Yu Group Plc · LSE:YU.
Yu — FY2022 Earnings Presentation
31 slides from Yu's earnings presentation, Mar 14, 2023
Slide 1: Full Year Results – Bigger Better Faster Stronger
UNSTOPPABLE MOMENTUM BIGGER EXCEEDING EXPECTATIONS ONCE AGAIN BETTER FASTER STRONGER FULL YEAR RESULTS 14 MARCH 2023 BOBBY KALAR – CEO PAUL RAWSON – CFO “Our record breaking financial performance and significant strategic progress is a testament to the strength of the group.”
Slide 2: Executive Summary
EXECUTIVE SUMMARY Exceeded all metrics: ▲ Revenue ▲ EBITDA “WE HAVE GOT OFF TO A ▲ Cash FANTASTIC START IN 2023 ▲ Forward Contracted Revenue WITH OUR EXCEPTIONAL The 4th year of consistent and consecutive PERFORMANCE CONTINUING. growth and profit figures WHILST THE BOARD REMAINS VIGILANT, WE Smart m
Slide 3: Accelerating Growth & Profit
ACCELERATING GROWTH & PROFIT CONSISTENT AND CONSECUTIVE GROWTH Revenue Adjusted EBITDA Average Monthly Contracted Net Cash (£m) (£m) New Bookings Revenue (£m) (£m) (£m) +79% +359% +78% *For FY23 +176% +57% 7.9 1.7 ? 24.5 18.8 13.8 279 102 11.4 155 6.8 8.3 45 -1.7 22 10 18 31 21 12 ? 7 ? ? 2020 2021
Slide 4: The Yü Group
THE YÜ GROUP GENERATING MULTIPLE STRONG GROWTH STREAMS NEW OPPORTUNITY 2024 NEW OPPORTUNITY 2023 www.yugroupplc.com 4
Slide 5: Scaling Our Smart Metering Business
SCALING OUR SMART METERING BUSINESS HOW WILL THE SMART METER ROLLOUT AFFECT US AND OUR CUSTOMERS? What is smart How does it impact What effect will it What is our current What revenue does metering? Yü group? have on the future? smart vs smart generate? traditional split? www.yugroupplc.com 5
Slide 6: Scaling Our Smart Metering Business
SCALING OUR SMART METERING BUSINESS HOW DO WE GROW YÜ SMART AND CREATE REVENUE? METER ONGOING INSTALLATION OWNERSHIP MANAGEMENT MAINTENANCE AND UPGRADES OF METERS BENEFITS TO OUR CUSTOMERS BENEFITS TO THE GROUP • Control consumption and visibility of usage • Improved consumption insights inform bett
Slide 7: Market Landscape
MARKET LANDSCAPE COMMODITY MARKET MOVEMENTS CHALLENGES: Evolution of forward gas price • Record high commodity prices Energy Bill Relief Scheme due to geopolitical events Announced Winter 2022 Winter 2023 Winter 2024 • Selling and pricing contracts 835 whilst protecting our margins 735 China enforce
Slide 8: Digital by Default
DIGITAL BY DEFAULT DRIVING GROWTH AND EFFICIENCY THROUGH TECHNOLOGY Our Digital by Default programme is designed to increase efficiency, drive business agility, and unlock new value for customers, employees and shareholders. Improving and simplifying the 2022 brought a new technology stack enabling
Slide 9: Financial Review
GROUP PLC FINANCIAL REVIEW
Slide 10: Financial Overview
FINANCIAL OVERVIEW Strong revenue growth, up 79% to £278.6m. FY FY £’m Change Continuing trajectory in profitability, with adjusted 2022 2021 EBITDA of £7.9m. Revenue +79% 278.6 155.4 • FY22 margin of 2.8%. H2 22 achieving 3.5%. Adjusted EBITDA 1 +359% 7.9 1.7 Profit after tax of £4.8m, up £0.3m in
Slide 11: High Confidence in Continued Growth
HIGH CONFIDENCE IN CONTINUED GROWTH GROWTH EBITDA CASH BIGGER BETTER FASTER STRONGER Subscription Net Customer Contribution Leverage Cash focus Revenue Model Overheads Revenue Contracted, Exit 20 £93m £278m revenue delivered 79% growth £’m and 6-month growth % Non-Firm £11m 67% in FY22: FY21 Growth
Slide 12: Proven Profit Trajectory
PROVEN PROFIT TRAJECTORY GROWTH EBITDA CASH BIGGER BETTER FASTER STRONGER Subscription Net Customer Contribution Leverage Cash focus Revenue Model Overheads Adjusted EBITDA1 Gross Margin Overheads Consistent improvement in adjusted EBITDA £’m and % of revenue and NCC2 % of revenue • 4 consecutive ye
Slide 13: Strong Cash Focus
STRONG CASH FOCUS GROWTH EBITDA CASH BIGGER BETTER FASTER STRONGER Subscription Net Customer Contribution Leverage Cash focus Revenue Model Overheads Cash & OCR1 Cash Evolution Strong cash generation, with £14.7m operational cash inflow: £’m & Days £’m • Performance despite Q122 £1.4m Covid-19 VAT d
Slide 14: Outlook & The Future
GROUP PLC OUTLOOK & THE FUTURE
Slide 15: Strong Momentum Continuing into 2023
STRONG MOMENTUM CONTINUING INTO 2023 VERY STRONG START METER POINTS ADDITIONAL MARGIN MANAGEMENT FOCUS TO 2023 INCREASING GROWTH FOR 2023 Average monthly Following strategic Improving customer Further improvement in bookings significantly reduction in FY22 cash collection adjusted EBITDA margin ahea
Slide 16: Appendix
GROUP PLC APPENDIX
Slide 17: Introduction
