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Previous Page View Contents Next Page Moneysupermarket.com Group PLC Annual Report 2011 Moneysupermarket.com Group PLC Group Moneysupermarket.com Annual Report 2011 We’re So Previous Page View Contents Next Page We are delivering on our growth strategy and helping everyone in the UK feel epic Our Financial Highlights > Revenue increased by 22% from £148.9m to £181.0m > Adjusted EBITDA1 increased by 21% from £41.0m to £49.5m > Gross margin increased from 71.3% to 72.3% > Final dividend increased by 20% to 3.03p per share > Total dividend for the year of 8.46p per share (including special dividend of 3.93p per share) > Cash balance of £35.0m at 31 December 2011 > Profit after tax of £16.8m 1. Certain share option charges relating to Directors, senior management and other employees of the Group arising from when the Group listed or when it was privately owned, costs relating to the acquisitions of Financial Services Net Limited and Local Daily Deals Limited, and amounts relating to the recovery of VAT have been added back to calculate adjusted EBITDA. A charge for awards made under the Group’s Long Term Incentive Plan is included within the adjusted results. Previous Page View Contents Next Page Moneysupermarket.com Group PLC 1 Annual Report 2011 Geoff felt so epic with his £200 saving on his car insurance that he surfed a blow up crocodile in our new ‘You’re So MoneySupermarket’ TV advertising campaign Our Operational Highlights Business Overview 1 Highlights 2 Our Business Model > Market leader in a Business Review growing market 10 Chairman’s Statement 12 Chief Executive’s Report 15 Financial and Business Review > Continued investment in 20 Principal Risks and Uncertainties technology Management 22 Board of Directors and Company Secretary Corporate Responsibility > Marketing investment 24 Corporate Responsibility Report increased to £77.5m Corporate Governance 25 Directors’ Report 29 Corporate Governance Report > Acquisition of Local 33 Audit Committee Report 34 Nomination Committee Report Daily Deals and 35 Directors’ Remuneration Report investment in HD 43 Independent Auditor’s Report Decisions Financial Statements 44 Consolidated Statement of Comprehensive Income 45 Consolidated Statement of Financial Position 46 Consolidated Statement of Changes in Equity 47 Consolidated Statement of Cash Flows 48 Notes to the Consolidated Financial Statements Use the 69 Company Balance Sheet contents to 70 Notes to the Company Financial Statements jump straight to the section General you require. 73 Shareholder Information 74 Financial Calendar View Page Previous Page View Contents Next Page 2 Moneysupermarket.com Group PLC Annual Report 2011 Our business model is simple - help people to feel epic by saving money! Our values drive the way we work. They enable us to embrace our goals and work to achieve them with energy and enthusiasm, having as much fun as we can along the way. MoneySupermarket.com - Company Values Customers We win Providers together We find We wow a way them Our customers Our providers We help our customers to save money on all of their By having considerable volumes of informed customers household bills by providing a free, easy to use online actively looking for products and ready to purchase, we service so they can compare a wide range of products in offer our providers an efficient and cost effective customer one place and find the product most suited to their needs. acquisition solution across all of our channels. This enables Our size means we are able to offer our customers our providers to target their marketing spend in an effective exclusive, market-leading deals, including some they can’t and completely measurable way. even get direct from providers. Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee. Previous Page View Contents Next Page Moneysupermarket.com Group PLC 3 Annual Report 2011 Previous Page View Contents Next Page 4 Moneysupermarket.com Group PLC Annual Report 2011 We find a way - by being innovative and pioneering, we always deliver a great solution It’s all about helping our customers find even more ways to make the most of their money so they can feel epic! We added new features and services throughout 2011, aimed at making MoneySupermarket.com even easier for our customers to use and encouraging them to keep coming back to us day after day. The following examples are just a few of the many innovative features delivered in 2011. We launched our ‘Smart Search’ tool within our credit cards channel which enables customers to be more readily matched with products that are tailored to their particular circumstances. This enables customers to narrow down their relevant options and for providers to see only those customers who are relevant for their product. We launched MoneySupermarket Deals which provides customers with significant discounts on products and services – whether that is enjoying a meal at a local restaurant, having a pampering spa day, going to the cinema or taking in a West End show! In October, we became the first price comparison website to offer our services on mobile devices through the launch of a fully functional motor insurance iPhone App. We are now able to offer our motor insurance price comparison services to our customers whenever and wherever they want to access them. For customers who need extra guidance in finding products to save them money, we are the only major price comparison website which offers customers a phone-based service so they can speak with one of our team to discuss the options available to them. Previous Page View Contents Next Page Moneysupermarket.com Group PLC 5 Annual Report 2011 Previous Page View Contents Next Page 6 Moneysupermarket.com Group PLC Annual Report 2011 We win together - when our customers and providers are happy, so are we We spend a lot of time with our providers to understand how we can help them succeed in their chosen markets. Strong relationships with our providers are crucial to the success of our business. By working closely with our providers, and continuing to offer them an efficient, measurable and cost effective marketing tool, we are able to secure market-leading, exclusive products for our website. We also spend a lot of time talking to our customers to understand what we can do to help them make the most of their money. This helps us to focus our innovation on things that will make a real difference to our customers. And of course, by giving customers access to products and deals through MoneySupermarket.com which are not available anywhere else, we really do help our customers to save money on their household bills. Previous Page View Contents Next Page Moneysupermarket.com Group PLC 7 Annual Report 2011 Previous Page View Contents Next Page 8 Moneysupermarket.com Group PLC Annual Report 2011 We wow them - marketing and PR are critical to building a household brand In 2011, we took a fresh approach to our TV advertising to drive the category forward and build on our position as the leading price comparison website. The ‘You’re So MoneySupermarket’ campaign focused on the emotional benefit of using our website and the fact that saving money makes you feel epic – it proved very popular with TV audiences. In January 2012 we launched a new ‘You’re So MoneySupermarket’ campaign showcasing the breadth of our service and how we can help our customers save money on their household bills. We supported our TV advertising with our PR campaigns which were aimed at engaging with and educating consumers on how they can save money with MoneySupermarket.com. We achieved widespread media coverage in all major national broadsheets and tabloid newspapers, a large cross-section of national and regional broadcast media and major online news sites. We also communicated directly with our customers through our weekly More Money email newsletter. Our newsletters provide valuable information on products and services available through our website including market-leading exclusive products not available anywhere else. Previous Page View Contents Next Page Moneysupermarket.com Group PLC 9 Annual Report 2011 Previous Page View Contents Next Page 10 Moneysupermarket.com Group PLC Annual Report 2011 Chairman’s Statement Gerald Corbett Chairman Results and strategic progress Dividend The solid progress we have made since the credit crunch has Having reviewed the cash required by the business and the continued. 2011 was a good year for the Group as adjusted performance of the Group, the Company paid an interim revenue increased by 20% from £148.9m to £178.5m and dividend of 1.5p per ordinary share on 16 September 2011. This adjusted EBITDA increased by 21% from £41.0m to £49.5m. represented an increase of 15% on the interim dividend paid in 2010 and is consistent with the Company’s progressive dividend Our largest verticals, Money and Insurance, delivered significant policy. In addition, the Company paid a special dividend on the growth during the year with revenue in the Money vertical same date of 3.93p per ordinary share reflecting the Board’s increasing by 19% from £44.0m to £52.6m and revenue in the confidence in the ability of the business to generate cash on an Insurance vertical increasing by 21% from £84.5m to £102.7m. ongoing basis. Together with the significant growth achieved in our Home During the year, the business continued to generate cash, and we Services vertical, these results demonstrate the continuing ended the year with cash balances of £35.0m. With the business strength and diversity of our business model and helped to offset growing, the Board is recommending a final dividend of 3.03p the decline experienced in our Travel vertical, which continued to per ordinary share, representing an increase of 20% on the final suffer in line with the rest of the travel market.