Tribal Group Plc · LSE:TRB
Tribal — H1 2018 Earnings Presentation
34 slides from Tribal's earnings presentation, Aug 16, 2018
Slide 1: 2018 Half Year Results
Empowering the world of education 2018 Half Year Results 16th August 2018
Slide 2: Introductions
Introductions Presenting Today Ian Bowles Mark Pickett CEO CFO • Joined in February 2016 • Joined in June 2016 • Prior to Tribal, served as CEO of Allocate Software, COO of • Prior to Tribal, served as UK CFO of Computer Sciences Corp, Clearswift, SVP International Operations of Chordiant and Genera
Slide 3: 2018 Half Year Update
2018 Half Year Update Ian Bowles CEO 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 3
Slide 4: Tribal's Vision and Mission
Tribal’s Vision and Mission Vision To empower the world of education Mission Provide the expertise, software and services required by education and business organisations worldwide to underpin student success 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 4
Slide 5: Our Portfolio
Our Portfolio Multi-faceted, broad portfolio of software solutions complemented with best-in-class services to empower the world of education Student Information Systems (SIS) 71% Quality Assurance Solutions (QAS) 21% • Complementary highly recognised service offering; review Tribal’s core software
Slide 6: Core Software Offering: Student Information Systems
Core Software Offering: Student Information Systems Trusted Student Information System software solutions with leading market position in UK, Australia and New Zealand Student Information Systems SIS Revenue Contribution & Split • #1 SIS system in the UK, Australia and New Zealand • Functionality-ri
Slide 7: Financial Key Points
Financial Key Points Core revenue Adjusted operating profit Statutory profit Annually recurring revenue Adjusted operating margin Statutory profit per share Cash conversion Net cash Committed income 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 7
Slide 8: H1 2018 Financial Results
H1 2018 Financial Results Demonstrate − Strategy and Focus are Delivering Results as planned − Fifth Consecutive period of core Growth and positive financial results − We are gaining market share in our territories, since 2016 • Higher Education − Five Competitive Displacements − Four Home Grown d
Slide 9: Financial Report
Financial Report Mark Pickett CFO 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 9
Slide 10: CFO Summary
CFO Summary 6 months ended 30 June 2018 Revenue Adjusted Operating Profit* Net Cash £42.0m £6.3m £9.2m 2018 £42.0m 2018 £6.3m 2018 £9.2m 2017 £44.2m 2017 £5.0m 2017 £5.5m down 4.9% up 27% up 67% Core revenue has grown 0.5%, excluding final Ofsted Early Years contract, concluded in March 2017 FX
Slide 11: Financial Key Points (core business)
Financial Key Points (core business*) Revenue Adjusted operating profit Statutory profit £42.0m £6.3m £2.9m 2017 £41.8m* up 0.5% 2017 £4.0m* up 55% 2017 £1.6m up 83% Annually recurring revenue Adjusted operating margin Statutory profit per share £18.9m 15.0% 1.4p improved 2017 £19.0m down 0.8% 2017
Slide 12: Segment Results
Segment Results* 2017 Growth % Revenue (£m CC) Operating Profit (£m CC) Revenue (£m) 2018 2017 (ConCurr) (ConCurr) 45 14 2.4 40 - Student Management Systems 29.1 28.9 28.1 4% 9.5 12 0.9 35 8.5 2.3 QAS (excl Ofsted) 9.6 8.7 8.5 12% 10 2.5 30 4.1 3.3 0.8 i-graduate (& Other) 3.3 4.2 4.1 (20)% 0.2 25 8
Slide 13: Adjusted EBITDA and IFRS 15
Adjusted EBITDA and IFRS 15 IFRS 15 was adopted from 1 January 2018 The effect of IFRS 15 is to spread the IFRS 15 impact recognition of the License revenue on a percentage complete basis over the period of implementation, rather than it being recognised upfront In H1 2018, there is £0.1m favourable
Slide 14: Committed Income
Committed Revenue Total Committed Revenue £122.5m (FY17: £121.1m) Increased of 0.3% on 2017 £122.5m ~ 70% of next 12 months’ consensus revenue 10.6 committed > 90% of 2018 full year revenue was recognised or committed by 30 June 2018 Committed Income (£m) Key Student Management System contract
Slide 15: Cashflow
Cashflow Net cash H1 2018 FY 2017 H1 2017 £9.2m Operating Cashflows 8.0 10.9 6.7 2017 £5.5m up 67% Working Capital movements (6.3) 0.1 (5.9) Operating cashflow (before tax) Tax paid (1.2) 0.1 (0.1) Net Operating Cash 0.5 11.1 0.7 £1.7m 2017 £0.8m up £0.9m Capital expenditure (2.4) (4.3) (2.9) Deferr
Slide 16: CEO Summary
CEO Summary Ian Bowles CEO 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 16
Slide 17: Seasoned and Committed Management Team
Seasoned and Committed Management Team Comprehensive and highly talented management team with significant experience and achievements to date Ian Bowles Mark Pickett Jon Baldwin Mark Wilson Peter Croft CEO CFO Managing Director Managing Director Managing Director Higher Education EMEA Further Educat
Slide 18: Highly Actionable Organic Growth Strategy
