Moonpig Group plc Annual Report and Accounts 2024

Annual Report and Accounts 2024

Revenue and profit growth

underpinned by technology

and innovation

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

14 Business model in action

15 Market overview

16 Our strategy

18 Key drivers of growth

20 Section 172 statement and

stakeholder engagement

23 Sustainability

48 Key performance indicators

50 Chief Financial Officer’s review

60 Risk management

67 Viability statement

68 Non-financial and sustainability

information statement

Corporate governance

70 Board of Directors

74 Chair’s corporate governance

introduction

75 Governance framework

76 Corporate governance statement

86 Audit Committee report

96 Nomination Committee report

102 Directors’ remuneration report

118 Directors’ report

121 Statement of Directors’

responsibilities

Financial statements

122 Independent auditors’ report

130 Consolidated income statement

130 Consolidated statement of

comprehensive income

131 Consolidated balance sheet

132 Consolidated statement of changes

in equity

133 Consolidated cash flow statement

134 Notes to the consolidated financial

statements

168 Company balance sheet

169 Company statement of changes

in equity

170 Notes to the Company financial

statements

174 Alternative Performance Measures

176 Glossary

178 Shareholder information

Welcome to Moonpig Group.

We are the online

market leader for

cards and gifting.

At heart we are a technology

platform, but our customers

know us as the leading online

destination for greeting cards,

gifts and flowers.

Corporate governance Financial statementsStrategic report

FY23 FY24 FY23 FY24

Operational highlights

• Moonpig Plus subscriptions passed half a

million members and Greetz Plus launched.

• Database of customer occasion reminders

grown to 90 million (April 2023: 84 million).

• Our creativity features were used over 10 million

times to add video and audio messages,

“sticker” images, digital gift vouchers and

AI-driven customised messages to the inside

ofgreeting cards.

• App penetration of orders at Greetz increased

to 33% as at April 2024.

• Launch of AI semantic search capability,

delivering more relevant and accurate

searchresults.

• Upgrade to our recommendation algorithms to

incorporate customer-level data including gift

price preferences.

• A tailored online journey for every user,

including personalised homepage banners

and personalised promotions.

• Increase in automated customer service

resolutions through AI chatbot deployment.

• Targeted testing underway to identify profitable

ways to scale marketing activity in new

geographical markets. Total revenue in Ireland,

Australia and the US grew by 34.3% to £8.7m

(FY23: £6.5m).

• Same-day digital gifting launched on Moonpig,

combining gift experiences with e-cards.

• Re-platforming of Red Letter Days and Buyagift

is on track with new gallery and landing

pageslaunched.

1 Adjusted EBIT, Adjusted PBT and Adjusted Basic EPS are Alternative

Performance Measures, definitions of which are set out on pages 176 to 177.

2 The Group has amended its definition of Adjusting Items such that

amortisation of intangible assets arising on business combinations

(acquisition amortisation) is now treated as an Adjusting Item. As a result,

current and prior year Alternative Performance Measures are stated

excluding acquisition amortisation of £8.3m (FY23: £7.5m).

Revenue (£m)

Year-on-year growth: 6.6%

Reported PBT (£m)

Year-on-year growth: 32.9%

Reported Basic EPS (p)

Year-on-year growth: 27.3%

Adjusted EBIT

1,2

(£m)

Year-on-year growth: 13.2%

Adjusted PBT

1,2

(£m)

Year-on-year growth: 5.0%

Adjusted Basic EPS

1,2

(p)

Year-on-year growth: (3.1)%

To find out more visit us at:

www.moonpig.group/investors

Financial highlights

FY23

£34.9m

7.8p

13.1p

£55.4m

£320.1m £69.0m

FY24

FY23 FY23 FY24FY24

FY23 FY24

£46.4m

10.0p

12.7p

£58.2m

£341.1m £78.1m

Moonpig Group plc | Annual Report and Accounts 2024

At a glance

The leading data and

technology platform for online

greeting cards and gifting in

the UK and the Netherlands.

We operate through four online brands.

United Kingdom

82%

Netherlands

15%

The UK and the Netherlands are our current core markets.

Proportion of revenue by country % of FY24 Group revenue

FY23: 81% FY23: 17% FY23: 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 our customers’

giftingneeds.

Greetz was founded in

2004 as the Netherlands’

first online greeting

cardservice.

Since then it has evolved

into the leading online

choice for our Dutch

customers’ card and

gifting needs.

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 offers customers

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.

Corporate governance Financial statementsStrategic report

Our strategy is to become the ultimate gifting companion.

We have a broad and balanced customer demographic.

% total users split by age group in FY24

FY23

: 44% FY23

: 56%

% total users split by gender in FY24

FY23

: 40% FY23

: 38% FY23

: 22%

35 – 55

36%

55+

24%

Under 35

40%

Male

41%

Female

59%

Gifting share of revenue

50%

FY23

: 51%

££

Cards and gifts sold

48.8m

FY23

: 49.0m

We use data and technology to create loyal customer relationships.

242

April 2023

: 250

Skilled data scientists,

analysts and engineers

10m

FY23: N/a

Card creative

feature usage

90m

April 2023: 84m

Moonpig and Greetz

customer reminders set

1 FY23 stated for the Group (including Experiences since acquisition on 13 July 2022).

2 As at 30 April 2024. Moonpig and Greetz only.

3 Our creativity features were used over 10 million times to add video and audio messages, “sticker” images, digital gift vouchers and AI-driven customised

messages to the inside of greeting cards. Not applicable for prior year as the features are newly introduced.

Orders

33.9m

FY23: 33.8m

Moonpig Group plc | Annual Report and Accounts 2024

Chair’s statement

Overview

The past year has been characterised by strengthening in trading

performance with positive and improving revenue growth across

H1 and H2, combined with order volumes moving into growth in

the second half of the year. This trajectory of improvement has

been driven by the Group’s continued focus on technology and

is underpinned by a resilient, profitable and cash generative

business model that uses data to drive customer loyalty.

The majority of the Group’s technology team are now focused

on innovation, which has driven an acceleration of the pace

at which new features are deployed. The Group has delivered

functionality to encourage customers to place orders more

frequently, including the Moonpig Plus and Greetz Plus

subscription memberships, together with card creativity features

such as video and audio messages and AI-driven customised

messages. The Group has continued to tailor how it personalises

recommendations to customers, including more sophisticated

gifting recommendation algorithms and the implementation of

a tailored online journey for every user, including personalised

homepage banners and personalised promotions.

Alongside innovation on the core platform, the Group is

developing a pipeline of initiatives that the Board expects will

drive medium-term growth. Revenue from Moonpig’s websites

outside the UK and the Netherlands increased year-on-year by

34.3% to £8.7m (FY23: £6.5m). The Group is now able to acquire

customers profitably in Ireland and, with the Board’s support,

management is carrying out targeted testing to identify profitable

ways to scale customer acquisition in Australia. Management

is also testing the prototype Moonpig for Work solution for SME

business-to-employee greeting cards andgifting.

Technology re-platforming of the Experience Division websites

continues at pace with a full rebuild of the front end now complete.

Our new integration with a premium dining partner has unlocked

access to a range of gourmet restaurants in London. We have also

launched same-day gifting capability on Moonpig by combining

e-cards with Red Letter Days and Buyagift gift experiences, with

encouraging early traction across peak event days so far.

