Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — H1 2021 Earnings Presentation
36 slides from Ten Lifestyle's earnings presentation, May 13, 2021
Slide 1: Interim results for the six months to 28 February 2021
Interim results for the six months to 28 February 2021 May 2021
Slide 2: Our Mission
Our Mission To become the world’s most trusted service Welcome. 2 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 3: Investment Case
Investment Case Huge market Established Growth • opportunity market leader Healthy revenues, • • The best way to access Long-term corporate despite COVID-19, and organise dining, contracts, a global recovering with strong travel, entertainment HNWI member base competitive position and premium shoppi
Slide 4: 2021 Interim Results Highlights
2021 Interim Results Highlights 1 Net Revenue £17.2m 28% lower than pre-COVID-19 (H1 2020: £23.8m) maintained good levels of activity by staying relevant 2 Adjusted EBITDA of £1.7m (H1 2020: £2.1m) improved Adjusted EBITDA margin of 9.8% (H1 2020: 8.7%) Cash of £9.2m (H1 2020: £9.6m) & £1.0m of long
Slide 5: Ten's Growth Engine: Growing Proposition, Profitability and Scale
Ten's Growth Engine: Growing Proposition, Profitability and Scale Welcome. 5 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 6: Welcome
Welcome. 6 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 7: Financial Results
Financial Results Welcome. For the six months to 28 February 2021 More details at tenlifestylegroup.com/investors Amway Center, home to Orlando Magic – one of Ten’s latest entertainment partners 7 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 8: Our Revenue Model
Our Revenue Model Typical Contract Supplier revenue 5.5% High-touch Requests ££ Per High-touch Welcome. Low-touch Requests £ Per Low-touch Revenue Split Total Corporate Client Revenue Corporate revenue Long term contracts often with 94.5% agreed minimums Source: Unaudited Interim Report to end Feb 2
Slide 9: Key Financial Highlights (H1)
Key Financial Highlights (H1) Net Revenue: £17.2m £6.6m (28%) lower than pre-COVID-19 (H1 2020: £23.8m) corporate revenue down 25% (H1 2020: £20.5m) supplier revenue down 66% (H1 2020: £2.5m) Operating expenses: £15.5m (H1 2020: £21.7m) Welcome. Adjusted EBITDA: £1.7m (H1 2020: £2.1m) Adjusted EBITD
Slide 10: Income statement: six months ending February 2021
Income statement: six months ending 28 February 2021 Net Revenue decreased 28% Income Statement Adjusted EBITDA margin improved 9.8% (H1 2020 8.7%) £m H1 2021 H1 2020 YOY change £m £m £m Revenue 17.5 25.6 (8.1) Depreciation decrease of £0.5m largely due to lower Net Revenue 17.2 23.8 (6.6) lease cos
Slide 11: Net Revenue
Net Revenue Net Revenue Analysis H1 2021 vs H1 2020 (£m) £6.6m lower than pre-COVID-19 H1 2020 (-28%) and £3.3m lower than H2 2020 (-16%) 23.8 ( 1.7 ) Supplier revenue reduced due to travel restrictions ( 4.4 ) ( 0.6 ) Corporate revenue reduction of £4.4m YoY due to the 0.1 17.2 continuing impact of
Slide 12: Net Revenue by region
Net Revenue by region Net Revenue By Region £m 2021 2020 % change Lower demand and related supplier revenue in all regions £m £m EMEA 8.7 11.9 -27% EMEA Americas 5.0 7.7 -35% Net Revenue of £8.7m; down £3.2m (-27%) APAC 3.5 4.2 -17% Base business and supplier revenue reductions 17.2 23.8 -28% Large
Slide 13: Adjusted EBITDA by region
Adjusted EBITDA by region EMEA Adjusted EBITDA Adjusted EBITDA of £3.0m decreased by £0.9m vs. prior year Adjusted EBITDA margin improved from 33% to 34% £m 2021 2020 Americas £m £m Adjusted EBITDA loss increased by £0.2m to £1.7m in the period EMEA 3.0 3.9 Managed costs but also maintained key reso
Slide 14: Continuing technology investment
Continuing technology investment Cash Spend on Technology Platform, Communications and Infrastructure Invested £5.5m into proprietary digital (£m per HY FY) platforms, communications and technologies period; £40.4m since IPO IPO 12.2 12.2 Continued investment in our technology 1st Ten platform, IT,
Slide 15: Cashflow
Cashflow Cashflow £m H1 2021 H1 2020 Operating cash inflow of £2.4m driven by improved £m £m working capital of £0.9m and non-cash items of £4.9m Loss before tax (3.6) (3.3) Net finance expense 0.2 0.2 Cash outflow of £(0.4)m primarily driven by investment Working capital changes 0.9 1.8 in our tech
Slide 16: Operational update
Operational update Welcome. Phil Howard, chef, co-owner of Elystan Street and host for one of Ten’s virtual dinner parties organised for members. 16 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 17: Operational Highlights
Operational Highlights Key contract renewals, expansion and new wins Healthy pipeline of potential new contracts in all regions Continued investment in proprietary digital platforms, communications and technologies, £5.5m (H1 2020: £6.3m) Operating efficiency largely due to digital transformation Di
Slide 18: Ten's Growth Engine: Growing Proposition, Profitability and Scale
Ten's Growth Engine: Growing Proposition, Profitability and Scale Watch the Growth Engine video at www.tenlifestylegroup.com/investors/ Welcome. 18 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 19: Ten's Growth Engine: Growing Proposition, Profitability and Scale
Ten's Growth Engine: Growing Proposition, Profitability and Scale Welcome. 19 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 20: Build a more valued service
