Mony Group Plc · LSE:MONY
Mony — Moneysupermarket.com Group — Investor Day (April 2010)
82 slides from Mony's investor day presentation, Apr 15, 2010
Slide 1: Investor Day
Investor Day 15 April 2010 Helping every household to make the most of their money
Slide 2: Agenda
Agenda Looking forward through 2010 and beyond • Objective – Introduce the team and outline key growth opportunities • Agenda – Introductions: meet the team All – Current trading Paul Doughty – Industry/Market overview: headroom for growth Peter Plumb – Marketing: leading the industry David Osborne
Slide 3: Our management team
Our management team Great mix of skills and experience Peter Plumb, Paul Doughty, CEO CFO Annie O’Grady, Tobias Van der Meer, CTO MD Money Alan Cairns, Graham Donoghue, HR Director MD Travel, Insure and Home Services David Osborne, Ian Williams, Marketing Director PR & Communications Director 2
Slide 4: Current Trading
Paul Doughty - CFO CURRENT TRADING 3
Slide 5: Q1 2010 IMS
Q1 2010 IMS Solid Start to 2010 • Q1 2010 revenues 6% ahead of Q1 2009 (9% excluding Travelsupermarket.com) – January slow across all verticals with trading improving in February and March – Visitors down circa 4% on Q1 2009 (4% ahead excluding Travelsupermarket.com) • Money – Revenues 7% ahead • Vi
Slide 6: Q1 2010 IMS
Q1 2010 IMS Solid Start to 2010 • Travel – Revenues approx 18% down on lower visitor volumes – Continued to manage to margin in weak trading environment • Home services – Revenues approx 20% ahead • Stronger utilities performance • Visitors approx 62% ahead of last year largely from shopping and vou
Slide 7: Industry/Market Overview: Headroom for growth
Peter Plumb - CEO INDUSTRY/MARKET OVERVIEW: Headroom for growth 6
Slide 8: Agenda
Agenda • Summary of our current position • Our Business Model • Our Market • Our Customers • Our Industry 7
Slide 9: Current situation summary
Current situation summary H109 stabilised and H209 invested for growth • H1 2009 – Cut costs and stabilised the business – Marketing focus ‘more for less’ – Systems and technology review building systems for the next 3 years • H2 2009 – Invested £4M for growth – Built and launched new Motor, Cards a
Slide 10: Our Business Model
Our Business Model Matching customers to the right product and right provider 9
Slide 11: Our Business Model: How we make money
Our Business Model: How we make money Efficient customer acquisition costs to providers CPA CPC CPL Commission Display (Cost Per App) (Cost Per Click) (Cost Per Lead) (£ per sale) Advertising PAA SAS Insurance - Money - Home Ser - - Travel - - Rev % (09) 79% 11% 5% 1% 4% 10
Slide 12: Our Market
Our Market We estimate we have 3% of our major markets Equivalent new transaction market size £3,655mm Money includes: Money Credit cards, mortgages, loans, savings and current accounts £1352m (37%) Provider online & Insurance includes: aggregators Motor, home, travel and life insurance £630mm Insur
Slide 13: Our Market: Online transactions continue to grow
Our Market: Online transactions continue to grow We estimate our share as circa 15% of the online market Online Market size £m CAGR% 06 - 09 0 50 100 150 200 250 300 350 400 360 +30% Motor Insurance 162 +18% House 91 -% Travel Cards 118 +3% 215 +27% Money Savings 61 -6% Loans (Unsecured) 1,124 +17%
Slide 14: Our Market: Aggregation lags online adoption
Our Market: Aggregation lags online adoption Credit cards are 2 – 3 years behind Motor Insurance How customers buy Motor Insurance Credit Cards 100% Face to Face Direct Online Aggregation 0% 06 07 08 09 Source GfK 13
Slide 15: Our Industry: Barriers to usage for money products are falling
Our Industry: Barriers to usage for money products are falling Customers increasingly make decisions without financial advisors People who have tried comparison sites say…. I am more confident using comparison sites than I was a 86% year ago I make more decisions on my own (eg. without financial 75%
