Slide 1: HY22 Investor Presentation ASX cover announcement
17 February 2022 HY22 Investor Presentation Attached is a copy of the IPH Limited HY22 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: 2022 Half Year Results Investor Presentation
2022 Half Year Results Investor Presentation Half year ended 31 December 2021 17 February 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 HY22 highlights 05 2 HY22 results 07 3 Market update 14 4 Delivering on our strategy 19 5 Looking ahead for FY22 22 6 Appendix 26 www.iphltd.com.au 2022 Half Year Results Investor Presentation 3
Slide 5: About the IPH Group
About the IPH Group Asia-Pacific’s leading IP professional services group 1) Approximate employee numbers across the Group. 2) Management estimated market share based on patent filing data: Australia (IP Australia) – 1H FY22 as at 18/1/22; Singapore (IPOS) – CY21 (preliminary) as at 2/2/22; New Zeal
Slide 6: HY22 highlights
01 HY22 highlights www.iphltd.com.au 2022 Half Year Results Investor Presentation 5
Slide 7: Strong financial performance enhances platform for growth
Strong financial performance enhances platform for growth Asian filing growth buoyant Underlying EBITDA1 $68.3m 11% Continued growth in client referrals into IPH Asian hubs4 17% Like for like EBITDA2 5% Growth in filings in key Asian jurisdictions5 16% 4% Interim Dividend3 Successfully completed 14.
Slide 8: HY22 results
02 HY22 results www.iphltd.com.au 2022 Half Year Results Investor Presentation 7
Slide 9: Double-digit underlying growth
Double-digit underlying growth Organic growth and synergy capture drives earnings improvement Revenue Cash Conversion – 1H22 $191.4m 6% $47.3m operating cashflow 111% 3% 11% EBITDA Underlying EBITDA1 $54.9m $68.3m Statutory NPAT $24.6m 8% Underlying NPAT1 $43.2m 15% Diluted EPS 11.2 cents per share
Slide 10: Continued momentum in like-for-like earnings growth
Continued momentum in like-for-like earnings growth Double digit growth in Asia with continued margin accretion Australia – New Zealand Asia Group Revenue 1% Revenue 9% Revenue 3% EBITDA 5% EBITDA 10% EBITDA 5% EBITDA margin 4% EBITDA margin 1% EBITDA margin 2% Note: Like for like Revenue and Underl
Slide 11: Underlying Results
Underlying Results Underlying EBITDA $68.3m up 11% Half Year ended HY22 Statutory Underlying HY21 Statutory Underlying Adjustments Adjustments 31 December 2021 Income Statement Earnings HY222 Income Statement Earnings HY21 Total revenue 191.4 191.4 179.8 179.8 Recoverable expenses (51.0) (51.0) (52.
Slide 12: Cash flow statement
Cash flow statement Half Year ended 31 December 2021 HY22 Cash Flow Statement HY21 Cash Flow Statement Excellent cashflow generation with cash conversion of >100% Statutory EBITDA 54.9 56.7 Non-cash movements • Cash conversion of greater than 100% reflects strong collection of FY21 receipts. Change
Slide 13: Balance sheet
Balance sheet Balance Sheet as at 31 Dec 2021 Balance Sheet as at 30 Jun 2021 Strong financial position provides Cash and cash equivalents 76.0 71.2 capacity for growth investments Trade and other receivables 70.3 83.4 Other current assets 25.3 10.4 • Cash movement includes dividend ($28.7m). Total
Slide 14: Foreign currency sensitivity
Foreign currency sensitivity Earnings currency Balance sheet Operating expenses Service Charges sensitivity sensitivity • Based on the USD profile in FY21 in • The Group is also exposed to FX on Other the IPH Group, a 1c movement in the level of its USD denominated NZD 6% the AUD/USD exchange rate c
Slide 15: Market update
03 Market update www.iphltd.com.au 2022 Half Year Results Investor Presentation 14
Slide 16: Patent market – Australia
Patent market – Australia Australian patent market rebounds with strong growth 45000 45.0% Australian patent 42,034 IPH Group market share filings – market1 40000 (excluding innovation patents)2 40.0% 38.1% 36,310 36,628 36,408 36.2% • Australian patent market 35000 • IPH Group's filings increased b
