Personal Group Holdings Plc · LSE:PGH
Personal — H1 2024 Earnings Presentation
29 slides from Personal's earnings presentation, September 2024
Slide 1: Personal Group Holdings Plc Interim Results September 2024
Slide 2: Introductions and Agenda
| Introductions Agenda Introduction to Personal Group Financial Review Strategy and Outlook Questions Paula Constant Sarah Mace CEO CFO Personal RS Group
Slide 3: Introduction to Personal Group
INTRODUCTION TO PERSONAL GROUP , Paula Constant | Group Chief Executive a a | |
Slide 4: Who are we
| Who are we We provide affordable insurance and employee benefits to c. 1.25m employees, helping employers attract and retain their workforce. Unique insurance offering delivered via face-to-face sales model with c.50% conversion. Double digit growth in highly recurring revenues, contributing 81% o
Slide 5: Hospital Cash Plans, Recovery Plans, Death Benefit Plans
Hospital Cash Plans Reward Consultancy Customisable/White Labelled Recovery Plans Digital Pay Benchmarking and Employee Benefits Platforms Death Benefit Plans Job Evaluation Products
Slide 6: Why our customers love us
| Why our customers love us Unique Offering Chosen by major brands $52 * Only employee benefit = UNIVERSITY © COVER provider delivering key amey BRITISH AIRWAYS Cinco) 3 t York. Cisrovth cane WSB AWARDS 2024 . i WINNER insurance products to blue collar workers ie ry ; i Gyegy a ¢ Leading tech with h
Slide 7: Targeting large and growing markets
Targeting large and growing markets Insurance * 10m UK Employees with no/ partial sick pay * 70% SMEs want to invest more in insurance * 90% enterprises prefer f2f engagement * 12% penetration of existing base - more opportunity Benefits and Reward * £33bn global market, growing at 4.5% CAGR to 2030
Slide 8: Example Key Insurance Client penetration
• Example Key Insurance Client 20% • • 18% 16% 14% • Penetration % £ Revenue 12% 10% • 8% 6% • 4% 2% • 0% 2014 2015 2016 2017 2018 2019 2020 ** 2021 2022 2023 New Business In Year Revenue Penetration % ** Client able to re-engage with new contract; sales to employees recommenced
Slide 9: ARR - £m
ARR - £m • 8 • 7 • 6 • 5 4 • 3 2 • 1 • 0 2021 2022 2023 Benefits Platform SEB Innecto Digital
Slide 10: • • • 2.0 • • 21% • c.15% • • c.12% • 25%
• • • 2.0 • • 21% • c.15% • • c.12% • 25% • 80% • • •
Slide 11: Financial Review
iF! Personal RS Group 7 FINANCIAL REVIEW Sarah Mace
Slide 12: Total Revenue – Continuing
Jun 24 Jun 23 (restated) Change £m £m • • Total Revenue – Continuing** 21.0 18.4 +14% Adj EBITDA* - continuing** 3.9 3.0 +31% • • •
Slide 13: Benefits Platform and Pay & Reward
Benefits Platform Pay & Reward
Slide 14: Total Revenue – Continuing by division
£33.8m +14% £7.0m +15% Total Revenue – 21.0 18.4 +14% £40.8m +14% Continuing Total Adj EBITDA – 3.9 3.0 +31% continuing
Slide 15: Insurance
| Insurance Continued growth of the insurance book * Record new insurance sales of £6.9mannual premium with majority from F2F activity (2023 H1: £5.7m) * Retention of existing policyholders remained strong- year-on-year retention rate of 81.7% (2023 H1: 82.5%) un 24 In 23 Change . . £m % * Annualise
Slide 16: External Revenue
• External Revenue 3.8 3.1 +21% • • • • •
Slide 17: Capital allocation
| Capital allocation Capex investment Further product dev / enhancements hires to Senior /building rance sales team Regulatory Capital urance board working capital ressive dividends Interim dividend of 5p 1% increase on ious year Strong balance sheet With cash and deposits of £23.1m and debt free M&
Slide 18: Strategy & Outlook
STRATEGY & OUTLOOK Paula Constant | Group Chief Executive yr -
Slide 19: Key growth opportunities
| Key growth opportunities Employee paid insurances: * Expand segments & products in * Earnings accretive * Improve penetration SME * Recurring revenue * Broaden portfolio . Ioan ait E mercer PenunsiB tie * Vertical integration of benefits * Simplify digital offering for SME + MonetiseeCommerce * Ad
Slide 20: Where we want to get to
| Where we want to get to * Access to 300K new + 2x+client base * Revenues >£100m employees + 10 additional * EBITDAto £30m ¢ Premium income > £70m partnerships * SaaSARR * 10% of EBITDA from new * 8000 leads per annum (Hapi and Reward digital) insurance products and across partners >£20m channels P
Slide 21: £100m Revenue: M&A could help accelerate growth
1 4 £100m 3 Revenue 2 2 M&A could help accelerate growth 1 3 • Strategic bolt-on Current acquisitions to provide Revenue We can deliver £100m additional products or expertise 4 revenues through organic growth • Earnings enhancing with recurring revenue • In excess of £10m headroom available to fund
Slide 22: Summary of highlights and outlook
Double digit growth across all Highly cash generative Large, growing and areas in H1 2024 net cash of £23m unpenetrated market Clear strategy for 2030 aspirations of: In line with market expectations growth for the full year
Slide 23: Questions
QUESTIO
Slide 24: Appendices
APPENDICES Personal
Slide 25: Board of directors
Martin Bennett Maria Darby-Walker Non-Executive Senior Non- Chairman Executive Director* Paula Constant Bob Head Group Chief Non-Executive Executive Director** Sarah Mace Andy Lothian Chief Financial Non-Executive Officer Director Ciaran Astin Non-Executive Director
Slide 26: Balance sheet summary
Non-current assets 11.7 11.2 0.5 Total Assets 45.8 49.2 (3.4) Total Liabilities 14.1 17.2 (3.1) Total Equity 31.7 32.0 (0.3)
Slide 27: Profit before tax and Adj EBITDA
Profit before tax - Continuing 2.3 2.0 Adj EBITDA* - Continuing 3.9 3.0
Slide 28: Cash flow summary
7.7 (0.3) 10.4 7.3 2.8 (0.0) 10.1
Slide 29: Significant shareholders
| Significant shareholders Christopher Johnston 36.4% Premier Miton Investors 13.5% Close Asset Management 11.6% Chelverton Asset Management 5.5% Other directors, staff and SIP Trust 0.6% Source: Share register analysis as at 30 June 2024 Personal
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