Mony Group Plc · LSE:MONY
Mony — H1 2023 Earnings Presentation
30 slides from Mony's earnings presentation, Jul 24, 2023
Slide 1: Interim results
Interim results 24 July 2023 ern |e — “a “i Ate? ge) i ee ee - —
Slide 2: Peter Duffy, Chief Executive Officer
Peter Duffy Chief Executive Officer
Slide 3: Good trading performance and continued strategic progress
Good trading performance and continued strategic progress Good trading performance in H1 • Revenue £213.8m, +11% • Gross margins maintained at 68% • Strong EBITDA growth £67.7m (+20%) • Capitalised on strong brands and market positions to drive performance despite mixed market environment Continued
Slide 4: Niall McBride, Chief Financial Officer
Niall McBride Chief Financial Officer
Slide 5: Financial summary
Financial summary Saved households an estimated £1.3bn in the first 6 months of the year Helping households save money £213.8m £67.7m 7.6p Revenue Adjusted EBITDA Basic EPS +11% +20% +25% 12% £41.1m 3.2p Reinvestment rate Operating cashflow Dividend per share -1pt -10% +3% 5
Slide 6: Insurance: Revenue up 23%; efficient acquisition supports market share gains
Insurance: Revenue up 23%; efficient acquisition supports market share gains Switching trends improved1 Market Car and home insurance switching volume (market) - % change vs LY • Switching market rebounding from FCA’s 2022 General Insurance +19% Pricing Regulations (‘GIP’) +15% +6% – Car insurance v
Slide 7: Money: Growth in credit cards and banking; interest rates hit borrowing
Money: Growth in credit cards and banking; interest rates hit borrowing Successive interest rate rises1; borrowing growth falling2 Market Bank of England base rates and one month growth rates in total lending to • Interest rates up from 1.25% in June 2022 to 5% over eight base individuals (excl. stu
Slide 8: Home Services: Confident of medium-term return to energy switching
Home Services: Confident of medium-term return to energy switching Fall in price cap in July 2023 will see lower customer bills1 Energy market Annual bill equivalent for typical levels of consumption, direct debit dual fuel customers • Wholesale energy prices reduced but still volatile2 • Switching
Slide 9: Travel and Cashback: Continued rebound in demand for package holidays
Travel and Cashback: Continued rebound in demand for package holidays Travel revenues Travel H1 performance +42% • Travel up 42%, returning towards pre-pandemic levels £11.6m • Market demand for package holidays in particular increased; traffic up 23% on prior year £8.2m * 5% H1 2022 H1 2023 % of Gr
Slide 10: Gross margin maintained and costs managed against inflation
Gross margin maintained and costs managed against inflation • Gross margin maintained; gross profit up 11% Operating cost base Revenue – Gains in Insurance and Pay Per Click (‘PPC’) efficiency "Admin costs“ – Headwinds from Money and Home Services £87m £90m – B2B growth and new contracts won had dil
Slide 11: Strong cash generation
Strong cash generation Net debt* of £54.4m at 30 June 2023 (£39.0m at 31 December 2022**) Operating cash flow £41.1m Includes £9.8m deferred consideration and £1.8m loan notes payable to Podium’s non-controlling interest (£9.8m & £1.8m at 31 December 2022**) £67.7m (£13.1m) (£15.0m) £1.5m (£6.0m) (£
Slide 12: Outlook
Outlook Guiding towards the upper end of consensus EBITDA for 2023 • Trends seen in Insurance and Money in H1 continuing into H2 • No significant energy switching expected in 2023 • Mid-single-digit percentage increase in operating costs (excluding D&A) Consensus FY 2023 adj. EBITDA range £123.9m -
Slide 13: Peter Duffy, Chief Executive Officer
Peter Duffy Chief Executive Officer
Slide 14: Our brand strength
Our brand strength One of the UK’s biggest consumer finance websites One of the UK’s biggest Leading UK price One of the UK’s leading comparison website consumer finance cashback sites websites 14
Slide 15: Helping households save money
Helping households save money Efficient Retain Expanding acquisition and grow our offer • Best-in-class digital efficiency • Engaged relationships – helpful • Further channels • Effective marketing prompts and reminders • Wider audiences • Seamless, shorter journeys • Targeted, relevant cross-sell •
Slide 16: Our strategic progress; what have we achieved?
