Slide 1: Results presentation
Results presentation For the six months ended 30 September 2023 Chris Clark David Ward Dev Dhiman CEO CFO CEO Designate
Slide 2: Disclaimer
Disclaimer Restricted distribution Forward-looking statements This presentation is not for release, publication or distribution, in whole or in part, This document contains certain forward-looking statements, including statements directly or indirectly, in, into or from any jurisdiction where to do
Slide 3: CEO transition
CEO transition • Dev was announced as GBG’s CEO Designate on 8 November 2023, he will assume the role of CEO and join the Board on 30 January 2024 • Joined GBG in 2020 as Managing Director, Asia Pacific, a business that has consistently delivered year-on-year revenue growth • Dev has demonstrated ex
Slide 4: 1H24 review
1H24 review Chris Clark - CEO 1H24 Results presentation – November 2023 4
Slide 5: 1H24 at a glance
1H24 at a glance Excellent strategic progress Revenue and adjusted operating profit as previously announced Simplification & efficiency • Revenue £132.4m, +3.3% on a constant currency basis ex. crypto ‒ Good performance in Fraud and Location Innovation driving differentiation ‒ Stabilisation in Iden
Slide 6: Location
Location Validating accurate and reliable address data to ensure our customers can, with minimum friction, provide their products and services to the right people, in the right place Simplification Highlights & efficiency 1H24 revenue • Continuing strength via channel partners £36.6m 28% of Group •
Slide 7: Identity
Identity Building trusted relationships through document and data identity verification to prove an individual is who they say they are and good to do business with, which can help prevent crimes such as money laundering and identity fraud Simplification Highlights & efficiency 1H24 revenue • Innova
Slide 8: Fraud
Fraud Offering real-time protection and regulatory compliance protection against modern-day financial crimes, identifying and helping to prevent or pursue bad actors to avert crimes such as identity, application and transaction fraud Simplification Highlights & efficiency 1H24 revenue • Our fraud-pr
Slide 9: Financial review
Financial review David Ward - CFO 1H24 Results presentation – November 2023 9
Slide 10: Financial review
Financial review Revenue in-line with expectations; excellent progress on cost-saving initiatives £132.4m £10m £23.9m (£52.6m) (£104.8)m +1.8% Annualised run-rate Adjusted operating Operating loss Net debt as at Constant currency savings delivered, profit Impacted by non- 30 Sept 2023 revenue growth
Slide 11: Group income statement
Group income statement • 1.8% constant currency revenue growth; 3.3% on a constant currency 1H24 1H23 basis excluding revenues from cryptocurrency customers £m £m Growth • Gross profit margin reflects revenue mix and an increase in cloud costs Reported revenue 132.4 133.8 (1.1)% Cost of sales (40.8)
Slide 12: Cash flow statement
Cash flow statement 1H24 1H23 FY23 £m £m Variance £m • Strong year-to-date cash conversion of 102.0% (1H23: 57.5%), reflecting Adjusted EBITDA 25.2 29.7 (4.5) 63.1 historic levels, and we expect leverage to reduce to c. 1.30x by year-end Working capital 0.5 (12.4) 12.9 (20.8) • At 30 September 2023
Slide 13: 1H24 revenue bridge
1H24 revenue bridge Constant currency • Reported revenue decline 1.1% revenue growth 1.8% • Revenue growth on a constant currency basis 1.8% £(3.8)m • Constant currency growth 3.3% excluding the £(1.9)m £4.3m Constant year-on-year decline in cryptocurrency currency YoY decline in Underlying adjustme
Slide 14: A diversified revenue mix
A diversified revenue mix Delivering our solutions through a mix of commercial models with diversification across sectors and geographies Revenue by type Subscription-based revenue Transaction/consumption revenue Other revenue (e.g. services & hardware) 1H24 56% 38% 6% £132.4m £74.4m £50.5m £7.5m 54
Slide 15: Focusing on efficiency
Focusing on efficiency On-going initiatives with an annualised run-rate reduction in Opex of £10m already achieved Reconciliation of operating expenses Lower YoY adj. operating expenses 1H24 2H23 1H23 Reported operating expenses £144.1m £214.2m £99.3m £6.1m lower Amortisation of acquired intangibles
Slide 16: Summary and Outlook
Summary and Outlook Confidence in our FY24 Pleased with our first-half performance against the macroeconomic profit expectations backdrop; excellent strategic progress driving GBG’s differentiation • While overall revenue growth has remained impacted by the macro; our customer retention is high, the
Slide 17: Q&A
Q&A
Slide 18: Appendices
Appendices
Slide 19: Group balance sheet
Group balance sheet 1H24 FY23 As at 30 Sept As at 31 March Debt leverage and borrowing £m £m Variance Net cash / 30 Sept 23 31 Mar 23 30 Sept 22 debt analysis £m £m £m Tangible assets 5.2 5.2 - Cash 19.2 21.6 15.7 Goodwill & intangible assets 785.6 854.3 (68.7) Debt (124.0) (127.5) (148.3) Deferred
Slide 20: Revenue breakdown
Revenue breakdown GBG generates high levels of repeatable revenue 1H24 1H23 Reported Constant change % currency £m % of Rev £m % of Rev change % Subscriptions: - Transactions / consumption-based 22.5 17% 22.4 17% 0.3% 1.6% - Term-based 51.9 39% 50.6 38% 2.6% 5.4% Total subscription-based revenue 74.
Slide 21: Contact
Contact David Ward CFO david.ward@gbgplc.com Richard Foster Investor Relations richard.foster@gbgplc.com