Iph Ltd. · ASX:IPH
Iph — Investor Presentation (February 2024)
31 slides from Iph's investor presentation, Feb 22, 2024
Slide 1: 2024 Half Year Results Investor Presentation
2024 Half Year Results Investor Presentation Half year ended 31 December 2023 Presented by: Dr. Andrew Blattman Managing Director & CEO, IPH Limited John Wadley Chief Financial Officer, IPH Limited iphltd.com.au
Slide 2: Disclaimer
Disclaimer This document has been prepared by IPH Limited (IPH) and comprises written materials/slides for a presentation concerning IPH. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or otherwise dispose of, or is
Slide 3: Contents
Contents 1 HY24 highlights 05 2 HY24 results 07 3 Market update 14 4 Delivering on our strategy 19 5 Summary and priorities 22 6 Appendix 26 www.iphltd.com.au 2024 Half Year Results Investor Presentation 3
Slide 4: About the IPH Group
About the IPH Group A leading international IP services group 1) Approximate employee numbers across the Group. 2) Management estimated market share based on local IP office filing data: Australia (FY24 YTD as at 8/1/24), Singapore (CY24 YTD Oct as at 9/2/24), New Zealand (FY24 YTD as at 22/12/23),
Slide 5: HY24 highlights
01 HY24 highlights www.iphltd.com.au 2024 Half Year Results Investor Presentation 5
Slide 6: Solid underlying result
Solid underlying result Strong turnaround in Australia and successful acquisitions in Canada 13% Underlying EBITDA1 Return to growth in Australia Recovery in revenue / earnings with improved $90.4m patent filing performance Canadian acquisitions drive earnings diversity Underlying NPAT1 $50.8m 5% Ad
Slide 7: HY24 results
02 HY24 results www.iphltd.com.au 2024 Half Year Results Investor Presentation 7
Slide 8: Financial overview
Financial overview Solid underlying performance; statutory result includes impact of one-off costs related to two acquisitions made during the period 3% Revenue1 $274.4m 21% Interim Dividend2 16 cents per share (35% franked) 5% 13% EBITDA Underlying EBITDA3 $74.8m $90.4m -26% 5% Statutory NPAT Under
Slide 9: Like-for-Like earnings
Like-for-Like earnings Strong turnaround in Australia, solid growth in Canada while Asia impacted by lower overall market filings in the region Australia – New Zealand Asia Canada Group Revenue 4% Revenue -3% Revenue -1% Revenue 2% Underlying EBITDA 6% Underlying EBITDA -9% Underlying EBITDA 5% Unde
Slide 10: Underlying Results
Underlying Results Underlying EBITDA up 13% HY24 Statutory Underlying Adjustments $’m $’m Adjustments Income Statement Earnings HY243,4 Total revenue1 274.4 274.4 Business acquisition costs 10.7 Total expenses (199.6) 15.7 (183.9) Restructuring Expenses 3.8 EBITDA 74.8 90.4 Impairment of Right of U
Slide 11: Cash flow statement
Cash flow statement HY24 HY23 Cash conversion 128% $'m Statutory EBITDA 74.8 71.3 • Cash conversion rate of 128% includes the benefit of the reversal of the prior Non-operating adjustments 3.4 (0.4) period working capital outflow related to the cyber incident in March 2023. Operating EBITDA 78.2 70.
