Iph Ltd. · ASX:IPH
Iph — Investor Presentation (February 2023)
30 slides from Iph's investor presentation, Feb 16, 2023
Slide 1: HY23 Investor Presentation
16 February 2023 HY23 Investor Presentation Attached is a copy of the IPH Limited HY23 Investor Presentation. An analyst/shareholder briefing will be held at 10.30am (AEDT). The briefing will be webcast and accessible on the IPH website at www.iphltd.com.au. For more information, please contact: Mar
Slide 2: 2023 Half Year Results Investor Presentation
2023 Half Year Results Investor Presentation Half year ended 31 December 2022 Presented by: Dr. Andrew Blattman Managing Director & CEO, IPH Limited John Wadley Chief Financial Officer, IPH Limited iphltd.com.au
Slide 3: 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 4: Contents
Contents 1 HY23 highlights 5 2 HY23 results 7 3 Market update 14 4 Delivering on our strategy 18 5 Looking ahead for FY23 21 6 Appendix 25 www.iphltd.com.au 2023 Half Year Results Investor Presentation 3
Slide 5: 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 (1H FY23 as at 24/01/23), Singapore (CY22 YTD Sep as at 25/01/23), New Zealand (1H FY23 as at 27/01/23)
Slide 6: HY23 highlights
01 HY23 highlights www.iphltd.com.au 2023 Half Year Results Investor Presentation 5
Slide 7: Continued momentum in acquisition and integration strategy
Continued momentum in acquisition and integration strategy Successful acquisition of Smart & Biggar assists in 24% increase in underlying EBITDA Underlying EBITDA1 $80.4m 24% Integrating Smart & Biggar into the IPH network Continued double-digit growth in Asia like-for-like earnings2 10% Strengtheni
Slide 8: HY23 results
02 HY23 results www.iphltd.com.au 2023 Half Year Results Investor Presentation 7
Slide 9: Financial highlights
Financial highlights Underlying Result assisted by Smart & Biggar contribution, currency benefit, and continued organic growth in Asia Revenue1 $226.9m 19% Half year dividend (15.5 cents per share)2 7% EBITDA $71.3m 30% Underlying EBITDA3 $80.4m 24% Statutory NPAT $28.5m 16% Underlying NPAT3 $48.6m
Slide 10: Like-for-like earnings
Like-for-like earnings Double digit growth in Asia with continued margin accretion offset by AU/NZ Australia – New Zealand Asia Group Revenue 3% Revenue 9% Revenue Steady EBITDA 6% EBITDA 10% EBITDA Steady EBITDA margin 3% EBITDA margin 2% EBITDA margin Steady Note: Like-for-like Revenue and Underly
Slide 11: Underlying results
Underlying results Adjustments Business acquisition costs Millions 7.8 Underlying EBITDA $80.4m up 24% assisted by currency benefit and organic growth in Asia Restructuring Expenses 0.8 SaaS Implementation 0.5 9.1 HY23 Statutory Underlying Adjustments Income Statement Earnings HY233 • Business acqui
Slide 12: Cash flow statement
Cash flow statement HY23 Cash Flow Statement HY22 Cash Flow Statement Continued strong cash flow Statutory EBITDA 71.3 54.9 • Cash conversion remains high at 85%. This is lower than the comparative period due to Non-cash movements 1.8 9.3 the following non-cash items in the prior period: Change in w
Slide 13: Balance sheet
Balance sheet Balance Sheet as at 31 Dec 2022 Balance Sheet as at 30 Jun 2022 Cash and cash equivalents 92.2 88.4 Growth in balance sheet following acquisition of Smart & Biggar Trade and other receivables 125.1 92.8 Other current assets 25.7 15.2 Total current assets 243.0 196.4 • As a result of th
Slide 14: Foreign currency sensitivity
Foreign currency sensitivity Earnings currency Balance sheet Service charges4 Operating expenses4 sensitivity sensitivity Other • Based on the USD profile in HY23 in the • The Group is also exposed to FX on 5% SGD IPH Group, a 1c movement in the the level of its foreign denominated 15% AUD/USD excha
Slide 15: Market update
