Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — FY2020 Earnings Presentation
32 slides from Ten Lifestyle's earnings presentation, Nov 23, 2020
Slide 1: Preliminary Results for Year to 31 August 2020
Welcome. Preliminary Results for Year to 31 August 2020 November 2020 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 2: Our Mission
Our Mission To become the world’s most trusted service Welcome. 2 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 3: Investment Case
Investment Case Huge market Established Year-on-year opportunity market leader growth • • • “the best way to access for technology-enabled of revenue from our and organise dining, concierge services, long- corporate clients, despite travel and tourism, term and large corporate COVID-19, entertainmen
Slide 4: 2020 Highlights
2020 Highlights 1 Net Revenue down only 3.5% despite COVID-19; corporate revenue up 1.6% 2 Improved EBITDA from improved efficiencies and cost management Maintained a high level of investment in technology of £12.2m Net cash of £10m (2019: £12.3m), with increase in H2 Welcome. 3 Year-on-year record
Slide 5: Ten's Growth Engine
Ten’s Growth Engine Proposition, Profitability and Scale Welcome. 5 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 6: Financial Results
Financial Results Welcome. Preliminary Results for Year to 31 August 2020 More details at TENLIFESTYLEGROUP.COM/INVESTORS 6 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 7: Our Revenue Model
Our Revenue Model Typical Contract Supplier revenue 7% High-touch Requests ££ Per High-touch Welcome. Low-touch Requests £ Per Low-touch Revenue split Total Corporate Client Revenue Corporate revenue Long term contracts often with 93% agreed minimums Source: Audited FY20 IFRS figures 7 © Copyright T
Slide 8: Key Financial Highlights
Key Financial Highlights Net Revenue down 3.5% to £44.2m (2019: £45.8m) Corporate revenue increased 1.6% to £40.9m (2019: £40.3m) Supplier revenue decreased 40.3% to £3.3m (2019: £5.5m) - all in H2 Regional performance 7% growth in EMEA (largest region) 13% decline in the Americas 11% decline in APA
Slide 9: Income Statement
Income Statement Highlights Income Statement Operating expenses and other income (excluding IFRS 16 £m 2020 2019 YOY change £m £m £m impact of £3.8m) reduced by £5.9m as a result of: Revenue 46.4 49.1 (2.7) continuing operational efficiencies Net Revenue 44.2 45.8 (1.6) cost saving actions taken in
Slide 10: Net Revenue
Net Revenue Overall decline of 3.5% Net Revenue Growth FY 2019/20 vs FY 2018/19 (£m) Base business impacted by pandemic in H2 Supplier Revenue decline of £2.2m (-40.3%); all H2 45.8 (2.2) (3.1) 0.4 3.3 44.2 Base Corporate Revenue increased by £0.4m Welcome. Annualised impact of Large contract lost i
Slide 11: Net Revenue By Region
Net Revenue By Region Net Revenue By Region EMEA growth partly offset declines in APAC and Americas £m 2020 2019 % change £m £m EMEA EMEA 22.0 20.5 7% Growth from existing clients in our largest region Americas 13.8 15.8 -13% Large contract launched in September 2019 APAC 8.5 9.5 -11% Partially offs
Slide 12: Continue Technology Investment
Continue Technology Investment Invested £12.2m in 2020; £34.9m since IPO Annual Cash Spend on Technology Platform, Communications and Infrastructure (£m per FY) Continued investment in Ten Digital Platform, IPO 1st Ten TenMAID, IT, content, infrastructure and Digital communications Platform £12.2m £
Slide 13: Overall Adjusted EBITDA
Overall Adjusted EBITDA 5 This table reconciles from Adjusted EBITDA , as reported, of £4.8m to Adjusted EBITDA pre-IFRS 16 of £0.9m and provides a regional analysis for a like-for-like comparison to prior year (slide 14) Overall Adjusted EBITDA Group EMEA Americas APAC Adjusted EBITDA as reported I
Slide 14: Overall Adjusted EBITDA by Region
Overall Adjusted EBITDA by Region EMEA Improved by £4.7m. Corporate revenue growth, operational efficiencies and cost savings in H2 have Adjusted EBITDA Pre- IFRS 16 delivered improved margin (11% to 32%) £m 2020 2019 Americas £m £m Loss worsened by £1.5m. Reduced Net Revenue EMEA 7.0 2.3 together w
Slide 15: Cashflow
Cashflow Cashflow £m 2020 2019 £m £m Loss before tax (5.9) (7.3) Gross cash at end of year of £11m 0.5 - Net finance expense Working capital changes 2.9 0.7 Cash outflows of £1.4m decreased v’s prior year of £8.3m Non-cash items (depreciation and amortisation, share- based payments and exceptional i
