Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — FY2018 Earnings Presentation
25 slides from Ten Lifestyle's earnings presentation, November 2018
Slide 1: Results for the year ending 31st August 2018
Welcome. Results for the year ending 31st August 2018 November 2018 © Copyright Ten Lifestyle Group 2018. All rights reserved.
Slide 2: Ten Today - by Numbers
Ten Today - by Numbers Mission – to become the most trusted service business in the world, working behind global brands. 2m+ 26+ 5m+ 135k+ REGISTERED MEMBERS LANGUAGES SPOKEN REQUESTS SO FAR REQUESTED TICKET BOOKINGS ANNUALLY Welcome. 20 70k+ 290k+ 100k+ GLOBAL OFFICES REQUESTS PER MONTH REQUESTED R
Slide 3: 2017/2018 Highlights
2017/2018 Highlights Net Revenue up 13% to 37.4m 7 new medium or large contracts launched 2 contracts grew from Small to Medium Digital platform live in all three global regions Welcome. Member satisfaction improved in all global regions Admission to trading on AIM in November 2017 3 © Copyright Ten
Slide 4: Financial Results
Financial Results Welcome. For the year ending 31st August 2018 4 © Copyright Ten Lifestyle Group 2018. All rights reserved.
Slide 5: Key Financial Highlights
Key Financial Highlights Net Revenue £37.4m, growth of +13% (2017: £33.2m) Revenue flat in EMEA, up 8% in the second half of the year 16% Net Revenue growth in the Americas 43% Net Revenue growth in APAC Large contracts up from 4 to 6 Welcome. Medium contracts up from 11 to 18 including 2 contracts
Slide 6: Income statement
Income statement £m 2018 2017 Revenue 40.1 34.9 Net Revenue 37.4 33.2 Operating expenses and Revenue growth, albeit behind expectations (41.3) (31.5) Other income Adjusted EBITA (3.9) 1.7 Adjusted EBITA % (10.4%) 5.1% Planned investment in technology and Amortisation (2.8) (2.3) international expans
Slide 7: Net Revenue
Net Revenue Overall growth was 13% for the year, with an improved run rate in H2 2018. H1 Growth was 6%, H2 was 19%. Organic growth was flat for the year. One medium and one small contract finished in the year with a £2.1m (6%) Welcome. adverse impact on revenue growth. Neither were lost to a compet
Slide 8: Net Revenue by Region
Net Revenue by Region Net Revenue £m 2018 2017 % change EMEA 17.4 17.4 0% Americas 11.4 9.8 16% APAC 8.6 6.0 43% 37.4 33.2 13% Welcome. EMEA – flat Net Revenue reflect an unusual period with no new Large launches in Europe. H2 growth was 8%. EMEA members requests increasingly managed globally Americ
Slide 9: Technology Investment
Technology Investment Annual cash spend on Ten’s technology platforms, Investment in tech has created a fully integrated, communications, and infrastructure (per FY) transactional, global digital platform live in market – highly competitive £10.5m In 2017, Product & Technology was brought in-house,
Slide 10: Financial Results – Overall Adjusted EBITA
Financial Results – Overall Adjusted EBITA £m 2018 2017 Adjusted EBITA Adjusted EBITA includes the indirect costs EMEA 3.1 3.9 of IT, Platform support, real estate costs EMEA Margin % 18% 23% and senior management allocated to the regions and gives us a fully loaded Americas (6.8) (1.5) Adjusted EBI
Slide 11: Cashflow
Cashflow £m 2018 2017 Loss before tax (8.5) (2.2) Net finance expense 0.5 0.6 Working capital changes 0.5 (0.4) Operating cash outflows were £3.1m, Non-cash items (share based payments, depreciation and amortisation charges) 4.4 3.9 reflecting increased operating losses Operating cash (3.1) 1.9 offs
Slide 12: Operational Update
Operational Update Welcome. 12 © Copyright Ten Lifestyle Group 2018. All rights reserved.
