Ten Lifestyle Group Plc · LSE:TENG
Ten Lifestyle — FY2022 Earnings Presentation
39 slides from Ten Lifestyle's earnings presentation, Nov 23, 2022
Slide 1: Annual Results for Year to 31 August 2022
Annual Results for Year to 31 August 2022 November 2022 Prepared for Investors FY2022. © 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 FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 2 LIVING ×
Slide 3: Investment Case
Investment Case Huge market Established market Proven opportunity leader growth engine • • • Tech and Proposition Income from premium #1 in market investment delivers better brands to drive loyalty of #1 in tech and assets client ROI and improving their most profitable Long-term, well retained effic
Slide 4: Investment Case
Investment Case Huge market Established market Proven opportunity leader growth engine • • • Tech and Proposition Income from premium #1 in market investment delivers better brands to drive loyalty of #1 in tech and assets their Improving most profitable Won new Long-term, wellclients, retained Impr
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 FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 5 LIVING ×
Slide 6: 2022 Highlights and Outlook expectations
2022 Highlights and Outlook expectations • Record Net Revenue1, up 35% to £46.8m (2021: £34.7m), ahead of pre-COVID levels • Adjusted EBITDA2 up 11% to £4.9m (2021 £4.4m), loss before tax down 31% to £(3.8)m (2021: £(5.5m)) • Cash at £6.6m, with net cash at £3.2m (2021: £6.7m) plus £3.4m debt raised
Slide 7: Our platform is well positioned for growth
Our platform is 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
Slide 8: Financial Results
Image to be updated Financial Results Year to 31 August 2022 Jumeirah Hotels & Resorts, Jumeirah Maldives Olhahali Island. Ten’s Global Hotel Collection Prepared for Investors HY2022. © Copyright FY2022. © Copyright Ten Ten Lifestyle Lifestyle Group Group 2022. 2022. All All rights rights reserved.
Slide 9: Key Financial Highlights
Key Financial Highlights Net Revenue up 35% and Adj. EBITDA up 11%, despite H1 impact of Omicron • Net Revenue up by 35% to £46.8m (2021: £34.7m), ahead of pre-COVID levels - Growth in all three regions, Americas +67%, EMEA +21%, APAC +25% - Corporate revenue up 29% to £41.1m (2021: £31.9m) - Suppli
Slide 10: Income Statement
Income Statement Income statement for year ending 31 August 2022 £m 2022 2021 YOY change • Operating expenses up £11.6m to £41.9m (2021: £m £m £m £30.3m): Revenue 48.7 35.1 13.6 - Removal of payroll assistance (salary sacrifice and govt. support) of £2.8m Corporate revenue 41.1 31.9 9.2 - Additional
Slide 11: Net Revenue
Net Revenue • Net Revenue up 35% to £46.8m (2021: £34.7m) Net Revenue Growth 2022 vs 2021 (£m) • Retained all Material Contracts for third year 50.0 2.3 46.8 • Base Corporate revenue from existing 6.9 45.0 contracts contributed £6.9m, as demand recovered. 40.0 2.9 5 34.7 • Net Corporate Revenue Rete
Slide 12: Supplier Revenue has continued to recover
Supplier Revenue has continued to recover • Supplier revenue up 104% to £5.7m Supplier Revenue by year and half-year (£m) (2021: £2.8m) - 12.2% of Net Revenue (2021: 8.0%), back 8 12.8% 14% to pre-COVID levels of contribution 12% 12.2% (2019: 12.0%) 7 11.4% 10.8% 12% 10.7% • Impact of COVID from H2
Slide 13: Net Revenue By Region
Net Revenue By Region EMEA Net Revenue by region • Up 21% as both base corporate and supplier £m 2022 2021 % change revenue recovered despite short-term impact of £m £m Omicron on H1 EMEA 21.9 18.1 21% Americas 16.5 9.9 67% • Won and launched two Medium contracts APAC 8.4 6.7 25% 46.8 34.7 35% Ameri
Slide 14: Adjusted EBITDA by region
Adjusted EBITDA by region EMEA Adjusted EBITDA • Adjusted EBITDA decreased by £0.6m to £5.5m (2021: £6.1m) as increased FTE retained through Omicron £m 2022 2021 £m £m EMEA 5.5 6.1 Americas Americas (0.7) (2.2) • Adjusted EBITDA loss improved by £1.5m to £(0.7)m Asia 0.1 0.5 (2021: £2.2m) from stron
Slide 15: AMERICAS – improving profitability (2019-2022)
AMERICAS – improving profitability (2019-2022) The table opposite highlights the improved profitability within the Americas region over the last 4 years. • Net Revenues of £16.5m are now higher than pre- COVID 2019 levels • Adjusted EBITDA has improved year on year with region moving into profitabil
Slide 16: Continued Technology Investment
Continued Technology Investment • Continued ‘good to great’ investment in Ten Cash Spend on Technology Platform, Comms and Infrastructure Digital Platform, TenMAID, content, IT (£m per FY) infrastructure and communications IPO 13.6 • Creates competitive advantage 14 1st Ten Digital Platform 12.2 12.