INTRODUCTION Bobby Kalar Paul Rawson Chief Executive Officer Chief Financial Officer Bobby is founder and major shareholder of Yü Group. A qualified Chartered Accountant with a degree in With a Degree in Electrical and Electronic Engineering Accountancy, Paul joined Yü Group in 2018. He has over and
Slide 18: Who Are We
WHO ARE WE Serving the B2B market Rapid & Experienced team Robust (no price cap) profitable growth & processes hedging policy OUR MISSION IS TO CREATE YÜTILITY SIMPLICITY FOR TIME STARVED B2B CUSTOMERS. www.yugroupplc.com 18
Slide 19: What We Do & Who We Serve
WHAT WE DO & WHO WE SERVE O U R P R O D U CT S O U R CU ST O M ER S METERING GREEN ENERGY SERVICES SMEs Multi-site, complex EV CHARGE SMART METER I&C companies POINT INSTALLATION INSTALLATIONS BUSINESS UTILITIES: GAS, ELECTRICITY, WATER METER ASSET NEW FINANCING CONNECTIONS SERVICES Third-party inte
Slide 20: 2022 in Numbers
2022 IN NUMBERS BIGGER, BETTER, FASTER, STRONGER BIGGER 2021: £155m 2021: £13.8m 2021: 31.9K (High growth) Revenue, up 96% 2020: £102m Average monthly bookings 2020: £8.3m Meter points 2020: 17.4K BETTER 2021: £1.7m 2021: £6.8m 2021: 14p (More profitable) Adjusted EBITDA 2020: (£1.7m) Net cash 2020:
Slide 21: The Right Team at Yü
THE RIGHT TEAM AT YÜ Bobby Kalar Paul Rawson Robin John Glasgow Anthony Perkins Chief Executive Officer Chief Financial Officer Paynter-Bryant Independent Senior independent • Bobby is founder and major • Joined Yü Group on 3 Independent Non-Executive Director Non-Executive director shareholder of Y
Slide 22: Business Overview – Service and Operations
BUSINESS OVERVIEW SERVICE AND OPERATIONS OPERATIONS 190 Employees 25,500 meters FORWARD commodity trading ROBUST Systems & processes Hedged position SERVICE No hidden costs. by default Trust Pilot score contracts, multi-utility Easy to deal with www.yugroupplc.com 22
Slide 23: Our Differentiation
OUR DIFFERENTIATION YÜTILITY SIMPLICITY CUSTOMER SERVICE INNOVATION/DIGITAL Unique multi-utility offer Three-ring pick up and easy to deal with Partner portal for easy access plus digital solutions to engage with future customers SUSTAINABLE SOLUTIONS OUR CUSTOMERS FLEXIBILITY Pure green energy supp
Slide 24: A Great Team at Yü
A GREAT TEAM AT YÜ 2021: 145 2021: 33% 2021: 4 2020: 111 2020: 30% 2020: 0 Average number of Yü employees Female identifying employees Placement students 2021: £1.1m 2021: 4 2021: 73.9% 2020: 2020: 9 2020: 71% Revenue per employee Internal promotions Employee engagement £0.9m OUR VALUES CUSTOMERS IN
Slide 25: Our Strategic Priorities
OUR STRATEGIC PRIORITIES BIGGER BETTER FASTER STRONGER Subscription Revenue Model Net Customer Contribution Leverage Overheads Cash focus Committed to Digital by Default driving Growing in a huge sustainability strategy, Consistent growth efficient customer market and increasing experience stakehold
Slide 26: Market Opportunity
MARKET OPPORTUNITY HUGE OPPORTUNITY FOR GROWTH IN A MARKET OF 3.5M BUSINESS ENERGY METERS Competitor Landscape We’re shaking up the energy supplier landscape, challenging the Big 6 and cementing our position as a key player that’s here to stay. Total UK market 2.3m“Big 6” suppliers 1% Yü Group www.y
Slide 27: Disrupting the Energy Market
DISRUPTING THE ENERGY MARKET W H I L ST OU R COM P ET I T OR S W R EST L E W I T H L EGA CY SY ST EM S OU R B R A N D- N EW T ECH N OL OGY ST A CK DEL I V ER S R EA L V A L UE T O OU R CU ST OM ER S From click to Bespoke pricing Always one Reducing costs Real time contract in just without human step
Slide 28: Sustainability: Our Commitment to People and Planet
SUSTAINABILITY: OUR COMMITMENT TO PEOPLE AND PLANET PRODUCT PLANET PEOPLE SUSTAINABLE ENERGY SOCIAL AND ENVIRONMENTAL POSITIVE PEOPLE SOLUTIONS IMPROVEMENT CULTURE To support businesses on their journey To reduce our carbon footprint and To continue to develop a dynamic, to net zero, offering a rang
Slide 29: Balance Sheet & Cashflow
BALANCE SHEET & CASHFLOW 31 DEC 31 DEC 31 DEC BALANCE SHEET EXTRACTS CASHFLOW STATEMENT EXTRACTS 31 DEC 2022 2022 2021 2021 £’m £’m £’m £’m Tangible & intangible fixed assets 6.9 5.3 Adjusted EBITDA 1 7.9 1.7 Deferred tax 5.3 5.9 Inflow / (Outflow) from… Trade & other receivables mov’t (17.4) (19.7)
Slide 30: Disclaimer
DISCLAIMER • This presentation is designed to provide information about YU Group PLC and its business and operations. It is intended as general information only and is not to be relied upon for any particular purpose. In particular, no information contained in this presentation constitutes, or shall
Slide 31: Investor Enquiries
Investor Enquiries Broker Enquiries Media IR@YuGroupPlc.com YuGroup@Liberum.com YuGroup@Teneo.com www.yugroupplc.com 31