Slide 1: Investor overview 2017
Investor overview 2017 May 2017 “Helping every household make the most of their money”
Slide 2: Disclaimer
Disclaimer This document is for information only, does not constitute or form part of and should not be construed as, an offer, or invitation, or solicitation or an offer, to subscribe for or purchase any securities in any jurisdiction or an inducement to enter into investment activity. This documen
Slide 3: Company at a glance
1993 We started out life as mortgage 2000 920 22M Providers Adults chose to share their private data with us £1.8B SAVINGS 2016 estimated total £316M savings by the UK 23m Revenue 2015 Estimated unique monthly users in 2015 3
Slide 4: The best place for people to switch & save
The best place for people to switch & save • Strong and diversified positons in markets worth £1.6bn and growing • Great opportunities for further growth as consumers continue to shift online to save money on their household bills and financial products • Technology investment aims to accelerate our
Slide 5: Strong record of revenue and profit growth
Strong record of revenue and profit growth Revenue / £M EPS / P Adjusted Operating Profit / £M Operating Cash Flow / £M AOP definition Operating profit adjusted for the amortisation of acquisition-related intangible assets, contingent payable in relation to the acquisition of MoneySavingExpert.com a
Slide 6: Brands: MoneySavingExpert.com and Moneysupermarket
FINANCE PORTANT BUDGET Man [COM PARE sine) IFFICULT HN u ~ BANKS Q ora “in WS eROgKS SME CORR SENSIBLE At j = “HONEY tL w= G00D wt OAREFUL i M ke Super © lan \ MoneySavingExpert.com loneysupermarket a
Slide 7: How does price comparison work
How does price comparison work Example Car Insurance c. 60+ questions for car insurance. Results page sorted by Customer preferences Creates a very rich data asset Legally binding quotes inside a minute Deep link to over 100 providers Price comparison websites largest route to market for new or swit
Slide 8: How does price comparison work
How does price comparison work Example Pre approved credit Cards 8
Slide 9: We offer customers a great way to save money & providers an effective way to build their business
We offer customers a great way to save money & providers an effective way to build their business Customers Providers 23M unique monthly users 980+ Providers Unbiased best product tables delivered free to the customer Success based marketing fee payable Free tools and guides Access millions of consu
Slide 10: Customers keep saving year after year
Customers keep saving year after year Structural growth opportunity across the Group Jan 2015 Jan 2016 Jan 2017 Product Average Product Average Product Average Average Policy MSM Saving Average Policy MSM Saving Average Policy MSM Saving Car Insurance £958 £455* £1014 £488* £1081 £569* Average Cheap
Slide 11: Our Vision: To help every household make the most of their money
Our Vision: To help every household make the most of their money Best Site - Be the easiest way for customers to find providers’ products Earn Customer Loyalty - Be the destination brand for users and customers Preferred partner - Be the best way for providers to acquire customers 11
Slide 12: 2016 Split by vertical
UK’s largest independent comparison site UK’s biggest consumer advice website Leading travel metasearch site 2016 FY revenue £285M 2016 FY revenue £37M 2016 FY revenue £22M 7M average monthly unique users 14M average monthly unique users 3M average monthly unique users 6M Savers Subscriber database
Slide 13: Our operating model FY 2016
Our operating model FY 2016 Revenue 100% Online marketing and partnership Paid search, Retargeting, -20% costs Partnerships Brand spend – TV, Radio, Creative Advertising -9% production Cash back, CRM, Content, Social Other marketing/PR -7% Marketing, Organic Search, Cash-back Total Marketing Costs 3
Slide 14: Our core markets are worth c.£1.6bn, growing at 11%
Our core markets are worth c.£1.6bn, growing at 11% Insurance £1000m Money £450m +11% GROWTH 2016 Home Services £150m Source: Based on internal data and external sources Note: £ relates to PCW revenue 14
Slide 15: Insurance: Growing robustly by 11% in 2016
