capital markets event - utilitywise plc · capital markets event strategy 2021 2ndmarch 2017. ...

www.utilitywise.com

Continuing our growth journey

Capital Markets EventStrategy 2021

2nd March 2017

www.utilitywise.com

Geoff ThompsonExecutive Chairman

www.utilitywise.com

Brendan FlatteryChief Executive Officer

www.utilitywise.com

• Brendan Flattery, Chief Executive Officer Strategy

• Chris Charlton, MD Enterprise Division Optimise the core, Digital

• Jon Cowan, Director of Product Development Multi-utility, Service proposition

• Brin Sheridan, Chief Operating Officer Energy services

• Nigel Hudson, Marketing Director Brand

• Adrienne McFarland, HR Director People

• Richard Laker, Chief Financial Officer Opportunity scale and ambition

• Brendan Flattery, Chief Executive Officer Summary

• Q&A

• Lunch & product presentations• WiseLife Paul Smith, Jonathan Wilkinson (1.15pm & 1.45pm)

• Intelligent Buildings & Bureau Neil O’Sullivan, Mark Glynn, Jon Ferris, Lisa Gingell (1.15pm & 1.45pm)

• Strategic Utility Management Plan in Action Tim Hipperson, Chris Taylor, Chris Blench

4

Agenda

www.utilitywise.com

Sustained Growth Record

Great Customer Experience

Committed & Skilled Colleagues

Extensive Portfolio of Services

5

Initial views

www.utilitywise.com

External Markets Evolving

One UtilitywiseVaried Perception of TPI’s

Progressive Partnerships /

Channels

6

Initial views

www.utilitywise.com7

Customers Competitors Regulation

Market share growth Disrupt and differentiate Transform our brand

!

Opportunity Opportunity Opportunity

Platform for change

www.utilitywise.com8

37% 47% 16%

Never switched Switched direct Use TPI

12%share

Energy Sw

itchin

g

Mu

lti utility

Energy Services

Intern

ation

al

PenetrateEducate Develop

Opportunity landscape

Source: Ofgem survey 2015

www.utilitywise.com9

Strategic priorities

www.utilitywise.com10

Strategic Initiatives

Digital International Expansion

Optimise The Core

Multi Utility

Service Proposition

Utilitywise

Winning in the market • Customers for life • Revolutionise markets • Colleagues • One Utilitywise

New CustomersOrder BookConversion

WiseLife CustomersWater Contracts

Cross-sell

Customer BaseSmartDash Customers

Net Promoter Score

Measures of Success

Flawless Execution • Do the right thing • Innovation Make a difference • Collaboration

Strategic Priorities

People • Organisation • Technology • Culture • Brand Enablers

Energy Services

Values

Strategy to deliver continued growth

www.utilitywise.com

Chris CharltonManaging Director, Enterprise Division

www.utilitywise.com12

Strategic Initiatives

Digital International Expansion

Optimise The Core

Multi Utility

Service Proposition

Utilitywise

Winning in the market • Customers for life • Revolutionise markets • Colleagues • One Utilitywise

New CustomersOrder BookConversion

WiseLife CustomersWater Contracts

Cross-sell

Customer BaseSmartDash Customers

Net Promoter Score

Measures of Success

Flawless Execution • Do the right thing • Innovation Make a difference • Collaboration

Strategic Priorities

People • Organisation • Technology • Culture • Brand Enablers

Energy Services

Values

Strategy to deliver continued growth

www.utilitywise.com

Optimise the Core

13

Insights Assessment Execution

We will focus on 4 key areas to unlock potential of the core

Sustaining profitable growth requires operational improvements

Rigorous assessment has yielded clear areas of focus & opportunity

0

20

40

60

80

100

2014 2015 2016

Rev

enu

e (£

m)

3-Year Revenue Trend

Total revenue Headcount

External and Internal factors in combination are affecting

the core business

Unemotional & objective.Thorough, & operation wide

Go To Market

Sales Enablement

Operating Model

Productivity

Sales process

Proposition

Range

Depth

Competition

Go to market

www.utilitywise.com14

Summary

Efficiency through

technology

Sales processes optimised

Order book growth 25%

Headcount growth 7%

www.utilitywise.com

Digital

15

Transparent, friction free switching leveraging supplier relationships

Enormous volume opportunity in an unserved market

Customers shop online. They demand great value & simple (trusted) service

that offers transparency

1.5mSME businesses have

never switched or switch direct

74% Business who don’t switch say they don’t see a financial saving worth their effort

We are positioned well to disrupt that market for customers digitally>50%

of domestic consumers now switch via Price comparison websites

Of SME customers choose Online as preferred source of information

Source: Edelman commissioned research, December 2016

53%

Insights Assessment Execution

www.utilitywise.com16

Summary

10,000 SmartDash

installations

Recurring revenue streams

WiseLifedifferentiated propositions

www.utilitywise.com

Jon CowanDirector of Product Development

www.utilitywise.com18

Strategic Initiatives

Digital International Expansion

Optimise The Core

Multi Utility

Service Proposition

Utilitywise

Winning in the market • Customers for life • Revolutionise markets • Colleagues • One Utilitywise

