Mony Group Plc · LSE:MONY
Mony — MoneySupermarket Group — Merger or Acquisition (June 2012)
22 slides from Mony's merger presentation, June 2012
Slide 1: MoneySavingExpert.com Acquisition
MoneySavingExpert.com Acquisition June 2012 Helping every household to make the most of their money
Slide 2: Peter Plumb, Chief Executive Officer
Peter Plumb Chief Executive Officer
Slide 3: Disclaimer
Disclaimer This document does not constitute or form part of, and should not be construed as, an invitation or inducement to invest in the shares or other securities of MoneySupermarket Group plc ("Company") and nothing in this document should be construed as investment advice. This document is not
Slide 4: Agenda
Agenda • Acquisition of MoneySavingExpert.com • Business overview • Acquisition benefits • Financial details of the acquisition • Group current trading • Conditions and timetable 4
Slide 5: Summary
Summary Accelerate strategy of ‘helping every household make the most of their money’ • Acquisition of MoneySavingExpert.com • Leading consumer champion site • For up to £87m • Financially attractive • Earnings enhancing in Y1* • Multiple of 6.9x EBITDA 2011A (Oct)** • Corporation tax relief • Benef
Slide 6: Consumer champion website, est. 2003 by Martin Lewis
Consumer champion website, est. 2003 by Martin Lewis Website, forum and …trusted consumer ...great team and email… champion brand… engaged users Destination content Brand awareness* Expert team 18% • 42 Highly skilled team members • Fully qualified 8% editorial team • Dedicated team of developers *S
Slide 7: Impartial content and guides attract users
Impartial content and guides attract users Revenue sharing arrangements from Price Comparison Websites and providers Independent content attracts users … Money Savings Guides 7
Slide 8: Impartial content and guides attract users
Impartial content and guides attract users Revenue sharing arrangements from Price Comparison Websites and providers Independent content attracts …links take customers to users … product providers… Money Savings Price Comparison Guides Websites 8
Slide 9: Impartial content and guides attract users
Impartial content and guides attract users Revenue sharing arrangements from Price Comparison Websites and providers Independent content attracts …links take customers to ...any fees from paid links users … product providers… are shared Money Savings Price Comparison Product Guides Websites provider
Slide 10: Impartial content and guides attract users
Impartial content and guides attract users Revenue sharing arrangements from Price Comparison Websites and providers Independent content attracts …links take customers to ...any fees from paid links users … product providers… are shared Money Savings Price Comparison Product Guides Websites provider
Slide 11: Complementary brands
Complementary brands Maintaining MoneySavingExpert.com’s journalistic independence is a priority Make it easy 11
Slide 12: Acquisition benefits
Acquisition benefits Worked together for many years MoneySupermarket.com Group • Earnings enhancing in Y1* • Attractive valuation - 6.9x EBITDA 2011A (Oct)** • Corporation tax relief MoneySavingExpert.com MoneySupermarket.com MoneySupermarket.com group brings new skills MoneySavingExpert.com brings
Slide 13: Paul Doughty, Chief Financial Officer
Paul Doughty Chief Financial Officer
Slide 14: Financial Review
Financial Review • Historical Trading Performance and Impact on Group • Summary of Transaction • Accounting and Tax • MoneySupermarket.com and MoneySavingExpert.com Current Trading Summary • Summary 14
Slide 15: Financial Summary
Financial Summary Combined MSM 2011 Restated* MoneySavingExpert.com 2009-2011 £m 2011 £m (£ 000s, year ended 31 October) Revenue 178.5 184.9 15,773 Internet 178.4 184.8 12,642 Intermediary 0.1 0.1 11,361 9,736 Gross Profit 128.4 143.4 8,379 Gross Margin 71.9% 77.6% 6,915 Administrative Costs (49.1)
Slide 16: Principal terms of the Acquisition
Principal terms of the Acquisition • Initial payment £60m • £35m cash • £25m equity • Initial equity subject to a 3 year lock up • Funded from existing cash and 3 year £20m Revolving Credit Facility • Up to £27m deferred consideration payable 3 years from completion • 50/50 cash and equity* • Deferr
Slide 17: Accounting and Tax: Group Accounts (IFRS)
Accounting and Tax Group Accounts (Prepared under IFRS) •Only the upfront element (£60m) included on the balance sheet at the point of acquisition analysed between Tangible Assets (de minimis), Intangible Assets and Goodwill •Intangibles will be amortised over a period likely to be between 3 and 10
Slide 18: Accounting and Tax: Corporation Tax Deduction
Accounting and Tax Corporation Tax Deduction • Individual subsidiaries of MoneySupermarket.com acquiring the trade and assets of the sole trader and company prepare accounts under UK GAAP • Under UK GAAP • Virtually all of the purchase price including the fair value of deferred consideration and dea
Slide 19: Current Trading Update
Current Trading Update MoneySupermarket.com and MoneySavingExpert.com • MoneySupermarket.com trading Q1 IMS – Revenues 14% ahead; EBITDA 12% ahead of Q1 2011 • MoneySupermarket.com current trading – The Group has made a good start to Q2, and continues to trade in line with management expectations –
Slide 20: Completion Conditions and Timetable
Completion Conditions and Timetable • Completion is subject to: – Shareholder approval – Competition authority approval • Backstop date of 9 months from date of completion to obtain necessary approvals – Consideration Shares being admitted • We anticipate: – Shareholder approval 5 July 2012 – Compet
Slide 21: Summary
Summary Accelerate strategy of ‘helping every household make the most of their money’ • Acquisition of MoneySavingExpert.com • Leading consumer champion site • For up to £87m • Financially attractive • Earnings enhancing in Y1* • Multiple of 6.9x EBITDA 2011A (Oct)** • Corporation tax relief • Benef
Slide 22: Questions & Answers
Questions & Answers MoneySupermarket (3) 22
MoneySupermarket Group — Merger or Acquisition (June 2012) on 6ix