Yu Group Plc · LSE:YU.
Yu — H1 2024 Earnings Presentation
35 slides from Yu's earnings presentation, September 2024
Slide 1: 2024 Interim Results & Outlook
CONTINUED PROFITABLE GROWTH PROVIDING MATERIALLY INCREASED SHAREHOLDER RETURNS 2024 INTERIM RESULTS & OUTLOOK SEPTEMBER 2024 BOBBY KALAR – CEO PAUL RAWSON – CFO
Slide 2: Introduction
INTRODUCTION Bobby Kalar Paul Rawson Chief Executive Officer Chief Financial Officer Bobby is founder and major shareholder of Yü Group. A qualified Chartered Accountant with a degree in With a Degree in Electrical and Electronic Engineering Accountancy, Paul joined Yü Group in 2018. He has over and
Slide 3: Executive Summary
EXECUTIVE SUMMARY £945m +70% Strong performance continues in H1 24 with revenues up 60% to £313m, meter points supplied up 82% to 72,300, adjusted EBITDA1 up 49% to £20.4m and EPS2 up 52% to 88p. Yü Energy positioned well, with £46.9m average monthly bookings, delivered through well-defined digital
Slide 4: H1 in Numbers
H1 24 IN NUMBERS BIGGER 72.3k 1.0TWh 58% 50% HIGH GROWTH Meter Points under contract Equiv. Volume of Energy Supplied 1 Growth in next FY Contracted Revenue Increase in Market Share H1 23: 39.7k H1 23: 0.5TWh H1 24: £417m, H1 23: £264m H1 24: 1.8%, H1 23: 1.2% BETTER MORE £313m Revenue £20.4m Adjust
Slide 5: H1 24: Strong Growth & Profit
H1 24: STRONG GROWTH & PROFIT Average Monthly Meter Points Revenue Adjusted EBITDA1 Net Cash Smart Meter New Bookings (‘000) (£m) (£m) (£m) Installations (£m) (meters) £46.9m 72.3k £313m £20.4m £86.8m 9,000 -9% on H1 23 +82% on H1 23 +60% on H1 23 +49% on H1 23 +137% on H1 23 +125% on H1 23 100k 460
Slide 6: Financial Review
GROUP PLC FINANCIAL REVIEW
Slide 7: Financial Overview
FINANCIAL OVERVIEW Strong revenue growth, up 60% to £312.7m. 12 months to • Aggregate contract revenue up 70% to £945m. £’m unless stated H1 24 H1 23 CHANGE DEC 23 Increased adjusted EBITDA and PBT, up 49% and 122% Revenue 312.7 194.9 +60% 460.0 respectively. • Adjusted EBITDA margin of 6.5% reflect
Slide 8: Substantial Revenue & Profit Growth
SUBSTANTIAL REVENUE & PROFIT GROWTH HIGH GROWTH IN YÜ ENERGY SCALING YÜ SMART £’m unless stated H1 24 H1 23 CHANGE Meter Points Supplied 72,300 39,700 +82% 15+ Year £0.4m/yr Additional Benefits Index-linked rental income ILARR from 10k meters Significant additional supply Next FY Forward Contracted
Slide 9: Increased Profit, Cash & Distributions
INCREASED PROFIT,CASH & DISTRIBUTIONS INCREASED EBITDA, PBT AND EPS STRONG CASH & INCREASED SHAREHOLDER RETURNS £’m unless stated H1 24 H1 23 CHANGE • £68.3m operating cash inflow, including £49.8m benefit on new Shell hedging agreement, 97.3% cash collection rate on receivables, and after £6.6m in
Slide 10: Outlook & The Future
GROUP PLC OUTLOOK & THE FUTURE
Slide 11: Summary and Outlook
SUMMARY AND OUTLOOK GROWTH IN YÜ SMART EPS FORECASTED TO STRONG PROGRESSIVE DIVIDEND YÜ ENERGY SCALING INCREASE IN H2 24 BALANCE SHEET CONFIRMED Strong order book Ambition for 25k Continued focus on Significant net cash 19p interim suggests visibility, with £945m installations in FY24 securing appro
Slide 12: Appendix
APPENDIX GROUP PLC 2
Slide 13: Who Are We
WHO ARE WE Serving the B2B market Rapid & Experienced team Robust (no price cap) profitable growth & proven processes hedging policy OUR MISSION IS TO CREATE YÜTILITY SIMPLICITY FOR TIME STARVED B2B CUSTOMERS. www.yugroupplc.com 13
Slide 14: The Right Team at Yü
