Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — H1 2022 Earnings Presentation
32 slides from Ten Lifestyle's earnings presentation, May 11, 2022
Slide 1: Interim Results for the six months to 28 February 2022
× Interim Results for the six months to 28 February 2022 May 2022 Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 1 LIVING ×
Slide 2: Our Mission
Our Mission To become the world’s most trusted service Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 2 LIVING ×
Slide 3: Investment Case
Investment Case Established Growth Investment in market leader • Technology Revenue growth, • proven ability to • Long-term, well Driving operational retained corporate activate Members from a growing eligible efficiencies and contracts, global profitability HNWI member base base, a strong sales pip
Slide 4: Investment Case
Investment Case Established Growth Investment in market leader • Technology Revenue growth, • proven ability to • Long-term, well Driving operational retained corporate activate Members Won new clients, Net fromRevenue a growing1 up 21% eligible efficiencies Maintained and investment contracts, glob
Slide 5: Current Trading and Outlook expectations
Current Trading and Outlook expectations • Since H1, key metrics are performing well in March and April - Request levels (member activity) are up in all regions v’s H1 2022 - Net Revenue is now above pre-Covid levels (H1 2020:£23.8M) - Supplier revenue is now above pre-Covid levels (H1 2020: £2.5M)
Slide 6: Our platform well positioned for growth
Our platform well positioned for growth Have a large member base and a maturing operational and Scaling technology platform globally Healthy proposition in travel, dining, live entertainment and Iterating premium retail Have a strong presence in Selling into known markets, the financial services sec
Slide 7: Ten's Growth Engine
Ten's Growth Engine Growing Proposition, Profitability and Scale Watch the Growth Engine video at www.tenlifestylegroup.com/investors/ Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 7 LIVING ×
Slide 8: Financial Results
Financial Results For the six months to 28 February 2022 More details at tenlifestylegroup.com/investors Water Villa, Patina Maldives, Fari Islands. Ten’s Global Hotel Collection Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 8 LIVING ×
Slide 9: Key Financial Highlights
Key Financial Highlights Net Revenue growth in H1, short term impact on profitability from Omicron • Net Revenue increased by 21% to £20.8m (H1 2021: £17.2m - Growth in all three regions - Corporate revenue up 13% to £18.4m (H1 2021: £16.3m) - Supplier revenue up 167% to £2.4m (H1 2021: £0.9m and ba
Slide 10: Income Statement
Income Statement Income statement for year ending 28th February 2022 • Operating expenses increased by £4.4m: - removal of payroll assistance (salary sacrifice £m H1 2022 H1 2021 YOY change and govt. support) of £2.1m £m £m £m - increase in FTE to support increased activity and resources maintained
Slide 11: Net Revenue
Net Revenue • Net Revenue of £20.8m, an increase of 21% Net Revenue Growth H1 2022 vs H1 2021 (£m) • Retained all Material Contracts • Base Corporate revenue increased by £1.0m as business recovered despite impact of Omicron 25.0 • Supplier revenue of £2.4m increased by 1.4 ( 0.2 ) 20.8 1.0 £1.4m as
Slide 12: Supplier Revenue
Supplier Revenue has recovered • Supplier revenue of £2.4m (H1 2021: Supplier Revenue by year and half-year (£m) £0.9m); 11.4% of Net Revenue (H1 2021: 8.0 11.4% 12.0% 5.1%) 10.8% - H1 2020 Supplier revenue (pre-COVID- 10.7% 19) of £2.5m; 10.7% of Net Revenue 7.0 10.0% • Impact of Covid-19 from H2 2
Slide 13: Net Revenue By Region
Net Revenue By Region Net Revenue by region EMEA £m H1 2022 H1 2021 % change • Up 15% as both base corporate and Supplier £m £m revenue recovered albeit slowed by Omicron EMEA 10.0 8.7 15% Americas 6.5 5.0 30% APAC 4.3 3.5 23% 20.8 17.2 21% Americas • Up 30%, again, driven by base corporate and 22 l
Slide 14: Adjusted EBITDA by region
Adjusted EBITDA by region EMEA Adjusted EBITDA • Adjusted EBITDA decreased by £1.2m to £1.8m as increased FTE were retained through Omicron £m H1 2022 H1 2021 £m £m Americas EMEA 1.8 3.0 • Adjusted EBITDA loss improved by £0.5m to £(1.1)m Americas (1.1) (1.7) from strong recovery in Net Revenue, off
Slide 15: Continued Technology Investment
Continued Technology Investment • Continued ‘good to great’ investment in Ten Cash Spend on Technology Platform, Comms and Infrastructure (£m per Digital Platform, TenMAID, content, IT FY) infrastructure and communications 14.0 1st Ten IPO • Creates competitive advantage Digital 12.2 12.2 Platform 1
Slide 16: Cash Flow
Cash Flow Cashflow • Operating Cash flow of £1.4m (H1 2021: £2.4m) £m H1 2022 H1 2021 - reduced loss before tax £m £m - improved working capital of £0.5m and non cash Loss before tax (2.8) (3.6) items of £3.7m Working capital changes 0.5 0.9 Net Finance expense - 0.2 • Investment in intangibles of £
