Pensionbee Group Plc · LSE:PBEE
Pensionbee — Investor Day (September 2024)
46 slides from Pensionbee's investor day presentation, September 2024
Slide 1: Creating a Global Leader in the Consumer Retirement Market
Creating a Global Leader in the Consumer Retirement Market www.pensionbee.com Capital Markets Day 2024
Slide 2: Agenda
Agenda Romi Savova 01 Pages 3-7 Introduction Chief Executive Officer & Founder Romi Savova 02 Pages 8-11 Global Market Opportunity Chief Executive Officer & Founder Jasper Martens Chief Marketing Officer 03 Pages 12-15 Marketing Strategy Matthew Cevik Loft Chief Design Officer 04 Pages 16-18 Product
Slide 3: Creating a Global Leader in the Consumer Retirement Market
1 Creating a Global Leader in the Consumer Retirement Market www.pensionbee.com
Slide 4: Creating a Global Leader in the Consumer Retirement Market: The Opportunity
Creating a Global Leader in the Consumer Retirement Market: The Opportunity PensionBee’s Capital Markets Day is an opportunity to: 1. Introduce and reintroduce investors to PensionBee. 2. Showcase the combination of capabilities and advantages we have built to succeed in the global mass market of co
Slide 5: A Leading, Full-Service Online Retirement Provider
A Leading, Full-Service Online Retirement Provider Combine old accounts Withdraw with ease Top up contributions Manage tax Death beneficiaries, tax rebates, payroll Invest with global giants Learn and engage www.pensionbee.com 5
Slide 6: Delivery of Accelerated Growth, Achieving IPO Goals
Delivery of Accelerated Growth, Achieving IPO Goals Growth of our Invested Customers (‘000) Increases our AUA Base (£bn) £5.2bn Resulting in High Revenue Growth (£m) £5.2bn Assets under Administration June 2024 +40% YoY 3.7x 3.6x 3.8x ARR £32m ★ ★ ★ Annual Run Rate Revenue IPO IPO IPO +39% YoY 252k
Slide 7: Straightforward, Predictable Business Model and Profit Formula
Straightforward, Predictable Business Model and Profit Formula Key Competencies Required for Success Invested Customers Efficient Customer Acquisition Revenue Account Balance Industry Leading Product Personalised Customer Service Revenue Margin Technology Platform Scalable and Resilient Technology P
Slide 8: Global Market Opportunity
2 Global Market Opportunity www.pensionbee.com
Slide 9: >85% of the Global Defined Contribution Market Addressed
>85% of the Global Defined Contribution Market Addressed PensionBee Addresses the World's Largest DC Markets(1) Transferable Accounts are Widespread(3) Total Number of Workplace and Personal Accounts that can be Transferred (millions) UK: £1.4 Average balance: £29k(4) Average balance: $141k(4) trill
Slide 10: Competitive Strengths Enable Leadership in Mass Market
Competitive Strengths Enable Leadership in Mass Market Underserved mass market with the highest proportion of individuals 5★ Service Score: 4.7★ AVG Value: £200k Service Score: 4.6★ Service Score: 4.6★ AVG Value: £80k AVG Value: $128k Service Score: 4.7★ Service Score: 4.5★ Service Score: 4.5★ Avera
Slide 11: Competitive Strengths Create Global Advantage
Competitive Strengths Create Global Advantage Competitive Strength UK Competitive Position US Resonance KPIs UK prompted brand awareness(1) Efficient investment in Likeable brand and strong brand affinity; a Early customer interactions suggest the customer acquisition and brand that cares about its
Slide 12: Marketing Strategy
3 Marketing Strategy www.pensionbee.com
Slide 13: Effective Data-Led Marketing Strategy to Acquire Customers
Effective Data-Led Marketing Strategy to Acquire Customers ● We employ a predictive media mix model, generated from 8 years of performance data and optimised with real time insights. ● Our marketing channels undergo regular optimisation to maximise their efficiency and effectiveness. This optimisati
Slide 14: Tried and Tested Strategic Pillars Lead to Marketing Success
Tried and Tested Strategic Pillars Lead to Marketing Success ● Optimal channel mix: increasing the marketing budget and scaling tested channels with greater capacity to reach the mass market, including the performance marketing channels (paid search, app campaigns), whilst continuing to reduce CPIC(
Slide 15: 2025 Initiatives Will Grow our Customer Base and AUA
