Moonpig Group Plc · LSE:MOON
Moonpig — Investor Day (October 2024)
105 slides from Moonpig's investor day presentation, Oct 16, 2024
Slide 1: A platform for compounding growth
A platform for compounding growth Capital markets event 2024 16 October 2024 Strictly Private and Confidential
Slide 2: Disclaimer
Disclaimer This presentation has been prepared solely for informational purposes at the Company’s Capital Markets Day on 16 October 2024 and not for any other purpose; it should not be relied upon in any other context and for any other purpose. The Company disclaims any responsibility or liability i
Slide 3: Agenda
Agenda 1. Group 2. Moonpig and Greetz 1 Group overview Nickyl Raithatha 1:30pm to 2:10pm 3. Experiences 4. New markets Q&A Nickyl Raithatha 2:10pm to 2:30pm 2 Market and customer Moonpig and Greetz Kristof Fahy 2:30pm to 2:50pm 3 Product range Moonpig and Greetz David Rimmer 2:50pm to 3:10pm Break 3
Slide 4: Digital-first leadership team
Digital-first leadership team Today’s presenters Nickyl Raithatha Andy MacKinnon Georgie Smallwood Kristof Fahy David Rimmer Chief Executive Officer Chief Financial Officer Chief Product & Technology Officer Chief Marketing Officer General Manager, Moonpig (Joined Jun 2018) (Joined Jan 2019) (Joined
Slide 5: Strategically positioned to capitalise on a huge opportunity
Strategically positioned to capitalise on a huge opportunity Technology development and A platform for the delivery of AI powered leveraging of sustained, compounding proprietary data directly double digit revenue growth driving revenue growth Resilient and improving Structurally high profitability
Slide 6: Group overview
6 Group overview Nickyl Raithatha Chief Executive Officer
Slide 7: Moonpig Group is the leading online platform for card giving and gifting
Overview - Group Moonpig Group is the leading online platform for card giving and gifting Four iconic £341m 23.2% FY24 Group revenue % of total Revenue FY19-24 revenue market-leading CAGR 1 UK Moonpig 82% 71% brands £96m £58m Adjusted EBITDA 2 Adjusted PBT 2 12.2m 48.8m Greetz Group active Group car
Slide 8: Our vision is to become the ultimate gifting companion
Overview - Group Our vision is to become the ultimate gifting companion Leveraging data and technology to make the gifting experience effortless Four key Building our brands such that receiving our product always means more pillars for delivering our Ensuring the perfect range of cards and gifts for
Slide 9: Twenty-five years of online market leadership, growth and innovation
Overview - Group Twenty-five years of online market leadership, growth and innovation Group revenue £m Australia Acquired launch2 Buyagift and Red Letter Days 365m US launch 2 Moonpig for Greeting cards sold 1 Work IPO Ireland launch £341m 53m £304m 1 Gifts sold #1 UK iOS app Video / audio Digital M
Slide 10: Overview - Moonpig and Greetz
Overview - Moonpig and Greetz Overview - Moonpig and Greetz 10
Slide 11: Our card-first businesses leverage data to drive loyalty and gift upsell
Overview - Moonpig and Greetz Our card-first businesses leverage data to drive loyalty and gift upsell Card-first Gift attach Profitable customer acquisition The most relevant gifting platform with high loyalty with minimal acquisition cost ✔ 51 million card buyers in UK and NL1 ✔ 63% of cards given
Slide 12: Our model is underpinned by a data-driven growth flywheel
Overview - Moonpig and Greetz Our model is underpinned by a data-driven growth flywheel More Smarter data 01 algorithms Card-first Capture of relevant customer Virtuous acquisition 01 predictive data around gifting intent cycle driving Personalised experience strong Customer 02 and contextual 04 02
Slide 13: We have resilient, sticky cohorts that have been uplifted post Covid
Overview - Moonpig and Greetz We have resilient, sticky cohorts that have been uplifted post Covid Very consistent cohort behaviour These same cohorts are now Across all cohorts, customers are pre-Covid performing stronger than pre-Covid returning 20% more often vs. pre-Covid Moonpig annual cohorts
Slide 14: We have increased retention for cohorts acquired during and since Covid
Overview - Moonpig and Greetz We have increased retention for cohorts acquired during and since Covid Retention for new customer cohorts This step-change is consistent across post-Covid is stronger than before new customer cohorts for all recent years Cohort acquired in FY16 and FY22 - revenue 1 Moo
Slide 15: Our market is large, growing and moving online at pace
Overview - Moonpig and Greetz Our market is large, growing and moving online at pace … The single cards market is large and growing … … with a long-term structural shift to online UK/NL cards market 1 UK/NL online penetration - single cards 1 Sales value (£m) Sales value % total +10.9% +9.9% +5%pts
Slide 16: … with the online shift driven by our superior proposition