Highly Actionable Organic Growth Strategy Clear organic growth opportunities across geographies and business units • Significant growth opportunities across SIS, i-graduate and QAS Expertise in Products & Services • Continued development of new software and service offerings including cloud services
Slide 19: Track Record of Executing a Plan to Refocus the Business
Track Record of Executing a Plan to Refocus the Business Management has implemented effective operational initiatives to refocus on the core business and drive profitability through improved efficiency Delivered by Current Management Team Refreshed Accountability, Revised Strategy and Resolved Probl
Slide 20: Conclusion
Conclusion The market leading platform for Higher Unique value proposition with a broad and Cutting edge, modular, cloud-based SMS Education, Further Education and schools across complementary portfolio of software and solution which is highly scalable multiple geographies education services Extensi
Slide 21: Appendix
Appendix 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 21
Slide 22: Our Goal remains unchanged
Our Goal remains unchanged World-class software & services company International market leading educational management solutions provider Valued by − Customers − Staff − Shareholders 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 22
Slide 23: Heightened Demand and Evolving Customer Needs in Education Technology
Heightened Demand and Evolving Customer Needs in Education Technology Creates a Distinct Demand for Solutions The education industry is in search of superior software to improve recruiting and operational efficiencies The Needs of the Education Industry are Rapidly Evolving… …Creating Additional Dem
Slide 24: Student End-to-End Lifecycle
Student Information Systems Student End-to-End Lifecycle Assessments Examinations Learning and Applications Registration Graduation Enquiries Studying Curriculum Management Offer Alumni Management Marketing Student Support CRM Learning Analytics Student Experience Mobile and Single Portal 16 August
Slide 25: Student Information Systems Strategy
Student Information Systems Strategy Further Education / Employment & Schools Higher Education Vocational Education Work Based Learning Lifelong Learning Journey Tribal SchoolEdge Tribal Edge Tribal Maytas A student’s lifelong learning journey underpinned by Tribal Student Information Systems 16 Aug
Slide 26: Tribal Edge: Cutting Edge, Modular, Cloud-based SIS Platform
Tribal Edge: Cutting Edge, Modular, Cloud-based SIS Platform Next generation Student Information Platform to support and manage students throughout their journey from recruitment to employment Overview and Key Benefits Student View Tribal’s new, SaaS-based Student Information Platform • A personalis
Slide 27: Tribal's Complementary Solutions: QAS
Tribal’s Complementary Solutions Provide unique insights and unparalleled support for education institutions to identify strengths and opportunities for improvement QAS (Quality Assurance Solutions) • Partnering with national and state government departments to improve quality of teaching and enhanc
Slide 28: Tribal's Complementary Solutions: i-graduate
Tribal’s Complementary Solutions Strong portfolio of service offerings built upon unique market insights from long standing customer relationships i-graduate (Analysis & Benchmarking) Other Historic Lines of Business • Analysis and benchmarking tools help institutions identify and understand opportu
Slide 29: Student Management Systems
Student Management Systems 18 H1 2017 Growth % Revenue in Constant Currency Student Management H1 2018 H1 2017 16 (Constant (Constant Systems (£m) Actuals Actuals Currency) Currency) 14 12 License & Development fees 4.8 4.3 4.2 15% 10 8 Support & Maintenance fees 15.6 15.8 15.2 3% 6 4 Implementation
Slide 30: 3 Year Core Segment Results in constant currency
3 Year Core Segment Results in constant currency Segment Revenue excl discontinued businesses Segment Profit excl discontinued businesses in Constant Currency in Constant Currency 45.0 14.0 £6.3m 12.0 £3.6m 40.0 35.0 10.0 £(2.6)m 30.0 8.0 25.0 6.0 20.0 4.0 15.0 2.0 10.0 0.0 5.0 2016 Revised 2017 Rev
Slide 31: Consolidated Income Statement
Consolidated Income Statement H1 2018 H1 2017 FY 2017 £m £m £m Revenue 42.0 44.2 84.9 Gross profit margin 50% 42% 50% Adjusted operating profit 6.3 5.0 8.5 Adjusted operating profit margin 15.0% 11.2% 10.1% Other Items (2.1) (2.5) (4.8) Statutory operating profit/(loss) 4.2 2.5 3.7 Finance costs (0.
Slide 32: Other Items
Other Items H1 2018 H1 2017 FY 2017 £m £m £m Share based payment charges 1.1 0.7 1.7 To assist understanding of the underlying performance Restructuring 0.1 0.7 1.0 of the business, certain items are excluded from the IFRS3 amortisation 0.9 1.0 2.0 Adjusted Operating Profit, and included in Other It
Slide 33: Contact
Contact: Email Ian.Bowles@tribalgroup.com Mark.Pickett@tribalgroup.com WWW.TRIBALGROUP.COM @TRIBALGROUP 16 August 2018 Tribal Group plc: 6 months ended 30 June 2018 33
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