Slide 12: Balance sheet
Balance sheet Balance Sheet as at 31 Dec 2023 Balance Sheet as at 30 Jun 2023 Growth in balance sheet following further acquisitions $'m Cash and cash equivalents 126.4 103.3 Trade and other receivables 139.2 136.7 As a result of the acquisitions of Ridout & Maybee and ROBIC, the following intangibl
Slide 13: Foreign currency sensitivity
Foreign currency sensitivity HY24 Service Charges Earnings currency Balance sheet sensitivity sensitivity • The Group is also exposed to FX on its Other foreign currency denominated net cash 5% • Based on USD profile in HY24 in IPH and receivables balances, the largest of Group, a 1c movement in AUD
Slide 14: Market update
03 Market update www.iphltd.com.au 2024 Half Year Results Investor Presentation 14
Slide 15: Patent market – Australia
Patent market – Australia IPH continuing to close gap to market growth Australian patent 45,000 IPH Group market share2 40.0% filings – market1 41,037 • IPH filings in 1H FY24 decreased 2.8% 34.0% 40,000 compared with 1H FY23.3 32.4% 35.0% • Australian patent market 31.6% 36,034 decreased 0.8% in 1H
Slide 16: Patent market – Singapore
Patent market – Singapore Decline in market filings but IPH performing ahead of market this FY Singapore patent 16,000 IPH Group market share2 30.0% filings – market1 14,353 14,578 • IPH maintains number one market share position in CY23 YTD Oct. 14,000 • Preliminary market data for CY23 YTD Oct ind
Slide 17: IPH patent filings – Asia
IPH patent filings – Asia1 Lower filings across Asia consistent with Singapore market decline • IPH patent filings in Asia (outside of Singapore) 600 decreased by 14.0% in 1H FY24 compared with 1H FY23. • IPH filings across most of 500 these jurisdictions were affected by the decline from US clients
Slide 18: Focus on Asia
Focus on Asia Market drivers remain attractive Innovation Ecosystems: Long term investment in R&D Historical Trends by Singapore and Hong Kong Governments. Patent filings in key Asian jurisdictions (excl. China): 25000 Economic Growth and Integration: Increasingly affluent Asian economies generate t
Slide 19: Delivering on our strategy
04 Delivering on our strategy www.iphltd.com.au 2024 Half Year Results Investor Presentation 19
Slide 20: Creating a platform for growth in Canada
Creating a platform for growth in Canada Delivering further resilience and diversity of earnings for the IPH Group consistent with the IPH growth strategy • Acquisitions deliver immediate scale - IPH has built the market leading position in the Date Canadian IP Consideration A$m* of Completion Paten
Slide 21: Canadian acquisitions – integration update
Canadian acquisitions – integration update Remain on track to deliver committed cost synergies How we will create value Targeted synergies Update on progress • Significant progress made on integrating Canadian acquisitions • Leveraging the IPH network effect – client referrals ~$4-6m over 3 years •
Slide 22: Summary and priorities
05 Summary and priorities www.iphltd.com.au 2024 Half Year Results Investor Presentation 22
Slide 23: Summary and Priorities for FY24
Summary and Priorities for FY24 Diverse and resilient earnings with strengthening balance sheet Turnaround in Australian financial performance and continuing to close the gap relative to market patent filings creating momentum for the second half Focus on integrating recent Canadian acquisitions (in
Slide 24: www.iphltd.com.au 2024 Half Year Results Investor Presentation
www.iphltd.com.au 2024 Half Year Results Investor Presentation 24
Slide 25: Thank you
Thank you iphltd.com.au www.iphltd.com.au
Slide 26: Appendix
06 Appendix www.iphltd.com.au 2024 Half Year Results Investor Presentation 26
Slide 27: Like-for-like revenue and EBITDA
Like-for-like revenue and EBITDA Underlying New Businesses Accounting Currency Adjusted Underlying Chg% Revenue Dec 23 & Disposals FX Movements Adjustment Revenue Dec 23 Revenue Dec 22 Australia & NZ IP 148.6 2.0 (1.6) 149.0 142.8 4% Asian IP 60.4 (0.4) (2.2) 57.8 59.6 (3%) Canada IP 71.3 (41.2) (0.
Slide 28: Supplementary information
Supplementary information Borrowings Maturity Profile Items below EBITDA 240 The table below details components included in Profit before Tax not included in EBITDA. 210 FY24 and FY25 assumptions1 are estimated and movements from HY23 are predominately due to the additional Canadian acquisitions Rid
Slide 29: Patent market trends
CAGR 15 Yr (CY07 to CY22) = 0.6% United States PCT Applications2 Patent market trends 70,000 CAGR Post-GFC (CY10 to CY22) = 2.2% 60,000 CAGR 15 Yr (FY08 to FY23) = 0.2% Australian Patent Filings1 CAGR Post-GFC (FY10 to FY23) = 1.0% 50,000 45,000 40,000 30,000 40,000 20,000 35,000 10,000 30,000 0 200
Slide 30: Revenue and EBITDA
Revenue and EBITDA Underlying Revenue $’m Underlying EBITDA $’m 170.0 490.2 - 0.1 137.4 31.4 385.0 93.8 369.4 363.5 124.3 - - 0.6 - 114.5 2.7 - 0.4 5.1 - 51.5 54.3 22.5 17.8 - 110.2 118.9 90.4 110.4 274.4 - 43.4 96.1 - - 10.9 - 43.6 41.2 11.5 102.7 30.1 26.4 60.4 103.5 103.3 286.0 289.8 88.2 253.2 6
Slide 31: Patent lifecycle
Patent lifecycle Long-life cycle supports consistent revenues and earnings Each year more than half+ of the total patent applications filed in Australia Typical (indicative) foreign patent route in Australia come through the PCT system in the form of PCT National Phase patent applications. • The pro