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