Slide 1: 2017 Full Year Results Investor Presentation
For personal use only 2017 FULL YEAR RESULTS INVESTOR PRESENTATION Year Ended 30 June 2017 David Griffith - Managing Director/CEO, IPH Limited Dr. Andrew Blattman - CEO, Spruson & Ferguson John Wadley - Chief Financial Officer, IPH Limited
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by IPH Limited (IPH) and No representation, warranty or assurance (express or implied) is comprises written materials/slides for a presentation concerning IPH. given or made by IPH that the forward looking statements contained in this
Slide 3: FY17 Highlights
For personal use only FY17 Highlights
Slide 4: Financial Highlights
Financial Highlights Strong EBITDA and Dividend Growth For personal use only Underlying EBITDA of $71.6m, 10% ahead of FY16. Statutory Results (#039;m) FY17 FY16 Chg % Revenue2 $186.0 $157.5 18.1% The strengthening of the AUD at the end of June led to the recognition of unrealised exchange losses o
Slide 5: FY17 Operational Highlights
FY17 Operational Highlights Asian expansion and leadership position in key markets For personal use only As a group IPH maintained its No.1 patent (22% market share1) and trademark (13% “qualified” market share2) market position in Australia. Australia Australian patent market is back to pre-Ame
Slide 6: FY17 Business Performance & Market Update
For personal use only FY17 Business Performance & Market Update
Slide 7: Business Snapshot
Business Snapshot Leading intellectual property Group in Asia-Pacific For personal use only 450+ 5 14 Employees Brands Offices 65 Principals 107 Professional staff 286 Support staff 6 Countries 9K+ 22% #1 Patent group in 16K+ Clients Patent market share in Australia & Patent filings3 Australia 1 Sin
Slide 8: Patent Market – Australia
Patent Market – Australia IPH Group continues to hold No. 1 patent market position in Australia For personal use only Fig. 1: Total patent filings in Australia1 Fig. 2: IPH Group combined market share in Australia2 40,000 36,768 30% 36,382 33,561 31,915 22% 22% 30,000 20% 20,000 15% 11% 10,000 10% 0
Slide 9: Patent Market – Singapore
Patent Market – Singapore IPH Group continues to hold No. 1 patent market position in Singapore For personal use only Fig. 3: Total patent filings in Singapore1 Fig. 4: IPH Group market share in Singapore2 12,000 10,814 10,951 30% 10,312 9,722 25% 24% 10,000 24% 23% 8,000 20% 6,000 4,000 10% 2,000 0
Slide 10: Patent Market – Asia
Patent Market – Asia Case transfers validate Asian network offering For personal use only Fig. 5: Total patent filings in key jurisdictions in Asia (ex-China)1 Fig. 6 Total patent filings by IPH Asian entities (all countries)2 70 7000 6,394 6,091 Thousands 54,465 56,840 5,715 60 49,798 52,977 6000 5
Slide 11: Filings by IPH companies
Filings by IPH companies Unparalleled volume of filings to underpin future earnings growth For personal use only Fig. 7: Patent filings by IPH group1 Fig. 8: Trademark filings by IPH group1 20,000 6,000 5,535 16,436 16,564 16,000 4,500 4,020 11,448 12,000 3,000 2,438 8,000 4,000 1,500 0 0 FY15 FY16
Slide 12: Data & Analytics Software
Data & Analytics Software Focus on marketing and sales For personal use only 1. Revenue Model (SaaS business) 3. Key results Revenue is generated from the sale of products directly or All products are being promoted for sale. through a third party under an annual subscription licence In FY17 Pra
Slide 13: Acquisitions Update
For personal use only Acquisitions Update
Slide 14: Acquisitions Update
Acquisitions Update Disciplined approach to M&A For personal use only Hong Kong/China IPH’s first international acquisition - Ella Cheong Hong Kong & Beijing in October 2016. 1 An excellent platform for Spruson & Ferguson to expand the provision of its services for existing and new clients in Gr
Slide 15: FY Financial Results
For personal use only FY 17 Financial Results
Slide 16: Underlying Revenue & EBITDA
Underlying Revenue & EBITDA Acquisitions, expansion & organic growth have delivered significant increases in Revenue & EBITDA For personal use only Revenue Revenue EBITDA EBITDA #039;m Chg% Chg% FY17 FY16 FY17 FY16 Australian IP 123.2 101.7 21% 50.6 42.3 20% Asian IP 68.6 60.3 14% 29.6 26.9 10% 191.8 1
Slide 17: Underlying NPAT & EPS
Underlying NPAT & EPS NPAT increased by 9%; EPS increased by 2% For personal use only FY17 Statutory FY16 Statutory Year ended Underlying Underlying Income Adjustments Income Adjustments 30 June 2017 Earnings FY17 Earnings FY16 Statement Statement #039;m Total revenue 186.0 186.0 157.5 157.5 Recoverabl
Slide 18: Revenue & EBITDA FY13 – FY17
Revenue & EBITDA FY13 – FY17 For personal use only Underlying Revenue #039;m Underlying EBITDA #039;m Australia IP Asia IP New Businesses Australia IP Asia IP New Businesses Data & Analytics Serv Corp & Interco Data & Analytics Serv Corp & Interco 186.0 71.6 157.5 0.7 65.0 10.1 0.4 33.2 12.4 27.2 37.7 42.