FY24 performance

The Group delivered revenue of £341.1m in FY24, representing

year-on-year growth of 6.6%. On a pro forma basis (as if

Experiences had been owned throughout FY23) full year revenue

growth was 4.5%, strengthening to 6.6% in the second half of

the year.

Growth was underpinned by trading at Moonpig, where revenue

increased by 8.2% in FY24 with a trajectory of improvement across

the twelve months. In the second half of the year, revenue from

both new and existing customers was in year-on-year growth.

Performance throughout FY24 was strong given a challenging

macroeconomic context in which the wider UK online non-food

market declined year-on-year in every month of FY24

. Technology

innovation has enabled the Moonpig brand to outperform its

competitors and continue capturing UK online market share

The revenue trajectory at Greetz continued to improve, with

year-on-year revenue declines abating to 5.3% in H2 FY24 from

9.8% in H1 FY24 and 20.4% in FY23. Migrating Greetz onto our

unified technology platform in late 2022 prioritised a card-first

online customer journey, impacting headline revenue growth

due to the foregoing of non-core standalone gifting revenue. The

resulting card-first business is now positioned for growth in FY25.

Furthermore, organisational changes have been made such that

Greetz can better leverage Group capabilities in areas such as

marketing and card design and there has been a strong focus on

new technology features such as video and audio messages and

Greetz Plus subscription membership.

Moonpig Group delivered growth in revenue and profit in

FY24, driven by continued focus on technology and data.

1 Source: KPMG-BRC Retail Sales Monitor.

2 Source: OC&C, June 2024.

Corporate governance Financial statementsStrategic report

The Board was pleased that the Group’s focus on technology

innovation delivered a return to volume growth in the second

half of the year. Across Moonpig and Greetz, year-on-year orders

growth improved from a decrease of 5.1% in H1 to an increase

of 5.2% in H2 FY24. This more than compensated for the impact

from moving past the full annualisation of card pricing changes

implemented in 2022.

Trading at Experiences has been resilient, increasing by 1.5%

year-on-year on a pro forma basis. The management team

continues to make good progress with strategic delivery,

including the new technology platforming forRed Letter Days

and Buyagift and launch on the Moonpig platform of same-day

digital delivery of gift experiences with an e-card.

The Group has remained focused on profitability, delivering

Adjusted EBITDA of £95.5m (FY23: £84.2m) and an Adjusted

EBITDA margin rate of 28.0% (FY23: 26.3%). Adjusted profit

before tax increased by 5.0% to £58.2m (FY23: £55.4m). This

includes the full-year benefits of insourcing UK fulfilment in FY23.

The Group remains strongly cash generative, with operating cash

inflows of £74.2m (FY23: £56.2m) delivering a reduction in net

leverage to 1.31x (April 2023: 1.99x). The Group has also agreed

a new four-year committed revolving credit facility of £180m,

improving the efficiency and flexibility of our bank borrowings.

Employees

The dedication and hard work of the Group’s people in the

Netherlands, Guernsey and the UK has enabled it to deliver

the return to revenue growth in FY24. On behalf of the Board,

Iwould like to thank all employees for their contribution during

the year.

Sustainability

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

with people who they care about. The Board is pleased with the

Group’s progress against its sustainability goals during FY24.

In particular, the Group has made strong progress against

its target to obtain commitments from suppliers to set net

zero emissions reduction targets aligned with SBTi criteria

representing 67% of Scope 3 emissions by 30 April 2030. At the

end of the financial year, the Group had obtained supplier

commitments covering 19.3% of Scope 3 emissions, compared to

9.7% at 30 April 2023.

The Moonpig Group Foundation has continued to support

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 in FY24 included the

Campaign Against Living Miserably in the UK, the Guernsey Society

for Cancer Relief and Stichting Jarige Job in the Netherlands.

Customer net promoter score continues to be affected by the

delivery performance of the postal service providers in the UK

and the Netherlands. Management has a clear strategy to

address this, focused on leveraging the Group’s database of

reminders to encourage earlier ordering and delivery, improving

how the Group communicates estimated delivery dates,

providing more options for tracked delivery andexpanding our

range of digital delivery options.

Board and governance

The Group maintained full compliance with the UK Corporate

Governance Code in FY24, as detailed in the Corporate

governance statement on pages 76 to 85.

The Board has been briefed on the UK Corporate Governance

Code 2024, which will apply to the Group from FY26 generally

and from FY27 for Provision 29, which concerns the Company’s

internal control framework. Work has commenced to facilitate

compliance from the effective dates.

The Board continues to meet the requirement that at least half

itsmembers (excluding the Chair) are Independent Non-

Executive Directors.

During the year, the Group completed its first externally-

facilitated evaluation of the Board and its Committees. The

results were discussed at our March 2024 Board meeting,

together with progress against actions from previous years’

evaluations. Theseare summarised in the Corporate governance

statement on page 83.

Directorate change

Simon Davidson resigned as Nominee Director in April

2024, following Exponent Private Equity LLP’s reduction in its

shareholding below the 10% threshold at which it had a right

to nominate a director to the Board. On behalf of the Board,

Iwould like to thank Simon for the significant contribution that

he has made to Moonpig Group across the last eight years.

Hisinsight and expertise have been of great value to the Board.

Diversity

As at 30 April 2024 and at the date of this report, the Board

has 43% female representation, and therefore meets the Listing

Rule target for at least 40% of individuals on the Board to be

women. We also meet the 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 an ethnic minority background (as the Board currently has

two ethnic minority directors).

During the year, the Board considered the new Parker Review

requirements to improve the ethnic diversity of FTSE 350 senior

management teams and approved an updated Board Diversity

Policy which includes a voluntary target for 15% representation

ofethnic minorities in the Extended Leadership Team by 2027.

The Board remains committed to the FTSE Women Leaders

Review target of at least 40% female representation on the

Extended Leadership Team. Current female representation

at thislevel is 41%. The Group is ranked 32nd in the FTSE 250

for women on boards and in leadership by the FTSE Women

Leaders Review2023.

Audit tender

During the year the Audit Committee carried out a formal tender

of the external audit for the year ending 30 April 2026. Based

on the recommendations of the Audit Committee, the Board

selected PricewaterhouseCoopers LLP. The tender process and

selection criteria are set out in the Audit Committee report on

pages 86to95.

Looking ahead

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

and is confident that the business will deliver long-term value

for shareholders. 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

26 June 2024

Moonpig Group plc | Annual Report and Accounts 2024

Chief Executive Officer’s review

Overview

FY24 has been a period of strong financial and strategic

delivery, with activity focused in the following key areas:

• Innovation on our unified technology platform, which drove a

strengthening in revenue growth to 6.6% in the second half

of the year. Our product, data and technology teams have

significantly increased the velocity of delivery for customer-

facing growth initiatives. These include Moonpig Plus and

Greetz Plus subscriptions, card creativity features (such as

audio and video messages, group cards, digital delivery of

gift experiences) and AI technologies that leverage data on

previous customer purchase behaviour toenhance gifting

recommendation algorithms.

• Continued execution of the transformation project at

Experiences, including phased migration to a new

technology platform and the launch of a new visual identity

for both brands to support differentiated market positioning.