THE RIGHT TEAM AT YÜ Bobby Kalar Paul Rawson Robin John Glasgow Anthony Perkins Chief Executive Officer Chief Financial Officer Paynter-Bryant Independent Senior independent • Bobby is founder and major • Joined Yü Group on 3 Independent Non-Executive Director Non-Executive director shareholder of Y
Slide 15: Operations
BUSINESS OVERVIEW SERVICE AND OPERATIONS OPERATIONS 459 Average Number of 72.3k Meter points FORWARD commodity trading ROBUST Systems & processes Employees H1 2024 Hedged position SERVICE No hidden costs. YÜTILITY DIGITAL LEADING Trust Pilot score FIXED PRICE contracts, multi-utility SIMPLICITY Easy
Slide 16: Our Values and Habits
OUR VALUES AND HABITS OUR VALUES OUR HABITS CUSTOMERS INTEGRITY TEAMWORK INNOVATION MANAGE LEAD UNLEASH We are passionate We are trusted and We work together Our colleagues are full YOURSELF OTHERS POTENTIAL about our customers accountable seamlessly, across of new ideas, fuelling as they are the co
Slide 17: What We Do & Who We Serve
WHAT WE DO & WHO WE SERVE OUR PRODUCTS OUR CUSTOMER PROPOSITION SMART METER INSTALLATION YÜTILITY SIMPLICITY B2B FOCUSED Simplifying utilities for time- Focus on the B2B sector means strapped businesses with quick we understand the different METER ASSET quoting, multi-fuel options, and needs of busi
Slide 18: Our Differentiation
OUR DIFFERENTIATION GREAT PRICES YÜTILITY SIMPLICITY SAFE PAIR OF HANDS We keep a sharp eye on the market, so that Buying utilities shouldn’t be complicated. By Customers have seen many suppliers fail over customers can be confident that they’re investing in technology, we can deliver quick recent y
Slide 19: Our Customers
OUR CUSTOMERS BOOSTING HOSPITALITY Giggling Squid Restaurants With the aim to bring true Thai mealtime buzz to the UK, Giggling Squid Restaurants is renowned for its authentic Thai cuisine and vibrant dining experience. With multiple locations, managing operational efficiencies – including energy co
Slide 20: Attractive Market Headroom
ATTRACTIVE MARKET HEADROOM Supplier Movement Decline in Big 6 Supplier Share Competitive Landscape 39 B2B suppliers in April 2024*: 100% 13 Large suppliers 90% 8 Small suppliers (less than 1% share) 80% 18 Micro suppliers (less than 5k meters) TotalEnergies Gas Crown Gas Power Power 70% Yü Energy is
Slide 21: Disrupting the Energy Market
DISRUPTING THE ENERGY MARKET WHILST OUR COMPETITORS WRESTLE WITH LEGACY SYSTEMS OUR BRAND - NEW TECHNOLOGY STACK DELIVERS REAL VALUE TO OUR CUSTOMERS From click to Bespoke pricing Always one Reducing costs Real time contract in just without human step ahead of whilst improving analytics 27 seconds i
Slide 22: Yü Energy: Sustainable Growth
YÜ ENERGY: SUSTAINABLE GROWTH Impact of More ‘Normalised’ Market Strategy Meters Aggregate Prices Strategy to become one of the top 10 largest Supplied Contracted Revenue Graph for illustrative purposes only suppliers in the UK seeing results TARGET 100K Revenue Contracts Sustainable, scalable, risk
Slide 23: Yü Smart: Unlocking New Value Streams
YÜ SMART: UNLOCKING NEW VALUE STREAMS CREATING GROWTH OPPORTUNITIES, ANNUITY INCOME, AND FAVOURABLE CUSTOMER OUTCOMES Smart Meter Technicians FY23 STATS Benefits to the Group Greatly increased our engineering headcount Better understanding of customer usage and and reach. payment habits Ambition to
Slide 24: Our Strategic Priorities
OUR STRATEGIC PRIORITIES BIGGER BETTER FASTER STRONGER Subscription Revenue Model Net Customer Contribution Leverage Overheads Cash focus Committed to Digital by Default driving Growing in a huge sustainability strategy, Consistent growth efficient customer market and increasing experience stakehold
