Telecom Plus Plc · LSE:TEP
Telecom Plus — H1 FY24 Earnings Presentation
23 slides from Telecom Plus's earnings presentation, November 2023
Slide 1: FY24 Interim Results
FY24 Interim Results November 2023 1
Slide 2: Three key takeaways
FY24 Interim Results Three key takeaways Continued comfortable Scope to accelerate growth Long term ‘win:win’ business double-digit growth in through incremental model with real growth normalised energy markets opportunities momentum Several months of rational energy Deepened wholesale energy supply
Slide 3: H1 FY24 Highlights
H1 FY24 Highlights A very strong first half performance Customers Sep 23 949,180 Comfortable double-digit organic customer growth, +14% at an annualised rate of over 14% Mar 23 886,579 annualised Adj PBT H1 FY24 £43.7m Reflecting continued high quality customer growth plus +36% a temporary Q1 benefit
Slide 4: Financial Performance
Financial Performance H1 FY24 4
Slide 5: Profit & loss (£m)
Profit & loss (£m) H1 FY24 H1 FY23 Variance Ongoing strong customer acquisition driving double-digit growth in sustainable profits Revenue 884 562 57% Gross profit 165 112 ● After a higher Q1, energy retail prices have 48% Gross margin 18.7% 19.9% stabilised at ~£2,000 per annum Distribution expenses
Slide 6: Balance sheet (£m)
Balance sheet (£m) 30 Sep 23 31 Mar 23 30 Sep 22 Var vs Sep 22 Net debt has returned to typical levels as one-off timing differences unwound during H1 Fixed assets 33 34 34 (1) Non-current assets 196 194 187 9 ● Reversal of one-off timing differences relating to Net current assets 74 20 56 18 wholes
Slide 7: Cashflow (£m)
Cashflow (£m) Cash impacted by expected one-off timing H1 FY24 H1 FY23 differences unwinding during H1 EBITDA 50.4 38.1 ● One-off working capital unwind in H1 following high energy prices in H2 last year Working capital movement (59.2) 0.5 ● Typical annual working capital consumption £25- £30m Taxat
Slide 8: Continued comfortable double-digit growth in normalised energy markets
Continued comfortable double-digit growth in normalised energy markets 8
Slide 9: Continued comfortable double-digit growth in normalised energy markets
Continued comfortable double-digit growth In normalised energy markets Customer Base Growth Stable retail energy prices (FY24 first half only) ○ Several months now of ~£2,000 levels ○ Future Price Cap forecasts stable at around £2,000 ○ Ongoing consumer demand for saving and earning Stable & focussed
Slide 10: Scope to accelerate growth through incremental opportunities
Scope to accelerate growth through incremental opportunities 10
Slide 11: Deepening of energy supply relationship
Scope to accelerate growth through incremental opportunities… Deepening of energy supply relationship ● Updated agreement with EON secures terms for next decade ● Incremental growth opportunities ○ greater flexibility relating to fixed price tariffs ○ small business market ○ EV tariffs ● Enables full
Slide 12: Long term 'win:win' business model with real momentum
Long term ‘win:win’ business model with real momentum 12
Slide 13: A one-stop shop for all your home services
A one-stop shop for all your home services Over 950,000 households taking 3m services Energy Broadband Mobile Insurance 13
Slide 14: One set of overheads, multiple revenue streams
One set of overheads, multiple revenue streams A long term, sustainable cost advantage Single service competitors 4 sets of 1 set of overheads overheads vs 4 separate 4 combined revenue streams revenue streams 1 customer 1 customer 14
Slide 15: Multiservice proposition delivering value for all stakeholders
Multiservice proposition delivering value for all stakeholders More services = lower prices = greater lifetimes Single service 2 services 3 services 4 services Energy Energy Energy Energy Broadband Broadband Broadband Mobile Mobile Insurance Increasing customer lifetimes and financial contribution 15
Slide 16: The UK's only multiservice provider
The UK’s only multiservice provider Energy Broadband Insurance Mobile 16
Slide 17: Unique ability to acquire multiservice customers
Unique ability to acquire multiservice customers Social impact of word of mouth route to market Our growing community of 60,000+ Partners ● Self-employed, part-time UW brand advocates ● Recommending UW to potential customers >70% of new customers take 2+ services at sign up ● Overcome the inertia to
Slide 18: We've been growing our market share for 25+ years
We’ve been growing our market share for 25+ years Now over 2 years into our next phase of double-digit organic customer acquisition Annual customer base growth (FY24 first half only) 18 UW customer numbers as at year end (31 March).
Slide 19: Outlook
Outlook Ye Utili yen NES TelecomPlus 19
Slide 20: Medium term goal - Scaling from 1m to 2m customers
Medium term goal - Scaling from 1m to 2m customers 97 out of every 100 UK households is with another supplier… 7th largest residential supplier of electricity in the UK 20 UK energy market supplier share by residential electricity supply points (Source: Cornwall Insights, as at 31 Jul 2023), adjuste
Slide 21: Outlook - A hugely exciting time for the business
Outlook - A hugely exciting time for the business What we expect… In H2 FY24 Medium term Continued demand for additional Strong customer growth New opportunities delivering income as a UW Partner ● Comfortable double-digit incremental customer growth from ● Current run rate ~14% FY26 (SME, EV) Furth
Slide 22: Get in touch
Get in touch Utility Warehouse 508 Edgware Road London, NW9 5AB Telecomplus.co.uk 22
Slide 23: Disclaimer
Disclaimer The information contained in this presentation in respect of Telecom Plus PLC (the “Company”) and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection