Slide 1: FY25 Interim Results
FY25 Interim Results November 2024 1
Slide 2: FY25 Interim Results agenda
FY25 Interim Results • Part one: H1 FY25 highlights Stuart Burnett - CEO • Part two: financial performance Nick Schoenfeld - CFO • Part three: outlook & future growth Stuart Burnett - CEO • Q&A 2
Slide 3: Three key takeaways
FY25 Interim Results Three key takeaways Compounding double-digit % 12-14% customer growth and Investing in our market-leading growth in customers £124-128m Adj PBT in FY25 multiservice proposition Driven by unique multiservice FY guidance on customer growth Launched EV charging tariff, proposition,
Slide 4: H1 FY25 Performance Highlights
H1 FY25 Performance Highlights Stuart Burnett, CEO 4
Slide 5: H1 FY25 highlights
H1 FY25 highlights A strong first half performance Customers Sept 25 1,078,318 Strong double-digit annualised organic customer +13% growth, with service numbers increasing by 139k Mar 24 1,011,489 Gross Profit H1 25 £167.8m Where the P&L effectively begins (given impact of +1.7% energy prices on rev
Slide 6: H1 FY25 - 13% growth in a competitive market with stable energy prices
H1 FY25 - 13% growth in a competitive market with stable energy prices Delivering double-digit growth in all market conditions Customer Base Growth Competitive but rational energy market FY25 first half only o All major suppliers seeking to acquire new customers again o Rational pricing strategies r
Slide 7: Our Unique Business Model
Our Unique Business Model Supported by award winning customer service which leads to high-value loyal customers Unique Unique multiservice 2 structural 1 We help bundle people stop cost advantage wasting time and money Which helps customers Which we reinvest to unlock navigate signing up for the ult
Slide 8: Our Unique Business Model
Our Unique Business Model Supported by award winning customer service which leads to high-value loyal customers Unique Unique multiservice 2 structural 1 We help bundle people stop cost advantage wasting time and money Which helps customers Which we reinvest to unlock navigate signing up for the ult
Slide 9: Driving growth through our multiservice proposition
Driving growth through our multiservice proposition Enhancements to our Customer Proposition Energy Broadband Mobile Cashback card Market leading EV charging Ultra high speed full fibre New multi-SIM offering Cashback now on Apple Pay tariffs service launched • Strong mobile growth • Joined Apple Pa
Slide 10: Insurance - all set for scale up opportunity ahead
Insurance - all set for scale up opportunity ahead All products cleared to restart sales - significant growth opportunity FY24 H1 FY25 Medium term Strong growth in policy book in FY24 Modest fall in policy count whilst some Significant runway to scale: just 11% of • 38% growth to 139k policies produ
Slide 11: Our Unique Business Model
Our Unique Business Model Supported by award winning customer service which leads to high-value loyal customers Unique Unique multiservice 2 structural 1 We help bundle people stop cost advantage wasting time and money Which helps customers Which we reinvest to unlock navigate signing up for the ult
Slide 12: Supporting UW’s unique business model with AI
Supporting UW’s unique business model with AI Our Use Cases of AI FY25 Short Term Medium Term Improve operational efficiency with AI Drive Revenue Growth through Cross- Support UW’s WoM growth model Sell Modelling • Automating email verification for • Create AI trainer & knowledge quicker customer s
Slide 13: Our Unique Business Model
Our Unique Business Model Supported by award winning customer service which leads to high-value loyal customers Unique Unique multiservice 2 structural 1 We help bundle people stop cost advantage wasting time and money Which helps customers Which we reinvest to unlock navigate signing up for the ult
Slide 14: Team Purple - our unique route to market
Team Purple - our unique route to market 70,000+ multi-income earners in communities throughout the UK What they do: Refer UW to potential customers they know or meet • Guide prospects to the UW sign up journey • Overcome the inherent inertia in switching multiple services simultaneously • Unlock ou
Slide 15: Team Purple - only just getting started
