Ten Lifestyle Group Plc · LSE:TENG

Ten Lifestyle — FY2021 Earnings Presentation

41 slides from Ten Lifestyle's earnings presentation, November 2021

Slide 1: Preliminary Results for Year to 31 August 2021
῞ Preliminary Results for Year to 31 August 2021 November 2021 Prepared for Investors FY2021. © Copyright Ten Lifestyle Group 2021. All rights reserved. 1 LIVING ×
Slide 3: Investment Case
Investment Case Established Improving market leader Growth profitability • • • Sustained revenue, Long-term, well Driven by technology proven ability to retained corporate and operational activate Members contracts, global efficiencies from a growing eligible HNWI member base base, a strong sales pi
Slide 4: 2021: Building healthy foundations for growth
2021: Building healthy foundations for growth Tom Dean Ten • Won 200M freestyle GOLD • Net Revenue1 down 21.6% • Won 4 x 200M GOLD • Adapted proposition • First British male swimmer • Improved Adjusted EBITDA to win 2 Golds since 1908 margin2 and PBT • Maintained investment in technology • Record me
Slide 5: 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 FY2021. © Copyright Ten Lifestyle Group 2021. All rights reserved. 5 LIVING ×
Slide 6: Financial Results
Financial Results Preliminary Results Year to 31 August 2021 More details at tenlifestylegroup.com/investors Prepared for Investors FY2021. © Copyright Ten Lifestyle Group 2021. All rights reserved. 6 LIVING ×
Slide 7: Key Financial Highlights
Key Financial Highlights Maintained profitability amidst challenging conditions • Net Revenue down 21.6% to £34.7m (2020: £44.2m) - Corporate revenue down 22% to £31.9m (2020: £40.9m) - Supplier revenue down 15.2% to £2.8m (2020: £3.3m) • Operating expenses: £30.3m, £9.1m below 2020: £39.4m • Adjust
Slide 8: Income Statement
Income Statement • Operating expenses reduced by £9.1m due to: Income statement for year ending 31st August 2021 - continuing operational efficiencies £m 2021 2020 YOY change - freeze on salary/bonus increases, some £m £m £m redundancies Revenue 35.1 46.4 (11.3) - salary sacrifice scheme saving £1.2
Slide 9: Net Revenue
Net Revenue Net Revenue Growth FY 2020 vs FY 2019 (£m) • Net Revenue of £34.7m, a reduction of 21.6% due to COVID-19 44.2 (0.5) (7.9) • We have not lost any clients even during the pandemic (1.6) 0.5 34.7 • The base corporate revenue contracted by £7.9m • Supplier revenue of £2.8m declined by £0.5m
Slide 10: Supplier Revenue
Supplier Revenue Supplier Revenue by year and half-year (£m) • Supplier revenue of £2.8m (2020:£3.3m) 8 14% was 8% of Net Revenue (2020: 7.4%). 12% • 2019 supplier revenue (pre-COVID-19) of 7 12% 10.7% 10.8% £5.5m was 12% of Net Revenue Supplier Revenue (£m) 6 5.5 10% • Impact of COVID-19 started in
Slide 11: Net Revenue By Region
Net Revenue By Region Net Revenue by region Impact of COVID-19 pandemic across all regions £m 2021 2020 % change £m £m EMEA 18.1 22.0 (18%) EMEA Americas 9.9 13.8 (28%) • Change of Large contract to Small affiliate model APAC 6.7 8.5 (21%) 34.7 44.2 (22%) offset by medium contract win • Supplier Rev
Slide 12: Adjusted EBITDA by region
Adjusted EBITDA by region EMEA Adjusted EBITDA • Adjusted EBITDA decreased by £2m to £6.2m • Adjusted EBITDA margin remained strong although declined £m 2021 2020 from 37% to 34% £m £m EMEA 6.1 8.2 Americas (2.2) (3.9) Americas Asia 0.5 0.4 • Adjusted EBITDA loss decreased by £1.7m to £2.2m Total 4.
Slide 13: Continued Technology Investment
Continued Technology Investment • Continued ‘good to great’ investment in Ten Annual Cash Spend on Technology Platform, Communications and Digital Platform, TenMAID, content, IT Infrastructure (£m per FY) infrastructure and communications 1st Ten 14.0 Digital IPO • Creates competitive advantage Plat
Slide 14: Cash Flow
Cash Flow Cashflow • Operating Cash flow of £4.0m (2020: £7.2m): £m 2021 2020 £m £m - Improving operational efficiencies and costs Loss before tax (5.5) (5.9) - Non cash items of £8.3m includes increased Net finance expense 0.5 0.5 amortisation offset by loan forgiveness and Working capital changes
Slide 16: Our Revenue Model
Our Revenue Model Typical Contract High-touch Requests ££ Per High-touch Supplier revenue 8% Digital Requests £ Per Digital Total Corporate Client Revenue Corporate revenue 92% Long term contracts often with agreed minimums Prepared for Investors FY2021. © Copyright Ten Lifestyle Group 2021. All rig
Slide 17: A record eligible member base to achieve growth
A record eligible member base to achieve growth Eligible Members in High and Very High value segments Total Active Members by value segments 1,800 250 229 1,600 210 204 Active Members ('000) 200 Eligible Members ('000) 1,400 175 1,200 143 150 112 132 1,062 1,000 103 800 663 669 100 600 27 28 21 22 4
Slide 18: Concierge Revenue by Value Segment
Concierge Revenue by Value Segment 62% of Ten’s concierge revenue is underpinned by Material Contracts5 where the members are of High or Very High value to the corporate partners Concierge Revenue by value segment Concierge Revenue ('000) 2019 2020 2021 Very High Value High Value Medium Value 5 Medi
Slide 20: Operational Highlights
Operational Highlights • Launched Westpac contract and won Credit Saison • Retained all Material Contracts • Investment in proprietary digital tech, content and comms helped efficiencies and service quality • Ten Digital Platform live with 27 brands (2020: 22) • Improved member proposition • Record
Slide 22: Our Proposition
Our Proposition Ten’s proposition benefits both members and corporate clients Member Desire Member Benefit Corporate Client Objectives – strong ROI Speed “I’m saving time” A strong value proposition Rational “I’m getting value” Grow customer acquisition and engagement Security “I’m managing risk” Im
Slide 23: Build a more valued service: Net Promoter Score
Build a more valued service Net Promoter Score Record NPS 2017 2018 2019 2020 2021 Prepared for Investors FY2021. © Copyright Ten Lifestyle Group 2021. All rights reserved. 23 LIVING ×
Slide 24: Build a more valued service: Engagement emails
Build a more valued service Engagement emails sent Increased regular engagement activities with the backing of corporate clients • Targeted newsletters, events, offers, articles and guides • Engagement emails sent increased • Maintained high open rate • Increased click-to-open rate Prepared for Inve
Slide 25: Investment in our B2B marketing
Investment in our B2B marketing • Growing thought leadership and case studies • Build content marketing and lead generation funnels Prepared for Investors FY2021. © Copyright Ten Lifestyle Group 2021. All rights reserved. 25 LIVING ×
Slide 26: Corporate Partners Commercially Benefit From Ten
Corporate Partners Commercially Benefit From Ten • Ten’s corporate partners improve customer Client Retention Rates acquisition, retention and grow customer value Client retention rates p.a (%) - Users are 3 times more likely to be retained as customers and more likely to advocate - Users correlate
Slide 27: 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 Tokyo Maserati St George Westpac Lynch SuMi Neiman AlphaCard SwissCard Scotiabank OCBC TRUST
Slide 28: Reinvestment - technology
Reinvestment - technology Improved member on-boarding and increased personalisation • New onboarding journey • Personalisation , helping us • Preferences 2.0: members • Pre-travel automation and welcome series identify preferences and can Favourite and Follow - personalised increases member use data
Slide 29: Reinvestment - technology
Reinvestment - technology Increased automation, service quality and efficiencies • Automation of service: increase automated processes • Chat bot: upgraded existing live chat & launched chatbot FAQ capabilities • Bullseye call routing: reducing transfers and hold time • Abandoned baskets automation:
Slide 30: Improvements in speed, efficiency and margin
Improvements in speed, efficiency and margin Digital transformation Automation of request servicing • Fully-automated requests increased by 74% 100% • 70% of requests are now serviced using automation (2020: 63%) • Record levels of requests from engagement emails and via chat, WhatsApp or on the Ten
Slide 31: Reinvestment – content
Reinvestment – content Increased production and range of content • 25 (2020: 3) Lifestyle magazines covering dining, travel, days out, wellness, home & interiors, wine and fashion • Over 300 (2020: c.200) destination and lifestyle guides • Staycation guides • Over 3,000 articles • Members reading pl
Slide 32: An improving team
An improving team We continue to invest in our people • Continued success of home/hybrid working • Developed home grown talent through our Global Leadership Programme & Ten Academy • Retained all SLT members since January 2019 and attracted new talent • Diversity, Equity and Inclusion initiatives •
Slide 33: Ten's Digital and Product Transformation
Ten's Digital and Product Transformation Automation Ten Digital Platform TenMAID and comms Content • Over 70% of • Live with 27 brands, • Ten’s customer • In-house content team requests serviced 100+ countries, 17 relationship use editorial content using full or partial languages and 39 management p
Slide 34: Experience Ten digital platform through corporate or private membership
Experience Ten digital platform through corporate or private membership https://ten-membership.com/ Prepared for Investors FY2021. © Copyright Ten Lifestyle Group 2021. All rights reserved. 34 LIVING ×
Slide 36: Active Member Penetration evolution
Active Member Penetration evolution “New” (<3 years) Developing (3-6 years) Optimum (>6 years) New clients tend to be ‘new’ Increasing ‘proof’ grows budgets Ten becomes a hero benefit or replacing competition. and turns Ten from ‘cost’ to and integrated part of the Penetration starts low and ‘ROI dr
Slide 37: 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 38: Post COVID-19 Opportunities
Post COVID-19 Opportunities • Our corporate clients need us - We compete well against ‘competitors for budget’ - We have developed stronger relationships during COVID-19 - They always need high value customers (even more if interest rates rise) • Our service suppliers need us • Our competitive posit
Slide 39: Outlook expectations 2022
Outlook expectations 2022 • Demand for our core services is increasing as pandemic eases, driving use from existing Active members and stimulating new “first time users” from our growing Eligible member base. This increases Net Revenue. Some ‘pandemic innovations’ will remain part of our service. •
Slide 41: 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

