Slide 1: FY23 Interim Results
FY23 Interim Results November 2022
Slide 2: H1 FY23 Highlights
H1 FY23 Highlights Sustainable organic growth of 24% Customers Sep 22 814,684 Record results ● Growth - continuation of 15 month trend +24% Mar 22 728,680 ● Financial - in line with customer growth annualised Revenue H1 23 £562m Growing demand for what UW offers +52% H1 22 £371m Driven by rising cos
Slide 3: Nick Schoenfeld, CFO
Nick Schoenfeld CFO Ye 2 Utili (OV ere eve TelecomPlus
Slide 4: Profit & loss (£m)
Profit & loss (£m) H1 FY23 H1 FY22 Variance Revenue 562.4 371.3 51% Gross Profit 111.7 85.0 31% Gross margin 19.9% 22.9% Distribution expenses (17.2) (12.7) 35% % of revenue 3.1% 3.4% Administrative expenses (53.2) (40.6) 31% % of revenue 9.5% 10.9% Bad debt (8.5) (5.1) 67% % of revenue 1.5% 1.4% Ne
Slide 5: Balance sheet (£m)
Balance sheet (£m) 30 Sep 22 30 Mar 22 30 Sep 21 Var vs 30 Mar 22 Fixed assets 34.4 34.5 41.5 (0.1) Non-current assets 187.3 189.0 192.5 (1.7) Net current assets 55.6 52.4 47.7 3.2 (Net debt) (67.2) (70.3) (77.8) 3.1 Total 210.1 205.6 203.9 4.5 Share capital 4.0 4.0 4.0 - Share premium 149.6 147.1 1
Slide 6: Cashflow (£m)
Cashflow (£m) H1 FY23 H1 FY22 EBITDA 38.1 31.8 Working capital movement 0.5 (3.2) Taxation (7.7) (5.8) Capex (4.9) (4.8) Interest & fees (1.6) (1.4) Dividends (23.7) (23.6) Other 2.4 0.5 (Increase) / decrease in net debt 3.1 (6.4) 6 The movements in working capital and net debt in H1 FY23 have been
Slide 7: Full Year dividend
Full Year dividend >80p 57p 34p 7 Stated intention to pay a full year dividend of at least 80p in the absence of unforeseen circumstances.
Slide 8: Stuart Burnett, Co-CEO
Stuart Burnett Co-CEO Ye 2 Utili (OV ere eve TelecomPlus
Slide 9: Structurally self-reinforcing business model
Structurally self-reinforcing business model Word of Mouth Trusted referrals from UW Partners Sustainable long-term savings Multi-service customers Structural cost advantage Multiple revenue streams per customer with one cost-base Lower bad debt from high quality customers 9
Slide 10: Cost of living crisis continuing
Cost of living crisis continuing Growing demand for UW Recession on Unique and Delivering Growing demand for Relaunching the horizon sustainable solution meaningful savings income opportunity customer referrals With inflation at highest Our multi-service business We’ve committed to More people joini
Slide 11: 24% annualised customer growth in H1
24% annualised customer growth in H1 11 FY23E shows actual number of customers at 30 September 2022, with… representing full year expectations assuming H1 growth rate continues during H2.
Slide 12: Scaling the business for 1m+ additional customers
Scaling the business for 1m+ additional customers Managing growth Maximising growth Investing in Supporting our Investing in Enhancing our Leveraging unique Growing our our teams customers brand awareness proposition Cashback card insurance business Opening specialist ~400 Customer Increased PR and
Slide 13: Andrew Lindsay, Co-CEO
Andrew Lindsay Co-CEO Ye 2 Utili (OV ere eve TelecomPlus
Slide 14: Outlook
Outlook Upgrading financial guidance for FY23 and beyond Economic outlook continuing to deteriorate for UK households FY23 Full Year guidance ● Further energy price rises expected in April Growing demand for UW savings and income opportunity Customer growth: ~24% ● Uniquely positioned to offer UK co
Slide 15: Illustrative 5 year customer growth scenarios
Illustrative 5 year customer growth scenarios On target to acquire 1m additional customers over the next 4-5 years +60k pa +120k pa +180k pa +240k pa 15 UW customer numbers as at year end (31 March). Purple bars actual, pink bars illustrative possible scenarios which should not be relied upon.
