Tribal Group Plc · LSE:TRB
Tribal — FY2016 Earnings Presentation
49 slides from Tribal's earnings presentation, Mar 30, 2017
Slide 1: Empowering the World of Education
Empowering the World of Education 2016 Report Ian Bowles, CEO & Mark Pickett, CFO 30th March 2017 One team, One solution.
Slide 2: Overview
Overview § 2016 in Brief § Financial Report § Future Direction 30 March 2017 One team, OneTribal solution. 2016 Results 2
Slide 3: 2016 Business Highlights
2016 Business Highlights Ian Bowles CEO 30 March 2017 One team, OneTribal solution. 2016 Results 3
Slide 4: Three Year Plan
Three Year Plan 2016 Create a solid foundation, and sound operational model 2017 Improve profitability, deliver new product strategy with new licensable modules 2018 Build on operational performance and deliver top-line growth 30 March 2017 One team, OneTribal solution. 2016 Results 4
Slide 5: Financial Results – at Glance
Financial Results – at Glance Revenue Adjusted operating profit* Net Cash (before share based payments) £90.3m £4.7m £8.8m 2015 £106.7m 2015 £2.5m 2015 Debt £(32.5)m down 15% up 88% up 127% Significantly improved performance despite the planned revenue decline * Adjusted operating profit is in respe
Slide 6: FY16 Objectives
FY16 Objectives Restore confidence in the team, customers and 1 investors 2 Create a new single operating model supported by: – Creation of a coherent single go to market strategy – Create cohesive Company & Solutions message 3 Reduce operating costs 4 Drive operational efficiencies 30 March 2017 On
Slide 7: FY16 Delivered
FY16 Delivered £ Embedded Defined Positive Delivered new clear customer £9m operating strategic engagement annualised model direction cost savings 30 March 2017 One team, OneTribal solution. 2016 Results 7
Slide 8: Key Wins
Key Wins Further/Vocational Employers & Schools & Higher Education Education Training Providers Government Bodies University of the Arts Hillingdon Adult Gateshead Council Muskegon City Public London, UK Education, UK Learning & Skills, UK Schools, US Universiti Teknologi Auckland Institute of John
Slide 9: Financial Report
Financial Report Mark Pickett CFO 30 March 2017 One team, OneTribal solution. 2016 Results 9
Slide 10: CFO Summary
CFO Summary Revenue Adjusted Operating Profit* Net Cash (before share based payments) £90.3m £4.7m £8.8m 2016 £90.3m 2016 £4.7m 2016 £8.8m 2015 £106.7m 2015 £2.5m 2015 Net Debt £(32.5)m down 15% up 88% up 127% § Sound financial footing: £8.8m Net Cash, no long-term borrowings, and new Product Develo
Slide 11: Consolidated Income Statement
Consolidated Income Statement 2016 2015 £m £m Revenue 90.3 106.7 Gross profit margin 43% 36% Adjusted operating profit 4.7 2.5 Adjusted operating profit margin 5.2% 2.4% Other Items (4.6) (47.8) Statutory operating profit 0.1 (45.2) Finance costs (1.0) (2.1) Statutory loss before tax (0.9) (47.3) In
Slide 12: Financial Key Points
Financial Key Points Revenue Adjusted operating profit Statutory loss £90.3m £4.7m £(1.2)m 2015 £106.7m down 15% 2015 £2.5m up 88% 2015 £(45.4m) improved 97% Annually recurring revenue Adjusted operating margin Statutory loss per share £32.4m 5.2% (0.7)p 2015 £30.3m up 7% 2015 2.3% up 126% 2015 (48.