Slide 19: Like vs Like Revenue & EBITDA
Like vs Like Revenue & EBITDA EBITDA growth in IP businesses For personal use only Average Year End Underlying Adjusted Revenue New Currency Revenue Revenue Revenue Chg% Currency 4 AUD/USD AUD/USD #039;m Businesses 1 Adjustment 2 FY163 FY17 FY17 FY16 0.7286 0.7426 HY17 0.7544 0.7227 FY17 0.7545 0.7692
Slide 20: Cash flow Statement
Cash flow Statement High cash conversion For personal use only FY17 FY16 Year ended 30 Jun 2017 Cash Flow Cash Flow Commentary Statement Statement #039;m Minimal working capital requirements. Statutory EBITDA 68.7 59.5 High proportion of earnings are converted to cash. Non-cash movements 0.1 1.6 Ch
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Strong balance sheet For personal use only Balance Sheet Balance Sheet Commentary as at 30 Jun 2017 as at 30 Jun 2016 #039;m $24.4m cash Cash and cash equivalents 24.4 58.7 Trade and other receivables 38.0 38.0 No bank borrowings Other current assets 3.5 3.7 Undrawn ban
Slide 22: Impact of Foreign Currency
Impact of Foreign Currency For personal use only Earnings Currency Sensitivity Balance Sheet Sensitivity Based on the USD profile in FY17, a 1c movement in the The Group is also exposed to FX on the level of its USD AUD/USD exchange rate equates to approximately $950k denominated cash and receiv
Slide 23: Growth & Outlook
For personal use only Growth & Outlook
Slide 24: Growth & Outlook
Growth & Outlook Primed for organic growth For personal use only Australia Asia The Group’s Australian businesses are expected to Expected filing growth trends in the region normalising back to revert to growth rates in line with the underlying pre-AIA levels. market trends experienced in recent
Slide 25: Appendices
For personal use only Appendices
Slide 26: IPH Limited Overview
IPH Limited Overview For personal use only IPH Limited (“IPH”) listed on the ASX in November 2014. On 11 March 2016 IPH was included in the S&P/ASX 200 index. IPH is the holding company of Spruson & Ferguson, Fisher Adams Kelly Callinans, Pizzeys, Cullens and Practice Insight employing a highly
Slide 27: Business Model - IPH's IP service firms
Business Model - IPH’s IP service firms For personal use only Clients: Fortune Global 500 companies, multinationals, public sector research organisations, SMEs and professional services firms worldwide. Majority of clients are from USA, Europe and Japan. Long-standing clients. Service Lines: I
Slide 28: IPH Organisational Structure (simplified)
IPH Organisational Structure (simplified) For personal use only 28
Slide 29: America Invents Act (AIA) Overview
America Invents Act (AIA) Overview The Leahy-Smith America Invents Act (AIA) was signed on 16 September 2011 introducing a number of significant reforms to US For personal use only patent law. Some of the most significant provisions of AIA went into effect on 16 March 2013, including those conve
Slide 30: IPH Corporate Information
IPH Corporate Information For personal use only Directors Ordinary Shares on Issue Number Holders % Mr. Richard Grellman AM - Chairman Free float, incl. 179,994,496 14,057 94% - FAKC (28 May 17) 2,515,380 8 Mr. David Griffith - Managing Director - PI (30 April 17) 591,979 4 Ms Robin Low Escrowed. in
Slide 31: Investment Highlights
Investment Highlights IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“SF”), Fisher Adams Kelly Callinans (“FAKC”), Pizzeys, For personal use only Cullens and Practice Insight (“PI”). SF, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia-Pacific; top-t
Slide 32: Investment Highlights (continued)
Investment Highlights (continued) For personal use only Experienced Strong board with complementary skill sets. Board, Long standing, experienced management team. 6 management Highly qualified and experienced professional IP team. & personnel A number of senior professional promotions across