Iph Ltd. · ASX:IPH

Iph — FY2015 Earnings Presentation

35 slides from Iph's earnings presentation, Aug 27, 2015

1. Slide 1: Full Year Results Presentation

   For personal use only Full Year Results Presentation Year ended 30 June 2015 27 August 2015 Presenters David Griffith - Managing Director, IPH Limited Dr. Andrew Blattman - CEO, Spruson & Ferguson Malcolm Mitchell - Group Chief Financial Officer, IPH Limited 1

2. Slide 2: Disclaimer

   Disclaimer For personal use only 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 other

3. Slide 3: Contents

   Contents For personal use only 1. FY15 Highlights 2. FY15 Business Performance and Market Update 3. Acquisitions 4. FY15 Financial Performance 5. FY16 Strategic Initiatives 6. Appendices 3

4. Slide 4: 1. FY15 Highlights

   For personal use only 4 1. FY15 Highlights

5. Slide 5: Financial Highlights

   Financial Highlights For personal use only FY15 pro forma NPAT exceeded prospectus forecast by 29.8%, and was 41.1% above FY14  Underlying (constant currency) earnings ahead of Prospectus forecasts  Pro forma NPAT of $30.9m (EPS 19.6c), 41.1% ahead of previous year  Significant net benefits deriv

6. Slide 6: Operational Highlights

   Operational Highlights For personal use only A defining year for IPH  IPO: Successful IPO in November 2014 - IPH is an ASX 300 company.  Acquisitions: IPH acquired two businesses within 6 months from IPO - Practice Insight (Apr’15) - Fisher Adams Kelly (May’15)  Asia: IPH continues to grow in Asi

7. Slide 7: 2. FY15 Business Snapshot and Market Update

   For personal use only 2. FY15 Business Snapshot and Market Update 7

8. Slide 8: Business Snapshot

   Business Snapshot For personal use only The majority of revenue derives from patent business. Highly diversified client base, annuity style client relationships and strong cash conversion Revenue split by service line and location Revenue split by clients (FY15) 2 Australia Asia Patents & Trade Lega

9. Slide 9: Market Overview – Global Trend in Patents

   Market Overview – Global Trend in Patents For personal use only Growing trend in international PCT patent applications  Growing trend of PCT applications filed in key jurisdictions (USA and Europe) is a strong indication of increasing number of PCT national phase patent applications to be filed in

10. Slide 10: Market Overview – Asian Patent Market

    Market Overview – Asian Patent Market For personal use only Growing patent market in Asia SG, ID, TH, MY VN & PH Total Patent Filings 12000 10000 8000 CY10 CY11 6000 CY12 CY13 4000 CY 14 (1) 2000 0 Singapore Indonesia (3) Thailand (2) Malaysia Vietnam Philippines 10 Data Source: WIPO, IPH (1) CY14 p

11. Slide 11: Market Overview – AU & SG Patent Markets

    Market Overview – AU & SG Patent Markets For personal use only Flat patent market in Australia; growth in Singapore  Number of patent applications filed at IP Australia  It is estimated that over 10,000 patent applications in FY15 was lower than expected. were filed at IPOS in CY14. Total Patent F

12. Slide 12: Market Overview – IPH patent market share in AU & SG

    Market Overview – IPH patent market share in AU & SG For personal use only No 1 IP group in Australia and Singapore  Australia: IPH (incl. SF & FAK) has 13% patent  Singapore: IPH (SF (Asia) ) has 24% patent market market share and holds no 1 market position share and holds no 1 market position IP

13. Slide 13: Market Overview – IPH patent market share in Asia

    Market Overview – IPH patent market share in Asia For personal use only IPH maintains strong patent market position in key jurisdictions in Asia IPH (SF (Asia)) Patent Market Share - Asia (CY 13) 30% 25% 25% 20% 15% 12% 10% 8% 8% 6% 5% 4% 1% 0% Singapore Malaysia Philippines Indonesia Viet Nam Thail

14. Slide 14: Filings by IPH companies

    Filings by IPH companies For personal use only  Patent application volumes by Spruson & Ferguson (Australia) are in line with previous year but below target, in a flat market. Reduction in the filing propensity of a number of larger clients is evident as happens from time to time.  Patent applicat

15. Slide 15: 3. Acquisitions

    For personal use only 15 3. Acquisitions

16. Slide 16: Practice Insight

    Practice Insight For personal use only Acquisition of Practice Insight is one step into the valuable IP adjacent business market  Completed acquisition in April 2015  IP data analysis and business applications software  Highly capable team of software developers lead by Thomas Haines  Revenue ge

17. Slide 17: Fisher Adams Kelly

    Fisher Adams Kelly For personal use only Acquisition of an Australia IP firm is aimed at consolidating the fragmented IP market in Australia  Completed acquisition on 28 May 2015  Brisbane based patent & trade mark attorneys, established over 30 years  Strong local and foreign client base  Award

18. Slide 18: 4. FY15 Financial Results

    For personal use only 4. HY15 Financial Results 18

19. Slide 19: Income Statement

    Income Statement Underlying earnings ahead of Prospectus forecasts; significant benefits derived from currency movements For personal use only Year ended Pro forma Prospectus 30 June 2015 Statutory Restructuring S&F Law pre Other Pro forma Pro forma Foreign (Constant Pro forma Income & IPO Restructu

