (‘AR’) interior design tools. As at 30 June 2023, the 
Group purchased US$400,000 of convertible notes with further investments of US$1,600,000 to be made over the next 
financial year. The Group’s investment is in alignment with its strategy to innovate its digital offering through 3D and AI/AR 
generated tools to help customers navigate the vast range of furniture & homewares to aid engagement and conversion.

The Group also initiated an on-market share buy-back program up to a maximum value of $30,000,000 which commenced 
in April 2023. The buy-back will be for a period up to 12 months. The Group considers the acquisition of shares at prevailing 
prices to be effective capital management while retaining financial flexibility to fund accretive organic and inorganic 
opportunities as part of its growth strategy. As at 30 June 2023, the Group had bought back 2,696,254 TPW shares worth 
$12,295,000.

32

Temple & Webster Group Ltd  Matters subsequent to the end of the financial year

In July 2023, the Group purchased a further US$600,000 of convertible notes issued by Renovai. No adjustment is required 
in the Group’s financial statements for the year ended 30 June 2023. 

No other matters or circumstances have arisen since 30 June 2023 that has significantly affected, or may significantly affect 
the Group’s operations, the results of those operations, or the Group’s state of affairs in future financial years.

Likely developments and expected results of operations

Other than the developments described in this report, the Directors are of the opinion that no other matters or 
circumstance will significantly affect the operations and expected results of the Group.

Environmental regulation

The Group is not subject to any significant environmental regulation under Australian Commonwealth or State law.

Share Options

Unissued shares

As at the date of this report and at the reporting date, there were 8,962,052 unissued ordinary shares under options. Refer 
to the remuneration report for further details of the options outstanding for Key Management Personnel (‘KMP’).

Information on directors

Name:

Title:

Stephen Heath

Independent Non-Executive Director

Qualifications:

Graduate of the Australian Institute of Company Directors

Experience and expertise:

Stephen is a specialist in consumer goods brand management with over 25 years of 
manufacturing/wholesale distribution and retail experience. Stephen spent 16 years as 
CEO of some of Australia’s best-known consumer brands that includes Rebel Sport, 
Godfrey’s and Fantastic Holdings with operations experience in Australia, New Zealand, 
and Asia. His experience includes working for both ASX Listed and Private Equity 
owned companies.

Other current directorships:

Non-Executive director of Best & Less Group Holdings Ltd (appointed on 24 June 2021).

Former directorships 
(last 3 years):

Chair of Shiro Holdings Limited (appointed on 24 October 2019 and resigned on 
2 November 2021). Chair of Redhill Education Limited (appointed to board on 1 September 
2019, elected as Chair on 1 December 2020 and resigned on 30 October 2021).

Special responsibilities:

Chair of the Board

Interests in shares:

34,000

Interests in options over shares:

181,026

Interests in restricted rights:

14,150

33

Annual Report 2023Directors’ report
continued

Name:

Title:

Susan Thomas

Independent Non-Executive Director 

Qualifications:

Bachelor of Commerce and Bachelor of Law from the University of New South Wales

Experience and expertise:

Other current directorships:

Susan is an experienced company director and audit and risk committee chair. Susan 
has expertise in technology and law. Susan founded and was the Managing Director at 
FlexiPlan Australia, an investment administration platform sold to MLC.
Susan Thomas retired as the Non-Executive Director and Chair of the Audit and Risk 
Management Committee on 30 November 2022. 

Director of Fitzroy River Holdings Limited (appointed on 26 November 2012), Director 
of Nuix Limited (appointed on 18 November 2020), Director of Cash Converters 
International Limited (appointed on 1 April 2022) and Maggie Beer Holdings Limited 
(appointed on 1 July 2022).

Former directorships 
(last 3 years):

In February 2020, Fitzroy River Holdings Limited acquired 100% of Royalco Resources 
Limited (‘Royalco’). Accordingly, Royalco is no longer a listed entity; however, 
Susan Thomas is still a director of Royalco (appointed on 22 February 2017).

Special responsibilities:

Chair of the Audit and Risk Management Committee

Interests in shares:

Nil

Interests in options over shares:

181,026*

Interests in restricted rights:

Nil

Name:

Title:

Qualifications:

Experience and expertise:

Melinda Snowden

Independent Non-Executive Director

Bachelor of Economics and Laws from the University of Sydney, Graduate Diploma 
in Applied Finance and Investment (SIA), Graduate of the Australian Institute of 
Company Directors

Melinda joined the Group in June 2023. Melinda has extensive experience in legal and 
professional corporate advisory roles, as well as on listed Boards in technology, retailing, 
property and funds management. Melinda has 28 years of experience in finance and has 
been a professional Non-Executive Director since 2010 in a broad range of industries. 
Melinda is currently a Non-Executive Director and Chair of the Audit and Risk Committee 
of ASX listed companies Best & Less Group Holdings, Megaport and Newmark Property 
REIT. Melinda is also Chair of LLS Fund Services.
Melinda has held previous non-executive director roles at WAM Leaders, MLC, Vita 
Group, Mercer Investments (Australia), Sandon Capital Investments, Our Ark Mutual, 
Newington College, Sane Australia and Kennards Self Storage. Prior to her non-executive 
career, Melinda held investment banking roles with Grant Samuel, Merrill Lynch, and 
Goldman Sachs and was a solicitor in the corporate division of Herbert Smith Freehills.

