Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2007 Earnings Presentation
30 slides from Mony's earnings presentation, Feb 26, 2008
Slide 1: Moneysupermarket.com Group PLC Preliminary Results Presentation
STRICTLY PRIVATE & CONFIDENTIAL Moneysupermarket.com Group PLC Preliminary Results Presentation 26 February 2008
Slide 2: Agenda
Agenda Overview: Gerald Corbett Financial Review: Paul Doughty Business Review: Simon Nixon Questions and Answers: Moneysupermarket.com 2
Slide 3: Overview of 2007 results
Overview of 2007 results 2007 results confirm the strength of business and investment case Continued, strong revenue and profit growth despite turbulence in financial markets underpinned by large increases in: – Visitors – Transactions – Revenue Per Visitor Significant investments in brand recog
Slide 4: Paul Doughty, Chief Financial Officer – Financial Review
STRICTLY PRIVATE & CONFIDENTIAL Paul Doughty Chief Financial Officer Financial Review
Slide 5: Pro Forma Profit & Loss Account
Pro Forma Profit & Loss Account MSFG acquired by Moneysupermarket.com Group (“MSM”) on 22 June 2007 – Trading for statutory entity from this date to 31 December 2007 Pro forma results prepared showing what the financial results would have been had MSM acquired MSFG on 1 January 2006 on a debt fr
Slide 6: Pro Forma Profit & Loss Account
Pro Forma Profit & Loss Account FY 07 Proforma FY 06 Comp Growth £m £m Revenue 162.9 104.5 56% Internet 152.2 93.0 64% Intermediary 10.7 11.5 (7%) Gross Profit 108.6 63.8 70% Gross Margin 67% 61% Other Income – 0.2 (100%) Adjusted Administrative Costs (37.6) (23.9) 57% Amortisation of Intangible
Slide 7: Diversification Continues…
Diversification Continues… FY 2006 Internet Revenues FY 2007 Internet Revenues (revenues in £m) (revenues in £m) Home Services / Other Travel £4.6m 34% Home Services / Other £15.0m Travel £1.2m 3% £7.5m 8% 2% 10% 57% Money Money 51% 33% £52.7m £78.0m Insurance £31.1m 36% Insurance £54.4m Source: Com
Slide 8: …and Direct Revenues Increase
…and Direct Revenues Increase Dec 2006 Revenue Share Dec 2007 Revenue Share Partners Partners 23% 14% Direct (incl. SEO) 50% SEM Direct (incl. 28% SEO) 58% SEM 27% Source: Company data Moneysupermarket.com brand increasingly valuable – Higher gross margin direct-to-site revenues – Increased online
Slide 9: Accounting Information
Accounting Information Goodwill and Intangibles Arising From Acquisition of Duncan Cameron Shares £125.0m of goodwill – Impairment review at least annually £207.2m of intangibles – Annual charge of £25.2m for first three years IPO & Costs of Transaction Company proceeds received of £180m gross
Slide 10: Accounting Information (cont’d)
Accounting Information (cont’d) Share Option Charges Pre-IPO 13.6m unapproved options which vest 2008 – 2010 with exercise price of 6p 0.9m SIPS/Chairman awards (0.7m after assumed attrition) which vest 2008 – 2010 with an exercise price of nil Black Scholes Model used for valuation Post-IPO
Slide 11: Accounting Information (cont’d)
Accounting Information (cont’d) Dividends Final dividend of 1.63 pence per share in respect of the year ended 31 December 2007 – Annual targeted payout ratio representing 1/3 of adjusted net income – Final dividend represents c.2/3 of annual payout Tax Effective rate of -25% on 2007 statutory pr
Slide 12: Statutory Balance Sheet
Statutory Balance Sheet December June 2007 2007 £m £m Goodwill and intangibles 334.6 341.1 Net current assets / (liabilities) 46.6 (138.4) Long-term liabilities (54.2) (62.0) Net Assets 327.0 140.7 Capital and Reserves 327.0 140.7 Fixed assets include £125.0m of goodwill, and £193.9m of other inta
Slide 13: Financial Highlights
Financial Highlights Revenues continued to grow strongly, increasing 56% from £104.5m to £162.9m – Internet revenue up 64% on 2006 and represented 93% of turnover Gross margins increased significantly from 61% to 67% due to improved sales mix – Increased proportion of direct-to-site revenues – D
Slide 14: Simon Nixon, Chief Executive Officer – Business Review
STRICTLY PRIVATE & CONFIDENTIAL Simon Nixon Chief Executive Officer Business Review
Slide 15: Full Year Highlights
Full Year Highlights Internet business highlights Strong momentum continues throughout 2007 despite challenging markets in H2 – 54% increase in Internet Visitors (a,b) – 52% increase in Internet Transactions (a) – 63% increase in Internet Revenues (a) – Helped by increasing broadband penetration i
