Iph Ltd. · ASX:IPH
Iph — FY2018 Earnings Presentation
30 slides from Iph's earnings presentation, Aug 16, 2018
Slide 1: 2018 Full Year Results Investor Presentation
For personal use only 2018 Full Year Results Investor Presentation Year ended 30th June 2018 16th August 2018 Presented by: Dr. Andrew Blattman Managing Director / CEO, IPH Limited John Wadley Chief Financial Officer, IPH Limited www.iphltd.com.au 1
Slide 2: Disclaimer
Disclaimer For personal use only This document has been prepared by IPH Limited (IPH) and comprises written No representation, warranty or assurance (express or implied) is given or materials/slides for a presentation concerning IPH. made by IPH that the forward looking statements contained in this
Slide 3: Financial year 2018 highlights
Financial year 2018 highlights For personal use only 01 3
Slide 4: Operational highlights
Operational highlights Delivering results in key areas of focus in the second half For personal use only Key focus areas for 2nd half FY18 Results for FY18 01 Australian market and IPH patent filings IPH companies out-perform patent filing market 02 Asian revenue and earnings growth Strong second ha
Slide 5: Financial highlights
Financial highlights Strong second half with scope for further improvement For personal use only Revenue 21.5% FY Dividend 2.3% $226m 22.5 cents per share EBITDA 2.1% Underlying EBITDA 3.3% $70.1m $74.0m NPAT 5.2% Underlying NPAT 1.4% $40.7m $51.9m Diluted EPS 7.3% Underlying Diluted EPS 1.1% 20.7 c
Slide 6: Market overview
For personal use only Market 02 overview 6
Slide 7: Patent market - Australia
Patent market - Australia IPH Group filings grew by 5.2% in 2H vs PcP For personal use only 1 2 Australian patent market filings IPH filings and Group market share • IPH Group filings grew by 1.7% in FY18 • Annual decline in market of 0.3% (105 cases), however, the second half growth of • In 2H, IPH
Slide 8: Patent market - Singapore
Patent market - Singapore IPH Group continues to hold number 1 patent market position For personal use only 1 2 Singapore patent market filings IPH filings and Group market share • Overall Singapore market down 1% (99 cases), from CY16 to CY17 • IPH Group filings up 9.7% in CY17 over CY16 • In CYTD1
Slide 9: Patent market - Asia
Patent market - Asia IPH growth driver For personal use only IPH Group filings in key Total patent filings by IPH 1 2 jurisdictions in Asia Asian entities (all countries) • Strong growth exhibited in China (44%) and Indonesia (16%) in FY18 • Filings by IPH Asian entities have grown by 5.6% in FY18 (
Slide 10: Filings by IPH companies
Filings by IPH companies Underpins future earnings and growth For personal use only 1 1 Patent filings by IPH Group Trade mark filings by IPH Group • Total patent filings by IPH companies increased by approximately 17% in FY18 • Significant increase in trade mark filings due to the acquisition of su
Slide 11: FY18 Results
For personal use only FY18 03 Results 11
Slide 12: Revenue and EBITDA
Revenue and EBITDA Strong revenue and earnings growth – organically and by acquisition For personal use only Underlying Revenue $’m Underlying EBITDA $’m Australia IP Australia IP Data & analytics services Data & analytics services Asia IP Asia IP New businesses New businesses Corp & interco Corp &
Slide 13: Like for Like revenue and EBITDA
Like for Like revenue and EBITDA Asia delivers strong 2nd half For personal use only Underlying New Accounting FX Currency Like for Like Underlying YoY H1 H2 Revenue FY18 Businesses Movements Adjustment Revenue Jun 18 Revenue Jun 17 Chg % Australia & NZ IP 155.4 (33.7) (0.9) 1.1 121.9 123.2 (1%) (5%
Slide 14: Underlying NPAT and EPS
Underlying NPAT and EPS For personal use only Year ended 30 June 2018 FY18 Statutory Income Underlying FY17 Statutory Underlying Adjustments Adjustments $'m Statement Earnings FY182 Income Statement Earnings FY17 Total revenue 226.0 226.0 186.0 186.0 Recoverable expenses (66.0) (66.0) (51.0) (51.0)
