Moonpig Group plc Annual Report and Accounts 2023

The technology and

data platform for

cards and gifting

Annual Report and Accounts 2023

Strategic report

01 Financial and operational highlights

02 At a glance

04 Chair’s statement

06 Chief Executive Officer’s review

10 Our journey

12 Business model

16 Market overview

18 Our strategy

22 Key drivers of growth

24 Section 172 statement and

stakeholder engagement

28 Environmental, social and governance

54 Key performance indicators

56 Chief Financial Officer’s review

66 Risk management

72 Viability statement

74 Non-financial information statement

Corporate governance

76 Board of Directors

80 Chair’s corporate governance introduction

81 Governance framework

82 Corporate governance statement

92 Audit Committee report

100 Nomination Committee report

104 Directors’ Remuneration report

125 Directors’ report

128 Statement of Directors’ responsibilities

Financial statements

130 Independent auditors’ report

141 Consolidated Income Statement

141 Consolidated Statement of

Comprehensive Income

142 Consolidated Balance Sheet

143 Consolidated Statement of

Changes in Equity

144 Consolidated Cash Flow Statement

145 Notes to the Consolidated Financial Statements

181 Company Balance Sheet

182 Company Statement of

Changes in Equity

183 Notes to the Company

Financial Statements

188 Alternative performance measures

190 Glossary

192 Shareholder information

Welcome to

Moonpig Group.

We are the online market

leader for cards and gifting.

www.moonpig.group

To find out

more visit

us at:

84m

customer occasion reminders.

At heart we are a technology

platform, but our customers

know us as the leading online

destination for greeting

cards, gifts and flowers.

Financial highlights. Operational highlights.

• Greetz migration onto the Moonpig

technology platform completed in

September 2022.

• Team of 250 technology specialists

now focused on accelerating growth

initiatives.

• Roadmap of innovation, including

Moonpig Plus subscriptions and

group cards.

• Launch of video messages and digital

gifting in greeting cards at Moonpig.

• Launch of new iOS and Android apps

at Greetz.

• Database of customer occasion

reminders has grown to 84m as at

30 April 2023.

• Growth in online cards market share

to 70% in the UK and 67% in the

Netherlands.

• Opening of new in-house operational

facilities in both the UK and the

Netherlands.

• Acquisition of Experiences, welcoming

Red Letter Days and Buyagift to the

Group.

• Investment to modernise the Experiences

technology platform commenced.

1 Adjusted EBITDA, Adjusted EBITDA margin

and Adjusted PBT are Alternative Performance

Measures, definitions of which are set out in the

Chief Financial Officer’s review on pages 56 to 65.

2 Source: OC&C, June 2023.

3 As the Group was incorporated in FY21 there were

no issued shares in FY19 and FY20. For illustrative

purposes Basic EPS has been calculated for these

years using the weighted average basic number

of shares in FY21.

Revenue (£m)

4 year growth: 166%

Adjusted EBITDA margin

(%)

4 year growth: 7.4%pts

Profit after tax (£m)

4 year growth: 95.6%

Adjusted EBITDA

(£m)

4 year growth: 270%

Adjusted PBT

(£m)

4 year growth: 179%

Basic EPS

(p)

4 year growth: 95.0%

FY19

FY20

FY21

FY22

FY23

£320.1m

26.3%

7.8p

£304.3m24.6%

£368.2m25.0%

£173.1m25.6%

4.0p

£120.1m18.9%

FY19 FY20 FY21 FY22 FY23

£26.6m

£31.4m

£20.8m

£30.7m

£13.6m

FY19 FY20 FY21 FY22 FY23

£48.0m

£51.5m

£74.6m

£33.2m

£17.2m

6.1p

9.3p

FY19 FY20 FY21 FY22 FY23

£84.2m

£22.7m

£92.1m

£74.9m

£44.4m9.0p

United Kingdom

81%

Netherlands

17%

At a glance

The leading data and

technology platform for online

greeting cards and gifting in

the UK and the Netherlands.

The UK and the Netherlands are our current core markets.

We operate through four online brands.

Proportion of revenue by country in FY23 % of Group revenue

FY22: 76%

FY21: 75%

FY20: 71%

FY22: 23%

FY21: 23%

FY20: 27%

FY22: 1%

FY21: 2%

FY20: 2%

Rest of

world

Moonpig has been a pioneer

since it was founded as the

UK’s first online greeting

cards business in 2000.

It has since grown to

become a well-loved brand

and the number one online

destination for all our

customers’ gifting needs.

Greetz was founded in

Amsterdam in 2004 as the

Netherlands’ first online

greeting card service.

Greetz aims to make it

easier and more personal

for people to be thoughtful

and is widely recognised

as a leading player in

delivering personalisation

in the gifting market.

Founded in 1999, Buyagift is

a leading UK gift experiences

platform with options in

categories such as dining,

theatre and family outings.

With the broadest and

deepest geographical

footprint in the UK, it gives

customers an unrivalled

choice with something to suit

every taste and occasion.

Launched in 1989, Red Letter

Days pioneered the concept

of giving unforgettable

experiences as a gift.

The idea caught people’s

imaginations and today Red

Letter Days, with its iconic red

gift box, remains the “go-to”

gift experiences company.

Moonpig Group plc | Annual Report and Accounts 2023

We have a broad and balanced customer demographic.

Our strategy is to become the ultimate gifting companion.

% total users split by age group in FY23

FY22: 40%

FY21: 39%

FY20: 35%

FY22: 60%

FY21: 61%

FY20: 65%

% total users split by gender in FY23

FY22:38%

FY21: 42%

FY20: 40%

FY22: 36%

FY21: 35%

FY20: 37%

FY22: 26%

FY21: 23%

FY20: 23%

35 – 55

38%

55+

22%

Under 35

40%

Male

44%

Female

56%

Gifting share of revenue

Gifting SKUs

Cards and gifts sold

51%

FY22: 48%

FY21: 46%

FY20: 42%

8,800

April 2022: 2,400

April 2021: 1,400

April 2020: 1,000

49m

FY22: 57m

FY21: 73m

FY20: 36m

We use data and technology to create loyal customer relationships.

250

April 2022: 195

April 2021: 153

April 2020: 106

Highly skilled data scientists,

analysts and engineers

266m

April 2022: 230m

April 2021: 190m

April 2020: 130m

Lifetime transactions

84m

April 2022: 72m

April 2021: 52m

April 2020: 32m

Moonpig and Greetz

customer reminders set

1 FY23 stated for the Group (including Experiences since acquisition on 13 July 2022 and excluding Experiences for the pre-acquisition period in FY23 and prior years).

2 As at 30 April 2023. Stated for the Group (including Experiences as at 30 April 2023 and excluding Experiences for prior years).

3 As at 30 April 2023. Moonpig and Greetz only.

4 Cumulative transactions as of 30 April 2023. All-time for Moonpig, from 1 September 2018 (post acquisition) for Greetz and from 13 July 2022 (post acquisition) for Experiences.

Strategic report Corporate governance Financial statements

“Moonpig Group has demonstrated resilience,

profitability and strong cash generation whilst

putting in place the foundations for growth.”

Overview

The past year has been testament to Moonpig Group’s

resilience, demonstrating its ability to deliver high profitability

and strong cash generation across the economic cycle. This

reflects a flexible business model that leverages technology and

proprietary data to create enduring customer relationships and is

enabled by the recession-resilience of the greeting card market.

It has been achieved whilst continuing to make significant

investments in marketing, operations and technology.

The year was also notable for the successful delivery of several

strategic projects including the acquisition of Experiences,

the opening of new operational facilities in the UK and the

Netherlands and the migration of Greetz onto the Group’s

unified technology platform. The Group has since refocused

its 250 data scientists, analysts and engineers towards

developing new customer-facing functionality to drive revenue

growth and innovation.

The Board does not expect the wider economic environment to

become more favourable in the year ahead. Nevertheless, the

foundations put in place by management provide the base for

the expected delivery of profitable growth in FY24. In addition,

we expect the Group’s strong operating cash flows to drive

further deleveraging.

FY23 performance

The Group delivered revenue of £320.1m in FY23 (FY22:

£304.3m), which was significantly higher than pre-Covid

comparative figures. Year-on-year growth of 5.2% reflects the

acquisition of Experiences, partially offset by the positive impact

on prior year from lockdown restrictions at Moonpig and Greetz.

The Group delivered Adjusted EBITDA of £84.2m (FY22:

£74.9.m). The acquisition of Experiences contributed £13.0m of

Adjusted EBITDA, which broadly offset the impact of the post-

Covid reversion of trading at Moonpig and Greetz. Adjusted

EBTIDA margin of 26.3% (FY22: 24.6%) was achieved through a

combination of initiatives to improve gross margin rate, targeting

resources towards higher-margin cards sales and indirect cost

control. This was delivered at the same time as maintaining

significant investment in marketing, alongside expansion of the

Group’s operational network and an acceleration in the pace of

technology development.

Chair’s statement

Moonpig Group plc | Annual Report and Accounts 2023

Acquisition of Experiences

As part of our strategic aim to drive our gifting proposition, on

13 July 2022, the Group completed the acquisition of Red Letter

Days and Buyagift, welcoming them to the Group as our new

Experiences segment.

A strategic refocus and significant operational change

have been delivered since then, including appointing a

new Managing Director, starting a project to modernise the

Experiences technology platform, relocating fulfilment to

Moonpig’s operational facility, outsourcing customer services and

co-locating Experiences employees at the Group’s head office.

The acquisition brought a high quality, complementary

business to Moonpig Group, offering strong strategic fit and

opportunities for revenue synergies. The introduction of digital

gifting capabilities to the Moonpig platform has already begun,

with the launch of a feature allowing customers to add a gift to

the inside of a card in the form of a redeemable code.

The acquisition of Experiences was financed through available

cash and additional revolving credit facilities. Strong cash

generation since then has driven deleveraging, with net debt

to pro forma Adjusted EBITDA (stated to include a full year of

Experiences) of 1.97x as at 30 April 2023.

The Board is comfortable with the Group’s net debt position,

taking into account that there is significant liquidity headroom

and covenant headroom, that approximately three quarters

of the Group’s floating rate interest exposure is hedged and

that the Group’s facilities are committed until December 2025.

The Group’s short term capital allocation priority is continued

deleveraging. Net debt to Adjusted EBITDA remains on a

strong downward trajectory.

Employees

The Group’s employees in the Netherlands, Guernsey and

the UK have played a key role in delivering resilient financial

performance in FY23 and in successfully executing the various

strategic projects completed during the year. On behalf of the

Board, I’d like to thank all employees for their dedication and

hard work.

Corporate responsibility

Moonpig Group’s purpose is to help its customers to connect

with those that they care about. The Board is pleased with

the Group’s progress against its environmental, social and

governance goals during FY23.

The Group has made further progress in reducing Scope 1 and

2 greenhouse gas emissions, delivering a 3% year-on-year

reduction and lowering them to 22% below the FY20 baseline

This reduction was driven by moving to two new fulfilment sites

with high environmental standards, adopting renewable energy

tariffs and making continuous operational improvements to

increase energy efficiency.

Moreover, management has completed a significant project to

measure Scope 3 emissions and set ambitious targets to reduce

them by 97% by 2050, with a medium-term target for supplier

engagement. The Group aims to obtain commitments from

suppliers covering 67% of its Scope 3 emissions to set reduction

targets aligned with SBTi criteria by April 2030.

The Group performed well against its diversity goals, meeting

goal 7 with 45% of new hires in technical roles being female

(FY22: 37%) and 52% combined representation of women and

ethnic minorities on the Leadership Team (FY22: 53%).

The Moonpig Group Foundation has continued to support

various organisations with missions that align with the Group’s

aim of creating better and more personal connections between

people who care about each other. Beneficiaries included

End Youth Homelessness, Kinderhulp in the Netherlands and

Les Bourgs Hospice in Guernsey.

Our employee engagement goal has been impacted by the

challenges of operating in an economic downturn characterised

by disciplined control of discretionary costs. Customer net

promoter score was affected by the unfortunate impact of

repeated industrial action at Royal Mail. Management is focused

on delivering improvement in both of these areas.

Board and governance

The Group complied in full with the UK Corporate Governance

Code in FY23, as set out in the Governance Statement from

pages 82 to 91. The Board continues to meet the requirement that

at least half its members (excluding the Chair) are Independent

Non-Executive Directors.

