Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2015 Earnings Presentation
34 slides from Mony's earnings presentation, Mar 1, 2016
Slide 1: Preliminary Results
Preliminary Results 1 March 2016 1
Slide 2: Matthew Price
Matthew Price 1 March 2016 2
Slide 3: Our diversified business traded well and we continued to invest in technology
Our diversified business traded well and we continued to invest in technology Adjusted Revenue Operating EPS (adjusted) £282m 14% Profit 15% 18% 14.5p £100m Capital Total Net Cash Investment Dividend £4m 14% £17m £4m £20m 9.15p 3
Slide 4: Revenue growth converted to profit
Revenue growth converted to profit £Millions FY 2015 FY 2014 Growth Revenue 281.7 248.1 +14% Gross Margin 80% 79% Adjusted EBITDA 110.1 95.2 +16% EBITDA margin % 39% 38% Depreciation & Software Amortisation (10.0) (7.8) Adjusted Operating Profit 100.1 87.3 +15% Adjusted Operating Profit margin % 36%
Slide 5: Strong progress on all elements of our strategy
Strong progress on all elements of our strategy Earn Preferred Best Site Customer partner £279m Loyalty £279m Be the easiest way for £279m Be the destination Be the best way for customers to find brand for users and providers to acquire providers’ products customers customers 23.6m (+5%) 18.6m (+18%
Slide 6: All Group businesses continue to grow
All Group businesses continue to grow Revenues £Millions FY 2015 FY 2014 FY Growth (%) Insurance 140.2 138.0 +2% Money 72.4 58.9 +23% Home Services 37.5 22.4 +68% MoneySuperMarket.com 250.1 219.3 +14% TravelSupermarket.com 24.5 22.6 +8% MoneySavingExpert.com 30.7 22.8 +34% Intra-group eliminations a
Slide 7: Significant headroom remains in insurance
Significant headroom remains in insurance Home, Motor and Travel Insurance CAGR 2011 - 2015 75 75 +5% MSM sales new / switching 24 Volume of products / millions 22 24 +2% Online sales new / switching 22 +0% Total market size Online Competition Online includes three other material aggregators (Confus
Slide 8: Insurance market was challenging in 2015
Insurance market was challenging in 2015 Total TV & Radio spend by PCWs 2012-15 (£Millions) £130 £126 £116 £115 £116 £120 £110 • Advertising spend by two competitors increased by c£10m in 2015. £100 £90 • Switching-over to our new technology in Q4 limited ability to react tactically £80 with paid se
Slide 9: We are improving insurance performance and continue to focus on differentiation
We are improving insurance performance and continue to focus on differentiation • Continue to focus on enhancing our insurance business not buying share. • New platform gives stronger and flexible levers over time: • Paid Search – can bid higher as site personalisation will convert better. • Organic
Slide 10: Online purchasing & switching is accelerating in our money product market
Online purchasing & switching is accelerating in our money product market Cards & Loans CAGR 2011 - 2015 43 42 +13% MSM sales new / switching Volume of products / millions +15% Online sales new / switching 5 +1% Total market size 22 M 3 Online Competition Apart from Moneysupermarket, the online mark
Slide 11: Substantial headroom and high growth rates in the energy market
Substantial headroom and high growth rates in the energy market Energy CAGR 2011 - 2015 32 32 +21% MSM sales new / switching Volume of products / millions +10% Online sales new / switching 1.6 +0% Total market size 1.1 Online Competition Apart from Moneysupermarket, the online market is a mix of oth
Slide 12: Significant growth in direct visitors