Ten Lifestyle Group — FY2021 Earnings Presentation on 6ix

Ten Lifestyle — FY2021 Earnings Presentation

Slide 1: Preliminary Results for Year to 31 August 2021

Slide 2: Our Mission

Slide 3: Investment Case

Slide 4: 2021: Building healthy foundations for growth

Slide 5: Ten's Growth Engine

Slide 6: Financial Results

Slide 7: Key Financial Highlights

Slide 8: Income Statement

Slide 9: Net Revenue

Slide 10: Supplier Revenue

Slide 11: Net Revenue By Region

Slide 12: Adjusted EBITDA by region

Slide 13: Continued Technology Investment

Slide 14: Cash Flow

Slide 15: Business Model

Slide 16: Our Revenue Model

Slide 17: A record eligible member base to achieve growth

Slide 18: Concierge Revenue by Value Segment

Slide 19: Operational update

Slide 20: Operational Highlights

Slide 21: LIVING ×

Slide 22: Our Proposition

Slide 23: Build a more valued service: Net Promoter Score

Slide 24: Build a more valued service: Engagement emails

Slide 25: Investment in our B2B marketing

Slide 26: Corporate Partners Commercially Benefit From Ten

Slide 27: Our Corporate Clients

Slide 28: Reinvestment - technology

Slide 29: Reinvestment - technology

Slide 30: Improvements in speed, efficiency and margin

Slide 31: Reinvestment – content

Slide 32: An improving team

Slide 33: Ten's Digital and Product Transformation

Slide 34: Experience Ten digital platform through corporate or private membership

Slide 35: Outlook

Slide 36: Active Member Penetration evolution

Slide 37: Clear Pathways To Revenue/Active Member Growth

Slide 38: Post COVID-19 Opportunities

Slide 39: Outlook expectations 2022

Slide 40: Thank you

Slide 41: Next steps available