Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — FY2011 Earnings Presentation
39 slides from Mony's earnings presentation, Feb 28, 2012
Slide 1: Preliminary Results
Preliminary Results Helping every household to 28 February 2012 make the most of their money
Slide 2: Gerald Corbett - Chairman
Gerald Corbett - Chairman 2 MoneySupermarket (3)
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 20% • Strong trading results • Revenue 20% ahead • EBITDA 21% ahead • Significant investment in brand and technology • Offline marketing expenditure (TV, radio and print) (inc Britain’s Got Talent) +£8m (+43%) • Technol
Slide 5: Strong trading results
Strong trading results Revenue and EBITDA; 2011 more than 20% ahead of 2010 2011 2010 Variance Variance H2 2011 £m £m £m % £m Revenue 178.5 148.9 29.6 20% 89.8 Internet 178.4 148.9 29.5 20% 89.8 Intermediary 0.1 0.0 0.1 n/a – Gross Profit 128.4 106.1 22.3 21% 65.0 Gross Margin 71.9% 71.3% 72.4% Admi
Slide 6: Adjusted EBITDA
Adjusted EBITDA Significant top line growth largely driven by media spend £1.1m £21.2m (£2.9m) (£8.2m) (£2.0m) (£0.7m) £49.5m £41.0m Gross Profit £22.3m Cost Base (£13.8m) 2010 Volume Margin Staff costs Media Irrec VAT Other admin 2011 6 6
Slide 7: Direct to site share of revenues maintained
Direct to site share of revenues maintained DTS Revenues up by £20m: revenues ahead by 20% Revenue by source UK internet revenue by vertical £m 100% 180.0 11 12 13.3 160.0 9.9 Travel 22 21 14.8 140.0 13.9 6.4 Home Services/Other 120.0 37.8 12.3 Partners 100.0 31.7 Money - non credit SEM 80.0 67 67 D
Slide 8: Insurance 2011
Insurance 2011 Strong and consistent revenue growth • Revenues increased 21% against last year – H2 revenues 20% ahead of same period last year – Growth across major product lines – Other revenues £4.9m (89%) ahead of same period last year • Life insurance change of model • Revenue growth driven by
Slide 9: Money 2011
Money 2011 Growth in both credit and non credit product revenues • Revenue increased 19% over 2010 – Growth in both credit and other banking products – Provider budgets and availability of product – Recovery in loans market • Visitors increased by 11% – SEM/SEO visitors to minor channels • RPV impro
Slide 10: Home Services 2011
Home Services 2011 Utilities revenues stronger • Revenues 48% ahead of last year – H2 revenues 55% ahead of same period last year • Visitors increased 7% against last year • RPV increased 38% – Sales mix – Launch of new utilities channel in Q1 2011 H1 2011 H2 2011 FY 2011 FY 2010 Variance Home Servi
Slide 11: Travel 2011
Travel 2011 End markets remain challenging • Revenue down 4% to £13.3m • Weakness in demand for discretionary weekend type travel • Hotels and Flights channels impacted • Package Holidays holding up • New channel launched January 2011 • Visitors up 7% on 2010 – Impact of TV advertising particularly
Slide 12: Marketing investment
Marketing investment Continued switch from online to offline; Efficiency maintained FY 2009 FY 2010 FY 2011 £m % £m % £m % Online 42.4 73% 43.2 69% 50.5 65% Offline 15.6 27% 19.0 31% 27.0 35% Total 58.0 62.2 77.5 Visitors (m) 120.5 119.2 130.2 Rev per visitor (£) 1.13 1.25 1.37 Cost per visitor (£)
Slide 13: Cash
Cash Cash generation remains a key strength of the business • Cash balances of £35.0m at 31 December 2011 • £59.5m of cash generated before capex, tax and dividend payments – Over 100% of EBITDA converted to cash • 2010 final dividend of £12.9m paid in May; interim dividend of £7.7m and special divi
Slide 14: Dividends
Dividends Final dividend increased by 20% Dividend – p/share 2011 2010 2009 Interim 1.5 1.3 1.3 Final 3.03 2.53 2.2 Total Dividend Declared 4.53 3.83 3.5 Special Dividend 3.93 9.84 TOTAL (p) 8.46 3.83 13.34 • Progressive dividend policy – Interim dividend increased by 15% to 1.5p – Final dividend in
Slide 15: Summary
Summary • Strong trading results • Continued strong cash generation • Dividends • Final dividend increased by 20% to 3.03p per share • Total dividend of 8.46p per share (including special dividend) 15
Slide 16: Business Update
Business Update Peter Plumb – Chief Executive Officer 16
Slide 17: Agenda
Agenda • 2011 Review: strong year of growth • Market: trends and insights • 2012 Plans: where we are going • Q1 trading trends 17
Slide 18: We saved customers £900M in 2011
We saved customers £900M in 2011 Providers acquired 4.7M buyers through MoneySupermarket.com • We save customers money – Customer savings £900M (2011) vs £690M (2010) – Number of buyers (*prime channels) 4.7M (2011) vs 4.2M (2010) – Avg customer saving of £166 (2011) vs £136 (2010) • We invested for
Slide 19: Acquisitions/investments have been integrated
Acquisitions/investments have been integrated Delivering content, technology and customer engagement FSN delivers content to …HD decisions power ...Local Daily Deals new customer groups… personalised search… engages customers Content growth Loans Smart Search Engaging CRM 19
