Yu Group Plc · LSE:YU.
Yu — FY2021 Earnings Presentation
27 slides from Yu's earnings presentation, Mar 22, 2022
Slide 1: Transforming Business Utility Supply: Full Year Results
TRANSFORMING BUSINESS UTILITY SUPPLY Even BIGGER BETTER FASTER STRONGER FULL YEAR RESULTS 22 MARCH 2022 BOBBY KALAR – CEO PAUL RAWSON - CFO
Slide 2: Contents
CONTENTS • Introduction • Business Introduction • Executive Summary • 2021 Performance • Market opportunity and dynamics • Digital by Default strategy • Financial review • Outlook and summary www.yugroupplc.com 2
Slide 3: Introduction
INTRODUCTION BOBBY KALAR CHIEF EXECUTIVE OFFICER B obby is f ounder and major shareholder of Yü Group. He has a Degree in Electrical and Electronic Engineering, previous roles at Marconi PLC and COLT Telecommunications. Owned and managed a chain of care homes which he subsequently sold in 2013. Ente
Slide 4: Business Introduction
BUSINESS INTRODUCTION WE ARE THE LEADING CHALLENGER SUPPLIER OF GAS, ELECTRICITY AND WATER, WITH THE CAPABILITY TO SERVICE EVERY BUSINESS IN THE UK • Leading challenger supplier – not a Broker Our Products • Serving the B2B market (not impacted by the price cap) Business Electricity, Gas and Water •
Slide 5: Executive Summary
EXECUTIVE SUMMARY • Strong profitable growth cementing our position as a leading challenger supplier • Double digit growth in revenue, bookings, contracted revenue, adjusted EBTIDA and profit after tax • Strong processes and robust hedging strategy have allowed us to successfully navigate volatile m
Slide 6: 2021 in Numbers
2021 IN NUMBERS BIGGER £157m 2020: £93m £13.8m 2020: £8.3m £155m 2020: £102m contracted revenue for year average monthly bookings Revenue, up 53% (high growth) ahead 2019: £80m 2019: £4.2m 2019: £112m £1.7m 2020: (£1.7m) £7.0m 2020: £11.7m 28p 2020: (7p) BETTER adjusted EBITDA, Cash earnings per sha
Slide 7: Accelerating Growth & Profit
ACCELERATING GROWTH & PROFIT Excellent forward revenue visibility • Forward contracted revenue for FY22 already at £156.6m (2020 for FY21: £93m) • Average contract term of 30 months Very strong organic growth • Record average monthly bookings of £13.8m for FY21 • Particularly strong Q4, with average
Slide 8: Customer Book Integrations
CUSTOMER BOOK INTEGRATIONS 2020 2021 2022 Midlands based supplier Energy Secured appointment as SoLR for AmpowerUK’s customers in November 2021 £24m The Group set its record average monthly bookings in Q4 2021 as a result of increased market opportunity 1 day Timescale to onboard customers onto the
Slide 9: Energy Market Dynamics
ENERGY MARKET DYNAMICS Record high prices in commodity markets. year on year increase in forward • 249% gas prices1 • Some smaller suppliers do not have the agreements or balance sheet to hedge effectively. £248m Yü Group value of forward gas • B2C price cap creates imperfect hedging and electricity
Slide 10: Market Opportunity
MARKET OPPORTUNITY Huge opportunity for growth in a market of 3.4m business energy meters 3.4m meters Total UK market Competitor Landscape B2B supply market is more complex than the domestic space with fewer suppliers “Big 6” suppliers 2.2m 0.9% Yü Group www.yugroupplc.com 10
Slide 11: Digital by Default
DIGITAL BY DEFAULT Bringing disruptive innovation to the utilities Zero human intervention sector to cover three core areas: Digital prospect acquisition 1. Driving and scaling new digital sales channels and simplifying customer service Digital onboarding 2. Efficient and automated systems to drive
Slide 12: Supporting Our Clients Net Zero Ambitions
SUPPORTING OUR CLIENTS NET ZERO AMBITIONS Proud to support a world going green with a growing number of customers who want to make cleaner, greener business choices. • Launched our certified Pure Green Energy Plan in 2020, and our Carbon Neutral Gas plan in 2021 • Provide solutions for energy effici