2025 Initiatives Will Grow our Customer Base and AUA Global Brand Campaign: Channel Activities Press and Content Campaigns You’re in a Good Place A brand new campaign for both the UK and US markets Continued optimisation of our core performance Continuation of our PR strategy and content strategy to
Slide 16: Product Offering
4 Product Offering www.pensionbee.com
Slide 17: A global, scalable product, with a world-class user experience
A global, scalable product, with a world-class user experience The customer is at the heart of everything we do at PensionBee. This approach has driven the evolution of our products, and the success of our business. www.pensionbee.com 17
Slide 18: Unveiling our product vision and direction
Unveiling our product vision and direction Positioning our product for global reach www.pensionbee.com …and rapid innovation 18
Slide 19: Technology Platform
5 Technology Platform www.pensionbee.com
Slide 20: Scalable Technology Platform Continues to Underpin Sustainable Competitive Advantage
Scalable Technology Platform Continues to Underpin Sustainable Competitive Advantage Decade Long Investment in Customised Technology Data-Driven Analytics Ecosystem Highly proprietary application development on global cloud platforms that serve billions of transactions a Unified data ecosystem serve
Slide 21: Metrics Demonstrate World-class Technology Platform
Metrics Demonstrate World-class Technology Platform Operational Leverage tracked through Key DevOps Research & Assessment metrics (DORA) Performance Indicators Google-created popular evaluation methodology for software delivery performance in Employee efficiency is generated through automation, stra
Slide 22: Our Technology Enables Exceptional Customer Service
Our Technology Enables Exceptional Customer Service Single View of the Customer on Integrated Platform Effective Data Stewardship Unlocks Scalable Personalisation A single view of customer data enables efficient customer service, and integration of all customer service channels increases In-house da
Slide 23: Internal AI Innovation Demonstrating Actionable Insights
Internal AI Innovation Demonstrating Actionable Insights LLM Cluster Analysis of 37,000 Customer Live Chats Automated Sentiment Trend Analysis Colours represent chat topics that are semantically similar. This dashboard is using mock data to illustrate expected outputs from this implementation. Conso
Slide 24: Focus on UK Business
6 Focus on UK Business www.pensionbee.com
Slide 25: Well-positioned in the UK with a Leading Customer Proposition
Well-positioned in the UK with a Leading Customer Proposition Established, Trusted Household Name, Winning Awards and Ranking Highly Customer Engagement Solving Genuine Consumer Problems Across Core Consumer Categories Reflected in App Interaction(4) Serving customers with a unique combination of sm
Slide 26: Growing our UK Invested Customer Base to 1 million
Growing our UK Invested Customer Base to 1 million A combination of initiatives has the potential to yield +External Factors: Regulatory developments can provide additional growth in Invested Customers over the a further boost to growth (e.g. Pensions Dashboard, next 5-10 years, accelerating towards
Slide 27: Growing our UK Customers' Account Values
Growing our UK Customers’ Account Values Rising Consolidation(1) Increasing Contributions(2) Invested Account Values Increasing Average Pots per Invested Customer (x) Average Contribution per Invested Customer to >£25k after 5 Years(3) Product Innovation Engaging Content Tailored Communications Exce
Slide 28: UK Approaching Escape Velocity, Scaling with Profitable Growth
UK Approaching Escape Velocity, Scaling with Profitable Growth Growing the Invested Sustaining High Coupled with An Efficient On Track to Reach Adj.EBITDA(2) Customer Base (‘000) Revenue Growth (£m) Cost Base (£m) Profitability Inflection Point (£m) £32m ARR 1H 24 Expected YE Breakeven 16.6 9.7 8.7
Slide 29: Focus on US Business
7 Focus on US Business www.pensionbee.com
Slide 30: US Expansion Elevates Group Growth and Profitability Potential
US Expansion Elevates Group Growth and Profitability Potential Entry Into the World’s Partnership with One of PensionBee Inc. Service Attractive Unit Economics Largest Defined the World’s Largest Foundations are and Opportunity for Contribution Market with Money Managers and Operational and Early Si
Slide 31: The US DC Market is Deep and Underserved