• Developing our pipeline of initiatives intended to drive

medium-term growth, including marketing investment in

Ireland, targeted testing to identify profitable ways to scale

customer acquisition in Australia and the US, and testing of

our prototype Moonpig for Work solution for SME business to

employee gifting.

Moonpig Group has maintained its investment in technology,

marketing and operations through the economic cycle due to the

resilience, profitability and cash generation of our business:

• 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 revenue and 89% of revenue at these

brands was generated from existing customers (FY23: 89%).

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. More generally,

the greeting cards market has a long track record of

recession-resilience.

• Adjusted EBITDA margin rate increased to 28.0%

(FY23: 26.3%) through a combination of gross margin

rate improvement and disciplined control of indirect costs.

Our low-inventory strategy means that profit margins are

not exposed to significant stock-related risks.

• Our business is highly cash generative. We improved the

ratio of net debt to Adjusted EBITDA to 1.31x at 30 April 2024,

from 1.99x at 30 April 2023.

We delivered a return to revenue growth, underpinned

by acceleration in technology innovation.

Corporate governance Financial statementsStrategic report

Leveraging data and technology

Last year, we completed a multi-year project to unite Moonpig

and Greetz onto a single technology platform. This freed

most of our technology teams to focus on innovation and

experimentation, driving an acceleration of the pace at which

we deploy new features.

We have further enhanced our use of AI to personalise

customerexperience:

• Significant upgrade to our algorithms by incorporating

individual customer level data into our gift recommendation

engine, unlocking the ability to show different price ranges to

different customer cohorts.

• Introduced personalisation elements into all parts of the

journey, including homepage banners and promotions

unique to the individual customer.

• Enhanced the capabilities of our AI-powered Customer

Service chatbot, driving a significant reduction in the number

of customer contacts being handled by agents.

• Launched AI semantic search capability, using large

language models to better understand and interpret

customer search terms, which will drive increasingly more

relevant search results over time.

We are leveraging technology to drive higher customer

lifetime value:

• Moonpig Plus subscriptions passed the milestone of half

amillion members, with continued strong sign-up rates and

promising renewal rates for the first cohort who joined in

June2023.

• Greetz Plus launched in January 2024 and is following a

similar encouraging trajectory to the UK.

• Our creativity features were used over 10 million times,

allowing customers to add video and audio messages,

“sticker” images, digital gift vouchers and AI-driven

customised messages to greeting cards.

We are building deeper network effects:

• We have deployed features that enable online interaction

with recipients (such as video messages and digital gifts)

and message contributors (group cards), increasing the

potential to convert them into new customers.

• Moonpig for Work is live in beta version for several customers

ahead of planned launch in FY25. This solution is initially

targeted at SME business-to-employee card giving and

gifting around events such as birthdays, workanniversaries

and Christmas.

We are investing in technology at Experiences, and upgrading

how we cross-sell gift experiences to Moonpig customers:

• We have launched same-day gifting capability on Moonpig

by combining e-cards with digital gift experiences, with

encouraging early traction across peak event days so far.

• Technology re-platforming of the Red Letter Days and

Buyagift websites continues at pace with a full rebuild of the

front end now complete.

• We completed an integration with a premium dining partner

unlocking access to restaurants inLondon such as Harvey

Nichols, Benihana, Colonel Saab, Corrigan’s Mayfair

andHarrods.

Building our brands

Our strategy remains focused on delivering revenue growth

through our existing customer base and we grew Moonpig and

Greetz revenue from existing customers by 5.9% to £261.3m

(FY23: £246.8m). Our key areas of focus remain:

• Continuously improving how we leverage our database

of 90million customer occasion reminders (April 2023:

84million) to communicate with customers. Reminders

represent a powerful ecosystem, enabling us to engage with

customers at moments of high card-giving intent, and drive

asignificant proportion of Moonpig and Greetz revenue.

• Encouraging customer sign-up to Moonpig Plus and Greetz

Plus, as well as migrating Greetz customers to the app that

we launched in FY23. Greetz app penetration increased

during the year to 33% (April 2023: 22%).

• Raising customer awareness of differentiated card creativity

options that we believe will drive customer loyalty and

increase lifetime value. By showcasing innovative features

such as video and audio messages, we emphasise that our

offering is superior to the online and offline competition.

This message is delivered through our website real estate,

social media and video on demand. Initiatives include the

“With Greetz you give more than a card” campaign in the

Netherlands and new creative advertising copy for Moonpig,

which we plan to launch across all channels including TV in

the UK in FY25.

We were pleased that revenue from newly acquired customers

moved back into year-on-year growth at Moonpig in H2 FY24,

whilst the behaviour of cohorts acquired in the past year

remained consistent with historical cohorts. Our brands are

powerful assets, built over several decades, with high levels of

consumer awareness and a strong association with convenience,

service and range. Across FY24 we have maintained significant

investment in marketing in the UK and the Netherlands, in line

with prior year levels. We continue to acquire loyal customer

cohorts that deliver lifetime value rather than pursuing short-

term, transactional revenue.

We want to build a pipeline of early-stage revenue expansion

initiatives and have increased our activity in new geographical

markets. Revenue from Moonpig websites in Ireland, Australia

and the US grew by 34.3% to £8.7 million (FY23: £6.5 million).

Wesuccessfully increased new customer acquisition in Ireland

and are conducting tests to identify scalable marketing strategies

in Australia and the US. Additionally, we are enhancing the

customer proposition by introducing localised card design

ranges, expanding the gifting range (through physical gifts in

Ireland and Australia and retail gift vouchers in the US) and

building partnerships with local gifting providers. Where we gain

confidence in customer lifetime value in any of these markets,

wewould look to further scale our marketing investment.

At Experiences, we have continued 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 is more value-led. A new, fresh visual identity has been

rolled-out at each brand. We have also increased marketing

investment during the key pre-Christmas trading period,

supplementing the optimisation of performance marketing with

new brand marketing activity focused around online video and

social media to build awareness and purchase consideration.

Moonpig Group plc | Annual Report and Accounts 2024

Chief Executive Officer’s review continued

Evolving our range

Our customers love well-known brands that provide

reassurance that the gift will delight the recipient. As part

of our ongoing programme to onboard “trusted brands” at

Moonpig, we expanded our partnership with Virgin Wines

to cover personalised still and sparkling wine and launched

Hotel Chocolat in February 2024, which instantly became one

of ourmost popular gifting options. Similarly, at Greetz we are

likewise strengthening our roster of trusted brands, for instance

through the recent launch of Lindt chocolate.

We have established a unified global team responsible for

all designs on greeting cards and personalised gifts. This

team continues to negotiate with global licensors to bring

internationally recognised properties to Greetz that already

feature on Moonpig. Given the popularity of “sticker” images that

customers can use to personalise the inside of greeting cards

on Moonpig and Greetz, we have also expanded our range of

sticker designs to include images from franchises such as Disney

Princess, Marvel, Star Wars and Harry Potter.

In FY24, our Experiences division onboarded “hero” brands such

as Champneys Health Spa and W Hotels. With Moonpig scaling

sales of gift experiences as both physically printed codes in cards

and instantly delivered digital attachments to e-cards, we are

now focused on expanding our range of mid-priced experiences

in categories such as casual dining that resonate well with

Moonpig customers.

