Slide 1: 2024 Full year results
5 December 2024 2024 Full year results
Slide 2: Disclaimer
Disclaimer This presentation contains certain statements that are forward-looking statements. They appear in a number of places throughout this presentation and include statements regarding the intentions, beliefs and/or current expectations of Future plc (the “Company”) and its subsidiaries (togeth
Slide 3: Opening remarks
Jon Steinberg, CEO Opening 3 remarks.
Slide 4: Opening remarks
Opening remarks Returned to Excellent Exit rate organic revenue cash conversion gives confidence growth A constant feature on FY25 in FY 2024 of the group Growth Acceleration £69m returned to Clear plan of actions Strategy (GAS) shareholders in FY 2024 driving greenshoots New £55m share buyback, H2 m
Slide 5: Financial review
Sharjeel Suleman, CFO Financial 5 review.
Slide 6: Introduction
Introduction Over 20 years Why Future: First in the Media strong assets and impressions industry financials Strategy is clear, strategy is working 6
Slide 7: Results overview
Results overview. FuTURE
Slide 8: Strategy driving momentum
Strategy driving momentum AOP Adjusted Revenue Adjusted Operating Profit Net Debt Free Cash Flow £788.2 m £222.2 m £256.5 m £222.3 m Flat on a reported basis 28% margin 1.1x leverage 100% conversion £93m debt repayment and +1% yoy organic, (H2 +5%) £69m in shareholders’ (4)ppt yoy margin decline +1pp
Slide 9: Revenue
9 Revenue.
Slide 10: Diversification drives resilience
Diversification drives resilience UK 64% of Group’s revenue +6% UK benefiting from mix FY 2024: £504.0m organic growth Diversified portfolio (FY 2023: £476.6m) in the FY +6 % Adj EBITDA FY 2024: £155.3m Strong growth in Go.Compare (H2: +8%) (FY 2023: £157.0m) US Q4 US ads 36% of Group’s revenue (6)% US
Slide 11: B2C: H2 momentum
B2C: H2 momentum Group sessions +2% Digital ads & Yield flat year-on-year Other media (35% of B2C revenue) US ads (6)% organic decline for the year but +7% in Q4. B2C FY (7)%, H2 (3)% UK ads (18)% organic decline for the year impacted by market +2 % 66% of Group’s revenue FY 2024: £523.1m eCommerce A
Slide 12: Go.Compare: standout performance
Go.Compare: standout performance Very strong performance across categories Progress on diversification with 36% of #2 revenue (+1ppt) from outside Car Go.Compare +28% Non-car categories such as Home, Van, Life 26% of Group’s revenue organic growth and Pet growing at +30% FY 2024: £202.7m in the FY (H
Slide 13: B2B: returning to growth
B2B: returning to growth Return to organic growth despite challenging market backdrop B2B 8% of Group’s revenue +2% organic growth New unified organisation now in place to drive strategy forward Exited FY 2024: £62.4m in the FY (H2: (7)%) loss-making H2 impacted by Tech weakness business Focusing on
Slide 14: Profits & margin
Profits 14 &margin.
Slide 15: Summary P&L
Summary P&L £m FY 2024 FY 2023 YoY Var (%) Revenue 788.2 788.9 flat Cost of sales (225.5) (219.1) +3% Gross Contribution Margin 71% 72% (1)ppt Sales, marketing and editorial (246.1) (221.5) +11% Admin costs & other overheads (77.5) (71.5) +8% Adjusted EBITDA 239.1 276.8 (14)% EBITDA Margin 30% 35% (5
Slide 16: Margin in line with expectation
Margin in line with expectation ● Margin of 28%, in line with guidance for FY 2024 ● Financial characteristic of strong margin remains despite investment and inflation ● Growth Acceleration Strategy investment on track Margin remains strong at 28% 16
Slide 17: Cash
17 Cash.
Slide 18: Balance sheet strength
Balance sheet strength Net Debt Bridge 1.3x leverage 1.1x leverage £149.3m Net Cash Generation ● £67m share buyback and dividend reflect timing of settlement vs the £69m returned to shareholders ● Total facilities at 30 September 2024 of £650m, with headroom of £389.7m, including cash-on-hand 18 ● 10
Slide 19: Capital allocation
Capital 19 allocation.