A Relationship Agreement is in place to ensure that the Company

is capable at all times of carrying on its business independently

of Exponent, its former controlling shareholder. Exponent has

a right to nominate one Nominee Director to the Board until

its shareholding falls below 10%. As at the date of this Report,

Exponent held 12.0% of issued share capital.

During the year the Board reviewed the composition of all its

Committees and, given the Board’s evolution since Admission

in 2021, it was determined that I would step down from the

Remuneration Committee with effect from 29 March 2023. Since

that date, the Committee has been composed solely of the four

Independent Non-Executive Directors.

Board diversity is important, and I am confident that the Board

collectively possesses a broad range of experience, skills and

knowledge from different backgrounds. We currently have 38%

female representation, which is close to the new Listing Rule

target of 40%, with the gap reflecting the appointment of a male

Nominee Director under the Relationship Agreement. We meet

the new Listing Rule targets for at least one senior Board position

to be held by a woman (by virtue of my appointment as Chair)

and for at least one Board member to be from a minority ethnic

background (as we have two minority ethnic Directors).

Looking ahead

The Board is pleased with the start to the new financial year and

is confident that the foundations laid by management provide

a platform for delivering profitable growth in FY24. The Group

remains ideally placed to maintain and increase its online market

share whilst leading the shift in its markets from offline to online.

Kate Swann

Non-Executive Chair

28 June 2023

1 For Scope 1 and 2 emissions, the baseline year is FY20 and this has been validated by the Science Based Targets initiative (“SBTi”). The FY20 baseline has been

re-calculated for FY20 emissions at Experiences following the acquisition of that segment.

Strategic report Corporate governance Financial statements

“We have laid the ground work for our expected

return to organic revenue growth in FY24.”

Overview

The Group’s business model is resilient, profitable and cash

generative. This has enabled us to maintain investment in our

technology, marketing and operations throughout the year

ended 30 April 2023, laying the groundwork for an expected

return to organic revenue growth during FY24.

• We have scaled our technology team to 250 skilled data

scientists, analysts, and engineers, up from 195 in April 2022

and 153 in April 2021.

• After four years of foundational work and the successful

migration of Greetz onto our unified technology platform, our

technology teams are now accelerating growth initiatives

that can be leveraged across both of our card-first brands.

A technology and data-led innovation roadmap is being

implemented, including features such as Moonpig Plus

subscriptions, video messages in greeting cards and group

cards that will enhance the Moonpig and Greetz value

proposition relative to online and offline alternatives.

• We have opened new operational facilities on ten-year

leases in Almere, Netherlands and Tamworth, UK. Insourcing

operations enhances scalability, provides flexibility for driving

customer basket size through bundling gifts and offers

potential for gross margin efficiencies.

• We have continued to build our brands. Our principle of

maintaining marketing efficiency led to a lower marketing

spend in light of fewer available online search engine

impressions, however our customer acquisition activity

remained substantial, with revenue from new customers

continuing to exceed pre-pandemic levels.

• We completed the acquisition of Red Letter Days and

Buyagift, welcoming them to the Group as our Experiences

segment. Following acquisition, we have implemented

significant operational changes, including appointing a

new Managing Director and leadership team and are

now investing to deliver the strategic roadmap set out

at acquisition, including modernising the Experiences

technology platform.

Chief Executive Officer’s review

Moonpig Group plc | Annual Report and Accounts 2023

The Group has a compelling market growth opportunity ahead

of it, as online penetration of the single greeting cards market

remains low at approximately 15% in the UK and 21% in the

Netherlands for 2022 (source: OC&C). As the clear leader in

the online segment, we are well placed to capitalise on and

drive the transition from offline to online. We also now own

Experiences, which provides opportunities to unlock innovation

through digital gifting and has equipped us with a profitable

presence in the standalone gifting market.

Despite facing a more challenging trading environment from

October 2022 onwards, we have delivered a strong set of

results. This reflects the commitment of our people across the UK,

Guernsey and the Netherlands, and has been made possible by

the strength and flexibility of our business model:

• Our focus on customer lifetime value equips us with resilience

in more challenging conditions. Our approach at Moonpig

and Greetz is focused on acquiring loyal customer cohorts

that drive recurring annual revenue and 88.6% of revenue at

these brands was generated from existing customers (FY22:

86.5%). The long-term “sticky” nature of these customer

cohorts is supported by our data and technology platform,

which allows us to personalise the user experience. Our

database of 84m reminders (April 2022: 72m) enables us to

communicate directly with customers at times of maximum

purchase intent. More generally, the greeting cards market

has a long track record of recession-resilience.

• We have delivered £84.2m (FY22: £74.9m) of Adjusted

EBITDA, reflecting 12.4% year-on-year growth. The

acquisition of Experiences contributed £13.0m of Adjusted

EBITDA, which was broadly offset by the impact of post-Covid

reversion of trading at Moonpig and Greetz. Gross margin

rate has improved year-on-year, reflecting management

action to improve intake margin, the category mix impact of

prioritising resources towards higher-margin cards, the use of

our personalised promotions engine to target discounts more

precisely and the impact of the acquisition of Experiences.

We have prioritised resources where the return on investment

is highest. We have taken a disciplined approach to the

management of indirect costs.

• Our business is highly cash generative. Net debt to pro forma

Adjusted EBITDA decreased from 2.45x at 31 October 2022

to 1.97x at 30 April 2023 and we expect this trajectory of

deleveraging to continue in the year ahead.

We delivered FY23 Adjusted EBITDA of £84.2m (FY22: £74.9m)

and operating cash flow of £56.2m (FY22: £59.6m) whilst

maintaining investment for growth and delivering on our three

strategic pillars. These pillars focus on leveraging data and

technology to make the gifting experience effortless, building

our brands so receiving our product always means more and

ensuring the perfect range of cards and gifts for every occasion.

Leveraging data and technology

In 2018, we embarked on a multi-year journey to transform

Moonpig and Greetz into technology and data-led businesses.

We accomplished this in September 2022 with the completion

of a unified technology platform. After four years of work on

foundational projects, the majority of our skilled data scientists,

analysts and engineers are now focused on iteration, testing and

improvement to drive revenue growth at Moonpig and Greetz.

The pace of technology innovation has risen, with key

developments including:

• The full launch of Moonpig Plus, our low-cost, affordable

subscription service, in May 2023. Based on extensive testing

throughout FY23 we expect that this will increase customer

order frequency.

• The introduction of new iOS and Android apps for Greetz.

• The launch of tailored recommendation algorithms at Greetz

to drive gift attachment by Dutch customers.

• The implementation of suggested gift bundles, an improved

gift/flower image carousel and gift cross-sell at the basket

stage of the customer journey at Moonpig.

• The roll-out of video messages across the card range, with

over 75,000 messages sent by Father’s Day 2023.

• The launch of digital codes for gift experiences in Moonpig

cards.

• The introduction of stickers and photos for the inside of cards

at Moonpig and Greetz.

• The phased roll-out of new features and functionality for

Moonpig group cards.

At Experiences, we have extended direct voucher redemption

to more products including The View from The Shard and city

cruises to drive recipient-into-customer conversion. We are also

investing in modernising the Experiences technology platform,

with a new content management system and on-site search

scheduled for roll-out in FY24.

Building our brands

Through continued, disciplined marketing activity, we delivered

FY23 revenue from new customers that was 33% higher than

in FY19, the largest pre-Covid year. Moonpig launched its most

comprehensive cross-channel marketing campaign ahead of

Mother’s Day in the UK, enabling Moonpig to record its largest

ever week of sales during March 2023.

Over the past five years, our strategy has consistently emphasised

delivering revenue growth through the existing customer base,

and the share of revenue from existing customers increased year-

on-year to 88.6% (FY22: 86.5%). We maintained our disciplined

approach to new customer acquisition in which we ensure that

payback periods stay within our framework. We aim to acquire

high-quality, loyal customer cohorts that deliver lifetime value

rather than pursuing short-term, transactional revenue.

Strategic report Corporate governance Financial statements

We have broadened the marketing mix through increased

consumer PR coverage and partnerships, such as the successful

launch of the “Disney 100” flowers range. At Greetz, we focused

on driving app downloads after launching new iOS and Android

apps in September 2022.

Reminders are one of the most effective ways for Moonpig

and Greetz to communicate with customers and growing the

number of reminders set has been a key business objective

across recent years. We delivered against this in FY23, further

increasing the size of the database from 72m reminders at

April 2022 to 84m reminders at April 2023. In the year ahead

we will emphasise reminder collection at Greetz, where a

smaller proportion of customers have set more than one

reminder, compared to Moonpig. We are also implementing

initiatives such as “upcoming occasions” panels on customer

landing pages, to improve reminder conversion.

Whilst Experiences primarily focused on optimising online

performance marketing, we have begun the process of

differentiating the Red Letter Days and Buyagift brands, so that

the former emphasises iconic experiences and a more curated

range whilst the latter will be more value-led. Moonpig became

the Experiences segment’s largest online distribution partner in

FY23 after launching the first version of digital gift experiences

in a card. As we expand digital gifting beyond the current

300 SKU range and enhance search and browse functionality,

we anticipate further sales growth.

Personalised

video messages

As part of our strategy to differentiate the inside of our

cards from competitors, we have launched a unique

feature that allows customers to add custom video

messages to their greeting cards.

Customers simply select their preferred card design

and upload a personalised video. We then print

the card with a QR code linked to this video. The

recipient can effortlessly access and experience this

personalised message by scanning the QR code with

their smartphone.

This innovation has proven popular with our

customers. By Father’s Day 2023, over 75,000

video messages had been sent, signalling a strong

reception. We expect this to increase as more people

become aware of the feature through word-of-mouth.

Initially, this feature was offered on 10,000 card

designs for Valentine’s Day 2023. Given its successful

uptake, we have now extended it across our card

range.

Expanding our range

We aim to have the perfect card and gift for every relationship

and every occasion. For greeting cards, we have formed a single

global design team to leverage the strength and breadth of our

UK range across geographies. This team manages in-house

and licensed card designs, with a current key focus on bringing

global licensed properties that already feature on Moonpig

(such as Marvel, Disney and Star Wars) to Greetz.

In gifting, we have expanded our offering with personalised

balloons at Greetz and Moonpig’s most extensive flower range

to date, with 72 bouquets at Valentine’s Day and 102 bouquets at

Mother’s Day. We have emphasised bringing new products and

curating gift sets and bundles to differentiate our offering.

We have partnered with new gifting brands, such as My 1st Years

for baby and young children’s gifts and Mars for personalised

chocolates. We have enhanced our flowers offering through

co-branding with Cath Kidston and Disney. Moreover, we have

introduced the Red Letter Days and Buyagift brands at Moonpig,

offering both physical gift boxes and digital gifting options.

Chief Executive Officer’s review

Moonpig Group plc | Annual Report and Accounts 2023

In response to customer demand for more affordable gifting,

we have strengthened our range of gifts at price points

below £16, launched a new letterbox gifting range at Greetz

and added numerous new designs to Moonpig’s balloon

and personalised mug ranges. We have also offered value

for customers through an expanded range of supplier-

funded promotions.

Finally, we continue to enhance the Experiences range by

launching new experiences with premium partners such as

Harvey Nichols, Harrods, Côte, Macdonald Hotels and the

Gordon Ramsay Academy.

Maintaining high ethical, environmental

and sustainability standards

We continue to execute against our ESG strategy, which

commits the Group to eight long-term goals focused on the

environment, its people and its communities.

Progress has been strong on climate-related goals. We

surpassed our expectations with respect to Scope 1 and 2

greenhouse gas emissions, achieving 95% renewable energy

mix at Tamworth and Almere. We have fully measured out

our Scope 3 emissions baseline and have developed the

Group’s inaugural climate transition plan. In view of the

progress made, we have set new goals for greenhouse gas

emissions reduction, comprising near-term and long-term

targets for each of Scope 1 and 2 (direct) emissions and

Scope 3 (value chain) emissions.

We have also made good progress on our diversity goals.

One of our ESG goals is for new hires into technology

security, engineering, product and analytics roles to be

at least 45% from women by 2025. For the year ended 30

April 2023, 45% of new hires into these technical roles were

women (FY22: 37%).

Our employee engagement KPI has been impacted by the

need for disciplined control of costs during an economic

downturn. Customer net promoter score reflects repeated

industrial action at Royal Mail in the UK. We are confident in

our ability to deliver significant improvements in both areas

during the months ahead.