Overview - Moonpig and Greetz … with the online shift driven by our superior proposition Superior for convenience Superior for personalisation Offline Offline Personalised with >40,000 card Reminders None Range Limited suggestions design SKUs Limited by operating Relevance and Speed to market Conven
Slide 17: We have clear online market leadership that continues to extend
Overview - Moonpig and Greetz We have clear online market leadership that continues to extend … Moonpig has consistently gained online market share Greetz has a c.65% share of online card revenue in NL Market share of UK online sales - single cards 1,2 Market share of Netherlands major online operat
Slide 18: … built on self-reinforcing competitive advantages
Overview - Moonpig and Greetz … with that leadership built on self-reinforcing competitive advantages Brand power Scale Rich data pools World class platform Clear market leader, 49m² cards and gifts Proprietary algorithms Proprietary technology with two category defining Over 500k orders a day optim
Slide 19: We have three compounding revenue growth levers
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value We have three compounding revenue growth levers and a long runway of growth in our existing core markets Moonpig and Greetz FY19 - FY24 growth Average 3 order value 17.3% 3.6x 63% occasions where a FY24 attach rate 4
Slide 20: We expect these levers to drive double digit medium term revenue growth
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value We expect these levers to drive double digit medium term revenue growth Moonpig and Greetz - target medium term revenue growth drivers 3% to 5% growth Double digit % growth 3% to 4% growth 2% to 3% growth Active Avera
Slide 21: Active customer growth driven through acquisition and retention
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value 1 Active customer growth driven through new customer acquisition and improving retention of existing customers New customer acquisition + Improving customer retention 89% +121% Revenue YoY traffic from existing from T
Slide 22: Reminders are our primary retention lever
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value 1 Reminders are our primary retention lever, now driving 39% of orders 3 We continue to expand our database of Reminders drive an increasing customer occasion reminders proportion of customer orders • 88% of cards sal
Slide 23: Frequency growth driven primarily through data and technology
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value 2 Frequency growth driven primarily through data and technology Drive customers to our sites and apps + Drive site conversion rates <12m >70 Experiments Payback on in FY24 on new conversion customers rate 2 acquired 1
Slide 24: Plus is our flagship programme for driving frequency
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value 2 Plus is our flagship programme for driving frequency Strong subscriber growth which has All new subscriptions delivered through Subscribers are saving money and continued following first renewals on-site messaging a
Slide 25: Average order value growth driven by gift attach, pricing and upsell
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value 3 Average order value growth driven by gift attach, pricing and upsell Gift attach rate + Pricing + Upsell 17.3% 10.5% +12.8% Gift attach Reduction in FY24 growth rate 1 non-personalised in upsell 3 promotions 2 Impro
Slide 26: Long-term roadmap to drive AOV through gift attach
Overview - Moonpig and Greetz 1 Active customers 2 Frequency 3 Average order value 3 We have a compelling long-term roadmap to drive AOV through gift attach More intelligent algorithms Adding trusted brands Grow digital gifting 34 1.2%pts +86% Increase in kids and baby attach rate Year-on-year growt
Slide 27: Overview - Experiences Division
Overview - Experiences Division Overview - Experiences Division 27
Slide 28: We acquired Red Letter Days and Buyagift in 2022
Overview - Experiences Division 1 Experience brands 2 Digital gifting on Moonpig We acquired Red Letter Days and Buyagift in 2022 with two distinct pillars to our vision of becoming the leading Digital Gifting Platform A full transformation Digital gifting synergies unlocked of our Experiences Divis
Slide 29: Substantial long-term growth opportunity for Experiences brands
Overview - Experiences Division 1 Experience brands 2 Digital gifting on Moonpig Substantial long-term growth opportunity for our Experiences brands, despite cyclical headwinds Historical double digit revenue growth We are outperforming sales in the UK addressable market of £6.5bn 1 for experience g
Slide 30: Our transformation of Experiences is driving outperformance
Overview - Experiences Division 1 Experience brands 2 Digital gifting on Moonpig Our transformation of Experiences is driving outperformance of current market trends and positioning us for improved consumer demand At the time of acquisition, we established three pillars for our Experiences transform