Slide 20: Effective and rational capital allocation
Effective and rational capital allocation Consistent cash flow conversion of 95%+ (adjusted FCF/AOP) Rigorous assessment to maximise value creation between Organic Strategic Maintain strong Shareholder Investment M&A balance sheet Returns Annual progressive (capex ~2% of revenue) Continuous review an
Slide 21: Outlook
Outlook. FuTURE
Slide 22: Outlook - in line with market expectations
Outlook - in line with market expectations 1 H2 gives Stable AOP % Continued confidence in margin strong cash revenue growth on FY 2024 generation in FY 2025 Acceleration supported by continued execution of strategy 22 1 Company compiled consensus for FY 2025 which includes 10 analysts: Revenue £777.
Slide 23: Strategic update
Jon Steinberg, CEO Strategic 23 update.
Slide 24: Our strategy
Our strategy 3 Objectives 4 Enablers 3 Outcomes REACH VALUABLE AUDIENCES EXPERT & SPECIALIST SUSTAINABLE (ON AND OFF-PLATFORM) CONTENT REVENUE GROWTH DIVERSIFY AND GROW OPERATING MODEL STRONG FCF CONVERSION REVENUE PER USER EFFECTIVE AND RATIONAL OPTIMISE THE PORTFOLIO PROPRIETARY TECHNOLOGY CAPITAL
Slide 25: Reach valuable audience
Reach valuable audience Quality of our audience Audience with Intent Creating opportunities for New looking for Expertise platforms and reinforcing the importance of And are Platform Quality agnostic content 25
Slide 26: FY 2024: What we said we would do
FY 2024: What we said we would do 1 2 3 4 Diversify Drive US Invest in Portfolio revenue & digital content optimisation audience advertising Maintain strong financial characteristics 5 & apply capital allocation 26
Slide 27: FY 2024: What we have done
FY 2024: What we have done TechRadar re-launch 1 ● New brand identity ● New editorial franchises Invest in content ● Mobile-first approach ● Upgrade user experience Hired ~50 net new Over editorial heads Importance of brands to drive different sources of traffic 15 % Increase in total Increased output
Slide 28: FY 2024: What we have done
FY 2024: What we have done Future Creative 2 ● Set up in FY 2024 Diversify ● Unify and scale expertise across content verticals revenue & and geographies audience ● Future Creative team Progression in works from planning to +9 % off-platform audience post sale Vouchers now ● Enables the sale of £13m
Slide 29: FY 2024: What we have done
FY 2024: What we have done Go.Compare 2 Diversify revenue & audience Re-platforming 36 % complete +30% growth in non-car revenue Revenue outside of Focusing on improving car insurance user experience with one time password (+1ppt yoy) 29
Slide 30: FY 2024: What we have done
FY 2024: What we have done One Future in action 3 Leveraging tech clients for women’s audience Drive US Client launching a new line of earbuds aimed at women digital Client’s objectives advertising ■ Reach a fashion/beauty/women’s lifestyle audience ■ Get in front of a network of fashion and beauty
Slide 31: FY 2024: What we have done
FY 2024: What we have done 4 ~ £15 m Portfolio Review of the Revenue closed (LTM) optimisation portfolio to maximise capital allocation Positioning Continuous Closed low to no growth with prevailing the portfolio process revenue on path to market conditions for growth non-profitability and a strong f
Slide 32: FY 2025: What we are focusing on
FY 2025: What we are focusing on 1 2 3 Yield the editorial Diversify Go.Compare Improve monetisation investment revenue Advertising & other media: Apply our editorial and audience Apply the US sales playbook to the UK playbook to drive audience Leveraging the Continue to drive branded content re-pla
Slide 33: Summary
Summary On track to meet GAS momentum FY 2025 expectations Portfolio segmentation & Improved Returned to optimisation organic growth exit rates to simplify the in FY 2024 and on giving us the business and drive track for FY 2025 confidence efficiency through for FY 2025 faster execution and greater fo