Slide 16: Our Customers: Makeovers
Our Customers: Makeovers in 09 saved customers an average of £1800 16-24 25-44 45-54 55-64 65+ Teachers, Keith and Brenda save almost £1,500 100% 6% 8% Credit card: saving £460 20% 10% 90% Home insurance: saving £315 24% Car insurance: saving £230 80% 18% 15% 70% 18% 60% 16% Esme is £4,800 better of
Slide 17: Our Industry: Opening the door for cross sell
Our Industry Opening the door for cross sell of money products Financial product purchases: bought through comparison sites Motor Insurance 63% House Insurance 49% Travel Insurance 41% Credit Card 24% Loan 24% Savings 18% Mortgages 9% Source: YouGov Comparison Check survey: response by users to purc
Slide 18: House Model
House Model Helping every household to make the most of their money Best Best Shop Data Build our Products Open when and Brand wherever a customer Keep safe and use it to No reason to go wants it delight customer Be front of customers anywhere else minds and needs 17
Slide 19: Summary
Summary We have headroom for growth • Our Team: right mix of skills and experience • Our Business model: delivers value to our providers • Our Market: we are circa 15% share of the online market • Our Customers: have a growing comfort/enthusiasm for aggregation 18
Slide 20: Marketing: Building a strong brand
David Osborne, Marketing Director MARKETING: Building a strong brand 19
Slide 21: Agenda
Agenda Marketing: building a strong brand • Overview • Approach – Direct to Site (DTS) – Search Engine Marketing (SEM) – Portal Partners • Summary 20
Slide 22: Overview: our vision
Overview: our vision Helping every household to make the most of their money Helping every household Build to make a of their the most strong brand money Best Best Give every customer a Shop Data Build our reason to visit everyday Products Open when and Brand wherever a customer Keep safe and use it
Slide 23: Overview: Britain's no.1
Overview: Britain's no.1 Consumers favourite comparison website, with best reputation Favourite Comparison Website Best reputation (net positive) 35% 35% 55% 13% 49% 9% 45% 4% 43% 4% 31% 1% 30% Source: YouGov Comparison Check - Q: What is your favourite comparison website overall? AND On a scale of
Slide 24: Overview: a dominant market position
Overview: a dominant market position Britain's no 1 and over 2x bigger than next biggest 41.53% 16.20% 13.76% 8.27% 2.13% 23
Slide 25: Overview: 2009 was about getting more for less
Overview: 2009 was about getting more for less Cost per visitor £0.48 with no loss in number or quality of visitors 2007 2008 2009 £m % £m % £m % Online 46.1 73% 56.8 75% 42.4 73% Offline 17.0 27% 19.0 25% 15.6 27% Total 63.1 100% 75.8 100% 58.0 100% Visitors (M) 91.0 120.1 120.5 Cost per visitor £0
Slide 26: Overview: £22.3m spent by big 4 on broadcast media in Q1
Overview: £22.3m spent by big 4 on broadcast media in Q1 Media spend from leading comparison sites estimated +6% +25% +7% -12% £9,000,000 £8,000,000 £7,000,000 £6,000,000 £5,000,000 £4,000,000 £3,000,000 £2,000,000 £1,000,000 £0 Jan 09 Jan 10 Feb 09 Feb 10 Mar 09 Mar 10 Moneysupermarket.com Confused
Slide 27: Approach: increase % of revenue from DTS
Approach: increase % of revenue from DTS to open margin Visitors come from three sources Revenue by source 3 sources of traffic 62 26 12 Direct to site (DTS*) 2009 Paid search (SEM) Partnerships 59 31 10 2008 0% 100% *DTS combines CRM, natural search (SEO) and brand paid search SEM visitors 26
Slide 28: Approach: Direct to site provides better quality customers
Approach: Direct to site (DTS) provides better quality customers A DTS customer more likely to buy than a paid search or partner visitor Car Insurance conversion (actual purchase) by source (Paid search "car insurance" = 100) Typing moneysupermarket.com into browser 466.7% Paid Search - Brand 282.5%
Slide 29: Approach: providing the antidote to a British malaise!
