Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2009 Earnings Presentation
47 slides from Mony's earnings presentation, Feb 24, 2010
Slide 1: Moneysupermarket.com Group Plc 2009 Preliminary Results
Moneysupermarket.com Group Plc 2009 Preliminary Results 24 February 2010
Slide 2: Agenda
Agenda Introduction: Gerald Corbett Financial Review: Paul Doughty Business Review: Peter Plumb/Graham Donoghue Questions and Answers: From the Floor From the Phones moneysupermarket.com 2
Slide 3: Summary
Summary New executive team in place Costs reduced Resilience of business model proven Proposition improved Business stabilised with a solid start to the new year Cash flow underpinning another special dividend 3
Slide 4: Financial Review
Moneysupermarket.com Group Plc 2009 Preliminary Results Financial Review Paul Doughty - Chief Financial Officer 24 February 2010 4
Slide 5: Summary financial highlights
Summary financial highlights Full year 2009 Profitability has stabilised Market share in Money and Insurance improved Visitors (excluding travel) 9% ahead of same period last year despite significantly lower marketing spend both on and offline Money vertical improved throughout 2009 Insurance vertic
Slide 6: Trading stabilised
Trading stabilised EBITDA margins maintained H1 2009 H2 2009 FY 2009 FY 2008 Variance H2 2008 £m £m £m £m % £m Revenue 68.5 68.4 136.9 178.8 (23%) 79.4 Internet 67.8 68.2 136.0 172.5 (21%) 77.2 Intermediary 0.7 0.2 0.9 6.3 (86%) 2.2 Gross Profit 47.7 46.5 94.2 116.7 (19%) 50.1 Gross Margin 69.6% 68.
Slide 7: DTS revenues continue to dominate
DTS revenues continue to dominate Insurance now the largest vertical Revenue by source UK internet revenue by vertical Direct to site revenue continues to be the Marked change in the shape of revenue – largest part of the revenue mix insurance channel growing
Slide 8: Insurance – 2009 highlights
Insurance – 2009 highlights Trading improving into H2 Revenues declined 3% against last year H2 revenues 2% ahead of same period last year Visitors declined 3% against last year H2 visitors 3% ahead of same period last year New creative launched mid June RPV increased in H2 Better site functionality
Slide 9: Money - 2009 highlights
Money - 2009 highlights Trading stabilised; RPV improving Revenue declined by 44% FY 2009 v FY2008 Availability of credit product - stabilising throughout 2009 First Plus closed for new business in August 2008 having generated £13.2m revenues in 2008 (£9.2m H1) Trading improved quarter on quarter re
Slide 10: Travel – 2009 highlights
Travel – 2009 highlights Trading in line with market; managed for margin Revenue down 15% to £16.3m on 2008 Weakness in demand for discretionary weekend type travel Hotels and Flights channels impacted Package holidays holding up Visitors down 12% on 2008 Consistent with H1 trends Managed for margin
Slide 11: Home Services – 2009 Highlights
Home Services – 2009 Highlights Utilities revenues weaker; Visitor Growth Revenue decreased by 25% to £5.5m against 2008 Switching environment for utilities less favourable – climate of stability/falling prices Visitors increased by 62% to 18.2m Driven by launch of shopping channel in Oct 08 New vou
Slide 12: Adjusted cost base
Adjusted cost base £29m reduction in total cost base £0.9m (£3.5m) (£0.1m) (£3.3m) (£3.2m) (£14.4m) (£5.1m) £133.9m £105.2m FY 2008 Depreciation Staf f Costs Irrecoverable Other Admin Of f line Internet Intermediary FY 2009 VAT Marketing Marketing Marketing Note: - Excluding amortisation of intangib
Slide 13: Marketing spend £20m reduction in 2009
Marketing spend £20m reduction in 2009 Visitor levels maintained % of cost % of cost FY2009 base FY2008 base Var. Costs (£m) SEM/Partners 42.4 40% 56.8 42% (25%) TV and other offline 18.4 17% 21.6 16% (15%) 60.8 58% 78.4 59% (22%) Irrecoverable VAT 4.6 4% 6.7 5% (31%) Total Marketing Costs 65.4 62%
Slide 14: Cash
Cash Cash balances of £53.8m at 31 December 2009 £36.5m of cash generated before capex, tax and dividend payments 100% of EBITDA converted to cash Dividend £0.9m (£3.0m) (£10.5m) £25.2m £4.4m £6.0m (£42.7m) £73.5m £53.8m Cash at Adj. Operating Depreciation Amortisation Interest Capex Tax Dividend Ca
Slide 15: Final Dividend held; Further Special Dividend announced