Slide 31: Experiences strategy to drive double digit medium-term revenue growth
Overview - Experiences Division 1 Experience brands 2 Digital gifting on Moonpig We expect strategy execution at Experiences to drive double digit medium-term revenue growth once cyclical headwinds subside Experiences - drivers of medium term target for double digit revenue growth + + + Orders on th
Slide 32: Digital gifting on the Moonpig platform is still nascent
Overview - Experiences Division 1 Experience brands 2 Digital gifting on Moonpig Digital gifting on the Moonpig platform is still nascent, but on an exciting growth trajectory >£10m Expected run rate sales within 18 months 1 Digital retail gift £2.3m 6 card launch FY2 Gift experience sales in FY24 1
Slide 33: Overview - new markets
Overview - new markets Overview - new markets 33
Slide 34: Leveraging our core platform to build growth in new markets
Overview - new markets 1 New markets 2 Moonpig for Work We are leveraging our core platform to build medium term growth opportunities in new markets, with low capital investment 1 2 Expansion into Expansion into the corporate segment Key operating principles ensure new international markets 1 throug
Slide 35: Focus on reaching profitable unit economics in new markets
Overview - new markets 1 New markets 2 Moonpig for Work Our strategy in all new markets is to focus on reaching profitable unit economics, to create a clear path for profitable growth Our strategy is focused on achieving sustainable customer This gives us a path to profitable growth acquisition cost
Slide 36: With Ireland turning profitable, new markets are self-funding
Overview - new markets 1 New markets 2 Moonpig for Work With Ireland turning profitable, our new international markets are now self-funding in aggregate Discovery Finding product-market fit Profitable growth Ireland (Launched H2 FY22 2) Australia (Launched H2 FY23 2) USA (Launched H2 FY24 2) TAM: £4
Slide 37: New markets leverage our group platform fully
Overview - new markets 1 New markets 2 Moonpig for Work New markets leverage our group platform fully, adding localisation only where needed 90% leveraging our Existing Group Group marketing Group gifting Global design Technology central platform active customers assets platform platform platform an
Slide 38: Introducing Moonpig for Work
Overview - new markets 1 New markets 2 Moonpig for Work Introducing Moonpig for Work Moonpig for Work video 38
Slide 39: Next 18 months: launch Moonpig for Work and experiment
Overview - new markets 1 New markets 2 Moonpig for Work Over the next 18 months, we will launch Moonpig for Work and experiment for profitable ways to scale Today Next 18 months Medium term Finalising discovery Finding product-market fit Profitable growth Live trial with a Moving from controlled wai
Slide 40: Group overview - key takeaways
Overview Group overview - key takeaways A business demonstrating all of the characteristics of a platform, with 1 market leadership, strong customer retention and high profitability Loyal customer cohorts at Moonpig and Greetz, which have 2 strengthened over the last five years We expect Moonpig and
Slide 41: Q&A
41 Q&A Nickyl Raithatha Chief Executive Officer
Slide 42: Market and customer
42 Market and customer Leading the secular shift to online Kristof Fahy Chief Marketing Officer
Slide 43: A large, underpenetrated market that is moving online at pace
Customer and market A large, underpenetrated market that is moving online at pace A £58bn UK/NL/IE gifting market 1,2 Only 6% online penetration of single greeting cards by volume Cards UK single card market Online penetration 1 £2bn % 2019 2023 Card-attached gifting 3 Volume penetration 4.4% 6.0% £
Slide 44: The cards market is growing and made up of repeating occasions
Customer and market The cards market is growing and made up of repeating occasions … The single cards market in Netherlands 88% of cards sales are linked to a calendar date, creating a and UK is large and growing compelling opportunity for retention through reminders UK cards market 1 NL cards marke
Slide 45: Greeting cards are resilient to economic downturn
Customer and market … and greeting cards are resilient to economic downturn Cards are amongst the consumer categories most resilient to economic downturn Resilience to economic downturn by category 1,2 % respondents selecting bottom three 60% 53% 52% 43% 43% 42% 41% 40% 37% 36% 31% 31% 1. Source: OC
Slide 46: Structural shift to online supported by demographic trends
Customer and market The structural shift to online is supported by demographic trends All age groups continue to buy cards … … and expect to buy more cards online in future Number of cards bought by age 1 Expected future online penetration of current online users 1 Cards per capita, 2023 % total +12