Team Purple - only just getting started Structural ongoing tailwinds to this unique model High interest rates & cost of living Team Purple key stats • Cost of living continues to create challenges for consumers • 20k mortgage holders coming off fixed rate offers every week -> UW immediate income of
Slide 16: Our Unique Business Model
Our Unique Business Model Supported by award winning customer service which leads to high-value loyal customers Unique Unique multiservice 2 structural 1 We help bundle people stop cost advantage wasting time and money Which helps customers Which we reinvest to unlock navigate signing up for the ult
Slide 17: Financial Performance
Financial Performance Nick Schoenfeld, CFO 17
Slide 18: Profit & loss (£m)
Profit & loss (£m) H1 FY25 H1 FY24 Variance Profit growth from double digit customer growth offset by lower energy prices Revenue 698 884 (21%) Gross profit 168 165 • Customer growth offset by lower energy prices, 2% Gross margin 24.1% 18.7% now that these have normalised Distribution expenses (24)
Slide 19: Balance sheet (£m)
Balance sheet (£m) 30 Sep 24 31 Mar 24 30 Sep 23 Variance vs 31 Mar 24 See notes on the cash flow slide Fixed assets 33 35 33 (2) Non-current assets 200 195 196 4 Net current assets 110 125 74 (15) • Temporary favourable timing differences in H1 vs prior year (Net debt) (115) (123) (83) 8 • £175m RC
Slide 20: Cashflow (£m)
Cashflow (£m) Net debt improved by £8m following H1 FY25 H1 FY24 temporary favourable cash timing differences EBITDA 56.9 50.4 • Temporary favourable cash timing differences in H1 as energy prices normalised Working capital movement 11.9 (59.2) • Typical annual working capital consumption £25-£30m T
Slide 21: Looking ahead - capital allocation
Looking ahead - capital allocation Double-digit profit growth converting into growing distributable cash Capital light business model Dividend track record • Limited working capital consumption as we grow • Capital expenditure largely restricted to ongoing technology investment o High levels of cash
Slide 22: Outlook
Outlook Stuart Burnett, CEO 22
Slide 23: Medium term goal - Scaling from 1m to 2m customers
Medium term goal - Scaling from 1m to 2m customers 97 out of every 100 UK households is with another supplier… 7th largest residential supplier of electricity in the UK 23 UK energy market supplier share by residential electricity supply points (Source: Cornwall Insights, as at 31 July 2024)
Slide 24: Looking ahead - customer growth
Looking ahead - customer growth Proven record of delivering double-digit growth in all market conditions 12-14% Number of Customers growth Double digit growth in a normalised market A normalised with 20+ suppliers energy market H1 Modest growth during price-war period 2015-2021 with irrational compe
Slide 25: Looking ahead - profit outlook
Looking ahead - profit outlook Double-digit customer growth converting into profit growth EBITDA / customer Medium-term EBITDA / customer evolution • Historically ~£100 • FY24 £132 - including impact of high energy prices in Q1 • Medium term. mid £120s, in line with FY23 and FY24 = Adj PBT growing b
Slide 26: Outlook - A hugely exciting time for the business
Outlook - A hugely exciting time for the business What we expect… FY25 Medium term Long term Strong organic customer growth Increasing our market share in each Building market share across core • Growth rate continuing of our 4 services services: at 2m customers our energy • 12-14% growth market sha
Slide 27: Questions & Answers
Questions & Answers
Slide 28: Three key takeaways
FY25 Interim Results Three key takeaways Compounding double-digit % 12-14% customer growth and Investing in our market-leading growth in customers £124-128m Adj PBT in FY25 multiservice proposition Driven by unique multiservice FY guidance on customer growth Launched EV charging tariff, proposition,
Slide 29: Get in touch
Get in touch Utility Warehouse 508 Edgware Road London, NW9 5AB Telecomplus.co.uk 29
Slide 30: Disclaimer
Disclaimer The inf ormation c ontained in this presentation in respect of Telec om Plus PLC (the “Company”) and communicated during any delivery of the presentation, including the talks giv en by the presenters, any question and an swer sess ion and any document or material dis tributed at or in con