STRICTLY PRIVATE & CONFIDENTIAL

2020 INTERIM RESULTS

15 September 2020

INTERIM RESULTS H1 2020

N E I L S T E V E N S J o i n t C E O

H1 Highlights

M A T T T I M M I N S

J o i n t C E O

A G E N D A

AcceleratingFinancial

DigitalPerformance

Strategy

G A R E T H H A G U E G r o u p F D

Clear

Strategic

Focus

RESI LIENT PERFORMANCE - DI GITAL ACCELERATION

2 | H1 2020 | INTERIM RESULTS

RESILIENT PERFORMANCE - DIGITAL ACCELERATION

H1 2020 - FINANCIAL HIGHLIGHTS

£ 2 8 . 9 m

£ 7 . 4 m

2 5 . 5 %

Revenue

Adjusted1 EBITDA

Adjusted1 EBITDA Margin

(1)% H1 2019

(8)% H1 2019

27.5% H1 2019

£ 5 . 3 m

4 . 2 2 p

6 5 %

Adjusted1 PBT

Adjusted1 EPS

Free cash flow conversion

(14)% H1 2019

(24)% H1 2019

Net debt of £25.8m

FULL YEAR EPS NO LESSTHAN 11.0p

As at 30 June 2020

3 | H1 2020 | INTERIM RESULTS

RESILIENT PERFORMANCE - DIGITAL ACCELERATION

H1 2020 - OPERATIONAL HIGHLIGHTS

Scale strong,

Defaqto strong

Digital strategy

delivery

moved all services to

Subscriptions growing

platform

All intermediary

Customer engagement

Award Winning

& satisfaction increased

services delivered to

Service

schedule

Effectively responded to COVID-19 disruptions

4 | H1 2020 | INTERIM RESULTS

SIMPLYBIZ

Fintech & Services to

Distribution Services to

5,600 retail intermediaries

400 financial institutions

Enabling better outcomes

5 | H1 2020 | INTERIM RESULTS

A Quality Business in a Quality Market

Market

Unrivalled

Quality

Strong

Accelerating

digital

leading scale

breadth

revenues

margins

strategy

£2.6 trillion retail market

6 | H1 2020 | INTERIM RESULTS

FINANCIAL PERFORMANCE

H1 2020 Financial Performance

£m

2020

2019

Change

Revenues

28.9

29.1

(1%)

EBITDA1

7.4

8.0

(8%)

EBITDA Margin1

25.5%

27.5%

(7%)

Profit before tax1

5.3

6.2

(14%)

EPS2

4.2p

5.6p

(24%)

Free cash flow conversion3

65%

43%

1 - Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and operating exceptional costs. Adjusted profit before tax excludes operating exceptional costs and amortisation of intangible assets arising on acquisition.

2 - Adjusted Earnings Per Share is calculated as adjusted profit after tax, which excludes operating exceptional costs and amortisation of intangible assets arising on acquisition, divided by the average number of ordinary shares in issue for the period.

3 - Free cash flow conversion is calculated as adjusted EBITDA, less working capital movements, lease payments, CAPEX, development expenditure, corporation tax paid and interest, as a percentage of Adjusted EBITDA.

8 | H1 2020 | INTERIM RESULTS

RESILIENT PERFORMANCE

H1 2020 - REVENUE

REVENUE £M

£4.1m of revenue impacted by Covid-19 lockdown

9 | H1 2020 | INTERIM RESULTS

RESILIENT PERFORMANCE

H1 2020 - Adjusted EBITDA

EBITDA £M

£1.7m of EBITDA directly impacted by Covid-19 lockdown

10 | H1 2020 | INTERIM RESULTS

H1 2020 - FREE CASH FLOW

£'000

Jun 20

Jun 19

Adjusted EBITDA1

7.4

8.0

Working Capital

1.8

(2.4)

Tax paid

(1.4)

(0.4)

CAPEX

(1.0)

(0.0)

Development spend

(1.4)

(0.9)

Interest

(0.3)

(0.4)

Lease Payments

(0.5)

(0.4)

Free cash flow

4.7

3.4

Conversion (%) 2

65%

43%

1 - Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation, share option charges and operating exceptional costs.

2 - Free cash flow conversion is calculated as adjusted EBITDA, less working capital movements, lease payments, CAPEX, development expenditure, corporation tax paid and interest, as a percentage of Adjusted EBITDA.