Slide 47: Strategic pillars align with key drivers for buying online
Customer and market Moonpig and Greetz’s strategic pillars align with the key drivers for buying online: personalisation, choice and convenience Drivers of online card purchase Respondents % respondents 1 agree that online is better than in-store 77% 57% Personalisation, choice and 46% convenience a
Slide 48: Our brands have clear online leadership of the market
Customer and market Our brands have clear online leadership of the market Structural shift to online in the cards market … … with Moonpig extending its significant market leadership Online penetration - single cards, 2019, 2023, 2027F1 Market share of UK/NL online sales - single cards 1,2 % % total
Slide 49: A well-distributed customer base covering all demographics
Customer and market We have a well-distributed customer base, covering all demographics Moonpig UK active customers - segmentation % of total 1 Age Gender Region 2 Urbanity 3 Personal income4 1. Source: Mosaic. Based on data for Moonpig UK only. 2. Region of customer home postal code address 3. Urba
Slide 50: Scope for online card volumes to grow fivefold
Customer and market 1 Acquisition and retention 2 Frequency There is scope for online card volumes to grow fivefold … Opportunity driven by potential for a ~60% increase in buyers and a ~220% increase in frequency OC&C expectation for future online penetration of the UK single cards market 1 % total
Slide 51: Two core pillars of our marketing strategy
Customer and market 1 Acquisition and retention 2 Frequency … which we address through the two core pillars of our marketing strategy Growing active customers through Increasing frequency 1 new customer acquisition and retention + 2 for existing customers Building incredible brands Driving frequency
Slide 52: Acquisition: brand campaigns and performance marketing
Customer and market 1 Acquisition and retention 2 Frequency Acquisition is driven by a combination of brand campaigns and 1 performance marketing Digitally-led brand campaigns AI powered performance marketing to build awareness and consideration to harvest and convert intent 93% <12 months 92% payba
Slide 53: Low reliance on paid acquisition, with 87% direct traffic
Customer and market 1 Acquisition and retention 2 Frequency 1 We have low reliance on paid acquisition, with 87% direct traffic Leveraging brand 87% of traffic to our website and apps Building a strong presence and awareness through brand or direct social media presence Brand search index - Moonpig
Slide 54: Personalisation and reminders drive customer retention
Customer and market 1 Acquisition and retention 2 Frequency 1 Personalisation and reminders drive customer retention Personalised Occasion Intelligent Reactivation welcome journeys reminders reminders and win-back 10% increase in 60-day 39% orders placed within 7 days Targeting inactive customers wi
Slide 55: Multiple technology initiatives driving growth in frequency
Customer and market 1 Acquisition and retention 2 Frequency 2 Multiple technology initiatives driving growth in frequency Driving CRM opt-ins Plus subscriptions Download the app AI powered next best action 6 Leveraging technology to improve 700k 2 active subscribers App orders share at 44% on Person
Slide 56: Customer and market - key takeaways
Customer and market Customer and market - key takeaways Moonpig and Greetz are the clear online leaders in a growing cards 1 market that is large and moving online 2 There is opportunity to grow online market volumes fivefold Our marketing platform grows active customers by driving 3 acquisition and
Slide 57: Product range
57 Product range A platform to deliver the world's best card and gifting solution David Rimmer General Manager, Moonpig
Slide 58: Platform designed for the perfect card and gift for every occasion
Product range 1 Cards 2 Attached gifting Our platform is designed to ensure we have the perfect card and gift for every customer on every occasion 1 A card platform to drive frequency + 2 A gift platform to drive attach rate >40,000 >10m 17.3% 86% Card SKUs 1 Card creative features used 2 Gift attac
Slide 59: Proprietary design platform sources greeting cards globally at pace
Product range 1 Cards 2 Attached gifting Our proprietary design platform enables us to source greeting cards globally at pace, and give multiple personalisation options to customers Internal Card 7 >40k designers SKUs Proprietary design platform Independent Curation of designs uploaded by Exclusive
Slide 60: Sourcing the most compelling card designs in under 24 hours
Product range 1 Cards 2 Attached gifting … enabling us to rapidly source the most compelling global cards designs in under 24 hours … Internal Independent Retail and licensed Iconic designers artists partners licensed brands Ensuring the perfect card for every occasion is key to capturing all card p
