Slide 1: 3P Learning 20:22 Accelerate Growth
August 2019 3P Learning 20:22 Accelerate Growth This presentation contains the same content as in our 20:22 Accelerate Growth video available at: https://www.3plearning.com/investors/strategy-update-august-2019/ Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 2: 2017-2019 Laying the foundation for profitable growth
2017-2019 Laying the foundation for profitable growth To understand how we are positioned to execute our next 3 years strategy, it’s worth doing a quick recap on how we’ve been setting the business up for this growth phase. Across 2017-2019 our unwavering focus was on 3 strategic priorities: strengt
Slide 3: Strengthen our product portfolio
Strengthen our product portfolio To achieve our first strategic priority, ‘strengthen our product portfolio around maths and literacy’ we completed the significant migration to HTML5, strengthened our K-2 offering, introduced new and exciting student activities like Multiverse and improved our data
Slide 4: SAAS Model
SAAS Model Our second strategic priority, to ‘develop a more scalable sales and marketing model’, saw us invest in a world class sales and marketing automation platform, we rebuilt our B2C customer experience, renovated our web presence and implemented a powerful contract management and billing syst
Slide 5: SAAS Model
SAAS Model Combined, these actions now position 3P to be a scalable SaaS business in a multi product environment across a diverse array of countries and customers. Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 6: SAAS Model
SAAS Model “I am really excited about the progress we have made to set 3P up as a scalable digital SaaS business; standardising to a leading marketing automation platform gave us the ability to retire a fragmented collection of marketing tools and build a scalable set of marketing journeys for both
Slide 7: Americas Region
Americas Region In all markets, including the important Americas region, we reset our sales model to use lower cost digital and telesales resources to address transactional school by school sales and directed field sales to higher value contracts at the district level. By resetting our cost structur
Slide 8: Globalising
Globalising To our last strategic priority, ‘globalising the business’, we consolidated shared services like marketing, people and culture, technology and finance into global functions and we implemented global processes and systems to drive efficiency and effectiveness. We also reduced our real est
Slide 9: 20:22 3P Accelerate Growth
20:22 3P Accelerate Growth “We start FY2020 with a strong balance sheet with $25.8m cash and no debt, which will augur well for this next phase of growth.” Simon Yeandle Chief Financial Officer Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 10: Next 3 Year Strategy
Next 3 Year Strategy What’s our 20:22 Accelerate Growth plan? Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 11: 2020-2022 Accelerate profitable growth
2020-2022 Accelerate profitable growth Having successfully laid a solid foundation, 3P is now poised to accelerate profitable growth. Growth will come from all regions leveraging our expanded product portfolio and customer base, improved retention as well as accelerated profitable sales growth in th
Slide 12: 1) Leveraging our expanded product portfolio and customer base
1) Leveraging our expanded product portfolio and customer base We enter FY20 with an expanded product portfolio spanning maths, literacy and science. Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 13: Mathletics
Mathletics We will continue to invest in our flagship Mathletics brand to ensure it meets the evolving needs of a 21st century learning and teaching environment and to better address the opportunity in B2C and the secondary segment. Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 14: Mathletics
Mathletics “Building upon our strong practise and fluency offering, we will introduce a range of deeper learning resources which will help build students for the 21st century. Mathletics will evolve to support learners to work collaboratively and solve problems.” Allan Dougan Global Head of Educatio
Slide 15: 6M Model
6M Model “In parallel we’ll launch a learning model we co-authored with educators across the globe. We call it ‘The 6Ms Learning Framework’ – magnify, motivate, model, master and maintain. This framework will be embedded in our Mathletics and Readiwriter products and will provide teachers and studen
Slide 16: Readiwriter
Readiwriter Our Readiwriter Spelling product will be launched with a 21st century learning and teaching environment as well as the 6M Learning Framework. Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 17: Literacy offering