In the current trading environment, we have also focused on

operational process efficiency and the delivery of improvements

in gross margin. We delivered an increase in Group gross margin

rate to 59.4% (FY23: 56.1%), the reduction in inventories to £7.1m

(April 2023: £12.3m) and an extension in the Greetz cut-off time

for same-day dispatch to 11pm for all cards, gifts andflowers.

Maintaining high ethical, environmental

andsustainability standards

We continue to execute against our sustainability strategy,

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

the environment, its people and its communities. In particular,

the Group has made strong progress against its target to obtain

commitments from suppliers to set net zero emissions reduction

targets aligned with SBTi criteria, representing 67% of Scope 3

emissions by 30 April 2030. At the end of the financial year, the

Group had obtained supplier commitments covering 19.3% of

Scope 3 emissions, compared to 9.7% at 30 April 2023.

A key area of focus remains customer net promoter score, which

has been impacted by the delivery performance of postal service

providers in the UK and the Netherlands. To address this, we

have implemented a clear strategy focused on:

• Encouraging earlier ordering and delivery, including sending

the first reminder message to customers 14 days before

eachoccasion.

• Improving how we communicate estimated delivery dates.

Our new “date first” user experience flows at the checkout

on our website and apps clearly inform customers about

the possibility of scheduling their orders for cards and gifts

inadvance.

• Providing more options for tracked delivery. We have

collaborated with Royal Mail to introduce a tracked delivery

service at an attractive consumer price. This service,

available during peak demand periods such as Christmas,

Valentine’s Day, and Mother’s Day, allows customers to send

greeting cards even after the cut-off for first-class letter post.

• Expanding our digital offering to include e-cards with same-

date digital delivery of a gift experience, leveraging the

range of Red Letter Days and Buyagift.

We are passionate about diversity in the technology sector. As at

30 April 2024, the combined representation of women and ethnic

minorities on our extended leadership team stands at 49% (April

2023: 52%). Female representation at this level is 41%, exceeding

the 40% target set by the FTSE Women Leaders Review Target.

We were proud to be ranked 32nd in the FTSE 250 for women

onboards and in leadership by the FTSE Women Leaders

Review2023.

Nickyl Raithatha

Chief Executive Officer

26 June 2024

Corporate governance Financial statementsStrategic report

Moonpig Plus

andGreetz Plus

At the end of May 2023, we introduced Moonpig

Plus subscriptions. This scheme offers a package

of benefits including discounts on greeting

card purchases in return for an annual fee,

incentivising and rewarding increased usage.

The response has been positive, with over half

a million customers becoming members so far.

Building on this success, we launched Greetz

Plus in January 2024, which has resulted in

customer order frequency increases similar

to those seen with MoonpigPlus.

Looking ahead, we will continue to refine

and enhance the scheme, adding benefits

and features to encourage higher subscription

uptake and increase order frequency.

Personalised

audio messages

As part of our strategy to differentiate the inside

of our cards from competitors, we introduced

a unique feature in FY23 that allows customers

to add custom video messages to any Moonpig

or Greetz greeting card. Building on this, we

launched audio messages across both brands

in October 2023.

Customers can choose their favourite card

design and upload a personalised video or

audio message. We then print the card with

a QR code linked to this media. The recipient

can easily access and enjoy the personalised

message by scanning the QR code with

theirsmartphone.

Both innovations have proven popular.

By 30 April 2024, over 500,000 audio and

video messages had been sent, helping

our customers to connect meaningfully

with those they care about.

Moonpig Group plc | Annual Report and Accounts 2024

Moonpig Group is a leading international gifting platform with

a rich history of innovation and growth. 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 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 trading on

the London Stock Exchange’s Main Market for listed securities.

In July 2022, the Group completed the acquisition of Experiences,

which operates the Red Letter Days and Buyagift brands. The

acquisition was closely aligned to 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 greeting cards and gifting. This has involved several large

foundational projects, including the migration of Greetz onto our

unified technology platform and the opening of new, state-of-

the-art operational facilities in the UK andtheNetherlands.

Since completing these foundational projects, the Group’s

technology, data and product teams have focused on growth

initiatives and product innovations, such as AI-generated ‘smart

text’ greeting card messages, the ability to add personalised

video and audio messages to cards and the ability to send group

cards containing messages from multiple contributors.

Features launched in the last twelve months include Moonpig

Plus and Greetz Plus membership subscriptions, same-day

digital capability on Moonpig by combining gift experiences with

e-cards, a range of physical gifts in Australia and retail gift cards

in the US. In addition, our B2B product Moonpig for Work is live

in beta version for several customers ahead of planned launch

in FY25.

Innovator of personalised cards

The leading online card and gift shop

Transformation into a technology and data platform

Transition to innovation and growth initiatives

Our journey

We have transformed our

business into a technology

and data platform for gifting.

2004

Greetz was founded in

the Netherlands

2007

Moonpig introduced gifts

2000

Moonpig, the first

online greeting cards

business, was founded

2010

Greetz introduced flowers

2021

Moonpig Group

floated on the

London Stock Exchange

2018

Moonpig Group

acquired Greetz

2023

Moonpig introduced digital

gifting in greeting cards

Moonpig launched its subscription

membership service, Moonpig Plus

Moonpig and Greetz launched

innovative new card features,

including:

• Video and audio messages

• Expanded library of

‘‘sticker” images

and enhanced

photo options

• Group cards

• ‘Smart text’ AI

functionality to help

customers create

personalised messages

Corporate governance Financial statementsStrategic report

2022

March

Moonpig launched in Ireland

July

Moonpig Group acquired Experiences

(Red Letter Days and Buyagift)

September

• Greetz completed its migration

onto the unified technology platform

• Moonpig Group opened operational

facilities in the UK and the Netherlands

• Greetz launched new iOS and

Android apps

2024

• Greetz launched its membership

subscription service, Greetz Plus

• Moonpig introduced same-day digital

gifting with an e-card

• Moonpig launched a physical gift

range in Australia and retail gift

cards in the US

Following our IPO

Moonpig Group plc | Annual Report and Accounts 2024

1 Source: OC&C, June 2024. Based on Moonpig’s relative UK market share.

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 90m reminders as at

30 April 2024.

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

At Moonpig and Greetz, our data-driven growth

flywheel drives customer retention and lifetime value.

Business model

Corporate governance Financial statementsStrategic report

At Experiences, our strategy is to drive growth by focusing

on the conversion of recipients into future customers.

Quality and

breadth

of range

Shopper

experience

Flexibility

and choice

Recipient

experience

Extensive range 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

geographical 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 can leverage

Moonpig’s proprietary

dataset on customer gifting

intent. This journey is

underway with an offering

of over 300 digital gifts

on Moonpig.com as at

30April2024.

Moonpig Group plc | Annual Report and Accounts 2024

Business model in action

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 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.

• Moonpig has extended the online redemption touchpoint

to recipients through digital gift experiences 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 72%

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.

Our platform is a data-driven gifting

recommendation engine.

1 Source: OC&C, December 2020.

Corporate governance Financial statementsStrategic report

Market overview

1 Source: OC&C, June 2024.

2 Of the £58bn total gifting market, £34bn is standalone gifts, £22bn is gifts attached to a card and £2bn is greeting cards.