Slide 13: Ten's Leadership Team
Ten’s Leadership Team New Joiner Promoted ALEX CHEATLE ANDREW LONG ANNA SEIZER BRYN DYER DAVID PORTER FRANCESCO DE IAN SWAIN Co-Founder and Co-Founder and COO, EMEA COO, APAC Managing Director, MARCHIS Global Commercial Welcome. CEO Global COO Strategy Customer Value Chief Technology Director Propos
Slide 14: Operational Update – Growth
Operational Update – Growth Two large contracts won in the year Large - HSBC Jade is aimed at mass affluent/HNWI clients in 7 markets globally. Contract was won from Quintessentially and launched with our digital platform in June 2018. Marketing continues to grow engagement and the scale of the cont
Slide 15: Welcome .
Welcome. © Copyright Ten Lifestyle Group 2018. All rights reserved.
Slide 16: Our Digital Platform In-Market Today
Our Digital Platform In-Market Today 260 Platform Mobile PCI Robust Instances live responsive Compliant and with anti-fraud AWS supported and fully audited by our major client partners (9 languages, 36 currencies) 55% PC, 45% mobile or tablet Integrated Future proof Welcome. Personalisation Branding
Slide 17: Feature Roadmap (Technology): 2019 & Beyond
Feature Roadmap (Technology): 2019 & Beyond* IMPROVED SEARCH PERSONALISATION CMS PAY WITH POINTS UNIQUE CODES Platform personalised to New Content Management Members able to pay using Unique online redemption codes Faster, multi-hierarchy location, demographic, System to allow faster, more loyalty p
Slide 18: 2019 Innovation: Planned Non-Tech Improvements
2019 Innovation: Planned Non-Tech Improvements* Data, Proposition: Proposition: Proposition: Service Content Tickets & Dining & Travel quality & Events Benefits Marketing Curated content Global secondary Hot Tables expanded New hotel collections Welcome. New offices: Paris, Berlin, Scandinavia expan
Slide 19: Highly-Differentiated Proposition
Highly-Differentiated Proposition A B C D Fully owned, integrated global infrastructure Category experts as concierges Welcome. Multi-category transactional digital platform At scale in each region Exclusively focused on travel and lifestyle concierge and benefits Differentiated and bespoke content
Slide 20: New Verticals
New Verticals Employee Market Leader hired and in place in second half of the year Sales have begun and pipeline being built of potential Medium and Small contracts Peel Hunt research identifies this as a £1.1 billion addressable market Luxury Brands (including Auto) Welcome. Sales pipeline of Mediu
Slide 21: Revenue Build Advantages in 2019
Revenue Build Advantages in 2019 IPO November 2019 Global self-serve digital platform fully available X ü Dedicated sales resource in Americas X ü Global offering Global case studies (HSBC, VISA, Mastercard) . WelcomeLargely ü X ü More complete product set X ü Vertical markets resource in place X ü
Slide 22: Outlook
Outlook Welcome. 22 © Copyright Ten Lifestyle Group 2018. All rights reserved.
Slide 23: Clearly-Identified Pathways to Revenue Growth
Clearly-Identified Pathways to Revenue Growth Additional Geographies, Verticals and Clients New Clients: Signed Contracts Welcome. New Clients: Contracts In Negotiation New Clients: Pipeline Current Clients: Increased Current Clients: Increased Current Clients: New Users Usage Contracts Current Clie
Slide 24: Regional Development – 2018 and 2019
Regional Development – 2018 and 2019 EMEA Americas APAC EMEA Net Revenue declined in H1 but 16% Net Revenue growth in 2018 43% Net Revenue growth, helped by improved in H2 as contract launches were contract launches in the year executed Significantly loss-making in 2018 as we Welcome. Organic growth
Slide 25: Welcome .
Welcome. © Copyright Ten Lifestyle Group 2018. All rights reserved.