Other current directorships:

Non-Executive Director and Chair of the Audit and Risk Committee of Megaport Ltd 
(appointed on 1 June 2021 ), Best & Less Group Ltd (appointed on 18 May 2021) and 
Newmark Property REIT (appointed on 1 March 2021).

Former directorships 
(last 3 years):

WAM Leaders Limited (ASX:WLE) (appointed on 1 March 2016 and resigned 1 June 
2023) Sandon Capital Investments Limited (ASX:SNC) (appointed on 14 May 2018 and 
resigned 2 March 2022).

Special responsibilities:

Chair of the Audit and Risk Management Committee

Interests in shares:

Nil

Interests in options over shares: Nil

Interests in restricted rights:

Nil

*  Susan Thomas’ interest in options is shown as at her retirement on 30 November 2022.

34

Temple & Webster Group Ltd  Name:

Title:

Qualifications:

Experience and expertise:

Conrad Yiu

Non-Executive Director

Bachelor of Commerce from the University of New South Wales, Master of Business 
Administration from the University of Cambridge, Member of the Australian Institute of 
Company Directors 

Conrad is a co-founder of Temple & Webster and joined the Board on its formation in 
July 2011. Conrad was Chair of the Company until immediately prior to the IPO. Conrad 
has over 25 years’ commercial and advisory experience with a focus on investing in, 
acquiring and building high-growth businesses in the consumer and technology sectors. 
Conrad was previously Director of Corporate Development with the digital division of 
Newscorp Australia (formerly News Digital Media), co-founder and Director of a London-
based mobile technology company, a manager at Arthur Andersen and is a principal 
of ArdenPoint, an investment firm which he co-founded with Mark Coulter in 2011, the 
CEO of Temple & Webster Group Ltd. Conrad is a co-founder and current partner of 
AS1 Growth Partners, a private investment firm focused on growth and technology 
investments in public and private markets. 

Other current directorships:

Non-Executive Director of FiscalNote (NYSE: NOTE) (Appointed 25 October 2020)

Former directorships 
(last 3 years):

None

Special responsibilities:

Deputy Chair of the Board from 1 November 2022

Interests in shares:

2,327,933 ordinary shares*

Interests in options over shares:

181,026

Interests in restricted rights:

23,125

Name:

Title:

Qualifications:

Experience and expertise:

Belinda Rowe

Independent Non-Executive Director

Bachelor of Arts Monash University, Graduate of the Australia Institute of Company 
Directors

Belinda is an experienced business leader and successful marketing executive. Belinda’s 
extensive professional experience lies in marketing communications, content, media 
and digital marketing technologies. Belinda led media and marketing communications 
businesses for Zenith and Publicis Media globally based in the UK, and held many senior 
roles in the marketing industry, including as CEO of ZenithOptimedia for 10 years in 
Australia and as Director Brand and Marcoms for O2 Telefonica in the UK.

Other current directorships:

Independent Non-Executive Director of ARN Media Ltd (appointed on 5 February2019), 3P 
Learning Limited (appointed in September 2021) and Sky NZ (appointed on 1 March 2023).

Former directorships 
(last 3 years):

Nominated Director Soprano Design (appointed on 22 September 2020 and resigned 
in February 2023).

Special responsibilities:

Chair of the Nomination and Remuneration Committee

Interests in shares:

12,100

Interests in options over shares: Nil

Interests in restricted rights:

6,382

*  ArdenPoint Ecommerce Unit Trust (‘Trust’) is the registered holder of 2,427,828 Ordinary Shares of Temple & Webster Group Ltd. For the purpose of 

above table, both Mr Coulter and Mr Yiu, the beneficiaries of the Trust, are considered to hold 50% of the shares held by the Trust. This is similar to prior 
financial years.

35

Annual Report 2023Directors’ report
continued

Name:

Title:

Mark Coulter

Executive Director

Qualifications:

Bachelor of Laws and Bachelor of Science (Biochemistry) from the University of Sydney

Experience and expertise:

Mark is a co-founder of Temple & Webster and has been involved as an advisor to 
the Group since its inception. Previously, Mark worked at News Limited where he 
was Director of Strategy for the Digital Media properties and managed a portfolio of 
businesses including Moshtix, a digital ticketing company. Mark was also a solicitor at 
Gilbert + Tobin and management consultant at McKinsey & Company. 

