Annual Report and Accounts 2024

A more focused Group:

Transformed for growth

CPPGroup is a provider of assistance services which reduce disruptions to everyday life for millions of people across the world.

Our strategic reset in 2022 signified the start of a transformation process which focused on developing the organisational alignment and innovation required to deliver on our purpose of making a bad day better and our ambition to be a leading global provider of digital assistance products and solutions, led by Blink Parametric and supported by CPP India and CPP Turkey The successful execution of this transformation is now complete and has provided us with a platform for accelerating sustainable growth for all our stakeholders.

Highlights 1

Strategic report

CPP at a glance 2

Chairman's statement 4

Chief Executive Officer's statement 6

Strategic framework 10

Investment case 11

Business model 12

Market overview 14

Our strategic priorities 16

Our business units: Blink Parametric 18

Our business units: CPP India 22

Our business units: CPP Turkey 24

Sustainability and TCFD report 26

Key performance indicators 28

Chief Financial Officer's statement 29

Risk management and principal risks 33

Section 172(1) statement 36

Board of Directors and Company Secretary Corporate governance report Report of the Nomination Committee Report of the Audit Committee Directors' remuneration report Directors' report

Statement of Directors' responsibilities

• Independent Auditor's report 54

• 38 Consolidated income statement 59

• 40 Consolidated statement of

• 44 comprehensive income 60

• 45 Balance sheets 61

• 47 Consolidated statement of

• 51 changes in equity 62

• 53 Company statement of

  changes in equity 63

  Consolidated cash flow statement 64

  Notes to the financial statements 65

  Glossary 102

  Company offices 104

  Shareholder information 105

Highlights

Resilient performance, strategic progress

CPP at a glance

Assistance for customers, value for partners

What we do

CPPGroup is an AIM-listed business operating through three Core businesses to create and deliver products and services that make the everyday lives of over 10 million customers easier.

All our services are offered through partners as embedded solutions or relevant add-ons and are designed to improve operational efficiency, revenues, engagement and transparency, and drive higher satisfaction rates, thereby creating value for the partner and value for the customer.

Our distribution partners operate in the insurance and financial services sectors in our core markets of India and Turkey, and through Blink we deliver seamless digital solutions in North America, Continental Europe, the UK, and Asia Pacific.

Chairman's statement

David Morrison

Non-Executive Chairman

We are in a stronger position to realise our future opportunities

I am encouraged by our progress in transforming the Group this year to bring about better outcomes for all stakeholders "

The last year has witnessed the conclusion of the CMP and the divestment of non-core assets, such as the shareholding in Globiva in India. This leaves the Group with its businesses in India, Turkey and Blink, on which I comment below, and the residual UK back book, which is now in run-off.

Operationally our business is now streamlined and efficient, with each of the Group's Core businesses having its own independent management team, operational processes and IT infrastructure. The role of the centre has also been re-focused, with annual central costs, before recharges to business units, reducing from over £10 million in 2023 to £7 million for 2024 with further reductions expected in 2025 to below £5 million.

A great deal has been achieved in the last two years and I would like to acknowledge the role of the management team, from top to bottom, ably led by Simon Pyper, in performing the necessary surgery to position your company for a new period of growth, which will be led by Blink.

Strategy for growth, and our focus on Blink

Blink's growth strategy is simple: provide innovative parametric solutions to a growing roster of large global and regional insurance companies that, in partnership, deploy its solutions across multiple geographies, multiple platforms, and multiple customer audiences (consumers, banks, airlines).

There is additional information on Blink later in this report, but it is worthy of note that, in the last year, Blink has:

• • moved beyond 'proof of concept' to become a business which, with some further investment, is well placed to exploit the global and regional opportunities for its Travel Disruption and Cyber Solution services;

• • increased its customer base, providing Travel Disruption and

  Cyber solutions to 28 partners (2023: 17) across 22 geographies, with its digitally delivered solutions included in over 1.5 million customer policies during the year; and

• • continued to deliver real and measurable benefits for its business partners, which is reflected in Blink's 100% renewal rate from existing partners, and growth in total Annualised Recurring Revenues (ARR) of 62% to £1.6 million (2023: £1.0 million).