Literacy offering “Readiwriter Spelling will replace our existing Spellodrome and over time the portfolio will include Readiwriter Writing. When combined with our already successful Reading Eggs and Wordflyer products, this will form a comprehensive literacy offering.” Abhinaw Kumar Product Manager
Slide 18: Machine Learning
Machine Learning We will also devote some of our innovation efforts to emerging areas like machine learning, where students are presented with true personalised learning pathways. We will do this through partnerships with industry leaders like Sana Labs, GeoGebra and others. Full Year 2019 Investor
Slide 19: Teacher Focus
Teacher Focus Even as technology evolves, our source of product differentiation will remain constant. We will continue to put the teacher at the heart of our products. We’ll continue to focus on supporting teachers in the classroom, which includes creating highly engaging student experiences, in tur
Slide 20: A new source of differentiation: linking products to the home (B2C)
B2C A new source of differentiation for 3P will be linking our products to the home, helping parents and caregivers support student growth. This new focus will be supported by our intent to leverage our Mathletics and Readiwriter products to build out a strong B2C product portfolio which will be sol
Slide 21: In Product Sales Channel
In Product Sales Channel “We’ll also greatly increase cross-sell and up-sell opportunities from within the product, creating the product as a sales channel and opening the door for customers to trial and purchase our entire suite autonomously.” Angus Macaskill Product Manager Full Year 2019 Investor
Slide 22: Growth
Growth In summary, by leveraging our expanded product portfolio we’ll see our installed base and revenue per customer grow. Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 23: 2) Accelerate growth in the Americas
2) Accelerate growth in the Americas Our2nd strategic priority focusses on accelerating profitable sales growth in the Americas. Now that we have reset our sales and marketing model, adapted our product to better suit the North American market, expanded the product offering as well as hired an exper
Slide 24: 2) Accelerate growth in the Americas
2) Accelerate growth in the Americas “I’m feeling really good about our ability to continue to deliver the double-digit growth in the Americas that we saw at the end of FY19. Our combination of a comprehensive math solution and experience positions us well for a breakthrough year.” Deepak Karandikar
Slide 25: 3) Customer experience and retention
3) Customer experience and retention The 3rd strategic priority to support our 20:22 Accelerate Growth Plan is to enhance the customer experience and retention. “We all know that retaining customers is more cost effective and profitable than acquiring new customers. To improve our retention rates we
Slide 26: Branding
Branding We will also continue to reposition our brand and our digital assets to drive more meaningful customer engagement. Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 27: Customer Engagement
Customer Engagement “Like other successful SaaS brands, our marketing focus will be across each phase of the funnel. At the top of the funnel we’ll position the 3P brand as an educational thought leader and create a digital community where educators across the globe can connect with one another, inc
Slide 28: Customer Engagement
Customer Engagement Top of SEO/Social Media/PPC Funnel Attract (TOFU) Click-Throughs Landing Page Traffic Optimization Middle of Funnel Content Marketing Audience Nuture (MOFU) Website Optimization Leads Email Prospects Marketing Convert Bottom of Conversion Sales Funnel (BOFU) Customer Customer Exp
Slide 29: 20:22 3P Accelerate Growth Plan
20:22 3P Accelerate Growth Plan In summary, our 20:22 accelerate growth plan will be driven by leveraging our expanded product portfolio and customer base, accelerated profitable sales growth in the Americas, an enhanced customer experience and improvements in retention. Underpinning all of this wil
Slide 30: 20:22 3P Accelerate Growth Plan
20:22 3P Accelerate Growth Plan “We’ve developed our people internally through investment in learning and development and brought in new talent in critical areas such as digital, data and analytics, sales and product innovation. Coupled with that, every employee now has some of their remuneration ti
Slide 31: 20:22 3P Accelerate Growth Plan
20:22 3P Accelerate Growth Plan “So that’s a snapshot of the work we’ve done over the past 3 years to lay a really solid foundation for 3P to now accelerate sales growth across all three regions. Leveraging our expanded product portfolio and customer base, accelerating profitable sales growth in the
Slide 32: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and plans as at the time of preparation, 22 August 2019. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information c