Ten Lifestyle Group Plc · LSE:TENG

Ten Lifestyle — FY2023 Earnings Presentation

40 slides from Ten Lifestyle's earnings presentation, Nov 22, 2023

Slide 1: Annual Report and Accounts for the Year Ended 31 August 2023
ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 AUGUST 2023 November 2023 © Copyright Ten Lifestyle Group 2023. All rights reserved. Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 1 LIVING ×
Slide 2: Agenda
Agenda • 2023 Highlights • Financial Results • Operational Update • Business Model • Outlook • Questions and Answers Astrid Y Gaston, Lima, Peru - a Ten Dining partner Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 2 LIVING ×
Slide 3: 2023 Highlights
2023 Highlights • Record Net Revenue 1, up 35% to £63m (2022: £46.8m) • Step change in Adj. EBITDA 2, up £7.1m to £12.0m (2022: £4.9m) • Adjusted EBITDA margin up 9% to 19% (2022: 10%) • Inflection point with PBT, up £4.7m to £0.9M (2022: £(3.8m)) • 100% Material Contract 3 retention with a Net Corp
Slide 4: A Step Change and Profitability Inflection Point
A Step Change and Profitability Inflection Point Net Revenue (£m) Active Members (‘000) 63.0 7.4 353 45.8 44.2 46.8 5.5 3.3 34.7 5.7 275 2.8 226 192 203 40.3 40.9 31.9 41.1 55.6 2019 2020 2021 2022 2023 Corporate Revenue Supp lier Revenue 2019 2020 2021 2022 2023 Adjusted EBITDA (£m) Profit Before T
Slide 5: Our Mission
Our Mission To become the world’s most trusted service platform, working behind global brands Black Cod served at Roka, Dubai – a Ten Dining partner Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 5 LIVING ×
Slide 7: Corporate Partners Commercially Benefit From Ten
Corporate Partners Commercially Benefit From Ten Client Retention Rates • Ten’s corporate partners improve customer acquisition, retention and grow customer value Client retention rates p.a (%) - Users are 3 times more likely to be retained as customers and more likely to advocate - Users correlate
Slide 8: Proposition for members
8 Proposition for members Travel Dining Entertainment Luxury Retail Experiences & Inspiration • Full travel service IATA • Held Tables, priority • Access to the best • Personal shopping Events • In-depth City Guides licensed access and exclusive seats, VIP packages and • Member events • Sourcing cov
Slide 9: Investment Case
Investment Case Huge market Established market Proven opportunity leader growth engine • • • Tech and Proposition Income from premium #1 in market investment delivers better brands to drive loyalty of #1 in tech and assets client ROI and improving their most profitable Long-term, well retained effic
Slide 10: Ten's Growth Engine
Ten's Growth Engine Growing Proposition, Profitability and Scale Watch the Growth Engine video at www.tenlifestylegroup.com/investors/ Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 10 LIVING ×
Slide 11: Our platform well positioned for growth
Our platform well positioned for growth Large member base and Scaling a maturing global platform Healthy proposition in travel, Iterating, leveraging digital dining, entertainment, retail Selling into known markets, Strong in financial services with proven case studies Allows ‘growth engine’ Profita
Slide 12: Changes to the Board
Changes to the Board Jules Pancholi Edward Knapp Carolyn Jameson Victoria Carvalho Non-Executive Chairman Non-Executive Director Non-Executive Director Executive Director & 8 November 2023 8 November 2023 8 November 2023 Chief Proposition Officer 22 February 2023 Ten Non-exec since 2017 and Ex-McKin
Slide 13: Financial Results
Image to be updated Financial Results Year to 31 August 2023 Six Senses Laamu, Olhuveli Island, Maldives. Ten’s Global Hotel Collection Prepared for Investors 2023. © Copyright FY2023. Ten © Copyright Lifestyle Ten Group Lifestyle 2023. Group AllAll 2023. rights reserved. rights reserved. 13 LIVING
Slide 14: Income Statement
Income Statement • Record Net Revenue, up 35% to £63m (2022: Income statement for year ending 31 August 2023 £46.8m) £m 2023 2022 YOY change • Operating expenses increased by £9.1m (22%) : £m £m £m - headcount up to service heightened activity Revenue 66.7 48.7 18.0 Net Revenue 63.0 46.8 16.2 • Impr
Slide 15: Net Revenue
Net Revenue Net Revenue Growth 2022 vs 2023 (£m) • Net Revenue of £63.0m (2022: £46.8m), up 35%, 63.0 70.0 29% at constant currency 11.1 0.7 1.7 60.0 46.8 2.7 • Retained all Material Contracts 50.0 46.8 • Net Corporate Revenue Retention Rate of 131% 40.0 (2022: 120%) 30.0 49.5 20.0 • Base Corporate
Slide 16: Supplier Revenue has recovered
Supplier Revenue has recovered Supplier revenue (£m) • Supplier revenue (predominantly travel 8.0 14.0% related) of £7.4m (2022: £5.7m) up 30% 13.0% 12.8% 7.0 12.0% - equates to 11.7% of Net Revenue (2022: 11.4% 11.3% 10.7% 10.8% 6.0 12.2%) 10.0% Supplier Revenue (£m) % of Net Revenue • Some seasona
Slide 17: Net Revenue By Region
Net Revenue By Region Europe Net Revenue by region (£m) £m 2023 2022 % change • Up 26% due to continued growth in existing £m £m Europe 25.9 20.6 +26% corporate contracts through strong member Americas 25.8 16.5 +56% AMEA 11.3 9.7 +16% proposition and offers and supplier revenue 63.0 46.8 +35% Ameri
Slide 18: Adjusted EBITDA by region
Adjusted EBITDA by region Europe • Adj. EBITDA up £4.3m to £9.2m Adjusted EBITDA (£m) • Adj. EBITDA margin of 36% in our most mature region £m 2023 2022 Change £m £m £m Americas Europe 9.2 4.9 +4.3 Americas 1.9 (0.7) +2.6 • Adj. EBITDA profit up £2.6m to £1.9m AMEA 0.9 0.7 +0.2 Total 12.0 4.9 +7.1 •
Slide 19: Continued Technology Investment
Continued Technology Investment The Group has invested over £49m in the development of our technology to date Cash Spend on Technology Platform, Comms and Infrastructure (£m per FY) • Continued ‘good to great’ investment in Ten Digital Platform, TenMAID, content, IT IPO infrastructure, communication
Slide 20: Cash Flow