3 UK total cards market of £1.6bn in 2023 comprises £1.4bn single greeting cards and £0.2bn boxed card sets.

4 Addressable market stated excluding gifting in cash. In the UK this is estimated by OC&C at £10bn, suggesting a total gifting market in the UK of £50bn

including gifting in cash.

The overall gifting market is large and underpenetrated.

Total addressable market size – UK, Ireland and the Netherlands

1, 2

UK gift experience market size 2023

Data-driven insight into

customers’ intent

Competitive advantage

in attached-gifting

Untapped non-attached

gifting opportunity

Cards

£2bn

Sales through

experience gifting

aggregators

£270m

Card-attached gifting

£24bn

Experience gifting market

£7bn

Total gifting

£58bn

Total UK gifting spend

£40bn

Ireland NL UK

£0.1bn £0.3bn £1.6bn

£3bn £15bn £40bn

£1bn £4bn £19bn

Moonpig Group plc | Annual Report and Accounts 2024

Our strategy

Our strategy is to become the

ultimate gifting companion.

What this means

What we have done

We aim to ensure that customers are 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.

• Marketing campaigns at both Moonpig and Greetz

have showcased the creative personalisation features

such as video messages, which make our cards more

meaningful to the recipient.

• We launched Moonpig Plus subscription membership

for UK customers in May 2023, followed by Greetz

Plus in January 2024, to promote existing customer

purchase frequency and retention.

• We have grown our database of customer occasion

reminders across Moonpig and Greetz from 84m at

April 2023 to 90m at April 2024.

• We are testing our prototype Moonpig for Work

solution for SME business-to-employee greeting cards

and gifting ahead of intended full launch in FY25.

• At Experiences we have continued to differentiate

the Red Letter Days and Buyagift brands, so that

the former emphasises iconic experiences and a

more curated range, whilst the latter is more value-

led. Anew visual identity has been rolled-out at

eachbrand.

Building

our brands

Strategic focus

What this means

What we have done

We aim to use technology to harness our

extensive and unique dataset on customers’

gifting behaviour, generating highly relevant,

personalised gifting recommendations.

Our algorithms are optimised across 301m cumulative

transactions as at April 2024 (April 2023: 266m)¹.

Asleaders in the online segment of the greeting card

market, Moonpig captures approximately six times

and

Greetz captures over three times

more customer data

daily compared to our closest competitors.

• We have continued to roll out innovative card features.

Last year’s launch of video messages has been

followed by the introduction of audio messages, a

broader range of “sticker” images that can be added to

the inside of each card and introducing AI-generated

‘smart text’.

• We continue to use AI to personalise recommendations

to customers. For instance, our gift recommendations

now use customer-level data (in addition to the data

from personalisation of greeting cards).

• On Moonpig and Greetz we have implemented

a significant improvement in on-site search

functionality through the deployment of AI semantic

searchtechnology.

• We have implemented social sign-in through Google

and Apple for Moonpig and Greetz.

• We have implemented changes to increase customer

confidence around delivery including a new “delivery

date first” checkout user experience, improved address

validation and improved order tracking.

• At Experiences, we are re-platforming the shopper

website to enhance site speed, improve on-site search

results and boost search engine optimisation (“SEO”).

The new platform will also enable the deployment of

new functionalities, such as the additional payment

options introduced this year.

Leveraging

data and

technology

Strategic focus

Corporate governance Financial statementsStrategic report

What this means

What we have done

We strive to offer the perfect card and gift

for every relationship and occasion.

To achieve this, we continuously improve our range for

cards, physical gifts and gift experiences. As we refine our

algorithms 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 adapt our greeting card

range for international markets, for instance rolling

out licensed properties at Greetz, introducing ‘mom’

cards for the US and strengthening our range of Holy

Communion and Confirmation cards in Ireland.

• In the UK, we have continued to build our range of

trusted brands that give consumers confidence in

the gifting proposition, including the launch of Hotel

Chocolat and the extension of our partnership with

Virgin Wines to cover sparkling wines.

• We have launched our first range of physical gifts in

Ireland and in Australia.

• We launched a range of digital retail gift cards, which

can be added to physical greeting cards in the US

and to e-cards in the UK.

• At Experiences, we have focused on acquiring

premium partners such as Champneys Health Spa

and W Hotels, and launched a restaurant booking

integration that has strengthened our gourmet

restaurant offering.

Evolving

our range

Strategic focus

1 Cumulative transactions as of April 2024. All-time for Moonpig, from

1 September 2018 (post-acquisition) to April 2024 for Greetz and from

13 July 2022 (post-acquisition) to April 2024 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.

Transforming

the inside of our

greeting cards

Having set a market-leading standard for the outside

of greeting cards, we have focused in the last year on

transforming the customer and recipient experience

relating to the inside of each card.

In FY24, our innovative card creativity features including

video and audio messages, “sticker” images for the

inside of cards, emojis, flexible photographs, code-in-a-

card digital gifting and AI-driven customised messages

were used over 10 million times.

Creative features are a key component of our strategy

toincrease purchase frequency. Our card editor offers

a market-leading user experience and enables

customers to create feature-rich greeting cards that

delight recipients. By innovating new personalisation

features, we aim to deepen customer engagement and

enhance the overall appeal of Moonpig and Greetz

greeting cards.

Moonpig Group plc | Annual Report and Accounts 2024

Key drivers of growth

A compelling growth

opportunity with clear,

compounding growth drivers.

Moonpig and Greetz

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

• Maintaining and growing brand awareness, highlighting

the creative features that differentiate our greeting cards.

• Always-on marketing to acquire customers in the UK,

Ireland and the Netherlands.

• Ongoing, focused marketing tests in Australia and the US

to identify the most efficient strategies for acquiring new

customers in these regions.

• Improving the recipient experience to amplify network

effects, increasing the propensity of recipients to become

future customers.

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.

• Continuing to grow our database of occasion reminders.

• Developing the Moonpig Plus and Greetz Plus

subscription memberships.

• Increasing iOS and Android app penetration at Greetz.

• Ongoing testing of our prototype Moonpig for Work

solution for SME business-to-employee greeting cards

and gifting.

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

• Ongoing programme of improvements in user experience

and personalised gift recommendations.

• Continuing to onboard more of the trusted consumer

brands that resonate with our customers and recipients.

• Driving growth in digital gifting, for instance e-cards plus

gift experiences in the UK.

• Extending our range of physical gifts in Ireland and

Australia and expanding sales of third-party retail gift

vouchers in the US.

Enabler

Technology

and data

platform

What this means

Moonpig and Greetz have scalable, custom-

built technology and proprietary algorithms

optimised across millions of data points.

As we capture more data on gifting intent,

we are able to offer increasingly relevant

gifting recommendations to customers, in turn

drivingrevenue.

Future priorities

• The majority of our technology resource is now

focused on revenue growth initiatives, either

through developing new and innovative features or

optimisation of our algorithms and user experience.

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.

Corporate governance Financial statementsStrategic report

Experiences

Growth drivers

Customer

acquisition

What this means

The UK gift experiences segment of the

market is estimated at £7 billion

and 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

• Further strengthening and differentiating the Red Letter

Days and Buyagift brands.

