Slide 1: HY17 Results Presentation
HY17 Results Presentation Half Year Ended 31 December 2016 For personal use only David Griffith - Managing Director, IPH Limited Dr. Andrew Blattman - CEO, Spruson & Ferguson John Wadley - Chief Financial Officer, IPH Limited 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 made materials/slides for a presentation concerning IPH. by IPH that the forward looking statements contained in this
Slide 3: Contents
Contents For personal use only 1. HY17 Highlights 2. HY17 Business Performance & Market Update 3. Acquisitions 4. HY17 Financial Results 5. Outlook 6. Appendices 3
Slide 4: HY17 Highlights
For personal use only 4 1 | HY17 HIGHLIGHTS
Slide 5: Financial Highlights
Financial Highlights Underlying NPAT increase of 17% on HY16 For personal use only Underlying1 NPAT of $26.6m,17% ahead of HY16. Statutory Results (#039;m) HY17 HY16 Chg % Revenue2 Underlying EPS3 of 13.9c, 3% increase on HY16. $93.1 $76.2 22.3% EBITDA $35.1 $29.3 19.8% Australia IP like vs like
Slide 6: Operational Highlights
Operational Highlights Focusing on growth and efficiency improvements For personal use only Key milestones: 1. Australia 3. Acquisitions As a group IPH holds No.1 patent (22% market share) and Ella Cheong Hong Kong and Beijing (Oct 2016) (re-branded as Spruson trademark (13% “qualified” market s
Slide 7: HY17 Business Performance & Market Update
2 | HY17 BUSINESS PERFORMANCE & MARKET UPDATE For personal use only
Slide 8: Patent Market - Australia
Patent Market - Australia IPH and Spruson & Ferguson - No.1 in Australia For personal use only Fig. 1: Total patent filings in Australia1) Fig. 2: IPH market share in Australia1) 40,000 30% 35,000 22% 22% 30,000 25,000 20% 15% 20,000 11% 15,000 10% 10,000 5,000 0 0% FY14 FY15 FY16 FY17 FY14 FY15 FY1
Slide 9: Patent Market - Asia
Patent Market - Asia IPH and Spruson & Ferguson - No.1 in Singapore For personal use only Fig. 3: IPH market share in Singapore1) 30% SF Asia maintains No.1 patent market position in Singapore in 25% CYTD16. 24% 24% 23% Decline in the overall market share is not unexpected. The SF Asia 20% busin
Slide 10: Filings by IPH companies
Filings by IPH companies Strong total patent and trademark filings by IPH companies in 1HY17 For personal use only Fig. 4: Patent filings by IPH group companies in all jurisdictions 1) Fig. 5: Trademark filings by IPH group companies in all jurisdictions 1) 20,000 4,500 16,436 4,020 16,000 11,448 3,
Slide 11: Acquisitions
For personal use only 11 3 | ACQUISITIONS
Slide 12: Acquisitions
Acquisitions IPH makes first international acquisition For personal use only Ella Cheong Hong Kong & Beijing Acquisition Pipeline First international acquisition - Ella Cheong (Hong Kong) The Company continues to evaluate Limited and its subsidiary Ella Cheong Intellectual Property acquisition o
Slide 13: HY17 Financial Results
4 | HY17 FINANCIAL RESULTS For personal use only
Slide 14: Revenue & EBITDA
Revenue & EBITDA Acquisitions have delivered significant increases in Revenue & EBITDA For personal use only Revenue Revenue EBITDA EBITDA Chg% Chg% #039;m HY171 HY161 HY17 HY16 Australian IP 64.1 47.1 36% 26.6 19.4 37% Asian IP 31.8 31.8 - 14.0 15.0 (7%) 95.9 78.9 22% 40.6 34.4 18% Data and Analytics
Slide 15: NPAT & EPS
NPAT & EPS Underlying NPAT increased by 17%; Underlying EPS increased by 3% For personal use only Half-Year ended HY17 HY16 2 31 December 2016 Statutory Underlying Statutory Underlying2 Income Earnings Income Earnings Statement Adjustments HY17 Statement Adjustments HY16 #039;m Total revenue 93.1 93.1
Slide 16: Revenue & EBITDA FY13 – HY17
