Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2012 Earnings Presentation
38 slides from Mony's earnings presentation, Mar 5, 2013
Slide 1: Preliminary Results
Preliminary Results Helping every household to 5 March 2013 make the most of their money
Slide 2: Gerald Corbett - Chairman
Gerald Corbett - Chairman • Revenue up 15% • Profits up 26% • Dividend up 30% • Market share increased • MoneySavingExpert.com now part of the group 2
Slide 3: Finance Update
Finance Update Paul Doughty – Chief Financial Officer 3
Slide 4: Summary financial highlights
Summary financial highlights Strong trading results; final dividend increased by 30% • Strong trading results • Adjusted revenue 15% ahead (14% excl. MSE) • Adjusted EBITDA 26% ahead (21% excl. MSE) • Improvements in marketing efficiency delivering operational leverage • Revenue growth on flat offli
Slide 5: Strong trading results
Strong trading results Operating margins increased MSM MSM MSE Group 2012 2011 Variance 2012*** Consol. 2012 Variance £m £m % £m Adjs £m % Revenue 203.0 178.5 14% 3.9 (2.1) 204.8 15% Gross Profit 147.9 128.4 15% 3.8 – 151.7 18% Gross Margin 72.8% 71.9% 97.7% 74.1% Administrative Costs (53.8) (46.1)
Slide 6: Adjusted EBITDA
Adjusted EBITDA EBITDA margins improved to 32% £1.7m £17.8m £2.8m £66.5m (£4.6m) £0.7m (£0.7m) (£3.7m) Restated: £52.5m +£3.0m £49.5m MSM Gross Profit +£19.5m MSM Cost Base +£8.3m 2011 Volume Margin Staff costs Offline media Other admin Irrec VAT MSE EBITDA 2012 6 6
Slide 7: Direct to site share of revenues increased
Direct to site share of revenues increased DTS revenues up by £17m; Offline media spend flat Revenue by source Revenue by vertical 240 100% £m 9 4 11 1.8 200 22 13.1 MSE 22 22 12.1 13.3 17.3 Travel 160 9.9 14.8 Home Services / Other 40.1 Partners 120 37.8 Money - non credit SEM Money - credit 69 74
Slide 8: Insurance 2012
Insurance 2012 Strong and consistent revenue growth • Revenues increased 17% against last year – Growth across major product lines – Other revenues £4.0m (38%) ahead of same period last year • Life insurance change of model • Revenue growth driven by – 14% increase in visitors • Effective media camp
Slide 9: Money 2012
Money 2012 Strong H1; H2 structural impact from Funding for Lending Scheme • Revenue increased 9% over 2011 – H1 – 19% growth – H2 – 2% decline • Structural impact of Funding for Lending Scheme – Credit revenues 6% ahead over the year • Credit revenues 4% ahead in H2 – Non credit revenues 17% ahead
Slide 10: Home Services 2012
Home Services 2012 Utilities revenues stronger into H2 • Revenues 24% ahead of last year – H1 revenues broadly flat – H2 revenues 40% ahead of same period last year • Significant price rises in domestic energy Q3/Q4 • Visitors increased 12% against last year • RPV increased 11% – Sales mix and impro
Slide 11: Travel 2012
Travel 2012 Trading improving throughout the year • Revenue down 2% to £13.1m - H1 -7%, H2 +5% • Package holidays continued to benefit from technology investments made in 2011 - Car hire and hotels improving • Continue to see opportunity for growth in travel - Area of investment in 2013 H1 2012 H2 2
Slide 12: MoneySupermarket marketing investment
MoneySupermarket marketing investment Improving returns FY 2010 FY 2011 FY 2012 £m % £m % £m % Online 43.2 69% 50.5 65% 55.1 68% Offline 19.0 31% 27.0 35% 26.0 32% Total 62.2 77.5 81.1 Revenue 148.6 177.8 203.0 Margin per visitor % 58% 56% 60% • Marketing efficiency improved • Offline expenditure le
Slide 13: MoneySavingExpert.com
MoneySavingExpert.com Good fourth quarter; Focussing of Group activities • MoneySavingExpert.com • Acquisition completed 21 September 2012 • Trading since acquisition reflective of MoneySupermarket trading • Utilities revenue significantly ahead; Savings revenue weaker • Visitor numbers and email si
Slide 14: Cash
Cash Cash generation remains a key strength of the business • Cash balances of £18.7m at 31 December 2012 • £65.2m of cash generated before capex, tax, dividends and MSE acquisition – 97% of EBITDA converted to cash • 2011 final dividend of £15.4m paid in April; interim dividend of £9.3m paid in Sep
Slide 15: Dividends
