Slide 1: FY22 Interim Results & Capital Markets Day Summary
FY22 Interim Results & Capital Markets Day Summary November 2021 1
Slide 2: H1 summary
H1 summary Utili yen NES TelecomPlus
Slide 3: Profit & loss (£m)
Financial results Profit & loss (£m) H1 FY22 H1 FY21 Variance Revenue 371.3 349.4 6% Gross Profit 85.0 82.6 3% Gross margin 22.9% 23.7% Distribution expenses (12.7) (13.5) (6)% % of revenue 3.4% 3.9% Administrative expenses (40.6) (36.3) 12% % of revenue 10.9% 10.4% Bad debt (5.1) (4.6) 10% % of reve
Slide 4: Balance sheet (£m)
Financial results Balance sheet (£m) 30 Sep 21 30 Mar 21 30 Sep 20 Var vs 30 Mar 21 Fixed Assets 41.5 43.4 45.4 (2.0) Non-current assets 192.5 194.5 198.3 (2.0) Net current assets 47.7 45.8 18.4 1.9 (Net Debt) (77.8) (71.4) (46.1) (6.4) Total 203.9 212.4 216.0 (8.5) Share capital 4.0 4.0 4.0 - Share
Slide 5: Cashflow (£m)
Financial results Cashflow (£m) H1 FY22 H1 FY21 EBITDA 31.8 32.7 Working capital movement (3.2) 15.8 Taxation (5.8) (5.9) Capex (4.8) (5.3) Interest & fees (1.4) (1.1) Other 0.5 0.7 Free Cash Flow 17.1 36.8 Dividends (23.6) (23.5) (Increase) / decrease in net debt (6.4) 13.3 5
Slide 6: Full Year dividend
Financial results Full Year dividend 57p 6
Slide 7: H1 growth quiet in the aftermath of the pandemic
Operations review & outlook H1 growth quiet in the aftermath of the pandemic Customers Services 7 Figures in thousands, excluding TML.
Slide 8: Improving market dynamics
Improving market dynamics Utili yen NES TelecomPlus
Slide 9: The recent energy crisis
Operations review & outlook The recent energy crisis In just 10 weeks week half halfofofthe theUK’s UK’senergy energyretail retailsuppliers suppliershave havefailed failed 9 Note: some suppliers operate more than one brand
Slide 10: The recent energy crisis: headwinds have disappeared
Operations review & outlook The recent energy crisis The headwinds UW has faced for 7 years have disappeared Impact of rising wholesale prices on the energy savings gap Current market pricing 10 Price Cap / Big 6 av Standard Variable Tariffs in dark purple; Average of 10 cheapest tariffs in market i
Slide 11: A genuine paradigm shift in the retail markets
Operations review & outlook The recent energy crisis… A genuine paradigm shift in the retail markets Market set to return to pre-price war sustainability The savings gap between tariffs has all but disappeared ● The 7 year price war has ended ● Unsustainable Savings Gap has already disappeared ○ Exp
Slide 12: Entering a period of sustained upward pressure on the cost of living
Operations review & outlook Entering a period of sustained upward pressure on the cost of living The emerging cost of living crisis Momentum building within UW Partner community Cost of living as the catalyst for customer growth in 2008 ● More people turning to UW in response to squeezed household b
Slide 13: Outlook
Outlook Utili yen NES TelecomPlus
Slide 14: Clear inflection points in our customer growth trajectory
UW - positioned for growth Clear inflection points in our customer growth trajectory UW customers (000’s) 14
Slide 15: Clear inflection points in our customer growth trajectory
UW - positioned for growth Clear inflection points in our customer growth trajectory UW customers (000’s) 15
Slide 16: Illustrative future customer growth scenarios
UW - positioned for growth Illustrative future customer growth scenarios +5k pcm = 60k pa +10k pcm = 120k pa +15k pcm = 180k pa 8% growth 16% growth 25% growth 16 UW customer numbers as at year end (31 March). Purple bars actual, pink bars illustrative possible scenarios which should not be relied u
Slide 17: Illustrative future customer growth scenarios
UW - positioned for growth Illustrative future customer growth scenarios +5k pcm = 60k pa +10k pcm = 120k pa +15k pcm = 180k pa 17 UW customer numbers as at year end (31 March). Purple bars actual, pink bars illustrative possible scenarios which should not be relied upon.
Slide 18: About us
About us Utili yen NES TelecomPlus
Slide 19: All your home services in one
About us All your home services in one 660,000 households taking over 2m services Energy Broadband Mobile Insurance 19
Slide 20: UW at a glance
About us UW at a glance As at March 2021 Customers Our route to market ● Households supplied 660,000 ● >40,000 UW Partners ● Services supplied 2.1m ● Earning more than an income ● Multi-service penetration 30% take all core services ● UW brand advocates in every UK neighbourhood ● Market leading ret
Slide 21: The UK's only multi-service provider
About us The UK’s only multi-service provider Energy Telecoms Insurance 21
Slide 22: Why customers choose us
About us Why customers choose us To forget about their utilities Savings Simplicity Service The more services you take, Helping you keep track of your household Award-winning customer service the more you save spend with one monthly bill from our UK-based team 22
Slide 23: Savings: long-term, fair pricing across all our services
About us Savings Long-term, fair pricing across all our services Energy tariffs currently offered in the retail market 23 Energy pricing as at 25.10.21, assuming Ofgem standard user profile.