Slide 15: Cash flow statement
Cash flow statement Cash conversion remains strong despite short term impacts in FY18 For personal use only Commentary Year ended 30 Jun 2018 $'m FY18 Cash Flow Statement FY17 Cash Flow Statement • High proportion of earnings are Statutory EBITDA 70.1 68.7 converted to cash Non-cash movements (0.0)
Slide 16: Balance sheet
Balance sheet Strong balance sheet For personal use only Commentary $'m Balance Sheet as at 30 Jun 2018 Balance Sheet as at 30 Jun 2017 Cash and cash equivalents 26.2 24.4 • $26.2m cash Trade and other receivables 57.1 38.0 • $40.1m of bank borrowings Other current assets 5.3 3.4 Total current asset
Slide 17: Impact of foreign currency
Impact of foreign currency For personal use only Earnings currency Balance sheet Currency profile sensitivity sensitivity SGD AUD 29% • Based on the USD profile in FY18, • The Group is also exposed to FX on 45% a 1c movement in the AUD/USD the level of its USD denominated Operating exchange rate equ
Slide 18: Operations review
For personal use only review 04 Operations 18
Slide 19: Operational highlights
Operational highlights Strengthening and consolidating the IPH Group For personal use only Three firms now operating AJ Park acquisition as Spruson & Ferguson • Outperformance through margin expansion EBITDA NZ$6.25m vs forecast NZ$5.5m • FAKC and Cullens are now fully integrated into the • Business
Slide 20: Focus on our people
Focus on our people Attract, Motivate and Retain For personal use only 2018 Full Year Results Investor Presentation | www.iphltd.com.au 20
Slide 21: Data & analytics software business update
Data & analytics software For personal use only business update 05 21
Slide 22: IP data products divestment
IP data products divestment Focus on WiseTime For personal use only Two IP Data products (“Filing Analytics” and Strategically it was felt that a global organisation with “Citation Eagle”) have been sold to CPA Global on established marketing and software distribution channels 15 August 2018 for A$1
Slide 23: WiseTime
WiseTime Delivery of a new product offering For personal use only About A new autonomous timekeeping platform WiseTime’s Existing time keeping tools in the market tend to rely on a ‘start/stop’ timer or WiseTime that produces accurate records of an competitive ledger that require the employee to spe
Slide 24: Priorities for FY19
Priorities for FY19 For personal use only 06 24
Slide 25: FY19 strategic priorities
FY19 strategic priorities Leverage strong platform to further build position in core IP secondary markets For personal use only Australia and New Zealand IP Data and analytics • Leverage market leading position in Australia software • Continued focus on market share initiatives • Practice Insight Sa
Slide 26: Appendix
For personal use only 07 Appendix 26
Slide 27: Business snapshot
Business snapshot Leading intellectual property group in Asia-Pacific For personal use only 2018 Full Year Results Investor Presentation | www.iphltd.com.au 27
Slide 28: Patent lifecycle
Patent lifecycle Long-life IP cycle supports consistent revenues and earnings For personal use only Each year more than half* of the Typical (indicative) foreign patent application route in Australia total patent applications filed in Australia come through the PCT system in the form of PCT National
Slide 29: IPH corporate information
IPH corporate information Leading intellectual property group in Asia-Pacific For personal use only Directors Ordinary Shares on Issue Number Holders % • Mr. Richard Grellman AM Free float, including 190,362,898 11,274 99.5% Chairman • Cullens (escrow released 30 Jun 18) 2,042,905 10 • Dr. Andrew Bl
Slide 30: Thank you
For personal use only Thank you www.iphltd.com.au 30