Cash Flow Cashflow £m 2023 2022 YOY change • Operating Cash flow up by £6.7m to £11.5m (2022: £4.8m) £m £m £m Profit before tax 0.9 (3.8) 4.7 - £4.7m improvement in profit before tax Net finance expense 0.9 0.1 0.8 - improved net working capital of £0.5m Working capital changes 0.4 (0.1) 0.5 Non-cas
Slide 21: Operational Update
21 Operational Update Operational update Year to 31 August 2023 DINE, an example of our member exclusive dining eZine produced by Content x Ten Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 21 LIVING ×
Slide 22: Operational Highlights
Operational Highlights • Continued to retain all Material Contracts (4th year running) • New contract wins , including new mandates in the Americas • Developed existing contracts, including expansion of Large contracts in both Americas and EMEA • Revenue growth in all regions , largely via activatin
Slide 23: Financial Services of the Future
Financial Services of the Future CONSUMER EXPERIENCE INVESTMENTS PROTECTION LIFESTYLE LENDING BANKING ACQUISITION • ENGAGEMENT • RETENTION • VALUE Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 23 LIVING ×
Slide 24: Standout existing capabilities
25 Standout existing capabilities £49m invested in tech, live with 40+ brands across 50+ markets Full Travel OTA Personalization Ten Tokenizer Service Content Ten Platform is the perfect home for Fully transactional travel module on Our members tell us what they This service replaces any sensitive i
Slide 25: Roadmap – 2023 and beyond
26 Roadmap – 2023 and beyond Hotel search Entertainments AI co-pilot over MAID improvements Viator integration tickets self-serve Continued optimisation of our Hotels CRM. Building out new, secure Addition of events, excursions and Ability to book online full range of capabilities so Lifestyle Manag
Slide 27: Preferences
Preferences Members can ”follow” and track their preferred: • Artists and Events under Entertainment • Hotels under Travel • Restaurants under Dining • Brands under Offers • Lifestyle experiences And easily manage them under their profile Prepared for Investors FY2023. © Copyright Ten Lifestyle Grou
Slide 28: Accelerating demand through Personalisation
Accelerating demand through Personalisation Ten is heavily invested in building member profiles so they can be targeted effectively Data is sourced from clients at the outset augmented with data collected from activation onwards, through explicit selection and implicitly, based on behaviours Contact
Slide 29: Proposition ESG Pillars
Proposition ESG Pillars We commit to driving sustainable and ethical decision making by focusing on four Proposition ESG pillars 1 2 3 4 Ten’s sustainable Strengthening ESG Visibility of choice Facilitate member’s business practice Proposition to deliver across all channels philanthropic member choi
Slide 30: Building a sustainable business
Building a sustainable business First B-Corp certified business on AIM Our Sustainable Business Strategy and successful application to become B Corp certification creates value for our stakeholders: • Greater alignment • Competitive advantage • Attract and retain talent 3 key priorities of our Susta
Slide 31: Business Model
Business Model Watch the Growth Engine video at tenlifestylegroup.com/investors/ Atlantis The Royal, Dubai, part of Ten’s Global Hotel Collection Prepared for Investors 2023. © Copyright FY2023. Ten © Copyright Lifestyle Ten Group Lifestyle 2023. Group AllAll 2023. rights reserved. rights reserved.
Slide 32: Our Revenue Model
Our Revenue Model Supplier revenue Long term contracts often with agreed minimums 12% Typical Contract High-touch Requests ££ Per High-touch 88% Corporate revenue Digital Requests £ Per Digital Total Corporate Client Revenue Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All ri
Slide 33: Key Levers to Grow our Active Members, Usage and Digital Mix
Key Levers to Grow our Active Members, Usage and Digital Mix Higher VH ACTIVE MEMBER PENETRATION H • Member journey M • Personalisation content with digital calls-to-action • Digital proposition • Incentives • AI & Chat Lower Low High DIGITAL MIX VERY HIGH value HIGH value MEDIUM value VH customer s
Slide 34: Average Concierge Revenue by value segments
Average Concierge Revenue by value segments Concierge Revenue per Active Member by value segments Medium High Very High Prepared for Investors FY2023. © Copyright Ten Lifestyle Group 2023. All rights reserved. 36 LIVING ×
Slide 35: Active member base continues to grow from our growing eligible member base
Active member base continues to grow from our growing eligible member base Eligible Members have an eligible product, employment, account or Active Members have used the service at least once in the card offered by a corporate client and have access to the service past 12 months Eligible Members in
Slide 37: Clear Pathways To Revenue/Active Member Growth
Clear Pathways To Revenue/Active Member Growth Additional Clients in new Geographies, Verticals New Clients: New Clients: New Clients: Contracts In Signed Contracts Pipeline Negotiation Current Clients: Current Clients: Current Clients: New Contracts Increased Active Increased Usage per (Eligible an
Slide 38: 2023 Current Trading and Outlook
2023 Current Trading and Outlook • We continue to drive revenue through increased activity from existing Active Members and “first time users” from our existing Eligible Member base. • We have a healthy pipeline of partnership opportunities to increase Eligible Members. • Higher interest rates impro
Slide 40: Next steps available
Next steps available • Growth engine video in investor section on www.tenlifestylegroup.com/investors • Overview of our technology – can be shared by video or showcased during an office visit • Insight into member experience – ways to trial the service • Review of how we provide value to corporates

