Slide 1: Interim results
Interim results 21 July 2022
Slide 2: Peter Duffy, Chief Executive Officer
Peter Duffy Chief Executive Officer IMAGE TO FOLLOW
Slide 3: Good trading performance and momentum in strategic delivery
Good trading performance and momentum in strategic delivery Strong financial performance in challenging market conditions • Revenue £193m (+19%) with adjusted EBITDA £57m (+10%) • Performance driven by Cashback, Money and travel channels Momentum in transition to tech-led savings platform continues
Slide 4: Scilla Grimble, Chief Financial Officer
Scilla Grimble Chief Financial Officer
Slide 5: Financial summary
Financial summary Helping households save money £193m £57m 6.1p Revenue Adjusted EBITDA Basic EPS +19% +10% +18% 13% £46m 3.1p Reinvestment rate Operating cashflow Dividend per share unchanged +31% unchanged 5
Slide 6: Strong revenue growth
Strong revenue growth • Group revenue up 19% (2% ex-Cashback) Revenue • Insurance up 7%; travel trading above 2019 levels offset by market-wide lower switching in car and £193m home £8m £162m £27m • Strong growth in all Money channels, banking product £1m offers particularly attractive £19m £45m • H
Slide 7: Mix impacts on margin
Mix impacts on margin Gross margin H1 2021: 70.1% Gross margin H1 2022: 67.9% • Consolidation of lower • Year-on-year improvements Channel mix – margin Quidco (c.500 bps Money in borrowing conversion impact in H1) known performance • Benefit from mix into higher -c.300 bps • Some offset from loss of
Slide 8: Costs in line with guidance
Costs in line with guidance Operating Revenue cost base • Distribution costs up driven by planned investment in above-the-line marketing • Admin costs up 9% (down 4% excluding £87m acquisitions) £5m £75m – consolidation of Icelolly and Quidco £3m £21m "Admin costs" – technology and data estate impro
Slide 9: Robust cash generation
Robust cash generation Net debt £69.1m at 30 June 2022 (£59.6m at 31 December 2021) Includes £13.6m deferred consideration from Quidco acquisition (£14.6m at 31 December 2021) Operating cash flow £45.9m £56.6m (£2.9m) (£8.9m) £1.1m (£7.0m) (£3.2m) £35.7m (£46.2m) (£10.5m) Adjusted Working capital Ta
Slide 10: Capital allocation framework remains unchanged
Capital allocation framework remains unchanged Organic Ordinary Enhanced growth dividends Acquisitions distributions 10
Slide 11: Outlook
Outlook H1 outperformance driven by exceptional Money and strong travel channels H2 trading dynamics • Car and home insurance market yet to reach steady state following FCA General Insurance regulation • Money subject to availability of attractive banking product • Travel subject to macro developmen
Slide 12: Peter Duffy, Chief Executive Officer
IMAGE TO FOLLOW Peter Duffy Chief Executive Officer
Slide 13: Market impacts of FCA reforms – so far
Market impacts of FCA reforms – so far Limited impact on car and home insurance PCW traffic PCW conversion has weakened since January Monthly PCW traffic Car and home conversion (market) –Average 2021 vs YTD 2022 H1 2019 H1 2020 H1 2021 H1 2022 H1 2019 H1 2020 H1 2021 H1 2022 2021 Q1 2022 Apr-May 20
Slide 14: Insurance market dynamics evolving
Insurance market dynamics evolving H1 Going forward Still numerous Reduced appetite for Insurance Insurance comparison Providers return to Upward pressure switching triggers acquisition comparison on MSE as platform service acquisition focus on premiums PPC optimisation Sustained Higher new business
Slide 15: Helping households save money
Helping households save money Efficient Retain Expanding acquisition and grow our offer ▪ Deploying machine learning in ▪ Streamlined question sets aka ▪ Ice Travel Group brands PPC bidding ‘No Questions Asked’ in leveraging respective ▪ New MSM campaign building development expertise on MoneySuperS
Slide 16: MoneySuperSeven continues to deliver well
MoneySuperSeven continues to deliver well Building on flexible creative platform with latest campaign Clearly articulates brand breadth and customer value Good growth in branded search Independent research shows best resonance of MSM’s campaigns to date 16
Slide 17: Driving retention and cross sell with 'No Questions Asked'
Driving retention and cross sell with ‘No Questions Asked’ User pain points Slicker, shorter and more engaging user journeys Long forms Shorter journeys with smaller question sets Re-entering previously Pre-populating information and better shared information returning user experience Disconnected j
Slide 18: Transition to a tech-led savings platform
