Slide 1: Conference Presentations and Trading Update
Tel: +61 2 9019 2800 Fax: +61 2 8214 5869 ABN: 50 103 827 836 ASX ANNOUNCEMENT (ASX: 3PL) 12th November 2015 Conference Presentations and Trading Update Conference Presentations CEO Tim Power and CFO Jonathan Kenny will be presenting at investor conferences in Sydney on 12th November and 17th Novemb
Slide 2: Conference Presentation
Conference Presentation November 2015 Tim Power – Chief Executive Officer | Jonathan Kenny – Chief Financial Officer
Slide 3: Agenda
Agenda 01 FY15 Recap 3 02 Who we are 5 03 Americas Market Opportunity & Strategy 9 04 Learnosity Investment 16 05 Trading Update 20 06 Appendix 22 Conference Presentation 2
Slide 4: FY15 Recap
FY15 Recap Conference Presentation 3
Slide 5: 2015 Highlights
2015 Highlights FY15 Results ahead of prospectus forecast • Revenue of $44.8 million (vs prospectus $43.8 million), up 23% pcp • EBITDA of $16.9 million (vs prospectus $16.4 million), up 30% pcp • NPAT of $10.8 million (vs prospectus $9.7 million), up 28% pcp • EPS of 8.1 cents, up from 6.3c or 28%
Slide 6: Who we are
Who we are Conference Presentation 5
Slide 7: 3P Learning snapshot
3P Learning snapshot organically grown 10X revenue over in 8 Years 17,000 A community of schools Global team of 300 across the world educators, 5.3 million engineers, product designers and students A Powerful other personnel aligned with Partnership with based in 11 over 40 UNICEF that has countries
Slide 8: Geographic expansion
Geographic expansion 3P has a strong presence in Australia, New Zealand and the United Kingdom with growing operations in the United States, Canada, Hong Kong, South Africa and Middle East Middle East Geographic expansion Hong Kong3 Canada South Africa2 United States1 United Kingdom New Zealand Aust
Slide 9: Product suite
Product suite 3P has a broad product suite encompassing maths, literacy and science subject areas Key products Description Year launched FY15 licences FY15 revenue (A$m) Numeracy — Online numeracy product for school grades K-12 2004 ~3.8m 32.9 — Includes content for 40 curricula around the world — R
Slide 10: Americas Market Opportunity & Strategy
Americas Market Opportunity & Strategy Conference Presentation 9
Slide 11: Americas Market Overview
Americas Market Overview Significant market opportunity K-12 Students across OECD Countries 50 K-12 student enrolments (m) 45 40 35 30 Districts 15K 345 25 20 15 10 5 - Schools 115K 12K Japan Poland Portugal Greece Czech Republic Finland Norway Korea Sweden Mexico Germany Hungary Switzerland New Zea
Slide 12: Districts Overview – 15K Districts
Districts Overview – 15K Districts 55% of all students in 1% of school districts = 22% of all public school 10% of districts students Public enrolment by district size (millions) 100 Largest US Public School Districts 30 Millions of Students 25 20 15 10 5 0 4K smallest 5K small 3K medium 1K large di
Slide 13: Schools Overview – 115K Schools
Schools Overview – 115K Schools 13% CATHOLIC 81% PUBLIC 6% 6K PRIVATE 94K 15K 50% of total Schools in 10 States 48% Public 51% Private Grade 1% Catholic 1 CA 11% Breakdown 3PL 2 TX 8% Focus 3 NY 6% areas 4 IL 5% 90% Public 6% Private 5 FL 4% 4% Catholic 6 OH 4% 81% Public 7 PA 4% 11% Private 8 MI 4%
Slide 14: Americas Growth Strategy
Americas Growth Strategy Targeting Districts with a personalised approach District websites Printed success reports State-based branded visuals Conference Presentation 13
Slide 15: Americas Growth Strategy
Americas Growth Strategy FY14 FY15 FY16 Offices 1 office in New York 1 office in New York Expanding New York 1 office in Calgary 1 office in Calgary Expanding Calgary Establishing California Employees 22 41 62 Districts 25 74 Targeting over 200 districts Licenses 662K 931K Targeting strong growth Ke
Slide 16: Americas Results
Americas Results Investment in the market is driving results Investment in Americas headcount Increase in Operating costs $m Increase in Licenses (000s) Increase in Revenue & Billings $m 9 1000 Revenue 6 Invoiced billings 800 6 4 600 2 400 3 22 41 200 0 0 FY15 FY11 FY12 FY13 FY14 FY15 0 FY11 FY12
Slide 17: Learnosity Investment
Learnosity Investment
Slide 18: Who is Learnosity
Who is Cloud based tools that provide the foundations of any assessment product (by doing the heavy lifting) so clients can focus on their core product, content and user journeys Highly Scalable Fast, reliable performance for students when you need it. Successfully delivering millions of tests an ho
Slide 19: Who is Learnosity
Who is • Powers the assessment layer for: o Primary and secondary (K-12) o Higher Education o LMSs o Testing Companies o Test Preparation o Corporate Learning • Blue chip customers with long term contracts http://www.learnosity.com/partners • FY16 revenue expected to exceed US$9m o Contracted future
Slide 20: Why did we invest rather than license?