Ten Lifestyle Group — FY2023 Earnings Presentation on 6ix

Ten Lifestyle — FY2023 Earnings Presentation

Slide 1: Annual Report and Accounts for the Year Ended 31 August 2023

Slide 2: Agenda

Slide 3: 2023 Highlights

Slide 4: A Step Change and Profitability Inflection Point

Slide 5: Our Mission

Slide 6: Our Corporate Clients

Slide 7: Corporate Partners Commercially Benefit From Ten

Slide 8: Proposition for members

Slide 9: Investment Case

Slide 10: Ten's Growth Engine

Slide 11: Our platform well positioned for growth

Slide 12: Changes to the Board

Slide 13: Financial Results

Slide 14: Income Statement

Slide 15: Net Revenue

Slide 16: Supplier Revenue has recovered

Slide 17: Net Revenue By Region

Slide 18: Adjusted EBITDA by region

Slide 19: Continued Technology Investment

Slide 20: Cash Flow

Slide 21: Operational Update

Slide 22: Operational Highlights

Slide 23: Financial Services of the Future

Slide 24: Standout existing capabilities

Slide 25: Roadmap – 2023 and beyond

Slide 26: AI at Ten

Slide 27: Preferences

Slide 28: Accelerating demand through Personalisation

Slide 29: Proposition ESG Pillars

Slide 30: Building a sustainable business

Slide 31: Business Model

Slide 32: Our Revenue Model

Slide 33: Key Levers to Grow our Active Members, Usage and Digital Mix

Slide 34: Average Concierge Revenue by value segments

Slide 35: Active member base continues to grow from our growing eligible member base

Slide 36: Outlook

Slide 37: Clear Pathways To Revenue/Active Member Growth

Slide 38: 2023 Current Trading and Outlook

Slide 39: Thank you

Slide 40: Next steps available