Nickyl Raithatha

Chief Executive Officer

28 June 2023

New collage designer

for photo upload cards

We want user experience to be as convenient as

possible, including when customers are creating

a highly personalised card. With this in mind, we

have launched a collage designer which uses our

technology to arrange photos on a card.

This new feature enables customers to create

personalised cards with photos from their personal

files. Our technology intuitively constructs a

personalised collage card, bypassing the need to

browse and select from multiple templates. The

customer can then further customise the card by

cropping, resizing or shuffling images.

The collage designer was rolled-out across both

Moonpig and Greetz in FY23.

Strategic report Corporate governance Financial statements

We have transformed our

business into a technology and

data platform for gifting.

Moonpig Group is a leading international gifting platform

with a rich history of innovation, growth and fun. It all began

in April 2000 when moonpig.com was launched as the UK’s

first online card retailer. The vision was simple: to create a

better card than customers could find on the high street, by

combining digital printing and the internet. As time went

on, the Group expanded into card-attached gifting, adding

flowers, off-the-shelf gifts and balloons to its range.

In 2018, the Group acquired Greetz, one of the Netherlands’

leading online card and gifting businesses. Greetz was

founded in Amsterdam in 2004, since then it has established

itself as a clear market leader in online cards with strong

brand awareness.

On 5 February 2021, the Company was admitted to the

Official List of the Financial Conduct Authority and to trading

on the premium segment of the London Stock Exchange’s

Main Market for listed securities. This milestone reflects the

Group’s position as a leading player in the gifting industry.

In July 2022, the Group completed the acquisition of

Experiences, which operates the Red Letter Days and

Buyagift brands. This acquisition accelerated our strategy of

becoming the ultimate gifting companion.

From 2018 onwards, the Group has invested in transforming

itself into the world’s leading technology and data platform

for gifting. Most recently, this has involved several large

foundational projects, including the migration of Greetz onto

our unified technology platform and the opening of new

operational facilities in Tamworth in the UK and Almere in

the Netherlands.

Since completing these foundational projects, the Group’s

technology teams have been focused on growth initiatives

and product innovations such as video messages and digital

gifting in greeting cards and Moonpig Plus subscriptions.

Innovator of personalised cards

The leading online card and gift shop

Transformation into a technology and data platform

Transition to innovation and growth initiatives

2004

Greetz is founded in the

Netherlands

2006

Moonpig launches its first

television campaign, featuring

the iconic jingle

2007

Moonpig introduces gifts

2000

Moonpig, the first online

greeting cards business,

is founded

2010

Greetz introduces flowers

Our journey

Moonpig Group plc | Annual Report and Accounts 2023

2020

December

Incorporation of Moonpig Group plc

Completion of technology and

data replatforming at Moonpig

September

Launch of the Global Design Platform

for greeting card designs

2021

Moonpig Group floats on the

London Stock Exchange

2016

Moonpig Group is acquired

by Exponent

2018

August

Moonpig Group acquires Greetz

November

Launch of the Group’s

Manchester technology hub

2022

March

Moonpig launches in Ireland

July

Acquisition of Experiences

(Red Letter Days and Buyagift)

September

Completion of the unified technology

platform for Moonpig and Greetz

New UK operational facility opens in

Tamworth

New Netherlands operational facility

opens in Almere

Launch of new iOS and Android

apps at Greetz

2023

Launch of digital gifting in greeting cards

Launch of Moonpig Plus subscriptions

Launch of video messages in greeting cards

Strategic report Corporate governance Financial statements

At Moonpig and Greetz, our data-driven growth

flywheel drives customer retention and lifetime value.

Higher

purchase

frequency

data

Better

experience

Smarter

algorithms

Reminder

setting

and app

downloads

Capture of highly

relevant predictive

data around

gifting intent

Personalised experience

and contextual

recommendations

Targeted marketing at

times when the consumer

has highest gifting intent

Virality

Recipients become

customers

Gift attach

The most relevant gifting

platform with minimal

acquisition costs

Card-first customer

acquisition

Profitable with high loyalty

Customer

retention

Brand power

Clear market leader, with

two category-defining brands

and high brand awareness.

Rich data pools

Proprietary recommendation

algorithms are optimised

across 84m reminders as

at 30 April 2023.

Scale

Each day, the Group

captures approximately six

times

the customer data of

its nearest competitor.

Platform

A world-class technology

platform, which is constantly

optimised through ongoing

testing.

Competitive advantages

1 Moonpig UK market share 2022 source: OC&C, June 2023.

Business model

Moonpig Group plc | Annual Report and Accounts 2023

At Experiences, our strategy is to create a growth flywheel by

focusing on the conversion of recipients into future customers.

Quality and

breadth

of range

Shopper

experience

Flexibility

and choice

Recipient

experience

Range of over 4,800

experiences with true

nationwide presence

and value-for money

at multiple price points

Quality of shopper

experience drives

repeat customer

behaviour

A simple online booking

journey, with a steadily

increasing proportion of

experiences available to book

on our redemption websites

Ease of booking

and quality of the

experience drives

recipient-to-customer

conversion

Peace of mind that the recipient has

flexibility to choose a different experience

Availability for the preferred time, location and provider.

Flexibility to redeem instead for any other experience of the

same amount, or to trade up to a more expensive experience

Customers

Recipients

New customer acquisition

Customer

base

Range

The broadest and deepest

range of gift experiences in

the UK, including the widest

range across categories and

the most comprehensive

coverage in the UK.

Brands

Red Letter Days and Buyagift

are two long-established

brands with high levels of

customer satisfaction.

Recipients

become customers

Conversion of gift experience

recipients into future

customers, leveraging the

online touchpoints during

the redemption and booking

journey.

Revenue synergy

with Moonpig

The only gift experiences

platform that has opportunity

to leverage Moonpig’s

proprietary dataset on

customer gifting intent.

Strategic report Corporate governance Financial statements

Our platform is a

data-driven gifting

recommendation engine.

We leverage proprietary data on customers’ gifting intent

and self-learning algorithms to make it as effortless as

possible to find the perfect card and perfect gift.

Card-first acquisition

of loyal customers

Driving customer acquisition

through network effects

Every card order is

an opportunity to

cross-sell gifts

• The card purchase journey captures multiple unique

datapoints including relationship, occasion, age, style,

mood, recipient address and propensity to spend.

• 90% of card occasions are linked to a calendar event

(for instance birthdays, anniversaries) that repeats

every year. This builds long-term relationship data,

which strengthens over time.

• Customer loyalty is supported by personalised

occasion reminders.

• The typical customer buys approximately three cards

per year.

• The Group creates network effects with every customer

interaction.

• When each of the millions of group cards, physical gifts

and gift experiences are sent, the Group gains exposure

and the recipient becomes a potential future customer.

• Red Letter Days and Buyagift have direct opportunities

to interact with recipients during the online experience

code redemption process, creating the strongest

network effects.

• Moonpig is extending the online redemption touchpoint

to recipients through digital experiences (such as gifts

and video messages) that are redeemed using a code

printed on the inside of the card.

• This will expand opportunities for recipient-to-customer

conversion.

• Extensive data collected during the card

personalisation journey powers proprietary cross-sell

algorithms, which enable us to provide highly relevant

gift recommendations.

• There is a significant upsell opportunity, with over

70%

of all cards in the UK being given with a gift.

• It is key to build the right range of curated gifts, so that

our algorithms can recommend the perfect gift for

every gifting relationship and occasion.

• Cross-sell allows us to participate in physical and

experiential gifting categories with negligible

incremental marketing costs.

1 Source: OC&C, December 2020.

Business model in action

Moonpig Group plc | Annual Report and Accounts 2023

Raising average

order value through

gift bundling

One of our key growth drivers is increasing

gift attachment rates.

In FY23 we opened new operational facilities

at Tamworth in the UK andAlmere in the

Netherlands. Centralising our UK fulfilment

operations better equips us to support gift

bundling, which we can leverage to increase

basket sizes and therefore drive average order

value. Although flower fulfilment remains separate,

most gifts in each country can now be processed

from our main in-house fulfilment centres.

We have implemented new user experience

features thatencourage both single and multiple

gift attachments. Looking ahead, we see potential

for upselling (for example, promoting a larger

bouquet of flowers), selling ancillary products

(such as offering a vase with a bouquet of

flowers), and bundling (such aspairing flowers

with a box of chocolates).

Group cards

Group cards is an innovative feature that allows our

customers to digitally collect messages from colleagues,

family and friends in a single card. It was introduced

as a minimum viable product in the second half of

FY21, accessible only via the Moonpig apps. Following

launch, we have analysed data on user action to gain

insights into its use and to outline strategies for further

development and expansion.

We have now commenced the phased roll-out of new

features and functionality for group cards. Our focus in

FY23 has been on improving the contributor experience,

including allowing contributors to log in and read other

messages written inside the card. This strengthens

user engagement and provides opportunities for the

conversion of contributors into new Moonpig customers.

Looking forward, our FY24 roadmap includes increasing

the maximum limit for messages per card, extending

feature accessibility to users of Moonpig’s website

and launching a localised variant tailored for Dutch

customers using the Greetz website and app.

Strategic report Corporate governance Financial statements

UK Cards

Other

40%

36%

30%

60%

64%

70%

2019 2021 2022

Netherlands Cards

Other

33%33%

35%

67%67%

65%

2019 2021 2022

The Group has continued to consolidate

its online leadership in cards.

Clear online leadership in the cards market.

Market share of online card specialists 2019 – 2022

1,2,3

The Group is the clear online market leader in single greeting cards and has increased its market share each year

since 2019. The Group’s market share relative to its nearest competitor is now approximately 5.8x

1,2

in the UK and

approximately 3.2x

1,3

in the Netherlands.

1 Source: OC&C, June 2023.

2 For the UK, data for 2019 and 2021 has been updated for additional public disclosure by competitors since the OC&C report produced in June 2022. Other includes

Thortful, Funky Pigeon, Card Factory Online, TouchNote, Clintons, Paperchase, Hallmark, Boomf and Papier. Excludes non-card specialists which accounted for £16m of

the £199m total online segment in 2022.

3 For the Netherlands, the total market share of the three largest online specialist greeting cards operators (Greetz, Kaartje2go and Hallmark) equals c.65% of the total

online cards market.

F OC&C forecast.

The cards market is undergoing a long-term secular shift to online.

Estimated single greeting cards market 2019 – 2026

UK:

2019

£m

2020

£m

2021

£m

2022

£m

2023

£m

2024

£m

2025

£m

2026

£m

UK offline 1,226 1,011 1,077 1,166 1,221 1,239 1,257 1,275

UK online 140 239 243 199 208 234 261 289

Total UK market 1,366 1,250 1,320 1,365 1.430 1.473 1.518 1.564

UK online share % 10% 19% 18% 15% 15% 16% 17% 19%

Netherlands:

2019

£m

2020

£m

2021

£m

2022

£m

2023

£m

2024

£m

2025

£m

2026

£m

NL offline 262 194 210 233 239 237 238 240

NL online 39 73 83 64 64 71 75 79

Total NL market 301 267 293 297 302 308 313 319

NL online share % 13% 27% 28% 21% 21% 23% 24% 25%

There has been an enduring step-up in online penetration of the greeting cards market since 2019, to 15% in the UK and 21% in the

Netherlands for 2022. Online market penetration is forecast to reach 19% (UK) and 25% (Netherlands) in 2026.

Market overview

Moonpig Group plc | Annual Report and Accounts 2023

UK GDP growth

Cards value YoY% growth

Recession

-5%

-4%

-3%

-2%

-1%

20192018201720162015201420132012201120102009200820072006

0.6

0.70.7

1.1 1.1 1.1

1.5

2.6

1.2

0.9

0.6

2.2

0.9

0.1

There is an ingrained culture of sending cards in the UK and the Netherlands. The average Moonpig and Greetz customer (across the

UK and Netherlands) sends 23 cards

each year from all retail sources. The overall UK greeting card market has historically proven to

be non-cyclical and resistant to recessions, demonstrating growth through the 2008-2009 economic downturn.

Large, stable and resilient cards market.

UK single greeting cards market, year-on-year growth 2006 – 2019

The overall gifting market is large and underpenetrated.