CPP India and CPP Turkey

Our Indian and Turkish businesses performed in line with expectations set at the start of the financial year and, despite currency headwinds, both of them contributed positively to the Group's overall results and delivered improved year-on-year operational metrics. The solid performance of the Turkish business was impressive in the light of the continuing unfavourable macroeconomic environment in Turkey, which effectively precludes further sterling investment and which inevitably depresses the sterling value of the company.

CPP India, in contrast, benefits from the growth of the Indian economy, but it is heavily dependent on a single, long-standing contractual relationship with Bajaj Finance Limited (Bajaj), from which the vast majority of its revenues derive. Nevertheless, both it and our Turkish business generate surplus funds, which have facilitated further investment in Blink in the past year.

Financial results

The Group's trading performance for the year was robust notwithstanding adverse currency headwinds, the partial transfer of Bajaj's LivCare business to locally based (Indian) insurers and the continued, but wholly anticipated, losses in Blink. Revenues and EBITDA from continuing operations (Blink, CPP India, CPP Turkey and the UK

Legacy business which is in run-off) were in line with expectations with revenues at £156.4 million (2023 restated: £173.4 million) and EBITDA at £1.4 million (2023 restated: £1.3 million).

Board changes

In November of last year, Alice Glenister was invited to join the Board as a Non-Executive Director, and Eleanor Sykes our Group Chief Operating Officer, became an Executive Director. Their appointments reflect the increasing focus of the Group on the development of Blink, in which Eleanor has played an important role. Alice brings to the Board extensive knowledge of the rapid developments taking place in the wider world of parametric insurance and we will benefit from her sector knowledge and experience.

Outlook

Whilst it might seem counter-intuitive to focus on Blink as the core driver of growth for the Group, its development in the last year with limited resources gives us cause for considerable optimism. Our Indian and Turkish businesses have both made a solid contribution, but their ability to deliver long-term value to shareholders is, to some degree, determined by local economic and contractual shackles dating from several years ago.

The Group's ability to invest further in Blink, or for that matter any of its businesses, is inevitably constrained by its limited resources. The UK back book, which previously provided surplus capital for investment, is now in run-off and until such time as we can wind up its activities entirely, will be loss making and cash flow negative. Consequently, we must be both focused and diligent in our capital allocation and early indications suggest, that Blink will over the medium to long-term provide the best return on capital, and as importantly, provide the best long-term outcomes for shareholders.

David Morrison Non-Executive Chairman 24 March 2025

Chief Executive Officer's statement

A sharper focused business with high growth potential

Chief Executive Officer

We have undergone many people, operational and organisational changes in 2024 to build resilient foundations to take the Group forward for the future "

Introduction

The past year has been pivotal for the Group, as we completed our CMP, exited from non-Core businesses such as Globiva, and continued our investment and development of Blink

We ended the year as the business we set out to be in September 2022, a digitally focused business led by Blink and supported by CPP India and CPP Turkey.

But why our focus on Blink? In simple terms, Blink represents the best opportunity for the Group to deliver long-term value growth, as valuation multiples for businesses such as Blink, are significantly ahead of those for traditional insurers and sister businesses such as CPP India and Turkey. In addition, Blink unlike its sister businesses, operates in two global markets (Travel Disruption & Cyber Security) both of which are growing, and both of which are absent either a dominant player or reliance on a single key partner. If we are successful in our endeavours, Blink will not need to achieve a significant level of market share to become a highly profitable, highly cash generative, and highly valued business.

Our confidence is not unfounded, over the past year Blink has moved beyond proof of concept with its products and services now providing clear and measurable benefits to a growing number of business partners (increased revenues and retention rates) and end consumers.