Slide 34: Q&A
34 Q&A
Slide 35: Appendix
35 Appendix.
Slide 36: Summary P&L
Summary P&L Difference between AOP £m Adjusted Statutory and OP driven by: ● £66.7m amortisation of acquired FY 2024 FY 2023 Variance FY 2024 FY 2023 Variance intangible assets (FY 2023: £59.4m) Revenue 788.2 788.9 flat 788.2 788.9 flat ● £7.0m Exceptional items (impairment of acquired intangible asse
Slide 37: Three businesses to power growth
Three businesses to power growth B2C (66% of Group’s revenue) FY 2024 B2C Go.Compare B2B GROUP ● 38% margin reflects 49% of the revenue from Magazines Revenue 523.1 202.7 62.4 788.2 ● Decline in ads and affiliates impacting Gross Contribution 383.0 130.6 49.1 562.7 operational leverage Gross Contribut
Slide 38: Diversification drives resilience
Diversification drives resilience % Group’s/geo FY 2024 FY 2023 Reported Organic H1 organic H2 organic Revenue* revenue £m £m growth growth growth growth UK 64% 504.0 476.6 +6% +6% +3% +8% Advertising & other 16% 78.8 86.9 (9)% (9)% (9)% (9)% eCommerce affiliates 47% 237.2 193.9 +22% +22% +20% +25% Ma
Slide 39: Technical guidance
Technical guidance Adjusted Capex Interest P&L ETR £17 m £(24) m ~26 % Stable macroeconomic environment 39
Slide 40: Continued strong cash conversion
Continued strong cash conversion £m FY 2024 FY 2023 Adjusted operating cash inflow 236.2 264.5 Capex (13.9) (11.3) Adjusted free cash flow 222.3 253.2 Interest (26.5) (24.6) Tax (33.7) (33.6) Transaction & integration costs + Exceptional items (12.8) (29.0) Free cash flow 149.3 166.0 Share buyback & sc
Slide 41: Audience landscape
Audience landscape Audience Total 479m revenue FY 2023: 484m £788.2m Media Digital online Magazine Offline users revenue users revenue 3.2m 476m £528.5m FY 2023: 481m FY 2023: 3.6m £259.7m Website users Off-platform users Subscriptions Circulation 226m 250m 1.7m 1.5m FY 2023: 241m FY 2023: 240m FY 20
Slide 42: Website users & sessions
Website users & sessions 500 400 300 200 100 ve-des veine e-em rete ye-uer €Z-AON ec-deg ezine ez-few ezteW ez-uer ZZ-AON z-deg zine zz-hew zz1eW ze-uer 1Z-00N le-des bene 1z-hew 1zaeW iz-uer OZ-AON oz-deg oz-inr oz-Aew ozeW oz-uer 61-A0N 61-des ebine 61-feW ele 6l-uer L-AON el-deg = Sessions (m) @
Slide 43: On & off platform online users
On & off platform online users Online users (m) Sessions Yoy users reported change FY 2023 HY 2024 FY 2024 FY 2024 FY 2023 HY 2024 FY 2024 Tech 74 78 78 116 (27)% +2% +5% Games 30 33 32 64 (22)% +8% +7% Entertainment 17 9 9 13 (48)% (59)% (48)% Women & Luxury 27 17 17 26 (15)% (40)% (37)% Homes 16 1
Slide 44: Group snapshot
Group snapshot 1 26% 36% 33% Geographies Revenue Businesses 67% type 66% 8% 64% UK US Media Magazines B2C B2B Go.Compare 44 1 Revenue
Slide 45: Business snapshot - B2C
Business snapshot - B2C 56 % 25% 16% UK FY 2024 Revenue profile 5% FY 2024: £523.1m 51 % 24% £523.1m 30% Media Affiliates Other Media Digital ads Other Magazines Subscriptions 45
Slide 46: Business snapshot - Go.Compare
Business snapshot - Go.Compare 100 % #2 UK In car 64 % +28 % Car Revenue insurance Growth FY 2024: £202.7m 46
Slide 47: Business snapshot - B2B
Business snapshot - B2B 87 % 7% 7% 28% US FY 2024 Revenue profile FY 2024: £62.4m 93 % 58% £523.1m Media Digital ads Affiliates Other Media Magazines 47 (Newsletters) (Demand Gen & webinars)
Slide 48: Sources & definitions
Sources & definitions Financial notes Online metrics Organic growth is defined as the like for like portfolio, Adjusted diluted earnings per share (EPS) represents adjusted profit after tax divided by the weighted Online users defined as the average monthly total including the impact of closures and new