Saga Plc · LSE:SAGA
Saga — FY2024/25 Earnings Presentation
38 slides from Saga's earnings presentation, Apr 9, 2025
Slide 1: Saga plc Preliminary Results
SAGA PLC PRELIMINARY RESULTS 9 APRIL 2025
Slide 2: Speakers Agenda
SPEAKERS AGENDA 1. Mike Hazell 2. 3. 4. Mark Watkins 2 Preliminary results for the year ended 31 January 2025
Slide 3: Overview
OVERVIEW Mike Hazell Group CEO
Slide 4: Saga is well-positioned for growth
WITH SOLID FOUNDATIONS NOW IN PLACE, SAGA IS WELL-POSITIONED FOR GROWTH Strong financial performance Significant strategic progress over the past 12 months The foundations are now in place, with a clear path to sustainable growth Annual underlying profitability expected to reach at least £100m withi
Slide 5: Progress across each of our businesses as we build momentum
PROGRESS ACROSS EACH OF OUR BUSINESSES AS WE CONTINUE TO BUILD MOMENTUM Cruise Holidays Insurance Money 3ppts Step change 14% Stable Policy sales Underlying Profit Before Tax, in Underlying Profit Before Tax despite investment in new products 8% 9% £4 £36m Passengers Motor and home margin per policy
Slide 6: Financial Performance
FINANCIAL PERFORMANCE Mark Watkins Group CFO
Slide 7: Growth in underlying profit, further net debt reduction
GROWTH IN UNDERLYING PROFIT, ALONGSIDE FURTHER NET DEBT REDUCTION £m 2024/25 2023/24 Change 7 Preliminary results for the year ended 31 January 2025
Slide 8: Cruise and holidays drive growth in group earnings
AMIDST INSURANCE CHALLENGES, CRUISE AND HOLIDAYS DRIVE GROWTH IN GROUP EARNINGS £m 2024/25 2023/24 Change Total Travel 63.6 40.0 59% Underlying Profit Before Tax 37.2 34.3 8% (from continuing operations) Total Underlying Profit Before Tax 47.8 38.2 25% 8 Preliminary results for the year ended 31 Jan
Slide 9: Ocean cruise earnings demonstrate material growth
OCEAN CRUISE EARNINGS DEMONSTRATE MATERIAL GROWTH £m 2024/25 2023/24 Change Gross profit 97.7 81.1 20% Underlying Profit Before Tax 48.9 35.5 38% Forward bookings First half Full year 6 April 7 April Change 6 April 7 April Change 2025 2024 2025 2024 9 Preliminary results for the year ended 31 Januar
Slide 10: Significant growth in river cruise
SIGNIFICANT GROWTH IN RIVER CRUISE, WITH FURTHER OPPORTUNITY TO SCALE £m 2024/25 2023/24 Change Gross profit 15.1 11.3 34% Underlying Profit Before Tax 4.0 3.0 33% Forward bookings First half Full year 6 April 7 April Change 6 April 7 April Change 2025 2024 2025 2024 10 Preliminary results for the y
Slide 11: Holidays delivered a step change in profitability
HOLIDAYS DELIVERED A STEP CHANGE IN PROFITABILITY £m 2024/25 2023/24 Change Gross profit 41.7 30.0 39% Underlying Profit Before Tax 10.7 1.5 >500% Forward bookings Full year 6 April 7 April Change 2025 2024 11 Preliminary results for the year ended 31 January 2025
Slide 12: Insurance broking contribution in line with guidance
INSURANCE BROKING CONTRIBUTION IN LINE WITH GUIDANCE, REFLECTING CONTINUED CHALLENGING CONDITIONS 1 2 3 4 5 Year-on-year movement in written Insurance Broking Underlying Profit Before Tax (£m) 6.7 34.4 (22.2) 1.2 (3.5) (2.5) 14.1 1 2 3 4 5 2023/24 Motor Home PMI Travel Underlying operating 2024/25 e
Slide 13: Insurance underwriting returns to underlying profit
INSURANCE UNDERWRITING Combined operating ratio (net) RETURNS TO UNDERLYING PROFIT 2024/25 FOLLOWING PRICING ACTION 17.0% (6.3%) 2024/25 100.7% 94.3% 83.7% 194.5 169.8 2024/25 Reported Expense ratio Current year Prior year Reported 10.7 current year loss combined development combined ratio operating
