PensionBee Group plc

Good afternoon and welcome to the PensionBee Group PLC Q2 Results Investor presentation. Throughout this recorded meeting, attendees will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated on the right-hand corner of your screen. Simply type in your question and press send. If you'd like to answer a question verbally, please just type a question mark and we'll call and open your mic. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, we'd like to submit the following poll. Thank you. I would now like to hand you over to Romy Savova, CEO. Good afternoon.

Good afternoon. I'm Romy Savova, the CEO of PensionBee. Welcome to our Q2 2025 results presentation. Today, we are pleased to share our progress over the quarter as we continue executing on our vision to build a global leader in the consumer retirement market. For those of you who are new to the PensionBee story, we exist to help our customers prepare for and enjoy a happy retirement. We operate in the enormous defined contribution pension market, representing over $30 trillion in assets and close to 100 million consumers in the UK and US alone. Our customer-focused offering helps consumers to feel retirement confident. We enable our customers to combine their old retirement accounts into a new online account. We enable them to make contributions, to invest in line with their objectives, with money managed by the world's largest asset managers, and ultimately to withdraw and spend their retirement savings. Our long-term ambition is to build lifelong relationships with our customers. This approach not only delivers value to them throughout their retirement journey, but also drives predictable, scalable revenue for our business and strong returns for our investors. In Q2 2025, we sustained strong momentum by continuing to grow our customer base in the UK and laying robust foundations for long-term growth in the US. We acquired 11,000 new invested customers and assets under administration reached 6.3 billion pounds or close to $9 billion. Group revenue for the quarter increased by 22% to £10 million. In the UK, we increased our marketing expenditure, hitting record brand awareness levels and materially expanding our new customer pipeline for ongoing growth in invested customers in H2 2025. We are successfully attracting a younger demographic, mirroring our strategy during similarly volatile macroeconomic conditions in 2022. In the US, we have established and continue to grow our brand awareness through national channels and enhance our product offering through transfer automations and retirement planning tools. Our Safe Harbor IRA is being well received as multiple employers are nearing the final discussion stage to adopt our consumer-centric offering And longer term, consultant-led prospects representing circa 20,000 potential new customer accounts. Group-adjusted EBITDA was marginally negative this quarter, while PensionBee UK achieved profitability of £0.3 million for the quarter and £3.2 million on an LTM basis. These successful results were driven by strong revenue and improved operating leverage. We remain confident in our US expansion and are on track for full-year UK-adjusted EBITDA profitability. In the UK, we continue to invest in marketing over the first six months of 2025, increasing spend by 30% year on year to 7.6 million pounds in order to capitalize on our UK growth opportunity. This investment drove record levels of both prompted and unprompted brand awareness, which were 59% and 25% respectively, making PensionBee one of the most recognized pension providers in the country. Brand investment is a long-term endeavor, yet we were pleased to see it contributing to the successful onboarding of approximately 11,000 new invested customers over the quarter. Brand investment has also resulted in an increased pipeline of customer registrations and transfer requests, which will translate into further growth in invested customers in the second half of this year, distinguishing the second half of 2025 compared to 2024. Our industry-leading technology platform continues to scale effectively, driving operational efficiency and the consistent delivery of excellent customer service. We delivered an 18% productivity improvement over the second quarter, with approximately 1,500 invested customers per staff member in the UK while maintaining our industry-leading customer satisfaction rates, as reflected in our excellent Trustpilot rating and customer and AUA retention rates of over 95%. Looking forward to the second half of the year, we expect to deliver substantial innovations to support long-term growth and productivity. The incremental introduction of a new customer interface will modernize and enhance customers' product experience, while simultaneously supporting long-term efficiency in future product development. Beatrix, the company's AI internal co-pilot continues to drive significant efficiencies across customer service and other operational teams. The focus remains on completing the technical underpinning for customer deployment in the near term. Turning now to the US, our focus on building brand awareness and trust is a top priority, and we are growing national brand channels that scale with the focus on social media, customer advocacy through the press, and search. Our multi-channel campaigns are generating strong traction across platforms such as YouTube, Meta, TikTok, and LinkedIn, where we see exponential growth in our follower base. we're pleased to see prompted brand awareness in the US already registering at 5%. As our US product news product parity with our UK product and we complete our transfer automations, we will soon be ready to supercharge our brand while investing in customer growth. From a brand perspective, in the second half of the year, we will launch advertising campaigns in 12 metro areas with connected TV through ESPN, Hulu, Warner Brothers and Peacock. We will support this campaign on YouTube. In three of the 12 metros, New York, Chicago and Seattle, we will deploy out-of-home advertising, billboards and radio advertising on commuter corridors. Simultaneously, we are in the process of developing a range of distribution partnerships focused on our core consolidator target audience and also our self-employed audience. These partnerships are structured on an invested customer completion basis, thereby representing the most attractive economics for PensionBee. To meet our long-term goals, the overall objective is to continue maintaining the growth of our US trajectory above the trajectory we followed in the UK from a customer and AUA perspective. Our US product continues to be developed and over the course of the last quarter, we advanced our transfer automations and core functionality in line with our objectives. We expect to achieve predominant parity with our UK product by the end of the year. As of Q2 2025, we have released transfer automations in a live testing environment that will be capable of handling over 50% of our requested transfers. Finally, over Q2, we have continued to develop our Safe Harbor IRA for employers, offering a consumer-oriented solution in a market that is desperate for innovation. Our research uncovered exorbitant fees that erode customer accounts to zero, including by sweeping up to 4% of interest out of these customer accounts. We successfully deepened engagement with consultants and employers around our Safe Harbor IRA offering, which offers a more consumer-friendly proposition for employers and employees. With a number of employers now nearing the final discussion stage and PensionBee participating in consultant-led processes representing circa 20,000 new customer accounts, this business line is demonstrating growing traction. I would now like to hand over to Christoph Martin, our CFO, who will cover the financial update for the quarter.

Thank you very much, Romain. Hello and welcome to everyone to the finance section of our Q2 2025 results. Turning focus to our UK performance. Scalable cost base drives operating leverage and profitability. We delivered a two year revenue CAGR of 37% on an LTM to June 2025 basis while maintaining strict cost discipline. This resulted in achieving UK adjusted EBITDA profitability of circa 3 million pounds on an LTM basis, giving us confidence in continued profitable growth of the UK business in line with our public commentary for the UK. Over the Q2 2025, we continue to deliver predictable and recurring revenue growth. The underlying reason for our predictable and recurring revenue is fundamentally a high retention rate of greater than 95% of customers. Our average customer is around 40 years of age and therefore still building up their retirement savings with us for decades to come. As a result, existing cohorts are growing over time on an underlying basis, excluding markets. Growth of existing cohorts combined with efficient new customer acquisition generates consistent EOE growth over time on an underlying basis. We have seen a resilient revenue margin of mid-60s basis points consistently at those levels over the last six years, which translates strong EOE growth into consistent, predictable and recurring revenue growth. From a long-term perspective, the scalability of the technology platform becomes even more apparent as evidenced in the decline of our cost base as a proportion of revenue. As we scale the business, which can be seen on the long-term trend on the left-hand side of this page, we drive adjusted EBITDA margin in the long term. which can be seen on the right hand side. In conclusion, the scalability of our business and our efficient cost control allows us to bring costs down consistently as a proportion of revenue as shown historically, thereby positively improving adjusted EBITDA margin. With regards to our guidance, in the short to medium term, spanning around three to five years, we target the group to generate revenue of above £100 million and the group adjust the EBITDA margin of circa 20% by year five. In other words, over that time horizon, we see the UK to contribute the vast majority of revenue and profits to the group. In the long term, spanning 5 to 10 years, we expect the group to generate above a quarter of a billion pounds in revenue and target a group adjusted with a margin of circa 50%. Over the time horizon, we see the two segments to contribute equally to the group guidance. For 2025, while the UK business will be running on a profitable growth basis, the US business receives a state suite reimbursement for the marketing expenditures and will be run on a strict cost discipline basis during the building phase. I will now head back to Romy for conclusions and closing remarks.