Slide 1: Preliminary results
Preliminary results 16 February 2023
Slide 2: Peter Duffy, Chief Executive Officer
Peter Duffy Chief Executive Officer
Slide 3: Good strategic progress and strong performance
Good strategic progress and strong performance Strong performance despite market headwinds • Revenue £388m (+22%) • EBITDA returned to growth £116m (+15%) Tech-led savings platform results emerging • Centralised data in Google Cloud Platform • Market leading PPC, SEO and CRM tools • Largest channels
Slide 4: Insurance: Expect robust switching in 23 - provider competition and inflation
Insurance: Expect robust switching in 23 - provider competition and inflation Switching trends improved as year progressed Premiums increased throughout the year Car and home insurance switching volume (market) - % change vs LY PCW car and home insurance premiums - YoY% change 30 -1% 0% -4% 20 -8% 1
Slide 5: Home Services: Energy return not expected in 23; Home Comms resilient
Home Services: Energy return not expected in 23; Home Comms resilient Higher number of searches for energy price comparison No switchable energy tariffs available since October 21 Energy Price Comparison (Generic terms) – Google searches(1) £4,000 Energy price cap Energy price cap forecast (2) +30%
Slide 6: Money: Borrowing demand back, conversion softened in Q4 with higher rates
Money: Borrowing demand back, conversion softened in Q4 with higher rates Borrowing back to historical levels Softer borrowing conversion in Q4 Avg. monthly change in consumer net credit (£bn) (1) End-to-end conversion - Credit cards (visitor to sale)(2) 1.3 1.1 1.2 0.3 -1.4 2018 2019 2020 2021 2022
Slide 7: Scilla Grimble, Chief Financial Officer
Scilla Grimble Chief Financial Officer
Slide 8: Financial summary
Financial summary Helping households save money £388m £116m 12.7p Revenue Adjusted EBITDA Basic EPS 22% 15% 30% 13% £104m 11.71p Reinvestment rate Operating cashflow Dividend per share -1pt 59% unchanged 8
Slide 9: Revenue up 22% driven by Money and travel channels
Revenue up 22% driven by Money and travel channels Revenue • Insurance up 8%; strong rebound in travel, market- wide lower switching in car and home - trends £317m £388m improved during the year £11m £58m • Exceptional Money performance, double-digit £15m growth in all channels £4m £40m • Home Servi
Slide 10: Gross margin driven by mix
Gross margin driven by mix Gross margin 2022: 67.7% Gross margin 2021: 70.4% • Full year of lower margin Quidco Channel mix - (c.450 bps impact in 2022) Money known performance • Mix into higher margin banking • Some offset from loss of low -c.350 bps margin B2B contract (July 2021) +c.50 bps • Bene
Slide 11: Costs increase driven by marketing and acquired businesses
Costs increase driven by marketing and acquired businesses • Distribution costs up £10m Operating cost base – Planned support of MoneySuperSeven campaign – Invested into widening marketing initiatives in Travel £150m £174m and Quidco; early delivery of ad campaigns. Both drove £11m c. £4m £8m • Admi
Slide 12: Strong levels of cash generation
Strong levels of cash generation Net debt £37.2m at 31 December 2022 (2021: £59.6m) Includes £9.8m deferred consideration (2021: £14.6m) Operating cash flow £104.4m Includes £4.8m Quidco deferred consideration £4.7m £2.2m £115.5m (£18.0m) (£5.3m) (£11.6m) (£7.1m) £80.4m (£62.8m) £17.6m Adjusted Work
Slide 13: Capital allocation framework remains unchanged
Capital allocation framework remains unchanged Organic Ordinary Enhanced growth dividends Acquisitions distributions 13
Slide 14: Outlook and recent trading
Outlook and recent trading Confident of meeting full year market expectations • Trends seen in Insurance and Money at end of 2022 continuing into Q1 • Energy switching not expected to return in 2023 • Mid single-digit percentage increase in operating costs (excluding D&A) 14
Slide 15: Peter Duffy, Chief Executive Officer
Peter Duffy Chief Executive Officer
Slide 16: Transition to a tech-led savings platform supporting strong brands
Transition to a tech-led savings platform supporting strong brands r ~40 B2B partners Tech and Data Led Savings Platform Centralised data Comparison, tenancy Digital marketing and cashback services Holistic customer view Build once and deploy Paid search (SA360) across brands Shared across business
Slide 17: Helping households save money
Helping households save money Efficient Retain Expanding acquisition and grow our offer ✓ Benefits from proprietary ✓ Industry-leading CRM tool ✓ Travel brands benefit from data and new PPC platform ✓ ‘Dialogue’ will drive Customer joint capabilitiess and reach ✓ MoneySuperSeven campaign Lifetime Va
Slide 18: Reinvigorating MoneySuperMarket
Strong brands Reinvigorating MoneySuperMarket Successful New customer Market leading tools MoneySuperSeven campaign proposition and first party data Resonating well with Pay the difference and £20 MSM Ranks in top 2 organic search consumers if found cheaper results for most channels Top 5% UK ads Fi