Total addressable market size – UK, Ireland and the Netherlands

1, 2

1 Source: OC&C, June 2023.

2 Of the £60bn total gifting market, £33bn is standalone gifts, £25bn is gifts attached to a card and £2bn is greeting cards.

3 UK total cards market of £1.6bn in 2019 comprises £1.4bn single greeting cards and £0.2bn boxed card sets.

4 Source: OC&C, December 2020. The weighted average number of cards sent based on 24 cards per UK customer and 18 per Netherlands customer.

The Group’s leading position in online cards provides a competitive advantage in the market for card-attached gifting. Online

penetration of gifting is low, at 12%

for card-attached gifting and 22%

for total gifting (driven primarily by Christmas gifting). Within

the UK gifting market, the gift experiences segment is worth £7bn

Data-driven insight into

customers’ intent

Competitive advantage

in attached-gifting

Profitable entry into the

UK gift experiences segment

Untapped non-attached

gifting opportunity

Cards

£2bn

UK gift

experiences

£7bn

Card-attached gifting

£25bn

Total gifting

£60bn

Ireland Netherlands UK

£0.1bn £0.3bn £1.6bn

£3bn £15bn £42bn

£1bn £4bn £20bn

Strategic report Corporate governance Financial statements

Our strategy is to become the

ultimate gifting companion.

What this means What this means

What we have done What we have done

We aim to ensure that customers feel excited to send Moonpig,

Greetz, Red Letter Days and Buyagift products while recipients

are delighted to receive them.

To achieve this, we invest in strengthening our brands and

building trust in our quality and service. This trust underpins

customer loyalty and drives growth in our customer base as

recipients become customers themselves, generating a virtuous

cycle of growth.

We strive to offer the perfect card and gift for every relationship

and every occasion.

To achieve this, we continuously improve our range for both

cards and gifts, and the recent acquisition of Experiences has

further strengthened our gifting offering. As we refine and

optimise the algorithms that we leverage to help customers

discover the full extent of our range, we aim to capture a greater

share of their gifting wallet, raising purchase frequency and gift

attach rate.

• We have continued to make substantial investments in

brand marketing and customer acquisition throughout FY23,

despite flexing marketing activity down to maintain payback

thresholds through the economic downturn.

• Following the migration of Greetz onto our unified technology

platform, our Dutch customers can use our high-quality iOS

and Android apps for the first time.

• After testing throughout FY23, we launched the Moonpig Plus

subscription service for all UK customers in May 2023.

• We have grown our database of customer occasion

reminders across Moonpig and Greetz from 72m at April

2022 to 84m at April 2023.

• In addition, we acquired Experiences, adding the Red Letter

Days and Buyagift brands to the Group.

• We are enhancing our greeting cards through the

development of innovative features such as video messages,

digital gifting and group cards at Moonpig. Meanwhile, both

Greetz and Moonpig have introduced stickers and flexible

photographs to the inside of cards. These advancements are

part of an ongoing roadmap of new features that will set our

greeting cards apart from online and offline competitors.

• For gifts, we’ve expanded the number of SKUs to 8,800 at

April 2023 (April 2022: 2,400) through Moonpig and Greetz

range expansion and the acquisition of Experiences.

• Given the current economic climate, we’ve strengthened

our lower-priced gift offering, which now includes a more

comprehensive selection at £15 or less, a new letterbox range

at Greetz and expanded Moonpig ranges of balloons

(78 new designs) and personalised mugs (171 new designs).

• Our new facilities at Tamworth, which consolidate operations

previously outsourced to multiple locations, present

opportunities for us to drive sales of gift bundles and

multi-gift basket sizes.

Building

our brands

Enhancing

our range

Strategic focus Strategic focus

Our strategy

Moonpig Group plc | Annual Report and Accounts 2023

What this means

What we have done

We aim to use technology to harness our extensive and unique

dataset on customers’ gifting behaviour, to generate highly

relevant, personalised gifting recommendations.

Our algorithms are optimised across 266m cumulative

transactions as at April 2023 (April 2022: over 230m)¹. As market

leaders in the online segment of the greeting card market,

Moonpig captures approximately six times and Greetz captures

more than three times

the amount of customer data every day

compared to our closest competitors.

• In 2018, we embarked on a journey to transform Moonpig

and Greetz into technology and data-led businesses, which

culminated in September 2022 with the completion of a

unified technology platform.

• With this milestone achieved, Greetz can now leverage the

Group’s investments in technology and data to progressively

improve customer retention, customer purchase frequency

and gift attachment rates.

• After four years of laying the foundations, the majority

of our skilled data scientists, analysts and engineers are

now focused on accelerating the development of growth

initiatives that can be leveraged across both of our card-first

brands.

• At Experiences, we are investing to modernise the technology

platform as the first step in a multi-year plan to transform it

from an ecommerce marketing operator into a technology

and data-led platform. The focus of this strategy is on

building a growth flywheel that converts gift experience

recipients into future customers.

Leveraging data

and technology

Strategic focus

1 Cumulative transactions as of April 2023. All-time for Moonpig, from 1 September 2018 (post acquisition) to April 2023 for Greetz and from 13 July 2022 (post acquisition)

for Experiences.

2 By virtue of the ratio of Moonpig and Greetz share of the online segment of the market, relative to that of their closest competitor.

During the year, Moonpig

strengthened its range of

gifts at £15 or less. Our

flexible business model allows

us to react quickly to changes

in customer demand.

Strategic report Corporate governance Financial statements

Introducing new Greetz

iOS and Android apps

Launching subscriptions

withMoonpig Plus

A key aspect of our strategy at Moonpig has been to

encourage customers to use our market-leading apps.

Whenever we transition groups ofcustomers to our

apps, we see an uplift inaverage purchase frequency.

In FY23, 41% of Moonpig orders (FY22: 43%) were

completed via our apps. Taking into account that many

customers utilise multiple devices and interfaces, the

majority of Moonpig customers place some of their

orders using our apps.

With the migration of Greetz onto the Group’s unified

technology platform, our Dutch customers are now

able to access our dedicated iOS and Android apps.

We have begun the process of encouraging and

incentivising them to migrate to the app.

One of our key growth drivers is raising share of wallet.

On average, UK consumers purchase 20 cards per year,

with only three of these ordered from Moonpig.

Across recent years we have focused our brand messaging

around convenience and expanded our selection of greeting

card designs that do not require personalisation on the front

of the card. We have encouraged customers to use our apps.

We have also captured 84m occasion reminders (up from 72m

as at April 2022) offering discounts to incentivise customers to

order by clicking through from a reminder.

To target loyal customers who already use Moonpig

several times per year, we have introduced Moonpig Plus

subscriptions. This scheme offers discounts on greeting card

purchases in return for an annual fee, incentivising and

rewarding increased use. Based on testing across FY23,

we expect that it will positively impact purchase frequency.

Over the course of FY24 we will continue to refine and enhance

the scheme, adding benefits and features to encourage more

subscription uptake and enhance retention rates.

Strategy in action

Moonpig Group plc | Annual Report and Accounts 2023

Expanding our range with

personalised balloons at Greetz

Digital delivery of gifts

through code-in-a-card

A key aspect of our strategy is to extend our range, so that we

have the perfect gift for every relationship and every occasion.

Whilst personalised cards are highly scalable, individual

customisation of different personalised gifts can disrupt

economies of scale, necessitating bespoke production

processes. Likewise, offering customers varied editing options

for each product can add complexity to the technology

platform. If executed without discipline, personalised gifting

can lead to unprofitable revenue growth.

Our approach is to align the appeal of customisation with the

efficiency of large-scale production. We focus our personalised

gift offerings within selected categories where we can deliver

personalised products at scale. Our current range includes

personalised mugs and personalised alcohol.

In line with this strategy, we introduced personalised balloons

at Greetz in FY23. This required innovative production

technology to enable the mass-volume production of balloons

with personalised images, while avoiding digital jet printing

which causes micro-pores that hasten balloon deflation.

We intend to launch personalised balloons for Moonpig

during FY24.

We have taken our first step towards realising the potential

for digital gifting by launching gift experiences delivered

through a code inside Moonpig greeting cards.

Moonpig has a dedicated technology team building digital

gifting capability. “Gifts-in-a-card” is the start of a roadmap

covering all stages of the customer journey, including how

we make gift experiences more browsable and how we

leverage Moonpig’s proprietary dataset on gifting intent to

drive highly relevant gift recommendations across the UK’s

leading range of physical and experiential gifts. Beyond

direct revenue synergies from integrating Experiences

products into Moonpig’s platform, digital gift experiences

offer potential for stronger network effects as gift

redemption brings recipients into the Moonpig ecosystem.

At the same time, we have increased investment in the

technology team at the Experiences segment, initiating the

modernisation of the Experiences platform to improve the

booking and redemption journey forgift-first customers on

the Red Letter Days and Buyagift websites.

Strategic report Corporate governance Financial statements

A compelling growth

opportunity with clear,

compounding growth drivers.

Moonpig and Greetz Segments

1 Source: OC&C, December 2020. The weighted average number of cards sent based on 24 cards per UK customer and 18 per Netherlands customer.

Growth drivers

Customer

acquisition

What this means

There are an estimated 53.8m

card purchasers

in the Group’s existing core markets of the UK

and the Netherlands. As online market leaders,

the Group expects to continue to capitalise on

the structural shift to online.

The Group’s superior online proposition drives

significant competitive advantage versus the

offline market.

Future priorities

• Continue aligning Greetz to a card-first

acquisition strategy.

• Improving the recipient experience to

accelerate network effects.

• Maintain and grow consumer brand

awareness.

Share of

wallet (order

frequency)

What this means

The Group’s active customers are estimated

to purchase, on average, 23 cards per annum

(versus 20 cards per annum for consumers in

the market as a whole), of which only a small

proportion are purchased from the Group.

We aim to make gifting for every occasion

easy to remember, to choose, to create and

to purchase.

Future priorities

• Data-driven personalisation of the

customer journey.

• Enhancements to reminders programme.

• Greetz customer migration to the new

iOS and Android apps.

• Moonpig Plus subscription service.

Driving gift

attachment

What this means

In the UK, approximately 72%

of cards are given

with a gift. The card-first journey enables highly

relevant gift recommendations. Purchase intent

is high following card creation.

Cross-selling gifts means negligible incremental

marketing costs, sidestepping expensive

online competition in paid marketing for gifts

and flowers.

Future priorities

• Further range enhancement, including

digital delivery of gift experiences.

• Ongoing programme of improvements

in user experience and personalised gift

recommendations.

• Drive gift bundling, taking advantage

of centralisation of fulfilment in our two

new in-house operational facilities.

Enabler

Technology

and data

platform

What this means

The Group has scalable, custom-built technology

and proprietary algorithms optimised across

millions of data points.

Our platform drives a flywheel of historical data

on gifting intent driving future purchases, through

highly relevant gifting recommendations.

Future priorities

• With Moonpig and Greetz operating

from our unified technology platform,

most of our technology resource is now

focused on innovation and growth

initiatives.

• We intend to continue to grow the

Group’s technology headcount.

Key drivers of growth

Moonpig Group plc | Annual Report and Accounts 2023

Experiences Segment

1 Source: OC&C, June 2023.

Growth drivers

Customer

acquisition

What this means

The UK gift experiences segment of the market

is estimated at £7 billion

and we believe there is

a long-term secular trend from physical towards

experiential gifting.

Platforms are better positioned than direct suppliers

and category specialists to continue increasing

overall market share, given their superior customer

proposition for both givers and recipients.

Future priorities

• Optimisation of performance marketing

capabilities.

• Investment to further strengthen and

differentiate the Red Letter Days and

Buyagift brands.

• Emphasise complete flexibility to

exchange, giving peace of mind to

the giver.

Recipient-

to-customer

conversion

What this means

We want to leverage the redemption and booking

touchpoints to capture recipient data consents and

convert recipients into customers.

The key to this is building a compelling range of

experiences that can be booked online, so that

recipients browse the best range, have a great

recipient experience and interact directly with

Red Letter Days and Buyagift during the

redemption journey.

Future priorities

• Continue to expand our range of

experience suppliers to ensure we have

the broadest and best offering.

• Expand the proportion of the range

that can be booked online, so that

redemption is on the Red Letter Days

and Buyagift platforms.

• Add new opportunities for upsell

at redemption so that recipients

become customers.