Approach: providing the antidote to a British malaise! • 68% of Britons still feel “uncomfortable” negotiating a price AND • 90% never/only occasionally do it EVEN THOUGH • 85% who do so are successful moneysupermarket.com is the British way to get a great deal (i.e. haggle free) Source: MCBD Omnibu
Slide 30: Approach: our 'haggle hero' will drive brand preference
Approach: our ‘haggle hero’ will drive brand preference 29
Slide 31: Approach: building penetration beyond car insurance
Approach: building penetration beyond car insurance Less than 45% of internet users realise we compare money products Prompted awareness of moneysupermarket.com Used comparison as an information source - All comparing... those that purchased 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10
Slide 32: Approach: advertising money comparison on TV
Approach: advertising money comparison on TV New money campaign broke March 19th 31
Slide 33: Approach: make advertising spend work harder
Approach: make advertising spend work harder Peter Jones built trust, Omid Djalili is delivering cut through Spontaneous Awareness (%) 35 June 43 Nov 48 Jan Source: Internal HPI Branded Advertising Tracker Question: What is the 1st price comparison site you can think of, combined with; Question 2: W
Slide 34: Approach: be a strong and visible voice in the media
Approach: be a strong and visible voice in the media Over 1000 pieces of positive news coverage every month 27 February 2010 33
Slide 35: Approach: be very visible at the point of purchase
Approach: be very visible at the point of purchase Visits from natural links are free, yet we pay to appear in sponsored links Sponsored Links (SEM) Natural Links (SEO) 34
Slide 36: Approach: be no.1 in natural listings on most popular terms
Approach: be no.1 in natural listings on most popular terms A team of 24 search experts in house Money Insurance Travel Other Keyword Position Keyword Position Keyword Position Keyword Position credit cards 1 car insurance 1 flights 2 vouchers 11 cheap car restaurant credit card 1 1 flights to Paris
Slide 37: Approach: actively build inbound links from other websites
Approach: actively build inbound links from other websites c.7k unique websites have links to us Unique websites linking to domain 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - Source: SEOMOZ February 2010 36
Slide 38: Approach: build pages with relevant content
Approach: build pages with relevant content Engines like Google search for popular, trusted and relevant content Optimised copy visible to Google 37
Slide 39: Approach: create value from 10.3m opt-in email addresses
Approach: create value from 10.3m opt-in email addresses E-mail marketing drives trial, repeat purchase and cross-sell 38
Slide 40: Approach: vouchers keep us front of mind
Approach: vouchers keep us front of mind Through local tool we offer relevant and rich voucher content 39
Slide 41: Approach: money-off vouchers anytime, anywhere
Approach: money-off vouchers anytime, anywhere Voucher site accessible from all handsets 40
Slide 42: Approach: extracting value from paid search (SEM)
Approach: extracting value from paid search (SEM) We bid on over 2m keywords and pay to appear on sponsored links 1 4 6 8 41
Slide 43: Approach: bid tool allows us to make informed decisions
Approach: bid tool allows us to make informed decisions A bid tool gives management and control Clicks / Revenue / Profit Margin Cost Clicks Revenue Profit Margin Note: For illustration purposes only 42
Slide 44: Approach: taking our product to partner sites
Approach: taking our product to partner sites We operate a revenue share model with partners, built up over 10 yrs! 43
Slide 45: Summary
Summary Marketing: building a strong brand • Strategic approach to marketing with understanding of tactical levers • Unparalleled brand strength, reputation and distribution • Learning to monetise significant and valuable database • Launching new functionality to drive onsite cross-sell • Driving pe
Slide 46: Money: Returning to growth
Tobias van der Meer - MD Money MONEY: Returning to growth 45
Slide 47: Agenda
Agenda Money: returning to growth • Money overview • What makes us different • The growth opportunity • Building on market leadership • Summary 46
Slide 48: Money overview
Money overview More than 15 ways to help customers save Advisory Leads Cards Loans Banking Mortgages (PAA) Credit Unsecured Savings Mortgages Pensions Prepaid Secured Cash ISAs Conveyance Investments Stocks & Debt Life Shares ISA* Business Current Finance Accounts Travel Money * New listings channel
