Slide 1: Preliminary Results
Preliminary Results 3 March 2015
Slide 2: Matthew Price, Chief Financial Officer
Matthew Price Chief Financial Officer
Slide 3: Trading strongly & investing in technology
Trading strongly & investing in technology Revenue EBITDA (adjusted) EPS (adjusted) £248M £95M 12.3p 10% 13% 14% Capital Investment Total Dividend Net Cash £16M 8.0p £13M +£8M 10% +£34M 3
Slide 4: Revenue growth converted strongly to profit
Revenue growth converted strongly to profit £millions FY 2014 FY 2013 Growth Revenue 248.1 225.6 +10% Gross margin % 79% 78% Adjusted EBITDA 95.2 84.0 +13% EBITDA margin % 38% 37% Depreciation & Software Amortisation (7.8) (6.2) Adjusted Operating Profit 87.4 77.8 +12% Amortisation of acquired intan
Slide 5: All Group businesses showing good growth
All Group businesses showing good growth Revenues £M FY 2014 FY 2013 Growth MoneySuperMarket.com 219.3 201.4 9% TravelSupermarket.com 22.6 17.7 28% MoneySavingExpert.com 22.8 19.5 17% Intra-group eliminations (16.8) (13.4) Other 0.2 0.3 Total Group 248.1 225.6 10% MoneySavingExpert.com profitable gr
Slide 6: The Group is growing across all product lines
The Group is growing across all product lines Revenues £M FY 2014 £M H1Growth H2 Growth FY Growth Insurance 138.0 4% 13% 8% Money 58.9 6% 22% 13% Home Services 22.4 38% (12%) 3% MoneySuperMarket.com 219.3 7% 11% 9% TravelSupermarket.com 22.6 35% 21% 28% MoneySavingExpert.com 22.8 28% 8% 17% Intra-gr
Slide 7: Group marketing spend driving direct visitors
Group marketing spend driving direct visitors Marketing Spend Revenue By Source £M FY 2014 FY 2013 100% 4 5 17 20 Offline Spend 28.2 25.6 Partners Online Spend 52.8 50.5 Other Marketing 5.5 4.7 Search Engine 79 75 Marketing Total Spend 86.5 80.8 Direct to Site Marketing Margin % 65% 64% 0% Note: Off
Slide 8: Group moved to a net cash position in 2014
Group moved to a net cash position in 2014 £5.3m £2.4m (£1.9m) (£11.3m) (£1.2m) (£11.4m) (£1.5m) £95.2m (£41.4m) £13.1m (£21.1m) Net debt at Adj. EBITDA Disposal of Share option Working Cash paid for Interest Tax Acquisition of Dividends Net cash at 31 Dec 2013 HD charges capital capital items OnTre
Slide 9: Continuing investment in technology
Continuing investment in technology £16.1M Other capital investment TravelSupermarket.com Customer data asset MoneySuperMarket.com platform and journey Full year 9
Slide 10: Dividends, EPS & Dividend Cover
Dividends, EPS & Dividend Cover Dividend (pence) 2014 2013 Interim 2.31 2.16 Final 5.69 5.12 Total Ordinary Dividend Declared 8.00 7.28 + 10% Special Dividend - 12.92 TOTAL 8.00 20.20 Ratios 2014 2013 Earnings Per Share 12.32 10.83 Dividend Cover 1.5 1.5 Dates for Final dividend – 26th March ex-div
Slide 11: Improved KPIs for future
Improved KPIs for future Reflecting focus on customer, data and technology BEST SITE EARN CUSTOMER PREFERRED Be the easiest way LOYALTY PARTNER for customers to Be the destination Be the best way find providers and brand for users for providers to products and customers acquire customers 15.8M (+17%
Slide 12: Outlook for 2015
Outlook for 2015 Cash, capital investment and Tax • The final payment of deferred remuneration for MSE acquisition is due in September 2015. This payment is up to £27M and is based on performance against targets for brand awareness, visitors, clicks and a discretionary element. Up to half the paymen
Slide 13: Peter Plumb, Chief Executive Officer
Peter Plumb Chief Executive Officer
Slide 14: Summary: 2014
Summary: 2014 Helping more people make the most of their money • Business Summary: Good growth across all brands o MoneySuperMarket: +9% driven by Money o TravelSupermarket: +28% driven by Holidays o MoneySavingExpert: +17% driven by Energy and Money • Regulatory environment o FCA / CMA / OFGEM • Gr
Slide 15: Group brands; well known, well trusted and well used
Group brands; well known, well trusted and well used Brand investment of £28M in 2014 • Users 27M • Users 20M • Users 35M • 5.3M Savers • 0.8M Savers • Subscriber database 9.9M 15
Slide 16: 3 Year platform upgrade programme is on track
3 Year platform upgrade programme is on track Aggregator engine and content management system are performing well Technology Customer benefit Content Management ‘Any device’ System Aggregation engine / ‘Intuitive Journeys’ Services Enterprise data warehouse ‘Personalisation’ 16
Slide 17: Core market trends
Core market trends Providers are having to fight to attract new customers Motor Insurance Premium (Mean Price Quoted) Credit Card 0% Balance Transfer Periods Annual Average Insurance Premium (£) Headline BT Period (Months) Months £1,400 40 £1,200 35 30 £1,000 25 £800 20 £600 15 £400 10 £200 5 £0 0 H
Slide 18: Customers who switch keep saving year after year
Customers who switch keep saving year after year Switching pays for customers Jan 2013 Jan Jan2013 2014 Jan Jan2013 2015 Product Product Average Average Product Average Product Average Average Average Policy Policy MSM MSM Saving Saving Average Policy MSM Saving Average Policy MSM Saving Car Insuran