The US DC Market is Deep and Underserved Total DC Assets are Growing(1) Workplace DC Accounts are Growing IRA Penetration is Low(4) … ($ Trillions) as is the Proportion of Dormancy(3) (Millions of Workplace DC Accounts) 32% of all DC Accounts Dormant Proportion of +332% Households with (DC Assets) T
Slide 32: Consumer Sentiment Supports PensionBee's Proposition
Consumer Sentiment Supports PensionBee’s Proposition Across all Generations Intent to Roll Over is High(1) Those with Less Assets Feel Less Comfortable % of DC plan participants who state they are likely to roll over in the next year Managing Investments(3) % that feel comfortable managing investmen
Slide 33: First Month of Testing Indicates Appetite for an Easy to Use Retirement Solution
First Month of Testing Indicates Appetite for an Easy to Use Retirement Solution Advertising Responsiveness Evident Nationally Performance Channels are Scaling Economically(3) (1) Geographical distribution of Registered Customers Cost per Click from Paid Search 14% 10% 10% 8% 8% 8% 7% 6% 6% 4% 4% 3%
Slide 34: Strong Long-Term Contribution Potential to Group Financial Profile
Strong Long-Term Contribution Potential to Group Financial Profile PensionBee Inc. P&L Long-term Targets Long-term Potential Invested Customers 500,000 AUA c.$25 billion Revenue Account Balance >$50,000 Revenue >$200 million 0.85%bps EBITDA Revenue Margin c.50% (of AUA) Margin Technology Platform an
Slide 35: Financial Considerations and Guidance
8 Financial Considerations and Guidance www.pensionbee.com
Slide 36: PensionBee Has A Track Record of Delivery since IPO
PensionBee Has A Track Record of Delivery since IPO Metric Delivered / On Track Revenue Growth Top Line Growth Gross Revenue Margin & 45% CAGR over Money Manager Fees Q4 20-Q2 24 of ARR Tech Platform & Other Costs Profitability Marketing Costs EBITDAM positive Q4 22 Adj. EBITDA Margin EBITDA positiv
Slide 37: Guidance Confidence Based on Predictable Value Drivers
Guidance Confidence Based on Predictable Value Drivers AUA Split(2) ● Existing Customers: Net retention of >100% across 15% cohorts and time, resulting in a compounding AUA base.(1) ● New Customers: Declining Cost Per Invested Predictable Customer over time accelerates acquisition of new 1 Revenue c
Slide 38: Value Driver: Predictable and Recurring Revenue Base
1 Value Driver: Predictable and Recurring Revenue Base High Retention Rates De-Risk & Compound AUA … … and, Owing to Resilient Revenue Margin, Drive Predictable Revenue (AUA Breakdown into Net Flow Cohorts and Market Impact, £m) (ARR, £m) Revenue N/A N/A 62 64 64 64 63 64 64 Margin (bps) 5,196 .5x >
Slide 39: Value Driver: Scalability Drives Margin Improvement
2 Value Driver: Scalability Drives Margin Improvement Ongoing Scalability Evident in Declining Costs as Proportion of Revenue … … Driving Profitability Margin (Cost Categories Expressed as Multiple of Revenue, x of Revenue) (1) (Adj. EBITDAM Margin(2) and Adj. EBITDA Margin(3), % of Revenue)(1) pt +
Slide 40: 2025 Guidance Framework: PBEE Group Guidance
2025 Guidance Framework: PBEE Group Guidance Short-to-Medium Longer Term Objective 2024 Term (3-5 Yrs) (5-10 Yrs) >£100m Revenue >£30m >£250m by year 5 Adjusted Group EBITDA Adjusted Group Adjusted Group EBITDA Profitability Margin of c.20% EBITDA breakeven Margin of c.50% by year 5 Cash as of Septe
Slide 41: Conclusion and Q&A
Conclusion and Q&A www.pensionbee.com
Slide 42: Creating a Global Leader in the Consumer Retirement Market: Summary
Creating a Global Leader in the Consumer Retirement Market: Summary PensionBee is looking forward to the next decade of growth and opportunity: 1. As a leading retirement provider, we focus on the underserved mass market of consumers. 2. PensionBee is addressing the vast defined contribution pension
Slide 43: Appendix
Appendix www.pensionbee.com
Slide 44: Future Updates
Future Updates ● Q3 2024 Trading Update on Wednesday 23 October 2024 (post-market close) www.pensionbee.com 44
Slide 45: Glossary
Glossary Adjusted EBITDA Adjusted EBITDA is the Operating Profit or Loss Before Taxation, Finance costs, Depreciation, Amortisation, Share-based payments, Listing Costs and Expansion Costs. Adjusted EBITDA Margin Adjusted EBITDA Margin means Adjusted EBITDA as a percentage of Revenue for the relevan
Slide 46: Disclaimer
Disclaimer The information contained in this presentation has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in it.