Saga plc · LSE:SAGA
Saga — H1 2022 Earnings Presentation
39 slides from Saga's earnings presentation, Sep 22, 2021
Slide 1: Interim Results
INTERIM RESULTS 22 SEPTEMBER 2021
Slide 2: Agenda
AGENDA Euan Sutherland Group Chief Executive Officer James Quin Group Chief Financial Officer Euan Sutherland Group Chief Executive Officer
Slide 3: Overview
OVERVIEW Euan Sutherland Group Chief Executive Officer SAGA
Slide 4: Positioning the business to emerge stronger
POSITIONING THE BUSINESS TO EMERGE STRONGER
Slide 5: Insurance and travel progress
INSURANCE AND TRAVEL PROGRESS Insurance (Saga-branded motor and home) Travel Three-year fixed-price AICL policies On track for 45% return to £40m EBITDA of policies sold (HY 2020 – 33%) growth per ship (over time) for the first time Sabre £76 since 2012 joined the motor panel Margin per (quarter 2)
Slide 6: Wider strategic progress
WIDER STRATEGIC PROGRESS People and culture step Data, digital and brand Driving simplicity and change transformation efficiency Reducing our debt
Slide 7: Looking ahead to H2 2021
LOOKING AHEAD TO H2 2021 Relaunch of Relaunch Launch of Saga websites 70% £302 Easy 3YF Plus to include Cruise Cruise Access motor and improved design, home insurance faster access and load factor per diems Cash digital (2021/22) (as at 11 September) (2021/22) (as at 11 September) ISA functionality
Slide 8: Financials
FINANCIALS SAGA
Slide 9: Good performance in challenging environment
GOOD PERFORMANCE IN CHALLENGING ENVIRONMENT
Slide 10: Robust insurance results, good travel cost control
ROBUST INSURANCE RESULTS, GOOD TRAVEL COST CONTROL
Slide 11: Solid broking result, improved retention translating to higher contribution
SOLID BROKING RESULT, IMPROVED RETENTION TRANSLATING TO HIGHER CONTRIBUTION Year-on-year movement in written Retail Broking Underlying Profit Before Tax
Slide 12: Strong underwriting performance
STRONG UNDERWRITING PERFORMANCE Performance ahead of expectations Movement in reserve margin HY 2021 HY 2021
Slide 13: Travel impacted by suspension into H1
TRAVEL IMPACTED BY SUSPENSION INTO H1
Slide 14: Stable underlying cost base
STABLE UNDERLYING COST BASE Underlying marketing costs* Underlying administration costs*
Slide 15: Net debt continues to reduce
NET DEBT CONTINUES TO REDUCE Movement in Adjusted Net Debt (excl. Cruise ship facilities)
Slide 16: Strengthened financial position
STRENGTHENED FINANCIAL POSITION Actions taken since April Confidence in the current position
Slide 17: Focus remains on reducing debt
FOCUS REMAINS ON REDUCING DEBT Deleverage profile with updated stress test applied
Slide 18: Performance in line with expectations
PERFORMANCE IN LINE WITH EXPECTATIONS
Slide 19: Strategic update
STRATEGIC UPDATE Euan Sutherland SAGA
Slide 20: Our long term growth plan
OUR LONG TERM GROWTH PLAN Our purpose Exceptional experiences every day We exist to Uniquely fulfil the needs of older customers Our core is Exceptional insight We do this every day Simple Personal Special People and Data, digital Driving Our strategic Optimising Reducing our culture step and brand
Slide 21: Understanding our customers better than anyone else
UNDERSTANDING OUR CUSTOMERS BETTER THAN ANYONE ELSE Ageing & the future Family & friends Happiness 25% What do you worry about? 72% 70% 38% 78% Interests Outlook What are you most looking forward to after COVID-19? 3% What is your main hobby?
Slide 22: People and culture step change delivery
PEOPLE AND CULTURE STEP CHANGE DELIVERY Focus for 2021/22 Status P P P P P
Slide 23: Data, digital and brand transformation delivery
DATA, DIGITAL AND BRAND TRANSFORMATION DELIVERY Focus for 2021/22 Status P P
Slide 24: Optimising insurance delivery
OPTIMISING INSURANCE DELIVERY Focus for 2021/22 Status P Three-year fixed-price sales Motor and home retention 47% 42% 40% 40% 39% 27% Q1 Q2 Q3 Q4 Q1 Q2 2020/21 2020/21 2020/21 2020/21 2020/21 2020/21
Slide 25: Optimising travel delivery
OPTIMISING TRAVEL DELIVERY Focus for 2021/22 Status P P P P Bookings at 11 September 2021 Cruise customer satisfaction (out of 10)
Slide 26: Driving simplicity and efficiency delivery
DRIVING SIMPLICITY AND EFFICIENCY DELIVERY Focus for 2021/22 Status P P P P P Proportion of re-broked MTAs Online self-serve volumes Sales of motor price-comparison (renewals and MTAs) product (incl. proportion of total motor price-comparison sales) 19.7% 16.5% 62% 14.4%
Slide 27: ESG highlights
ESG HIGHLIGHTS £126,000 1,743 hours Environmental Governance 115,000 vaccinations to date Social 30%
Slide 28: Confidence in our future
28 CONFIDENCE IN OUR FUTURE ® Strong progress against each of our strategic priorities, delivering the foundations for future growth ® Brand relaunch planned for later this year, supported by data and digital step change ® Strong pipeline of future Travel bookings @ Mindful of remaining COVID-19 unc
Slide 29: Appendix
APPENDIX SAGA
Slide 30: Saga plc consolidated income statement
SAGA PLC CONSOLIDATED INCOME STATEMENT
Slide 31: Insurance underwriting income statement
INSURANCE UNDERWRITING INCOME STATEMENT
Slide 32: Reserve releases
RESERVE RELEASES HY 2021 Total Group motor reduction in best estimate claim costs and COVID-19 surplus by accident year (£’m)
Slide 33: Travel income statement
TRAVEL INCOME STATEMENT HY 2021 HY 2020 Tour Total Tour Total Operations Cruising Travel Change Operations Cruising Travel Revenue £2.0m £8.0m £10.0m (80%) £33.0m £16.3m £49.38m Gross loss (£1.2m) (£17.0m) (&18.2m) (435%) - (€384m) (£3.4m) Marketing expenses (£4.1m) (&44m) (£8.5m) (27%) (£3.8m) (£2.
Slide 34: Other businesses and central costs
OTHER BUSINESSES AND CENTRAL COSTS Other Businesses Central Costs
Slide 35: Other businesses and central costs income statement
OTHER BUSINESSES AND CENTRAL COSTS INCOME STATEMENT
Slide 36: Cash flow and liquidity
CASH FLOW AND LIQUIDITY HY 2021 Change HY 2020 Retail Broking Trading EBITDA £40.9m (9%) £44.8m Other Businesses and Central Costs Trading EBITDA (£6.6m) (20%) (£5.5m) Trading EBITDA from unrestricted entities £34.38m (18%) £39.3m Dividends paid by Underwriting business £12.0m - £12.0m Working capit
Slide 37: Cash support provided to Travel
CASH SUPPORT PROVIDED TO TRAVEL Cruise cash flow Tour Operations cash flow
Slide 38: Reconciliations
RECONCILIATIONS Underlying to statutory marketing and Travel monthly burn cost administration costs
Slide 39: Summary of banking facilities and covenants
SUMMARY OF BANKING FACILITIES AND COVENANTS Summary of banking facilities Covenants attached to the RCF