Slide 13: Financial Review
GROUP PLC FINANCIAL REVIEW
Slide 14: Financial Overview
FINANCIAL OVERVIEW • Strong revenue growth, up 53% to £155.4m • high organic growth (38% growth); & £’m FY FY FY • integration of AmpowerUK’s customer book (~£15m). 2021 2020 2019 • Clear trajectory in profitability. Adjusted EBITDA up £3.4m Revenue to £1.7m: 155.4 101.5 111.6 • gross margin increas
Slide 15: Increasing Profitability with Scale
INCREASING PROFITABILIY WITH SCALE GROWTH EBITDA CASH Bigger Better Faster Stronger Subscription Revenue Net Customer Leverage Model Cash focus Contribution Overheads We continue strong momentum in financial results, governed via our clear financial framework. In short, the Board is fully driven to
Slide 16: Increasing Profitability with Scale: Growth
INCREASING PROFITABILIY WITH SCALE GROWTH EBITDA CASH Bigger Better Faster Stronger Subscription Revenue Net Customer Leverage Model Cash focus Contribution Overheads • £89.6m revenue delivered in H2 2021 (+36% Revenue evolution Revenue conversion on H1 21) £’m £’m • Increased forward contract book
Slide 17: Increasing Profitability with Scale: EBITDA
INCREASING PROFITABILIY WITH SCALE GROWTH EBITDA CASH Bigger Better Faster Stronger Subscription Revenue Net Customer Leverage Model Cash focus Contribution Overheads • Net Customer Contribution increase: • GM% increased to 9.8% (FY20: 7.6%); • Bad debt charge of 3.1% (prudent basis) for FY21 provid
Slide 18: Balance Sheet & Cashflow
BALANCE SHEET & CASHFLOW 31 Dec 31 Dec 31 Dec 31 Dec Balance Sheet Extracts 2021 2020 Cashflow Statement 2021 2020 £’m £’m £’m £’m Tangible & intangible fixed assets 5.3 2.3 Adjusted EBITDA 1.7 (1.7) Inflow / (Outflow) from… Deferred tax 5.9 4.8 Cash Collateral - 10.2 Trade Receivables (net of prov’
Slide 19: Outlook & Summary
GROUP PLC OUTLOOK & SUMMARY
Slide 20: Outlook and Summary
OUTLOOK AND SUMMARY • Significant confidence in high revenue growth based on increased forward contract book • Despite turbulence in the wider external market, we remain strong and focussed on delivering continued profitable and controlled growth • Well positioned given different regulatory framewor
Slide 21: A Clear Vision: £500m+ Revenue, >4% EBITDA
A CLEAR VISION • Huge market - We are approaching a 1% market £500m + share, and increasing commodity prices, and a consolidated competitive environment, provides enhanced opportunity. revenue targeted by 2025 • Strong organic growth - Demonstrated ability to secure high organic growth rates (>50% i
Slide 22: Appendix
GROUP PLC APPENDIX
Slide 23: Business Overview
BUSINESS OVERVIEW 31,000+ OPERATIONS Forward commodity EMPLOYEES trading ROBUST METERS Hedged Systems & Position Processes No SERVICE hidden costs FIXED PRICE Yütility DIGITAL LEADING TRUST By Default CONTRACTS, Simplicity PILOT SCORE MULTI-UTILITY Easy to deal with May 2013 Aug 2014 Mar 2016 Dec 20
Slide 24: Our Differentiation
OUR DIFFERENTIATION YÜTILITY SIMPLICITY CUSTOMER SERVICE INNOVATION/DIGITAL Unique multi-utility offer Three-ring pick up and easy Partner portal for easy access to deal with plus digital solutions to engage with future customers SUSTAINABLE SOLUTIONS OUR CUSTOMERS FLEXIBILITY Pure green energy supp
Slide 25: Our Strategic Priorities
OUR STRATEGIC PRIORITIES BIGGER BETTER FASTER STRONGER Targeting a huge Efficient customer Committed Consistent growth UK market experience sustainability strategy Maintain and retain Increasing customer Hedging strategy to Cost advantage customers contribution mitigate risk Multiple routes Control
Slide 26: 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 27: Thank Yü
@ GROUP PIC thank yu www.yugroupplc.co.uk