Capital Markets Event

Transcription

1 Capital Markets Event Strategy 2021 Continuing our growth journey WIFI: Barbican event Password: business6381

2 Geoff Thompson Executive Chairman

3 Brendan Flattery Chief Executive Officer

4 Agenda Brendan Flattery, Chief Executive Officer Chris Charlton, MD Enterprise Division Jon Cowan, Director of Product Development Brin Sheridan, Chief Operating Officer Nigel Hudson, Marketing Director Adrienne McFarland, HR Director Richard Laker, Chief Financial Officer Brendan Flattery, Chief Executive Officer Q&A Strategy Optimise the core, Digital Multi-utility, Service proposition Energy services Brand People Opportunity scale and ambition Summary Lunch & product presentations WiseLife Paul Smith, David Elliott Intelligent Buildings & Bureau Neil O Sullivan, Mark Glynn, Jon Ferris, Lisa Gingell Strategic Utility Management Plan in Action Tim Hipperson, Chris Taylor, Chris Blench 4

5 Initial views Sustained Growth Record Committed & Skilled Colleagues Extensive Portfolio of Services Great Customer Experience 5

6 Initial views Varied Perception of TPI s One Utilitywise Progressive Partnerships / Channels External Markets Evolving 6

7 Platform for change Customers Competitors Regulation! Opportunity Opportunity Opportunity Market share growth Disrupt and differentiate Transform our brand 7

8 Opportunity landscape Never switched Switched direct Use TPI 37% 47% 16% Energy Switching Multi utility Energy Services International 12% share Educate Penetrate Develop 8 Source: Ofgem survey 2015

9 Strategic priorities 9

10 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 10

11 Chris Charlton Managing Director, Enterprise Division

12 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 12

13 Optimise the Core Insights Assessment Execution Sustaining profitable growth requires operational improvements Rigorous assessment has yielded clear areas of focus & opportunity We will focus on 4 key areas to unlock potential of the core Revenue ( m) Year Revenue Trend Sales process Proposition Range Go To Market Total revenue Depth Competition Sales Enablement Operating Model Go to market Productivity External and Internal factors in combination are affecting the core business Unemotional & objective. Thorough, & operation wide 13

14 Summary Efficiency through technology Sales processes optimised Order book growth 24% Headcount growth 7% 14

15 Digital Insights Assessment Execution Enormous volume opportunity in an unserved market Customers shop online. They demand great value & simple (trusted) service that offers transparency Transparent, friction free switching leveraging supplier relationships 1.5m SME businesses have never switched or switch direct 74% 53% Business who don t switch say they don t see a financial saving worth their effort Of SME customers choose Online as preferred source of information >50% of domestic consumers now switch via Price comparison websites We are positioned well to disrupt that market for customers digitally 15 Source: Edelman commissioned research, December 2016

16 Summary SMEs behaving like domestic consumers Hybrid engagement model Low acquisition and service costs driving volume and lifetime value 16

17 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 17

18 Jon Cowan Director of Product Development

19 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 19

20 Multi Utility Insight Our Mission Water Most businesses would like a simple arrangement for the utilities they use, to be managed together To make the right connections to the best value deals for our customers Our mission starts in a market that is being disrupted: Water 1.2m Businesses can switch supplier Of SMEs are interested in combined utility arrangements Source: Edelman commissioned research, November

21 Summary 70% Customers want simpler utilities arrangements 1.2m Water market Expanded portfolio 21

22 Service Proposition Insight Our Mission WiseLife Customers want the hassle factor taken away by someone they can trust To take care of our customers utilities, so they can take care of their businesses. Enabling SME s put their business on autopilot True service differentiation Differentiated Propositions Source: Edelman commissioned research December 2016 Customers for Life Source: Utilitywise field experience Winning Service Experience Service Plan Subscriptions 2bn potential savings Recurring Revenue Subscriptions 22

23 Summary Great Service Today: 10k SmartDash installations Unique service subscriptions: Recurring revenue Differentiation via WiseLife 23

24 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 24

25 Brin Sheridan Chief Operating Officer

26 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 26

27 Energy Services Insights Assessment Execution Rising Utility Costs i Old building technologies Vendor Locked Protocols 20bn Devices Intelligent Building Operating Platform Source: Bisria, Gartner 1.5bn UK&I market value 27

28 Summary Today s technology does not deliver Disrupt 1.5bn market Intelligent buildings = Smarter businesses Source: Bisria, Gartner 28

29 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 29

30 Nigel Hudson Marketing Director

31 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 31

32 Brand equity +59 Net Promoter Score 44% Brand Awareness Strong platform for sales growth 32 Source: Edelman commissioned research December 2016

33 Building the brand 330k Social media Per month 45k Website visits Per month 33

34 Opportunity landscape Never switched Switched direct Use TPI 37% 47% 16% c. 300m Estimated Savings Opportunity Source: Ofgem survey 2015 Source: Utilitywise. circa 700,000 businesses saving an estimated 500 each 12% share Energy Switching Engage Disrupt Re-define Transform 34

35 The challenge with utilities Big 6 Net Promoter Score % Trust TPIs Opaque Complex Poor service Negative media Trust Vacuum Source: Ofgem survey