Slide 14: Continued progress with net debt reduction
CONTINUED PROGRESS WITH NET DEBT REDUCTION Movement in Net Debt (£m) 43.3 21.3 18.4 (1.7) (102.8) (23.0) (2.2) 637.2 590.5 1 Feb 2024 Unrestricted Trading Dividends and Working Capital Debt Restructuring costs Tax and other 31 Jan 2025 EBITDA intercompany capital expenditure service payments repayme
Slide 15: Earnings outlook 2025/26
2025/26 EARNINGS OUTLOOK Ocean Cruise River Cruise Holidays Insurance Broking Finance costs Overall 15 Preliminary results for the year ended 31 January 2025
Slide 16: Net debt outlook 2025/26
2025/26 NET DEBT OUTLOOK Illustrative new or one-off Net Debt movements for 2025/26 (£m) Approximate value Net cash inflows Net cash outflows 16 Preliminary results for the year ended 31 January 2025
Slide 17: Strategic Progress and Direction
STRATEGIC PROGRESS AND DIRECTION Mike Hazell Group CEO
Slide 18: Saga is the brand for people over 50
OFFERING HIGH-QUALITY PRODUCTS AND SERVICES, SAGA IS THE BRAND FOR PEOPLE OVER 50 We serve an attractive target market… ...underpinned by our strong brand… ...and unrivalled data 26.4m UK’s best-selling data insight 39% UK’s 18-year 9.4m fastest growing 31.5m £319bn 26.4m 93% 7.8m 2024 2050 25m in-d
Slide 19: Our actions have put us in a strong position
WE ARE DELIVERING ON OUR PLANS AND OUR ACTIONS HAVE PUT US IN A STRONG POSITION We have repositioned our business and are now focussed on growth 19 Preliminary results for the year ended 31 January 2025
Slide 20: Our vision delivered through our growth plan
OUR VISION most-trusted brand older people DELIVERED THROUGH OUR GROWTH PLAN Drive incremental growth Grow our customer base Maximise the growth of our Reduce debt, while through new business lines and deepen those existing businesses simplifying our operations and products relationships 20 Prelimin
Slide 21: Maximising the growth of our existing businesses
CRITICAL TO OUR SUCCESS IS MAXIMISING THE GROWTH OF OUR EXISTING BUSINESSES Cruise Holidays Insurance Money 21 Preliminary results for the year ended 31 January 2025
Slide 22: Driving incremental growth through new business lines and products
DRIVING INCREMENTAL GROWTH THROUGH NEW BUSINESS LINES AND PRODUCTS Detailed growth plans now in place for each our businesses and existing product lines Significant opportunity to build on these, exploring further growth, through new business and product lines Our unique data, brand and customer bas
Slide 23: Growing our customer base and deepening relationships
GROWING OUR CUSTOMER BASE AND DEEPENING THOSE RELATIONSHIPS Increasing our Driving frequency of interaction Leveraging our data customer reach and depth of engagement to drive lifetime value 23 Preliminary results for the year ended 31 January 2025
Slide 24: Reducing debt, while simplifying our operations
REDUCING DEBT, WHILE SIMPLIFYING OUR OPERATIONS y xit Fu tur mple e simplic ic co tor it is y H We are creating a more streamlined and agile business, increasing the quality of earnings, reducing cash flow risk and supporting deleveraging 24 Preliminary results for the year ended 31 January 2025
Slide 25: Significant opportunity to grow the business and enhance value