Other current directorships:

Former directorships 
(last 3 years):

None

None

Special responsibilities:

Chief Executive Officer

Interests in shares:

1,895,322 ordinary shares*

Interests in options over shares: 8,600,000

Interests in restricted rights:

Nil

*  ArdenPoint Ecommerce Unit Trust (‘Trust’) is the registered holder of 2,427,828 Ordinary Shares of Temple & Webster Group Ltd. For the purpose of 

above table, both Mr Coulter and Mr Yiu, the beneficiaries of the Trust, are considered to hold 50% of the shares held by the Trust. This is similar to prior 
financial years.

‘Other current directorships’ quoted above are current directorships for listed entities only and excludes directorships 
of all other types of entities, unless otherwise stated.

‘Former directorships (last 3 years)’ quoted above are directorships held in the last three years for listed entities only and 
excludes directorships of all other types of entities, unless otherwise stated. 

Company secretary

Lisa Jones is Company Secretary of Temple & Webster Group Ltd. Lisa is a corporate lawyer and corporate governance 
professional with more than 20 years’ experience in commercial law and corporate affairs, working with both public listed 
and private companies in Australia and in Europe after starting her career in the corporate practice of Allens. 

Meetings of directors

The number of meetings of the Group’s Board of Directors (‘the Board’) held during the year ended 30 June 2023, and the 
number of meetings attended by each Director were:

Full Board

Nomination and  
Remuneration Committee

Audit and Risk Management  
Committee

Attended

Held

Attended

Held

Attended

Held

Stephen Heath

Susan Thomas1 

Conrad Yiu2

Melinda Snowden3

Belinda Rowe

Mark Coulter

9

3

9

1

9

9

9

3

9

1

9

9

6

2

6

1

6

–

6

2

6

1

6

–

5

2

5

1

5

–

5

2

5

1

5

–

Held: represents the number of meetings held during the time the Director held office.
1.  Susan Thomas resigned as a Non-Executive Director on 30 November 2022.
2.  Conrad Yiu was the acting Chair of the Audit & Risk Management Committee from 30 November 2022 until 1 June 2023.
3. Melinda Snowden was appointed as a Non-Executive Director on 1 June 2023.

36

Temple & Webster Group Ltd  Remuneration 
report (audited)

Dear shareholders,

On behalf of the Board, it gives me immense pleasure to present the FY23 Remuneration Report.

FY23 was a challenging year for Australians, with many having to reassess their discretionary spending in response to rising 
cost-of-living pressures. Despite these difficult trading conditions, we were able to produce a strong set of financial results 
and a return to year on year revenue growth in Q4, and we anticipate that the business will continue to grow as we return to 
our strategy as the category disrupter. 

Based on the business’ overall results, the Board has established a remuneration framework that clearly links the Group’s 
performance with remuneration outcomes. This framework also ensures that the interests of Directors, employees and 
shareholders are closely aligned.

The Board is confident that the outcomes described below are fair and reasonable. We believe that the outcomes strike the 
right balance, as they reward and motivate our key executives whilst meeting the expectations of our shareholders.

FY23 Remuneration Outcomes

The key remuneration outcomes for FY23 were:

•  after a comprehensive review of the remuneration package for Mr Mark Coulter, Chief Executive Officer (‘CEO’), with 
the assistance of external remuneration consultants, several changes were made to the CEO’s remuneration package 
in FY23. The CEO received a $105,000 increase in fixed remuneration. This increase recognises that the CEO’s previous 
fixed remuneration was below market value (below the 10th percentile of the reference group). The increase will be 
the only increase the CEO will receive during the next four years and his remuneration package remains below the 
25th percentile for CEOs of companies of comparable size. 

• 

• 

the Board and CEO agreed that the CEO would continue to not receive a short-term incentive. They also agreed that 
he would maintain a heavy weighting towards long-term equity to ensure he is incentivised to grow the long-term value 
of the Group. 

in a package that was approved by a significant majority of shareholders at the 2022 Annual General Meeting, the 
CEO was awarded 3,600,000 options in three equal tranches of 1,200,000 options. These tranches were all granted 
on 30 November 2022. Each tranche has an exercise price set at a significant premium to the share price at the time 
the options were granted. These exercise prices are $7.06, $9.53 and $12.86, respectively. The premium on the option 
provides an in-built absolute total shareholder return performance hurdle, as the Temple & Webster share price needs 
to exceed the premium exercise price to provide any value to the CEO. This ensures the CEO can only benefit from the 
award if shareholders experience a significant increase in value of their Temple & Webster shares. The option award 
is intended as the only variable remuneration the CEO will receive over the four-year period ending on the date the 
FY26 annual report will be approved. 

•  Mr Adam McWhinney, Chief Experience Officer (‘CXO’), and Mr Mark Tayler, Chief Financial Officer (‘CFO’), did not 
receive an increase in fixed remuneration or any other changes to the structure of their remuneration in FY23. Both 
executives had received increases to their fixed remuneration in FY22. 

• 

the FY23 short-term variable remuneration (‘STVR’) outcomes for the CFO and CXO were 76% and 75% of target, 
respectively. Further details regarding the STVR outcomes are set out in Section 4.2 of this report.