• Optimisation of performance marketing capabilities.

• Improving site speed through technology re-platforming,

which should improve SEO and increase the percentage

of website traffic that converts into orders.

• Emphasising complete flexibility to exchange, giving

peace of mind to the giver.

Recipient-

to-customer

conversion

What this means

We want to capture recipient data consent

during the online redemption journey to

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 process.

Future priorities

• Continuing to expand our experiences range to ensure

we have the broadest and best offering.

• Expanding the proportion of the range that can be

booked directly online, so that redemption is on the

Red Letter Days and Buyagift platforms.

• Adding new opportunities for upsell at the point

ofredemption.

Leveraging

synergy with

Moonpig

What this means

We are using 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 on

the Moonpig website and apps.

• Driving Moonpig customer awareness of digital gifting

options, including same-day digital delivery of gift

experiences with an e-card and gift experiences printed

inside physical greeting cards.

• Strengthening the Experiences product range in those

categories and price-points that appeal most to

Moonpig customers.

Enabler

Technology

and data

platform

What this means

We are part-way through transforming

Experiences from a transactional online

retailer into a technology-first business.

Future priorities

• We will complete the roll-out of a new technology

platform for the shopper websites, increasing site

speed and hence SEO and conversion rate.

• Implementing a new data platform to facilitate business

decision making based on data and analytics.

• On the redemption websites, we will continue to

integrate with experience providers so that more

experiences are redeemed on our platform.

1 Source: OC&C, June 2024.

Moonpig Group plc | Annual Report and Accounts 2024

Section 172 statement and stakeholder engagement

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 FY24 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 70 to 121 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 differentiates

the Group from its

competitors.

At Experiences we

focus on the conversion

of recipients into

futurecustomers.

• 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

• Wide geographical

choice of location for gift

experiences and peace

of mind that the recipient

has flexibility of choice

• 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 features such as audio messages

anddigital gifts within greeting cards before rolling them out to

allcustomers.

• The Group aims to achieve a customer Net Promoter Score (“NPS”) 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 continue to improve the Experiences technology platform to enable

a better and more personalised online customer experience.

• We offer a range of delivery options to suit customers’ timescales.

• We are committed to prioritising technology security and data protection

as explained on page 66.

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

focus on accelerating

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

• Wide geographical

choice of location 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 invests 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, and now offer the

ability for card customers to add digital gifts from our Red Letter Days

and Buyagift ranges.

• 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.

Corporate governance Financial statementsStrategic report

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, an annual all-employee strategy conference, and an annual

strategy showcase, all 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 networks and affinity groups,

which provide supportive forums for under-represented employee

groups. See page 42.

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

wellbeing of all employees.

• We engaged with the Dutch Works Council ahead of organisational

changes at Greetz and the planned relocation of the Amsterdam office

to Almere.

• The Board engages with employees both through a 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. Refer to page 78.

• The Group provides an independent whistleblowing service to

encourage employees to raise relevant concerns anonymously and/or

confidentially. This service is communicated proactively to employees

and annual training on whistleblowing is provided to all employees.

During FY24, one whistleblowing report was raised (FY23: none). The

report was made directly to the Company Secretary who investigated

the allegations thoroughly and confidentially, with oversight from

the Audit Committee Chair. No evidence was found to support the

allegations. The outcome was reported to the Board.

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sustainability

strategy delivery

• We maintain open communication with investors through disclosures in

the Annual Report, investor presentations and trading updates. These

are 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 79.

• All Directors attended the Annual General Meeting held on

19September2023.

• Proactive shareholder engagement is carried out by the Non-Executive

Directors whenever the Board or its Committees identify matters arising

that merit discussion with shareholders. See page 79 of the Corporate

governance statement.

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

investor relations activity and equity research reports.

• At IPO, a Relationship Agreement was put in place to ensure that

the Company was capable at all times of carrying on its business

independently of Exponent, its former controlling shareholder. On 25

April2024, Exponent ceased to be a substantial shareholder of the

Company, the Relationship Agreement accordingly ceased to have

effect and the Nominee Director appointed by Exponent resigned.

Moonpig Group plc | Annual Report and Accounts 2024

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.

• 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 and GHG emissions.

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

outlining expectations for ethical conduct, environmental sustainability

and social responsibility.

• We collaborate with key outsourcing partners to raise

operationalperformance.

• 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 to set net zero targets from

suppliers representing 67% of Scope 3 emissions by April 2030 and in

FY24 we commenced a related programme of supplier engagement.

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.

Ourcharitable donations in FY24 are summarised on page 25.

• 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 operational facilities in the UK and the Netherlands 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% (FY23: 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 FY24, the Group planted 66 hectares of woodland in partnership with

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

• The Group has set a target to reduce Scope 3 emissions by 97% tCO

Revenue by 2050 versus FY22.

• The Board monitors the Group’s progress against our 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 continued

Corporate governance Financial statementsStrategic report

Sustainability

The Group’s sustainability

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 who care about each other and through its support

for charities. We have built on these foundations through

ongoing delivery against the Group’s sustainability strategy.

Our sustainability strategy commits the Group to eight

long-term goals focused on the environment, its people

anditscommunities.

Sustainability goals

See pages 23 to 25

Environment (including TCFD)

See pages 26 to 41

People

See pages 42 to 43

Communities

See pages 44 to 45

SASB Standards

See pages 46 to 47

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

Moonpig Group plc | Annual Report and Accounts 2024

Delivery against the Group’s sustainability goals in FY24

Goal Progress to date Next steps for FY25

Goal 1 – Deliver net zero direct

emissions by 2050.

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, validated by the

SBTi; (b) reduce operational emissions

by at least 90% by 2050; and (c) offset

any emissions that cannot be reduced.

Reduction targets are expressed

relative to total emissions of 677tCO

in the baseline year of FY20

1,2

In FY24, the Group’s total Scope 1 and 2 emissions were

535tCO

, (FY23: 540tCO

) representing a reduction of

21% from FY20 baseline

emissions of 677tCO

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.

The reduction in emissions was driven by the full-year

impact of the FY23 opening of 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.

During FY24 we conducted energy audits to understand

potential actions to reduce operational emissions.

We have offset Scope 1 and 2 emissions from the previous

year by investing through Climate Impact Partners, which

obtains independent verification from a recognised

accreditation body for each project that it works with.

Solar panels are to be fitted

at our Netherlands facility

in FY25 under a lease

agreement recently put

inplace with the landlord.

We will implement the

findings of the recently

completed energy audits.

We will consolidate our

Dutch footprint by relocating

head office functions from

Amsterdam to our facility

inAlmere.

We will continue to procure

renewable energy for our

offices and operational

facilities, exploring

decentralised options such

as solar panels. Wewill

also prioritise energy

efficiency enhancements

and investigate strategies

to reduce natural

gasconsumption.

Goal 2 – Deliver net zero value chain

emissions by 2050.

The Group aims to deliver Net Zero

value chain emissions by 2050:

• Obtain commitments from suppliers

to set net zero emissions reduction

targets aligned with SBTi criteria

representing 67% of Scope 3

emissions by 30 April 2030.

• Reduce Scope 3 emissions

intensity by 97% tCO

e/£1m of

revenue

by 2050, using FY22 as

the baselineyear, offsetting any

emissions which cannot be reduced.