Slide 17: Patent market – Singapore
Patent market – Singapore Maintains #1 position with growth in market share and filings 16,000 16000 Singapore patent IPH Group 30.0% 14,028 14,156 filings – market1 14,000 13,117 14000 market share2 25.0% 24.5% 24.2% • Singapore patent market • Based on preliminary data for 23.3% 23.0% 23.0% increa
Slide 18: IPH patent filings – Asia
IPH patent filings – Asia1 Growth in key jurisdictions in Asia up 16% • IPH increased filings across these 500 24.7% key jurisdictions (outside of 13.5% Singapore) by 16.2%. 450 • IPH patent filings in China 16.9% 400 increased by 16.9% • Network continues to be attractive 350 to large clients. In 1
Slide 19: Trade mark market – Australia
Trade mark market – Australia Applied Marks shows strong growth 25.0% IPH Group 80,000 Australian trade mark 23.5 filings – market (excl. 70,000 69,242 market share3 21.3% 63,537 Int’l Registrations)1 58,319 58,734 • IPH trade mark filings in Australia 20.0% 20.0% 6.0% 60,000 increased by 4.0% in 1H
Slide 20: Delivering on our strategy
04 Delivering on our strategy www.iphltd.com.au 2022 Half Year Results Investor Presentation 19
Slide 21: Strong results in Asia show organic growth
Strong results in Asia show organic growth1 Network referrals up 17% • IPH patent filings in China increased by 16.9%. • IPH patent filings in Singapore increased by 13.4% and market share grew to 24.2%.2 • Growth in all key Asian jurisdictions, except Hong Kong, with patent filings (outside of Sing
Slide 22: Largest IP firm in Australia positioned for growth
Largest IP firm in Australia positioned for growth Integration of Spruson & Ferguson and Shelston IP completed in December 2021 • Spruson & Ferguson (Australia) and Shelston IP integration announced in September 2021. • Integration completed in December 2021 and now operating as a fully integrated f
Slide 23: Looking ahead for FY22
05 Looking ahead for FY22 www.iphltd.com.au 2022 Half Year Results Investor Presentation 22
Slide 24: Summary and Priorities for FY22
Summary and Priorities for FY22 Harnessing the network and enhancing our digital capability for future growth • Demonstrated ability to drive integrated businesses to deliver margin accretion and earnings growth. • Investment in business development focusing on international capability to support fi
Slide 25: www.iphltd.com.au 2022 Half Year Results Investor Presentation
www.iphltd.com.au 2022 Half Year Results Investor Presentation 24
Slide 26: Thank you
Thank you iphltd.com.au www.iphltd.com.au
Slide 27: Appendix
06 Appendix www.iphltd.com.au 2022 Half Year Results Investor Presentation 26
Slide 28: Like for Like Revenue and EBITDA
Like for Like Revenue and EBITDA 5% increase in like for like EBITDA from strong organic growth in Asia and synergies in Australia/NZ Underlying New Accounting Currency Adjusted Underlying Chg% Revenue Dec 21 Businesses FX Movements Adjustment Revenue Dec 21 Revenue Dec 20 Australia & NZ IP 144.1 (3
Slide 29: Patent market trends
Patent market trends CAGR (FY06 to FY21) = 1.6% Australian Patent Filings1 CAGR Post-GFC (FY10 to FY21) = 2.6% US PCT Applications2 CAGR 15 Yr (CY05 to CY20) = 1.5% CAGR Post-GFC (CY10 to CY20) = 2.6% 70000 Phase 60000 out of innovation 50000 patent 40000 45,000 Raising the bar 30000 40,000 20000 10
Slide 30: Revenue and EBITDA
Revenue and EBITDA Underlying Revenue $’m Underlying EBITDA $’m 124.3 369.4 363.5 114.5 5.1 2.7 0.4 22.5 17.8 110.4 89.7 43.4 256.6 96.1 2.4 74.0 226.0 0.5 43.6 68.3 15.2 6.1 1.2 191.4 38.6 0.8 38.1 102.7 0.2 93.5 3.8 30.5 24.4 73.6 52.8 253.2 88.2 69.1 167.2 59.4 156.4 140.3 48.7 50.7 121.7 (2.7) (
Slide 31: 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