Insurance: Growing robustly by 11% in 2016 Home, Motor and Travel Insurance CAGR 2012 – 2016 72 +7% MSM sales new / switching Volume of products / millions 26 23 +4% Online sales new / switching Online Competition Online includes three other material aggregators (Confused.com, CompareTheMarket.com a
Slide 16: Money: Removing barriers for consumers
Money: Removing barriers for consumers Cards & Loans CAGR 2012 – 2016 44 +16% MSM sales new / switching Volume of products / millions +15% Online sales new / switching 6 22 M 3 Online Competition Apart from Moneysupermarket, the online market is predominantly direct sales on bank, credit card and lo
Slide 17: Energy: Significant market opportunity
Energy: Significant market opportunity Energy CAGR 2014 – 2016 50 +52% MSM sales new / switching Volume of products / millions +24% Online sales new / switching 4 3 Online Competition Apart from Moneysupermarket, the online market is a mix of other aggregators and direct sales by providers 1.5 0.6 2
Slide 18: Three year + £60M technology investment programme
Three year + £60M technology investment programme Fusion Platform • Single technology platform powering all brands • Open source code • Cloud hosted Application Enterprise Data Content Aggregation Engine Program Interface Warehouse Management System 18
Slide 19: Search and serve model with data and personalisation
Search and serve model with data and personalisation 2009 2016 Technology enabler • Single view of the customer • Agile Content Management system • Service for customers to search • Results that go beyond price • Static best buy table • Increasingly we will deliver customers recommendations based on
Slide 20: Priorities: Growth & a progressive dividend
Priorities: Growth & a progressive dividend £ Organic Growth Ordinary dividends Acquisitions Special distribution • Group will borrow to fund growth investments, not to finance distributions to shareholders • Return a further £40M during 2017 through share buy back 20
Slide 21: Appendix
21 Appendix Moneysupermarket a Group
Slide 22: Full year themes
Full year themes Diversified business operating in attractive growth markets • 12% revenue growth, and exiting the year strongly, led by Insurance • Increased diversity with great market positions in Insurance, Money and Home Services • Core markets worth c£1.6bn and growing at 11% Continued investm
Slide 23: We continue to grow our diversified business
We continue to grow our diversified business 23
Slide 24: Revenue growth converted to profit
Revenue growth converted to profit £Millions FY 2016 FY 2015 Growth Revenue 316.4 281.7 +12% Gross Margin 75% 80% Adjusted EBITDA 120.8 110.1 +10% EBITDA margin % 38% 39% Depreciation & Software Amortisation (13.0) (10.0) Adjusted Operating Profit * 107.8 100.1 +8% Adjusted Operating Profit margin %
Slide 25: Profitable growth from up-weighting online marketing
Profitable growth from up-weighting online marketing Marketing Spend Revenue by source FY FY FY £316m £Millions £282m 1% 2016 2015 (%) £300 1% Offline spend 28.7 25.8 +11% 22% £250 15% Online spend 62.8 45.5 +38% £200 millions Other 5.6 8.4 -33% £150 77% 84% Total Group 97.1 79.7 22% £100 Marketing
Slide 26: Unique monthly users
Unique monthly users Monthly Unique Users 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Source: Google Analytics 26
Slide 27: Cash and capital update
Cash and capital update • We incurred software amortisation costs of £11 million this year. We expect technology amortisation to be in the region of £17 million for 2017 • We expect to make capital investment of up to £17 million in 2017 • Amortisation of the intangible assets related to the pre IPO
Slide 28: Statutory balance sheet
Statutory balance sheet £Millions 31-Dec-16 31-Dec-15 Property, Plant And Equipment 7.5 8.7 Intangible Assets - Technology 37.8 28.1 Intangible Assets - Acquisition related 119.8 135.8 Investments 0.5 - Trade and Other Receivables 39.3 32.4 Cash and Cash Equivalents 44.6 16.7 Total Assets 249.5 221.
Slide 29: Perceptions and realities
Perceptions and realities Perceptions: Insurance is a mature market The barriers to entry are low The core competitor group is unchanged Insurance delivered 11% YOY revenue growth 2016 Deep relationships with providers needed to deliver personalised results rather than just Insurance include
Slide 30: Helping every household make the most of their money
Helping every household make the most of their money 30