We have re-expressed Scope 3 emissions intensity for the

baseline year of FY22

from 433tCO

e/£1m of gross profit

to 233tCO

e/£1m of revenue

. Absolute baseline Scope 3

emissions remain unchanged at 80,928tCO

In FY24, we reduced emissions by 60tCO

e from our

baseline. Revenue intensity remained broadly consistent

between FY22 and FY24, offsetting the reduction in

absolute emissions is the £39m Covid-related revenue

boost in FY22. Emissions by category and measurement

methodologies are set out at pages 35 to 41.

As at 30 April 2024, we had obtained commitments from

suppliers representing 19.3% of Scope 3 emissions to set net

zero emissions reduction targets aligned with SBTi criteria.

The GHG emissions disclosure on pages 35 to 36 includes

details of our Scope 3 categories, our organisational and

operational boundaries and the methodologies we use to

measure value chain emissions.

The Group intends to

continue to work with its

delivery partners, focusing

in FY25 on those that do

not have publicly disclosed

reduction targets.

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 FY24, we achieved 66% cumulative delivery against

this five-year goal (FY23: 46%). In partnership with Tree-

Nation, we planted 66 hectares of woodland, comprising

103,000 trees (FY23: 99,000), in addition to any emissions

offsetting conducted within Goal 1.

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. 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 FY25.

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, which includes FY22 Experiences emissions.

2 Scope 2 emissions are calculated using the “location-based” method. For comparatives using the “market-based” method, see page 35.

3 The emissions target has been re-expressed as the Group has decided to align its intensity reporting metric with the Corporate Sustainability Reporting Directive

and therefore is presented its intensity targets as a function of revenue. In FY23 the target was expressed as a reduction of 97% tCO

e/£1m gross profit.

4 The FY23 Scope 1 emissions have been increased by 9tCO

e compared to the FY23 ARA to correctly reflect the measurement of gas consumption in kWh.

Sustainability continued

Corporate governance Financial statementsStrategic report

Goal Progress to date Next steps for FY25

Goal 4 – Maintain the combined

representation of women and ethnic

minorities on the Leadership Team

at around 50%.

The Group wants to be representative

of its customers and the communities

in which it operates.

As at 30 April 2024, the combined representation of women

and ethnic minorities on the Leadership Team

was 49%

(April 2023: 52%).

Across the Group, 50% of individuals newly appointed into

Leadership Team

roles were female (FY23: 42%).

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.

The Group’s average engagement score across two

surveys was 61%, in-line with the prior year

(61%) but

below our long-term goal (72%). The results reflect

the continued challenges of operating in an economic

downturn, characterised by more disciplined cost control

and greater pressure to meet targets.

Management has focused during the year on increasing

employees’ understanding of the Group’s strategy and

it was particularly pleasing that the April 2024 score for

“Iunderstand the long-term strategic direction for Moonpig

Group” improved from 62% to 81%.

Our action plan for FY25

employee engagement is

built around raising the

proportion of employees

who agree with the survey

statement “I feel proud to

work for this company.”

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 FY24 the Moonpig Group Foundation made

charitable donations totalling £176,000 (FY23: £211,000).

As at 30 April 2024 the Foundation has cumulatively

donated £620,000 (30 April 2024: £444,000) to third-party

charities since being set up in FY21.

The Group also made charitable donations on its own

account totalling £436,000; £304,000 to the Foundation

and £132,000 direct to charities (FY23: £70,000, all to

theFoundation).

Employees in each of our

locations have chosen a

cause to support in FY25.

The chosen charities are

Campaign Against Living

Miserably (UK), The Willow

Foundation, The Ivy Trust

(Guernsey) and Stichting

Jarige Job(Netherlands).

Goal 7 – Maintain the level of new

hires into technical roles

at around

45% women.

To deliver the Group’s strategy, we

need to hire highly skilled technology

workers from all areas of society.

In FY24 40% of new hires into technical roles were female

(FY23: 45%). As at 30 April 2024, 33% of employees in

these teams are female (FY23: 34%).

We have confidence in our ability to increase these KPIs.

Our current performance remains favourable compared

to the wider market, which we attribute to having built

excellent relationships with gender diversity organisations

such as SheCanCode and Women In Tech.

During the year, we have continued to develop our

mentoring and experiences programmes with them.

There are opportunities to

more closely align recruitment

processes at Experiences

with recruitment processes

already operated at Moonpig

andGreetz.

We will continue our

partnership with Cajigo,

atechnology platform

focused on mentoring

womenin technology.

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.

For FY24, the Group’s weighted average customer NPS

score was 57 (FY23

: 60). The reduction in customer NPS

from 71 in FY22 is driven by issues with postal delivery and

primarily reflects the impact of poor delivery performance

by the postal services in both the UK and theNetherlands.

Our FY25 plans focus on:

(1) leveraging our database

of reminders to encourage

earlier ordering and delivery.

(2) UX improvements

in relation to how we

communicate estimated

delivery dates; (3) providing

more options for tracked

letterdelivery.

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

2 Employee engagement score and customer NPS for FY23 is stated for Moonpig and Greetz only. For FY24 we have extended measurement to Experiences,

hence figures are stated for the Group.

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

Sustainability continued

Moonpig Group plc | Annual Report and Accounts 2024

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

In FY24, the proportion of sustainably sourced paper, card and packaging across all our brands was 100% (FY23: 100%) in the UK

andthe Netherlands and 98% (FY23: 98%) globally. In addition, all cards, envelopes and packaging procured by Moonpig and

Greetz in the UK and Netherlands are reusable, recyclable or compostable.

The Group is committed to phasing out single-use plastic packaging through our own operations and throughout its value chain.

Single-use plastics have been completely removed from the Group’s operations in the UK during FY24 and we intend to completely

remove them from our operations in the Netherlands in FY25. The Group also has a packaging waste management programme in

place. At Experiences, all experience gift cards are made of compressed paper rather than plastic.

Statement of the extent of consistency with the TCFD framework

The Group’s disclosure is based on the requirements of “Recommendations of the Task Force on Climate-related Financial Disclosures”

published in June 2017 and “Implementing the Recommendations of the TCFD” published in June 2021 by the TCFD. To ensure clear and

concise disclosure of the progress made during the past year, only material changes are set out in this report. The Group’s full sustainability

disclosure, including relating to climate is set out in the Sustainability Report, which can be accessed at www.moonpig.group/investors.

Additionally, the Group has ensured compliance with the Companies Act 414CB and has indicated in the below table which of the climate-

related disclosures, outlined in Section 414CB, are addressed by the TCFD recommended disclosures.

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 TCFD 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 26 to 41:

TCFD pillar TCFD recommended disclosure Status CA 414CB

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 page 28. (a)

b) Describe management’s role in

assessing and managing climate-

related risks and opportunities.

Management’s role is described at page 28. (a)

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 29 to 33.

(d)

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30.

(e)

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 ensure full consistency

with this requirement within the next three years.

Refer to page 30.

(f)

Corporate governance Financial statementsStrategic report

TCFD pillar TCFD recommended disclosure Status CA 414CB

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34.

(b)

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 34.

(b)

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 34 and

summary of the Group’s risk management process

at pages 60 to 66.