Slide 16: Operational Update
Operational Update Welcome. 16 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 17: Operational Highlights
Operational Highlights Year-on-year record member satisfaction Improved member proposition Expanded a contract in Americas into an Extra Large contract 6 and won a Material Contract in Australia Ten Digital Platform live with 22 client brands (2019: 14) £12.2m (2019: £12.2m) invested in proprietary
Slide 18: Our Proposition
Our Proposition Ten's 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 insight grows
Slide 19: Corporate Partners Commercially Benefit From Ten's Services
Corporate Partners Commercially Benefit From Ten's Services Client Retention Rates Ten’s corporate partners improve customer acquisition and retention and grow customer value Client retention rates pa (%) Users are 3 times more likely to be retained as customers and more likely to advocate Users cor
Slide 20: Ten's COVID-19 Response Developed Our Proposition
Ten's COVID-19 Response Developed Our Proposition Pre-COVID-19 During COVID-19 Experience, Access, Value Help & Comfort, Locally Proactive response to individual’s Travel Inspiration Travel emerging needs, and Staycation 2021 bookings Welcome. behaviours. Lifestyle Virtual Events Member Dining *NPS
Slide 21: Welcome .
Welcome. © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 22: Our Corporate Clients
Our Corporate Clients Visa RBS HSBC DNB (Norway) Maserati RBC OCBC American City National MI card Coutts CIBC SMTC Express Bank Mastercard Barclays NatWest SMBC Welcome . ABSA Bank of China Merrill Hyundai Diners Club Tokyo Tokia Maserati Westpac Lynch Card SuMi AlphaCard SwissCard Scotiabank Bon Vi
Slide 23: Corporate Client Developments
Corporate Client Developments Effects of COVID-19 slowed new contract wins and development Corporate engagement remained strong across the year Response to client’s and their customers’ changing needs grew our status in the market Continued tech investment maintains competitive differentiation No ma
Slide 24: Ten's Digital and Product Transformation
Ten's Digital and Product Transformation Automation Ten Digital Platform TenMAID and comms Content 4x increase in requests live with 22 brands, Ten’s proprietary in-house content team that are fully automated 100+ countries, 15 customer relationship use editorial content and languages and 35 managem
Slide 25: Experience Ten digital platform through corporate or private membership
Experience Ten digital platform through corporate or private membership Welcome. https://ten-membership.com/ 25 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 26: New Verticals
New Verticals Private Membership Builds revenue, brand for Ten and allows target customer acquisition for partner corporates Test and Learn for potential rollout post COVID-19 TMT Launch still planned post COVID-19 Employee Slow in current economic climate Welcome. Luxury brands Being integrated int
Slide 27: Outlook
Outlook Welcome. 27 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 28: 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 29: Post COVID-19 Opportunities
Post COVID-19 Opportunities Our corporate clients need us more corporate entertainment, sponsorship, events, lounge access have failed Ten has worked, developing stronger relationships in the COVID-19 crisis banks and networks are strong and need their high value customers Our service suppliers need
Slide 30: Outlook 2021
Outlook 2021 Reduced Net Revenue until the effects of COVID-19 ease globally: Current trends continuing until pandemic effects have subsided corporate revenue generated from services from existing clients minimum fee agreements in place with some corporates Welcome. supplier revenue will revive only
Slide 31: Ten's Growth Engine: Growing Proposition, Profitability and Scale
Ten's Growth Engine: Growing Proposition, Profitability and Scale Welcome. 31 © Copyright Ten Lifestyle Group 2020. All rights reserved.
Slide 32: Welcome .
Welcome. For more insights, please • register for updates at tenlifestylegroup.com/investors • follow Ten Lifestyle Group and watch our B2B videos at www.linkedin.com/company/tenlifestylegroup/ © Copyright Ten Lifestyle Group 2020. All rights reserved.