Our strategic progress; what have we achieved? Brand strength and leading customer acquisition strategy • Direct to site traffic up more than 25% vs H1 2022 • Most recent MoneySuperSeven advert is best performing to date; brand consideration +14%, purchase intent +6% vs H1 2021 • Revenue contributio
Slide 17: Loyalty and reward scheme: MSM SuperSaveClub
New innovative user experience Loyalty and reward scheme: MSM “SuperSaveClub” • New reward and loyalty scheme; pilot launched in May • Helps households find more ways to save: 1. Rewards every time you buy; for every additional purchase - £20 for motor and home insurance and broadband; £5 for annual
Slide 18: Simplifying questions for users to switch multiple products: Dialogue
New innovative user experience Simplifying questions for users to switch multiple products : “Dialogue” • Dialogue is our proprietary technology stack; rolling out on SuperSaveClub • Builds a shared profile for users across products • Pre-populated information which users can confirm or amend makes
Slide 19: Enhancing access to our engaging content; developing the MSE app
New innovative user experience Enhancing access to our engaging content; developing the MSE app • Launched in 2022; downloaded more than half a million times • “Single sign on” capability launched in June • “Bill Buster” open banking application notifies users on switching broadband and mobile tarif
Slide 20: Summary
Summary Market leading brands underpinned by scalable, tech-led savings platform • New leading platforms for PPC, SEO and CRM installed and being utilised • Customer centric approach and capability made possible through advanced data capabilities • Scalable platforms rolling out across the Group • C
Slide 21: Appendix
Appendix | af ey
Slide 22: Strategic KPIs
Strategic KPIs Helping households save money £1.3bn 58% 71 (H1 2022: £0.9bn) (H1 2022: 57%) (H1 2022: 72) Estimated Group customer savings Group marketing margin MSM & MSE net promoter score 11.3m £17.64 20.6% (H1 2022: 10.8m) (H1 2022: £15.86) (H1 2022: 20.6%) MSM active users MSM revenue per activ
Slide 23: Fulfilling our purpose and ESG responsibilities
Fulfilling our purpose and ESG responsibilities Purpose • Purpose to help households save money even more relevant in difficult economic times Helping households save money • £1.3bn household savings delivered in H1 2023 • 11.3m active users in MSM in the 12 months to 30 June 2023 MoneySavingExpert
Slide 24: Adjusted cost base and marketing spend
Adjusted cost base and marketing spend Adjusted cost base Marketing spend and marketing margin £154m 57% 58% £144m £7m £8m £89m £22m £83m £4m £22m £4m £20m £18m £34m £31m £17m £19m D&A -15% Other -19% VAT & other admin 2% Cashback 9% Staff costs 11% TV and radio -10% £83m £89m Marketin
Slide 25: Product engineering investment
Product engineering investment Total product engineering investment Reinvestment rate £26m £26m +13% +12% £20m £20m £6m £6m H1 2022 H1 2023 H1 2022 H1 2023 • Investment continued at a similar rate, reinvestment % has fallen as a % of revenue which is higher YTD in 2023 Product engineering capital in
Slide 26: Capital allocation framework remains unchanged
Capital allocation framework remains unchanged Organic Ordinary Enhanced growth dividends Acquisitions distributions 26
Slide 27: Income Statement
Income Statement £million HY 2023 HY 2022 Growth Revenue 213.8 193.2 11% Gross margin 68% 68% Adjusted EBITDA * 67.7 56.6 20% EBITDA margin 32% 29% Depreciation (2.1) (2.5) Amortisation of technology related intangible assets (4.4) (5.1) Adjusting items ** (5.5) (5.2) Operating profit 55.7 43.8 27%
Slide 28: Segmental measure of adjusted EBITDA contribution: notes
Segmental measure of adjusted EBITDA contribution: notes • Results include a measure of segmental profit by vertical in line with IFRS 8 • Adjusted EBITDA contribution = Revenue – directly attributable cost of sales – directly attributable operating expenses. Excludes adjusting items. Directly attri
Slide 29: Segmental measure of adjusted EBITDA contribution
Segmental measure of adjusted EBITDA contribution HY 2023 Home Inter-vertical £million Insurance Money Services Travel Cashback Shared costs eliminations Total Revenue 105.6 51.9 18.7 11.6 29.0 - (3.0) 213.8 Directly attributable expenses (45.3) (16.9) (6.2) (8.2) (24.0) (48.5) 3.0 (146.1) Adjusted
Slide 30: Moneysupermarket Group
Moneysupermarket Group