Slide 19: Outlook: 2015
Outlook: 2015 Trading to date • Group: Strong trading vs a weak comparable period Markets • Insurance: Motor premiums showing early inflation • Money: Competitive lending market • Energy: Early deflation • Travel: Growing appetite for holidays Investments • Year 2 of platform programme • Brands: MSM
Slide 20: User Figures: Group brands connect with UK Adults
User Figures 10000000 12000000 14000000 16000000 2000000 4000000 6000000 8000000 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Google Monthly Unique Visitors Feb-14 Mar-
Slide 21: Financial appendix slides
Financial appendix slides 21
Slide 22: Adjusted EBITDA
Adjusted EBITDA £millions FY 2014 FY 2013 Variance Variance % Revenue 248.1 225.6 22.5 10% Gross Profit 195.7 175.4 20.3 12% Gross Margin 79% 78% Administrative Costs (97.8) (100.2) (2.4) (2%) Distribution Costs (34.0) (30.7) (3.3) 11% Operating Profit 63.9 44.5 19.4 44% Operating Profit 63.9 44.5 1
Slide 23: Adjusted cost base
Adjusted cost base £millions FY 2014 FY 2013 Variance Variance % Staff costs 41.9 38.5 3.3 9% Depreciation 3.4 3.6 (0.2) (6)% Amortisation of technology 4.4 2.6 1.8 72% Irrecoverable VAT 7.4 7.7 (0.3) (4)% Other admin 17.2 14.5 2.7 19% Total Adjusted Admin 74.3 67.0 7.3 11% Advertising 28.2 25.6 2.4
Slide 24: Gross margin expanded in the second half of 2014
Gross margin expanded in the second half of 2014 £millions FY H2 H1 FY H2 H1 2014 2014 2014 2013 2013 2013 Revenue 248.1 125.7 122.4 225.6 113.2 112.3 Cost of sales (52.4) (24.4) (28.0) (50.2) (24.6) (25.6) Gross profit 195.7 101.3 94.4 175.4 88.7 86.7 GP % 78.9% 80.6% 77.1% 77.8% 78.3% 77.2% 24
Slide 25: Earnings per share calculation
Earnings per share calculation £millions FY 2014 FY 2013 Statutory Profit Before Tax 66.0 43.1 Amortisation of MSFG intangibles 17.8 23.0 Amortisation of MSE intangibles 1.7 1.7 MSE contingent payable 3.9 8.0 Profit on disposal of associate (3.9) - Corporate finance fees - 0.6 Adjusted ‘Before Tax’
Slide 26: Statutory balance sheet
Statutory balance sheet £millions 31 December 2014 31 December 2013 Intangible assets 166.5 174.3 Other non-current assets 9.4 12.5 Net current assets 9.9 27.0 Long-term liabilities (37.7) (80.0) Net assets 148.1 133.8 • Intangible assets include £55m of goodwill and £33m of other intangibles associ
Slide 27: Effective tax rate stable
Effective tax rate stable £millions FY 2014 FY 2013 Profit for the year 66.0 43.1 Standard rate of tax 21.5% (2013: 23.25%) 14.2 10.0 Effects of: Expenses not deductible for tax purposes 0.3 0.1 Movement on deferred tax assets related to share-based payments - 0.1 Impact on deferred tax of reduction
Slide 28: Group revenue quarterly analysis
Group revenue quarterly analysis £millions FY Q4 Q3 Q2 Q1 2014 248.1 58.9 66.8 61.3 61.1 2013 225.6 56.6 56.6 55.9 56.5 Movement % +10% +4% +18% +10% +8% 28
Slide 29: Acquisitions and disposals
Acquisitions and disposals Purchase of OnTrees and disposal of HD Decisions OnTrees • Purchased trade and assets of OnTrees on 14 March 2014 for £1.5M • Bank account and credit card account aggregation service provider HD Decisions • Disposed of business in May 2014 to third party • Upfront consider
Slide 30: Cash Flow seasonality
Cash Flow seasonality • Strong cash flow generation, particularly in H2 • £30m loan repaid during the year £millions H1 2014 H2 2014 Adjusted EBITDA 43.6 51.5 Movement in borrowings - (30.0) Dividends (28.8) (12.6) Tax (7.4) (4.0) Disposal of HD 5.2 0.1 Acquisition of OnTrees (1.5) - Acquisitions of
Slide 31: Insurance 2014
Insurance 2014 Good revenue growth, accelerated in H2 Revenues +8% against last year • Good H2 revenue growth of 13% – our investment in customer experience, in CRM, and in price, together with some improvement in the switching market. Other revenues £3m (18%) ahead of same period last year led by l
Slide 32: Money 2014
Money 2014 Significant credit revenue growth Revenues +13% against last year • Credit revenues 20% ahead driven by credit card growth £millions H1 2014 H2 2014 FY 2014 FY 2013 Variance Variance % Visitors 21.5 19.3 40.8 41.7 (1.0) (2)% Transactions 11.2 10.4 21.6 20.7 0.9 4% Click revenue (£) 28.2 2
Slide 33: Home Services 2014
Home Services 2014 Strong growth in Energy revenues Revenues +3% against last year • Utility switching volumes increased on both MoneySavingExpert’s Energy Club and on MoneySuperMarket.com where we improved the site and broadened the range of providers • Successful ‘Collective Switch’ by MSE in Q4 m
Slide 34: TravelSupermarket.com 2014
TravelSupermarket.com 2014 Strong growth continues Revenues +28% against last year • Package Holidays, Hotels, Flights and Car Hire growing • Invested in TV support in key sales period around Christmas and again in July • Significant on-going investment in TravelSupermarket.com website £millions H1