•  performance rights were granted in FY20 to the CFO and selected non-KMP executives under the FY20 long-term 

variable remuneration (‘LTVR’) awards. The share price hurdle, based on a 30-day volume-weighted average price of 
Company shares up to and including 30 June 2022, was met and the awards vested in August 2022. Shares acquired 
by the CFO on the vesting of rights under this award are subject to a two-year holding lock from the vesting date, 
expiring in FY25. 

37

Annual Report 2023Remuneration report (audited)
continued

• 

• 

in addition, the awards made to the founder executives in FY19 both vested in FY23, as all applicable conditions for the 
awards were met. All options awarded to the CEO have vested but have not been exercised. The performance rights 
awarded to the CXO have also vested and were exercised. The shares awarded on exercise to the CXO are now subject 
to a two-year holding restriction, which will be lifted in FY25.

the CXO and CFO received LTVR awards in FY23. The awards are like those made to the CXO and CFO in FY22, except 
for the introduction of a new earnings per share growth (‘EPSG’) hurdle, which applies to 50% of the award. The new 
metric provides management with a second performance metric, which will reward participants for EPSG. The structure 
of the LTVR awards prioritises and rewards indexed relative total shareholder return (‘iTSR‘) growth, to give the executive 
team and Board flexibility to adapt the Group’s strategy as the market evolves. The maximum reward will only be 
permitted under the awards where Temple & Webster has materially outperformed the market. Further details of these 
awards are set out in Section 5.1 of this report.

• 

there were no changes to Non-Executive Directors’ (‘NED’) base or committee fees in FY23, other than the creation of 
a new position of Deputy Chair of the Board, which has an additional fee of $20,000 payable in addition to the base 
Director’s fee. 

•  under the Temple & Webster Group Ltd NED Equity Plan (‘NED Equity Plan’), which was introduced in FY22, three 
Non-Executive Directors elected to have a portion of their Directors’ fees paid in restricted rights in FY23. The NED 
Equity Plan is described further in Sections 6.1 and 6.2 of this report.

FY23 Board changes

There were several Board changes in FY23: 

•  Mr Conrad Yiu was made Deputy Chair of the Board, effective 1 November 2022. This appointment reflects the 
significant contribution he makes to the Board. He also assumed the interim role of Chair of the Audit and Risk 
Management Committee (‘A&RC’) upon the retirement of Ms Susan Thomas from the Board on 30 November 2022.

• 

the Board welcomed the appointment of Ms Melinda Snowden as a Non-Executive Director, effective 1 June 2023. 
At this time, she assumed the Chair of the A&RC.

Looking forward to FY24

•  having made the remuneration changes noted above in FY23, there will be no further changes to the CEO’s 

remuneration in FY24. 

• 

the Board has determined that both the CXO and CFO will receive a 3% increase in fixed remuneration in FY24.  
Furthermore, the Board has also decided that the STVR target opportunity for both the executives should increase from 
25% to 30% of fixed remuneration, with corresponding stretch opportunity increasing from 43.75% to 50%. There is no 
change to LTVR opportunity. 

• 

the Board has determined that the structure of the STVR and LTVR programs will be broadly similar to those programs 
run in FY23.

• 

the Board has determined that Board fees will increase by 5% in FY24. This is the first increase in Board fees since FY21.

I hope the information in this year’s Remuneration Report helps shareholders to understand how the Company manages 
remuneration. I also hope you agree that we have found the right balance as we navigate the current trading conditions 
and our return to a high-growth business.

Belinda Rowe
Chair, Nomination and Remuneration Committee

38

Temple & Webster Group Ltd  The Directors of Temple & Webster Group Ltd present the Remuneration report (‘the Report’) for the Group and its 
controlled entities for the year ended 30 June 2023. This Report forms part of the Directors’ Report and has been 
prepared in accordance with the Corporations Act 2001 (‘the Act’), Corporations Regulation 2M.3.03, in compliance 
with AASB 124 Related Party Disclosures, and audited as required by section 208(3C) of the Act.

The Report is divided into the following sections:

Section

Description

1.  Persons covered by this Report

This section provides details of the Directors and Executives who are subject 
to the disclosure requirements of this report, together with the KMP, including 
roles and changes in roles.

2.  Remuneration overview

This section provides an overview of performance and reward for FY23, 
including ‘at a glance’ summaries.

3.  Remuneration framework, strategy, 

and governance

This section provides details of the elements of the remuneration framework, 
including market positioning, changes to fixed remuneration, variable 
remuneration principles, and the terms of variable remuneration.

4.  FY23 Executive Short-Term Variable 
Remuneration (‘STVR’) plan and 
outcomes

5.  Executive Long-term Variable 

Remuneration (‘LTVR’) plans and 
outcomes

6.  Non-Executive Director 

remuneration

This section outlines the key terms of the FY23 STVR Plan, the key metrics 
that apply to Executive KMPs under the STVR Plan, and their STVR outcomes.

This section outlines the key terms of the FY23 LTVR Plan awards, FY23 
Option awards to the CEO and key prior year equity awards.

