Slide 1: Preliminary Results 4 March 2014
Preliminary Results 4 March Saving 2014 UK Households £1bn
Slide 2: Results Summary
Results Summary Gerald Corbett Chairman
Slide 3: Chairman’s Summary
Chairman’s Summary • Another good year • Revenue +10% to £225.6m • Adjusted EBITDA +26% to £84.0m • Excellent first full year for MoneySavingExpert • Higher dividend • Final dividend +30% to 5.12p • Over £100 million for 2013 • Nearly £300 million returned since IPO • Better liquidity • Simon Nixon’
Slide 4: Finance Update
Finance Update Paul Doughty CFO
Slide 5: Summary financial highlights
Summary financial highlights Strong trading results; special dividend of 12.92p per share, final dividend increased by 30% • Strong trading results • Revenue +10% to £225.6m (+8% excl. MSE) • Adjusted EBITDA +26% to £84.0m (+11% excl. MSE) • Operating margins 37% • MSM margin marginally improved • F
Slide 6: Strong trading results
Strong trading results Group operating margins increased MSM MSM MSE MSE Group Group 2013 2012 Variance 2013*** 2012*** 2013 2012 Variance £m £m % £m £m £m £m % Revenue 219.4 203.0 8% 6.1 1.8 225.6 204.8 10% Gross Profit 156.2 147.9 6% 19.2 3.8 175.4 151.7 16% Gross Margin 71% 73% 78% 74% Administra
Slide 7: Adjusted EBITDA
Adjusted EBITDA Group EBITDA +26%; EBITDA margin 37% £10.5m £84.0m £11.9m £1.1m (£3.9m) (£0.5m) (£0.4m) (£0.1m) (£1.1m) £66.5m MSM Gross Profit MSM Cost Base +£1.0m +£8.0m 2012 Volume Margin Staff costs Third party Offline media Other admin Irrec VAT MSE 2013 resource EBITDA 7
Slide 8: Direct to site share of revenues maintained
Direct to site share of revenues maintained DTS revenues +£28m; Offline media spend flat Revenue by source Revenue by vertical £m 240 6.1 100% 4 5 1.8 9 200 17.7 13.1 22.0 MSE 22 20 12.1 22 17.3 12.2 Travel 160 40.1 39.9 Home Services / Other 120 Money - non Partners credit Money - credit 69 74 75 S
Slide 9: Insurance 2013
Insurance 2013 Growth slowing in H2 • Revenues +6% against last year • Revenue growth slowed from Q2 onwards • H2 broadly flat • Google algorithm changes in June • Other revenues £2.3m (16%) ahead of last year • Data services H1 2013 H2 2013 FY 2013 FY 2012 Variance Insurance Visitors ('m) 18.8 16.4
Slide 10: Money 2013
Money 2013 Structural impact of Funding for Lending scheme continued • Revenues -9% over 2012 • Structural impact of Funding for Lending scheme continued • Non credit revenues 30% decline in 2013 • Improvement into H2 (H1 -42%; H2 -6%) • Credit revenues broadly flat • 6% ahead exc. pay day loans H1
Slide 11: Home Services 2013
Home Services 2013 Strong growth in Energy revenues • Revenues 93% ahead of last year • Utility switching volumes increased by Cheap Energy Club in connection with MSE • Energy price rises in Q4 boosted revenues • Visitors -15% behind last year • Targeted lower visitor volumes from shopping and vouc
Slide 12: Travel 2013
Travel 2013 Trading continues to improve • Revenues +35% on last year • Package Holidays, Hotels and Car Hire growing • Opportunity for further growth in Travel • Investment over the next 12 months H1 2013 H2 2013 FY 2013 FY 2012 Variance Travel Visitors ('m) 29.2 26.7 55.9 44.2 26% Transactions ('m
Slide 13: MoneySuperMarket marketing investment
MoneySuperMarket marketing investment Efficiency maintained FY 2011 FY 2012 FY 2013 £m % £m % £m % Online 50.5 65% 55.1 68% 63.5 71% Offline 27.0 35% 26.0 32% 25.6 29% Total spend 77.5 81.1 89.1 Revenue 177.8 203.0 219.4 Marketing margin % 56% 60% 59% • Marketing efficiency maintained v FY12 • Offli
Slide 14: MoneySavingExpert.com