Slide 49: Money overview
Money overview A rich proposition for consumers How much we save an average customer Motor Insurance £218 Cards £282 Savings £210 Loans £495 48
Slide 50: Money overview
Money overview Stability achieved in 2009 • Significant reduction in loans business Money Revenues 2006-2009 45 in 2008 due to PPI changes, FirstPlus (£13.2m revenue in 2008) and tighter 40 lending criteria 35 • However, visitor volumes maintained 30 during 2008-2009 25 • 2009 focus on getting the b
Slide 51: Money overview
Money overview Fragmented competition, mainly from niche players Large Money Specialists Insurance Players Corporate Entrants 50
Slide 52: What makes us different
What makes us different The brand consumer trust most for Money products The most trusted Money brands 25% 20% 15% 10% 5% 0% Source: YouGov Omnibus March 2010 51 Q. Which, if any, of the following do you trust to find the best money products for your needs (by money products we mean credit cards sav
Slide 53: What makes us different
What makes us different Unmatched distribution #1 Brand (Direct #1 Natural Search Sophisticated Paid Largest to Site) Positions for Search CRM/Email Base #1 brand awareness Credit Cards: # 1 670k Money keywords #1 brand trust Savings: # 1 10/10 quality score Loans: # 1 Mortgages: # 1 Brand Building
Slide 54: What makes us different
What makes us different Market leadership & a strategic partner to providers Traffic sent to major credit card provider (Indexed) 100 100 80 60 40 Too small for Hitwise sample size 20 22 0 Moneysupermarket.com Nearest competitor Other competitors (Compare and Save) Source: Hitwise data April 09-Marc
Slide 55: The growth opportunity
The growth opportunity Money providers see online / price comparison as a strategic priority Online now a major source of new business Traditional acquisition channels falling in effectiveness for providers Banks increasingly looking for success based marketing – lower risk appetite Cost per Sale (I
Slide 56: The growth opportunity
The growth opportunity Money consumer adoption; a significant value opportunity Bringing Money consumer adoption to motor insurance levels: a £106m+ revenue opportunity (at constant Moneysupermarket share) 60% Potential Potential Potential 50% users users users 40% Existing Value: Value: Value: User
Slide 57: The growth opportunity
The growth opportunity Traditional barriers to adoption are falling People who have tried comparison sites say…. I am more confident using comparison sites than I was a 86% year ago I make more decisions on my own (eg. without financial 75% advice) about which financial products to buy than I did a
Slide 58: The growth opportunity
The growth opportunity Traditional barriers to adoption are falling Consumers who have tried price comparison are changing the way they buy Money products 70 60 50 40 30 20 10 ` 0 Car Insurance Credit Card Loan Savings ISA Mortgage Have bought through comparison site Intend to buy through comparison
Slide 59: The growth opportunity
The growth opportunity Macro trends impact consumer behaviour Lending (Mortgage) Market Other Key Market Drivers 18 Total Number of Mortgage Products 16 14 • Rising house prices 12 • Liability/funding pressures on banks 10 • Bank of England rate changes 8 • Market changes 6 ` • New entrants 4 • Regu
Slide 60: Delivering growth
Delivering growth Driving consumer awareness of Money price comparison • TV and media • Leverage 120m Moneysupermarket visitors • PR campaigns • Continue to build natural and paid for search positions 59
Slide 61: Delivering growth
Delivering growth Best Shop: A new approach to our Money sites, starting in cards A new generation of Money sites: • Customer led designs • New technology – content management and databases • New tables, showcasing more products than ever • Richer information for customers, including reviews • Test
Slide 62: Delivering growth
Delivering growth Best Product: making Moneysupermarket consumers’ preferred destination for all Money products High Street Banks Competitors Moneysupermarket 2 Cards 46 Cards All UK Cards (180) plus Exclusives 61
Slide 63: Delivering growth
Delivering growth Best Product: working with providers to create new solutions for consumers From: • Commercial deal (cost per click) • Online/product manager To: • Partnerships • New commercial structures (cost per sale) • CEO/Marketing Director engagement • Sharing data/insight • Joint work on pro
Slide 64: Delivering growth