Dividends Final dividend increased by 30% Dividend – p/share 2012 2011 2010 Interim 1.8 1.5 1.3 Final 3.94 3.03 2.53 Total Dividend Declared 5.74 4.53 3.83 Special Dividend 3.93 TOTAL 5.74 8.46 3.83 • Progressive dividend policy – Interim dividend increased by 20% to 1.8p – Final dividend increased
Slide 16: Summary
Summary • Strong trading results • MoneySavingExpert.com has made a solid start under MSM ownership • Continued strong cash generation • Dividends • Final dividend increased by 30% to 3.94p per share • Total dividend of 5.74p per share 16
Slide 17: Business Update
Business Update Peter Plumb – Chief Executive Officer 17
Slide 18: Happy Old Year
Happy Old Year. You may not know this but last year, with a little help from us, you saved £1 billion. That’s 1 thousand million or 1.000,000,000 or 30 opening ceremonies. Well done on that. Seriously, well done Britain. So although Osborne, Merkel and pretty much any newspaper we picked up was tell
Slide 19: 2012: good year for the group
2012: good year for the group Revenue +15% and adj. EBITDA +26% • MoneySupermarket.com Group strengthened through diversity • Structural growth in business streams • Insurance, Money, Energy and Holidays • Savings impacted through H2 by government Funding For Lending scheme • Invested for future gro
Slide 20: MoneySupermarket.com
MoneySupermarket.com Revenues +14% driven by efficient offline and online campaigns 1 in 5 households saved ...revenues +14% with ... high margin revenue money with MSM … flat offline marketing… sources grew faster Customers PCWs offline marketing SEO & CRM saved £1Bn in 2012 spend* £M Revenue growt
Slide 21: MoneySupermarket.com leads competitors
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 01/08/2009 01/09/2009 01/10/2009 01/11/2009 01/12/2009 01/01/2010 Beat That Quote moneyextra.com 01/02/2010 01/03/2010 01/04/2010 01/05/2010 01/06/2010 01/07/2010 01/08/2010 01/09/2010 01/10/2010 Compare the Market 01/11/2010 MoneySupermarket.com 01/12
Slide 22: Credit Cards is live on our new shop platform
Credit Cards is live on our new shop platform Money channels lead the rollout of our technology investment 2012 Credit Card Shop 2013 Credit Card Shop 22
Slide 23: MoneySavingExpert.com
MoneySavingExpert.com Business strengthened in Q4 1 in 7 adults now ...TV appearances build …the UK’s eighth most subscribe to Money Tips… the brand… popular social network** … Email Money Tips Martin Lewis Money Show MSE Forum Subscribers 8M Audience 3M* Monthly visits 12M 23 * Audience data based
Slide 24: Best tariff switching at MSE Energy Club
Best tariff switching at MSE Energy Club MSE fights for customers, MoneySupermarket finds best tariffs MSE Energy Club sign up … MSM handles transaction and personalised alerts… but customers remain MSE MoneySavingExpert MoneySupermarket 24
Slide 25: Customers can save +£1000 at MSM in 2013
Customers can save +£1000 at MSM in 2013 Fuelling continued structural growth across our business Jan 2011 Jan 2012 Jan Jan2013 2013 Best Product/ Average Best Product/ Average Best Product/ Average Average Policy MSM Saving Average Policy MSM Saving Average Policy MSM Saving Car Insurance £1150 £28
Slide 26: Outlook
Outlook • Group revenues +11% including MSE – MoneySupermarket.com: current trading +9% • Insurance: good growth • Money: savings drag due to government Funding For Lending scheme • Energy: good growth – MoneySavingExpert.com: current trading flat – TravelSupermarket.com: current trading +10% • Cont
Slide 27: Questions & Answers
Questions & Answers 27 MoneySupermarket (3)
Slide 28: Appendix Additional Financial Materials
Moneysupermarket.com Group Plc Appendix Additional Financial Materials 28
Slide 29: Adjusted EBITDA
Adjusted EBITDA Reconciliation from statutory revenue and operating profit to adjusted EBITDA FY FY 2012 2011 Var. Var.% Revenue 204.8 181.0 23.8 13% Gross Profit 151.7 130.9 20.8 16% Margin % 74% 72% Administrative costs (89.7) (77.1) (12.6) 16% Distribution Costs (30.5) (29.8) (0.7) 2% Operating P
Slide 30: Group adjusted cost base
Group adjusted cost base 2012 v 2011, H2 2011 H1 2012 H2 2012 FY 2012 FY 2011 H2 2011 £m £m £m £m Variance Variance % £m Adjusted Cost Base (1) Staff Costs 16.5 18.3 34.8 30.0 4.8 16% 16.7 IT Contractors * 0.0 0.6 0.6 0.0 0.6 n/a 0.0 Depreciation 1.8 1.8 3.6 3.8 -0.2 -6% 1.8 Irrecoverable VAT 3.2 3.
