Mony Group Plc · LSE:MONY
Mony — Moneysupermarket Group — H1 2019 Earnings Presentation
29 slides from Mony's earnings presentation, Jul 18, 2019
Slide 1: Interim Results
Moneysupermarket roup Interim Results 18 July 2019
Slide 2: Mark Lewis, Chief Executive Officer
Mark Lewis Chief Executive Officer
Slide 3: Momentum in Reinvent delivery continues
Momentum in Reinvent delivery continues Encouraging H1 Trading • Helped households save £1bn • Revenue growth ahead of market • Diverse portfolio balancing mixed market conditions Reinvent strategy delivery continues • Optimisation gains delivering growth • Relaunched MSM brand to enable personalisa
Slide 4: Scilla Grimble, Chief Financial Officer
Scilla Grimble Chief Financial Officer
Slide 5: Financial highlights
Financial highlights Helped households save £1bn Revenue +15% Adjusted EBITDA +15% Reported EPS +19% £199m £73m 9.4p Reinvestment rate -1ppt Operating cashflow +20% Dividend per share +5% 9% £51m 3.10p Note: Comparatives for these purposes have been restated for IFRS 16 5
Slide 6: Good revenue growth across all segments
Good revenue growth across all segments £199m + 15% • Excluding Decision Tech, revenue grew 8% £174m £23m + 67% • Exceptional energy switching within Home Services £13m £34m + 52% • Solid performance within motor and £23m home insurance £47m • MSM customer optimisation and conversion £45m + 5% impro
Slide 7: Optimisation increasing average revenue per active user
Optimisation increasing average revenue per active user Average revenue per active user • 13m active users +16% • Active users are unique visitors that have run an £16.30 enquiry on at least one of our seven largest £15.40 channels in MSM in the last 12 months £14.10 • Customer experience optimisati
Slide 8: Income statement
Income statement HY 2018 £million HY 2019 Growth (Restated IFRS16) Revenue 199.4 173.7 15% Gross margin 70% 72% Adjusted EBITDA * 72.9 63.3 15% EBITDA margin 37% 36% Depreciation & software amortisation (9.8) (7.1) Adjusting items ** (1.7) (4.1) Operating profit 61.4 52.1 18% Net finance costs (0.9)
Slide 9: Investment in new capabilities
Investment in new capabilities Adjusted cost base £136m + 15% • Excluding Decision Tech, adjusted costs £10m + 43% increased by 8% £118m £18m + 6% • Excluding Decision Tech, staff costs increased £7m 5% £17m £31m + 11% • Amortisation increase due to phasing of go-lives in 2018 £28m • Marketing refle
Slide 10: Brand relaunch and profitable search engine marketing
Brand relaunch and profitable search engine marketing Revenue by source Marketing spend & margin £174m £199m 62% 61% 24% 22% £77m + 17% £66m £15m + 118% £7m £15m + 1% £15m 76% 78% £45m £48m + 7% HY 2018 HY 2019 HY 2018 HY 2019 Direct to site & Partnerships Non-brand paid SEM Online spend TV & Radio
Slide 11: Capital investment normalising
Capital investment normalising Total tech investment Reinvestment rate £18m £18m +10% +9% HY 2018 HY 2019 £11m £11m • Other capex of £0.9m, £0.7m relating to the new £7m £7m Manchester office • Full year technology capital investment forecast £11m HY 2018 HY 2019 Technology capital investment Techno
Slide 12: Cash conversion remains robust
Cash conversion remains robust £72.9m (£11.2m) £41.0m (£10.1m) (£0.1m) (£10.5m) Special Final (£83.4m) (£42.4m) Ad. EBITDA Working Capex and Strategy costs Tax Cashflow Dividends Cashflow capital investments and other before returns after returns to to shareholders shareholders • Net debt £12.6m as
Slide 13: 2019 Outlook
2019 Outlook Return to profit growth • Encouraging H1 trading • Energy performance exceptional in H1 • Optimisation gains delivering growth • Cash generation remains robust • Restating confidence in meeting full year market expectations* * Market expectations of Adjusted EBITDA for the 12 months to
Slide 14: Mark Lewis, Chief Executive Officer
Mark Lewis Chief Executive Officer
Slide 15: Business fundamentals remain strong
Business fundamentals remain strong • Market growth outlook remains 4-5% Growing • Exceptional market conditions for energy switching in H1 Markets • Insurance premium cycle remains subdued, weak travel market • Active users stable at 13m Engaged • Market leading NPS at 73 Users • Revenue per active
