Slide 1: Delivering on an Attractive Equity Story
DELIVERING ON AN ATTRACTIVE EQUITY STORY HALF YEAR RESULTS 27 SEPTEMBER 2022 BOBBY KALAR – CEO PAUL RAWSON – CFO 1
Slide 2: Introduction
INTRODUCTION Bobby Kalar Paul Rawson Chief Executive Officer Chief Financial Officer Bobby is founder and major shareholder of Yü A qualified Chartered Accountant with a degree in Group. With a Degree in Electrical and Electronic Accountancy, Paul joined Yü Group in 2018. He has Engineering and prev
Slide 3: The Agenda
THE AGENDA 1 2 3 4 EXECUTIVE ABOUT H1 2022 IN INTRODUCTION SUMMARY YÜ GROUP NUMBERS 5 6 7 8 DIGITAL BY SMART METERS DEFAULT CHANGE THE FINANCIAL OUTLOOK & STRATEGY GAME REVIEW SUMMARY www.yugroupplc.com 3
Slide 4: Executive Summary
EXECUTIVE SUMMARY Very strong, profitable growth in every financial KPI. Consistent and consecutive growth, year on year. “WE PERFORMED WELL Seamless customer experience, driven by our joined-up IN THE PANDEMIC, processes, people and platforms, means there are no questions on the strength of our bus
Slide 5: The Yü Group
THE YÜ GROUP GENERATING MULTIPLE STRONG REVENUE STREAMS Est 2016 Est 2018 Est 2022 Est 2022 Est 2022 PROFITABLE REVENUE REVENUE GENERATING, PROFIT CONTRIBUTING SEGMENTS www.yugroupplc.com 5
Slide 6: H1 2022 in Numbers
H1 2022 IN NUMBERS BIGGER, BETTER, FASTER, STRONGER H1 2021: H1 2021: H1 2021: BIGGER £66m £9.6m 20.8K (High growth) Revenue, up 96% H1 2020: Average monthly H1 2020: Meter points H1 2020: £46m bookings £6.2m 9.8K H1 2021: H1 2021: H1 2021: BETTER £0.5m £11.5m 5p (More profitable) Adjusted EBITDA H1
Slide 7: Accelerating Growth & Profit
ACCELERATING GROWTH & PROFIT Continued growth in Increased number of Clear profit contracted book uncontracted improvement Forward contracted revenue at 31 Aug 22 for customers Improved adjusted EBITDA to £2.7m, FY23 already at £119m (prior year: £91m) vs. £1.7m for FY 21 Some customers delaying dec
Slide 8: Smart Meters Change the Game
SMART METERS CHANGE THE GAME TARGETING NEW MARKET SEGMENTS The integration of our own metering business creates multiple opportunities to target new market segments, reduce debt risk and improve customer experience In house engineers give confidence of install Customers have better control of their
Slide 9: Financial Review
GROUP PLC FINANCIAL REVIEW
Slide 10: Financial Overview
FINANCIAL OVERVIEW Strong revenue growth, up 96% on H121 and H1 H1 FY already 83% of FY 21. £’m 2022 2021 2021 Revenue 129.2 65.8 155.4 Clear trajectory in profitability, with adjusted EBITDA increased to 2.1% of revenue (FY21: 1.3%) Adjusted EBITDA1 2.7 0.5 1.7 Depreciation (0.6) (0.4) (0.7) Non-re
Slide 11: Strong Cash Focus
STRONG CASH FOCUS GROWTH EBITDA CASH BIGGER BETTER FASTER STRONGER Subscription Net Customer Leverage Cash focus Revenue Model Contribution Overheads Cash & OCR1 H122 Cash Evolution Strong H122 cash generation, with £10.3m operational cash inflow: £’m & Days £’m • After Q122 £1.4m Covid-19 VAT defer
Slide 12: Scale and Profit
SCALE AND PROFIT GROWTH EBITDA CASH BIGGER BETTER FASTER STRONGER Subscription Net Customer Leverage Cash focus Revenue Model Contribution Overheads Revenue Gross Margin and NCC1 £129.2m revenue delivered in H122 (+96% on H121 and +44% on H221): £’m and 6-month growth % £’m and % of revenue • £104.3
Slide 13: Proven Profit Trajectory
PROVEN PROFIT TRAJECTORY GROWTH EBITDA CASH BIGGER BETTER FASTER STRONGER Subscription Net Customer Leverage Cash focus Revenue Model Contribution Overheads Overheads Adjusted EBITDA1 Significant overhead benefits from scale and high price environment, plus digital investment: % of revenue £’m and %
Slide 14: Outlook & Summary
GROUP PLC OUTLOOK & SUMMARY
Slide 15: A Clear Vision Target
A CLEAR VISION TARGET revenue targeted by 2023 via increased net customer contribution and reducing overheads Significant Well positioned. We Excited about the Our vision remains confidence in high remain strong and long term benefits the same - revenue growth based focused on delivering we will unl
Slide 16: Appendix
GROUP PLC APPENDIX
Slide 17: The Right Team at Yü
THE RIGHT TEAM AT YÜ Bobby Kalar Paul Rawson Robin John Glasgow Anthony Perkins Chief Executive Officer Chief Financial Officer Paynter-Bryant Independent Senior independent • Bobby is founder and major • Joined Yü Group on 3 Independent Non-Executive Director Non-Executive director shareholder of Y