Revenue & EBITDA FY13 – HY17 For personal use only 1. Revenue in FY16 & HY17 includes the gross amount of the reimbursement by clients of official filing fees paid to national bodies. Previously these fees were recorded on a net basis. FY16 revenue has been increased as follows: Australia IP $8.4m;
Slide 17: Like vs like Revenue & EBITDA
Like vs like Revenue & EBITDA Underlying growth in line with market trends For personal use only Underlying Adjusted Currency 3 AUD/USD Revenue New Currency Revenue HY17 0.7544 Revenue Revenue Chg% #039;m Businesses 1 Adjustment 2 HY16 HY16 0.7232 HY17 HY17 AUD/EUR Aus tralian IP 64.0 (16.3) 0.7 48.5 4
Slide 18: Cash flow Statement
Cash flow Statement High cash conversion For personal use only Year ended HY17 HY16 31 Dec 2016 Cash Flow Cash Flow Statement Statement #039;m Minimal working capital requirements. Statutory EBITDA 35.1 29.3 High proportion of earnings are converted to Non-cash movements (0.5) 2.8 cash. Change in w
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Strong balance sheet For personal use only Statutory Statutory Balance Sheet Balance Sheet $32.2m cash as at 31 Dec 2016 as at 30 Jun 2016 #039;m Cash and cash equivalents 32.2 58.7 No bank borrowings Trade and other receivables 41.4 38.0 Other current assets 4.4 3.7 Un
Slide 20: Earnings Currency Sensitivity
Earnings Currency Sensitivity For personal use only Revenue net of Recoverable Expenses Operating Expenses Other SGD 3% 6% EUR 5% SGD 33% USD AUD AUD 56% 67% 30% A 1c movement in the AUD USD exchange rate equates to approximately $650k of revenue on services charges The Group is also exposed to
Slide 21: Outlook
For personal use only 5 | OUTLOOK
Slide 22: FY17 Outlook
FY17 Outlook Expect FY17 results in line with Guidance For personal use only At the 2016 AGM, the group provided the following guidance regarding the FY17 outcome: “The Board expects to report full year underlying earnings before interest tax depreciation & amortisation (EBITDA) of between $72 and 7
Slide 23: Appendices
For personal use only 23 6 | APPENDICES
Slide 24: IPH Limited - Overview
IPH Limited - Overview For personal use only IPH Limited (“IPH”) is the holding company of Spruson & FAKC - established over 30 years ago and is a leading firm Ferguson (“S&F”), Fisher Adams Kelly Callinans (“FAKC”), in Queensland, in late 2015 acquired Melbourne based Pizzeys, Practice Insight
Slide 25: Revenue Snapshot
Revenue Snapshot1 Highly diversified client base, annuity style client relationships. The majority of revenue derives from patent business. For personal use only Revenue split by Revenue split by Revenue split by Service Line Geographical Location Client 2% 5% 11% 2% 9% 35% 65% 84% 87% Australia Asi
Slide 26: IPH Organisational Structure (simplified)
IPH Organisational Structure (simplified) For personal use only 26
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. Largest client1 – 2%. Long-standing c
Slide 28: Corporate Information
IPH Limited Corporate Information For personal use only Directors Ordinary Shares on Issue1 Number Holders % Mr. Richard Grellman AM - Chairman Free float 176,710,734 13,805 92% Mr. David Griffith - Managing Director Escrowed2 14,860,336 132 8% Total 191,571,070 13,937 100% Ms Robin Low Dr Sally Pit
Slide 29: Investment Highlights
Investment Highlights For personal use only 1 IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”), Fisher Adams Kelly Callinans (“FAKC”), Pizzeys, Cullens and Practice Insight (“PI”). S&F, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia-Pacific; t
Slide 30: Investment Highlights (cont'd)
Investment Highlights (cont’d) For personal use only 6 Experienced Strong board with complementary skill sets. Board, Long standing, experienced management team. management & Highly qualified and experienced professional IP team. personnel A number of senior professional promotions across th