Transition to a tech-led savings platform B2B Compelling, r partners differentiated brands Home Services comparison services Insurance comparison services Money comparison services Data infrastructure & analytics Brand-agnostic MSMG platform Digital marketing – SEM, SEO, CRM Tenancy, advertising and
Slide 19: Leveraging the platform - MSE car and MSM tenancy advertising
Leveraging the platform - MSE car and MSM tenancy advertising r B2B partners Home Services comparison services Insurance comparison services Money comparison services Data infrastructure & analytics Digital marketing – SEM, SEO, CRM Tenancy, advertising and cashback solutions 19
Slide 20: Integration of 2021 acquisitions on track
Integration of 2021 acquisitions on track Full ownership of life, travel Scaled travel business well Consolidating offices and and pet insurance placed for market recovery operations onto Group journeys systems Fully integrated into Shared expertise expanding Improved understanding the Group revenue
Slide 21: Driving efficiency with organisation evolution
Driving efficiency with organisation evolution Simplify operations Remove duplication Integrate efficiently Simplified management Fewer squads dedicated to a single Ice Travel Group same headcount structure vertical as TSM standalone 150 headcount reduction from Freed up capacity directed to CYTI st
Slide 22: Summary
Summary Foundational data and platform work complete … • Core data transition complete • Migrated to new digital marketing platforms … setting us up for further strategic execution … • Using shared capabilities across the Group’s brands • Expanding in profitable ways (CYTI, ITG, Quidco) • Driving ef
Slide 23: Moneysupermarket Group
Moneysupermarket Group
Slide 24: Appendix
Appendix
Slide 25: Strategic KPIs
Strategic KPIs Helping households save money £0.9bn 72 57% (2021: £0.8bn) (2021: 71) (2021: 61%) Savings made by customers Net promoter score Marketing margin 10.8m £15.86 (2021: 10.2m) (2021: £17.00) Active users Revenue per active user Definitions: Estimated Savings made by customers in H1 2022. N
Slide 26: Fulfilling our purpose and ESG responsibilities
Fulfilling our purpose and ESG responsibilities Purpose • Purpose to help households save money even more relevant in difficult economic times Helping households save money • £0.9bn household savings delivered in H1 2022 • 10.8m active users in the 12 months to 30 June 2022 MoneySavingExpert • Consu
Slide 27: Adjusted cost base and marketing spend
Adjusted cost base and marketing spend Adjusted cost base Marketing spend and marketing margin £144m 61% 57% £8m £121m £22m £83m £10m £31m £18m £17m £63m £31m £4m £16m £83m £19m £63m £13m £34m £42m D&A -21% Cashback n.m VAT & other admin 34% Other -74% Staff costs -1% TV and radio 53%
Slide 28: Product engineering investment
Product engineering investment Total product engineering investment Reinvestment rate £26m £22m £20m £18m +13% +13% £4m £6m HY 2021 HY 2022 HY 2021 HY 2022 Product engineering capital investment Product engineering operating costs Note: We have refreshed this KPI given the strategic improvements we
Slide 29: Income Statement
Income Statement £million HY 2022 HY 2021 Growth Revenue 193.2 162.3 19% Gross margin 68% 70% Adjusted EBITDA * 56.6 51.3 10% EBITDA margin 29% 32% Depreciation & software amortisation (7.6) (9.6) Adjusting items ** (5.2) (2.9) Operating profit 43.8 38.8 13% Change in fair value of financial instrum
Slide 30: Income Statement
Income Statement £million HY 2022 HY 2021 Growth Operating profit 43.8 38.8 13% Deal fees and associated costs - 1.4 Amortisation of acquisition related intangible assets 5.2 1.5 Amortisation of technology related intangible assets 5.1 7.4 Depreciation 2.5 2.2 Adjusted EBITDA 56.6 51.3 10% 30
Slide 31: Segmental measure of adjusted EBITDA contribution: notes
Segmental measure of adjusted EBITDA contribution: notes • Results include a measure of segmental profit by vertical in line with IFRS 8 • Adjusted EBITDA contribution = Revenue – directly attributable cost of sales – directly attributable operating expenses. Excludes adjusting items. Directly attri
Slide 32: Segmental measure of adjusted EBITDA contribution
Segmental measure of adjusted EBITDA contribution £million HY 2022 HY 2021 Home Shared Home Shared Segment Insurance Money Services Travel Cashback costs Total Insurance Money Services Travel costs Total Revenue 85.8 53.0 18.8 8.0 27.6 - 193.2 80.5 35.3 45.5 1.0 - 162.3 Directly attributable expense
Slide 33: Moneysupermarket Group
Moneysupermarket Group