Leveraging

synergy with

Moonpig

What this means

We have begun to leverage Moonpig’s proprietary

dataset on gifting intent to drive sales of gift

experiences on the Moonpig website and app.

At the same time, we are leveraging the Group’s

capabilities in technology, data and marketing with

the intention of accelerating growth at Experiences.

Future priorities

• Roadmap of technology development

to improve the way that we recommend

and present experience gifts during

the card-first journey on the Moonpig

website and apps.

• Digital delivery of gift experiences to

Moonpig customers, including through

redemption codes in greeting cards

and pure digital gifting.

Enabler

Technology

and data

platform

What this means

We are investing in the Experiences segment to

transform it from being a transactional online

retailer into a customer relationship technology

platform.

Key areas of focus are to fully digitalise the

redemption experience to further drive upsell

and online booking across categories to enable

recipient-to-customer conversion.

Future priorities

• Focus on improving conversion rate

(the rate at which the website converts

traffic into orders) and on search

engine optimisation (“SEO”).

• Website functionality improvements

to increase the retention of both

customers and recipients.

• Investment in booking integration

with experience providers to raise the

proportion of experiences that are

redeemed on our platform.

Strategic report Corporate governance Financial statements

Section 172(1) statement

The Directors of the Company (and those of all UK companies) are required to act in the way they consider, in good

faith, would most likely promote the success of the Company for the benefit of its members as a whole, whilst also

having regard to the matters listed in Section 172 of the Companies Act 2006.

The interests of key stakeholders and the Board’s approach to these are explained below. Further information on

the Board’s approach during FY23 to the matters set out in s172 of the Act and on decisions made by the Board,

are set out in the Governance Report at pages 76 to 129 and forms part of this s172(1) statement and is thereby

incorporated by reference in this Strategic report.

Stakeholder What matters to them How we engage

Customers

At Moonpig and Greetz,

our business model is built

around the progressive

accumulation of loyal

customer cohorts.

The use of data and

technology to create

a gifting companion

ecosystem differentiates

the Group from its

competitors.

• Ability to express that

they care about the

recipient

• The right card design

• Relevant gifting

recommendations

• Ability to personalise

• Convenience, including

same day despatch and

digital delivery

• Product quality

• Timely delivery

• Data protection

• We collect continuous customer feedback for each of our brands through

multivariate testing, on-site surveys, consumer research, reviews on third

party websites and brand awareness tracking.

• We extensively A/B test new products like Moonpig Plus subscriptions,

video messages in greeting cards and digital gift experiences before

rolling them out to all customers.

• The Group aims to maintain a customer Net Promoter Score of at least 70

and surveys NPS on an ongoing basis.

• Our customer service team operates seven days per week at each

of our four brands. Issues and themes from customer feedback are

communicated to our operational teams daily.

• We engage with customers through multi-channel marketing and provide

personalised reminders by email and app notification.

• Our unified technology platform now leverages AI and data to provide a

personalised online customer experience at Moonpig and Greetz.

• We have started investing in the Experiences technology platform to

enable a better and more personalised online customer experience.

• Following the Greetz technology platform migration, we prioritised rolling

out the feature developments that matter most to Dutch customers based

on their feedback, such as a more flexible layout for messages on the

inside of each greeting card.

• We communicated clearly with customers in the UK about the adverse

impact of industrial action at Royal Mail on greeting card delivery times.

We worked to help mitigate this impact where possible, for instance

by implementing a lower cost tracked and guaranteed Christmas card

delivery service in December.

• We are committed to prioritising technology security and data protection

as explained on page 71.

Recipients

We want recipients to

be delighted to open

their card or gift. Positive

recipient experience drives

viral customer acquisition

through word-of-mouth.

At Experiences, we plan

to accelerate recipient-

to-customer conversion

by investing in the online

redemption experience.

• A memorable and

enjoyable experience

• Convenient and reliable

delivery

• High quality products

and packaging

• Sustainability and ease

of recycling

• Ease of redemption for

gift experiences

• The breadth of our card design range means that recipients should see a

highly relevant card upon opening their envelope.

• The Group is investing in technology development to deliver innovations

such as group cards, video messages in greeting cards and digital gifting.

These differentiate our offerings from those of our offline and online

competitors.

• We have launched new flowers and gifts ranges, for instance letterbox

gifts at Greetz and an extended flowers range at Moonpig, including

more bundled sets that include both flowers and gifts.

• In both the UK and the Netherlands, we offer seven or eight days’

guaranteed freshness on cut flowers.

• We offer a seven-day parcel delivery service in the UK and the

Netherlands.

• To enhance our customers’ experience, we have invested in expanding the

proportion of gift experience categories that can be redeemed on the Red

Letter Days and Buyagift websites, rather than with the merchant.

Section 172 statement and stakeholder engagement

Moonpig Group plc | Annual Report and Accounts 2023

Stakeholder What matters to them How we engage

Employees

The Group’s delivery

against its strategic

objectives is dependent

upon it being able to

attract, recruit, motivate

and retain its highly skilled

workforce.

• Career and personal

development

• Reward

• Employee engagement

• Health and wellbeing

• Safe working conditions

• Dignity, respect and

inclusivity

• We foster an open, transparent culture through regular “All Hands”

meetings and an annual all-employee strategy conference, both of

which are led by the Executive Committee.

• We conduct twice-annual employee engagement surveys, which are

used to build engagement action plans at divisional and functional

level.

• Management engages with Employee Resource Groups, which

provide supportive forums for under-represented employee groups.

• Regular health and safety assessments are carried out to ensure the

wellbeing of all employees.

• Employee consultation was performed ahead of the co-location of

Experiences employees at the Group’s head office in Farringdon, the

outsourcing of Experiences customer service and the relocation of

Experiences fulfilment to the Tamworth operational facility.

• The Board engages with employees both through a clearly defined

programme of meetings carried out by the Designated Non-Executive

Director for workforce engagement (“DNED”) and through direct

engagement with employees by the other NEDs. The full Board

engages in oversight of employee engagement through reviewing

employee engagement survey results and receiving regular feedback

from the DNED. Further details are set out on page 84.

• The Group provides an independent whistleblowing service to

encourage employees to raise relevant concerns confidentially. No

concerns were raised during the year (FY22: none).

Investors

Access to capital is crucial

for the Group’s long-term

performance.

To provide investors and

analysts with a clear

understanding of our

strategy, business model,

culture, performance and

governance, we aim to

provide fair, balanced

and understandable

information.

• High governance standards

• A balanced and fair

representation of financial

results and prospects

• Confidence in the

Company’s leadership

• Clarity around principal risks

and uncertainties

• Total shareholder return

• Progress on business and

ESG strategy delivery

• We maintain open communication with investors through disclosures

in the Annual Report, investor presentations and trading updates.

These are readily available on our corporate website, along with

other market-related information via the regulatory news service.

• The Executive Directors interact with investors at formal roadshows,

investor meetings and attendance at investor conferences. See page

85 for further details.

• All Directors attended the Annual General Meeting held on 20

September 2022.

• Proactive shareholder engagement by the Non-Executive Directors

is carried out whenever the Board or its Committees identify matters

arising that merit discussion with shareholders. See page 85 of the

Corporate Governance Statement.

• Regular updates are provided to the Board on market sentiment,

investor relations activity and equity research reports.

• Exponent has one representative on the Board who has been actively

involved in Board decision making since their appointment in January

2021.

• A Relationship Agreement ensures that the Company is capable at all

times of carrying on its business independently of Exponent, its former

controlling shareholder. See page 88 for further details.

Strategic report Corporate governance Financial statements

Stakeholder What matters to them How we engage

Suppliers

Strong relationships with

suppliers are critical to the

Group’s success.

We prioritise building

long-term, mutually-

beneficial relationships

with our suppliers,

collaborating with them to

uphold high standards and

expectations of business

conduct.

• Long-term collaborative

relationships

• Growth opportunities

• Fair terms and conditions

• Responsible, ethical

procurement

• Prompt and accurate

payment

• The Group engages with suppliers and partners regularly, including

through members of the Executive Committee, to ensure ongoing

collaboration and mutual success.

• Our supplier onboarding process is rigorous and includes technology

security and data protection due diligence, as well as checks on

financial viability, modern slavery, anti-facilitation of tax evasion, anti-

bribery and sanctions.

• A Supplier Code of Conduct is available on our corporate website,

which outlines our expectations for ethical conduct, environmental

sustainability and social responsibility.

• We collaborate with key outsourcing partners to raise operational

performance.

• We partner with gift suppliers to expand our gifting proposition and

drive increased gift attach rates.

• The Group’s Global Design Platform provides independent designers

with opportunities to make their card designs available to our

customers in return for royalties.

• We report on supplier payment practices.

• We have set a goal to obtain commitments from suppliers representing

67% of Scope 3 emissions to set net zero targets by April 2030 and will

commence a related programme of supplier engagement in FY24.

Communities and

environment

The Group is committed to

making a positive impact

on the communities and

the environment in which it

operates.

• Positive impact on the

community

• Energy usage and carbon

emissions

• Sustainability

• The Group has a long-standing commitment to charitable activity.

For details on our charitable donations in FY23, see page 31.

• The Group continues to pursue a strategy to support the wider

technology sector. This includes extending our successful

apprenticeship programme and recruiting a diverse range of

candidates to participate in our coding bootcamps.

• Our new operational facilities at Tamworth and Almere are designed

with the environment in mind. The UK facility has achieved a “BREEAM

Excellent” rating, and the Netherlands facility has been retrofitted in

line with best practice.

• The Group is committed to sustainable sourcing and continues to

ensure that 100% (FY22: 100%) of our card, envelope and paper

packaging SKUs for our core UK and Netherlands markets are 100%

sustainably sourced, either through FSC or PEFC certification or

containing more than 75% recycled content.

• In FY23, the Group planted 85 hectares of woodland in partnership

with Tree-Nation, in addition to offsetting Scope 1 and 2 emissions.

• The Group measured its Scope 3 emissions baseline in FY23 and has

set a target to reduce Scope 3 emissions by 97% tCO

/Gross Profit by

2050 versus FY22.

• The Board has approved the Group’s inaugural climate transition

plan, which sets out how the business plans to adapt as the world

transitions to a low carbon economy.

Section 172 statement and stakeholder engagement

Moonpig Group plc | Annual Report and Accounts 2023

Transforming the inside

ofourgreeting cards

In recent years our commitment to offering the best and most

diverse range of cards has led us to expand our range to

47,000 unique designs as at April 2023. This work continues,

with a current focus on integrating globally licensed

properties such as Marvel, Disney and Star Wars, which are

already popular on Moonpig, into our Greetz collection.

Having set a market-leading standard for the outside of

greeting cards, we want to transform the customer and

recipient experience relating to the inside of each card.

As our technology team has transitioned from foundational

projects to growth initiatives, we have commenced a

roadmap of work to differentiate the inside of our greeting

cards from competitors. This includes video messages,

code-in-a-card digital gifting and will include future

enhancements in digital handwriting.

As part of this initiative, we have introduced stickers

and flexible photos to the greeting card editor at

both Moonpig and Greetz.

Link to strategy

Strategic report Corporate governance Financial statements

The Group’s ESG strategy

focuses on making a difference

to the environment, its people

and its communities.

Across an extended period, Moonpig Group has contributed to

society through its core purpose, which is to create better, more

personal, connections between people that care about each

other and through its support for charities.

We have built on these strong foundations during the past two

years through ongoing delivery against the Group’s ESG strategy.

Key areas of ESG focus for FY23 have been:

• Continued delivery against eight ESG goals.

The Group’s ESG strategy commits it to eight long-term goals

focused on the environment, its people and its communities.

In setting the strategy, the Board chose to focus on six of the

United Nations’ 17 Sustainable Development Goals that it

considers most relevant to the business.

• Measuring value chain greenhouse gas (“GHG”) emissions.

We have measured the Group’s Scope 3 emissions by category

to create a FY22 baseline and have set a new ESG goal to

reduce the emissions intensity by 97%tCO

e/£1m Gross Profit

by 2050. To help achieve this, we plan to obtain commitments

from suppliers to set emissions reduction targets aligned with

SBTi criteria. By April 2030, we aim for suppliers covering 67%

of our Scope 3 emissions to have such commitments in place.

• Developing a climate transition plan.

The Board has approved the Group’s inaugural climate

transition plan, which sets out how the business plans to adapt

as the world transitions to a low carbon economy.