Slide 31: Acquisition of MoneySavingExpert.com
Acquisition of MoneySavingExpert.com • Deal terms • Initial payment £65.5m - £35m cash/£30.5m equity (with initial equity subject to 3 year lock up). • Up to £27m deferred consideration payable 3 years from completion – 50/50 cash and equity* (with deferred equity subject to 3 year lock up, and tier
Slide 32: VAT 2012
VAT 2012 New Partial Exemption Special Method (PESM) • A number of the group’s services are classified as exempt (for VAT purposes) • Restricts the proportion of input VAT incurred on expenses (e.g marketing) that may be recovered by the Group • Recoverable proportion calculated by reference to a PE
Slide 33: VAT 2011
VAT 2011 Change in taxable treatment of supply of leads • A number of the group’s services are on the borderline of being a marketing service or an intermediary service • Marketing service – standard rated for VAT purposes • Intermediary service – exempt rated for VAT purposes • HMRC raised an asses
Slide 34: Impairment of acquisitions
Impairment of acquisitions FSN and LDD valuations reassessed FSN: • During 2010, the Group acquired 100% of FSN for £4.4m of upfront consideration, and £2.6m of contingent consideration, and identified £6.1m of intangible assets and £2.2m of goodwill within the business. • During 2011, the Group rel
Slide 35: Statutory balance sheet
Statutory balance sheet December 2012 June 2012 December 2011 £m £m £m Intangible assets 197.6 148.8 160.6 Other non-current assets 11.7 11.5 12.0 Net current assets 6.4 20.0 17.2 Long term liabilities (16.0) (19.9) (23.3) Net assets 199.7 160.4 166.5 Capital and reserves 199.7 160.4 166.5 • Intangi
Slide 36: KPIs – by vertical
KPIs – by vertical H1 H2 FY FY H2 2012 2012 2012 2011 Var 2011 Money Visitors ('m) 22.0 18.5 40.4 35.2 15% 17.2 Transactions ('m) 12.2 9.2 21.4 18.7 14% 9.4 Revenue (£m) - Click-based 30.3 23.5 53.8 48.3 11% 23.5 Revenue (£m) - Total 32.2 25.2 57.4 52.6 9% 25.6 RPV £1.47 £1.36 £1.42 £1.49 (5)% £1.49
Slide 37: KPIs – UK Internet
KPIs – UK Internet 2012 2011 Variance % H2 2011 2010 Visitors ('m) 146.2 130.2 12% 62.7 119.2 Transactions ('m) 67.4 64.8 4% 30.0 57.3 Click Revenue (£m) 183.3 162.2 13% 80.4 136.9 Other Revenue (£m) 18.9 15.5 22% 9.1 12.0 Total Revenue (£m) 202.2 177.7 14% 89.5 148.9 RPV £1.38 £1.36 1% £1.43 £1.25
Slide 38: Our House Model
Our House Model Strategic Roadmap 38
Moneysupermarket.com Group — FY2012 Earnings Presentation on 6ix