Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2010 Earnings Presentation
41 slides from Mony's earnings presentation, Mar 1, 2011
Slide 1: Preliminary Results 2010
Preliminary Results 2010 Helping every 1 March 2011 household to make the most of their money
Slide 2: Summary
Summary • Solid trading performance and good momentum • New team now in place for over 2 years • Clear direction • Cash and dividends – £36.5m cash – 15% increase in final dividend – Progressive dividend policy 1
Slide 3: Financial Review
Moneysupermarket.com Group Plc 2010 Preliminary Results Financial Review Paul Doughty - Chief Financial Officer 1 March 2011 2
Slide 4: Summary financial highlights
Summary financial highlights Strong and improving trading; final dividend increased by 15% • Strong revenue growth with momentum building throughout the year – FY +9% – H1 +5% H2 +13% • Significant investments made in brand and product in first half with good results – Gross margin improvements – Si
Slide 5: Strong trading results
Strong trading results Improvement into H2 2010 FY 2010 FY 2009 Variance Variance H2 2010 £m £m £m % £m Revenue 148.9 136.9 12.0 9% 77.3 Internet 148.9 136.0 12.9 9% 77.3 Intermediary 0.0 0.9 (0.9) -96% - Gross Profit 106.1 94.2 11.9 13% 55.0 Gross Margin 71.3% 68.9% 71.2% Administrative Costs * (43
Slide 6: Adjusted EBITDA
Adjusted EBITDA Sales and margin increased; investments in product and brand £3.8m £1.2m (£0.5m) (£0.8m) (£1.0m) £8.6m £0.3m (£3.3m) (£2.1m) (£1.3m) £41.0m £36.0m Margin £11.6m Cost Base (£6.6m) 2009 Volume Margin Prov rel Germany Staf f costs SBP Media 3rd Party Irrec VAT Other 2010 charges IT admi
Slide 7: Continued growth in direct to site revenues driving
Continued growth in direct to site revenues driving Growth in Insurance and Money verticals Revenue by source UK internet revenue by vertical 100% 100.0% 4.4 4.1 12 12 9.3 12 8.3 8.1 21 26 Home Services/Other 21.3 20 Travel Partners Money - other SEM 67 62 DTS Money - credit 56.7 55.8 Insurance 0% 0
Slide 8: Insurance 2010
Insurance 2010 Solid revenue growth; Motor fastest growing channel • Revenues increased 12% against last year – H2 revenues 13% ahead of same period last year – Growth across major product lines • Motor fastest growing major product line • Visitors increased by 6% over last year – H2 visitors 7% ahe
Slide 9: Money 2010
Money 2010 Trading improving throughout the year • Revenue increased 15% over 2009 – H2 revenues 20% ahead – Growth in both credit and other banking products • Availability of credit products to moneysupermarket – Uncapped or greater Provider budgets available – Credit cards fastest growing credit c
Slide 10: Home Services 2010
Home Services 2010 Utilities revenues stronger; visitor growth from Shopping and Vouchers • Revenues 12% ahead of last year – H2 revenues 14% ahead of same period last year • Visitors increased 32% against last year – Shopping and Vouchers • RPV declined 15% – Visitor mix – Shopping and Vouchers H1
Slide 11: Travel 2010
Travel 2010 Managed for margin • Revenue down 14% to £13.9m – Weakness in demand for discretionary weekend type travel • Hotels and Flights channels impacted • Package Holidays holding up – Improvement in H2 with Revenue down 6% • Visitors down 12% on 2009 • RPV broadly consistent with FY 2009 • New
Slide 12: Marketing spend remains efficient
Marketing spend remains efficient Offline marketing a greater proportion of total spend FY 2007 FY 2008 FY 2009 FY 2010 £m % £m % £m % £m % Online 46.1 73% 56.8 75% 42.4 73% 42.8 69% Offline 17.0 27% 19.0 25% 15.6 27% 19.0 31% Total 63.1 75.8 58.0 61.8 Visitors (m) 91.0 120.1 120.5 119.2 Rev per vis
Slide 13: Cash
Cash . Cash conversion remains a key strength of the business • Cash balances of £36.6m at 31 December 2010 • Dividends of £42.9m returned to shareholders £1.3m £1.2m £0.1m £24.2m £0.3m (£3.4m) (£4.3m) (£0.7m) (£9.8m) £4.9m £12.0m £53.8m (£42.9m) £36.6m Cash at Adj. Op. Deprec'n Amortis'n 2009/10 In
Slide 14: Dividends
Dividends Final dividend increased by 15% Dividend – p/share 2010 2009 2008 Interim 1.3 1.3 1.3 Final 2.53 2.2 2.2 Total Dividend 3.83 3.5 3.5 Special Dividend 9.84 TOTAL 3.83 13.34 3.5 • Dates – Ex Div Date – 6 April 2011 – Payment Date – 13 May 2011 • Board committed to adopting a progressive divi