36 Brand equity the magnetic brand Take control 2bn Savings New plant New jobs CO2 Trusted Advisor Impartial independent transparent Clarity Value Advocacy Communication Communities Colleagues Source: Utilitywise field experience 36

37 Brand equity the magnetic brand Utilitywise: More energy policy red tape is unwelcome. 58% of businesses don t understand their bills! UK retailers are wasting 300m worth of energy! Champion Business Interests Businesses paying for unnecessary power stations. Utilitywise calls for government to incentivise businesses to reduce consumption. Disjointed energy policies confusing businesses. 37

38 Brand strategy Strong Platform Differentiated Position Strategic Alignment 38

39 Adrienne McFarland HR Director

40 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 40

41 Areas of focus Management Capabilities/ Behaviour Knowing the Competition Engagement Atmosphere/ Environment Reward Performance Management Market Proposition Data Recruitment Career Development 41

42 Richard Laker Chief Financial Officer

43 Timing and potential impact Committed & Skilled Colleagues Growth delivery period FY18 to FY21 Sustained Growth Record Not a profit forecast Investment to pay back in growth period Good Customer Experience 43

44 Timing and potential impact Committed & Skilled Colleagues Growth delivery period FY18 to FY21 Sustained Growth Record Not a profit forecast Investment to pay back in growth period Good Customer Experience 44

45 Growth to date Revenue ( m) Sustained Growth 30 Record Committed & Skilled Colleagues Adjusted PBT ( m) 0 FY13 FY14 FY15 FY16 0 Adjusted Adjusted PBT PBT Revenue Revenue FY means financial year ended 31 July Adjusted PBT is profit before tax stated before exceptional items, amortisation of acquired intangible assets and non-cash accounting charges in respect of share options 45

46 UK&I customer numbers (July 2016) 1,000 Large (250 + empl) Committed & Skilled Colleagues Sustained Growth Record 16,000 SME ( empl) 15,000 Micro (1 9 empl) Good Customer Experience Customer volumes rounded to nearest 1,000 46

47 UK&I customer numbers (July 2016) Large (250 + empl) Sustained Growth Record Market share 6% SME ( empl) Micro (1 9 empl) Market share 1% 47

48 Optimise the Core / Digital (SME employees) Committed & Skilled Colleagues Market Size* 0.25 million Sustained Growth Record 6% (16,000) 12% (32,000) Good Good Customer Customer Experience Experience (*) Office of National Statistics UK business universe, as adjusted for domestic usage per Cornwall Insight research 48 48

49 Optimise the Core / Digital (Micro 1-9 employees) Committed & Skilled Colleagues Market Size* 1.5 million Sustained Growth Record 1% (15,000) 7% (100,000) Good Customer Experience (*) Office of National Statistics UK business universe, as adjusted for domestic usage per Cornwall Insight research 49

50 Multi-utility and services 140, ,000 SME Customer numbers 100,000 80,000 60,000 Micro 40,000 20,000 0 SME Micro FY16 FY21 50

51 Multi-utility Electricity Water Sustained Growth Record Water Gas 51

52 Multi-utility Electricity Water Sustained Growth Record Water Gas Insurance Telco/ Broadband 52

53 Energy Services Committed & Skilled Colleagues Sustained Growth Record Market Size (*) 1.5bn FY21 target 5% Good Customer Experience Source: Bisria 53

54 Opportunity FY18-FY21 Committed & Skilled Colleagues Grow Customer Numbers Sustained Growth Record Cross-sell & Up-sell Increase Recurring Good Customer Revenue Experience as % of Group Revenue 54

55 Opportunity 2021 Committed & Skilled Colleagues SME Market Share Sustained Growth Record 2% to 7% SME Customer Numbers 31k to 130k UK&I corporate controls market share Good Customer Experience 5% 55

56 Brendan Flattery Chief Executive Officer

57 Strategy to deliver continued growth Utilitywise Strategic Priorities Winning in the market Customers for life Revolutionise markets Colleagues One Utilitywise Strategic Initiatives Optimise The Core Digital Service Proposition Multi Utility Energy Services International Expansion Measures of Success New Customers Order Book Conversion WiseLife Customers Water Contracts Cross-sell Customer Base SmartDash Customers Net Promoter Score Enablers Values People Organisation Technology Culture Brand Flawless Execution Do the right thing Innovation Make a difference Collaboration 57

58 Summary Committed & Skilled Colleagues Maintain Sustained Growth Record focus Clarity of strategy Winning in Good Customer Experience the market 58 58

59 Q&A

60 Lunch & product presentations, Frobisher Rooms Wiselife presentation Paul Smith, David Elliott Intelligent Buildings & Bureau presentation Neil O Sullivan, Mark Glynn, Jon Ferris, Lisa Gingell Strategic Utility Management Plan in Action Tim Hipperson, Chris Taylor, Chris Blench 60

61 Lunch & product presentations, Frobisher Rooms Wiselife presentation Paul Smith, David Elliott Intelligent Buildings & Bureau presentation Neil O Sullivan, Mark Glynn, Jon Ferris, Lisa Gingell Strategic Utility Management Plan in Action Tim Hipperson, Chris Taylor, Chris Blench 61