We start the new financial year with optimism, we have made good progress, but there remains much to do before Blink reaches its full potential.

Financial performance

Blink performed well during the year, increasing ARR by 62% to £1.6 million, adding 11 new clients, and achieving a 100% renewal rate of its existing contract base. CPP India and CPP Turkey, despite currency headwinds and the partial transfer of Bajaj's LivCare business to locally based (Indian) insurers, both delivered a good set of trading results for 2024.

Three key factors which impacted our 2024 results:

• 1. Blink investment: Blink is the Group's only global product, currently focused on delivering parametric solutions to the global travel insurance (flight delay and lost luggage) and consumer cyber security markets. It forms a key part of the Group's strategy and needs sustained investment over the medium-term if it is to realise its full potential. During the year Blink's headcount increased by ten to 36 colleagues with administrative costs increasing by 39% to £3.5 million. Blink reported an EBITDA loss of £2.7 million compared to the £1.8 million loss in the prior year.

• 2. CPP India: the transfer by Bajaj of part of the LivCare portfolio to locally based insurers reduced full year revenues by circa £16.0 million, which adversely impacted EBITDA by circa £0.5 million.

• 3. Currency headwinds: the Group derives 98% of its revenues in Indian rupees and Turkish lira which have seen a further weakening against sterling, the Group's reporting currency. On a constant currency basis, the Group would have reported an additional £0.4 million of EBITDA.

Key performance metrics

Revenue

• 1. EBITDA represents earnings before interest, taxation, depreciation, amortisation and exceptional items.

• 2. Restated to reflect Globiva, Italy and Spain as discontinued operations.

• 3. Legacy comprises the UK which is in active run-off.

EBITDA1

Chief Executive Officer's statement continued

Financial performance continued

Of the three key factors which subdued EBITDA growth, only the increased investment in Blink was known and forecast, whilst the loss of part of the LivCare book and the currency headwinds, particularly in India, were unknown.

The operating loss of £2.8 million (2023 restated: £6.1 million loss) includes depreciation charges of £2.4 million (2023 restated: £1.4 million) and exceptional items of £1.8 million (2023 restated: £6.0 million). The majority of the 2024 exceptional charge relates to costs associated with the CMP.

Business unit performance

Blink: EBITDA loss of £2.7 million (2023: £1.8 million loss)

Blink provides real-time, data-driven, white-labelled assistance solutions that are designed to be embedded into insurance provider products which, on an event being triggered, provides immediate, digitally delivered support to their (the insurers) customers.

The Group has made significant progress scaling Blink throughout 2024, and the business is now in a substantially stronger position against this time last year, enabled by focused investments in technology and people during the period.

Working with a number of the world's leading global and regional insurers, Blink now operates in 22 geographies (2023: 12) with 28 partners (2023: 17). There is a healthy pipeline of opportunity ahead, and our enhancements in the year provide a strong foundation for further growth with new and existing customers.

Blink's current product set falls into two broad categories: Travel Disruption and Cyber Security.

Travel disruption

The global travel disruption insurance market (travel and lost luggage insurance premiums) is estimated at $25 billion for 2025, growing to $62 billion in 2028. Blink's strategy is to provide innovative parametric solutions for this global market by growing its roster of large global and regional insurance companies which, in partnership, deploy Blink's solutions across multiple geographies, platforms and customer audiences (consumers, banks, airlines etc.).

Blink's products and services provide clear and measurable benefits for our partners and their customers (the end consumer), with a recent case study from one partner suggesting that the inclusion of a Blink solution into the insurer's core offer increased policy sales (new and renewals) and price points and reduced claims processing times and costs.

Key contract highlights for 2024

• • Partnership with AXA Partners (part of the AXA Group and one of the largest travel insurers) to provide Blink's flight delay solution, initially in nine geographies, to Hong Kong Express (a leading airline in Asia).