• Build a more valued service Build a more valued service Net Promotor Score (NPS) Record NPS Welcome. 2017 2018 2019 H1 2020 H2 2020 H1 2021 20 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 21: Increase member engagement
• Increase member engagement Increase member engagement Increased regular engagement activities with the backing of corporate clients Engagement emails sent Targeted newsletters, event invites, offers, articles and guides Engagement emails sent increased Maintained high open rate Increased click-to-
Slide 22: Deliver ROI to corporate clients
• Deliver ROI to corporate clients • More investment from clients Corporate client Return on Investment (ROI) Investment in our B2B marketing New platform for tenlifestylegroup.com A growing collection of thought leadership and case studies Build and optimisation of content marketing / lead generati
Slide 23: Deliver ROI to corporate clients: contract renewals
• Deliver ROI to corporate clients • More investment from clients Corporate client Return on Investment (ROI) Of our 23 Medium, Large and Extra Large contracts, we COVID-19 limited some prospects from signing new contracts renewed: Secured some new mandates from new and existing clients: one Extra L
Slide 24: Our Corporate Clients
• Deliver ROI to corporate clients • More investment from clients Our Corporate Clients Visa RBS HSBC DNB (Norway) Maserati RBC OCBC American City National SEB Coutts CIBC SMTC Express Bank Mastercard Barclays NatWest SMBC Welcome . ABSA Bank of China Merrill Hyundai Diners Club Tokyo Tokia Maserati
Slide 25: Reinvestment - technology: Launches of the Ten Platform
• Reinvestment in tech, content and supplier partnerships Reinvestment - technology Launches of the Ten Platform Launched an Amex Centurion platform (Switzerland) Launched Ten Platform and our digital travel & lifestyle services into two markets in the Nordics Launched a new digital-only version of
Slide 26: Improved member on-boarding and increased personalisation
• Reinvestment in tech, content and supplier relationship Reinvestment - technology Improved member on-boarding and increased personalisation Welcome. New onboarding journey Personalisation, helping us Preferences 2.0: e.g. Pre-travel automation - and welcome series increases understand preferences
Slide 27: Increased automation, service quality and efficiencies
• Reinvestment in tech, content and supplier relationship Reinvestment - technology Increased automation, service quality and efficiencies Automation of service: increase automated processes Chat bot: upgraded existing live chat & launched chatbot FAQ capabilities Bullseye call routing: reducing tra
Slide 28: Reinvestment – content
• Reinvestment in tech, content and supplier relationship Reinvestment – content Increased production and range of content 22 Digital magazines Over 200 travel and lifestyle guides Staycation guides Over 3,000 articles Welcome. Members reading platform articles, guides and magazines are more likely
Slide 29: Improvements in speed, efficiency and margin
• Improvement in speed and efficiency and margin Improvements in speed, efficiency and margin Digital transformation Automation of request servicing Fully-automated requests increased to one fifth of all requests 100% Three quarters of requests now fully or partially automated compared with half of
Slide 30: Stronger member proposition
• Stronger member proposition Stronger member proposition Improvements to core categories and new services, with high NPS Dining, core Expansion of Dining Club Updates to the Dining Collection Dining, new DINE, COOK and WINE e-zines Virtual dining masterclasses with top chefs Restaurant quality meal
Slide 31: Stronger member proposition
• Stronger member proposition Stronger member proposition Improvements to core categories and new services with high NPS Offers & Benefits, core Increased offers with premium retail brands on the Ten Platform to over 720 (2020 c.450) Special days gift guides Offers & Benefits, new HOME, TREND, REVIV
Slide 32: An improving team
An improving team We continue to invest in our people Successfully transitioned to home working Developed home grown talent through our Global Leadership Programme & Ten Academy Attracted talent from direct and indirect competitors and Welcome. retained all SLT members since January 2019 Diversity,
Slide 33: Outlook
Outlook Welcome. Dubai Members now enjoy complimentary Gold Status for a year on Emirates when booking First or Business class flights with Ten 33 © Copyright Ten Lifestyle Group 2021. All rights reserved.
Slide 34: Clearly Identified Pathways To Revenue Growth
Clearly Identified Pathways To Revenue Growth Additional Geographies, Verticals and Clients Welcome. New Clients: New Clients: New Clients: Signed Contracts Contracts In Negotiation Pipeline Current Clients: Increased Current Clients: Increased Current Clients: New Users Usage Contracts Current Clie
Slide 35: Outlook
Outlook Request volumes and the resulting Net Revenue since the end of the half year remain below prior year due to the effects of COVID- 19 on Ten’s core propositions in the dining, travel and live entertainment categories. Monthly levels of inbound requests, a lead indicator of improving demand, h
Slide 36: Welcome .
Welcome. For more insights, please • register for updates at tenlifestylegroup.com/investors • follow Ten Lifestyle Group on LinkedIn and watch our B2B videos at www.linkedin.com/company/tenlifestylegroup/ © Copyright Ten Lifestyle Group 2021. All rights reserved.