Mony Group Plc · LSE:MONY
Mony — Moneysupermarket Group — H1 2016 Earnings Presentation
34 slides from Mony's earnings presentation, Aug 3, 2016
Slide 1: Interim Results
Interim Results 3 August 2016 1
Slide 2: Matthew Price
Matthew Price 3 August 2016 Moneysupermarket a Group
Slide 3: Interim themes
Interim themes Headroom: • Headroom exists across all of our markets • Very low price comparison penetration within money and energy Delivering the plan: • Momentum returning to insurance • Marketing spend in-line with plan Macro economy: • Typically rising prices increases customers propensity to s
Slide 4: We continued to grow our diversified business
We continued to grow our diversified business Adjusted Revenue Operating EPS (adjusted) £158m 10% Profit 6% 7% 7.8p £54m Capital Interim Net Cash Investment Dividend £2M 8% £11m £12M £10m 2.75p Note: Net cash declined after final consideration for Moneysavingexpert of £20.6M in September 2015 3
Slide 5: Revenue growth converted to profit as planned
Revenue growth converted to profit as planned £Millions HY 2016 HY 2015 Growth Revenue 157.6 143.9 +10% Gross margin 76% 80% Adjusted EBITDA 59.7 56.0 +7% EBITDA margin % 38% 39% Depreciation & software amortisation (5.9) (5.2) Adjusted Operating Profit 53.8 50.8 +6% Adjusted Operating Profit margin
Slide 6: Strategic KPI performance
Strategic KPI performance Best Site Earn Customer Loyalty Preferred partner £279m Be the easiest way for £279m brand Be the destination £279m Be the best way for customers to find for users and customers providers to acquire providers’ products customers 24.3m (+0%*) 20m (+17%) 853 (+7%) Unique mont
Slide 7: Insurance restored to growth: + 6% growth Q2
Insurance restored to growth: + 6% growth Q2 HY 2016 HY 2015 HY Growth Revenues £Millions £M £M (%) Insurance 75.3 73.6 +2% Money 41.7 35.5 +18% Home Services 25.1 17.6 +43% MoneySuperMarket.com 142.1 126.7 +12% TravelSupermarket.com 11.1 13.7 -19% MoneySavingExpert.com 19.3 14.6 +32% Intra-group el
Slide 8: Insurance: Opportunity in most developed market
Insurance: Opportunity in most developed market Home, Motor and Travel Insurance CAGR 2011/12 – 2015/16 72 +4% MSM sales new / switching Volume of products / millions 26 +3% Online sales new / switching 22 -1% Total market size Online Competition Online includes three other material aggregators (Con
Slide 9: Continuing competitive intensity
Continuing competitive intensity Total TV & Radio spend by PCWs - 2012-16 (£Millions) • New platform gives stronger and flexible levers over time: £130 £123 £122 • Paid Search – can bid higher as site £122 £120 £116 £114 personalisation will convert better. £110 • Organic Search – allows fresher & £
Slide 10: Money: Removing barriers for consumers
Money: Removing barriers for consumers Cards & Loans CAGR 2011/12 – 2015/16 43 +15% MSM sales new / switching Volume of products / millions +17% Online sales new / switching 5.7 + 2% Total market size 22 M 3.1 Online Competition 1.3 Apart from Moneysupermarket, the online market 0.8 is predominantly
Slide 11: Investment in technology: Pre approved credit cards
Investment in technology: Pre approved credit cards Advanced Smart search Pre approval • Built on new technology / fusion stack. • Addressing the market headroom • Improving understanding of customer • Commercial: Four providers offering pre eligibility. approval (Capital One, New Day, MBNA and Virg
Slide 12: Energy: Significant market opportunity
Energy: Significant market opportunity Energy CAGR 2011/12 – 2015/16 31 +54% MSM sales new / switching Volume of products / millions +9% Online sales new / switching 1.8 +0% Total market size 1.3 Online Competition Apart from Moneysupermarket, the online market is a mix of other aggregators and dire
Slide 13: MoneySavingExpert has always given cash-back to build relationships directly with customers
MoneySavingExpert has always given cash-back to build relationships directly with customers Marketing Spend HY HY HY £Millions 2016 2015 (%) Offline Spend 17.9 15.7 +14% • Successful MSE collective switch model impacting marketing Cash-back to club spend. 7.9 5.3 +49% customers 29.2 +23% • Builds re
Slide 14: Additional online marketing spend as planned
Additional online marketing spend as planned Marketing Spend Revenue by source HY HY HY £Millions 100% 1% 2% 2016 2015 (%) 90% 14% 20% Offline Spend 17.9 15.7 +14% 80% 70% Cash-back to club 7.9 5.3 +49% 60% customers 50% 79% 84% Online and other spend 29.2 23.7 +23% 40% 30% Other 3.3 3.4 -3% 20% 10%
Slide 15: Cash conversion as planned
Cash conversion as planned 15
Slide 16: Priorities for capital are unchanged
Priorities for capital are unchanged 1 2 3 4 £ Organic Growth Ordinary dividends Acquisitions Special distribution Invest to capture Progressive Data or services Will distribute when growth headroom. dividend. businesses that improve have meaningful Hurdle rate of 18% Target full year our customer a
Slide 17: Cash and capital update