This section outlines the Non-Executive Director fee policy, aggregate Board 
fees, Board fees and Committee fees. It also sets out details of the FY23 
awards made under the NED Equity Plan and any prior years’ equity awards to 
Non-Executive Directors.

7.  Statutory tables and supporting 

disclosures

This section provides the statutory disclosures not addressed by preceding 
sections of the Report, including statutory remuneration tables, changes in 
equity, KMP service agreements, related party loans/transactions, and the 
engagement of external remuneration consultants.

39

Annual Report 2023Remuneration report (audited)
continued

1. Persons covered by this report

This report covers KMP which are defined as those who have the authority and responsibility for planning, directing and 
controlling the activities of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the 
Group. The below table outlines the KMP of the Group:

Name

Role 

Non-Executive Directors

Committees1,5

Appointed/ 
(Retired)

Nomination and 
Remuneration

Audit
and Risk 
Management

Stephen Heath

Independent Board Chair

15 October 2016

Conrad Yiu

Deputy Chair, Non-Executive Director3

6 October 2015

Belinda Rowe

Independent Non-Executive Director

26 February 2021

Melinda Snowden

Independent Non-Executive Director4

1 June 2023

Former Non-Executive Director

Susan Thomas

Independent Non-Executive Director

(30 November 2022)

Executive KMP

Mark Coulter2

Managing Director and Chief 
Executive Officer (‘CEO’)

22 April 2016

Adam McWhinney2

Customer Experience Officer (‘CXO’)

1 July 2017

Mark Tayler

Chief Financial Officer (‘CFO’)

18 April 2016

M

M

C

M

M

n/a

n/a

n/a

M

M

M

C

C

n/a

n/a

n/a

1.  M = Member, C = Chair.
2.  These individuals are considered co-founders of the Group and referred as ‘founder executives’ in this report.
3. Mr Yiu was appointed as Deputy Chair of the Board on 1 November 2022 and acted as interim A&RC Chair from 30 November 2022 to 1 June 2023.
4. Ms Snowden was appointed as Chair of A&RC on 1 June 2023. 
5. In FY22, it was announced that a new Technology Management Committee would be established. However, in FY23, the Board determined that given the 
importance of technology at Temple & Webster, all technology matters would be considered by the entire Board during the Board meetings and no new 
Committee was required.

40

Temple & Webster Group Ltd  2. Remuneration overview

2.1 Executive remuneration structure at-a-glance

The following diagram outlines the Executive KMP remuneration cycle under the remuneration framework as applicable 
to FY23:

The timeline below outlines how remuneration is delivered.

Executive Remuneration Components

Component

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Fixed 

Salary and statutory 

Remuneration

superannuation

STVR

2023

1 year performance period ▲

• Y1 STVR performance 
period commences

• STVR performance 

tested

• STVR award delivered 

in Q1, Y2 – 100% 
cash unless Board 
determines otherwise

LTVR

●

2023-2025

• Y1 LTVR performance 
period commences

• Performance rights for Y1 
LTVR granted in Q1, Y1 

• LTVR service tested in Y1

■

• Y1-Y3 LTVR 

performance tested

Two-year additional 
disposal restriction

Once rights vest, participants have until 15 years 
from grant to exercise

Q1, Y1

Q1, Y2

Q1, Y3

Q1, Y4

  Performance rights granted
  Shares released

  Performance tested, and cash award paid
  Performance tested, performance rights vested

The structure outlined above applies to the CXO, CFO and non-KMP executives in the current financial year. The CEO does 
not participate in the STVR and received a separate award of premium-priced options which are intended to cover the next 
four years’ awards. The terms of the CEO’s Options are discussed in Section 5.2. The FY23 STVR outcomes for participating 
Executive KMP are set out in Section 4.2.

2.2 Executive remuneration mix at target

CEO and other executives including KMPs total remuneration package (including the stretch target) is broken down into the 
following four elements.

Executive KMP Remuneration Mix

CEO

14%

0%

86%

Other
Executive
KMP

52%

23%

25%

■  Fixed Remuneration – Cash 

  ■  LTVR – Options 

  ■  STVR – Cash 

  ■  LTVR – Rights

As the CEO does not receive an annual LTVR award and received a single award of Options designed to be his equity 
awards over a four-year term, the value of Mark Coulter’s equity component is based on one-quarter of the value of his 
option award, as determined by an independent valuer.

41

Annual Report 2023 
Remuneration report (audited)
continued

2.3 Group’s performance at a glance

The following outlines the Group’s performance in FY23 in the context of the prior four years, which is intended to assist in 
demonstrating the link between performance, value creation for shareholders, and executive reward:

Normalised 
NPAT1
$000s

NPAT
$000s

Share price2
$

Change in 
share price
$

Dividends3
$

8,986

8,973

12,088

4,560

637

8,305

 11,968

13,954

13,909

3,764

5.88

3.32

10.79

6.31

1.35

2.56

(7.47)

4.48

4.96

0.59

–

–

–

–

–

Change in 
shareholder 
wealth4

Rolling 3-year 
annualised 
TSR5
%

77%

(69%)

71%

367%

78%

(2%)

35%

142%

227%

113%

FY end date

30/06/2023

30/06/2022

30/06/2021

30/06/2020

30/06/2019

1.  Normalised Net Profit After Tax (‘Normalised NPAT’) is calculated as NPAT adjusted for any benefits received from the recognition and utilisation of historical 

tax losses.