Slide 17: Cash Flow
Cash Flow Cashflow £m 2022 2021 • Operating Cash flow of £4.8m (2021: £4.0m) £m £m Loss before tax (3.8) (5.5) - Reduced loss before tax of £1.7m Working capital changes (0.1) 0.7 - Increased working capital of £0.8m driven by Net Finance expense 0.1 0.5 business growth Forgiven US PPP loan - (1.0)
Slide 18: Business Model
Business Model Watch the Growth Engine video at tenlifestylegroup.com/investors/ Raffles Doha, part of Ten’s Global Hotel Collection Prepared for Investors HY2022. © Copyright FY2022. © Copyright Ten Ten Lifestyle Lifestyle Group Group 2022. 2022. All All rights rights reserved. reserved. 18 LIVING
Slide 19: Our Revenue Model
Our Revenue Model Supplier revenue Typical Contract 12% High-touch Requests ££ Per High-touch Digital Requests £ Per Digital 88% Corporate revenue Total Corporate Client Revenue Long term contracts often with agreed minimums Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All ri
Slide 20: A record eligible member base to achieve growth
A record eligible member base to achieve growth Eligible Members have an eligible product, employment, account or Active Members have used the service at least once in the past 12 card offered by a corporate client and have access to the service months Eligible Members in High and Very High value se
Slide 21: Operational Update
21 Operational Update Operational update Year to 31 August 2022 Ollie Dabbous, head chef at HIDE London where Ten hosted a Ukraine fundraising dinner Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 21 LIVING ×
Slide 22: Operational Highlights
Operational Highlights • Number of Material Contracts up 17% to 28 (2021: 24) - Retained all Material Contracts for third year running - Four new Material Contracts: Large contract with Credit Saison, Medium contracts with one of the UK’s largest wealth managers, DNB Bank and Morgan Stanley, all lau
Slide 23: Corporate client growth
Corporate client growth 4 new Material Contracts, Contract expansions and renewals with New content and digital customisation all launched with the Ten Digital Platform existing corporate clients deals New programme for the premium cardholders of an Content as a Service (CaaS) deals with existing Cr
Slide 24: Our Corporate Clients
Our Corporate Clients Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 24 LIVING ×
Slide 25: Overview of proposition categories
Overview of proposition categories Dining Entertainment Travel Retail & Events Editorial Book Club • Priority access and • Access to the best • Expanded Ten’s Global • Exclusive offers on • In-depth destination • Exclusive audiences exclusive benefits at seats, best packages Hotel Collection with br
Slide 26: Ten Platform overview
Ten Platform overview • Multi-tenanted and mobile-friendly web app • Ten Digital Platform is live with 35 (2021: 29) corporate client brands globally • 18 languages (2021: 17), 39 currencies • Transactional and e-commerce (PCI DSS Level 1) • New features: - Improved merchant proposition and member r
Slide 27: Customisation
Customisation Corporate clients can opt to customise and integrate the Ten Digital Platform to increase efficiencies and support their digital engagement strategy • Modules and sub-modules turned on/off • Full white labelling / branding capabilities • Languages, currencies and home markets • Customi
Slide 28: Inspiring our members
Inspiring our members • New and enhanced ways to engage members with inspiring and original content • Developed a new module on Ten Platform dedicated to our content to engagement Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 28 LIVING ×
Slide 29: Content x Ten
29 Content x Ten Anthony – can you add content here and some visual examples? Also add a hyperlink to the content x ten sales pitch deck (in PDF format)? We launched Content x Ten our in-house content agency. We have a unique proposition to create lifestyle content for HNWI and UHNWIs that engage, i
Slide 30: One-click payments
One-click payments • Members can store payment cards for one—click purchases • Members can manage multiple cards, within the client’s payment type restrictions • Improves conversion and drives spend on card for our corporate clients Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022
Slide 31: Member preferences
Member preferences Enhanced member preferences, in addition to the existing capability where members can track entertainment artists, allowing members to “favourite”: • Hotels and restaurants • Offers and brands • Events and interests (soon-to-be-released) Enables greater personalisation of the serv
Slide 32: Channel choice
Channel choice • More channel choice for our members with the expansion of chat, including WhatsApp with members • Chat volumes more than doubled • WhatsApp usage more than tripled Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 32 LIVING ×
Slide 33: Extending the value of each contact
Extending the value of each contact Onboarding Ongoing CX • Redesigned member lifecycle journeys to increase activations and repeat usage Welcome & Activate Personalize Convert Recover Educate • Automated journeys triggered by member lifecycle moments / locations as well as behaviour / request data
Slide 34: Building a sustainable business
Building a sustainable business Our Sustainable Business Strategy 3 key priorities of our Sustainable Business Strategy and application to become B Corp certified creates value for our • Greater DEI monitoring, transparent disclosures and stakeholders: • Expanded monitoring and disclosure of carbon
Slide 35: Outlook
Outlook Outlook Rubaiyat Faria Lima - Sao Paulo Brazil, part of Ten’s Held Table Programme Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 35 LIVING ×
Slide 36: 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 37: 2023 Outlook expectations
2023 Outlook expectations We expect demand and related revenue will continue to increase from existing Active Members and “first time users” from our Eligible Member base. Notwithstanding the impacts of economic conditions on individual member households, our corporate clients pay us to improve the
Slide 38: Thank you
Thank you InvestorRelations@tengroup.com www.tenlifestylegroup.com/investors Prepared for Investors FY2022. © Copyright Ten Lifestyle Group 2022. All rights reserved. 38 LIVING ×
Slide 39: 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 showcased during an office visit • Insight into member experience – ways to trial the service • Review of how we provide value to corporates