Final Dividend held; Further Special Dividend announced Dividend – p/share 2009 2008 Interim 1.3 1.3 Final 2.2 2.2 Special Dividend 9.84 TOTAL 13.34 3.5 Dates Ex Div Date 3 March 2010 Payment Date 1 April 2010 Total Dividend for 2009 £67m Includes Special Dividend of £50m 15
Slide 16: CEO Report
Moneysupermarket.com Group Plc CEO Report 1. What we did in 2009 2. Road map for 2010 and beyond 3. Building winning sites 4. Q1 trading outlook Peter Plumb 24 February 2010
Slide 17: H1 we stabilised the business
H1 we stabilised the business We drove efficiencies across the business and cut costs Organisation aligned to the new economic environment Headcount reduced by +80 delivering +£2M annual cost savings Evaluated our systems Architecture visioning for 2012 and systems design Made our marketing work har
Slide 18: H2 invested for growth
H2 invested for growth We focused on brand and site innovation Built and launched new market leading sites Motor insurance Credit cards Vouchers Built our brand Peter Jones campaign: prompted awareness *grew from 80% H1 to 85% H2 Development of 2010 campaign – through groups and research Grew Moneys
Slide 19: Moneysupermarket visitors grew +9%
Moneysupermarket visitors grew +9% Share grew H2 vs H1 19
Slide 20: Road map for 2010 and beyond
Road map for 2010 and beyond The business is very clear how it will grow Helping every household to make the most of their money Best Best Use data Build our products shop to delight brand No reason to go Open when and Be an everyday anywhere else wherever a customers brand customer wants it Make it
Slide 21: Creating the best Shop
Moneysupermarket.com Group Plc Creating the best Shop 1. Better for Customers 2. Better for Providers 3. Better for Us Graham Donoghue - MD Travel, Insure and Home Services 24 February 2010 21
Slide 22: Motor Insurance site
Motor Insurance site Pioneered our development strategy Better for Customers Better for Partners Time to get a quote reduced by 25% Its not just about price 22
Slide 23: Learning from Motor helped Cards development
Learning from Motor helped Cards development We compare every card in the UK 23
Slide 24: Vouchers innovates in a competitive market
Vouchers innovates in a competitive market Local gives customers a value add service 24
Slide 25: Our investments work for customers & providers
Our investments work for customers & providers Most importantly they drive increased profitability Increased loyalty Better Conversion - Quicker quotes - NPS +50% Cards +10% customers buy Motor quote +25% quicker Source: Internal Nov 09 vs Jan 10 25
Slide 26: Service breadth has grown our database
Service breadth has grown our database New CRM campaigns are showing encouraging early results +4M new individuals joined CRM revenues are up +30% (£M) our database in 2009 Source: Internal Jan 08 vs Jan 09 26
Slide 27: Omid is driving our brand awareness up
Omid is driving our brand awareness up Peter Jones built trust, Omid Djalili is delivering cut through Spontaneous Awareness (%) Source: Internal HPI Branded Advertising Tracker 27
Slide 28: Travel continues to deliver good margins
Travel continues to deliver good margins We grew customer cross visits to Money from Travel Overseas travel market is Share was lost chiefly in flights, In 2010 we will drive more cross still in decline -15% UK which is low margin business sell between money and travel trips abroad UK residents trav
Slide 29: Online Insurance continued to grow in 09
Online Insurance continued to grow in 09 Home Insurance grew at over 23% for aggregators Home Insurance Price volatility in the industry will help Motor Insurance growth aggregators share grew aggregators as customers seek out a +12% in 09 +23% in 09 better deal. Home Motor Prices 2010 v Prices 2010
Slide 30: Motor insurance will remain competitive
Motor insurance will remain competitive We start 2010 with a great new site and strong TV +30% more providers Great new site fully A more stable sector vs Jan 09 live media spend (£M) Source: Internal corporate compliance providers of Home and Motor insurance Source: Mediacom 30
Slide 31: In Money, stability continued through H2
In Money, stability continued through H2 We start the year with more fee paying providers then 2009 Customers however are slightly Money transactions in 2009 Money leadership will continue, more cautious, but more ready to stabilised supported by advertising go online in 2010 Number of products sold