(c)

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 on page 35. One TCFD cross-industry

metric category (internal carbon prices) is not

disclosed, however this is because the Group

does not use internal carbon prices due to its low

carbonfootprint.

(h)

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 FY24 and FY23 is set out on page

36 to 37.

(h)

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 37 to 41.

(g)

Disclosure level:

Full consistency Partial consistency Omitted disclosure

Voluntary assurance over TCFD disclosures

The Group has not obtained voluntary assurance over any area of FY24 TCFD reporting.

Sustainability continued

Moonpig Group plc | Annual Report and Accounts 2024

Stakeholder engagement

We took significant steps in FY23 to strengthen and formalise our sustainability governance framework. We have focused

inthe last twelve months on embedding this, whilst engaging with external stakeholders.

Several independent agencies rate our sustainability performance throughout the year including MSCI, Sustainalytics and

ISS ESG, and we engage on a regular basis to ensure the accuracy of their monitoring.

We also participate voluntarily in the Carbon Disclosure Project (“CDP”), a not-for-profit charity that runs a global disclosure

system for investors, companies, states and public authorities. Our engagement with the CDP involves disclosure of our

carbon emissions data and climate-related strategies allowing investors, stakeholders and the public to assess our

environmental impact and efforts to mitigate climate change. Through the disclosure process, we gather insights into our

environmental impact and identify areas for improvement. We were pleased to see our CDP score for 2023 improve year-on-

year from D to B, which is the third highest of the eight CDP scoring bands.

Sustainability risk management

In FY24, the Group incorporated the review of sustainability risks into its risk management framework, producing its first

sustainability risk register, which was approved by the Board in March 2024. The principal sustainability risks are set out

inthe Sustainability Report on the Group’s corporate website.

This followed an exercise, led by the Group’s Sustainability Working Group, to identify potential risks relating to climate

change, nature, human capital, human rights, circular economy, materials sourcing and value chain, technology security

and data protection and water and marine resources.

This work is part of the Group’s work for the expected UK Government endorsement of IFRS S1 and S2, the first two IFRS

Sustainability Disclosure Standards issued by the International Sustainability Standards Board.

Alignment of incentives

The Board considers that the inclusion of climate-related measures in leadership remuneration is important for ensuring

alignment of interests. The Remuneration Committee has applied a phased approach, starting with the introduction of

sustainability measures for the annual bonus in FY22, initially for the Executive Directors and Executive Committee members.

In FY23, the Group introduced a sustainability measure relating to climate change, based on the renewable energy mix at

the Group’s two new fulfilment centres. Recognising that most of our carbon footprint relates to value chain emissions, this

was accompanied by a gateway requirement to measure the Group’s Scope 3 GHG emissions and set a reduction target.

For FY24 and FY25, we have expanded this approach such that all members of the Executive Committee and Extended

Leadership Team have a bonus measure that aligns with the Group’s Sustainability Goal 2. This goal is to obtain

commitments from suppliers to set net zero emissions reduction targets aligned with SBTi criteria.

TCFD Pillar 1: climate governance

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

The Group has governance arrangements in place relating to the assessment and management of climate-related risks and

opportunities that are based on the TCFD’s all-sector guidance. These are set out in full in the FY23 Annual Report and Accounts

andin the Group’s FY24 Sustainability Report, which can be accessed at www.moonpig.group/investors.

During FY24, the Board continued its oversight of the Group’s climate-related risks and opportunities. Three key focus areas were

the Group’s sustainability governance framework, the expansion of focus from climate-related risks and opportunities to incorporate

sustainability-related risks and opportunities and the alignment of incentives for the Extended Leadership team to that of the Executive

Committee with respect to climate-related measures.

The environment continued

Corporate governance Financial statementsStrategic report

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 unchanged from prior year and further

described on pages 31 to 33:

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%), Medium (>5% <=10%) 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.

Whilst the Group has assessed each risk in relation to the above defined impact, the Group considers a risk to be material if it has

either a high impact on Adjusted EBITDA or is judged to have a sufficiently important impact to our stakeholders. This definition of

material differs from that used within our financial reporting as we have deemed a material financial impact to the business, in this

scenario, to be aligned to our risk management criteria and thus would be deemed a principal risk if it met this threshold.

Moonpig Group plc | Annual Report and Accounts 2024

TCFD Pillar 2: climate strategy continued

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

The Group’s assessment of the impact of climate-related risks and opportunities is based on the TCFD’s all-sector guidance. During the

current financial year, there has been no material change to this assessment. It is disclosed in full in the Group’s FY23 Annual Report

and Accounts and in the FY24 Sustainability Report, which can be accessed at www.moonpig.group/investors.

Implications for financial statements

The Group has considered the impact of climate-related risks and opportunities in preparing the financial statements in the Notes

to the consolidated financial statements on page 134. 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 FY24.

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 of accelerated depreciation is required. This was not deemed to involve the exercise

of significant judgement given the low probability of impact.

As the Group’s Scope 3 emissions make up 99.3% of its carbon footprint, the Group’s focus is on obtaining commitments from suppliers

to set emissions reduction targets aligned with SBTi criteria (in line with the Group’s Sustainability Goal 2). It therefore does not expect

to deploy material capital expenditure on the delivery of Scope 1 and 2 emissions reductions.

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 32. 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.

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 the latest 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 £30m 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 26 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 are committed to ensuring compliance with this requirement within the

next three years.

Sustainability continued

The environment continued

Corporate governance Financial statementsStrategic report

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.

• Solar panels are to be fitted at our Netherlands

facility in FY25 under a lease agreement recently

put in place with the landlord.

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.

• We have set a goal to obtain commitments from

suppliers to set net zero targets covering 67% of

Scope 3 emissions by April 2030, and increased

coverage from 9.7% to 19.3% during FY24. Our

main distribution partners across the UK, NL,

Ireland and Australia have SBTi commitments.

• The Group intends to continue to work with its

delivery partners focusing in FY25 on those that

donot have publicly disclosed reduction targets.

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.

• Our card, envelopes and packaging are 98%

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 accelerated following the acquisition of

Experiences in FY23.

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 display FSC recycling logos on all our cards

sold in the UK and the Netherlands. We are now

working to implement the same for cards ordered

and printed in other geographies.

Reforesting initiatives By meeting its reforesting goal (see page 24),

the Group can improve its reputation

amongstconsumers.

• The Group intends to fund the planting of a further

66 hectares of forest in FY25.

Moonpig Group plc | Annual Report and Accounts 2024

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,

Droitwich, 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 Adjusted 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 £30m 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 39 to 41) 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 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 (pages 39 to 41), 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, leveraging the launch of e-cards with digital gift experiences

duringFY24.

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 set a goal to obtain commitments from suppliers to set net zero

emissions reduction targets aligned with SBTi criteria representing 67% of Scope 3

emissions by 30 April 2030.

• The Group engages proactively with suppliers and as at 30 April 2024 had

obtained commitments from suppliers covering 19.3% of Scope 3 emissions

(April2023: 9.7%).

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 Adjusted EBITDA), Medium (>5% <=10% impact on Group Adjusted EBITDA)

or Low (<=5% impact on Group Adjusted EBITDA) within each time horizon. The risk classification is raised where a matter is assessed as having become