• Strengthening ESG disclosure.

This year, the Group has commenced disclosure of

climate-related metrics and targets in accordance with the

Task Force on Climate-related Financial Disclosures (“TCFD”)

and made its inaugural voluntary disclosure applying the

SASB Standards.

ESG goals

See pages 29 to 31

Environment

See page 32 to 47

TCFD

See pages 32 to 47

Energy and carbon reporting

See page 41 to 42

People

See page 48 to 49

Diversity and gender pay gap

See pages 48 to 49

Communities

See page 50 to 51

SASB Standards

See page 52 to 53

Environmental, social and governance

Moonpig Group plc | Annual Report and Accounts 2023

Moonpig Group’s ESG Goals for FY24

The Group’s ESG strategy focuses on eight long-term goals. For FY24,

we have updated goal 1 and goal 2 to extend our emissions reduction targets so that

they incorporate net zero for both operational and value chain emissions by 2050.

Environment People Communities

Consume resources more sustainably,

and move towards a positive impact

on the environment.

Promote high performance, high

engagement and high levels of inclusion.

Generate a positive impact in the

communities that the Group serves and

hires from.

Goal 1: Net zero operational emissions

Goal 4: Leadership representation Goal 6: Charitable giving

Reduce operational greenhouse

gas emissions (Scope 1 and 2) by at least

50% by 2030, and achieve at least a 90%

reduction by 2050, in each case offsetting

any remaining emissions and using FY20

as the baseline year.

Maintain the combined representation

of women and ethnic minorities on the

Leadership Team

at around 50%.

Invest £1m between 2020 and 2025

leveraging the Moonpig Group

Foundation.

Goal 2: Net zero value chain emissions

Goal 5: Employee engagement Goal 7: Technology representation

Obtain commitment from suppliers

representing 67% of Scope 3 emissions

to set net zero targets by April 2030

and

reduce Scope 3 emissions intensity by

97% tCO

e/£1m of Gross Profit by 2050,

using FY22 as the baseline year.

Reach and maintain an employee

engagement score at or above 72%.

Maintain the level of new hires into

technical roles

at around 45% women.

Goal 3: Forest positive Goal 8: Customer satisfaction

Reforest at least 330 hectares of woodland

by the end of calendar year 2025.

Reach and maintain a top-quartile

Customer NPS score of at least 70.

UN Sustainable Development Goals

We focus on six of the United Nations’ 17 Sustainable Development Goals

that we consider most relevant to the business.

SDG 4 – Quality education

Ensure inclusive and equitable quality education and promote

lifelong learning opportunities for all

• Goal 7: Technology representation

SDG 5 – Gender equality

Achieve gender equality and empower all women and girls

• Goal 4: Leadership representation

• Goal 7: Technology representation

SDG 8 – Decent work and economic growth

Promote sustained, inclusive and sustainable economic growth,

full and productive employment and decent work for all

• Goal 5: Employee engagement

SDG 12 – Responsible consumption and production

Protect, restore and promote sustainable use of terrestrial

ecosystems and sustainably manage forests

• Goal 3: Forest positive

SDG 13 – Climate action

Take urgent action to combat climate change and its impacts

• Goal 1: Net zero operational emissions

• Goal 2: Net zero value chain emissions

SDG 15 – Life on land

Protect, restore and promote sustainable use of terrestrial

ecosystems and sustainably manage forests

• Goal 3: Forest positive

1 For FY24, we have updated this goal to incorporate net zero by 2050. In FY23 it focused solely on emissions reduction by at least 50% by 2030.

2 This is a new ESG goal for FY24. It replaces the now-delivered goal to more accurately measure value chain emissions and set Scope 3 reduction targets by the end of FY23.

3 Obtain commitment from suppliers representing 67% of Scope 3 emissions to set net zero emissions reduction targets aligned with SBTi criteria by 30 April 2030.

4 Comprises the Executive Committee (including Executive Directors) and their direct reports who are also members of the Extended Leadership Team.

5 Technical roles for these purposes comprise those in technology security, engineering, product and analytics. For FY24 we have updated this goal to “Maintain the

level of new hires into technical roles at around 45% women” as this goal was achieved during FY23.

Strategic report Corporate governance Financial statements

Goal Progress to date Next steps for FY24

Goal 1 – Reduce operational

greenhouse gas emissions

(Scope 1 and Scope 2) by at

least 50% by 2030, aligned to

the SBTi near-term target.

The Group is committed to:

(a) reduce absolute emissions

arising from its own operations

(Scope 1 and Scope 2) by at

least 50% by 2030 versus total

emissions of 677tCO

e in the

baseline year of FY20

1,2

; and

(b) offset any emissions that

cannot be reduced. This has

been validated by the Science

Based Targets initiative (“SBTi”).

In FY23, the Group’s total Scope 1 and 2 emissions were

531tCO

e, (FY22: 548tCO

e) representing a reduction of 22%

from FY20 baseline

emissions of 677tCO

e in FY20.

The Scope 1 and 2 baseline validated by the SBTi was for

total emissions of 635tCO

e at Moonpig and Greetz in

FY20

, which has been re-calculated for the acquisition

of Experiences. On a comparable basis with the original

baseline, relevant emissions in FY23 were 504tCO

e (FY22:

518tCO

e).

The reduction in emissions was driven by moving to two

new fulfilment sites with high environmental standards

(including a BREEAM Excellent-rated facility in the UK and

a Netherlands facility retrofitted in line with best practice)

and making continuous improvements such as the use of LED

lighting sensors, energy-efficient IT equipment procurement

and onsite electric vehicles. Additionally, we procured a

renewable electricity tariff at our Amsterdam office and

Almere operational facility in the Netherlands.

In FY23, we invested through Climate Impact Partners to

offset Scope 1 and 2 emissions from the previous year (FY22:

The Woodland Trust). Each project in which the Group has

invested, through Climate Impact Partners, is reviewed by an

internationally recognised accreditation body and verified

prior to our investment.

For FY24, we have updated

this goal: we aim to reduce our

operational greenhouse gas

emissions (Scope 1 and 2) by at

least 50% by 2030, and achieve

at least a 90% reduction by

2050, in each case offsetting any

remaining emissions and using

FY20 as the baseline year.

In FY24 we plan to conduct energy

audits to identify energy efficiency

solutions for high consumption

areas.

Goal 2 – More accurately

measure value chain emissions

and set Scope 3 reduction

targets by the end of FY23.

The Group aims to reduce

indirect emissions, integrating

positive environmental actions

into our business strategy.

We have measured Scope 3 emissions for our baseline year

of FY22

at 80,928tCO

e and 433tCO

e/£1m of Gross Profit.

We have set out information on emissions by category and

measurement methodologies at pages 41 to 47.

We have set a long-term goal to reduce Scope 3 emissions

by 97% tCO

e/£1m of Gross Profit by 2050. We plan to obtain

commitment from suppliers in setting emissions reduction

targets aligned with SBTi criteria. By April 2030, we aim for

suppliers covering 67% of our Scope 3 emissions to have

such targets in place.

As part of our process of measuring value chain emissions,

we held workshops with key suppliers to introduce carbon

foot printing and tools for capturing emissions data.

Our GHG emissions disclosure on pages 41 to 42 includes

details of our Scope 3 categories, our organisational and

operational boundaries and the methodologies we use to

measure value chain emissions.

For FY24, this goal will be

replaced with a new goal to

deliver Net Zero value chain

emissions by 2050:

• Obtain commitment from

suppliers representing 67% of

Scope 3 emissions to set net

zero emissions reduction targets

aligned with SBTi criteria by 30

April 2030.

• Reduce Scope 3 emissions

intensity by 97% tCO

e/£1m of

Gross Profit by 2050, using FY22

as the baseline year.

Goal 3 – Reforest at least 330

hectares of woodland by the

end of calendar year 2025.

The Group relies on wood pulp to

make its products and therefore

aims to be “forest positive”.

This means that we will plant

more trees than we use in our

operations and value chain.

In FY23, we achieved 46% cumulative delivery against this

five-year goal (FY22: 20%). In partnership with Tree-Nation,

we planted 85 hectares of woodland, comprising of 99,000

trees (FY22: 106,000), in addition to any emissions offsetting

conducted within Goal 1.

During FY23, we worked with Tree-Nation to focus planting

activity in ecologically sensitive areas and safeguard the

long-term impact of tree planting by managing the forests.

In FY23 we contributed to projects in Madagascar, Nepal,

Tanzania, Columbia, Thailand, India and the UK.

The Group intends to plant a

further 66 hectares of forest in

FY24.

1 For Scope 1 and Scope 2 emissions, the baseline year is FY20 and this has been validated by the SBTi. The FY20 baseline has been re-calculated for FY20 emissions at

Experiences, following the acquisition of that segment. For Scope 3, the baseline year is FY22, calculated to include FY22 Experiences data.

2 Scope 2 emissions are calculated using the “location-based” method. For comparatives using the “market-based” method, see page 41.

Delivery against the Group’s ESG Goals in FY23

Environmental, social and governance

Moonpig Group plc | Annual Report and Accounts 2023

Goal Progress to date Next steps for FY24

Goal 4 – Maintain the

combined representation of

women and ethnic minorities

on the Leadership Team

around 50%.

The Group wants to be

representative of its customers

and the communities in which it

operates.

As at 30 April 2023, the combined representation of women

and ethnic minorities on the Leadership Team

was 52%

(FY22: 53%).

In FY23 we launched two new development programmes,

aimed at building leadership effectiveness and supporting

high potential talent to progress to director level.

Across the Group, 42% of individuals newly appointed into

Leadership Team

roles were female (FY22: 67%).

We will continue to develop

our next generation of female

leaders and monitor the retention

of women and ethnic minorities

currently in leadership roles.

Goal 5 – Reach and maintain an

employee engagement score at

or above 72%

Improving engagement

in our teams will improve

productivity and hence business

performance. It will help to

ensure that employees are

retained for longer, reducing

recruitment costs.

In FY23, our average engagement score across two surveys

for Moonpig and Greetz was 61%, which was below the prior

year (65%) and our goal (72%). This reflects the challenges

of operating in an economic downturn, characterised by

more disciplined cost control and greater pressure to meet

targets.

The surveys continued to show many positive aspects

including 77% of our employees say they would recommend

a friend to work for the Group (FY22: 81%).

We intend to capture engagement

data for the whole Group,

including Experiences, in FY24.

We will also commence a staged

process of aligning Experiences

employee benefits with the rest of

the Group.

Goal 6 – Invest £1m between

2020-2025 through the

Moonpig Group Foundation.

Through the Moonpig Group

Foundation, we want to

support initiatives that create

connections and spark moments

of joy in our communities.

During FY23 the Moonpig Group Foundation made

charitable donations totalling £211,000 (FY22: £189,000).

As at 30 April 2023 the Foundation has cumulatively donated

£444,000 (30 April 2022: £233,000) to third-party charities

since being set up in FY21.

The Group also made charitable donations on its own

account totalling £70,000 all of which was to the CAF (FY22:

£81,000, of which £75,000 was to the CAF).

Employees in each of our locations

have chosen a cause to support

in FY24. The chosen charities

are Campaign Against Living

Miserably (UK), Guernsey Society

for Cancer Relief (Guernsey) and

Stichting Jarige Job (Netherlands).

Goal 7 – New hires into

technical roles

to be at

least 45% women by the

end of calendar year 2025.

To deliver the Group’s strategy,

we need to hire highly skilled

technology workers from all

areas of society.

In FY23 45% of new hires into technical roles across the

Group were female (FY22: 37%). As at 30 April 2023, 34% of

employees in these teams are female (2022: 33%).

To support gender diversity, we have expanded coaching

and mentoring programmes, partnered with women’s

networking events like SheCanCode and Women In Tech,

and encouraged women to pursue technology roles through

our apprenticeship scheme. Our London and Manchester

offices also held interactive workshops in partnership with

Stemettes, a charity that supports women and non-binary

individuals in the early stages of their tech careers.

For FY24 this goal will be updated

to “Maintain the level of new hires

into technical roles at around 45%

women”.

Goal 8 – Reach and maintain

a top-quartile Customer NPS

score of at least 70

The Group’s mission is to

help people connect and it is

important that the Group’s

customers believe it is doing this.