Slide 20: Providers are embracing our service and tools
Providers are embracing our service and tools Delivering better deals for our customers Provider Insight Tools Fee paying providers Exclusive deals Money Insurance Energy Credit Savings 2011 2010 2011 2010 Source: internal data 20
Slide 21: Marketing investment growth focused on brand
Marketing investment growth focused on brand Digital marketing success should deliver future leverage Paid search Partners PR Content 22% 26% 33% 19% Digital £50.5M 23% 31% 25% 31% 21% Q1 Q2 Q3 Q4 TV/Radio £27.0M 25% 25% 27% 23% 21
Slide 22: Big savings should drive more switching
Big savings should drive more switching Providers start 2012 with strong product ranges Jan 2011 Jan 2012 Product Average Product Average Average Policy MSM Saving Average Policy MSM Saving Car Insurance Average Cheapest £1,150 £289.47* £1,109 £375.09* Insurance: Premium slowing prices Home Insuranc
Slide 23: Good headroom exists in our prime markets
Good headroom exists in our prime markets Money is experiencing accelerated growth Channel market update (policy/products) Channel Mkt New/ Online New/ Online New/ MSM Policies Switchers Switchers Switchers CAGR% Policies/yr Policies/Yr CAGR % 09-11 09 – 11 Motor Insurance 24M 10.3M (43%) 8.2M 8.95%
Slide 24: Customers like our service
Customers like our service Competitors have had a turbulent year Hitwise: Visitor share by Price Comparison Site % 24
Slide 25: Being known for more than motor
Being known for more than motor MoneySupermarket.com can save households £1000+ in 2012 25
Slide 26: Slide 26
Slide 27: Road map for 2012 and beyond
Road map for 2012 and beyond The business strategy set out in 2009 continues to serve us well 27
Slide 28: Outlook
Outlook Jan and Feb trading in line with Board’s expectations • Internet revenues: – Group revenue: current trading +15% • Money and insurance showing good growth • Energy: flat following strong 2011 • Travel: a tough market • Providers – Strong product pipeline for 2012 • Customers – BOE estimates
Slide 29: Questions & Answers
Questions & Answers 29 MoneySupermarket (3)
Slide 30: Appendix Additional Financial Materials
Moneysupermarket.com Group Plc Appendix Additional Financial Materials 30
Slide 31: Adjusted EBITDA
Adjusted EBITDA Reconciliation from statutory revenue and operating profit to adjusted EBITDA H1 H2 FY FY H2 2011 2011 2011 2010 Var. Var.% 2010 Revenues Internet 91.6 89.3 180.9 148.9 32.0 21% 77.3 Intermediary 0.1 – 0.1 0.0 0.0 79% 0.0 Total 91.7 89.3 181.0 148.9 32.0 22% 77.3 Gross Profit 66.4 64
Slide 32: Adjusted cost base
Adjusted cost base 2011 v 2010, H2 2010 H1 2011 H2 2011 FY 2011 FY 2010 H2 2010 £m £m £m £m Variance Variance % £m (1) Adjusted Cost Base Staff Costs 13.3 16.7 30.0 24.7 5.3 21% 12.5 IT Contractors * 0.0 0.0 0.0 2.4 -2.4 -100% 0.7 Depreciation 2.0 1.8 3.8 4.9 -1.1 -22% 2.5 Irrecoverable VAT 4.7 4.4
Slide 33: VAT
VAT • 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 assessment on the Group’s PAA leads business for £2.2m in
Slide 34: Acquisitions
Acquisitions FSN valuation reassessed; LDD acquired for initial £1m FSN: • During 2010, the Group acquired 100% of FSN for £4.4m of upfront consideration, and £2.6m of contingent consideration (including £200k relating to amounts withheld dependent on the outcome of discussions with HMRC, and an add
Slide 35: Statutory balance sheet
Statutory balance sheet December 2011 June 2011 December 2010 £m £m £m Intangible assets 160.6 185.9 182.5 Other non-current assets 12.0 11.6 10.7 Net current assets 17.2 25.2 26.6 Long term liabilities (23.3) (35.2) (32.2) Net assets 166.5 187.4 187.6 Capital and reserves 187.1 220.7 250.0 • Intang
Slide 36: Accounting information
Accounting information Share options • All pre-IPO options have now vested or lapsed • 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 an exercise price of nil – 2.6m LTIP options iss
Slide 37: Accounting information
Accounting information Tax • Tax charge of £7.5m giving effective rate of 31% – Higher than statutory tax rate for 2011 of 26.5% – Prior year adjustments to current and deferred tax – £0.2m of tax losses in Germany for which no deferred tax credit is recognised, consistent with prior periods 37
Slide 38: KPIs – by vertical
KPIs – by vertical H1 H2 FY FY H2 2011 2011 2011 2010 Var 2010 Money Visitors ('m) 18.1 17.2 35.2 31.8 11% 14.5 Transactions ('m) 9.4 9.4 18.7 13.6 38% 7.1 Revenue (£m) - Click-based 24.8 23.5 48.3 39.2 23% 21.3 Revenue (£m) - Total 27.0 25.6 52.6 44.0 19% 23.3 RPV £1.50 £1.49 £1.49 £1.39 7% £1.61 R
Slide 39: KPIs – UK Internet
KPIs – UK Internet 2011 2010 Variance % H2 2010 Variance % Visitors ('m) 130.2 119.2 9% 58.4 123% Transactions ('m) 64.8 57.3 13% 27.7 134% Click Revenue (£m) 162.2 136.9 18% 72.0 125% Other Revenue (£m) 15.5 12.0 29% 5.2 200% Total Revenue (£m) 177.7 148.9 19% 77.2 130% RPV £1.36 £1.25 9% £1.32 3%
Moneysupermarket.com Group — FY2011 Earnings Presentation on 6ix