Slide 1: Investor & Analyst Presentation
INVESTOR & ANALYST PRESENTATION For the year ended 30 June 2014 Chief Executive Officer – Tim Power Chief Financial Officer - Jonathan Kenny
Slide 2: Important notice and disclaimer
Important notice and disclaimer (“Important Notice”) The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and results as at the time of preparation, [insert date]. Further details are provided in the Company’s full year accounts and results, announcement released
Slide 3: Agenda
Agenda 01 Overview 3 02 Financial Information and KPIs 6 03 Key Product Update 13 04 Recap and Outlook 17 05 Appendix - Additional Financial Information 19
Slide 4: 3P Learning Overview
3P Learning Overview • 3P Learning is a global online education company that offers cloud-based software-as-a- service products for schools and students in grades K-121 • At 3P Learning, our mission is to create a place where students, families and teachers can love learning. This passion translates
Slide 5: FY14 Performance vs Prospectus Forecast
FY14 Performance vs Prospectus Forecast • Revenue was $1.2 million or 3.3% ahead of prospectus forecast • EBITDA was 3.7% ahead of pro forma prospectus and 5.0% ahead on a statutory basis • NPBT was 5.2% ahead of pro forma prospectus and 10.5% ahead on a statutory basis • NPAT was 2.6% ahead of pro
Slide 6: FY14 Operational Highlights
FY14 Operational Highlights • Successful completion of IPO in July 2014 • Licence growth of 800,000 for FY14 (+21% yoy) • 32 product enhancement releases for last quarter reflecting continuous innovation • Over 1.1 million unique app downloads since launch • Launched Jenolan Caves with Australia Big
Slide 7: Financial Information and KPIs
Section 2 Financial Information and KPIs
Slide 8: Revenue by geography
Revenue FY14 revenue ahead of prospectus forecast in all categories. In ANZ copyright revenue was $0.8 million ahead and in EMEA licence revenue was $0.3 million ahead due to higher ARPU mix and America slightly ahead with additional licence sales in Q4. Revenue by geography Revenue split 30 June 20
Slide 9: Revenue by product
Revenue FY14 revenue ahead of prospectus forecast. In ANZ copyright revenue was $0.8 million ahead and in EMEA licence revenue was $0.3 million ahead due to higher ARPU mix. Revenue by product Revenue split as at 30 June 2014 50 45 43.8 Other 2.1 Spellodrome 6% 40 1.6 5% 36.5 35.3 Reading Eggs 6.1 3
Slide 10: Total Licences by geography
Licences Strong licence growth in FY14 of 800,000 (+21% growth yoy) Licence numbers in Americas ahead of forecast for Q4 with strong sales to school clusters. ANZ and EMEA licence sales behind prospectus forecast but well on track for FY15. Total Licences (000’s) – by geography Licences split as at
Slide 11: Total Licences by product
Licences Strong licence growth in FY14 of 800,000 (+21% growth yoy). Cross sell of Reading Eggs ahead of forecast. Total Licences (000’s) – by product Licences split as at 30 June 2014 6,000 5,301 5,000 4,665 4,722 339 294 342 949 3,863 Total Licences ('000s) 4,000 849 757 3,464 278 300 651 3,000 36
Slide 12: ARPU: Average revenue per licence
ARPU Average revenue per licence FY14A result reflected higher average revenue per licence compared to forecast due primarily to sales mix in EMEA and managed volume discounting Australian increases in ARPU are progressing as planned with no material or unexpected impact on renewals ARPU for FY14 al
Slide 13: Group Performance Overview
Group Performance Overview Pro forma EBITDA was $0.5 million above prospectus forecast for year ended 30 June 2014 Summary of actual vs forecast income statements Pro forma * Statutory $ million, June year end FY14A FY14F Var FY14A FY14F Var Total revenue 36.5 35.3 1.2 36.5 35.3 1.2 Employee expense
Slide 14: FY14 Actual to Forecast EBITDA Bridge
FY14 Actual to Forecast F14 EBITDA Bridge Pro forma EBITDA was $0.5 million above prospectus forecast for year ended 30 June 2014 EBITDA bridge 13.8 13.6 0.4 13.4 13.2 1.2 0.3 EBITDA ($m) 13.0 12.8 12.6 12.4 13.0 12.2 12.5 12.0 11.8 FY14F EBITDA Revenue growth Employee expenses Other expenses FY14A
Slide 15: Cash Flow
Cash Flow Cash Flow is ahead of forecast due to stronger working capital driven by improved debtor collections and higher Q4 sales. Cash flow conversion of 94%. Consolidated pro forma cash flow statements $million, June year end FY14A FY14F Var EBITDA 13.0 12.5 0.5 Non-cash expense 0.2 0.1 0.1 Chang
Slide 16: Key Product Updates
Section 3 Key Product Updates STRICTLY CONFIDENTIAL PAGE 15
Slide 17: New Product Updates/Releases (Mathletics)
New Product Updates/Releases (Mathletics) In June 2014, 3PL released a brand new live data reporting tool into Mathletics – for use by teachers and administrators. Since launch, this new tool alone has seen a significant early uplift in teacher login activity. • New automated diagnosis of strengths
Slide 18: New Product Updates/Releases (Mathletics)
New Product Updates/Releases (Mathletics) In July 2014, 3PL released another groundbreaking innovation into the Mathletics tablet app - the ability to access the resource fully offline. This is a world-first for a fully online resource - in particular one with the volume and complexity of student da
Slide 19: New Product Updates/Releases (IntoScience)
New Product Updates/Releases (IntoScience) In August 2014, 3PL released the world-first addition of the Jenolan Caves interactive exhibit within IntoScience. • An inch-perfect 3D digitial recreation of the Jenolan • Launched as part of 3PL’s “Australia’s Biggest School Caves within IntoScience. Excu
Slide 20: Recap and Outlook
Section 4 Recap and Outlook STRICTLY CONFIDENTIAL PAGE 19
Slide 21: Recap
Recap • Positive result compared with FY14 prospectus forecast • Continuing to build momentum in Americas • Forecast ARPU increases on track • Confirm FY15 prospectus forecast guidance STRICTLY CONFIDENTIAL PAGE 20