MoneySavingExpert.com Good FY 2013 Results • MSE continues to trade well • £19.5m total revenues (£6.1m incremental to Group) • £13.3m EBITDA • Trading trends similar to MoneySuperMarket • Money – Funding for Lending • Home Services – Cheap Energy Club • Good progress with operations plan • Infrastr
Slide 15: Cash
Cash Cash generation remains a key strength of the business • Net debt of £21.1m at 31 December 2013 • Circa 105% of adjusted EBITDA converted to cash • Special dividend of £70m paid in July • £70m revolving debt facility; £60m drawn down in the year £2.3m £2.5m £27.3m (£8.3m ) £51.1m £3.6m (£14.5m
Slide 16: Dividends
Dividends Final dividend +30% to 5.12p; special dividend of 12.92p paid in July Dividend – p/share 2013 2012 2011 Interim 2.16 1.8 1.5 Final 5.12 3.94 3.03 Total Normal Dividend 7.28 5.74 4.53 Special Dividend 12.92 - 3.93 TOTAL 20.20 5.74 8.46 • Progressive dividend policy • Interim dividend increa
Slide 17: Summary
Summary • Strong trading results • Revenues +10% • EBITDA +26% • MoneySavingExpert.com has continued to perform well • Cash generation remains strong • Dividends • Final dividend increased by 30% to 5.12p per share • Special dividend of 12.92p paid in July 17
Slide 18: Business Update
Business Update Peter Plumb CEO
Slide 19: Summary
Summary Strong 2013, with proven technology platforms ready for rollout • Business Summary 2013 • Focus on Energy delivered growth • Customer behaviour is changing; our business is evolving • Technology investment delivered business benefits • Money – all channels on Hybris platform • TravelSupermar
Slide 20: Data asset to power growth
Data asset to power growth 21M individuals with 4 year search history… and growing MSM Data Customers Providers 21M Customers 15M Cars 14M Homes 150M Motor/Home Qts 9M Energy Qts 20
Slide 21: Motor Insurance
Motor Insurance Differentiating MSM from the pack Better shop Best prices* Reward loyalty MSM 32% CTM 22% GC 16% Con 14% *Source: IPSOS Mori, % Occasions “brand” absolute Cheapest out of all Sample (FCA preferred definition), Nov13 - Jan 14 = c600 real customers in the market for car insurance 21
Slide 22: The mobile world of MSM
The mobile world of MSM Step change in tech investment Mobile growth App usage Engaging Apps 40% 22% Tablet Smartphone 800,000 downloads 22
Slide 23: MSE is thriving in the group
MSE is thriving in the group More clubs, more services and more engaged users Expand clubs Deals & Forums Mobile 23
Slide 24: TravelSupermarket.com
TravelSupermarket.com Building the foundations for UK growth and International TravelSupermarket New site Great Brand** 67 61 31 24 19 17 16 **YouGov All GB Adults (2028) ‘Which if any of the following travel comparison websites are you aware of ?’ 24
Slide 25: Market trends
Market trends Market trends will improve during 2014 and beyond Savings Rates* Motor Prices Energy Quotes** £1311 £1310 £467 £456 £1262 3% 2.8% £1224 £438 £1164 2.5% £414 £411 £1124 2.0%1.7% 1.7% £393 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2012 2013 2012 2013 * Easy Access b
Slide 26: Group share of visits
Group share of visits MSE as part of the group and although not a PCW is included below 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 21/01/2012 11/02/2012 03/03/2012 24/03/2012 14/04/2012 05/05/2012 26/05/2012 16/06/2012 07/07/2012 28/07/2012 18/08/2012 08/09/2012 29/09/2012 2
Slide 27: Outlook
Outlook Despite an improving economy, it’s still tough for most households • Trading • Group: mid single digit growth • Investments for growth • Increased capital investment • Tech platform rollout • Increased brand spend • MSM and TSM • Board confident • Multiple business initiatives • In line with
Slide 28: Questions & Answers
Questions & Answers == f Money ; Market i 4 Save money), Fee) great.
