Slide 1: FY22 Results
FY22 Results Yea & Utili June 2022 (OV ere eve TelecomPlus
Slide 2: FY22 Results: A return to growth
FY22 Results A return to growth Customer growth 10% Customer growth… in H2 alone ● 10% growth, largely achieved in H2 - ie 20% annualised ○ All organic - no participation in SOLR processes ● H2 net growth greater than previous 5 years combined Financial results ● PBT: £61.9m - ahead of consensus ● D
Slide 3: Nick Schoenfeld, CFO
Nick Schoenfeld CFO Ye 2 Utili (OV ere eve TelecomPlus
Slide 4: Profit & loss (£m)
Profit & loss (£m) FY22 FY21 Variance Revenue 967.4 861.2 12% Gross Profit 188.5 173.1 9% Gross margin 19.5% 20.1% Distribution expenses (29.7) (27.8) 7% % of revenue 3.1% 3.2% Administrative expenses (96.0) (88.0) 9% % of revenue 9.9% 10.2% Net interest & other income (0.9) (1.1) Profit before tax
Slide 5: Balance sheet (£m)
Balance sheet (£m) 31 Mar 22 31 Mar 21 YoY Variance Fixed Assets 34.5 43.4 (8.9) Non-current assets 189.0 194.5 (5.5) Net current assets 52.4 45.8 6.6 (Net Debt) (70.3) (71.4) 1.1 Total 205.6 212.4 (6.8) Share capital 4.0 4.0 - Share premium 147.1 145.1 2.0 Other reserves (7.5) (7.0) (0.5) Retained
Slide 6: Cashflow (£m)
Cashflow (£m) FY22 FY21 EBITDA 73.7 66.4 Working capital movement (10.4) (12.5) Taxation (11.5) (10.9) Capex (9.9) (10.0) Interest & fees (3.3) (2.2) Dividends (44.8) (44.7) Other1) 7.3 1.8 (Increase) / decrease in net debt 1.1 (12.0) 1) Includes in FY22 the removal of the lease liabilities for the
Slide 7: Continued upward trend in dividends
Continued upward trend in dividends 7 Stated intention, in the absence of unforeseen circumstances, to pay a dividend in FY23 of no less than 65p
Slide 8: Stuart Burnett, Co-CEO
Stuart Burnett Co-CEO Ye 2 Utili (OV ere eve TelecomPlus
Slide 9: A return to long-term, sustainable double-digit growth
A return to long-term, sustainable double-digit growth The energy market reset The cost of living squeeze The return of a rational, sustainable marketplace Growing demand for UW from customers and partners Our business fundamentals Structural cost advantage from multi-service model 9
Slide 10: The recent energy crisis
The recent energy crisis Only a handful of energy retail suppliers remain 10 Note: some suppliers operate more than one brand
Slide 11: Energy market reset
Energy market reset… The return of a rational, sustainable marketplace Market has now returned to pre-price war sustainability UW’s structural cost advantage ● 7 year price war has ended and only c. 15 retail suppliers remain ● No more irrational pricing or unsustainable business models; remaining s
Slide 12: Cost of living squeeze
Cost of living squeeze Growing demand for UW More people looking to save and earn through UW Customer churn set to remain well below historic levels ● Price cap expected to hit £2,800 in October, with energy prices expected to stay “higher for longer” ● UW offering UK’s best value energy, as well as
Slide 13: Structurally self-reinforcing business model
Structurally self-reinforcing business model Word of Mouth Trusted referrals from UW Partners Sustainable long-term savings Multi-service customers Structural cost advantage Multiple revenue streams per customer with one cost-base Lower bad debt from high quality customers Multi-service billing and
Slide 14: Scaling the business for 1m+ additional customers over the next 4-5 years
Scaling the business for 1m+ additional customers over the next 4-5 years Managing the growth Maximising the growth Investing in our Streamlined Investing in Enhancing Leveraging Growing teams operations brand awareness proposition unique Cashback Insurance as card 4th core service Across all areas
Slide 15: Andrew Lindsay, Co-CEO
Andrew Lindsay Co-CEO Ye 2 Utili (OV ere eve TelecomPlus
Slide 16: Outlook - FY23
Outlook - FY23 Very positive environment for continued growth ● Further ~£800 price increase in Oct price cap review Energy ○ Energy prices will remain highly topical for market the foreseeable future FY23 Guidance dynamics ● Regulatory intervention to ensure supplier sustainability ○ Low market app
Slide 17: Outlook - illustrative 5 year customer growth scenarios
Outlook - illustrative 5 year customer growth scenarios Targeting 1m+ additional customers over the next 4-5 years +60k pa +120k pa +180k pa +240k pa 17 UW customer numbers as at year end (31 March). Purple bars actual, pink bars illustrative possible scenarios which should not be relied upon.