20. Slide 20: Segment Breakdown

    Segment Breakdown Strong performance from Spruson & Ferguson Asia For personal use only Year ended 30 June 2015 Australia Asia Group Pro forma Pro forma Pro forma Pro forma Full Earnings 1) Earnings Eliminations 1) Earnings FY15 Year Forecast #039;m Total revenue 54.2 42.9 (2.5) 94.6 82.8 Total expense

21. Slide 21: Pro forma Revenue and EBITDA FY13 - FY15

    Pro forma Revenue and EBITDA FY13 - FY15 For personal use only Revenue #039;m EBITDA #039;m Australia Asia Australia Asia Interco 42.3 94.6 79.2 28.6 30.0 21.1 74.2 42.9 26.3 31.2 10.2 13.7 50.5 54.2 21.2 50.1 18.4 16.3 (2.2) (2.5) (2.5) FY13 FY14 FY15 FY13 FY14 FY15 21

22. Slide 22: Cash Flow Statement

    Cash Flow Statement Strong cash flow For personal use only  Low CAPEX & minimal working capital requirements = Strong cash generation  Distributions/dividends of $26.8m (including pre-IPO distributions to previous owners) paid in the period Year ended Pro forma Prospectus Prospectus 30 June 2015 S

23. Slide 23: Consolidated Balance Sheets

    Consolidated Balance Sheets For personal use only Statutory Pro forma Statutory Balance Sheet Restructuring & Balance Sheet as Balance Sheet Strong balance sheet as at IPO at as at 30 Jun 2014 Adjustments 1) 30 Jun 2014 30 June 2015 #039;m  Net debt of $5.3m Cash and cash equivalents 4.3 (7.9) (3.6) 5

24. Slide 24: Changes in Equity

    Changes in Equity For personal use only Year ended Minority Equity Non- 30 June 2015 Share Acquisition Benefits controlling Retained Total Capital Reserve Reserve FCTR interests Profits Equity #039;m As at 30 June 2014 0.4 (4.5) 0.0 (0.2) 0.5 3.9 0.1 Pre-offer FY14 distributions & dividends (0.5) (7.7)

25. Slide 25: Currency Sensitivity

    Currency Sensitivity For personal use only Service Charge Income Expenses net of Other Income by Currency 1) by Currency 2) Other 6% AUD EUR 15% 8% SGD SGD 36% 6% USD AUD 65% 64% 25 Notes: 1) Based on Prospectus forecast pro forma Service Charge Income ($63.6m), applying the Prospectus forecast fore

26. Slide 26: 5. FY16 Strategic Initiatives

    For personal use only 5. FY16 Strategic Initiatives 26

27. Slide 27: Future Growth Initiatives

    Future Growth Initiatives Goal – “To be the leading IP group in secondary markets” For personal use only 1  Maintain and grow patent market share in Singapore  Open offices and acquire well established IP firms in other Asian countries Asian Growth  Increase patent market share in other Asian cou

28. Slide 28: 6. Appendices

    For personal use only 28 6. Appendices

29. Slide 29: IPH Limited - Overview

    IPH Limited - Overview For personal use only  IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”), Fisher Adams Kelly (“FAK”) & Practice Insight (“PI”)  S&F - Established in 1887 - A leading Intellectual Property (“IP”) firm in Asia Pacific - Top-tier IP group with a strong re

30. Slide 30: IPH Limited – Group Structure

    IPH Limited – Group Structure For personal use only IPH Limited Practice Insight Pty Ltd Spruson & Ferguson Pty Ltd IPH Services Pty Ltd Fisher Adams Kelly Pty Ltd Spruson & Ferguson Lawyers Pty Ltd Spruson & Ferguson (M) Sdn Bhd Spruson & Ferguson (Asia) Pte Ltd Spruson & Ferguson (Asia) Representa

31. Slide 31: IPH Limited – Corporate Information

    IPH Limited – Corporate Information For personal use only Directors Ordinary Shares on Issue Number % Mr Richard Grellman AM - Chairman Free float 81,844,884 50.1% Escrowed ** 81,562,391 49.9% Mr David Griffith - Managing Director Total 163,407,275 100.0% Ms Robin Low Dr Sally Pitkin Top 20 107,792,

32. Slide 32: IPH's Hub Strategy

    IPH’s Hub Strategy For personal use only  Key to IPH’s strategy is its operation of IP service hubs  IPH operates two key IP hub (Australia and Singapore) – “one-stop” service for clients co-ordinating IP applications in 25 countries across Asia Pacific  IPH’s hub strategy has established a stron

33. Slide 33: Stages of IP Lifecycle

    Stages of IP Lifecycle For personal use only IPH generates revenue from all stages of the IP lifecycle Timelines Up to 31 months Generally 2-5 years Up to 20 years Patents Renewal / Phase Filing Prosecution Management / Enforcement Timelines Up to 6 months Up to 21 months Indefinite Trade Marks 33

34. Slide 34: Investment Highlights

    Investment Highlights For personal use only  IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”) & Fisher Adams Kelly (“FAK”) & Practice Insight (“PI”) Long track  S&F, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia Pacific record  S&F is top-tier

35. Slide 35: Investment Highlights (cont'd)

    Investment Highlights (cont’d) For personal use only Experienced  Strong board with complementary skill sets Board,  Long standing, experienced management team management &  Highly qualified and experienced professional IP team personnel High barriers to  Entrenched market position, large pipeli

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