Slide 15: Moneysupermarket.com Group Plc 2010 Preliminary Results
Moneysupermarket.com Group Plc Moneysupermarket.com Group Plc 2010 Preliminary Results Peter Plumb – Chief Executive Officer 1 March 2011 14
Slide 16: Agenda
Agenda • 2010 review: delivering on our growth strategy • Travel: re-launch • Priorities & Outlook: 2011 Q1 trading growth and market trends • Questions 15
Slide 17: Investments delivered growth in 2010
Investments delivered growth in 2010 New sites and a new campaign grew revenues and gross margin • Focused investment programme – Marketing: “Haggle Hero” campaign – Sites: New core sites now built internally – Acquisition: FSN • Continued focus on costs – Headcount managed to 421 vs 441 Jan 10 • De
Slide 18: We continue to lead this competitive market
We continue to lead this competitive market Better customer targeting resulted in revenue growth ahead of visitor growth Hitwise Share of moneysupermarket.com visitors 17
Slide 19: Road map
Road map The business strategy set out in 2009 continues to serve us well 18
Slide 20: Best Shop
Best Shop: We start 2011 with new Motor, Home, Cards, Energy, Savings and ISA sites New Home and Savings ...H2 builds were energy ... Smart Search fully delivered strong growth in H2... and ISAs… implemented Jan 2011 Home Insurance +19% Energy Credit card Smart Search Savings +44% ISAs 19 19
Slide 21: Best Product
Best Product: Market Insight tools have been rolled out to Card and Motor providers MI self-serve tool for More money products providers than 2010 2010 2011 Cards Savings Loans Source: Internal Jan/Feb 2011 vs. 2010 20
Slide 22: Data
Data: Data is driving CRM programme momentum Step changed communications ... best practice motor rolled … whilst testing new with customers… out to home and cards… channels Communications per week Jan 11 vs Jan 10 2010 2011 Source: Internal reporting 21
Slide 23: Brand: media spend
Brand: Media spend for the sector slowed slightly behind media inflation of 12% Media spends slowed ... whilst our “Haggle Hero” through 2010... campaign gained momentum. Sector Media Spend* £M +14% +9.6% 43.0m 42.2m 37.7m 38.5m H1 2009 H1 2010 H2 2009 H2010 Comparethemarket Gocompare Confused Money
Slide 24: Brand: Haggle Hero advert
Brand: Our latest “Haggle Hero” advert launches today 23
Slide 25: Brand: Sponsoring Britain's Got Talent
Brand: Sponsoring Britain’s Got Talent through Q2 24
Slide 26: Brand: FSN acquisition
Brand: FSN acquisition provides a strong platform for brand extension 25
Slide 27: travelsupermarket.com
travelsupermarket.com The relaunch is on track New Holiday site offers ...with TV support, early share market leading choice… gains are encouraging Hitwise: weekly travel visitors 26
Slide 28: 2011 priorities
2011 priorities Keep investing in business growth drivers • Sites – Loans: best practice and innovation – Travel: innovate new channels – FSN: develop suite of sites – Stay ahead: development speed capability • Data/CRM – Test and learn new CRM technologies to drive DTS – Expand provider Market Insi
Slide 29: 2011 Outlook
2011 Outlook Early Q1 trading is good with continued momentum • moneysupermarket.com: approx + 20% growth Jan/Feb – Insurance: Premium inflation continues – Money: Early strong provider appetite – Home services: High energy prices • travelsupermarket.com: re-launch on track – International travel: M
Slide 30: Questions & Answers
Moneysupermarket.com Group Plc Questions & Answers 29
Slide 31: Appendix A: Additional Financial Materials
Moneysupermarket.com Group Plc Appendix A Additional Financial Materials 30
Slide 32: Adjusted EBITDA
Adjusted EBITDA Reconciliation from operating profit to adjusted EBITDA H1 H2 FY FY H2 2010 2010 2010 2009 Var. Var.% 2009 Revenues Internet 71.6 77.3 148.9 136.0 12.9 9% 68.2 Intermediary 0.0 0.0 0.0 0.9 (0.9) (96)% 0.2 Total 71.6 77.3 148.9 136.9 12.0 9% 68.4 Gross Profit 51.1 55.0 106.1 94.2 11.9
Slide 33: Adjusted cost base
Adjusted cost base 2010 v 2009, H2 2009 H1 2010 H2 2010 FY 2010 FY 2009 H2 2009 £m £m £m £m Variance Variance % £m (1) Adjusted Cost Base Staff Costs 12.2 12.5 24.7 25.4 -0.7 -3% 12.4 IT Contractors 1.6 0.7 2.4 1.5 0.9 57% 1.3 Depreciation 2.4 2.5 4.9 4.4 0.5 10% 2.4 Irrecoverable VAT 3.1 3.9 7.1 5.