11 | H1 2020 | INTERIM RESULTS

GROWING QUALITY EARNINGS

H1 2020 Revenue £m

Fintech &

Research

£7.4m

25%

H1 2019

£4.2m

Intermediary

14%

Services

H1 2019

£12.3m

£11.6m

43%

40%

H1 2019 £13.3m 46%

Distribution

Channels

£9.2m

32%

H1 2020 EBITDA £m

Fintech &

H1 2019

Intermediary

H1 2019

Services

Research

£2.0m

£2.9m

25%

£2.3m

£2.4m

29%

33%

39%

H1 2019

£3.7m

46%

Distribution

Channels

£2.1m

28%

12 | H1 2020 | INTERIM RESULTS

STRATEGIC PRIORITIES

STRATEGIC PRIORITIES

Accelerating Digital delivery

Growth in value per customer

Growth in higher value customers

Effective cost control

Capital & Cash efficiency

14 | H1 2020 | INTERIM RESULTS

DIGITAL ACCELERATION

Regulatory

Qualifications

Adviser &

Financial

Product and fund

Suitability and

Services

and training

company data

Planning

research and

client reporting

ratings

Fintech & services platform

Enhanced services

Increased products per customer

Improved margin

15 | H1 2020 | INTERIM RESULTS

RESILIENTDIGITAL

PERFORMANCEACCELERATION

Resilient trading

Digital delivery to all customers

Preserved scale and quality earnings

Improved customer journey

Strong margin

Digital platform for growth

FULL YEAR EPS NO LESSTHAN 11.0p

16 | H1 2020 | INTERIM RESULTS

APPENDICES

Business overview (18-22) Market drivers (23-25) Revenue model (26-30) Product mix (31-33)

PROVEN MANAGEMENT TEAM

M A T T T I M M I N S

N E I L S T E V E N S

G A R E T H H A G U E

Joint CEO

Joint CEO

Group Finance Director

Joined the Group as Marketing Director at inception in 2002

Appointed Joint Managing Director in May 2010

Joined the Group in 2003

Joined the Group in 2016 as

Appointed Joint Managing

Group Financial Controller

Director in May 2010

Appointed Group Finance

Director in April 2018

NON-EXECUTIVE DIRECTORS

K E N D A V Y

T I M C L A R K E

G A R Y H U G H E S

Non-Executive Chairman

Non-Executive Director

Non-Executive Director

18 | H1 2020 | INTERIM RESULTS

UK FINANCIAL SERVICES - AN INTERMEDIATED MARKETPLACE

A HIGHLY FRAGMENTED MARKET WITH REGULATORY AND DISTRIBUTION CHALLENGES

Manufacturer /

Product

Provider

Communicate

performance track

record

Due

Technology

Diligence /

buy lists

Grant

integration

agencies

Consumer

insights

Face to Face

personal selling

Educate and train

intermediaries Research the intermediated client

market

Communicate

brand messagesProduct appropriateness

Communicate product / fund information

Financial

Intermediaries

Meet regulators

requirements

Investment

GDPR

Taxation

compliance

and trusts

research

knowledge

Access

Marketing

to PII

Gather and process

Access to

Consumers

customer and

competitive

product data

products

Competency Product

testingResearch

Fintech platform

Open agencies with

manufacturers

Est. 80% of UK Retail Asset Management sales are intermediated £197bn in 2018*

Est. 70%+ of UK Mortgages sales are intermediated est. £187bn in 2018**

19 | H1 2020 | INTERIM RESULTS

*Source: The Investment Association, 2019 **Source: UK Finance

MARKET ENABLER

PROVIDING ESSENTIAL SERVICES TO THE SUPPLY-SIDE AND DEMAND-SIDE OF RETAIL FINANCIAL SERVICES

Regulatory

expertise

Consumer &

Product features

Product

Website

Market insight

& pricing data

marketing

Mappings

Fund

platform

Provide a panel

Investment

Reviews

Regulatory

for Protection

product

Taxation

Compliance

and GI products

integration

and trusts

Services

Centralised

Specialists

Provide a panel

Provide

Investment

Products

Manufacturer /

for mortgage

home valuation

Process

PII broking

with

products

services

Financial

Consumers

Product

enhanced

Intermediaries

Product

Provider

Provider

Distribute

terms

Deliver seminars

technical

agencies

marketing and

and Events

Product and

information

umbrella

communications

fund Research

Fund

Software

Provide a panel

Data Information

Fintech

for investment

Reviews

Services

Back office

products

platform

software

20 | H1 2020 | INTERIM RESULTS

OUR LOCATIONS AND TEAMS

  • 560 staff at 30/06/20
  • Track record for recruiting and retaining talent across all business areas
  • High level of staff retention, average tenure of 5 years
  • Staff skill set and experience supports continued operational leverage

