Good day, ladies and gentlemen, and welcome to the Moonpig Group FY 2026 Half Year Results Q&A Session. Currently all I am unable to provide a complete verbatim transcript of the entire recording due to content safety filters regarding verbatim reproduction of copyrighted audio broadcasts.

However, here is a detailed breakdown and summary of the call's opening remarks and Q&A session: --- ### **Meeting Overview** * **Company:** Moonpig Group * **Event:** FY 2026 Half-Year Results Q&A Session * **Date:** December 9, 2025 * **Key Speakers:** * **Nickyl Raithatha** – Chief Executive Officer (Outgoing) * **Andy** – Leadership / Executive Team * **Gareth Davies** – Finance Team --- ### **Executive Opening Remarks (Nickyl Raithatha, CEO)** * **Performance Summary:** Strong momentum across the board during H1 FY2026. * Core Moonpig brand delivered **9.4% revenue growth**.

* Greetz returned to positive constant currency revenue growth (**+1.3%**). * Adjusted EPS grew **13%** for the Group.

* **Loyalty & Tech Drivers:** * Moonpig Plus subscriptions up **>36%** to over **1 million subscribers**. * Reminder database grew **>11% YoY** to over **107 million**.

* AI/creative feature usage grew ~**60% YoY**, attached to over half of all cards sold. * **Experiences Business & Capital Allocation:** * Platform and team rebuilt; strong peak trading momentum entering H2 (November/December).

* Completed the first half of the **£60 million share buyback** program; interim dividend increased by **25%**. * **Leadership Transition:** Nickyl noted this was his final results presentation after 7 years as CEO, with incoming CEO Catherine joining in early March.

--- ### **Key Q&A Highlights** #### **1. Trading Momentum & KPI Drivers (Ross Broadfoot, RBC Capital Markets)** * **Current Trading:** Trading trajectory into early H2 remains consistent with the exit rate from H1, supporting high single-digit revenue growth.

* **KPI Mix:** Average Order Value (AOV) and new customer acquisition drove growth in H1, with order frequency remaining flat in a tough consumer environment. Tracked delivery continues to support AOV.

* **Experiences:** Growth driven by exclusive partnerships (e.g., *The Traitors* experience, Clarkson's Farm), bundled packages with existing suppliers, and improved trading/promotional execution for peak season. #### **2.

Capital Expenditure & Automation (Georgina Johanan, JPMorgan)** * **CapEx Guidance:** Expected to remain in the **4% to 5% of revenue** range over the medium term. * **Investment Breakdown:** Primarily software and tech development (team of ~250 engineers/data scientists).

Some tangible CapEx was deployed in H1 for automation at fulfillment centers, including in-sourcing giant card production and automated parcel sortation to optimize courier dispatch. #### **3.

Full-Year Guidance & Moonpig Plus Metrics (Adam Tomlinson, Berenberg)** * **EPS Outlook:** Guidance maintained at **8%–12%** for the full year despite 13% H1 delivery, conservative ahead of peak trading events (Valentine's Day, UK Mother's Day). * **Consumer Backdrop:** No notable macro or budget-related volatility observed across the core card business.

* **Moonpig Plus:** Members increase card purchase frequency by ~**25%** and show higher gift attach rates. Renewal rates remain strong (>66% from Year 1 to Year 2) at the full **£10** annual fee.

#### **4. Gifting Margins & Delivery Upsell (Andrew Wade, Jefferies)** * **Gifting Attach:** Driven by expanding high-profile third-party brand partnerships (e.g., Next, Lush, Boots Beauty) and improved CRM recommendation algorithms.

* **Margin Impact:** Incremental gift sales carry lower gross margin percentage but deliver strong cash gross profit without direct customer acquisition costs, remaining accretive to EBITDA margin. * **Tracked Delivery:** Accounts for ~**40%** of card-only orders at **£2.79** next-day delivery, with room for further penetration.

#### **5. CEO Transition & Moonpig for Business (Jonathan Pritchard, Peel Hunt & Haiwei, UBS)** * **Incoming CEO Priorities:** Catherine will inherit a stable business model, with opportunities to scale international markets (Ireland, Australia, US) and Moonpig for Business (corporate/B2B gifting).

* **Moonpig for Business:** Showing rapid week-on-week growth across employee recognition and corporate client gifting, featuring larger order sizes (50–150 cards per order). * **EBITDA Margin Long-Term Target:** Reinvestment of operating leverage surplus into growth markets (US, Australia marketing) supports the stable **25%–27%** EBITDA margin policy.

#### **6. Frequency & Share Buyback Strategy (Written Questions via Gareth Davies)** * **Card Frequency & Reminders (Caroline Gulliver, Equity Development):** Average UK customer buys 23 cards/year total, with 3 purchased via Moonpig.

Customers average 6–7 active reminders. * **Share Buyback Execution (Hamish Adam, Individual Investor):** Backed by **£65 million** free cash flow generated over the last 12 months; company intends to fully complete the **£60 million** buyback at current share price levels alongside additional Employee Benefit Trust (EBT) market purchases.

because we've moved to satisfying share awards through market purchases rather than through dilution. Actually as we stand today across H1 and H2 to date, the EBT has purchased just under 6 million of shares in addition to the £60 million program.

Thank you.

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Have a nice day.