03 Market update www.iphltd.com.au 2023 Half Year Results Investor Presentation 14
Slide 16: Patent market – Australia
Patent market – Australia Lower filings in 1H23 compared to very strong filings growth in 1H22 45.0% Australian patent IPH Group market share 45,000 42,034 41,037 38.1% filings – market1 40,000 (excl. innovation patents)2 40.0% 36.2% 36,628 36,408 34.0% • Australian patent market • IPH Group's filin
Slide 17: Patent market – Singapore
Patent market – Singapore IPH maintained number one patent market share Singapore patent IPH Group 16,000 30.0% 14,353 filings – market1 14,000 14,028 13,117 market share2 25.0% 24.0% • Singapore patent market • IPH maintains number one market 23.3% 23.4% 23.0% 23.0% decreased 3.0% in CY22 YTD 12,00
Slide 18: IPH patent filings – Asia
IPH patent filings – Asia1 Growth in key jurisdictions in Asia offset by decline in China 600 • Patent filings in Asia1 are overall flat compared to 1H22. • IPH patent filings in China down by 22%. 500 • IPH patent filings in Malaysia are up 16%, Hong Kong up 13%, Indonesia up 5%. 400 • Network cont
Slide 19: Delivering on our strategy
04 Delivering on our strategy www.iphltd.com.au 2023 Half Year Results Investor Presentation 18
Slide 20: Successfully integrating Smart & Biggar into IPH
Successfully integrating Smart & Biggar into IPH Canada enhances global offering and network effect Acquired Smart & Biggar on 6 October 2022. Revenue and earnings performing to date consistent with expectations. Smart & Biggar has contributed A$10.6m in EBITDA since it was acquired. Expected cost s
Slide 21: Digital transformation including IPH Way
Digital transformation including IPH Way Focus on standardised processes and client-centric digital solutions The IPH Way Program underway to standardise, simplify and automate case management processes, templates, and systems to bring efficiencies and establish one way of working across the group's
Slide 22: Looking ahead for FY23
05 Looking ahead for FY23 www.iphltd.com.au 2023 Half Year Results Investor Presentation 21
Slide 23: Summary and Priorities for FY23
Summary and Priorities for FY23 Harnessing the network and enhancing our digital capability for future growth Focus on Australian / NZ business to drive organic revenue growth Continue integration of Smart & Biggar into the IPH Group Continue to deliver on digital strategy to enhance client service
Slide 24: www.iphltd.com.au 2023 Half Year Results Investor Presentation
www.iphltd.com.au 2023 Half Year Results Investor Presentation 23
Slide 25: Thank you
Thank you iphltd.com.au www.iphltd.com.au
Slide 26: Appendix
06 Appendix www.iphltd.com.au 2023 Half Year Results Investor Presentation 25
Slide 27: Like-for-like revenue and EBITDA
Like-for-like revenue and EBITDA Strong organic growth in Asia Underlying New Businesses Accounting Currency Adjusted Underlying Chg% Revenue Dec 22 & Disposals FX Movements Adjustment Revenue Dec 22 Revenue Dec 21 Australia & NZ IP 142.8 0.7 (3.8) 139.7 144.1 (3%) Asian IP 59.6 1.2 (3.3) 57.5 52.8
Slide 28: Patent market trends
Patent market trends CAGR 15 Yr (FY07 to FY22) = 1.1% CAGR 15 Yr (CY06 to CY21) = 1.0% Australian Patent Filings1 CAGR Post-GFC (FY10 to FY22) = 2.2% United States PCT Applications2 CAGR Post-GFC (CY10 to CY21) = 2.5% 70,000 45,000 60,000 50,000 40,000 40,000 30,000 35,000 20,000 10,000 30,000 0 200
Slide 29: Revenue and EBITDA
Revenue and EBITDA Underlying Revenue $’m Underlying EBITDA $’m 0.6 2.7 0.8 0.4 22.5 110.2 110.4 5.1 51.5 96.1 17.8 0.5 43.4 1.2 15.2 0.1 2.4 102.7 30.3 43.6 38.1 10.6 93.5 6.1 38.6 59.6 73.6 30.5 28.2 286.0 253.2 103.5 88.2 156.4 167.2 142.8 69.1 59.4 52.5 121.7 48.7 (2.7) (1.4) (2.3) (0.4) (0.5) (
Slide 30: 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