New CustomersOrder BookConversion

WiseLife CustomersWater Contracts

Cross-sell

Customer BaseSmartDash Customers

Net Promoter Score

Measures of Success

Flawless Execution • Do the right thing • Innovation Make a difference • Collaboration

Strategic Priorities

People • Organisation • Technology • Culture • Brand Enablers

Energy Services

Values

Strategy to deliver continued growth

www.utilitywise.com

Multi Utility

19

Insight Our Mission Water

1.2mBusinesses can switch supplier

Of SMEs are interested in combined utility arrangements

Our mission starts in a market that is being disrupted: 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

Source: Edelman commissioned research, November 2016

www.utilitywise.com20

Summary

70%Customers

want simpler utilities

arrangements

1.2mWater market

Expanded portfolio

www.utilitywise.com

Service Proposition

21

Enabling SME’s put their business on autopilot

True service differentiation

To take care of our customers utilities, so they can take care

of their businesses.

Source: Edelman commissioned research December 2016

£2bnpotential savings

Customers for LifeDifferentiated Propositions Recurring Revenue Subscriptions

Winning Service Experience

Managed Service Plans

Customers want the ‘hassle factor’ taken away by someone

they can trust

Insight Our Mission WiseLife

Source: Utilitywise field experience

www.utilitywise.com22

Summary

Great Service Today:

10k SmartDash installations

Unique service subscriptions:

Recurring revenue

Differentiationvia

WiseLife

www.utilitywise.com

Brin SheridanChief Operating Officer

www.utilitywise.com24

Strategic Initiatives

Digital International Expansion

Optimise The Core

Multi Utility

Service Proposition

Utilitywise

Winning in the market • Customers for life • Revolutionise markets • Colleagues • One Utilitywise

New CustomersOrder BookConversion

WiseLife CustomersWater Contracts

Cross-sell

Customer BaseSmartDash Customers

Net Promoter Score

Measures of Success

Flawless Execution • Do the right thing • Innovation Make a difference • Collaboration

Strategic Priorities

People • Organisation • Technology • Culture • Brand Enablers

Energy Services

Values

Strategy to deliver continued growth

www.utilitywise.com

Energy Services

25

Rising Utility Costs

20bn

Devices

£1.5bn

UK&I market value

i

• Old building technologies

• Vendor Locked Protocols

Intelligent Building Operating Platform

Source: Bisria, Gartner

Insights Assessment Execution

www.utilitywise.com26

Summary

Today’s technology

does not deliver

Disrupt

£1.5bn market

Intelligent buildings

= Smarter

businesses

Source: Bisria, Gartner

www.utilitywise.com

Nigel HudsonMarketing Director

www.utilitywise.com28

Strategic Initiatives

Digital International Expansion

Optimise The Core

Multi Utility

Service Proposition

Utilitywise

Winning in the market • Customers for life • Revolutionise markets • Colleagues • One Utilitywise

New CustomersOrder BookConversion

WiseLife CustomersWater Contracts

Cross-sell

Customer BaseSmartDash Customers

Net Promoter Score

Measures of Success

Flawless Execution • Do the right thing • Innovation Make a difference • Collaboration

Strategic Priorities

People • Organisation • Technology • Culture • Brand Enablers

Energy Services

Values

Strategy to deliver continued growth

www.utilitywise.com29

Brand equity

+59 Net Promoter

Score

44%Brand

Awareness

Strong platform for sales growth

Source: Edelman commissioned research December 2016

www.utilitywise.com30

Building the brand

330k Social mediaPer month

45kWebsite visits

Per month

www.utilitywise.com31

37% 47% 16%

Never switched Switched direct Use TPI

12% share

Ene

rgy Switch

ing

c.£300m Estimated

Savings

Opportunity

• Engage

• Disrupt

• Re-define

• Transform

Opportunity landscape

Source: Utilitywise. circa 700,000 businesses saving an estimated £500 each

Source: Ofgem survey 2015

www.utilitywise.com32

The challenge with utilities

Big 6Net Promoter Score

-39 20%Trust TPIs

• Opaque

• Complex

• Poor service

• Negative media

Trust Vacuum

Source: Ofgem survey 2015

www.utilitywise.com33

Brand equity – the magnetic brand

• Clarity

• Value

• Advocacy

• Communication

• Communities

• ColleaguesTrusted AdvisorImpartial independent transparent

Take control

£2bn Savings

CO2

Source: Utilitywise field experience

New jobs

New plant

www.utilitywise.com34

Brand equity – the magnetic brand

Champion Business Interests

58% of businesses don’t

understand their bills!