Slide 13: Revenue Bridge from 2015 to 2016
Revenue Bridge from 2015 to 2016 110.0 £106.7m £(8.4)m 100.0 £(4.7)m 90.0 £(4.1)m £3.0m £(1.3)m £(1.0)m £90.3m 80.0 One-off revenue reductions Revenue changes by segment • Ofsted Schools expiry • Student Management 70.0 • Synergy disposal Systems (SMS) • SLS/Careers Advice • QAS non-core business cl
Slide 14: Adjusted EBITDA Bridge from 2015 to 2016
Adjusted EBITDA Bridge from 2015 to 2016 £m 8.0 £3.4m £7.9m £7.4m £(3.4m) Underlying 2016 6.0 2015 2015 Dev Improvement Costs excl EBITDA EBITDA (Adj) SchoolEdge (Adj) FX impact 4.0 2015 EBITDA(A) £(3.4m) £5.8m with Dev Costs Expensed Ofsted InYear (excluding Schools Cost 2.0 SchoolEdge) is Contract
Slide 15: Segmentation: All Businesses
Segmentation: All Businesses § Original adjusted operating profit is consistent with treatment of Adjusted Adjusted operating profit operating profit overhead costs in prior years Revenue £m (original) £m (revised) £m § Adjusted Operating Profit 2016 2015 2016 2015 2016 (revised) includes all overhe
Slide 16: Student Management Systems
Student Management Systems Revenue £m 2016 2015 Licence and development 10.8 14.1 Revenue £m Implementation 12.4 12.5 2016 2015 Maintenance fees 32.4 30.3 Higher Education 28.8 28.6 Other 5.3 5.8 Further Education 16.2 18.7 Total 61.0 62.7 Schools 16.0 15.5 Total 61.0 62.7 Adjusted Operating Profit
Slide 17: Other Items
Other Items 2016 2015 £m £m Share-based payment charges/(credit) 1.0 (0.4) In 2016, share-based payments are Profit on sale of Synergy (0.3) - included in Other Items, and 2015 is restated Restructuring 1.9 0.5 IFRS3 amortisation 1.9 1.7 Share-based payments in 2017 and Impairment charges - 46.8 201
Slide 18: Cashflow
Cashflow Net cash 2016 2015 £m £m £8.8m Operating cashflow 8.3 (6.2) 2015 £(32.5)m Up 127% Proceeds of Synergy disposal 19.4 - Operating Cashflow Acquisition/disposal related costs (3.9) (4.5) Capital expenditure (2.4) (6.8) £8.3m Finance and other costs (0.5) (1.0) 2015 £(6.2)m Up 234% Net proceeds
Slide 19: Future Direction
Future Direction Ian Bowles CEO 30 March 2017 One team, OneTribal solution. 2016 Results 19
Slide 20: Our Goal
Our Goal World-class software & services company International market leading educational management solutions provider Valued by – Customers – Staff – Shareholders 30 March 2017 One team, OneTribal solution. 2016 Results 20
Slide 21: Vision & Mission
Vision & Mission to empower the world of education to provide the expertise, software and services required by education and business organisations worldwide to underpin student success 30 March 2017 One team, OneTribal solution. 2016 Results 21
Slide 22: Student Information Systems Strategy
Student Information Systems Strategy Further Education / Employment & School Higher Education Vocational Education Work Based Learning Lifelong Learning Journey Tribal SchoolEdge Tribal Student Information System Tribal Maytas A student’s lifelong learning journey underpinned by Tribal Student Infor
Slide 23: Our Systems support complex but integrated processes
Our Systems support complex but integrated processes 30 March 2017 One team, OneTribal solution. 2016 Results 23
Slide 24: Gartner’s View
Gartner’s View § Declines in retention in Higher Education are driving the need for a more personalised, engaging student experience to maintain enrolment. By 2021, more than 30% of institutions will be forced to execute on a personalization strategy to maintain student enrolment. § Changing demands
Slide 25: In Summary…
In Summary… Education ecosystems and education providers have similar drivers, and they are quite similar across the globe: § recruit and retain more students § provide more engaging learning, efficiently § deliver better outcomes 30 March 2017 One team, OneTribal solution. 2016 Results 25
Slide 26: Consider Betty…
Consider Betty… Betty looks a little worried about her journey through education! 30 March 2017 One team, OneTribal solution. 2016 Results 26
Slide 27: The world of education is complex
The world of education is complex: lots of unconnected dots Preschool Primary Universities Polytechnics Secondary Spring MoE Colleges Private Tuition MOOCs Certifiers Agents Colleges PEIs Vendors International Schools Representative Bodies 30 March 2017 One team, OneTribal solution. 2016 Results 27
Slide 28: The world of education is also impacted by
The world of education is also impacted by Industrial Reformation Digital Transformation Globalisation Changing modes Stakeholder bodies Skills Shortages Disruption Academic Performance Obsession 30 March 2017 One team, OneTribal solution. 2016 Results 28
Slide 29: The one thing consistent in Betty’s journey
The one thing consistent in Betty’s journey… …Is Betty 30 March 2017 One team, OneTribal solution. 2016 Results 29
Slide 30: Lifelong Learning Record
Lifelong Learning Record • Student accessible Lifelong Learning Record • Access anytime, anywhere - portal and mobile app • Shows qualifications gained, and progress on current studies • Technology driven credentialing (Blockchain) • Consolidates disparate education experiences into students’ hand •
Slide 31: What are student analytics?