In FY23, the weighted average customer NPS score across

Moonpig and Greetz was 60 (FY22: 71). Lower customer

NPS primarily reflects the impact of repeated industrial

action at Royal Mail.

We have since implemented further features to improve

Greetz user experience, including new iOS and Android

apps for Dutch customers.

In the UK, we implemented a low-cost, market-leading

guaranteed delivery service for the period running up to

Christmas to partially mitigate the service impact from Royal

Mail industrial action.

The roll-out of significant new

technology functionality is

expected to support improvements

in customer NPS in FY24.

We intend to report NPS data

for the whole Group, including

Experiences, in FY24.

1 Comprises the Executive Committee (including Executive Directors) and their direct reports who are also members of the Extended Leadership Team.

2 Technical roles for these purposes comprise those in technology security, engineering, product and analytics.

3 For FY23, delivery against Goal 5 (employee engagement) and Goal 8 (Customer NPS) has been measured for Moonpig and Greetz only. Measurement will be

extended across the whole Group, including Experiences, for FY24.

Environmental, social and governance

Strategic report Corporate governance Financial statements

The environment

The Group aims to reduce emissions across its value chain and

proactively manage the transition to a lower-carbon economy.

Environmental impact of products and services

The Group is committed to phasing out single-use plastic packaging throughout its value chain and has a packaging

waste-management programme in place. In FY23, the proportion of sustainably sourced paper, card and packaging

was 100% (FY22: 100%) in the UK and the Netherlands and 98% (FY22: 98%) globally. All cards, envelopes and

packaging procured by Moonpig and Greetz is reusable, recyclable or compostable. At Experiences, all experience

gift cards are made of compressed paper rather than plastic and 100% of packaging is sustainably sourced.

Statement of the extent of consistency with the TCFD framework

The Group has reviewed and included disclosure requirements as set out in “Recommendations of the Task Force

on Climate-related Financial Disclosures” published in June 2017 and in “Implementing the Recommendations of the

TCFD” published in June 2021 by the TCFD. The following table sets out the extent of consistency of Group’s disclosures

with the four recommendations and the eleven recommended disclosures set out in the initial report. Disclosure

outlined in the “Guidance for All Sectors”, included within the updated report published in 2021, has been presented

against each Pillar section of this TCFD report on pages 33 to 47:

TCFD pillar TCFD recommended disclosure Status

1. Climate governance

The organisation’s

governance around

climate-related risks and

opportunities

a) Describe the Board’s oversight of climate-related risks

and opportunities.

The Board’s oversight is described at pages 33 to 34.

b) Describe management’s role in assessing and

managing climate-related risks and opportunities.

Management’s role is described at pages 33 to 34.

2. Climate strategy

The actual and

potential impacts of

climate-related risks

and opportunities on

the organisation’s

businesses, strategy,

and financial planning

where such information

is material

a) Describe the climate-related risks and opportunities

the organisation has identified over the short, medium

and long term.

The Group’s climate-related risks and opportunities are

disclosed across pages 35 to 39.

b) Describe the impact of climate-related risks and

opportunities on the organisation’s businesses, strategy

and financial planning.

The impact of this risk assessment on business strategy and

financial planning is set out at page 36.

c) Describe the resilience of the organisation’s strategy,

taking into consideration different climate scenarios.

The Group has qualitatively assessed its resilience to

individual climate risks, but has not prepared integrated,

quantified climate scenarios due to transitional challenges

in embedding the relevant capabilities. We intend to explore

this requirement further during FY24. Refer to page 46.

3. Climate risk

management

How the organisation

identifies, assesses

and manages climate-

related risks

a) Describe the organisation’s processes for identifying

and assessing climate-related risks.

The Group’s processes for identifying and assessing climate-

related risks are set out at page 40.

b) Describe the organisation’s processes for managing

climate-related risks.

The Group’s processes for managing climate-related risks

are set out at page 40.

c) Describe how processes for identifying, assessing and

managing climate-related risks are integrated into the

organisation’s overall risk management.

Climate risk management is fully embedded within the

Group’s overall risk management framework. Refer to

statement on page 40 and summary of the Group’s risk

management process at pages 66 to 71.

4. Climate metrics

and targets

The metrics and

targets used to assess

and manage relevant

climate-related risks

and opportunities where

such information is

material

a) Disclose the metrics used by the organisation to assess

climate-related risks and opportunities in line with its

strategy and risk management process.

The Group’s climate-related metrics are disclosed at pages

41 to 47. One TCFD cross-industry metric category (internal

carbon prices) is not disclosed, however this is because the

Group does not use internal carbon prices.

b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3

greenhouse gas emissions and the related risks.

Disclosure of absolute Scope 1, 2 and 3 GHG emissions for

FY23 and FY23 is set out on page 41 to 42.

c) Describe the targets used by the organisation to

manage climate-related risks and opportunities and

performance against targets.

The Group has set targets for Scope 1, 2 and 3 emissions and

the proportion of Scope 3 emissions from suppliers with an

emissions reduction target aligned with SBTi criteria. Refer to

page 41 to 42.

Disclosure level: Full consistency Partial consistency Omitted disclosure

Voluntary assurance over TCFD disclosures

The Group has not obtained voluntary assurance over any area of FY23 TCFD reporting.

Environmental, social and governance

Moonpig Group plc | Annual Report and Accounts 2023

TCFD Pillar 1: climate governance

Disclosures (a) and (b) – Board oversight and management role

The following governance arrangements are place relating to the assessment and management of climate-related

risks and opportunities:

Area Disclosure (a) – Board oversight Disclosure (b) – Management role

Structure

Effective integration of

climate-related risk and

opportunity assessment

and management into

the Group’s governance

structure.

The Board has collective responsibility for risk,

including climate-related risk. The Board does

not consider it currently necessary to establish

a dedicated sustainability committee, given the

size and composition of the Board (in which all

Independent Non-Executive Directors sit on all

committees).

The Board has appointed Susan Hooper as

the lead Independent Non-Executive Director

in relation to oversight of ESG-related matters,

including climate-related matters.

A management Sustainability Working Group meets

regularly throughout the year to coordinate climate-

related planning, delivery against those plans

and climate-related disclosure. The management

Sustainability Working Group comprises the Chief

Financial Officer (“CFO”) and the Chief Operations

Officer (“COO”) together with individuals in finance

and ESG roles.

The CFO oversees maintenance of the climate

risk register.

The COO oversees the updating of and delivery

against the Group’s climate transition plan.

Expertise

Possession of knowledge,

skills, experience

and background to

ensure awareness

and understanding of

climate-related risks

and opportunities.

As at 30 April 2023, eight Board members had

ESG skills and experience, including relating

to climate matters, as identified by the Board

skills evaluation summarised in the Nomination

Committee report on page 100.

The Audit Committee has received external

updates on the roadmap for potential

future climate-related regulatory reporting

requirements.

The Remuneration Committee obtained

independent remuneration advice prior to

setting a climate-related bonus measure and

target for FY23.

There is relevant knowledge and skills within the

Group’s finance and ESG teams.

Management obtains specialist advice relating to

climate-related matters where appropriate. The

Executive Directors obtained external advice on the

development of the Group’s ESG Strategy in FY21

and on the initial implementation of TCFD framework

disclosures in FY22.

Accountability

Recognition of duties to

shareholders concerning

to climate change.

The Board recognises its duties to shareholders

for the long-term stewardship of the Group and

holds itself accountable for ensuring long-term

resilience with respect to potential shifts in

business landscape that may result from climate

change.

Management is responsible for ensuring that the

Board has access to the information required to

enable the Board to discharge its duties in relation to

climate change. For this reason, improved disclosure

of climate related metrics has been a key focus for

FY23, including the initial measurement of Scope 3

emissions.

Strategic integration

Systemic consideration

of climate in strategic

planning and decision-

making and embedding

into risk management.

The Board receives annual, scheduled updates

from the Chief Operations Officer on climate-

related strategy and delivery against it.

Climate risk is not procedurally embedded into

processes for strategic planning, budgets, capex

and M&A on grounds of materiality. However,

there is routine discussion and challenge on

climate-related impacts during Board and

Committee discussions.

The Group is progressively embedding climate-

related risk into the “three lines of defence” of its

risk management framework.

The focus to date has been on second-line oversight

provided by the Finance and ESG functions.

In FY24 we plan to strengthen first-line procedures

and controls, acting on the recommendations of

a sustainable procurement maturity assessment

performed in FY23 by the Group’s outsourced

internal auditors.

Materiality

Structures are in place for

reviewing the materiality

of climate-related risks

and opportunities and

ensuring a proportionate

response.

The Group’s climate-related risks and

opportunities are assessed and approved by the

Board twice each year, based on advice from the

Audit Committee.

The basis on which the Group has assessed

materiality for the purposes of climate-related

disclosures is set out on page 35.

The CFO is responsible for maintaining a register of

climate-related risks and opportunities, as part of the

Group’s risk management process.

The CFO presents the Group’s primary climate-

related risks to the Audit Committee and the Board

twice each year.

Strategic report Corporate governance Financial statements

Area Disclosure (a) – Board oversight Disclosure (b) – Management role

Remuneration

Incorporation of climate-

related measures and

targets in management

remuneration.

The annual bonus scheme for the Executive

Directors includes ESG-related measures

and targets. In FY23, one of these ESG bonus

measures was climate-related, requiring both

delivery against a quantified renewable energy

target and the implementation of processes for

the measurement of indirect emissions.

In FY23, climate-related bonus measures and

targets applied for certain members of the Executive

Committee.

For FY24, the annual bonus scheme includes a

climate-related target that applies for all members

of the Executive Committee and for the Extended

Leadership Team.

Reporting

Consistent and transparent

disclosure of material

climate-related risks and

opportunities.

The Board approves the Group’s TCFD

disclosures as part of the process for the approval

of the Annual Report and Accounts, on advice

from the Audit Committee.

Disclosure has been expanded for FY23 and this

Annual Report additionally covers reporting of

Scope 3 emissions, climate-related metrics and

targets and the Group’s climate transition plan.

Management is responsible for the preparation of the

Group’s climate-related reporting.

Stakeholder exchange

Appropriate engagement

and dialogue with

stakeholders.

The Independent Non-Executive Director with

responsibility for oversight of ESG matters

is a founding director of Chapter Zero, an

organisation which promotes corporate

awareness of climate change.

The Executive Directors discuss sustainability and

other ESG topics as part of their ongoing programme

of meetings with investors, fund managers and

analysts.

Management engages with selected third-

party organisations that monitor company ESG

performance.

The Group’s carbon emissions reduction target was

validated by the Science Based Targets initiative

(“SBTi”) during FY21.

During FY23, the Group submitted its inaugural

disclosure to the Carbon Disclosure Project (“CDP”).

TCFD Pillar 1: climate governance (continued)

Disclosures (a) and (b) – Board oversight and management role (continued)

Environmental, social and governance

Moonpig Group plc | Annual Report and Accounts 2023

TCFD Pillar 2: climate strategy

Disclosure (a) – description of climate-related risks and opportunities

The Group has identified the following key climate-related risks and opportunities, which are further described on

pages 37 to 39:

Category Theme Risk or opportunity

Physical risks Acute and chronic physical risks Operational sites and distribution exposure to physical risks

Transition risks Price analysis and regulatory

changes

Carbon tax and pricing mechanisms in a Paris Agreement

Aligned scenario

The path to decarbonisation

Potential consumer preference changes in a Paris Agreement

Aligned scenario

Future failure of suppliers to decarbonise in a Paris

Agreement Aligned scenario

Transition opportunities Price analysis and regulatory

changes

Increased usage of renewable energy and on-site solar

generation

The path to decarbonisation

Decarbonisation of distribution

Lower carbon product portfolio, sustainable wood products

and packaging

Increased consumer demand for recycled content

Reforesting initiatives

The Group considers that the above risks are common to all the Group’s segments and principal geographies.

For operational risks, the Group considers impact over three years, which aligns to the Group’s viability statement period. However,

climate risks and opportunities may crystallise over a longer period, therefore our assessment of climate-related risks considers three

time horizons:

• Short term (up to 3 years) – climate-related risks which are identified as material within this time frame will additionally

be categorised as a principal risk, in line with our overall risk management process.

• Medium term (3 to 10 years) – climate-related risks which are identified as material during this time frame are monitored

and assessed.

• Long term (over 10 years) – the Group recognises that it must consider and address longer-terms risks as it formulates

business strategy.