2.  Share price at the end of the financial year.
3. Dividends paid during the financial year.
4. Share price change plus dividends on prior financial year.
5. Total shareholder return (‘TSR’) is the sum of share price appreciation and dividends (assumed to be reinvested in shares) during the Measurement Period 

expressed as a growth %. While the Group is not paying the dividends, it’s equal to a rolling three-year annualised share price growth.

3. Remuneration framework, strategy and governance

3.1 Executive remuneration – fixed remuneration, total remuneration package and variable remuneration framework

Total remuneration package (‘TRP’) is intended to be composed of an appropriate mix of remuneration elements including 
fixed remuneration, short-term variable remuneration and long-term variable remuneration. This structure applies to all 
Executive KMP and senior management, other than the CEO.

Fixed remuneration

Short-term variable remuneration

Long-term variable remuneration

Fixed remuneration comprises base 
salary, plus any other fixed elements 
such as superannuation, allowances, 
benefits, fixed equity and fringe 
benefits for example.

Fixed remuneration is intended 
to be positioned competitively in 
the market when assessed against 
suitable benchmarks but may vary 
with decisions around the mix of 
cash, equity and performance-
linked remuneration as negotiated 
between the Board and each 
incumbent on a case-by-case and 
fit-for-purpose basis.

100% of the FY23 STVR will be paid in 
cash (unless determined otherwise by 
the Board).

Performance is measured over the 
financial year with a combination 
of financial and non-financial goals 
for Executive KMP, both at a Group 
and Individual scorecard level with 
threshold, target and stretch levels.

FY23 STVR goals were:

Group targets (75%)
–  Group revenue growth (30%)
–  EBITDA margin (30%)
–  Customer satisfaction (20%)
–  Employee engagement (20%)

Various individual goals tied to 
role (25%)

Refer to Section 4.1 for more details.

Performance rights vesting after 
three years.

The LTVR program aligns executives 
to shareholder interests through 50% 
of the award being tested against 
iTSR targets (indexed relative Total 
Shareholder Return) measured over a 
three-year measurement period from 
FY23. This ensures executives are only 
rewarded by shareholder returns which 
must at least match the iTSR of the ASX 
300 Industrials Index for any portion to 
vest (and beat this Index by 10% p.a. for 
all awards to vest). 50% of the award 
is aligned against Earnings Per Share 
Growth (‘EPSG’) a key internal financial 
metric of the Group. iTSR remains the 
primary measure in the LTVR scheme, 
with exceptional iTSR performance 
permitting full vesting of the award 
in certain instances. 

Any shares allocated after vesting 
are subject to an additional disposal 
restriction of two years after the 
measurement period.

Refer to Section 5.1 for more details.

42

Temple & Webster Group Ltd  Variable remuneration is not a ‘bonus’, but a blend of at-risk remuneration (below target) and incentives (above target 
and up to stretch). Metrics selected are intended to be linked to the primary drivers of value creation for stakeholders, 
and successful implementation of the long-term strategy over both the short and long term. Thresholds are intended to 
be a near-miss of expectations, while target is intended to be a challenging but realistically achievable objective with a 
probability of around 50% to 60%. Stretch, on the other hand, is designed to be exceptionally challenging with a probability 
of around 10% to 20%.

3.2 Benchmarking Approach

Executive KMP remuneration has been tested regularly by reference to appropriate independently sourced comparable 
benchmark data by KPMG, and specific advice as may be appropriate from time to time. Two peer groups are used to 
benchmark Executive KMP and senior executives at Temple & Webster. A primary peer group consisting of Consumer 
Discretionary and Information Technology focused companies, with 15 above and 15 below the Company’s market 
capitalisation. A secondary peer group based on market capitalisation (using ASX-listed companies within 50% to 200% 
of Temple & Webster’s 12-month market capitalisation) is also used to provide further background and validation of 
remuneration packages. Benchmarks may be adjusted upwards or downwards for variations in role design compared to 
market benchmark roles, and individual remuneration may vary to reflect individual factors such as experience, qualifications 
and performance.

The Board will continue to monitor market positioning to ensure that appropriate talent can be attracted, retained and 
aligned to the strategic needs of the business. More detail on the TRP is set out in Section 7.1.

3.3 Remuneration governance framework

The Board takes an active role in the governance and oversight of the Group’s remuneration policies and practices. 
Approval of certain key remuneration practices is reserved for the Board, including appointing the CEO, and monitoring 
their performance and other key senior executives. In addition, the Board has final approval of the Group’s remuneration 
framework, including approving remuneration of the CEO and the remuneration policy and succession plans for the CEO. 
However, the Nomination and Remuneration Committee assist the Board in fulfilling its corporate governance and oversight 
responsibilities in terms of the remuneration structures, processes and annual remuneration cycle of the Board and its senior 
executives, including all Executive KMP, as well as Group culture and employee engagement.

