Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2008 Earnings Presentation
35 slides from Mony's earnings presentation, Feb 25, 2009
Slide 1: Moneysupermarket.com Group PLC 2008 Preliminary Results
STRICTLY PRIVATE & CONFIDENTIAL Moneysupermarket.com Group PLC 2008 Preliminary Results Presentation 25 February 2009
Slide 2: Agenda
Agenda Introduction: Gerald Corbett Financial Review: Paul Doughty Business Review: Peter Plumb Questions and Answers: moneysupermarket.com 2
Slide 3: Paul Doughty – Financial Review
STRICTLY PRIVATE & CONFIDENTIAL Paul Doughty Chief Financial Officer Financial Review
Slide 4: Adjusted Income Statement
Adjusted Income Statement H1 08 H2 08 FY 08 FY 07 FY Variance £m £m £m £m Revenue 99.4 79.4 178.8 162.9 10% Internet 95.3 77.2 172.5 152.2 13% Intermediary 4.1 2.2 6.3 10.7 (41%) Gross Profit 66.6 50.1 116.7 108.6 7% Gross Margin 67% 63% 65% 67% Adjusted Administrative Costs (26.2) (24.1) (50.3)
Slide 5: Diversification Continues…
Diversification Continues… 2007 Internet Revenue 2008 Internet Revenue 34% Home Services / Other, £4.6m Home Services / Travel, 34% Other, £7.4m £15.0m 3% Travel, 10% 4% £19.1m Money, 11% £68.3m Money, 51% 36% £76.0m 40% Insurance, £56.4m 45% Insurance, £77.7m Source: Company data and audited accoun
Slide 6: …and Direct To Site Revenue Maintained
…and Direct To Site Revenue Maintained 2007 Revenue Share 2008 Revenue Share Partners Partners 14% 10% SEM Direct (incl. Direct (incl. SEM 28% SEO) SEO) 31% 58% 59% Source: Company data Direct to site revenue continues to be the largest part of the revenue mix 6
Slide 7: Adjusted Cost Base
Adjusted Cost Base ` H1 2008 H2 2008 FY 2008 FY 2007 £m £m £m % of Revenue £m % of Revenue (1) Adjusted Cost Base Revenue 99.4 79.4 178.8 162.9 Staff Costs (ex. Making Money ) 14.8 12.3 27.1 15% 22.8 14% Making Money 1.6 1.7 3.3 2% - n/a Depreciation 1.5 2.0 3.5 2% 1.6 1% Irrecoverable VAT 4.6 3.8 8
Slide 8: Statutory Balance Sheet
Statutory Balance Sheet Dec 2008 Dec 2007 £m £m Intangible assets 223.7 318.9 Other non-current assets 14.0 15.7 Net current assets / (liabilities) 67.4 46.6 Long term liabilities (47.3) (54.2) Net assets 257.8 327.0 Capital and reserves 257.8 327.0 Intangible assets include £55m of goodwill, and
Slide 9: Accounting Information
Accounting Information Impairment of Goodwill Carrying value of Goodwill/Intangibles to be assessed annually – £294m (£125m of Goodwill) on balance sheet as at 31 Dec 2008 before impairment Impairment of £70m identified – To be charged • Initially against Goodwill with any remaining balance agai
Slide 10: Peter Plumb – Business Review
STRICTLY PRIVATE & CONFIDENTIAL Peter Plumb Chief Executive Officer Business Review
Slide 11: 2008 Year Highlights
2008 Year Highlights moneysupermarket.com and travelsupermarket.com continued to attract ever growing numbers of visitors Visitors(a) increased by 32% to 120.1 million Transactions increased by 23% to 71.4 million Diversity of the business delivered growth despite challenging markets Revenue i
Slide 12: Our brands retained their leadership positions in an ever more competitive market
Our brands retained their leadership positions in an ever more competitive market moneysupermarket.com travelsupermarket.com 12
Slide 13: Site innovation, delivered greater personalised search functionality
Site innovation, delivered greater personalised search functionality 13
Slide 14: Full Year Highlights: Insurance 38% revenue growth
Full Year Highlights: Insurance 38% revenue growth Revenue grew by 38% to £77.7m, representing 45% of Internet revenue Visitors increased 20% to 24.8m Higher RPT through stronger commercial terms Significant product enhancements delivered in 2008: – Policy Wizard – better customer experience
Slide 15: Full Year Highlights: Money -10% revenue despite tough environment
Full Year Highlights: Money -10% revenue despite tough environment Revenue fell by 10% to £68.3m Visitors grew 27% to 35.1m – Demonstrates value to consumers in uncertain economic climate Decline in RPT driven by significantly reduced loans business Significant product enhancements delivered
Slide 16: Full Year Highlights: Home Services 64% growth
Full Year Highlights Home Services 64% growth Revenue increased by 64% to £7.4m – Utilities revenue grew by 77% Visitors increased by 96% to 11.2m – shopping channel launched in H2 RPT broadly consistent with prior year Significant product enhancements delivered in 2008: – Launched our own s
Slide 17: Full Year Highlights: Travel 27% growth and increased contribution
Full Year Highlights: Travel 27% growth and increased contribution Revenue grew by 27% to £19.1m – Driven by car hire and package holidays Visitors grew by 32% to 48.9m RPT broadly consistent with prior year Significant product enhancements delivered in 2008: – H2: difficult trading – fuel p
Slide 18: Built and launched a new innovative personal loan service in Germany
Built and launched a new innovative personal loan service in Germany Germany is an attractive market – 82 million population – 37 million online every week Personal Loans in Germany – €70B in 2008 – 13% research and apply online 18
Slide 19: 2009 priorities - moneysupermarket.com: a great business that has grown rapidly
