Ten Lifestyle Group Plc · LSE:TENG

Ten Lifestyle — FY2019 Earnings Presentation

29 slides from Ten Lifestyle's earnings presentation, November 2019

Slide 4: Investment case
Investment case Huge market Established Defendable opportunity market leader market position • • • best way to organise for technology-enabled long-term contracts travel, entertainment, concierge services with ROI, closed user dining and lifestyle group model and integrated tech Welcome. Technology
Slide 5: 2018/2019 Highlights
2018/2019 Highlights Net Revenue* up 23% to £45.8m Record member satisfaction globally † Two contracts grew to Extra Large ("XL") Another contract to grow to XL, launching in Q2 19/20 Significant new wins, including in new verticals Welcome. Digital platform continues to lead market globally, live i
Slide 7: Our Revenue Model
Our Revenue Model Typical Contract High-touch Requests ££ Per High-touch Welcome. Low-touch Requests £ Per Low-touch Total Corporate Client Revenue Subject To Cap + Collar Source: Audited FY19 IFRS figures 7 © Copyright Ten Lifestyle Group 2019. All rights reserved.
Slide 8: Key Financial Highlights
Key Financial Highlights Net Revenue up 23% to £45.8m (2018: £37.4m) 18% in EMEA 38% in the Americas 11% in APAC ‡ Adjusted EBITA loss of £(4.3m) (2018: £(3.9)m) Adjusted EBITA margin: (9.4)% (2018: (10.4)%) Welcome. Loss before tax of £(7.3)m (2018: £(8.5)m) § Cash outflows in H1 of £7.5m ; signifi
Slide 9: Income statement
Income statement £m 2019 2018 YOY change £m £m Strong Net Revenue growth +23% Revenue 49.1 40.1 9.0 Net Revenue 45.8 37.4 8.5 Adjusted EBITA of £(4.3)m driven by investment in Operating expenses and Other income (50.1) (41.3) (8.9) technology, infrastructure and content, supports future Adjusted EBI
Slide 10: Net Revenue
Net Revenue Net revenue growth 2018 to 2019 (£m) Overall growth was 23% 4.8 1.2 45.8 Annualised growth from contracts launched in 2.9 37.4 (0.6) 17/18 account for over a third of growth Organic growth accounts for over half the growth Welcome. One Large contract lost in H2 as client in-housed New co
Slide 11: Net Revenue by region
Net Revenue by region Net Revenue £m 2019 2018 % change EMEA 20.5 17.4 18% Americas 15.8 11.4 38% APAC 9.5 8.6 11% 45.8 37.4 23% All regions grew by 10%+ Welcome. EMEA: • Growth driven primarily by both organic and annualised growth • Large contract grew to XL Americas: • Strong growth across existi
Slide 12: Continuing technology investment
Continuing technology investment Annual Cash Spend on Technology Platform, Communications and Infrastructure Continued investment in our technology (£m per FY) platform, IT, content, infrastructure and communications IPO £12.2m Built first Creates competitive advantage, drives platform £10.5m effici
Slide 13: Financial Results – Overall Adjusted EBITA
Financial Results – Overall Adjusted EBITA Adjusted EBITA EMEA: Adj. EBITA declined from 18% to 9%: operational efficiencies offset by allocation of central spend in content, £m 2019 2018 technology, central costs and infrastructure EMEA 1.9 3.1 Americas: Adj. EBITA loss improved by £2.1m. Growth he
Slide 14: Cashflow
Cashflow 2019 2018 £m £m Cash outflows significantly Loss before tax (7.3) (8.5) § Net finance expense - 0.5 decreased H2 (£0.8m) vs. H1 (£7.5m) Working capital changes 0.7 0.5 driven by: Non-cash items (share based payments, depreciation and amortisation charges) 4.5 4.4 • increased revenues Cash u
Slide 16: Operational Highlights
Operational Highlights Record member satisfaction globally Ten’s competitive proprietary digital platform established in all three global regions with 14 client brands £12.2m spent on proprietary digital platform, communications and technologies to enhance efficiency and member experience Welcome. O
Slide 18: Our Corporate Clients
Our Corporate Clients Visa RBS HSBC DNB (Norway) Maserati RBC OCBC American City National MI card Coutts CIBC SMTC Express Bank Adam & Mastercard Barclays NatWest SMBC ABSA Welcome. Company Merrill Hyundai Diners Club Tokyo Tokia Maserati Revolut Lynch Card SuMi AlphaCard SwissCard Scotiabank Bon Vi
Slide 19: Our Proposition
Our Proposition Benefits both member and corporate client. Member Desire Member Benefit Corporate Client Objectives – proven ROI Modern “I’m saving time” Delivering premium service grows revenue / profit Welcome. Rational “I’m saving money” Building trust and customer closeness grows sales Security
Slide 20: Client retention rates
Corporate partners commercially benefit from Ten’s services Client retention rates Other commercial metrics can also improve with Client retention rates pa (%) use of Ten’s services, including: Advocacy and retention Assets under management (AuM) Spend on related cards Welcome. Non users Low users H
Slide 21: Concierge-Driven Customer Behaviours Impact Revenue and Profit
Concierge-Driven Customer Behaviours Impact Revenue and Profit Engagement Principle with is - concierge Tena drives hard customer value, retention big idea and acquisition Incremental marginal contribution/customer Engagement drives soft customer metrics (NPS, brand values, trust) Incremental revenu
Slide 22: Ten's Digital and Product Transformation
Ten’s Digital and Product Transformation 1. 2. 3. Creating a superb member experience Building resilience Driving efficiency and profitability • Member onboarding with interactive • Micro-service APIs# for flights, cars • Improved e-learning for Lifestyle e-CRM and video guides and hotels improves s
Slide 24: New Verticals
New Verticals Fintech: concierge drives revenue and profit Private Membership: builds revenue, brand for Ten and allows target customer acquisition for partner corporates TMT: helps retention, ARPU and profitability Welcome. Employee: helps retention, productivity and well-being Luxury brands: suppo
Slide 26: Clearly-Identified Pathways to Revenue Growth
Clearly-Identified Pathways to Revenue Growth Additional Geographies, Verticals and Clients Welcome. New Clients: New Clients: New Clients: Signed Contracts Contracts In Negotiation Pipeline Current Clients: Increased Current Clients: Increased Current Clients: New Users Usage Contracts Current Clie
Slide 27: Outlook and Regional Development – 2019/20
Outlook and Regional Development – 2019/20 The Board is confident that the Group is in a good position to meet its strategic growth objectives: underpinned by its competitive position; its differentiated proposition, as reflected in record member satisfaction ratings; and its market leading technolo
Slide 28: Building "The Most Trusted Service"
Member Led Building “The Most Trusted Service” Expert Quality Scale Member-led Expert quality Subscription Affluent+ Multi-category Focus Trust Welcome. Subscription Personalised Multichannel + tech driven Multi Channel Focus on Affluent and HNWI + Tech Multi Scale Driven category Personalised 28 ©

