Personal Group Holdings Plc · LSE:PGH
Personal — FY2023 Earnings Presentation
17 slides from Personal's earnings presentation, March 2024
Slide 1: Preliminary Results & Strategy Update
PERSONAL GROUP HOLDINGS PLC Preliminary Results & Strategy Update March 2024
Slide 2: Introductions and Agenda
INTRODUCTIONS AGENDA • Financial review - Sarah Mace • Progress & Opportunities– Paula Constant Paula Constant - • Q&A Sarah Mace - CFO CEO 2
Slide 3: Personal Group at a Glance
PERSONAL GROUP AT A GLANCE ADJUSTED EBITDA CONTRIBUTION ABOUT US BENEFITS OTHER OWNED We provide affordable benefits and services PLATFORM BENEFITS focused on improving employee health, wellbeing Delivered directly Access to consumer and engagement to 1.6 million employees, helping & through partner
Slide 4: Financial Review
FINANCIAL REVIEW Sarah Mace I Chief Financial Officer
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS 35% increase in EBITDA, driven by growth in insurance contribution Strong H2 performance Final dividend Dec 23 Dec 22 • Final dividend of (restated) Change 5.85p announced – £m £m 11.7p full year, up 10% Insurance Revenue 28.7 25.4 +13% • Year on year EBITDA growth (2022: 10.6p)
Slide 6: Segmental Analysis
SEGMENTAL ANALYSIS We report our results under 4 core segments: Segment Description Income streams Insurance A directly owned benefit; provision of simple insurance products Premium income underwritten by group subsidiaries Benefits Provision of a benefits platform to employers both directly and Dig
Slide 7: Segmental Analysis
SEGMENTAL ANALYSIS Underlying growth continues – recurring revenue streams up 14% Revenue Dec 23 Dec 22 Change ARR/API ARR/API Change Adj EBITDA Dec 23 Dec 22 Change £m £m % Dec 23 Dec 22 % Contribution £m £m % Insurance* 28.7 25.4 +13% £31.6m £28.0m +13% Insurance* 11.2 9.0 +24% Benefits Platform 6
Slide 8: CFO Key Messages
CFO KEY MESSAGES Underlying growth Insurance CLICK continues: TO EDIT MASTER CLICK TO EDIT MASTER contribution TEXT STYLES TEXT STYLES API up 13% continues to Body copy Body copy ARR up 20% strengthen Remain in strong financial position for future growth 8
Slide 9: Opportunity and Progress
OPPORTUNITY AND PROGRESS Paula Constant I Group Chief Executive
Slide 10: What's Great About the Business (a recap)
WHAT’S GREAT ABOUT THE BUSINESS (a recap) STRONG INSURANCE SAGE PARTNERSHIP TRANSFORMATIONAL SAAS BUSINESS • 80%+ year on year retention • Live on Hapi 2:0 (200+ clients) • 4,100+ clients • Steadying claims / churn rates • Migrated 600+ Sage clients • 60,000 employees • Best-ever day, month, year •
Slide 11: 6 Months In
6 MONTHS IN…… STRATEGY SALES SIMPLIFICATION • Market segmentation exercise • Lead segmentation • Senior leadership team reorg • Future for Benefits platform • Lead conversion • Streamlined operations • Market size for insurance today • Insurance productivity • Removing work and rework • Future for I
Slide 12: Benefits Platform Findings
BENEFITS PLATFORM FINDINGS STRONG OFFER for PLENTY TO GO AT CLIENTS ARE STICKY SME/mid-Enterprise SME and mid-Enterprise single / no source Cross-sell is vital We can win with certain features • Dominant platform recognised • 50%+ SMEs: no single benefits • Monetise platform by SMEs via SAGE solutio
Slide 13: Existing Insurance Target Market
EXISTING INSURANCE TARGET MARKET SICK PAY PROVISION IS EMPLOYERS WANT F2F WITH TARGET SECTORS PLAY TO LIMITED BENEFITS PLATFORM BLUE COLLAR BASE Exaggerated in blue collar markets PG unique in market We must capitalise on unique offers • 10m no/partial sick pay (employees) • Unique: no one else prov
Slide 14: Insurance Options to Explore
INSURANCE OPTIONS TO EXPLORE FINDINGS FROM CUSTOMER POTENTIAL OPTIONS TO EXPLORE RESEARCH Employers under pressure to respond 1 • Death in service provided for Low-cost treatment cash plans &/or most; less for blue collar PMI &/or other core health benefits • Increasing public pressure on employers
Slide 15: Outlook
OUTLOOK Paula Constant I Group Chief Executive
Slide 16: Three Key Takeaways
THREE KEY TAKEAWAYS 1. 2. 3. Strong, repeatable Large addressable Clear options for business, playing in target market strategic growth to the right segments maximise shareholder value 16
Slide 17: Questions
QUESTIONS 17
Personal Group Holdings — FY2023 Earnings Presentation on 6ix