Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — H1 2019 Earnings Presentation
25 slides from Ten Lifestyle's earnings presentation, May 2019
Slide 1: Interim Results for six months ended 28th February 2019
Welcome. Interim Results for six months ended 28th February 2019 May 2019 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 2: Our Mission
Our Mission To become the world’s most trusted service platform, working behind global brands. Welcome. 2 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 3: Company review reference to Annual Report and videos
For company review, please refer to Ten Lifestyle Group’s Annual Report and previous videos (notably our Full Results Video) at: Welcome. https://www.tenlifestylegroup.com/investors /documents 3 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 4: Corporate Overview
Corporate Overview th Market Cap: £50.41 million (as of 11 May 2019) Main shareholders include: the Founders; Management; Soros FM; Lombard Odier; Baillie Gifford; Herald; and the majority of pre-IPO private shareholders (as at 28 February 2019) Welcome. H1 Net Revenue: £21.5m Cash over £13 million
Slide 5: H1 2019 Highlights
H1 2019 Highlights Net Revenue* up 24% to £21.5m with double digit growth across all three regions 3 new contracts won (1 Medium and 2 Small)† 1 contract grew from Large to Extra Large† Digital platform now in over 100 countries, 14 Welcome. languages, 36 currencies and with over 10 client brands Re
Slide 6: Financial Results
Financial Results Welcome. for six months ended 28th February 2019 6 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 7: Key Financial Highlights
Key Financial Highlights Net Revenue: £21.5m, growth of +24% (H1 2018: £17.3m) Ø 20% Net Revenue growth in EMEA Ø 35% Net Revenue growth in the Americas Ø 18% Net Revenue growth in APAC ‡ Adjusted EBITA : -£2.9m (H1 2018: -£1.4) Loss after tax: -£5.2m (H1 2018: -£4.9m) Welcome. Cash balance: £13.2m
Slide 8: Income Statement
Income Statement H1 2019 H1 2018 £m £m 24% Net Revenue growth vs H1 2018 Revenue 22.6 18.2 Increased operating expenses vs prior year reflects Net Revenue 21.5 17.3 continuation of cost run rates from H2 2018 Operating expenses and Other income (24.4) (18.7) Adjusted EBITA (2.9) (1.4) Ø Increased op
Slide 9: Net Revenue
Net Revenue Overall growth was 24%, with H2 2018 run Net Revenue growth H1 2018 to H1 2019 rate continuing into H1 2019 £25.0m Revenue growth reflects organic growth of £20.0m existing contracts, supported by contract launches in H2 2018 £15.0m Announced contract wins are expected to go live in H2.
Slide 10: Net Revenue by Region
Net Revenue by Region Net H1 2018 H1 2019 Revenue £m £m EMEA 7.8 9.4 Americas 5.4 7.3 APAC 4.0 4.7 Group YoY growth ra tes 17.3 5% 21.5 Welcome 24% . EMEA: Net Revenue up 20% YoY, continuing the run rate from H2 2018 Americas: Net Revenue up 35% YoY, as a result of contract wins. Encouraging growth
Slide 11: Adjusted EBITA by Region
Adjusted EBITA by Region Adjusted EBITA H1 2018 H1 2019 £m £m EMEA 1.9 0.4 Ma rgi n 24% 4% Americas (3.3) (2.3) Ma rgi n (60%) (31%) APAC Ma rgi n (0.0) (1%) (1.0) (21%) Welcome. Group (1.4) (2.9) Ma rgi n (8%) (13%) EMEA: operating efficiencies improving despite lower initial margins in our newer m
Slide 12: Technology Spend
Technology Spend Cash spend in technology has continued in H1 2019 as Annual Cash Spend on Technology Platform, we roll out our fully-integrated, transactional, global, Communications and Infrastructure digital platform live in market (£m per FY) £10.5m In August 2018, Ten recruited a new CTO with 2
Slide 13: Cashflow
Cashflow H1 2019 H1 2018 Operating cash outflows were £4.1m, reflecting £m £m increased operating losses offset by increased Loss before tax (4.8) (4.8) working capital, mainly an increase in trade Net finance expense 0.1 0.9 receivables of £1.2m due to the timing of receipts Working capital changes
Slide 14: Operational Update
Operational Update Welcome. 14 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 15: Ten's Leadership Team
Ten’s Leadership Team New Joiner (Past 12 months) ALEX CHEATLE ANDREW LONG ANNA SEIZER BRYN DYER DAVID PORTER FRANCESCO DE VICTORIA Co-Founder and Co-Founder and COO, EMEA COO, APAC Managing Director, MARCHIS CARVALHO Welcome. CEO Global COO Strategy Customer Value Chief Technology Managing Director
Slide 16: Enhanced Platform now In-Market
Enhanced Platform now In-Market New CTO and a more mature, experienced team Now in-market globally Helps unlock new launches / business development Helps open marketing opportunities to grow existing Welcome. contracts Key competitive strength 16 © Copyright Ten Lifestyle Group 2019. All rights rese
Slide 17: Uptake of New Digital Platform Amongst our Corporate Clients
Enhanced Digital Platform Live Dates: (a) FY 2018 ( – Aug 2018) Uptake of New Digital Platform Amongst (b) Q1 2019 (Sep – Nov 2018) (c) Q2 2019 (Dec 2018 – Feb 2019) our Corporate Clients is Developing (d) Q3 2019 (Mar 2019 – Today) Created from the by Noun kareemovic Project Visa (c) RBS Created by
Slide 18: Ten's Services Improve Revenue and Profit for our Clients
Ten’s Services Improve Revenue and Profit for our Clients Engagement Principle with Ten drives - concierge customer is a big idea value, retention and acquisition Incremental marginal contribution/customer Engagement drives soft customer metrics (NPS, brand values and trust) Incremental revenue/cust
Slide 19: New Verticals
New Verticals Employee Loyalty Ø Global Management Consultancy signed as flagship contract in April 2019 Ø Peel Hunt research identifies this as a £1.1 billion addressable market Premium Brands Welcome. Ø Pipeline is promising for Medium and Large contracts† Ø Demand to retain and grow income from t
Slide 20: Outlook
Outlook Welcome. 20 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 21: Clearly-Identified Pathways to Revenue Growth
Clearly-Identified Pathways to Revenue Growth Additional Geographies, Verticals and Clients New Clients: Signed Contracts Welcome. New Clients: Contracts In Negotiation New Clients: Pipeline Current Clients: Increased Current Clients: Increased Current Clients: New Users Usage Contracts Current Clie
Slide 22: Operating Efficiency Grows as Regions Mature
Supplier integration Operating Efficiency Grows as Regions Mature and revenue Content Sales / Finance / Client Services Supplier integration and revenue Content Technology Welcome. Profit- ability Technology LM experience BAU benefits BAU benefits Sales / Finance / Client Services LM experience 22 ©
Slide 23: Revenue Build Advantages in 2019
Revenue Build Advantages in 2019 IPO 2019 Global self-serve digital platform fully available X ü Dedicated sales resource in Americas X ü Global offering Global case studies (HSBC, VISA, Mastercard, RBC, China, . WelcomeLargely ü Management Consultant) X ü More complete product set X ü Vertical mark
Slide 24: Outlook
Outlook Cash spend in technology has continued in H1 2019 as we roll out our fully- integrated, transactional, global, digital platform Trading since the period on track to deliver further growth and is expected to be in line with market expectations for the FY ending 31 Aug 2019 Welcome. Since 28 F
Slide 25: Welcome .
Welcome. © Copyright Ten Lifestyle Group 2019. All rights reserved.