Ten Lifestyle Group — FY2019 Earnings Presentation on 6ix

Ten Lifestyle — FY2019 Earnings Presentation

Slide 1: Preliminary Results for Year to 31st August, 2019

Slide 2: Our Mission

Slide 3: Welcome

Slide 4: Investment case

Slide 5: 2018/2019 Highlights

Slide 6: Financial Results

Slide 7: Our Revenue Model

Slide 8: Key Financial Highlights

Slide 9: Income statement

Slide 10: Net Revenue

Slide 11: Net Revenue by region

Slide 12: Continuing technology investment

Slide 13: Financial Results – Overall Adjusted EBITA

Slide 14: Cashflow

Slide 15: Operational Update

Slide 16: Operational Highlights

Slide 17: Welcome .

Slide 18: Our Corporate Clients

Slide 19: Our Proposition

Slide 20: Client retention rates

Slide 21: Concierge-Driven Customer Behaviours Impact Revenue and Profit

Slide 22: Ten's Digital and Product Transformation

Slide 23: Welcome .

Slide 24: New Verticals

Slide 25: Outlook

Slide 26: Clearly-Identified Pathways to Revenue Growth

Slide 27: Outlook and Regional Development – 2019/20

Slide 28: Building "The Most Trusted Service"

Slide 29: Welcome .