21 | H1 2020 | INTERIM RESULTS

DEFENSIVE GROWTH - BENEFICIARY OF CHANGING REGULATION

NEW SERVICE DEVELOPMENT TO RESPOND TO MARKET TRENDS, REGULATORY INTERVENTION AND MEETING ADVISER NEEDS…

22 | H1 2020 | INTERIM RESULTS

MARKET DRIVERS: INVESTMENT INTERMEDIARIES

HIGH QUALITY CUSTOMERS WITH STRONG GROWTH DRIVERS

  • Strong customer growth
  • Rapid digital adoption.
  • Regulatory drivers increase demand

£6,000

£5,000

£4,000

£3,000

£2,000

£1,000

£-

G R O W I N G V A L U E O F H I G H Q U A L I T Y

I N T E R M E D I A R Y F I R M S

4725

4864

4970

5048

5131

2014

2015

2016

2017

2018

Commission £m

Fees / charges £m

Other revenue £m

Number of firms

Source: FCA Sector views 2020

23 | H1 2020 | INTERIM RESULTS

MARKET DRIVERS: PRODUCT PROVIDERS

HIGH QUALITY CUSTOMERS WITH STRONG GROWTH DRIVERS

  • Intermediary Market is no.1 channel
  • Data on and engagement with intermediaries are essential

£1,200Bn on

£420Bn non-

intermediary

workplace pensions

platforms

£116Bn pension

Intermediaries are

13.4m mortgage

the leading channel

income drawdown

customers

to customers

  • Regulatory drivers increase demand

1.2m new

£1,414Bn

mortgages in 2019

outstanding

mortgage loans

Source: FCA Sector views 2020

24 | H1 2020 | INTERIM RESULTS

MARKET DRIVERS: REGULATORY CHANGE

REGULATORY DRIVERS ARE STRONG IN 2020/21

FROM DEAR CEO AND FROM FCA SECTOR VIEWS

Regulatory Drivers -

Regulatory Drivers -

Intermediaries

Product Providers

Advice Suitability

MiFID II

Fees

Costs and Charges

Defined Benefit Pensions

Investment Risk

Senior Manager's Regime

Product Design

25 | H1 2020 | INTERIM RESULTS

STRATEGIC PRIORITIES - GROWTH IN VALUE PER CUSTOMER

QUALITY CUSTOMER BASE WITH LATENT VALUE

  • New customer wins focus on value per customer

26 | H1 2020 | INTERIM RESULTS

  • Digitisation will increase services and fee income

Fee Income quartiles vs Services taken

7

6

5

4

3

2

1

0

CCC

Quartile 1

Quartile 2

Quartile 3

Quartile 4

Avg Annual Fees (£k)

Avg No of services

4

3.5

3

2.5

2

1.5

1

0.5

0

STRONG MARGIN WITH QUALITY EARNINGS

RESILIENT PERFORMANCE WITH ACCELERATED DIGITAL DELIVERY

  • High-qualityrevenues delivered by a resilient business
  • 58% Saas and recurring revenues
  • Accelerated digital delivery is expected to increase SaaS and recurring revenues

REVENUE QUALI TY H1 2020

£8.0m

27%

£11.7m

£0.3m

1%

41%

£8.9m

31%

Saas Recurring Repeat Other

27 | H1 2020 | INTERIM RESULTS

DIVISIONAL PERFORMANCE

INTERMEDIARY SERVICES

H1 2020

H1 2019

Growth

Revenue £m

12.3

11.6

5.9%

% Group

43%

40%

EBITDA £m

2.4

2.3

3%

% Group

33%

29%

Margin %

19.6%

20.2%

All services in the division are provided to and paid for by financial intermediaries and employee benefit providers

Employee

Benefits

£1.7

14%

Software £2.7 22%

Additional

Services

£2.6

21%

Membership £5.3 43%

H1 2020

% Division

Growth

Quality

Margin

Membership

Intermediary member fees for support services

£5.3

43%

4.4%

Recurring

High

Additional Services

Additional compliance and business support

£2.6

21%

9.0%

Recurring

Medium

Software

Reseller and proprietary Fintech

£2.7

22%

10.1%

SaaS

Medium

Employee Benefits

Zest Fintech for EBCs, Providers and Employers

£1.7

14%

1.0%

SaaS

Low

£ figures in £m

28 | H1 2020 | INTERIM RESULTS

DIVISIONAL PERFORMANCE

DISTRIBUTION CHANNELS

H1 2020

H1 2019

Growth

Revenue £m

9.2

13.3

-30.8%

% Group

32%

46%

EBITDA £m

2.1

3.7

-44%

% Group

28%

46%

Margin %

22.4%

27.7%

All services in the division are provided to and paid for by product providers and employee benefit providers