Slide 61: Innovative options to make cards unique and meaningful
Product range 1 Cards 2 Attached gifting … and giving customers multiple innovative options to make cards unique and meaningful Video and audio Flexible photos Stickers Digital gifting messages inside the card 5.8m 0.5m 3.7m +86% cards with cards with video and audio cards with flexible Year-on-year
Slide 62: Emerging AI technologies unlock future creative features
Product range 1 Cards 2 Attached gifting Emerging AI technologies will unlock an exciting roadmap of future creative features for our customers Suggested messages AI-generated stickers and handwriting Face swap and AI-generated cards Used on over 600,000 cards 1 Coming soon Coming next Differentiate
Slide 63: Introducing personal handwriting
Product range 1 Cards 2 Attached gifting Introducing personal handwriting Personal handwriting video 63
Slide 64: Proprietary gifting platform curated to drive gift attach rate
Product range 1 Greeting cards 2 Attached gifting Our proprietary gifting platform is designed so that we can curate our range to drive long term growth in gift attach rate Attached gifting is based on Our bespoke gifting platform Our platform is built to operate multiple supply recommendation not b
Slide 65: We source directly from brands for high-volume product lines
Product range 1 Greeting cards 2 Attached gifting We source directly from brands for high-volume product lines Range built around each Direct buying from brands Trusted brands that customers love recipient + occasion “mission” We source gifts on a wholesale basis for fast-moving lines with low inven
Slide 66: Capability to partner with suppliers on consignment
Product range 1 Greeting cards 2 Attached gifting We have now built capability to partner with suppliers on consignment Access partners’ category Future potential merchandising expertise category partnerships including knowledge of trends and seasonal relevance The category range can be flexed at Ho
Slide 67: New digital gifting capabilities unlock range expansion
Product range 1 Greeting cards 2 Attached gifting Our new digital gifting capabilities unlock significant opportunities for expanding the range within experiences and beyond Driving growth in digital gift experiences Broaden proposition into new categories Gift cards live in US, coming soon to UK Ju
Slide 68: Card design and attached gifting platforms together
Product range 1 Greeting cards 2 Attached gifting Together, our card design and attached gifting platforms enable customers to create the ultimate gifting solution 68
Slide 69: Product range - key takeaways
Product range Product range - key takeaways Our platform enables Moonpig and Greetz to source the best card 1 designs and gifting brands from a broad range of partners Our technology is enabling a rapidly-increasing number of our 2 customers to personalise their cards in innovative ways 3 We now hav
Slide 70: Technology
70 Technology Leveraging data to drive compound revenue growth Georgie Smallwood Chief Product and Technology Officer
Slide 71: Data and technology organisation is now delivering growth at pace
Technology Our data and technology organisation is now delivering growth at pace Increased focus Accelerating Replatforming on growth growth • We moved to a unified technology platform for Moonpig and Greetz technology experiments 1 Moonpig and Greetz in Number 162 late 2022 • The majority of our te
Slide 72: Growth driven by experiments on customer experience and algorithms
Technology 1 User experience 2 Leveraging data Growth is driven by a combination of experiments on customer experience and upgrades to underlying algorithms 1 Improvements to user experience + 2 Leveraging data to enhance algorithms More experiments Faster learning Higher success rate More data More
Slide 73: Over 70 experiments in FY24 aimed at raising conversion rate
Technology 1 User experience 2 Leveraging data 1 Over 70 experiments 1 in FY24 aimed at removing friction to raise conversion rate One-click sign-on with Apple and Google Saving draft cards Before After Before After Add password box +2.5% +1.1% Step conversion rate Increase in user on the sign-in pa
Slide 74: Over 30 experiments in FY24 aimed at increasing AOV
Technology 1 User experience 2 Leveraging data 1 Over 30 experiments in FY24 aimed increasing AOV 1 New ways to showcase Introducing emotive copy add-on options for gifts to encourage upsell Before After Before After +54.0% +12.8% Growth in FY24 growth in add-ons to gifts 2 card upsell 3 1. Moonpig
Slide 75: Over 30 feature upgrades in FY24 to increase customer satisfaction
Technology 1 User experience 2 Leveraging data 1 Over 30 feature upgrades in FY24 to increase customer satisfaction 1 Address accuracy suggestions “Date first” checkout flow Before After Before After 74.9% 6.7%pts Amendment rate for Increase in incorrect addresses 2 advance ordering 3 1. Moonpig and