Slide 18: Who Are We
WHO ARE WE Serving the B2B Rapid & Experienced team Robust supply market profitable growth & processes hedging policy (no price cap) OUR MISSION IS TO CREATE YÜTILITY SIMPLICITY FOR TIME STARVED B2B CUSTOMERS. www.yugroupplc.com 18
Slide 19: What We Do & Who We Serve
WHAT WE DO & WHO WE SERVE OUR PRODUCTS OUR CUSTOMERS Business Electricity, Gas Smart Meter Installations SMEs Multi-site, complex and Water and Services and New I&C companies Connections Sustainable Solutions - EV Charging Third-party intermediaries Other partners Green Electricity Carbon (TPIs) Neu
Slide 20: Operations
BUSINESS OVERVIEW SERVICE AND OPERATIONS OPERATIONS 184 Employees 26,000+ FORWARD meters commodity trading ROBUST Systems & processes Hedged position SERVICE No hidden costs. by default Trust Pilot score contracts, multi-utility Easy to deal with www.yugroupplc.com 20
Slide 21: Our Differentiation
OUR DIFFERENTIATION YÜTILITY SIMPLICITY CUSTOMER SERVICE INNOVATION/DIGITAL Unique multi-utility offer Three-ring pick up and easy to Partner portal for easy access plus deal with digital solutions to engage with future customers SUSTAINABLE SOLUTIONS OUR CUSTOMERS FLEXIBILITY Pure green energy supp
Slide 22: Disrupting the Energy Market
DISRUPTING THE ENERGY MARKET WHILST OUR COMPETITORS WRESTLE WITH LEGACY SYSTEMS OUR BRAND-NEW TECHNOLOGY STACK DELIVERS REAL VALUE TO OUR CUSTOMERS From click to Bespoke pricing Always one Reducing costs Real time contract in just without human step ahead of whilst improving analytics 27 seconds int
Slide 23: State of the Market
STATE OF THE MARKET COMMODITY MARKET MOVEMENTS, 2019 TO Q1 2022 Record high prices in commodity markets Evolution of forward gas price resulting in £0.3 billion Pence/Therm MtM position Winter 2022 Winter 2023 Winter 2024 Some smaller suppliers do 835 not have the agreements or balance sheet to hedg
Slide 24: Energy Price Guarantee Effect on Domestic vs Business
ENERGY PRICE GUARANTEE EFFECT ON DOMESTIC VS BUSINESS DOMESTIC 5000 PRICE CAP ANNUAL AVERAGE HOUSEHOLD BILL (£) WHOLESALE Government price cap on domestic energy bills sets a total 4000 tariff which can be charged by the supplier to the retailer. COST 3000 DOMESTIC BILLS 2000 BUSINESS NO PRICE CAP 1
Slide 25: A Great Team at Yü
A GREAT TEAM AT YÜ 2022 SNAPSHOT, 6 MONTHS PERIOD (JAN/JUN) 2021: 2021: 2021: £66m 33% 73.9% Total Yü employees 2020: Female identifying 2020: Employee engagement 2020: £46m employees 30% 71% 2021: 2021: 2021: 22.3 1% 36 Length of service 2020: Absence 2020: Average colleague ages 2020: (months) 22.
Slide 26: Market Opportunity
MARKET OPPORTUNITY HUGE OPPORTUNITY FOR GROWTH IN A MARKET OF 3.5M BUSINESS ENERGY METERS Competitor Landscape Total UK market B2B supply market is more complex than the domestic space with fewer suppliers Historical large Big Six positions 2.3m ~10 suppliers, typically Large Suppliers 1% £800m in r
Slide 27: Our Strategic Priorities
OUR STRATEGIC PRIORITIES BIGGER BETTER FASTER STRONGER Subscription Revenue Model Net Customer Contribution Leverage Overheads Cash focus Targeting a huge UK Efficient customer Committed Consistent growth market experience sustainability strategy Maintain and retain Increasing customer Hedging strat
Slide 28: Supporting Our Clients Net Zero Ambitions
SUPPORTING OUR CLIENTS NET ZERO AMBITIONS Proud to support a world going green with a growing number of customers who want to make cleaner, greener business choices. Launched our certified Pure Green Energy Plan in 2020, and our Carbon Neutral Gas plan in 2021 Provide solutions for energy efficiency
Slide 29: Balance Sheet & Cashflow
BALANCE SHEET & CASHFLOW 30 30 30 JUNE 30 JUNE 31 DEC 31 DEC CASHFLOW STATEMENT BALANCE SHEET EXTRACTS JUNE JUNE 2022 2021 2021 2021 2022 2021 £’m £’m £’m £’m £’m £’m Adjusted EBITDA1 2.7 0.5 1.7 Tangible & intangible fixed assets 6.3 4.3 5.3 Inflow / (Outflow) from… Deferred tax 4.9 4.6 5.9 Trade &
Slide 30: Disclaimer
DISCLAIMER • This presentation is designed to provide information about YU Group PLC and its business and operations. It is intended as general information only and is not to be relied upon for any particular purpose. In particular, no information contained in this presentation constitutes, or shall
Slide 31: Investor Enquiries
Investor Enquiries Broker Enquiries Media IR@YuGroupPlc.com YuGroup@Liberum.com YuGroup@TulchanGroup.com www.yugroupplc.com 31