Cash and capital update • The technology investment is part of a three-year programme. We expect technology amortisation to be in the region of £13-14 million for 2016. • We expect to make capital investment of up to £24 million in 2016. • Amortisation of the intangible assets related to the pre IPO
Slide 18: Strong Investment case
Strong Investment case • Diversified business with headroom in each core market. • Momentum returning to insurance. • A very relevant business model offering customers a great way to save money and providers an effective way to acquire customers. • Growth supported by technology investment focused o
Slide 19: Peter Plumb
Peter Plumb Chief Executive Officer 19
Slide 20: Trading, another good start to the year
Trading, another good start to the year • Business Summary • MoneySuperMarket.com: +12% - Insurance back in growth • MoneySavingExpert.com: +32% - Strong performance by cards and energy • TravelSuperMarket.com: -19% - Rebuild on track, Car Hire and Holidays growth • Tech investment programme deliver
Slide 21: Brexit: business as usual for the Group
Brexit: business as usual for the Group This is not the global banking crisis of 2008/9 • The banking crisis of 2008/09 • Credit supply dried up : • Secured Loans declined: First Plus (£13M revenue) ceased trading • Credit Cards declined: Customers kept searching, supply significantly reduced • Fami
Slide 22: MoneySuperMarket App
MoneySuperMarket App The easiest way to switch and manage household bills Managing Bills Energy Quick Switch Cards Smart Search Motor Mobile Purchase 22
Slide 23: Moneysavingexpert's new credit club
Moneysavingexpert’s new credit club Free credit scores, personalised recommendations uniquely powered by Experian 23
Slide 24: Outlook: 2016
Outlook: 2016 Insurance back in growth, new Credit Club and improved Energy Clubs live • Market • Insurance: Prices rising, new platform bedding down • Energy: Prices look set to rise, MSE Energy Club re-platformed ready for more collectives • Money: Good range of cards, MSE Credit Club ready for la
Slide 25: Appendix
Appendix Moneysupermarket Group
Slide 26: Moneysavingexpert is an important source of visitors and customers
Moneysavingexpert is an important source of visitors and customers Monthly Unique Users 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 MSM MSE 0 • Google analytics unique monthly users Source: Google analytics. 26
Slide 27: Adjusted operating profit
Adjusted operating profit £Millions HY 2016 HY 2015 Variance Variance % Revenue 157.6 143.9 13.7 +10% Gross Profit 120.4 114.9 5.5 +5% Gross Margin 76% 80% -4% Administrative Costs (52.6) (57.4) 4.8 +8% Distribution Costs (21.2) (19.2) (2.0) -10% Operating Profit 46.6 38.4 8.2 +21% Amortisation of a
Slide 28: Adjusted cost base
Adjusted cost base £Millions HY 2016 HY 2015 Variance Variance % Staff Costs 24.7 25.1 (0.4) -2% Depreciation 1.1 1.4 (0.3) -21% Amortisation of technology 4.8 3.8 1.0 +26% Irrecoverable VAT 4.4 4.5 (0.1) -2% Other admin 10.6 10.2 0.4 +4% Total Adjusted Admin 45.6 45.0 0.6 +1% Advertising 17.9 15.7
Slide 29: Earnings per share calculation
Earnings per share calculation £Millions HY 2016 HY 2015 Statutory Profit Before Tax 47.1 37.8 Amortisation of MSFG intangibles 6.6 6.6 Amortisation of MSE intangibles 0.6 0.8 MSE contingent payable - 5.0 Profit on disposal of associate (0.8) - Adjusted ‘Before Tax’ Earnings 53.5 50.3 Assumed tax at
Slide 30: Statutory balance sheet
Statutory balance sheet £Millions 30 June 2016 30 June 2015 Property, Plant And Equipment 7.6 8.9 Intangible Assets - Technology 33.3 20.0 Intangible Assets - Acquisition related 128.6 143.3 Investments 0.5 - Trade and Other Receivables 42.3 34.5 Cash and Cash Equivalents 20.7 22.8 Total Assets 233.
Slide 31: Effective tax rate broadly stable
Effective tax rate broadly stable £Millions HY 2016 HY 2015 Profit before tax 47.1 37.8 Standard rate of tax 20% (2015: 20.25%) 9.4 7.6 Effects of: Expenses not deductible for tax purposes - 0.1 Impact of changes in tax rate / other - (0.1) Profit on disposal exempt from tax (0.2) - Tax expense for
Slide 32: Dividends, EPS & dividend cover
Dividends, EPS & dividend cover Dividend (pence) 2016 2015 2.75 2.55 Interim Ratios HY 2016 HY 2015 Earnings Per Share 6.9 5.5 Dividend Cover (interim dividend) 2.5 2.2 Dates for interim dividend – 18th August ex-div date, 16th September payment date 32
Slide 33: Historic KPI's
Historic KPI’s £Millions H1 2016 H1 2015 Variance Variance (%) Insurance Visitors on to the site 22.4 21.5 0.9 +4% Insurance Clicks off the site 7.2 7.5 (0.3) -4% Insurance Total Revenue (£) 75.3 73.6 1.7 +2% Money Visitors on to the site 22.7 22.8 (0.1) +0% Money Clicks off the site 10.6 11.9 (1.3)
Slide 34: This is not the banking crisis of 2008/9
This is not the banking crisis of 2008/9 Credit is flowing as usual to UK families 2009 (vs 2008) 2015 • MSM High Awareness • MSM & MSE most trusted money Brand £18M • Reduced brand spend £26M • Increased brand spend • Closed telephone leads • PCW usage a habit now Insurance £76M -£2M • Premiums inc
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