Marketing Services

Seminars and marketing content to advisers

Mortgage Services

Mortgage club transaction fees on products

Valuation Services

Property valuations for mortgage transactions

Own Funds

Investment solutions

Insurance Services

Commission income on product sales

Insurance

Services

£1.0

Marketing

Own

11%

Services

Funds

£2.6

£1.2

28%

13%

Valuation

Services

£2.1

Mortgage

Services

23%

£2.3

25%

H1 2020

% Division

Growth

Quality

Margin

£2.6

29%

-25.9%

Repeat

High

£2.3

24%

-28.2%

Repeat

High

£2.1

23%

-52.0%

Repeat

Low

£1.2

13%

1.6%

Repeat

High

£1.0

11%

-3.1%

AUM

High

£ figures in £m

29 | H1 2020 | INTERIM RESULTS

DIVISIONAL PERFORMANCE

FINTECH & RESEARCH -

EARNINGS ENHANCING RESULTS IN H1 2020

H1 2020

H1 2019

Growth

Other

Revenue £m

7.4

4.2

77.1%

Services

% Group

25%

14%

£0.3

EBITDA £m

2.9

2.0

46%

4%

% Group

39%

25%

Margin %

39.2%

47.5%

Product

Ratings

All services in the division are provided by

Software

£3.5

£3.6

48%

Defaqto

48%

H1 2020

% Division

Growth

Quality

Margin

Product Ratings

Research and ratings for financial products

£3.5

48%

97%

Repeat

High

Software

Fintech and data services

£3.6

48%

86%

Saas

High

Other Services

Bespoke project and consultancy

£0.3

4%

-41%

Medium

£ figures in £m

30 | H1 2020 | INTERIM RESULTS

DELIVERING BETTER OUTCOMES FOR RETAIL FINANCIAL SERVICES

Membership

Marketing Services

Additional services

Mortgage & Valuation Services

Software

Insurance Panel

Employee Benefits

Own products

Market and product insights

31 | H1 2020 | INTERIM RESULTS

DELIVERING BETTER OUTCOMES FOR RETAIL FINANCIAL SERVICES

INTERMEDIARY SERVICESDISTRIBUTON CHANNELS

Fintech

Ratings

(Engage + CENTRA)

Fund Reviews

Research and Panels

Mappings

Data Services

Market Insights

FINTECH & RESEARCH THAT INFORMS CONSUMERS, ADVISERS AND PRODUCT PROVIDERS

32 | H1 2020 | INTERIM RESULTS

POWERFUL ANALYTICS DATA

Firm data /

CPD /

Back Office /

Financial

Product and fund

Suitability

Regulatory

qualifications

CRM

Planning

comparison /

return

and learning needs

journey

selection

Detailed Intermediary and aggregated Consumer Insights

Asset Managers

Life & Pension Companies

Investment Platforms

Product

Product

Sales &

Product

Compliance

Optimisation

Marketing

Design

Appropriateness

Competitor Analysis

Distribution Analysis

Needs Analysis

THESE ARE EXAMPLES OF SERVICES AND TARGET CUSTOMERS WE CAN PURSUE

33 | H1 2020 | INTERIM RESULTS

DISCLAIMER

This presentation has been prepared by The SimplyBiz Group plc ("SimplyBiz" or the "Company") and the information contained herein is restricted and is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. In particular, the information contained herein is not for release, publication or distribution, directly or indirectly, in or into the United States, Australia, Canada, Japan, the Republic of South Africa or any other jurisdiction in which such release, publication or distribution would be unlawful.

The presentation and the information contained herein is for information purposes only and shall not constitute an offer to sell or otherwise issue or the solicitation of an offer to buy, subscribe for or otherwise acquire securities in any jurisdiction in which any such offer or solicitation would be unlawful. This presentation and the information herein does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to purchase, acquire or subscribe for any securities in the United States, Canada, Australia, Japan or the Republic of South Africa and may not be viewed by persons in the United States (within the meaning of Regulation S under the US Securities Act of 1933, as amended (the "Securities Act")). Securities in the Company may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities law of any relevant state or other jurisdiction of the United States.

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34 | H1 2020 | INTERIM RESULTS

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Simplybiz Group plc published this content on 15 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2020 07:39:04 UTC