Slide 76: We use AI to leverage proprietary data
Technology 1 User experience 2 Leveraging data We use AI to leverage our proprietary data to drive conversion, 2 retention and gift attach rate 40.8 million cards sold 1 Unique access to customer intent Personalised card recommendations • Reminders data leveraged to drive customised recommendations
Slide 77: Online experience personalised at every touchpoint
Technology 1 User experience 2 Leveraging data 2 The online experience is personalised at every touchpoint to drive conversion and attach rate Dynamic content Personalised reminders Targeted promotions Introducing next best action across the journey Driving conversion rate across Driving gift attach
Slide 78: New AI technologies unlock step-change in search capabilities
Technology 1 User experience 2 Leveraging data New AI technologies have unlocked a step-change in search capabilities 2 that we expect will drive a long runway of conversion rate upside Before AI - search returns 1 card design After enhancing with AI - search returns 440 card designs Employee Cheerf
Slide 79: New datasets and technologies in gift recommendation algorithms
Technology 1 User experience 2 Leveraging data 2 Adding new datasets and technologies to our gift recommendation algorithms will continue to drive gift attach rate in the medium term Recommendations inferred from Recommendations based on the Recommendations based on customer browsing behaviour choic
Slide 80: Live inference is the latest upgrade to gift recommendations
Technology 1 User experience 2 Leveraging data and AI 2 Live inference is the latest technology upgrade to gift recommendations and dramatically increases our understanding of customer intent We use AI to interpret message sentiment in real time … … to inform our gifting recommendations 80
Slide 81: Technology - key takeaways
Technology Technology - key takeaways 1 Technology development is now directly driving revenue growth Rapid experimentation is delivering consistent upgrades to 2 the customer experience, driving conversion, AOV, and NPS Pairing our customer data with intelligent capabilities delivers 3 a personalis
Slide 82: Financials
82 Financials A standout combination of revenue growth, profitability and cash generation Andy MacKinnon Chief Financial Officer
Slide 83: A platform for sustained, compounding double digit revenue growth
Financials A platform for the delivery of sustained, compounding double digit revenue growth Top line growth High profit margins Robust cash generation Resilient, sticky customer cohorts Structurally high Adjusted EBITDA margins Capex-light and inventory-light at Moonpig and Greetz Strengthened cust
Slide 84: Resilient customer cohorts underpin revenue growth and profitability
Financials Our resilient and improved customer cohorts continue to underpin revenue growth and profitability Moonpig - revenue by customer cohort 1 £m Covid cohort acquisition 3 FY24 Existing customer revenue mix 2 FY20-FY21 281.7 89% 90% 234.7 223.1 241.3 FY19: 81% FY19: 77% 126.5 96.6 79.4 87.5 69
Slide 85: Remarkably sticky cohorts, which we have strengthened
Financials Remarkably sticky cohorts, which we have strengthened Customer cohorts demonstrated Cohorts have improved with Across the customer base, we have consistent revenue retention pre-Covid FY+1 retention rising to 58% seen a 20% uplift in orders per cohort Moonpig annual cohorts acquired to FY
Slide 86: We have improved all cohorts before, during and since Covid
Financials We have improved all cohorts acquired before, during and since Covid Pre-Covid cohorts have been Cohorts acquired during lockdown Recent cohorts exhibit higher permanently uplifted have been strengthened retention rates than pre-Covid Moonpig cohort acquired in FY181 Moonpig cohort acquir
Slide 87: A clear path to double digit medium-term revenue growth
Financials 1 Active customers 2 Frequency 3 Average order value We have a clear path to double digit medium-term revenue growth Moonpig and Greetz - expected medium term revenue growth drivers • Expected medium-term revenue growth driven through both new customer 3% to 5% acquisition and monetising
Slide 88: Growing base of 11.5m active customers
Financials 1 Active customers 2 Frequency 3 Average order value 1 Moonpig and Greetz have a growing base of 11.5m active customers 1 Revenue from new customers Active customers uplifted by Our active customer base is higher than pre-Covid approximately two thirds has returned to growth New customer
Slide 89: All our customers are placing 20% more orders per year
Financials 1 Active customers 2 Frequency 3 Average order value 2 All our customers are placing 20% more orders per year We have uplifted frequency by Reminders, subscriptions and app penetration one fifth across the last five years driving frequency growth Frequency - Moonpig and Greetz Number of o