Significant growth in direct visitors Marketing Spend Revenue by source 100% 1% 4% FY FY 15% £Millions FY (%) 90% 17% 2015 2014 80% Offline Spend 25.8 28.2 -9% 70% 60% Online and other 56.3 52.8 +7% 50% spend* 40% Other 8.4 5.9 30% 20% Total Group 90.5 86.9 4% 10% 84% 79% 0% Marketing Margin 68% 65%
Slide 13: Group net cash increased after paying the final MoneySavingExpert.com consideration
Group net cash increased after paying the final MoneySavingExpert.com consideration £7.4m £2.6m £2.6m (£0.3m) (£22.5m) (£1.0m) (£15.2m) (£20.6m) £100.1m (£45.6m) (£3.9m) £13.1m £16.7m Net cash at Adj. OP Depreciation Amortisation Share option Working Cash paid for Interest and Tax Payment of Dividen
Slide 14: Priorities for capital remain unchanged: Growth and a progressive dividend
Priorities for capital remain unchanged: Growth and a progressive dividend 1 2 3 4 £ Organic Growth Ordinary dividends Acquisitions Special distribution Invest to capture Progressive Data or services Will distribute when growth headroom. dividend. businesses that improve have meaningful Hurdle rate
Slide 15: Cash and capital update
Cash and capital update • The £3-5m additional online and offline marketing spend referred to on page 9 will be skewed towards the first half of 2016. • The technology investment is part of a three-year programme. We incurred software amortisation costs of £7 million this year. We expect technology
Slide 16: Dividends, EPS & dividend cover
Dividends, EPS & dividend cover Dividend (pence) 2015 2014 Interim 2.55 2.31 Final 6.60 5.69 Total Ordinary Dividend Declared 9.15 +14% 8.00 +10% Adjusted Earnings Per Share 14.5 12.3 Dividend Cover 1.6 x 1.5 x Dates for Final dividend – 31st March ex-div date, and 6th May payment date 16
Slide 17: Peter Plumb
Peter Plumb Chief Executive Officer 17
Slide 18: Summary: 2015
Summary: 2015 A year of good growth and technology platform delivery • Business Summary • MoneySuperMarket.com: Good performance driven by money and energy • MoneySavingExpert.com: Strong performance driven by money and energy • Travelsupermarket.com: Slowing growth • Growth investment programme • N
Slide 19: Platform rollout: major milestones achieved
Platform rollout: major milestones achieved MSM.com Insurance (Motor & Home) and TS.com fully operational Fusion Platform • Single technology platform powering all brands • Open source code • Cloud hosted Content Management Aggregation Engine Application Enterprise Data System Program Interface Ware
Slide 20: Insurance: tough market
Insurance: tough market We will continue to manage insurance for margin whilst building personalised experiences Multi PCW usage has not changed Changing the game by getting Source of traffic drives margin with increased TV spends personal Avg #PCWs used for New Driver? motor quotes* 1.8 1.7 1.7 1.7
Slide 21: Energy: growing fast
Energy: growing fast Collective switches are proving to be good at helping more people change supplier Energy Prices continue to Collective switches are Switching habit growing with fall becoming popular collective switches Avg std annual energy tariff #switchers (000s) with Collective switch vs MSM
Slide 22: Money: growing fast
Money: growing fast Trusted group brands are winning with content, product range and personalised services Great innovative Money brand leadership Innovative tools for better products for customers by the group personalised search 40 month BT Card #1 Switching 3.3% Personal Loan #1 Expert trusted he
Slide 23: Outlook: 2016