Slide 16: Reinvent growth strategy in the second year of delivery
Reinvent growth strategy in the second year of delivery Help households save money Reaccelerate Core Growth New Market Growth Leading Trusted Brands 1 2 3 Customer Leading Take Price Mortgage Experience Provider Personalised Comparison Price Optimisation Offer MSM to the user Comparison 16
Slide 17: Customer experience optimisation underpinning revenue growth
Customer experience optimisation underpinning revenue growth Reaccelerate Core Growth Product engineering hub consolidated • Permanent Manchester office set to open in Q3 Leading • Relocation of selected Ewloe tech squads will take Trusted headcount to c250 Brands Conversion gains continue across ke
Slide 18: Exceptional energy market conditions in H1 expected to correct in H2
Exceptional energy market conditions in H1 expected to correct in H2 H1 H2 Energy Launched start of January Anticipated £80 reduction price cap* Increased by £117 early February Media & “The price cap has backfired” “Your bills are going down” Provider comms “Your bills are going up” Available Tarif
Slide 19: Group strengths maximised the opportunity
Group strengths maximised the opportunity Commercial scale drove leading offers • Negotiated exclusive deals throughout the season Optimisation gains underpinned conversion rate • Further energy conversion gains delivered on MSM • New enhancements to MSE Cheap Energy Club MoneySavingExpert editorial
Slide 20: Progress on New Market Growth initiatives in 2019
Progress on New Market Growth initiatives in 2019 Personalised MSM roadmap progressing New Market Growth • Credit score now live to all web users • MSM brand relaunched to enable personalised services B2B comparison services growing 1 2 3 Take Price Mortgage • Decision Tech revenue growing ~30% year
Slide 21: cat
cat
Slide 22: "Get Money Calm" positioning deployed across all customer touchpoints
“Get Money Calm” positioning deployed across all customer touchpoints TV App On-Site CRM Out of home Social Print & Radio Conversion rates maintained Early brand tracking metrics encouraging 22
Slide 23: Further steps towards Mortgage digitisation
Further steps towards Mortgage digitisation Early versions of direct lender integrations • Current lender Product Transfer option presented to eligible customers • Based on revised question set and Podium eligibility engine • Specific rates for the customer and a direct handover to current lender •
Slide 24: Momentum in Reinvent delivery continues
Momentum in Reinvent delivery continues Encouraging H1 Trading • Helped households save £1bn • Revenue growth ahead of market • Diverse portfolio balancing mixed market conditions Reinvent strategy delivery continues • Optimisation gains delivering growth • Relaunched MSM brand set to enable persona
Slide 25: Q&A
Q&A Moneysupermarket roup
Slide 26: Appendix
Moneysupermarket roup Appendix
Slide 27: Bridge from reported operating profit to adjusted EBITDA
Bridge from reported operating profit to adjusted EBITDA HY 2018 £million HY 2019 Growth (Restated IFRS16) Operating profit 61.4 52.1 18% Amortisation of acquired intangible assets 1.2 0.5 Strategy related costs: Strategy review and associated reorganisation costs 0.5 2.6 Deal fees - 1.0 Depreciatio
Slide 28: IFRS 16 Income statement impacts
IFRS 16 Income statement impacts HY 2019 HY 2019 £million IFRS 16 adjustment (Pre IFRS 16) (Post IFRS 16) Adjusted EBITDA 71.6 1.3 72.9 Depreciation & software amortisation (8.5) (1.3) (9.8) Adjusting items (1.7) - (1.7) Operating profit 61.4 - 61.4 Net finance costs (0.3) (0.6) (0.9) Share of profi
Slide 29: Strategic KPIs
Strategic KPIs Help households save money £1bn 73 61% Savings made by customers Net promoter score Marketing margin 13m £16.30 Active users Revenue per active user Definitions: Estimated Savings made by customers in H1 2019 Net Promoter Score: Twelve monthly rolling average (1 July 2018 - 30 June 20
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