Slide 90: Our customers are spending 25% more per order
Financials 1 Active customers 2 Frequency 3 Average order value 3 Our customers are spending 25% more per order Higher AOV driven by attach rate Strong attach rate growth to FY22, Continued AOV growth in H2 FY24, growth and card price changes stable thereafter through the downturn with no change in
Slide 91: Experiences positioned to return to double-digit revenue growth
Financials Experiences is positioned to return to double-digit revenue growth as gifting market headwinds moderate Expected return to double digit revenue We are executing against our transformation plan growth in the medium term Strategy execution continues with a continued focus on driving growth
Slide 92: Our business delivers structurally high profit margins
Financials Our business delivers structurally high profit margins … High Adjusted EBITDA margin rate Adjusted EBITDA margin rate % of total revenue • All of our strategic growth drivers are margin accretive and will deliver operating leverage Moonpig 23.2% 27.8% 30.1% • Growth in gift attachment is
Slide 93: Margins underpinned by platform characteristics of our model
Financials … which are underpinned by the platform characteristics of our model Profitable card-first Nine-tenths of revenue comes from Gift attachment at nil customer acquisition sticky, existing customer cohorts incremental marketing costs <12 months 89% £nil Payback period Revenue from Marketing
Slide 94: Technology investments managed within a clear ROI framework
Financials Technology investments are managed within a clear ROI framework … Capital expenditure guidance 1 % revenue Monthly assessment of ROI on capex for the unified Moonpig and Greetz technology platform 4% - 5% revenue Semi-autonomous Routine internal Objective and Key Result technology monitor
Slide 95: We have negative working capital with low inventory
Financials We have negative working capital with low inventory … Negative net working capital Low inventory and short lead times Net working capital Net inventory £m as at 30 April 2024, % FY24 revenue £m April 2024 % FY24 Key activity £m revenue driver £12.6m Efficiencies following opening £12.3m o
Slide 96: High, consistent and growing operating cash flow
Financials … resulting in high, consistent and growing operating cash flow Strong operating cash conversion Rapid deleveraging profile Operating cash flow and cash conversion 1 Net leverage 1 £m, % Adjusted EBITDA 1 £m, ratio of net debt to Adjusted EBITDA 1 H1 38% 3% 36% Net £209m £168m £167m £125m
Slide 97: Disciplined approach to capital allocation
Financials We follow a disciplined approach to capital allocation Capital allocation framework 1 Organic investment to drive growth • 1To maintain an efficient capital structure, our target is to operate with net leverage of approximately 1.0x over the medium term, with flexibility to move beyond th
Slide 98: New dividend policy and up to £25m share buybacks
Financials New dividend policy and up to £25m share buybacks • We are introducing a dividend policy that commits to maintaining robust dividend cover of 3x to 4x in the medium term. Progressive • We intend to pay a total FY25 dividend of £10m, growing thereafter in line with Adjusted EPS. dividend p
Slide 99: Our approach to shareholder value creation
Financials In summary, this is our approach to shareholder value creation Medium-term operating targets Revenue growth rate Adjusted EBITDA margin rate Adjusted EPS growth rate Double digit percentage 25% - 26% Mid teens percentage Strong operating cash flow and capital efficiency Inventory Capex Op
Slide 100: Key takeaways
Financials Key takeaways 1 Clear revenue growth drivers for each of the Group’s divisions At Moonpig and Greetz, revenue growth is underpinned by resilient 2 cohorts that we have strengthened across the last five years 3 Structurally high profit margins and robust cash generation 4 New dividend poli
Slide 101: Wrap-up
101 Wrap-up A platform for compounding growth Nickyl Raithatha Chief Executive Officer
Slide 102: Moonpig Group has all the characteristics of a platform business
Moonpig Group has all the characteristics of a platform business Market leadership that Moonpig brand market share 5.9x nearest competitor, continues to extend and leadership continues to extend Superior 89% of revenues from existing customers, with a loyal customer retention customer base and stren
Slide 103: Strategically positioned to capitalise on a huge opportunity
Strategically positioned to capitalise on a huge opportunity A platform for the delivery of sustained, compounding 1 double digit revenue growth Resilient and improving customer cohorts 2 that underpin revenue growth and profitability Leadership in a large and underpenetrated market 3 that is rapidl
Slide 104: Q&A Presentation team
moonpig group ple Q&A Presentation team 104
Slide 105: Moonpig group plc
MOONDPI group ple