Slide 29: Appendix
Appendix Additional Financial Materials 29
Slide 30: Adjusted EBITDA
Adjusted EBITDA Reconciliation from revenue and operating profit to adjusted EBITDA FY 2013 FY 2012 Var. Var. £m £m £m % Revenue 225.6 204.8 20.8 10% Gross Profit 175.4 151.7 23.7 16% Margin % 78% 74% Administrative costs (100.2) (89.7) (10.5) 12% Distribution Costs (30.7) (30.5) (0.2) 1% Operating
Slide 31: Adjusted cost base
Adjusted cost base 2013 v 2012, H2 2012 H1 2013 H2 2013 FY 2013 FY 2012 Variance Variance H2 2012 £m £m £m £m £m % £m Adjusted Cost Base (1) Staff Costs 18.4 19.0 37.4 34.8 2.6 8% 18.3 IT Contractors * 1.1 0.0 1.1 0.6 0.5 79% 0.6 Depreciation 1.7 1.9 3.6 3.6 0.1 2% 1.8 Amortisation of Technology 1.1
Slide 32: VAT 2012
VAT 2012 New Partial Exemption Special Method (PESM) • A number of the Group’s services are classified as exempt (for VAT purposes) • Restricts the proportion of input VAT incurred on expenses (e.g marketing) that may be recovered by the Group • Recoverable proportion calculated by reference to a PE
Slide 33: Statutory balance sheet
Statutory balance sheet Dec-13 Jun-13 Dec-12 Intangible assets 174.3 185.2 197.6 Other non-current assets 12.5 11.4 11.7 Net current assets/(liabilities) 27.0 (52.4) 6.4 Long-term liabilities (80.0) (19.7) (16.0) Net assets 133.8 124.5 199.7 • Intangible assets include £55m of goodwill and £50.5m of
Slide 34: Accounting information
Accounting information Tax • Tax charge of £8.4m giving effective rate of 19.5% • Lower than the applicable statutory tax rate for 2013 of 23.25%. • Effective rate impacted by a deferred tax credit arising from the reduction in the enacted tax rate to 20%. • Reduction in applicable statutory rate of
Slide 35: Earnings per share calculation
Earnings per share calculation 2013 2012 £000 £000 Statutory profit before tax 43,075 31,540 Amortisation of MSFG Intangibles 22,996 22,996 Amortisation of FSN Intangibles - 747 Amortisation of MSE Intangibles 1,748 488 Impairment of FSN intangibles - 4,408 Impairment of LDD goodwill - 615 Impairmen
Slide 36: KPIs – by vertical
KPIs – by vertical H1 H2 FY FY H2 2013 2013 2013 2012 Var 2012 Money Visitors ('m) 22.8 18.9 41.7 40.4 3% 18.5 Transactions ('m) 10.5 10.2 20.7 21.4 (3)% 9.2 Revenue (£m) - Click-based 26.5 22.5 49.0 53.8 (9)% 23.5 Revenue (£m) - Total 27.9 24.2 52.1 57.4 (9)% 25.2 RPV £1.23 £1.28 £1.25 £1.42 (12)%
Slide 37: KPIs
KPIs 2013 2012 Variance % H2 2012 2011 Visitors ('m) 157.1 146.2 7% 70.9 130.2 Transactions ('m) 71.2 67.4 6% 30.6 64.8 Click Revenue (£m) 199.0 183.3 9% 91.4 162.2 Other Revenue (£m) 20.4 18.9 8% 9.0 15.5 Total Revenue (£m) 219.4 202.2 9% 100.4 177.7 RPV £1.40 £1.38 1% £1.42 £1.36 RPT £2.79 £2.72 3
Slide 38: Customers keep saving year after year
Customers keep saving year after year Fuelling continued structural growth across our business Jan 2012 Jan Jan2013 2013 Jan Jan2013 2014 Product Average Product Average Product Average Average Policy MSM Saving Average Policy MSM Saving Average Policy MSM Saving Car Insurance £1109 £375* £1058 £399