Slide 32: 2010 Outlook statement
2010 Outlook statement Slow start to year with momentum building into February Group revenues ahead marginally YTD and individually in Money Insurance Home Services Travel continued to be managed for margin Front end investment in Media Technology Q1 Performance in line with Board’s expectations 32
Slide 33: Summary
Summary Helping every household to make the most of their money Stabilised the business in 2009 Slow start to the year, but now improving Online markets continue to grow We start 2010 in a good place More products Better site Stronger ads with better cut through Costs will continue to be tightly man
Slide 34: Questions and Answers
(£) Questions and Answers HOISIOIIOIOION® @ moneysupermarket I) agreatdealeasier 34
Slide 35: Appendix A Additional Financial Materials
Moneysupermarket.com Group Plc Appendix A Additional Financial Materials 35
Slide 36: Adjusted EBITDA
Adjusted EBITDA H1 H2 FY FY H2 2009 2009 2009 2008 Var. Var.% 2008 Revenues Internet 67.8 68.2 136.0 172.5 (36.5) (21)% 77.2 Intermediary 0.7 0.2 0.9 6.3 (5.4) (86)% 2.2 Total 68.5 68.4 136.9 178.8 (41.9) (23)% 79.4 Gross Profit 47.7 46.5 94.2 116.7 (22.5) (19)% 50.1 Margin % 70% 68% 69% 65% 63% Adm
Slide 37: Adjusted cost base
Adjusted cost base FY 2009 v FY 2008 H1 2009 H2 2009 FY 2009 FY 2008 H2 2008 £m £m £m £m Variance Variance % £m Adjusted Cost Base (1) Staff Costs (ex. Making Money ) 13.0 12.4 25.4 27.1 -1.7 -6% 12.3 IT Contractors 0.2 1.3 1.5 3.3 -1.8 -55% 1.7 Depreciation 2.0 2.4 4.4 3.5 0.9 26% 2.0 Irrecoverable
Slide 38: Statutory balance sheet
Statutory balance sheet December 2009 December 2008 £m £m Intangible assets 198.5 223.6 Other non-current assets 12.1 13.6 Net current assets 49.1 67.5 Long term liabilities (39.0) (46.9) Net assets 220.7 257.8 Capital and reserves 220.7 257.8 Intangible assets include £55m of goodwill, and £143.5m
Slide 39: Accounting information
Accounting information 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 2008 with an exe
Slide 40: Accounting information
Accounting information Share options(cont’d) Post-IPO 1.2m LTIPs options issued Dec 2007 which vest in 2010 with an exercise price of nil 8.3m LTIPs options issued in April 2009 which vest in 2012 with an exercise price of nil Post IPO options are included as a charge against adjusted EBITDA Charge
Slide 41: Accounting information
Accounting information Tax Tax charge of £1.3m giving effective rate of 40% Higher than statutory tax rate of 28% Trapped losses in Germany for which no deferred tax credit is recognised 41
Slide 42: Vertical KPIs by full year
Vertical KPIs by full year H1 H2 FY FY H2 2009 2009 2009 2008 Var 2008 Money Visitors ('m) 19.1 16.1 35.2 35.2 0% 17.5 Transactions ('m) 5.8 5.9 11.7 15.0 (22)% 7.1 Revenue (£m) - Click-based 15.8 17.0 32.8 57.4 (43)% 24.0 Revenue (£m) - Total 18.6 19.5 38.1 68.3 (44)% 28.0 RPV £0.97 £1.21 £1.08 £1.
Slide 43: KPIs – Internet (UK)
KPIs – Internet (UK) FY 2009 FY 2008 Growth Group Visitors ('m) 120.5 120.1 0% Transactions ('m) 58.9 71.4 (18%) Click Revenue (£m) 121.5 148.1 (18%) Other Revenue (£m) 14.1 24.4 (42%) Total Revenue (£m) 135.6 172.5 (21%) RPV £1.13 £1.44 (22%) RPT £2.06 £2.07 (1%) 43
Slide 44: Appendix B Additional Commercial Materials
Moneysupermarket.com Group Plc Appendix B Additional Commercial Materials 44
Slide 45: Products:
Products: We start the year with + 120 fee paying providers Insurance Money Travel 45
Slide 46: Market outlook for 2010
Market outlook for 2010 Structurally, Money has significant growth potential Used internet to take out in the last 12 months Dec Dec 2008 2009 Motor Insurance 58% 62% Home Insurance 40% 43% Savings 35% 30% Cards 45% 47% Loans 7% 8% Mortgages 5% 7% Source GfK 46
Slide 47: In Money, stability continued through H2
In Money, stability continued through H2 We start the year with more fee paying providers but poor visibility Credit availability has flattened We start 2010 with more commercial deals then 2009 and lead the market on range Mortgage Products Available Provider count Cards Save Loans Mort Source: Cre
Moneysupermarket.com Group — FY2009 Earnings Presentation on 6ix