Disjointed energy policies

confusing businesses.

Businesses paying for

unnecessary power stations.

Utilitywise calls for government to incentivise

businesses to reduce consumption.UK retailers are

wasting £300m worth

of energy!

Utilitywise:

More energy policy red tape is

unwelcome.

www.utilitywise.com35

Brand strategy

Strong Platform

Differentiated Position

Strategic Alignment

www.utilitywise.com

Adrienne McFarlandHR Director

www.utilitywise.com37

Strategic Initiatives

Digital International Expansion

Optimise The Core

Multi Utility

Service Proposition

Utilitywise

Winning in the market • Customers for life • Revolutionise markets • Colleagues • One Utilitywise

New CustomersOrder BookConversion

WiseLife CustomersWater Contracts

Cross-sell

Customer BaseSmartDash Customers

Net Promoter Score

Measures of Success

Flawless Execution • Do the right thing • Innovation Make a difference • Collaboration

Strategic Priorities

People • Organisation • Technology • Culture • Brand Enablers

Energy Services

Values

Strategy to deliver continued growth

www.utilitywise.com

Areas of focus

38

Management Capabilities/

Behaviour

Knowing the Competition

EngagementAtmosphere/Environment

Reward

Performance Management

Market Proposition

Data RecruitmentCareer

Development

www.utilitywise.com

Richard LakerChief Financial Officer

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

40

Growth delivery period

FY18 to FY21

Not a profit forecast

Investment to pay back in

growth period

Timing and potential impact

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

41

Growth delivery period

FY18 to FY21

Not a profit forecast

Investment to pay back in

growth period

Timing and potential impact

www.utilitywise.com

0

2

4

6

8

10

12

14

16

18

20

0

10

20

30

40

50

60

70

80

90

FY13 FY14 FY15 FY16

Adjusted PBT Revenue

Sustained Growth Record

• Committed & Skilled Colleagues

42

Rev

enu

e (£

m)

Ad

justed

PB

T (£m

)

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

Growth to date

Adjusted PBT Revenue

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

43

SME(10 – 249 empl)

Micro(1 – 9 empl)

UK&I customer numbers (July 2016)1,000Large

(250 + empl)

15,00016,000

Customer volumes rounded to nearest 1,000

www.utilitywise.com

Sustained Growth Record

44Micro means SMEs with fewer than 10 employees

Market share 1%

Market share 6%

UK&I customer numbers (July 2016)

SME(10 – 249 empl)

Micro(1 – 9 empl)

Large(250 + empl)

www.utilitywise.com

45

Sustained Growth Record

Good Customer Experience

45

Optimise the Core / Digital (SME 10 – 249 employees)

Good Customer Experience

• Committed & Skilled Colleagues

6% (16,000)

12% (32,000)

Market Size*0.25 million

(*) Office of National Statistics UK business universe, as adjusted for domestic usage per Cornwall Insight research

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

46

1% (15,000)

7% (100,000)

Market Size*1.5 million

(*) Office of National Statistics UK business universe, as adjusted for domestic usage per Cornwall Insight research

Optimise the Core / Digital (Micro 1-9 employees)

www.utilitywise.com

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

FY16 FY21

47

Cu

sto

mer

nu

mb

ers

Multi-utility and services

Micro

Micro

SME

SME

www.utilitywise.com

Sustained Growth Record

48

Multi-utility

Electricity

Gas

Water

Water

www.utilitywise.com

Sustained Growth Record

49

Multi-utility

Electricity

Gas

Water

InsuranceTelco/

Broadband

Water

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

50

Market Size(*)

£1.5bnFY21

target5%

Source: Bisria

Energy Services

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

51

Cross-sell & Up-sell

Increase Recurring

Revenue as % of Group Revenue

Maintain EBIT Margin %

Grow Customer Numbers

Opportunity FY18-FY21

www.utilitywise.com

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

52

SME Market Share

2% to 7%

SME Customer Numbers

31.5k to 130k

UK&I corporate controls market

share

5%

Opportunity 2021

www.utilitywise.com

Brendan FlatteryChief Executive Officer

www.utilitywise.com

54

Sustained Growth Record

Good Customer Experience

• Committed & Skilled Colleagues

54

Maintain focus

Clarity of strategy

Winning in the market

Summary

www.utilitywise.com

Q&A

www.utilitywise.com

Wiselife presentation (1.15pm & 1.45pm)

Paul Smith, Jonathan Wilkinson

Intelligent Buildings & Bureau presentation (1.15pm & 1.45pm)

Neil O’Sullivan, Mark Glynn, Jon Ferris, Lisa Gingell

Strategic Utility Management Plan in ActionTim Hipperson, Chris Taylor, Chris Blench

56

Lunch & product presentations, Frobisher Rooms