• • Contract extensions with Zurich in Asia Pacific and MAWDY

  (part of the MAPFRE Group) in Europe and Africa.

• • 100% renewal rate for existing partner base.

Cyber security

The global consumer cyber security market (identity theft and fraud prevention) is estimated at $14 billion for 2025, growing to $40 billion in 2028. Blink's strategy is to partner with large US and non-US cyber security and credit reporting businesses that can embed Blink solutions into their core product across multiple platforms and geographies.

Blink's CyberScan solution provides our partners with an innovative technology platform, which is adaptable and deployable globally, which helps to secure the digital personal information of their end customer. We expect that once our products and services are embedded within our partners' core propositions, they will secure real and measurable economic benefits from having done so, similar to our travel model.

Key contract highlight for 2024

• • In December Blink signed a global framework agreement with a major US-based cyber security and credit reporting business, for the inclusion of its dark web monitoring solution, Blink CyberScan, into its suite of cyber services. The agreement will initially see Blink's services being offered into four of our partners' key European markets, with the agreement allowing for further rollout across their global network.

Blink has in 2024 moved well beyond proof of concept and is, with some additional investment, well placed to deliver long-term growth and shareholder value.

CPP India: EBITDA of £6.6 million (2023: £5.8 million), EBITDA margin 4.6% (2023: 3.6%)

CPP India works closely with its business partners to drive value by growing customer loyalty through the design and delivery of simple and innovative products, which fit seamlessly into the everyday lives of consumers. The overall outcome for the year, given the partial transfer of the Bajaj LivCare business (to locally based insurers) and currency headwinds, is satisfactory.

The transfer of part of the LivCare portfolio reduced full year revenues by circa £16.0 million, which adversely impacted EBITDA by circa £0.5 million. On an annualised basis, the impact to revenue and EBITDA is circa £19.0 million and £0.6 million respectively. However, due to the benefits of the CMP this shortfall in EBITDA was more than offset in 2024 by lower operational costs.

Administrative expenses reduced by 6% following the full deployment in Q2 of the new cloud-based IT platform which not only utilises modern technology systems, but is also delivered at a lower cost. As a result of the transferred LivCare business, which is a low-margin product, and lower operational costs the EBITDA margin has improved by 1.0 percentage point.

During 2024, Bajaj, which accounts for circa 85% of CPP India revenues, extended its contract to 31 December 2027.

CPP Turkey: EBITDA of £1.4 million (2023: £1.2 million), EBITDA margin of 16.3% (2023: 24.6%)

CPP Turkey performed well during the year with EBITDA increasing by 22% (66% on a constant currency basis). That the business has been able to deliver real growth in difficult economic circumstances (high inflation and currency volatility) is a clear indication of the quality of our management team and business partner relationships.

During the year, CPP Turkey has extended and improved its health service contract with Türkiye Insurance which has led to a £2.3 million year-on-year revenue increase.

Legacy business: EBITDA loss of £0.4 million (2023 restated: £0.8 million profit)

All of the Group's Legacy businesses, save for the UK Card renewal book, which is now in active run-off, have either been closed or disposed of. As the UK business entered run-off at the start of 2024, there have been no renewals in the year which led to a revenue decline of 81% and due to a relatively fixed cost base to service the remaining policies, the UK shifted to an EBITDA loss of £0.4 million (2023: £0.8 million profit). The UK run-off will see the final policies expire on 31 December 2026.

Central costs: £3.5 million (2023 restated: £4.7 million)

Central overheads before appropriate recharge to business units are £6.9 million (2023: £10.1 million) with the reduction being led by the benefits of the CMP, with lower IT costs following decommissioning of the legacy platform in May 2024 and right-sizing of the central headcount required to manage a simplified Group. The UK-based central IT cost reduced by 40% to £2.0 million (2023: £3.3 million) and will reduce further in 2025 as the full year benefit of the IT reductions come through.