The Nomination and Remuneration Committee has a formal Charter which outlines the roles and responsibilities of the 
Committee. This is available on the Group website. The Committee’s responsibilities include:

•  providing advice and recommendations to the Board with respect to the appointment and removal of Directors and 

senior executives;

•  providing the Board with advice and recommendations regarding executive and senior executive remuneration policy;

• 

reviewing and providing recommendations to the Board with respect to the remuneration packages of senior executives 
and executive Directors;

•  providing advice to the Board with respect to Non-Executive Directors’ remuneration;

• 

• 

reviewing and providing recommendations to the Board with respect to incentive schemes; and

reviewing and providing recommendations to the Board on the Group’s remuneration, recruitment, retention and 
termination policies.

The Group has a Securities Dealing Policy which outlines under what circumstances and when trading in the Group’s 
securities by KMP and other nominated employees may be permitted or prohibited. This is available on the Group’s website.

The Group also has a Diversity Policy, which supports the Board and management in making sustainable and appropriate 
decisions around hiring, career development and remuneration. This is available on the Group’s website as well.

3.4 External Remuneration Consultants (‘ERC’)

External Remuneration Consultant Engagement Policy is intended to ensure the independence of any recommendation 
received regarding KMP remuneration and supports the Board’s published statements regarding such recommendations. 
In addition to the requirements outlined in the Corporations Act, it requires the external remuneration consultant notify 
the Board if management contacts the external remuneration consultant on remuneration matters outside of interactions 
approved or supervised by the Board, such as the provision of factual information for benchmarking purposes.

43

Annual Report 2023Remuneration report (audited)
continued

During FY23, the Board engaged external remuneration consultants to provide KMP remuneration recommendations and 
other services as outlined below:

Board assessment 
of independence

Rationale for board 
assessment

Services

Name

KPMG

The consultant 
provided statements 
that they viewed the 
advice they gave as 
being independent 
from undue influence, 
which the Board 
agrees with.

The Board is of the view 
that the recommendations 
received were independent 
and free from undue influence 
of any KMP to whom the 
recommendations related, 
because the ERC complied 
with the Group’s policy for 
engaging ERCs.

Fees (inc. GST)  
$

8,800

Provision of market data and 
recommendations for target 
setting for the proposed CEO 
LTI plan

Other advice, including a review 
of the CEO’s remuneration 
and advice in relation to the 
drafting of the resolutions of the 
Company’s Notice of Meeting 
related to the CEO’s remuneration 

25,300  

4.  FY23 Executive STVR Plan and outcomes

4.1 FY23 STVR Plan

A description of the STVR structure applicable for FY23 is set out below.

Term

Purpose

Detail

To provide at-risk remuneration and incentives that reward executives for performance against 
annual objectives set by the Board at the beginning of the financial year. Objectives selected were 
designed to support long-term value creation for shareholders, and link to the long-term strategy 
on an annual basis.

Measurement Period

The financial year of the Group ending 30 June 2023.

Opportunity

The target value was 25% of Fixed Remuneration, with a maximum stretch target of 43.75% of 
Fixed Remuneration (Individual Targets are capped at 100% of target and Group Targets have a 
200% stretch potential).

Outcome metrics 
and weightings

The STVR was dependent on meeting Group and individual performance objectives. 
For FY23, the metrics were as follows:

Group Targets – weighted at 75% of target opportunity. These Group Targets include:

• 

revenue growth exceeding market growth – 30% weighting;

•  EBITDA margin – 30% weighting;

•  customer satisfaction – 20% weighting; and 

•  employee engagement – 20% weighting.

Individual Targets – weighted at 25% of target opportunity. The CXO and CFO also have four 
Individual targets tailored to their role.
These metrics were selected because they are viewed by the Board as the primary drivers 
of value creation for the business in FY23.

44

Temple & Webster Group Ltd  Term

Detail

Settlement

Awards are determined following auditing of accounts after the end of the financial year.
The Board has discretion to determine whether the STVR award is settled in cash or in equity 
interests such as rights.
The Board elected to settle the FY23 STVR in cash.

Malus and clawback

Should the Board determine that any portion of STVR is deferred, the deferral would be in the 
form of share rights and therefore subject to the malus and clawback clauses under the Group’s 
Rights plan (see further Section 5.1). 

Board discretions

The Board has discretion to modify the awards payable to participants regardless of any 
performance outcome or gate, to ensure that outcomes are appropriate to the circumstances 
that prevailed over the Measurement Period.

Corporate actions

The Board has discretion to determine the treatment of unpaid STVR in the case of major 
corporate actions such as a change in control, delisting, major return of capital or demerger.

4.2 Executive KMP STVR plan – objectives and outcomes

All Executive KMP aside from the CEO participated in the STVR Plan in FY23.