Slide 19: MSE traffic up as it continues to provide trusted advice
Strong brands MSE traffic up as it continues to provide trusted advice Supporting consumers through difficult times • Valuable content and guides • New car insurance Compare+ comparison tool • Campaigns to prevent scam advertising Trusted brand • Most recommended brand by YouGov • Quadrupled social
Slide 20: Integrating and strengthening Quidco and ITG
Strong brands Integrating and strengthening Quidco and ITG Quidco compare powered by Group for Improved offer sharing products and Home Services, travel, car and pet insurance capabilities Website and app data in Group Optimised PPC and strengthened marketing Google Cloud platform capabilities Conso
Slide 21: Data as the foundation for execution and innovation
Tech and data led savings platform Data as the foundation for execution and innovation Users Data centralised in a single location • Broke traditional brand and vertical silos CRM PPC • Holistic view of users • Consistency across business functions Automated, agile data operations • Available to use
Slide 22: Leveraging the platform – comparison services
Tech and data led savings platform Leveraging the platform – comparison services Energy Home comms Car Insurance Money More channels to come Powering comparison services from group brands to third parties 22
Slide 23: Making it easier to switch with simpler experience for returning users
Innovating for users Making it easier to switch with simpler experience for returning users User centric question sets • Single user profile shared across channels • Increasingly richer data with more enquiries Simpler journeys and improved cross-sell • Faster journey from start of enquiry to result
Slide 24: Extending our range of propositions for providers
Innovating for providers Extending our range of propositions for providers Customers Tenancy advertising Data rich propositions Historical Decision Tech strength Better, personalised quotes Extended to new channels (car, home, pet and life insurance) Increased Rich & Real-time data reach & real-time
Slide 25: Summary
Summary Strong brands running on an efficient platform… • Centralised data for analytical and operational use • Best in class digital marketing platforms • Platformised Group capabilities … results that demonstrate the strength of the Group … • Consistent strategic delivery and execution • Strong tr
Slide 26: Appendix
Appendix | af ey
Slide 27: Strategic KPIs
Strategic KPIs Helping households save money £1.8bn 72 57% (2021: £1.6bn) (2021: 72) (2021: 61%) Estimated Group customer savings MSM & MSE net promoter score Group marketing margin 11.1m £16.40 21% (2021: 10.0m) (2021: £16.90) (2021: 19%) MSM active users MSM revenue per active user MSM cross-chann
Slide 28: 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 • £1.8bn household savings delivered in 2022 • 11.1m active users in 2022 in MSM MoneySavingExpert • Consumer finance champion,
Slide 29: Adjusted cost base and marketing spend
Adjusted cost base and marketing spend Adjusted cost base Marketing spend and marketing margin 61% 57% £235m £287m £15m £123m £165m £43m £8m £19m £33m £34m £64m £21m £60m £26m £39m £7m D&A -21% Other -62% VAT & other admin 29% TV and radio 31% Staff costs 7% Cashback 430% £123m £165m M
Slide 30: Product engineering investment
Product engineering investment Total product engineering investment Reinvestment rate £44m £50m +14% +13% £40m £35m 2021 2022 £9m £10m 2021 2022 • £6m increase in product engineering driven by Quidco and Icelolly.com consolidation Product engineering capital investment Product engineering operating
Slide 31: Income Statement
Income Statement £million 2022 2021 Growth Revenue 387.6 316.7 22% Gross margin 67.7% 70.4% Adjusted EBITDA * 115.5 100.5 15% EBITDA margin 30% 32% Depreciation & software amortisation (15.2) (19.1) Adjusting items ** (11.3) (8.0) Operating profit 89.0 73.4 21% Change in fair value of financial inst
Slide 32: Income Statement
Income Statement £million 2022 2021 Growth Operating profit 89.0 73.4 21% Deal fees and associated costs - 3.6 Amortisation of acquisition related intangible assets 11.3 4.4 Amortisation of technology related intangible assets 10.4 14.6 Depreciation 4.8 4.5 Adjusted EBITDA 115.5 100.5 15% 32
Slide 33: 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 34: Segmental measure of adjusted EBITDA contribution
Segmental measure of adjusted EBITDA contribution £million FY 2022 FY 2021 Home Shared Home Shared Segment Insurance Money Services Travel Cashback costs Total Insurance Money Services Travel Cashback costs Total Revenue 172.0 103.3 39.8 14.9 57.6 - 387.6 158.7 75.2 68.1 4.1 10.6 - 316.7 Directly at
Slide 35: Moneysupermarket Group
Moneysupermarket Group