Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — Investor Presentation (October 2018)
26 slides from Mony's investor presentation, October 2018
Slide 1: Investor overview
Investor overview October 2018
Slide 2: Disclaimer
Disclaimer This document is for information only. It does not constitute or form part of, and should not be construed as, an offer. It is not an invitation, or solicitation, or an offer to subscribe for or purchase any securities in any jurisdiction. It is not an inducement to enter into investment
Slide 3: £2.0bn £330M 72% NPS
1993 We started out life as mortgage 2000 £330M £2.0bn Revenue 2017 Estimated customer savings 2017 72% NPS 13M YouGov Brand Index Active Users in 2017 as of Jun-18 2018 Completed tech replatforming & launched the Re:Invent strategy
Slide 4: Strong record of profit growth and cash generation
Strong record of profit growth and cash generation Revenue (£M) EPS (p) Adjusted EBITDA (£M) Operating Cash Flow (£M) 4
Slide 5: Robust and differentiated core business model
Robust and differentiated core business model • 6-7% Core switching annual growth forecast 2018-20 Growing • Diversified revenue across categories (14 channels > £5m over the year) Markets • Opportunity to unlock further market growth • Market leading 72 NPS vs comparison average 65 Engaged • 13m Ac
Slide 6: Our business model, helping our customers save money
Our business model, helping our customers save money Trusted brands – Data driven aggregation – Provider relationships – Talent Customer data Efficient acquisition Data driven marketplace Customer Provider savings profitability Personalised quotes Personalised quotes Operational Operational leverage
Slide 7: The MoneySuperMarket customer journey
The MoneySuperMarket customer journey User friendly set of Results page sorted by questions Customer preferences Legally binding quotes inside a minute Deep link to over 100 car insurance providers Making it easy to switch and save 7
Slide 8: Market leading diversification
Market leading diversification H1 2018 Revenue split by vertical Leading and trusted brands 8% 13% 54% 25% Insurance - eg Car, Home, Life & Travel Money - eg Credit Cards, Loans & Current Accounts Home Services - eg Energy, Broadband & Mobile Other revenue * Note * Excludes Decision technology which
Slide 9: One of the UK's most trusted brands
One of the UK’s most trusted brands • 13 million people have signed up to receive the weekly email including deals, tips and money saving guides • Highest rated brand for advocacy in 2017 (YouGov Advocacy Rating 2017) • Ground-breaking money saving clubs and tools including Cheap Energy Club and Bro
Slide 10: HY 2018 - Our operating model
HY 2018 - Our operating model Revenue 100% Online marketing and partnership Paid search, Retargeting, -26% costs Partnerships Brand spend – TV, Radio, TV and Radio -8% Creative production Cashback, PR, Research, CRM Other -4% & Digital costs Total Marketing Costs -38% Personnel including share Staff
Slide 11: Well-invested and modern cloud based technology platform
Well-invested and modern cloud based technology platform platform 2014 2015 2016 2017 2018 2019 REPLATFORMING FOCUS CUSTOMER EXPERIENCE FOCUS Customer Experience Optimisation New Proposition Development Adobe Content Management System Bespoke Aggregation engine API Service layer M-Cloud Infrastructu
Slide 12: The Re:Invent growth strategy: Reaccelerate core and new market growth
The Re:Invent growth strategy: Reaccelerate core and new market growth Reaccelerate Core Growth New Market Growth Leading Trusted Brands 1 2 3 Customer Leading Take Price Mortgage Experience Personalised Provider Comparison Price Optimisation MSM Offer to the user Comparison • The Re:Invent strategy
Slide 13: HY 2018 Strategic KPIs