Slide 16: Leading Online Position
Leading Online Position #1 Finance price comparison website #1 Travel price comparison website Leading market position maintained in rapidly expanding market New entrants achieving small market share through significant TV advertising expenditure Price Comparison total market continuing to
Slide 17: Diversified Strategy
Diversified Strategy Revenues by Vertical 2004-2007 78.0 52.6 54.4 41.3 37.0 31.0 16.0 15.0 7.5 5.1 4.5 3.2 1.9 0.7 0.4 - 2004 2005 2006 2007 Source: Company Money Insurance Travel Home Services Competitive Advantage •Strength of consumer offering •Ability to leverage brand and consumer 17
Slide 18: Full Year Highlights – Money
Full Year Highlights – Money Revenues grew by 49% to £78.0m, representing 51% of internet revenues Click-based revenues of £60.8m grew by 61% – 20% increase in visitors over 2006 – change in mix to secured lending, with improved RPT and RPV (up 41% and 24% respectively) Non click based revenue
Slide 19: Full Year Highlights – Insurance
Full Year Highlights – Insurance Revenues grew by 75% to £54.4m, representing 36% of internet revenues RPT increased by 14% to £3.51, as consumer sales conversion improved on provider sites of home and motor insurance Driven by upgrades in the search functionality on the websites during the ye
Slide 20: Full Year Highlights – Travel
Full Year Highlights – Travel Revenues grew by 101% to £15.0m , representing 10% of internet revenues Click-based revenue growth driven by visitor numbers (up 87%) and improved conversion rates – Successful marketing – User uptake of travel price comparison – Broadening of product offering Sal
Slide 21: Full Year Highlights – Home Services
Full Year Highlights – Home Services Revenues increased by 280% from £1.2m to £4.5m in 2007, now representing 3% of internet revenues – Grown market share Launched during 2006 with white label utilities product now includes – Proprietary utilities offering – Broadband – Mobiles – White label sho
Slide 22: Plans for 2008
Plans for 2008 Brand/Marketing – Improved SEM – SEO – Brand Awareness – Target 80% in FY08 Product Performance Goals – Comprehensiveness – Accuracy – Relevance – Decision support – Usability CRM – Customer segmentation People/Process – Strengthening of Management Team – Improvement of operat
Slide 23: Outlook
Outlook Strong start to current financial year Money – Double digit growth year to date – Loans and Mortgages broadly flat despite challenging market conditions, with strong growth in cards and savings Other verticals – Momentum from H2 maintained – Improved provider conversions and growth in
Slide 24: Questions and Answers
STRICTLY PRIVATE & CONFIDENTIAL Questions and Answers
Slide 25: Appendix
STRICTLY PRIVATE & CONFIDENTIAL Appendix
Slide 26: Adjusted EBITDA
Adjusted EBITDA H1 H1 H2 H2 FY FY 2007 2006 Var. Var.% 2007 2006 Var. Var.% 2007 2006 Var. Var.% Revenues Internet 73.5 42.7 30.8 72% 78.7 49.8 28.9 58% 152.2 92.5 59.7 65% Intermediary 4.9 5.5 (0.6) (11)% 5.8 6.5 (0.7) (11)% 10.7 12.0 (1.3) (11)% Total 78.5 48.2 30.3 63% 84.4 56.3 28.1 50% 162.9 10
Slide 27: Adjusted Cost Base
Adjusted Cost Base FY 2007 FY 2006 £m % of Revenues % of Costs £m % of Revenues % of Costs (1) Adjusted Cost Base Revenues 162.9 100% 104.5 100% Staff Costs 22.8 14% 40% 16.2 15% 52% Depreciation 1.6 1% 3% 1.0 1% 3% Irrevocable VAT 6.9 4% 12% 4.3 4% 14% Other Admin 6.3 4% 11% 2.4 2% 8% Total Adjuste
Slide 28: Statutory to pro-forma reconciliation
Statutory to pro-forma reconciliation 2007 2007 Statutory Proforma £m £m Revenue 88.3 162.9 Operating profit 10.0 16.8 Add back: Amortisation 13.3 25.2 Depreciation 0.9 1.6 Normal EBITDA 24.2 43.6 Profit share and discretionary bonuses 5.0 Share based payments 4.4 Adjusted EBITDA 53.0 (1) Statutory
Slide 29: KPIs - Internet
KPIs - Internet 2007 FY 2006 FY Growth Group Visitors (m) 91.0 59.1 54% Transactions (m) 58.2 38.2 52% Revenue (£m) - Click-based 124.9 73.2 71% Revenue (£m) - Total 152.0 92.5 64% RPV (£) £1.67 £1.24 35% RPT (£) £2.15 £1.91 13% 29
Slide 30: KPIs – Verticals
KPIs – Verticals H1 H2 FY H1 H2 FY 2007 2007 2007 2006 2006 2006 Money Visitors (m) 14.0 13.7 27.7 11.6 11.6 23.2 Transactions (m) 6.1 6.5 12.6 5.6 5.4 11.0 Revenue (£m) - Click-based 28.9 31.8 60.8 17.4 20.3 37.7 Revenue (£m) - Total 38.3 39.7 78.0 24.0 28.7 52.7 RPV £2.74 £2.90 £2.82 £2.07 £2.49 £
Moneysupermarket.com Group — FY2007 Earnings Presentation on 6ix