2009 priorities - moneysupermarket.com: a great business that has grown rapidly Situation analysis Great brands, strong prompted awareness and market leading reputation Renowned for delivering high volumes of customers to our partners Broad diverse portfolio of products, providing customers wi
Slide 20: 2009 priorities – the impact of the recession
2009 priorities – the impact of the recession But . . . . . The recession is seriously impacting our business The first priority is to reconfigure to cope with lower levels of provider spend This is the time to get our business in to the right shape We must have a strong business ready for w
Slide 21: Our marketing investment must work harder, and realign to a changing market
Our marketing investment must work harder, and realign to a changing market Looking ahead, the market is changing Mass customer acquisition vs. niche/boutique targeting Tactical campaigns 1:1 marketing vs. broadcast Marketing spend has built awareness and driven moneysupermarket.com to market
Slide 22: This year, we will run ourselves more efficiently as revenues fall
This year, we will run ourselves more efficiently as revenues fall Organisation aligned to the changing economic environment New management team Right structure and right people Systems need to be re-engineered Personalised smart searches – ever more demanding Dynamic content to personalise
Slide 23: Our biggest opportunity is building a closer long-term relationship with the individuals we know
Our biggest opportunity is building a closer long-term relationship with the individuals we know A snapshot of our business in 2008 120m Visitors (*) 8.6m Visitors 5.2m Visitors (†) Searching Motor 8.2m Searching New Insurance Contacts (*‡) Savings Accounts Avg Saving £155 (#) 6.7m Individual Custom
Slide 24: Outlook and Current Trading
Outlook and Current Trading Overall – Market leading price comparison website, saving customers time and money – Visitor numbers continue to increase – Revenues circa 30% down on comparator period – Currently trading slightly behind H2 run rate profitability Money – Trading in line with expectat
Slide 25: 2009 agenda and outlook
2009 agenda and outlook Selectively invest in strategic growth Explore and test new verticals Support Germany Look after our base business Innovate our site design to give better customer journeys Get to know our customers better Use our data and insight to drive decision making Invest i
Slide 26: Questions and Answers
STRICTLY PRIVATE & CONFIDENTIAL Questions and Answers
Slide 27: Appendix
STRICTLY PRIVATE & CONFIDENTIAL Appendix
Slide 28: Adjusted Income Statement
Adjusted Income Statement MSFG acquired by Moneysupermarket.com Group (“MSM”) on 22 June 2007 Adjusted results prepared showing what the financial results would have been had MSM acquired MSFG on 1 January 2006 on a debt free basis Adjusted EBITDA adds back: – Elements of Directors‟ and Senior
Slide 29: Adjusted EBITDA
Adjusted EBITDA H1 H1 H2 H2 FY FY 2008 2007 Var. Var.% 2008 2007 Var. Var.% 2008 2007 Var. Var.% Revenues Internet 95.3 73.6 21.7 29% 77.2 78.6 (1.4) (2)% 172.5 152.2 20.3 13% Intermediary 4.1 4.9 (0.8) (16)% 2.2 5.8 (3.6) (62)% 6.3 10.7 (4.4) (41)% Total 99.4 78.5 20.9 63% 79.4 84.4 (5.0) (6)% 178.
Slide 30: Accounting Information
Accounting Information Impairment of Goodwill £207m of Intangible Assets identified, and £125m of Goodwill recognised, upon acquisition of MSFG. – Implicit valuation of £400m at acquisition – Book value of Intangible Assets £169m and Goodwill £125m before impairment at 31 Dec 2008 . FRRP have wr
Slide 31: Accounting Information (Cont’d)
Accounting Information (Cont’d) Share Option Charges Pre-IPO 13.6m unapproved options issued 2007 to vest 2008 – 2010 with exercise price of 6p 1.2m SIP/Chairman awards issued 2007 to vest 2010 with an exercise price of nil pence 0.5m options under Simon Nixon scheme issued and vested during 2
Slide 32: Accounting Information (cont’d)
Accounting Information (cont’d) Simon Nixon Scheme from Prospectus Simon Nixon to make available up to 0.8% of issued share capital to senior management with scheme to be „cash settled‟ by Simon Nixon – No share based payment charge anticipated at IPO in accordance with IFRS2 IFRIC 11 issued in
Slide 33: Accounting Information (cont’d)
Accounting Information (cont’d) Tax Effective rate of -15.9% on 2008 statutory profit – Lower than statutory tax rate of 28% due to: • £70m Goodwill impairment charge included in statutory loss, but added back for tax • £25.2m intangible amortisation charge added back for tax • Revaluation of defe
Slide 34: KPIs – Verticals
KPIs – Verticals H1 H2 FY H1 H2 FY 2008 2008 2008 2007 2007 2007 Money Visitors ('m) 17.7 17.4 35.1 14.0 13.7 27.7 Transactions ('m) 7.9 7.1 15.0 6.1 6.5 12.6 Revenue (£m) - Click-based 33.4 24.0 57.4 28.9 31.9 60.8 Revenue (£m) - Total 40.3 28.0 68.3 37.2 39.7 76.0 RPV £2.28 £1.60 £1.94 £2.67 £2.90
Slide 35: KPIs - Internet
KPIs - Internet 2008 2007 Growth Group Visitors ('m) 120.1 91.0 32% Transactions ('m) 71.4 58.2 23% Click Revenue (£m) 148.1 124.9 19% Other Revenue (£m) 24.4 27.1 (10%) Total Revenue (£m) 172.5 152.0 13% RPV £1.44 £1.67 (14%) RPT £2.07 £2.15 (3%) 35
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