HY 2018 Strategic KPIs Help households save money £1.1Bn 72% 62% Savings made by customers Net promoter score Marketing margin 13M £15.40 Active users Revenue per active user Definitions: Estimated Savings made by customers in HY 2018 Net Promotor Score: Twelve monthly rolling average (1 July 2017-
Slide 14: Customer Experience Optimisation
Customer Experience Optimisation Reaccelerate Core Growth Build out of Product Engineering hub on track • Dedicated squads recruited in Manchester Leading Trusted • Teams restructured to accelerate delivery Brands • Each comparison area has its own focused team Rapid innovation of the mobile custome
Slide 15: Reinvent strategy can unlock new market growth
Reinvent strategy can unlock new market growth We will make price comparison New Market Growth Personalised, Proactive and Painless 1 2 3 Take Price Mortgage Three initial areas of focus Personalised MSM Comparison Price to the user Comparison 15
Slide 16: 1. Personalised MoneySupermarket
1. Personalised MoneySupermarket What How Delivered A hassle free service Automatically populate Customer engagement for users to save on users’ policies in MSM rates increasing key bills in one place mobile app • Key policies stored • Add policy • App development and monitored for monitoring and ea
Slide 17: 2. Take Price Comparison to the user
2. Take Price Comparison to the user What How Delivered Make it easier to save Seek B2B Decision Technologies by taking personalised Partnerships with acquisition deals to users new platforms • Present • New B2B sales • Established personalised offers channel comparison service in the apps they are
Slide 18: 3. Mortgage Price Comparison
3. Mortgage Price Comparison What How Delivered Add mortgage Help users select and Created “Podium” switching to price apply for mortgages Joint Venture with M. comparison online Denman & M. Hawkins • Help users find the • Help users compare • Founders of HD right deal for them the true cost and dec
Slide 19: Capital Allocation Framework
Capital Allocation Framework Organic Ordinary Acquisitions Special Growth Dividends Distribution 19
Slide 20: Appendix
Appendix
Slide 21: HY 2018 Financial metrics
HY 2018 Financial metrics Revenue +5% EBITDA (Adjusted) +0% EPS (Adjusted Basic) +4% £165m £174m £62m £62m 8.1p 8.4p HY 2017 HY 2018 HY 2017 HY 2018 HY 2017 HY 2018 Tech Capital Investment -30% Interim Dividend +4% Operating Cash flow +2% £10m 2.84p 2.95p £42m £43m £7m HY 2017 HY 2018 HY 2017 HY 201
Slide 22: HY Adjusted EBITDA
HY Adjusted EBTIDA Variance £Millions HY 2018 HY 2017 Variance (%) Revenue 173.7 165.3 8.4 +5% Gross Profit 124.4 120.4 4.0 +3% Gross Margin 72% 73% Administrative Costs (55.7) (54.5) (1.2) +2% Distribution Costs (16.7) (17.4) 0.7 -4% Operating Profit 52.0 48.5 3.5 +7% Amortisation of acquired intan
Slide 23: Our diversified performance
Our diversified performance Revenue HY 2018 (£M) HY 2017 (£M) Growth (%) Insurance 93.3 90.1 4% Money 44.5 43.8 2% Home Services 22.5 18.4 23% Core Group revenue 160.3 152.3 5% Other revenue 13.4 13.0 3% Total Group 173.7 165.3 5% 23
Slide 24: Our disciplined approach to marketing continues
Our disciplined approach to marketing continues Marketing spend Revenue by source £174m £Millions HY 2018 HY 2017 YoY £165m TV & Radio 14.5 14.4 0.1 24% 25% Online spend 44.7 39.7 5.0 76% 75% Other 6.8 7.8 (1.0) £123m £133m Total Group 66.0 61.9 4.1 Marketing margin 62% 63% (1%) HY 2017 HY 2018 Dire
Slide 25: Balance sheet
Balance sheet £Millions 30 June 2018 30 June 2017 Property, Plant And Equipment 14.0 6.9 Intangible Assets – Technology 33.3 41.1 Intangible Assets - Acquisition Related 112.0 113.1 Investments 0.7 0.2 Trade and Other Receivables 55.5 47.4 Cash and Cash Equivalents 24.4 17.7 Total Assets 239.9 226.5
Slide 26: Helping households save money
Helping households save money
Moneysupermarket.com Group — Investor Presentation (October 2018) on 6ix