Metric/measure

Performance/comment

Group targets (75% of total opportunity)

Revenue growth exceeding market growth (30% weighting of Group target)

This measure tracks TPW’s growth relative to online sales 
growth1, which is a measurement of growth in market share 
which is a driver of share price growth.

The Group delivered a strong result with revenue of $396 million. 
Although the result was lower than last year’s result, which was 
impacted by strong demand during lockdowns, the Group 
outperformed the online sales growth1 for the year (at target). 

EBITDA margin (30% weighting of Group target)

This measure tracks EBITDA margin relative to the Group’s 
guidance of 3% to 5% EBITDA. 

EBITDA of 3.7% of revenue was within the Group’s stated 
guidance range for the year (slightly below target).

Customer satisfaction (20% weighting of Group target)

Customer experience and satisfaction are critical to the 
success of the Group. This measure tracks customer 
satisfaction using Net Promoter Score (‘NPS’) scoring, 
with last year’s NPS as the benchmark.

The Group set a challenging NPS threshold metric, 
reflecting the high standards required when measuring 
customer satisfaction. The Group achieved NPS score above 
the 60% threshold mark (between the threshold and target)

 Employee engagement (20% weighting of Group target)

The Group’s employees are one of its key assets and 
primary drivers of success. It is vitally important they are 
engaged as measured by Industry Employee Engagement 
Benchmarks.

The FY23 result was above the median score for the 
comparative group. The Group measures itself against other 
technology companies who typically have high employee 
engagement scores. The achieved result demonstrated the 
high level of employee engagement across the employee 
base (between the threshold and target).

1.  As measured by the NAB Online Sales Index (Domestic Homewares and Appliances).

45

Annual Report 2023Remuneration report (audited)
continued

Metric/measure

Performance/comment

Individual targets (25% of total opportunity)

CXO’s personal targets include: 
•  delivery of Group’s FY23 ESG Goals;
•  achievement of quality, compliance and sustainability 

goals as measured via average product ratings;

•  achievement of specific brand targets; and 
•  maintaining high-level customer experience goals. 

CFO’s personal targets include:
•  delivery of FY23 specific EBITDA target;
•  achieve specific capital management target agreed 

• 

with Board; and
further implementation of employee equity awards 
as agreed with Board. 

The CXO achieved a 68% score against his personal 
targets. This was a strong result with key successes being 
delivering on FY23 ESG goals (as explained in FY22 Annual 
report), maintaining high T&W brand rating and improving 
product display pages for key products. 
The CFO achieved a 63% score against his personal targets. 
This indicates the stretch nature of these KPIs given the 
achievements made over the year. Key achievements 
included the delivery of a strong set of financial results, 
certain cost base savings, and the implementation of a 
capital management framework.

The table below sets out the actual STVR outcomes as a percentage of their maximum STVR opportunity for FY23 
and FY22.

Executive KMP1

Adam McWhinney

Mark Tayler

FY23

43.5%

42.6%

FY22

55.6%

61.2%

1.  The CEO did not participate in the STVR Plan in either FY22 or FY23.

The Board views the outcomes of remuneration for FY23 performance as appropriately aligned, given the Group and 
individual performance against annual targets, and progress towards strategic growth objectives made by the executive 
team, despite challenging economic circumstances.

5.  Executive long-term variable remuneration plans and outcomes

5.1 Executive Long-Term Variable Remuneration Plan – Performance rights

A description of the LTVR awards granted in FY23 to Executive KMP, aside from the CEO, under the Temple & Webster 
Group Ltd Rights Plan (‘the Plan’), is set out below.

Term

Detail

Purpose

To provide at-risk remuneration and incentives that reward executives for performance against 
long-term value creation objectives set by the Board at the beginning of the financial year and to 
align the interests of executives with the interests of shareholders.

Measurement 
Period

Opportunity

3 years from 1 July 2022 to 30 June 2025.

The target value is 25% of Fixed Remuneration, with a maximum stretch of 200% of target, or 50% of 
Fixed Remuneration.

Price

The price is nil because it forms part of the remuneration of the participant.

Exercise price

The exercise price is nil. 

46

Temple & Webster Group Ltd  Term

Detail

Allocation 
method

The grant number is determined by dividing the stretch LTVR value by the 30-day volume weighted 
average price (‘VWAP’) following the release of the financial results for FY22.

Performance 
metrics and 
weightings

Performance rights granted in FY23 have two performance hurdles, each with a 50% weighting.

1.  Performance rights with an indexed Total Shareholder Return (‘iTSR’) vesting condition 

(50% weighting). 

The vesting of such performance rights will be determined by comparing the Group’s TSR over the 
Measurement Period with the TSR of the ASX 300 Industrials Total Return Index, according to the 
following vesting scale:

Performance level

Stretch 

Target 

Threshold 

Below threshold

TSR of the Group vs TSR of the 
ASX 300 Industrials Total Return Index

Index TSR + 10% TSR p.a.

Index TSR + 5% TSR p.a.

Index TSR