Slide 24: Simplicity: One supplier. One bill.
About us Simplicity One supplier. One bill. 24
Slide 25: Service: Award-winning customer support
About us Service Award-winning customer support Low numbers of energy complaints Consistent third party endorsements Which? Recommended Provider for over 10 years running 25 Energy complaints received (per 100k customer accounts) by supplier analysis for the Q2 2021 period. Source: Ofgem
Slide 26: How customers hear about us
About us How customers hear about us A unique route to market 26
Slide 27: Team Purple: our 40,000 Partners
Unique route to market Team Purple: our 40,000 Partners A highly targeted customer acquisition model Self-employed, part-time brand advocates ● Role is simply to refer UW to potential customers ● Provides informal access to less-engaged consumers Highly cost efficient and scalable customer acquisiti
Slide 28: Above average customer demographic
Unique route to market - benefits Above average customer demographic... … reflecting our Partner demographic Partners know all of our customers Household income vs UK average ● Proactive customer selection by our Partners Stark contrast to competitors ● Reactive Price Comparison Website acquisition mo
Slide 29: High multi-service penetration
Unique route to market - benefits High multi-service penetration... … reflecting aligned interests with our Partners % new customers switching all three core services to us % of customer base taking all three core services from us 29 ‘All 3 core services’ means broadband, mobile and energy. This exclu
Slide 30: High multi-service penetration: maximising customer lifetime value
Unique route to market - benefits High multi-service penetration... … as the key to maximising customer lifetime value Multi-service penetration drives increased customer lifetimes Historic energy market churn ● Typical customer lifetimes ○ Taking all 3 core services >15 years ○ Taking just Energy se
Slide 31: Structurally self-reinforcing business model
Our business fundamentals Structurally self-reinforcing business model UW Partners Sustainable long-term savings Multi-service customers and service levels Structural cost advantage 1. Multiple revenue streams with one cost-base 2. Lower bad debt from aligned Partner incentives 3. Long-term supply a
Slide 32: Our sustainable, multi-service cost advantage
Our business fundamentals Our sustainable, multi-service cost advantage One set of overheads, multiple revenue streams SG&A costs as % of revenue 32 Indirect costs defined as SG&A, as per Big 6 Consolidated Segmental Statements for retail supply businesses alone (prepared annually for Ofgem). Other e
Slide 33: Key competitive advantages
About us Key competitive advantages The UK’s only genuine multi-utility provider Route to market Virtual ‘retail’ model Supply agreements Our Partners: low cost, high quality, Technology enabled, fully integrated, Long term, sustainable relationships targeted customer acquisition low cost multi-util
Slide 34: Supply agreements
About us Supply agreements Complementary route to market attractive to suppliers Benefits to our suppliers ● Our incremental revenues maximise their infrastructure ROI ● No marketing or customer service costs Energy ● Access to a ‘disengaged’ segment that they can’t reach ● Leveraging our lower opera
Slide 35: Energy retail market dynamics
Energy market insight Energy retail market dynamics Profit per customer 35 Profit per customer calculated as PBT divided by number of households supplied. UW profit per customer includes all services they take from us as part of our multi-service proposition. Source: Big 6 Consolidated Segmental Statem
Slide 36: Sustained long-term organic growth
About us Sustained long-term organic growth Customers Services 7% CAGR 10% CAGR 36 Figures in thousands, excluding TML.
Slide 37: Historic financial performance
About us Historic financial performance Turnover (£m) Earning per share (p) Profit before tax (£m) Dividends (p) 37 FY10 to FY14 Turnover restated. PBT & EPS figures exclude share incentive and amortisation charges. Opus contributions excluded (sold in Feb 2017).
Slide 38: Investment case
Investment case Utili yen NES TelecomPlus 38
Slide 39: Our core investment case
Appendix Our core investment case High-quality earnings, organic growth and progressive dividends UK’s only multi-utility supplier Sustainable cost advantage ● A genuine USP ● Lower cost to serve multi-service customers ● <2% share of a £60bn+ market ● Fundamental competitive advantage ● Huge growth
Slide 40: Benefits of a multi-service proposition
Appendix Benefits of a multi-service proposition Multi-service customers on our lowest energy tariffs are most valuable Value Gold Double Gold Energy Energy Energy Phone & Broadband Phone & Broadband Mobile Indicative contribution Typical lifetime ~5 years ~9 years ~15 years 40 Typical lifetimes are
Slide 41: Get in touch
Get in touch Utility Warehouse 508 Edgware Road London, NW9 5AB telecomplus.co.uk 41
Slide 42: Disclaimer
Disclaimer The information contained in this presentation in respect of Telecom Plus PLC (the “Company”) and communicated during any delivery of the presentation, including the talks given by the presenters, any question and answer session and any document or material distributed at or in connection