Slide 34: Adjusted cost base
Adjusted cost base Investments in technology and brand, staff cost savings over 2009 £0.9m £3.3m (£0.7m) £1.5m £2.1m (£0.8m) £0.9m £0.5m £112.7m £105.2m 2009 Depreciation Third party IT Irrecoverable Other Admin Staff Costs Offline Internet Intermediary 2010 resource VAT Marketing Marketing Marketin
Slide 35: Acquisition of Financial Services Net Limited
Acquisition of Financial Services Net Limited £4.4m upfront payment, value within intangible assets Assets Acquired: £'000 Consideration: £'000 Book value net assets 89 Initial consideration 4,330 Intangible assets identified 6,083 Net assets fair value 82 Deferred tax liability (1,145) Contingent c
Slide 36: Statutory balance sheet
Statutory balance sheet December 2010 June 2010 December 2009 £m £m £m Intangible assets 182.5 185.9 198.5 Other non-current assets 10.7 11.6 12.1 Net current assets 26.6 25.2 49.1 Long term liabilities (32.2) (35.2) (39.0) Net assets 187.6 187.4 250.0 • Intangible assets include £55m of goodwill an
Slide 37: Accounting information
Accounting information Share option charges • Pre-IPO – 13.6m unapproved options issued 2007. Remaining options (1.5m) vested Feb 2010. – 0.3m Chairman award issued 2007 vested Feb 2010. – 0.9m SIP awards issued in 2007 vested July 2010 – Black Scholes Model used to calculate charge and then adjuste
Slide 38: Accounting information
Accounting information Share options(cont’d) • Post-IPO – 8.3m LTIPs options issued in April 2009 which vest in 2012 with an exercise price of nil – 4.3m LTIP options issued in April 2010 which vest in 2013 with and exercise price of nil – Post IPO options are included as a charge against adjusted E
Slide 39: Accounting information
Accounting information Tax • Tax charge of £3.3m giving effective rate of 30% – Higher than statutory tax rate of 28% – £0.6m trapped losses in Germany for which no deferred tax credit is recognised, consistent with prior periods 38
Slide 40: KPIs – by vertical
KPIs – by vertical H1 H2 FY FY H2 2010 2010 2010 2009 Var 2009 Money Visitors ('m) 17.3 14.5 31.8 35.2 (10)% 16.1 Transactions ('m) 6.5 7.1 13.6 11.7 16% 5.9 Revenue (£m) - Click-based 17.9 21.3 39.2 32.8 20% 17.0 Revenue (£m) - Total 20.7 23.3 44.0 38.1 16% 19.5 RPV £1.20 £1.61 £1.39 £1.08 28% £1.2
Slide 41: KPIs - Group
KPIs - Group FY 2010 FY 2009 Variance % Visitors ('m) 119.2 120.5 -1% Transactions ('m) 57.3 58.9 -3% Click Revenue (£m) 136.9 121.5 13% Other Revenue (£m) 12.0 14.1 -15% Total Revenue (£m) 148.9 135.6 10% RPV £1.25 £1.13 11% RPT £2.39 £2.06 16% 40
Moneysupermarket.com Group — FY2010 Earnings Presentation on 6ix