LOOKING AHEAD, THERE IS SIGNIFICANT OPPORTUNITY TO GROW THE BUSINESS AND ENHANCE VALUE FOR STAKEHOLDERS Material growth in Underlying Profit Before Tax… …and further reduction in Net Debt and Leverage £590.5m Net Debt At least £600m 6.00 Leverage £100m £500m 4.7x £400m 4.00 £300m £200m 2.00 £37m £10
Slide 26: Positions the group for future growth
STRONG PROGRESS IN 2024/25 POSITIONS THE GROUP FOR FUTURE GROWTH Significant progress in 2024/25 Looking ahead 26 Preliminary results for the year ended 31 January 2025
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Slide 28: Dates for the diary
2025 DATES FOR THE DIARY 28 Preliminary results for the year ended 31 January 2025
Slide 29: Appendix
APPENDIX
Slide 30: Saga plc consolidated income statement
SAGA PLC CONSOLIDATED INCOME STATEMENT 2024/25 2023/24 £m Continuing Discontinued Total Change Continuing Discontinued Total operations operations operations operations Underlying Profit Before Tax 37.2 10.6 47.8 25% 34.3 3.9 38.2 (Loss)/profit before tax (160.2) 19.1 (141.1) (9%) (123.8) (5.2) (129
Slide 31: Travel income statement
TRAVEL INCOME STATEMENT £m Ocean River Holidays 2024/25 Change Ocean River Holidays 2023/24 Cruise Cruise Travel total Cruise Cruise Travel total Underlying Profit Before Tax 48.9 4.0 10.7 63.6 59% 35.5 3.0 1.5 40.0 31 Preliminary results for the year ended 31 January 2025
Slide 32: Insurance broking income statement
INSURANCE BROKING INCOME STATEMENT £m Motor Home Other 2024/25 Change 2023/24 broking broking broking Written Underlying Profit Before Tax 1.1 2.1 10.9 14.1 (59%) 34.4 Earned Underlying Profit Before Tax 1.4 2.1 10.9 14.4 (64%) 39.8 32 Preliminary results for the year ended 31 January 2025
Slide 33: Insurance underwriting income statement
INSURANCE UNDERWRITING INCOME STATEMENT (DISCONTINUED OPERATION) £m Gross Re- 2024/25 Gross 2023/24 insurance Net change Gross Insurance service result 73.7 (63.6) 10.1 258% (46.7) Underlying Profit/(Loss) Before Tax 66.3 (55.6) 10.7 252% (43.7) 33 Preliminary results for the year ended 31 January 2
Slide 34: Other businesses and central costs income statement
OTHER BUSINESSES AND CENTRAL COSTS INCOME STATEMENT £m Other Central 2024/25 Change Other Central 2023/24 Businesses Costs Total Businesses Costs Total Gross profit 6.9 6.1 13.0 7% 7.2 5.0 12.2 Underlying Profit/(Loss) Before Tax 0.4 (41.3) (40.9) (2%) 0.9 (41.1) (40.2) 34 Preliminary results for th
Slide 35: Cash flow and liquidity
CASH FLOW AND LIQUIDITY £m 2024/25 Change 2023/24 Available Cash at 31 January 79.3 (53%) 169.8 35 Preliminary results for the year ended 31 January 2025
Slide 36: Available operating cash flow by business unit
AVAILABLE OPERATING CASH FLOW BY BUSINESS UNIT £m 2024/25 Change 2023/24 Available Operating Cash Flow 109.6 (24%) 143.8 36 Preliminary results for the year ended 31 January 2025
Slide 37: Travel cash flows
TRAVEL CASH FLOWS 97.3 (5.4) (1.7) Ocean Cruise (15.8) 12.0 (62.2) 2.6 (22.2) 4.6 1 Feb Net Net Capex Restructuring Interest Debt Group 31 Jan Opening advance trading costs service repayment Closing cash customer income cash receipts 13.9 River Cruise and Holidays (0.9) (1.0) 5.8 (14.0) 49.1 52.9 1
Slide 38: Overview of our new corporate credit facilities
OVERVIEW OF OUR NEW CORPORATE CREDIT FACILITIES Term loan Delayed-draw term loan Revolving credit facility early repayment flexibility Blended pro forma interest rate, around 7.6% 38 Preliminary results for the year ended 31 January 2025