Delivering growth Investments in our proposition are paying off New cards site launched Jan 2010 10% improvement in conversion Twice as many products on our site as Q1 09 15% more budget from providers And… Improved customer satisfaction (NPS) Bounce rate reduced (from 15% to 4%) Halved page loading
Slide 65: Summary
Summary • Unique market leading position – rich proposition for consumers • Stability achieved • Cautious optimism about lending environment • Significant room for consumer growth 64 64
Slide 66: Insurance: More than motor
Graham Donoghue - MD Insure, Home Services & Travel INSURANCE: More than motor 65
Slide 67: Agenda
Agenda • Insurance overview • Market headroom • Creating the Best Shop • The role of value and data • Summary 66
Slide 68: Our winning vision
Our winning vision Creating the best shop & filling it with the best products Helping every household to make the most of their money Best Best Shop Data Build our Products Open when and Brand wherever a customer Keep safe and use it to No reason to go wants it delight customer Be front of customers
Slide 69: We sell over 2.7m policies a year
We sell over 2.7m policies a year We are more than just motor insurance Motor Property Protection Other Car House Life Travel Caravan Business Payment Pet Bike Landlord PMI Heating Roadside Dental Van 68
Slide 70: Significant headroom for growth
Significant headroom for growth Only 20% of cars in the UK are insured via price comparison UK Motor Market (m) 25 20 Opportunity 15 10 5 0 Motor Market Non PCW users PCW Researchers PCW Switches Source: OC&C Strategy Consultants 69
Slide 71: Creating the Best Car Insurance Shop
Creating the Best Car Insurance Shop Better for Customers Better for providers Time to get a quote reduced by 25% Its not just about price 70
Slide 72: The typical customer journey
THE TYPICAL CUSTOMER JOURNEY 71
Slide 73: Day 1
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Slide 74: Day 3
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Slide 75: Our new shop has clear leadership in motor insurance
Our new shop has clear leadership in motor insurance Motor Insurance site preference 46% 50% 45% 40% 35% 30% 22% 25% 17% 20% 15% 15% 10% 5% 0% moneysupermarket Gocompare Confused Compre the market Source: eDigital research 100 users, Car insurance march 2010, based on usage Question - Based on usage
Slide 76: We are saving customers more than ever
We are saving customers more than ever We are saving people £64 more Value plays a bigger role in Prices have risen 18% in the last year on average purchase £1,050 £250 £1,000 53% 53% £1,000 £218 53% £200 £950 52% £154 52% £150 £900 51% £100 51% £850 £842 50% 50% £800 £50 50% 49% £750 £0 49% Jan-09
Slide 77: Home lags behind motor and holds huge growth
Home lags behind motor and holds huge growth Home Insurance in the UK and Policies Sold UK Households (m) 30 25 26 Opportunity 20 19.1 16.9 15 10 5 1.1 0 GB households Households with Households with Purchased Buildings contents through comparison Source : ONS, ABI, Internal 76
Slide 78: Same smart approach to home insurance
Same smart approach to home insurance Smart question, open up conversion, reducing Smart tools for Customers dropout 77 Give it a try: http://www.moneysupermarket.com/home-insurance/
Slide 79: Value plays a more significant role in the home
Value plays a more significant role in the home Prices have risen +11% for We are saving customers 14% Home is more value driven combined home & buildings more than motor £275 £135 £274 60% £270 £131 £130 50% 51% £265 £125 £260 40% 39% £255 £120 30% £250 £115 £115 £249 20% £245 £110 10% £240 £235 £1
Slide 80: We are more than just car insurance
We are more than just car insurance Significant opportunity in travel & Life insurance £380m GWP opportunity in life insurance UK travel policies sold (m) Growing at 12% per year Avg HH annual spend % Households with Insurance 25.0 £800 £750 45% £700 £700 40% 20.0 35% £600 £500 £500 30% £500 15.0 25
Slide 81: Summary
Summary Insurance: More than Motor • Significant headroom for growth in Motor and Home • We have built the Best Shops and are filling it with the Best Products • Value helps plays a more significant role to open up commercials • We are using our data to drive smart CRM initiatives • We are more than
Slide 82: Summary
Summary Helping every household to make the most of their money Best Best Shop Data Build our Products Open when and Brand wherever a customer Keep safe and use it to No reason to go wants it delight customer Be front of customers anywhere else minds and needs 81
Moneysupermarket.com Group — Investor Day (April 2010) on 6ix