Outlook: 2016 • Trading • Group: good start to the year +12% • Markets • Insurance: balance motor margin with growth • Money: strong current account and credit card products • Energy: continued low home energy costs • Travel: deteriorating • Investments • Year 3 of new technology platform rollout •
Slide 24: Appendix
24 Appendix Moneysupermarket a roup
Slide 25: Unique monthly users increasing
Unique monthly users increasing 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 MSM MSE Google analytics unique monthly users Source: Google analytics. 25
Slide 26: Adjusted operating profit
Adjusted operating profit Revenues £Millions FY 2015 FY 2014 Variance Variance % Revenue 281.7 248.1 33.6 +14% Gross Profit 225.4 195.7 29.7 +15% Gross Margin 80% 79% Administrative Costs (110.8) (97.8) (13.0) +13% Distribution Costs (34.2) (34.0) (0.2) 0% Operating Profit 80.5 63.9 16.6 +26% Amorti
Slide 27: Adjusted cost base
Adjusted cost base Varianc Variance £Millions FY 2015 FY 2014 e % Staff Costs 51.1 41.9 9.2 +22% Depreciation 2.6 3.4 (0.8) -24% Amortisation of technology 7.4 4.4 3.0 +68% Irrecoverable VAT 7.4 7.4 0.0 0% Other admin 22.6 16.8 5.8 +35% Total Adjusted Admin 91.1 73.9 17.2 +23% Advertising 25.8 28.2
Slide 28: Strong gross margin maintained
Strong gross margin maintained FY H2 H1 FY H2 H1 £Millions 2015 2015 2015 2014 2014 2014 Revenue 281.7 137.8 143.9 248.1 125.7 122.4 Cost of sales (56.3) (27.3) (29.0) (52.4) (24.4) (28.0) Gross profit 225.4 110.5 114.9 195.7 101.3 94.4 GP % 80.0% 80.2% 79.8% 78.9% 80.6% 77.1% 28
Slide 29: Earnings per share calculation
Earnings per share calculation £Millions FY 2015 FY 2014 Statutory Profit Before Tax 79.8 66.0 Amortisation of MSFG intangibles 13.2 17.8 Amortisation of MSE intangibles 1.6 1.7 MSE contingent payable 4.8 3.9 Profit on disposal of associate - (3.9) Adjusted ‘Before Tax’ Earnings 99.4 85.5 Assumed ta
Slide 30: Statutory balance sheet
Statutory balance sheet £Millions 31-Dec-15 31-Dec-14 Property, Plant And Equipment 8.7 9.4 Intangible Assets - Technology 28.1 15.9 Intangible Assets - Acquisition related 135.8 150.6 Trade and Other Receivables 32.4 30.6 Cash and Cash Equivalents 16.7 43.1 Total Assets 221.7 249.7 Trade And Other
Slide 31: Effective tax rate broadly stable
Effective tax rate broadly stable £Millions FY 2015 FY 2014 Profit before tax 79.8 66.0 Standard rate of tax 20.25% (2014: 21.5%) 16.2 14.2 Effects of: Expenses not deductible for tax purposes 0.3 0.3 Impact of changes in tax rate (0.1) (0.2) Profit on disposal exempt from tax - (0.8) Adjustment in
Slide 32: Cash flow seasonality
Cash flow seasonality £Millions H1 2015 H2 2015 FY 2015 Adjusted Operating Profit 50.8 49.3 100.1 Depreciation 1.4 1.2 2.6 Amortisation of technology related intangible assets 3.8 3.6 7.4 Dividends (31.7) (14.0) (45.7) Tax (7.3) (7.9) ) (15.2) Purchase of shares by employee trust - (3.9) (3.9) Acqui
Slide 33: Group performance
Group performance £Millions Q1 15 Q2 15 Q3 15 Q4 15 FY 2015 MoneySuperMarket.com 67.9 58.7 67.0 56.4 250.1 MoneySavingExpert.com 7.8 6.8 8.5 7.6 30.7 TravelSupermarket.com 7.0 6.7 7.2 3.6 24.5 Intragroup / Other (6.1) (5.0) (6.6) (5.9) (23.6) Group Revenues 76.6 67.2 76.2 61.7 281.7 Growth PY % 25%
Slide 34: Historic KPI’s
Historic KPI’s £Millions FY 2015 FY 2014 Variance Variance (%) Insurance Visitors on to the site 40.3 36.2 4.1 11% Insurance Clicks off the site 14.8 16.2 (1.4) -8% Insurance Total Revenue (£) 140.2 138.0 2.2 +2% Money Visitors on to the site 43.3 40.8 2.5 6% Money Clicks off the site 22.5 21.6 0.9
Moneysupermarket.com Group — FY2015 Earnings Presentation on 6ix