Slide 18: Supporting materials
Supporting materials Ye OF & Utili (OV ere eve TelecomPlus
Slide 19: All your home services in one
All your home services in one 750,000 households taking over 2m services Energy Broadband Mobile Insurance 19
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Slide 21: UW at a glance - significant cash generative growth ahead
UW at a glance - significant cash generative growth ahead As at year end 31/3/2022 Growth FY22 financial highlights ● 10% customer growth in H2 FY22 ● Revenue £967m ● 20% customer growth expected for FY23 ● EBITDA £74m ● Rising cost of living is a near term stimulus for growth ● Adj PBT £62m ● Divid
Slide 22: The UK's only multi-service provider
The UK’s only multi-service provider Energy Telecoms Insurance 22
Slide 23: Vast organic growth opportunity
Vast organic growth opportunity 2.5 % market share Energy Broadband Market size Market size 29m 26.4m households premises Market size Market size 84.2m 8m subscribers homes Mobile Boiler / Home Assistance Cover 23 Souce: Cornwall Analysis (Energy), Enders Analysis (Broadband) (V is Vodafone), Enders
Slide 24: Why customers choose us
Why customers choose us Ye OF & Utili (OV ere eve TelecomPlus
Slide 25: We make your essential home services simpler, easier and better value
We make your essential home services simpler, easier and better value Savings Simplicity Service The more services you take, Keep track of your household spend with Award winning UK-based the more you save one monthly bill customer service 25
Slide 26: Savings
Savings Long-term, fair pricing Energy Broadband Fixed Tariffs Variable Tariffs Price Cap £1,971 26 Pricing as at 13.06.22. Energy: dual fuel supply at the Ofgem standard domestic consumption profile. Broadband comparison of fixed annual cost of our 40/10 Fibre against comparable tariffs from altern
Slide 27: Simplicity
Simplicity One supplier. One bill. 27
Slide 28: Service
Service Award-winning customer support Consistent third party endorsements Low referrals to Energy Ombudsman Uswitch Best Customer Service, Most Likely to Recommend and Best Rewards 28 Energy Services Ombudsman referrals (per 100k supply points) by supplier for the period Q1 2022. Source: Ofgem.
Slide 29: Unique route to market
Unique route to market Ye OF & Utili (OV ere eve TelecomPlus
Slide 30: Word of mouth referrals
Word of mouth referrals Trusted, personal recommendations of our business Our community of 45,000+ Partners ● Self-employed, part-time brand advocates ● Role is simply to refer UW to potential customers ● Provides informal access to less-engaged consumers Targeted acquisition of most desirable custo
Slide 31: Our word of mouth route to market
Our word of mouth route to market… ...is the key to maximising customer lifetime value High multi-service penetration increases customer lifetime Higher-end customer demographic reduces bad debt exposure UW customer churn - single digit % per annum UW customer demographic above UK average UW custome
Slide 32: Our fundamental cost advantage
Our fundamental cost advantage
Slide 33: Our fundamental cost advantage
Our fundamental cost advantage One set of overheads, multiple revenue streams vs 33
Slide 34: Our sustainable, multi-service cost advantage
Our sustainable, multi-service cost advantage One set of overheads, multiple revenue streams SG&A costs as % of revenue 34 Indirect costs defined as SG&A, as per Big 6 Consolidated Segmental Statements for retail supply businesses alone (prepared annually for Ofgem). Other energy supplier / virtual
Slide 35: Key competitive advantages
Key competitive advantages The UK’s only genuine multi-utility provider Multi-service Word of mouth Long term customer proposition route to market supply agreements Technology enabled, fully integrated Our Partners: low cost, high quality, Sustainable relationships multi-service proposition targeted
Slide 36: Supply agreements
Supply agreements Complementary route to market attractive to suppliers Benefits to our suppliers ● Our incremental revenues maximise their infrastructure ROI ● No marketing or customer service costs ● Access to a ‘disengaged’ segment that they Energy can’t reach ● Leveraging our lower operating cos
Slide 37: Sustained long-term organic growth
Sustained long-term organic growth Material uptick in FY22 Customers Services 37 Figures in thousands, excluding TML.
Slide 38: Historical financial performance
Historical financial performance Turnover (£m) Profit before tax (£m) Dividends (p) 38 Turnover - FY12 to FY14 restated. PBT & EPS figures exclude share incentive and amortisation charges. Opus contributions excluded (sold in Feb 2017).
Slide 39: Investment case
Investment case Ye OF & Utili (OV ere eve TelecomPlus
Slide 40: Our core investment case
Our core investment case High-quality earnings, rapid organic growth and progressive dividends UK’s only multi-service supplier Huge growth opportunity ● Unique customer proposition ● Current customer growth rate of 20% pa ○ Energy, Broadband, Mobile, Insurance ● 2.5% share of a £50bn+ market ● Savi
Slide 41: Benefits of a multi-service proposition
Benefits of a multi-service proposition Multi-service customers on our lowest energy tariffs are most valuable Single service 2 services 3 services 4 services Energy Energy Energy Energy Broadband Broadband Broadband Mobile Mobile Insurance Increasing customer lifetimes and financial contribution 41
Slide 42: Get in touch
Get in touch Utility Warehouse 508 Edgware Road London, NW9 5AB Telecomplus.co.uk
Slide 43: Disclaimer
Disclaimer The information contained in this presentation in respect of Telecom Plus PLC (the “Company”) and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection