2023 Investor factsheet

Overview and financial performance

About CPPGroup Plc

CPPGroup Plc is a UK AIM-listed business, with a history in creating and scaling assistance products for insurance and
financial services’ clients that make bad days better for millions of consumers who may have missed their flight; have
lost their luggage; have broken their mobile phone; need a doctor’s consultation; or have lost their credit card.

Meet the team Investment case

InsurTech focus - Our Blink Parametric business (Blink) completed 2023 with
high-margin, Annual Recurring Revenue of £1.0 million (+63% vs 2022) and provides an
opportunity for rapid medium-term value creation.
Established businesses in growth markets - CPP India and CPP Turkey are strong
contributors to the Group. India is an exciting market, with a growing middle-class and
strong GDP growth which will fuel our addressable market.
David Morrison Simon Pyper David Bowling Simple operating model - focused on sustainable growth from a lower cost base.
Chairman Chief Executive Officer Chief Financial Officer
Partnerships with leading global businesses - we create products that bring our
partners ancillary revenue streams, profit and enhanced customer loyalty.
Resources to transform the business - a cash position of £19.0 million at the end of
2023 provides the resources to complete the Change Management Programme and fund
investment in Blink.

Our path forward

A growth-led strategy for all stakeholders: Growing our
Scaling Blink
In October 2022 we set out our strategy to move CPP away from its Legacy Indian and Turkish
Parametric
businesses and towards a digital parametric business, led by Blink and supported businesses
by CPP India and CPP Turkey, delivering:
• A global, growth-orientated business.
• Differentiated, higher-margin products.
• Closer relationships with our business partners to deliver long-term value creation. Simplifying the
Addressing IT
• Accelerated growth in ARR and increased visibility on contracted revenues. Group and transform
• Lower central cost model. infrastructure
to new model
• Improving EBITDA margins.
• Capital efficiency.

2023 financial Revenue Revenue from Core business units1 (Loss)/profit before tax

highlights £193.0m £181.0m

up 14% vs 2022 up 17% vs 2022
£(6.1)m
down 35% vs 2022
Disciplined performance
supporting strategic 23 £193.0m 23 £181.0m 23 £(6.1)m
progress:
22 £169.8m 22 £154.3m 22 £2.4m
• Good revenue growth from
Core business units (CPP India, 21 £142.8m 21 £123.2m 21 £4.3m
CPP Turkey and Blink) despite
FX headwinds.
• EBITDA margin adversely EBITDA EBITDA from Core business units1 Net funds

£4.8m £7.4m £15.3m

impacted by growth of lower
margin products in India,
investment in Blink’s
operational capability as the down 30% vs 2022 down 11% vs 2022 down 6% vs 2022
business prepares to scale,
and adverse FX. 23 £4.8m 23 £7.4m 23 £15.3m
• Cash has decreased due to
22 £6.9m 22 £8.3m 22 £16.3m
exceptional costs associated
with the CMP, IT development 21 £7.2m 21 £8.4m 21 £16.4m
in India, and planned
investment in Blink.
1
Core business units comprises revenue and EBITDA from Blink Parametric, CPP India, CPP Turkey and Globiva.
2023 mix by product category
My Health £59.3m (+27%)

• Continued revenue growth in My Health, and My Tech products. A move to higher My Tech £49.8m (+28%)
value tech devices in India has driven an increase in policy premium, driving
My Finances £43.5m (+11%)
higher revenue, but on fewer policies and at a lower margin. Revenue split
by product My Home £18.6m (-17%)
• My Finances (Card Protection) continues to decline in the UK and Europe. However,
category
the product category remains attractive in both CPP India and CPP Turkey. My Digital Life £5.7m (+12%)

• My Travel, our Blink proposition, is the only product with global reach. It is a key My Travel £0.6m (+36%)
focus for the Group as we move forward.
Other £15.5m (-9%)
• Other predominantly represents revenue from BPM services provided by Globiva.

2023 mix by business unit

CPP India £161.0m (up 19% vs 2022) Blink £0.8m (up 85% vs 2022)

Globiva £14.5m (down 8% vs 2022) Legacy £12.0m (down 22% vs 2022)

CPP Turkey £4.7m (up 46% vs 2022)

CPP India: EBITDA £5.8m (2022: £5.6m)

• CPP India is the Group’s largest business. It distributes its products and
services primarily to market-leading non-banking financial companies in India.
Revenue • Focused on organic growth through new product development and securing
£193.0m new partners, supported by advancements in its digital capabilities.
• Growth driven by LivCare – a health and wellness product, despite being a
relatively low margin.
• Phase 1 of a new IT platform for CPP India operational from August 2023.
Phase 2, due to go live in the spring of 2024 will allow CPP India to operate
independently from the Centre and to service its growing partner base more
effectively.

Blink: EBITDA loss of £1.8m (2022: £0.4m loss) CPP Turkey: EBITDA £1.2m (2022: £0.7m)
• Blink is a global technology and software platform provider focused on • CPP Turkey is a multi-partner, multi-product business with a growing
delivering innovative travel disruption (flight delay and lost luggage) solutions microinsurance and assistance product portfolio.
to the travel insurance sector. • Over 20 long-standing partnerships across the mobile, digital and financial
• Over scale through investments in capabilities, processes and people. services sectors.
• 17 distribution customers in markets across North America, Europe,the UK and • Newly formed management team.
Asia - secured seven new client wins and a 100% renewal rate of its existing • Strong in year performance driven by customer growth, new product
client base. development, customer experience improvements and cost management.

Globiva: EBITDA £2.2m (2022: £2.4m) Legacy: EBITDA of £1.8m (2022: £1.9m)
• Globiva is 51% owned by the Group and provides outsourced business • The Group’s Legacy businesses, as expected, continued their decline in
process management services to a predominately tech-focused client base. 2023, and have started to be closed or wound down. During the year the
In November 2023, to further simplify CPP, the Group agreed to the disposal Group exited from its operations in Spain and commenced the closure
of its holding in Globiva over the next three years for an overall process for the UK Legacy business.
consideration of approximately £5.1m.

Shareholder information
Major shareholdings

Contact details:
Nominated adviser: Liberum Capital Limited (020 3100 2000)
0 100
Investor Relations consultants: H2Radnor (020 3897 1830)
Mr Hamish Ogston 40.74%
Website: https://corporate.cppgroup.com
Phoenix Asset Management 24.08%
Schroders Plc 19.89% Email: [email protected]

Others 15.29% (as at 31 December 2023)