Iph Ltd. · ASX:IPH
Iph — Macquarie Australia Conference 2018
27 slides from Iph's conference presentation, May 1, 2018
Slide 1: ASX Announcement: Presentation to the Macquarie Australia Conference
ASX Announcement For personal use only 1 May 2018 Presentation by Andrew Blattman to the Macquarie Australia Conference Attached is a presentation to be given today by IPH’s CEO & Managing Director, Andrew Blattman, to the Macquarie Australia Conference 2018. For more information, please contact: Dr
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 1 May 2018 Dr. Andrew Blattman | Managing Director / CEO, IPH Limited John Wadley | Chief Financial Officer, IPH Limited
Slide 3: Disclaimer
Disclaimer For personal use only This document has been prepared by IPH Limited (IPH) and No representation, warranty or assurance (express or implied) is comprises written materials/slides for a presentation concerning IPH. given or made by IPH that the forward looking statements contained in this
Slide 4: Agenda
Agenda For personal use only 1. Company Snapshot 2. Industry Overview 3. IPH Position 4. IPH Growth Strategy 3
Slide 5: Company Snapshot
For personal use only COMPANY SNAPSHOT
Slide 6: Summary: Asia-Pacific's leading intellectual property group
Summary Asia-Pacific’s leading intellectual property group For personal use only IPH Limited (“IPH”) is the holding company for intellectual Key facts property (“IP”) and associated companies, Spruson & Ferguson (incorporating Fisher Adams Kelly Callinans » Exchange: ASX and Cullens), AJ Park, Piz
Slide 7: IPH – first listed IP group in Australia
IPH – first listed IP group in Australia Innovative leader For personal use only The changes to the Australian Patent Act introduced in April 2013 enabled patent and trademark attorney firms to practice through a corporate structure. Demonstrating innovation and leadership across the sector IPH
Slide 8: Industry Overview
For personal use only INDUSTRY OVERVIEW
Slide 9: What is IP?
What is IP? 80% of IPH’s service charges are derived from services related to patents For personal use only Types of IP Types of IP services Patents (80% of service charges) Drafting & Filing A monopoly right that is granted for a Preparation and filing application with the device, substance, method
Slide 10: Patent lifecycle
Patent lifecycle Long-life IP cycle supports consistent revenues and earnings For personal use only Each year more than half* of the total patent applications filed in Australia come through the PCT system in the form of PCT National Phase patent applications. Typical (indicative) patent application
Slide 11: Business of patent and trademark attorneys
Business of patent and trademark attorneys Annuity-style business with consistent revenues and earnings For personal use only Core business: prosecution of IP rights before the relevant National IP Office (not to be confused with the legal or any other profession) IP services are typically provide
Slide 12: Patent market trends
Patent market trends Asian growth engine For personal use only Australian Patent Filings* Asian Patent Filings (excl. China)** FY96 - FY17 CY10 - CY16 CAGR = 2.5% 40,000 70000 CAGR = 5.1% 35,000 60000 30,000 50000 25,000 20,000 40000 15,000 30000 10,000 20000 5,000 10000 0 0 FY96 FY97 FY98 FY99 FY00
Slide 13: Industry growth drivers
Industry growth drivers Positive industry fundamentals supporting growth For personal use only IP is often fundamental to the operations and value Key Lead Indicator of many of the world’s leading companies. PCT (Patent Cooperation Treaty) applications filed IPH believes IP protection is becomin
Slide 14: IPH Position
For personal use only IPH POSITION
Slide 15: Timeline of key milestones
Timeline of key milestones 130-year history in Australia and 21 years in Asia For personal use only 2 Nov 2015 9 Apr 2018 1 Feb 2016 8 Mar 2016 31 May 2016 Merge of Fisher Pizzeys open SF open office in SF open office in Merger of Cullens, Adams Kelly & office in Singapore Indonesia Thailand FAKC an
Slide 16: Unique Asian Positioning
Unique Asian Positioning Strong scaleable platform to service multiple jurisdictions For personal use only Service Charges split – Australia vs Asia (FY17) IPH’s presence in Asia-Pacific 36% 64% Australian IP Asian IP Well positioned to grow through offering existing 17 offices in 7 countries. c
Slide 17: People development and career progression
People development and career progression New model drives career development opportunities For personal use only The listing of IPH on ASX in Nov 2014 created opportunities for career progression and professional development for staff. Since listing, 28 principals have been appointed, and there
Slide 18: Leading market position
Leading market position No.1 patent market position in Australia, New Zealand and Singapore IPH Group combined market share in Australia (HY18)* IPH Group market share in Singapore (CY17)** For personal use only 30% 30% 24% 25% 24% 24% 23% 22% 22% 20% 20% 15% 10% 10% 0% 0% FY15 FY16 FY17 HY18 CY14 C
Slide 19: Financial performance history
Financial performance history Mix of organic and acquisitive growth For personal use only Underlying Revenue $'m Underlying EBITDA $'m Australia IP Asia IP Australia IP Asia IP 186.0 Data & Analytics Serv Corp & Interco 157.5 71.6 65.0 109.9 94.2 42.5 30.0 FY14 * FY15 * FY16 FY17 FY14 FY15 FY16 FY17
Slide 20: Strong Balance Sheet and Cash Conversion
Strong Balance Sheet and Cash Conversion Consolidated Balance Sheet Cash Flow Statement For personal use only Balance Sheet Balance Sheet HY18 HY17 as at 31 Dec 2017 as at 30 Jun 2017 Cash Flow Cash Flow $'m Statement Statement Cash and cash equivalents 18.3 24.4 $'m Trade and other receivables 47.1
Slide 21: IPH Strategy
For personal use only IPH STRATEGY
Slide 22: IPH Growth Strategy
IPH Growth Strategy To become the leading IP group in secondary IP markets For personal use only Continue to maintain the leading position in Australia, New Zealand and Singapore. IPH’s addressable market in Asia-Pacific* (patent applications filed annually in each jurisdiction) Expand market sh
Slide 23: Summary
Summary IPH well positioned to harness positive industry dynamics for future growth opportunities For personal use only IP sector dynamics remain positive – IP has long life cycle supporting long term revenue and earnings. – Industry growth drivers support stable growth in Australia with significa
Slide 24: Appendices
For personal use only APPENDICIES
Slide 25: FX Sensitivity
FX Sensitivity Earnings Currency Sensitivity Balance Sheet Sensitivity For personal use only The Group is also exposed to FX on the level of its USD Based on the USD profile in HY18, a 1c movement in the denominated cash and receivables in the balance sheet, AUD/USD exchange rate equates to appr
Slide 26: Escrow Information
Escrow Information For personal use only Ordinary Shares on Issue1 Number Holders % Free float 188,941,809 12,659 95% Escrowed, incl. 9,021,573 52 5% - Pizzeys (31 Aug 18) 1,229,545 22 - Cullens (30 Jun 18) 2,042,905 10 - Cullens (31 Aug 18) 390,315 - SF HK (31 Oct 18) 737,261 2 - AJ Park (31 Oct 19
Slide 27: America Invents Act (AIA) Overview
America Invents Act (AIA) Overview For personal use only The Leahy-Smith America Invents Act (AIA) was signed on 16 September 2011 introducing a number of significant reforms to US patent law. Some of the most significant provisions of AIA went into effect on 16 March 2013, including those conve