Iph Ltd. · ASX:IPH

Iph — FY2017 Earnings Presentation

32 slides from Iph's earnings presentation, Aug 17, 2017

  1. 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

  2. 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

  3. Slide 3: FY17 Highlights

    For personal use only FY17 Highlights

  4. 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

  5. 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

  6. Slide 6: FY17 Business Performance & Market Update

    For personal use only FY17 Business Performance & Market Update

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. Slide 13: Acquisitions Update

    For personal use only Acquisitions Update

  14. 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

  15. Slide 15: FY Financial Results

    For personal use only FY 17 Financial Results

  16. 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

  17. 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

  18. 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.

  19. 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

  20. 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

  21. 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

  22. 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

  23. Slide 23: Growth & Outlook

    For personal use only Growth & Outlook

  24. 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

  25. Slide 25: Appendices

    For personal use only Appendices

  26. 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

  27. 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

  28. Slide 28: IPH Organisational Structure (simplified)

    IPH Organisational Structure (simplified) For personal use only 28

  29. 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

  30. 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

  31. 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

  32. 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

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