Why did we invest rather than license ? Synergy benefits for 3PL Stand-alone value upside for Learnosity • Deep integration of products • Growing global demand for online assessment • Integrated future technology roadmap • Leading global assessment platform • Attractive commercial rates • Allows cus
Slide 21: Trading Update
Trading Update
Slide 22: Trading Update
Trading Update • Group revenue is up 20% in FY16 year to date compared with the same period a year ago • 3P will continue to invest in sales personnel and infrastructure, particularly in Americas. • Overall margins are expected to remain relatively steady due to ongoing investment and impact of fore
Slide 23: Appendix
a Appendix
Slide 24: Revenue by Geography
Revenue by Geography Revenue growth of 23% with ANZ growing at 22% and Americas at 35%. Revenue split by geography A$ million FY11 FY12 FY13 FY14 FY15A FY15F FY2015 FY2014 Growth ANZ 19.6 22.2 24.2 24.6 30.1 28.9 30.1 24.6 22% EMEA 3.1 4.5 5.5 8.6 10.3 10.3 10.3 8.6 19% Americas 1.1 1.7 2.3 3.3 4.4
Slide 25: Revenue by Product
Revenue by Product Growth across all product lines with Mathletics making the largest contribution and Copyrights and Sponsorships revenue also making a contribution. Revenue split by product A$ million FY11 FY12 FY13 FY14 FY15A FY15F FY 2015 FY 2014 Growth Mathletics 20.2 23.2 24.9 28.5 32.9 33.2 3
Slide 26: Licences by Geography
Licences by Geography Americas licence growth of 41% year on year ahead of prospectus and driven by district sales. Balanced by lower than forecast Reading Eggs sales in EMEA. Licences split by geography '000s FY11 FY12 FY13 FY14 FY15A FY15F FY2015 FY2014 Growth ANZ 1,486 2,236 2,500 2,524 2,696 2,7
Slide 27: Licences by Product
Licences by Product Strong performance of all products with consistent growth in total licence numbers. Licence split at 30 June 2015 IntoScience Spellodrome 2% 8% Reading Eggs 19% Mathletics 71% Conference Presentation 26
Slide 28: Pro forma Key Financial Metrics
Pro forma Key Financial Metrics Pro forma * Key Financial Information FY 2015 FY 2014 Var Growth FY15F Var % Revenue (A$m's) 44.8 36.5 8.3 23% 43.8 1.0 2% EBITDA (A$m's) 16.9 13.0 3.9 30% 16.4 0.6 4% NPBT (A$m's) 14.4 11.3 3.1 28% 13.9 0.6 4% NPAT (A$m's) 10.8 8.5 2.3 28% 9.7 1.2 12% EBITDA margin 3
Slide 29: Pro forma Group Performance Overview
Pro forma Group Performance Overview Revenue increased 23%, EBITDA increased 30% and NPAT increased 28% on prior year. Pro forma * Pro forma * $ million, June year end FY 2015 FY 2014 Var Growth FY15F Var Var % Increased salary Total revenue 44.8 36.5 8.3 23% 43.8 1.0 2% costs associated Employee
Slide 30: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and results as at the time of preparation, 12 November 2015. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of informati