Slide 17: Operational Update
17 Operational Update Operational update Nobu Matsuhisa, at a member exclusive Nobu London’s 25th anniversary dinner Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 17 LIVING ×
Slide 18: Our Revenue Model
Our Revenue Model Typical Contract Supplier revenue High-touch Requests ££ Per High-touch 12% Digital Requests £ Per Digital Corporate revenue 88% Total Corporate Client Revenue Long term contracts often with agreed minimums Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All ri
Slide 19: Our Active Member base is growing again
Our Active Member base is growing again Total Active Members by value segments at the reporting date “Active Members” are members eligible to use Ten’s services by virtue of them holding an account, card, employment or other such 250 position or product linked to a corporate client 226 221 programme
Slide 20: Operational Highlights
Operational Highlights • Launched Credit Saison and won new 3 Material Contracts in each region • Retained all Material Contracts – key contract renewals with Barclays Bank, DNB Bank and St James’s Place • New revenue from some major clients to develop tech • Investment in proprietary digital tech,
Slide 21: Our Corporate Clients
Our Corporate Clients Visa RBS HSBC DNB (Norway) Maserati RBC Credit Suisse American City National SEB Coutts CIBC Rakuten Express Bank Mastercard Barclays NatWest SMBC ABSA Bank of China Merrill Diners Club Tokai Tokyo Maserati St George Westpac Lynch SuMi Neiman AlphaCard SwissCard Scotiabank OCBC
Slide 22: Overview of our core categories
Overview of our core categories Dining Entertainment Travel Retail & Events (Inspiration) (Book Club) • Priority access and • Access to the best seats, • Exclusive benefits at • Exclusive offers on • In depth destination • Exclusive audiences exclusive benefits at best packages and face over 3000+ 4
Slide 23: Ten Platform overview
Ten Platform overview • Multi-tenanted and mobile-friendly web app • Ten Digital Platform is live with 29 (2021: 27) corporate client brands globally • 19 languages (2021: 17), 39 currencies • Transactional and ecommerce (PCI DSS Level 1) • Covering the best Travel, Dining, Entertainment, Offers and
Slide 24: Customisation
Customisation The Platform can be tailored to different clients: • Modules and sub-modules can be turned on/off • Full white labelling / branding capabilities • Languages, currencies and home markets • Content and assets • Payment controls that drive spend on card • Design customisations and integra
Slide 25: Example of Single Sign On (SSO)
Example of Single Sign On (SSO) Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 25 LIVING ×
Slide 26: A new era of internal tools
A new era of internal tools Our internal tools, Ten MAID and Ten Travel System are being upgraded Our aim is to improve employee and member experiences whilst making our Lifestyle Managers >10% more efficient. This would save the business c. £2m pa, Prepared for Investors HY2022. © Copyright Ten Lif
Slide 27: CX: Journey Design
CX: Journey Design In the last two years, we have invested into CX to design and implement insights-driven new member journeys, whilst optimizing existing ones, here are two examples: Onboarding journey Recovery journey Communications, content features and proactivity to: Series of communications an
Slide 28: Outlook
Outlook Outlook Grand Hotel Fasano, on from Ten’s Global Hotel Collection Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 28 LIVING ×
Slide 29: Clear Pathways To Revenue/Active Member Growth
Clear Pathways To Revenue/Active Member Growth Additional Geographies, Verticals and Clients New Clients: New Clients: New Clients: Contracts In Signed Contracts Pipeline Negotiation Current Clients: Current Clients: Current Clients: New Contracts Increased Active Increased Usage (Eligible and Activ
Slide 30: Current Trading and Outlook expectations
Current Trading and Outlook expectations • Since H1, key metrics are performing well in March and April - Request levels (member activity) are up in all regions v’s H1 2022 - Net Revenue is now above pre-Covid levels (H1 2020:£23.8M) - Supplier revenue is now above pre-Covid levels (H1 2020: £2.5M)
Slide 31: Thank you
Thank you InvestorRelations@tengroup.com www.tenlifestylegroup.com/investors Prepared for Investors HY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 31 LIVING ×
Slide 32: Next steps available
Next steps available • Growth engine video in investor section on www.tenlifestylegroup.com/investors • Overview of our technology – can be shared by video or managed via office visit • Insight into member experience – ways to trial the service • Review of how we provide value to corporates under ‘c