Slide 16: Supporting materials
Supporting materials Ye OF & Utili (OV ere eve TelecomPlus
Slide 17: All your home services in one
All your home services in one Over 800,000 households taking 2.5m services Energy Broadband Mobile Insurance 17
Slide 18: UW at a glance
UW at a glance 15 months of consistent double-digit organic growth Growth Financial highlights ● 24% annualised customer growth in H1 FY23 FY22A FY23E ● Rising cost of living is a near term stimulus for growth EBITDA £74m >£109m Adj PBT £62m >£95m Dividend 57p >80p Sustainable cost advantage ● Reset
Slide 19: The UK's only multi-service provider
The UK’s only multi-service provider Energy Telecoms Insurance 19
Slide 20: Vast organic growth opportunity
Vast organic growth opportunity 3% market share Energy Broadband Market size Market size 29m 26.4m households premises Market size Market size 84.2m 8m subscribers homes Mobile Boiler / Home Assistance Cover 20 Souce: Cornwall Analysis (Energy), Enders Analysis (Broadband) (V is Vodafone), Enders An
Slide 21: Why customers choose us
Why customers choose us Ye OF & Utili (OV ere eve TelecomPlus
Slide 22: We make your essential home services simpler, easier and better value
We make your essential home services simpler, easier and better value Savings Simplicity Service The more services you take, Keep track of your household spend Award winning UK-based the more you save with one monthly bill customer service 22
Slide 23: Savings
Savings Long-term, fair pricing Annual discount to £2,500 Energy Price Guarantee Annual fixed cost for 40MB Broadband £0 £0 £0 £0 £0 £0 £0 23 Pricing as at w/c 14.11.22. Energy: dual fuel supply at the Ofgem standard domestic consumption profile. Broadband fixed annual cost of our 40/10 Fibre agains
Slide 24: Simplicity
Simplicity One supplier. One bill. 24
Slide 25: Service
Service Award-winning customer support Low referrals to Energy Ombudsman Consistent third party endorsements Uswitch Best Customer Service, Most Likely to Recommend and Best Rewards 25 Energy Services Average Ombudsman referrals (per 100k supply points) by supplier for the first two quarters of 2022
Slide 26: Unique route to market
Unique route to market Ye OF & Utili (OV ere eve TelecomPlus
Slide 27: Word of mouth referrals
Word of mouth referrals Trusted, personal recommendations of our business Our community of 50,000+ Partners ● Self-employed, part-time brand advocates ● Role is simply to refer UW to potential customers ● Provides informal access to less-engaged consumers Targeted acquisition of most desirable custo
Slide 28: Our word of mouth route to market
Our word of mouth route to market… ...is the key to maximising customer lifetime value High multi-service penetration increases customer lifetime Higher-end customer demographic reduces bad debt exposure UW customer churn - single digit % per annum UW customer demographic above UK average UW custome
Slide 29: Our fundamental cost advantage
Our fundamental cost advantage
Slide 30: Our fundamental cost advantage vs
Our fundamental cost advantage One set of overheads, multiple revenue streams vs 30
Slide 31: Our sustainable, multi-service cost advantage
Our sustainable, multi-service cost advantage One set of overheads, multiple revenue streams SG&A costs as % of revenue 31 Indirect costs defined as SG&A, as per Annual Reports (and Consolidated Segmental Statements) for retail supply businesses alone. Data for year to Dec 20 used to exclude distort
Slide 32: Key competitive advantages
Key competitive advantages The UK’s only genuine multi-utility provider Multi-service Word of mouth Long term customer proposition route to market supply agreements Technology enabled, fully integrated Our Partners: low cost, high quality, Sustainable relationships multi-service proposition targeted
Slide 33: Supply agreements
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 operating cos
Slide 34: Sustained long-term organic growth
Sustained long-term organic growth Recent acceleration Customers Services 34 Figures in thousands, excluding TML.
Slide 35: Historical financial performance
Historical financial performance Turnover (£m) Profit before tax (£m) Dividends (p) 35 PBT & EPS figures exclude share incentive and amortisation charges. Opus contributions excluded (sold in Feb 2017).
Slide 36: Our core investment case
Our core investment case High-quality earnings, rapid organic growth and progressive dividends ● Unique customer proposition - ● Current customer growth rate Energy, Broadband, Mobile, High growth of 24% pa UK’s only multi- Insurance opportunity ● 3% share of a £50bn+ market service supplier ● Savin
Slide 37: Appendix
Appendix ¥Y @¢ O & Utili (OV ere eve TelecomPlus
Slide 38: Benefits of a multi-service proposition
Benefits of a multi-service proposition Multi-service customers on our lowest energy tariffs are most valuable Single service 2 services 3 services 4 services Energy Energy Energy Energy Broadband Broadband Broadband Mobile Mobile Insurance Increasing customer lifetimes and financial contribution 38
Slide 39: Energy supply market update
Energy supply market update Return to sustainable marketplace Key regulatory aim ● No more unsustainable business models or irrational pricing ● Quarterly price cap ● Financial resilience / stress tests Ofgem regulatory action ● Market compliance reviews ● Ring-fencing of customer credit balances ●
Slide 40: Get in touch
Get in touch Utility Warehouse 508 Edgware Road London, NW9 5AB Telecomplus.co.uk
Slide 41: 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