When assessing climate-related risks and opportunities, the Group applies the “double materiality” approach recommended by the

Global Reporting Initiative. This recognises that the impacts of an organisation’s activities extend beyond its own operations and

financial performance, and that sustainability issues can have both external and internal materiality. Materiality is determined based

on the assessed potential impact (for each of the two temperature pathways) on both:

• Group financial performance – categorised as either High (>10% impact), Medium (>5% <=10% impact) or Low (<=5%) impact on

consolidated Adjusted EBITDA.

• Relevance to stakeholders – the risk classification is raised where management judgement determines a matter as having become

sufficiently important to stakeholders.

Strategic report Corporate governance Financial statements

Disclosure (b) – impact of climate-related risks and opportunities

Area Impact of the Group’s assessment of climate-related risks and opportunities

Revenue and costs • No material impact on revenue and costs associated with business operations.

• In the long term, in a transition scenario, there is a scenario in which changes in consumer preferences

might cause a reduction in demand for the Group’s product offering. The Group’s development of

digital gifting solutions following the acquisition of Experiences, represent potential mitigation in this

regard.

Products and services • The Group’s climate transition plan includes a work-stream for reducing energy consumption within

the Group’s in-house manufacturing and fulfilment operations, and for decarbonising the sourcing of

gifts and cards.

Value chain • The Group’s climate transition plan includes obtaining commitments from suppliers and delivery

service providers to reduce Scope 3 emissions.

Research and

development

• Management does not consider climate-risk when prioritising research and development on grounds

of materiality.

• The Group is working to develop solutions for digital gifting, leveraging the capabilities of the

Experiences segment. Whilst the reason for investing in this area is to capture customer demand, an

ancillary benefit of the development work will be the lower carbon emissions associated with digital

delivery of a gift.

Capital allocation • No current or anticipated implications for access to either debt or equity capital.

• No material impact on planned capital expenditure. As part of its existing programme of tangible

capital expenditure, management will consider opportunities for reductions in Scope 2 emissions, for

instance through installation of solar panels.

• No material impact on the Group’s approach to M&A. The acquisition of Experiences brings capability

in digital gifting (which reduces the Scope 3 emissions associated with physical delivery to a gift

recipient) however this did not form part of the acquisition rationale or business case.

Financial planning • In general, climate risk is not procedurally embedded into processes for strategic and financial

planning on grounds of materiality but is addressed through discussion at Board meetings.

• In April 2023 the Board approved a climate transition plan which is aimed at reducing GHG

emissions to address the long term, assessed medium impact market and technology risks in a Paris

Agreement Aligned (below 1.5°C) scenario, which envisage potential reputation impact from failure to

decarbonise the Group’s products and/or value chain.

Implications for

financial statements

• The Group has considered the impact of climate change in preparing the financial statements in the

Notes to the Consolidation Financial Statements on page 145.

• The nature of the Group’s business model and the low assessed materiality of climate-related risks

meant that there were no significant judgements and estimates relating to climate change in FY23.

• The Board considered the carrying amount of freehold land and buildings in Guernsey, which is

the Group’s site most exposed to physical risk. It was concluded that no impairment or accelerated

depreciation is required. This was not deemed to involve the exercise of significant judgement given

the low probability of impact.

Disclosure (c) – resilience under different climate scenarios

The Group analyses risks and opportunities using two climate scenarios:

• Scenario 1 – “Paris Agreement Aligned”: Under this transition scenario, there is sustained and coordinated collective action, with

emissions reductions meeting the required levels to keep global average temperature increases to below 1.5°C by 2100. There

is a lower likelihood of severe climate-change-related weather events, but potential impact from the climate change policies

implemented globally to align to the 1.5°C warming pathway.

• Scenario 2 – “Business as Usual”: Under this scenario, there is inadequate action to limit emissions and modelling reflects a world

where increasing concentrations of CO

put global average temperature increases on a trajectory towards 4°C by 2100. There is

no further climate policy intervention, but increased risk of physical impacts due to the severity and frequency of climate-change-

related weather events.

The Group has qualitatively assessed its resilience to key climate risks, as detailed on page 40. In both the short and medium term

these risks have a low impact whilst in the long term, they do not exceed a medium impact. Consequently, the Board considers that the

Group’s resilience to climate-related risks is high in both scenarios.

TCFD Pillar 2: climate strategy (continued)

Environmental, social and governance

Moonpig Group plc | Annual Report and Accounts 2023

This assessment relies on our evaluation of risk R2, which pertains to carbon taxation and pricing mechanisms in a Paris Agreement

Aligned scenario. By applying carbon price projections from the International Energy Agency’s World Energy Model, we have

estimated the financial impact of Scope 3 emissions to be approximately £34m per year by 2050, which initially indicates a “High” risk

rating. However, we believe it is improbable that governments would in practice enforce such substantial carbon taxes on a relatively

non-energy-intensive sector, considering the devastating consequences that this would have for the wider economy. Therefore, we

have exercised discretion to classify the risk as “Medium” for the long term.

The Group is not yet able to perform comprehensive, quantitative scenario analysis and we state on page 32 that this is an area

where disclosure is not yet consistent with the TCFD framework. This reflects transitional challenges in embedding the relevant

capabilities, given the complexity inherent in modelling such scenarios. We intend to explore this requirement further during FY24.

Primary climate-related opportunities

The Group’s primary climate-related opportunities are summarised below. The Group does not assess the potential revenue or profit

upside from climate opportunities to be material.

Opportunity Potential impact Next steps

Increased usage of

renewable energy;

on-site solar generation

The cost of energy from traditional

sources is expected to rise due to

the transition to a lower carbon

economy, causing a relative fall

in costs for renewable energy.

Shifting to 100% renewable energy

could enable the Group to take

advantage of cheaper power and

lower its Scope 2 emissions.

• In FY24, we plan to undertake energy audits at our sites to

identify areas where energy consumption can be reduced.

Decarbonisation

of distribution

The UK and EU are committing to

reduce emissions across forms of

transport leading to an increase

in adoption of electric vehicles.

This may provide an opportunity

for the Group to decarbonise its

distribution channels more easily.

• The Group intends to continue to work with its delivery partners,

especially those that do not have publicly available reduction

targets. We have set a near-term target to engage with

suppliers covering 67% of Scope 3 emissions by April 2030.

Lower carbon product

portfolio; sustainable

paper packaging

Changes in consumer habits might

provide opportunities to capitalise

on a growing market for sustainable

or zero-carbon gifting.

• We acted in FY22 to ensure substantially all card, envelopes

and packaging are from sustainable sources. This has

reduced the likelihood of deforestation in the supply chain and

associated emissions.

• The Group plans to continue its existing work on the

development of its digital gifting proposition, which has been

accelerated following the acquisition of Experiences.

Increased consumer

demand for recycled

content

In the Paris Agreement Aligned

scenario, greater demand for

circularity is expected. There may

be opportunities to take advantage

of this trend by improving the

prominence of labelling and

recycling instructions.

• The Group plans to continue engaging with suppliers to

increase the quality of labelling and recycling instruction on

products and investigate opportunities to increase the level of

recycled content in its products where possible.

• We are working to display Forest Stewardship Council “FSC”

and recycling logos on all cards.

Reforesting initiatives

By meeting its reforesting goal (see

page 29), the Group can improve

its reputation amongst consumers.

• The Group intends to plant a further 66 hectares of forest in

FY24.

Strategic report Corporate governance Financial statements

TCFD Pillar 2: climate strategy (continued)

Primary climate-related risks

TCFD category Risk Potential impact Potential mitigation Impact assessment

Physical (acute and

chronic)

Operational sites and distribution

exposure to physical risks

An increase in the frequency and severity of extreme weather

conditions could result in damage and/or interruption to

manufacturing and distribution facilities. Third-party analysis

suggests coastal inundation is likely the most significant hazard in

both scenarios.

The highest levels of exposure relate to the Group’s Guernsey

operations.

Levels of impact for the Group’s Dutch operations are low within

the time horizons considered by our assessment, owing to strong

coastal defences in the Netherlands.

Coastal inundation is a risk for the UK mainland; however, key

in-house and outsourced facilities are either located well inland

(Tamworth, Milton Keynes, Northampton) or in locations not

expected to be at risk of inundation prior to 2050 in a Business as

Usual scenario (Sleaford).

• The Group has significant flexibility in its production network,

which would enable it to mitigate business interruptions by

shifting production to unaffected sites. The Group temporarily

rerouted Guernsey volumes to different sites during periods

of 2020 and 2021 when lockdown restrictions imposed by the

States of Guernsey significantly limited production capacity at

the site.

• The Group will consider coastal flood risk when considering

future changes to the Group’s operational network, making

site-specific assessments at the appropriate time.

Short

term

Medium

term

Long

term

1.5°C Low Low Low

4.0°C Low Low Low

Policy and legal

Carbon tax and pricing

mechanisms in a Paris

Agreement Aligned scenario

Carbon taxation is assumed to be the primary lever by which

governments around the globe will incentivise decarbonisation.

Increases to carbon tariffs could lead to additional operational

costs, through direct carbon costs on Scope 1 and 2 emissions or

indirectly through increased input costs from suppliers (Scope 3).

Quantification of potential future liabilities for Scope 1 and 2

emissions show the financial impact to the Group is not expected

to be significant out to 2050 even if the Group fails to meet

decarbonisation goals (less than £2m EBITDA impact in a Business

as Usual scenario).

Applying carbon price projections from the International Energy

Agency’s World Energy Model, we have calculated the financial

impact of Scope 3 emissions to be approximately £34m per year

by 2050, which initially indicates a “High” risk rating. However,

we believe it is unlikely that governments could in practice impose

such significant carbon taxes on a comparatively non-energy-

intensive sector, as the repercussions of such a policy for the

broader economy could be devastating. As a result, we have

exercised discretion and classified the long term risk as “Medium”

in this case.

• Successful implementation of the Group’s Scope 1 and 2

emissions reduction goals would mitigate any increase in

direct carbon costs.

• The Group’s climate transition plan (pages 46 to 47) sets out

the areas of focus which management intends to pursue to

reduce Scope 3 emissions.

Short

term

Medium

term

Long

term

1.5°C Low Low Medium

4.0°C N/a N/a N/a

Market

Potential future consumer

preference changes in a Paris

Agreement Aligned scenario

Shifts in consumption habits are expected to be a prerequisite

for the transition to a lower-carbon economy and limiting global

warming to 1.5°C. In the Paris Agreement Aligned scenario, there is

a possibility that consumer preferences might change in future in

ways that could reduce demand for the Group’s product offering.

Given that pulpwood is a very small proportion of the Group’s

value chain, this would require continued high carbon emissions

in other services consumed by the Group, for instance postal

services. Should transition not be achieved in the relevant industry

sectors, then there may be an impact over the long term.

• Delivery of the Group’s climate transition plan (page 46), and

hence its decarbonisation targets, will drive a reduction in the

emissions intensity of its product offering.

• The Group will continue its existing work on the development

of its digital gifting proposition. Progress in this area has been

accelerated by the acquisition of Experiences.

Short

term

Medium

term

Long

term

1.5°C Low Low Medium

4.0°C N/a N/a N/a

Technology

Future failure of suppliers

to decarbonise in a Paris

Agreement Aligned scenario

A future failure of the Group’s suppliers to decarbonise at sufficient

speed and scale could impact the Group’s reputation with

consumers leading to a fall in demand in the long term.

Decarbonising the Group’s product offering in a 1.5°C scenario

will be dependent on efforts by third-party suppliers.

• The Group has proactively engaged with gift suppliers on

emissions, with two supplier workshops held to date. The

Group has dedicated resource to further activity in this area.

• The Group has set a target to obtain commitments from

suppliers in setting emissions reduction targets aligned with

SBTi criteria. The aim is for suppliers covering 67% of Scope 3

emissions to have such commitments in place by April 2030.

Short

term

Medium

term

Long

term

1.5°C Low Low Medium

4.0°C N/a N/a N/a

Note: the Group applies the “double materiality” approach recommended by the Global Reporting Initiative, in the first instance, RAG ratings are based on financial impact,

with each risk classified as either High (>10% impact on Group EBITDA), Medium (>5% <=10% impact on Group EBITDA) or Low (<=5% impact on Group EBITDA) within each

time horizon. The risk classification is raised where a matter is assessed as having become sufficiently important to stakeholders.