What are student analytics? Indicators Connections Metrics 30 March 2017 Tribal 2016 Results 31
Slide 32: Student Analytics facilitates
Student Analytics facilitates • Understanding students at risk of dropping out or failure • Intervention to ensure learner success • Target the right students for your provision • Understand what works best for individual learner success, experience and retention 30 March 2017 One team, OneTribal so
Slide 33: Connecting the dots it starts with the Student
Connecting the dots it starts with the Student § Pivots from, the student record – our key strength! § Connect timetabling, learning, fees, assessment, CRM, etc. § Monitor and track KPIs § Serve data when and where it matters 30 March 2017 One team, OneTribal solution. 2016 Results 33
Slide 34: Fees, Assessment, Attendance
Marks & Fees Assessment Attendance Grades Jimmy doesn’t Jimmy has Jimmy is late in submit his Jimmy failed his missed the past paying his fees assignment on last exam three days time 30 March 2017 One team, OneTribal solution. 2016 Results 34
Slide 35: How’s Jimmy???
How’s Jimmy??? Siloed information in “straight lines” means an institution can miss the warning signs 30 March 2017 One team, OneTribal solution. 2016 Results 35
Slide 36: Student Support
Student Support • Seamless support experience • Single view of all learner issues • Relevant information, advice and guidance based on learners journey 30 March 2017 One team, OneTribal solution. 2016 Results 36
Slide 37: Student Engagement
Student Engagement • Engage with learners earlier in the recruitment cycle • Build a sense of community • Private social network, safe and secure • Quick, effective two way communication 30 March 2017 One team, OneTribal solution. 2016 Results 37
Slide 38: Student View
Student View • Anytime, anywhere – portal & mobile app • Personalised, tailored experience • Enquiry to enrolment, and onwards • Communication aligned with student lifestyle • Allow mapping skills to employers needs • Platform for Employer Engagement 30 March 2017 One team, OneTribal solution. 2016
Slide 39: Four Pillars of Growth
Four Pillars of Growth Market Product Geographic Mergers Penetration Penetration Expansion & Acquisitions 30 March 2017 One team, OneTribal solution. 2016 Results 39
Slide 40: QAS Business
QAS Business USA Schools Inspection contract, Alabama, US Middle East Schools Inspection contract, Ministry of Education, UAE UK - Ofsted • Additional work in Q1 • Provision of systems for 12 months 30 March 2017 One team, OneTribal solution. 2016 Results 40
Slide 41: 2017 Committed Revenue
2017 Committed Revenue Backlog £113.8m (2015 £121.3m) of which: § £58.1m is committed for 2017 £25.9m Revenue required £32.4m to be sold in year Annually Recurring § Represents 69% of 31% Revenue consensus revenue of £84.0m 39% 2017 deals § Sheffield £11.3m § MoE in Dubai QAS/iGrad £14.4m backlog Ot
Slide 42: Our Strategic Priorities
Our Strategic Priorities Deliver the new Student Information framework Increase annual recurring revenue, exploiting market trends of SaaS & cloud Grow market share in established & new territories Drive operational efficiency and improved margins 30 March 2017 One team, OneTribal solution. 2016 Res
Slide 43: Appendix
Appendix 30 March 2017 One team, OneTribal solution. 2016 Results 43
Slide 44: Our Key Strengths
Our Key Strengths Extensive and long-standing customer relationships Broad, complementary portfolio Educational expertise and focus International delivery and insight 30 March 2017 One team, OneTribal solution. 2016 Results 44
Slide 45: Market Position
Market Position § No.1 provider of student management systems to universities in the UK, Australia & New Zealand – Australia we work with 90% of Universities – New Zealand we work with 100% of Universities – Facilitates and asset management software provides the NZ Ministry of Education with an effe
Slide 46: Tribal Service Bus
Tribal Student Information Framework End Users New Value Add Modules Core Student Mgmt Modules UI Layer Specific API … Tribal Service Bus Tribal REST Business Logic Business Current SMS API API (actual code) Logic Layer Relational 3rd party APIs Analytics Data Layer Database modules 30 March 2017 On
Slide 47: A few of our many customers
A few of our many customers 30 March 2017 One team, OneTribal solution. 2016 Results 47
Slide 48: Financial Reporting
Financial Reporting Three Lines of Four Market Greater Business: Segments: transparency SMS Higher Education of operating i-graduate Further Education margin QAS Schools Work Based Learning 30 March 2017 One team, OneTribal solution. 2016 Results 48
Slide 49: Contact
Contact: Email § Ian.Bowles@tribalgroup.com § Mark.Pickett@tribalgroup.com WWW.TRIBALGROUP.COM @TRIBALGROUP 30 March 2017 One team, OneTribal solution. 2016 Results 49