1H26 Results: You‘ve got a friend in MSM

Research evidence excerpt

1H26 Results: You‘ve got a friend in MSM

(18.3%)33.2%

Adj EBITDA Margin progresion

Insurance 2.4pp (4.7pp) (3.2pp) (2.7pp) (9.1pp)management was comfortable with the current product development spending run rate and Money 1.5pp 0.2pp (4.2pp) (3.3pp) (3.0pp)

(4.2pp) 5.7pp 2.4pp (0.4pp) 2.6ppdoes not expect a major investment program (as feared by some in the market). HomeCashbackSharedServicesCosts (2.2pp) 4.2pp 2.5pp (4.0pp) 1.7pp 0.5pp 3.1pp 1.9pp 1.5pp 3.3pp

. Group Adj EBITDA 2.0pp 1.8pp 0.4pp 0.6pp (0.9pp)

Source: Company data

Becoming a Financial Companion. Management provided greater insight into the Financial

Companion strategy. Namely, they aspire to build an all-in-one app that helps people save in

a seamless process. They also highlighted their competitiveness for Savings and Investment

products. However, management stated that there were no other major verticals to launch, but

it will continue innovating around these propositions. We had believed that SSC's utility would

evolve, and we think this is only the start.

MONY does not need to beat established investments platforms. For the newly launched

Investments by MSM, management stated that they did not aspire to compete aggressively

with established platforms. Their aim was to help households that have not begun their

savings/investment journeys, highlighting that UK households mostly hold cash savings that

earn below-inflation interest rates. Indeed, we highlighted yesterday that the launch was

intended for unsophisticated retail investors, with the traditional PCW serving as a gateway to

cross-sell Savings and Investments.

A new way to buy insurance on SSC. Today's launch of the SSC Insurance is a major move

to distance itself from competitors. The ability to offer monthly insurance quotes (rather than