Slide 25: Commodity Forecasting and Hedging
COMMODITY FORECASTING AND HEDGING HEDGED POSITION IS CONSTANTLY REVIEWED IN LINE WITH STRICT RISK LIMITS AND FORECASTED VOLUME LONG VOLUME TERM TRADE: DAY AHEAD SHAPING SALE FORECAST SEASON VOLUME TRADES DELIVERY QUARTER FORECAST MONTH REVIEW DEMAND We review our hedged position on an This process e
Slide 26: Transformational Commodity Trading Agreement with Shell
TRANSFORMATIONAL COMMODITY TRADING AGREEMENT WITH SHELL SCALABLE The arrangement means SEEL will support Yü Energy for gas and electricity commodity arrangements both now and as we scale. The facility provided can take the Group to £1 billion revenue and beyond. VALUE ENHANCING THE ARRANGEMENT WITH
Slide 27: Income Statement
INCOME STATEMENT CONSOLIDATED STATEMENT OF PROFIT AND LOSS H1 H1 DEC H1 H1 FY EARNINGS PER SHARE AND OTHER COMPREHENSIVE INCOME 2024 2023 2023 2024 2023 2023 £’m £’m £’m Pence pence pence Revenue 312.7 194.9 460.0 Basic, reported 88 44 185 Cost of sales (269.8) (161.3) (377.0) Adjusted, fully dilute
Slide 28: Balance Sheet & Cashflow
BALANCE SHEET & CASHFLOW H1 H1 FY H1 H1 FY BALANCE SHEET EXTRACTS CASHFLOW STATEMENT EXTRACTS 2024 2023 2023 2024 2023 2023 £’m £’m £’m £’m £’m £’m Tangible intangible fixed assets 12.3 8.2 8.9 Adjusted EBITDA1 20.4 13.7 42.6 Deferred tax 1.3 3.7 2.0 Inflow / (Outflow) from… Trade receivables (net o
Slide 29: Sustainability: Our Commitment to People and Planet
SUSTAINABILITY: OUR COMMITMENT TO PEOPLE AND PLANET PRODUCT PLANET PEOPLE SUSTAINABLE ENERGY SOCIAL AND ENVIRONMENTAL POSITIVE PEOPLE SOLUTIONS IMPROVEMENT CULTURE To support businesses on their journey To reduce our carbon footprint and To continue to develop a dynamic, to net zero, offering a rang
Slide 30: Our Customer Profile
OUR CUSTOMER PROFILE Contracted Revenue by Industry Our focus is increasingly in the SME sector, though 2%2% Food Services includes multi-site corporates. 3% Sole Traders 3% 4% 21% Motor Vehicle Wholesale & Repair Our portfolio is diversified across multiple industry Other 5% segments. Manufacturing
Slide 31: Digital by Default
DIGITAL BY DEFAULT Digital by Default is the way that we think at Yü Energy. Our platform is ahead of the competition and we still have an ambitious programme of change ahead of us. WHAT DOES DIGITAL BY DEFAULT OUR ONLINE QUOTE JOURNEY MEAN? our online customer acquisition journey takes the complexi
Slide 32: Digital by Default Platform
DIGITAL BY DEFAULT PLATFORM SCALABLE PLATFORM EMPOWERING THE COMPANY THROUGH TECHNOLOGY Speed Scalability Improving and simplifying customer experience Cloud based – providing instant BI and MI Fast quoting (27 seconds) Market-leading CRM systems allow for better management of customer data Enhanced
Slide 33: Commodity Market Stabilising
COMMODITY MARKET STABILISING AFTER THE INSTABILITY OF 21 22, MARKETS HAVE LARGELY NORMALISED EVOLUTION OF FORWARD GAS PRICE Winter 2022 Winter 2025 3 Year Weighted Contract Index 835 1600 1400 Oct 2022 735 Roll out of the Evolution of Forward Gas Price p th 635 Energy Bill Relief 1200 Scheme for non
Slide 34: Disclaimer
DISCLAIMER • This presentation is designed to provide information about YU Group PLC and its business and operations. It is intended as general information only and is not to be relied upon for any particular purpose. In particular, no information contained in this presentation constitutes, or shall
Slide 35: Investor Enquiries
Investor Enquiries Broker Enquiries Media IR@YuGroupPlc.com YuGroup@panmureliberum.com YuGroup@Teneo.com www.yugroupplc.com 35