Janison Education Group Ltd. · ASX:JAN
Janison Education — H1 FY2019 Earnings Presentation
30 slides from Janison Education's earnings presentation, Mar 11, 2019
Slide 1: FY19 H1 Investor Presentation
For personal use only ASX:JAN FY19 H1 Investor Presentation March 2019
Slide 2: Executive Summary
Executive Summary For personal use only 1. Over the past 20 years we have grown successfully to become a $20m business and recently incubated an Assessment business • $10m revenue in H1 FY19, 18.5% growth on prior corresponding period. • $20m full year FY19 revenue forecast (up from $17m in FY18), f
Slide 3: Agenda
For personal use only Agenda Overview FY19 H1 Results Growth Priorities Outlook 3
Slide 4: Janison is a global education technology pioneer focused on online assessment
Janison is a global education technology pioneer focused on online assessment For personal use only 2018 was the 20th anniversary of Janison’s founding. Listed on the ASX in December 2017 and attracted new high quality shareholders Targeting over $20m in Group Revenue in FY19 Addressable onlin
Slide 5: Assessment has multiple growth opportunities across four key sectors
Assessment has multiple growth opportunities across four key sectors For personal use only Robust and scalable digital 9% assessment solutions for Schools Language Higher Certifications Revenue Growth in H1 FY19 online tests and exams. Education To $5.5m from $5.0m in H1 FY18 Online learning solutio
Slide 6: The Assessment division is entering the growth phase which has required investment
The Assessment division is entering the growth phase which has required investment For personal use only Sales Profit 6 For illustration purposes only
Slide 7: Janison is targeting $110m of the $700m online Assessment market by 2025
Janison is targeting $110m of the $700m online Assessment market by 2025 For personal use only Top-down market analysis Online Assessment Market Sector Test Participants1 Tests per Total Average Addressable Market share Janison stakes participant tests per revenue per market size assumption Revenue
Slide 8: The online Assessment market has attractive dynamics and Janison has a competitive advantage
The online Assessment market has attractive dynamics and Janison has a competitive advantage For personal use only Strong entry barriers Janison has invested 6 years and circa $8m on IP for its assessment platform1 (“Janison Insights”). Few competitors exist with similar capabilities. High switc
Slide 9: In FY19 H1 Janison invested in services to generate long term, high margin recurring income
In FY19 H1 Janison invested in services to generate long term, high margin recurring income For personal use only Income mix Products Description H1 FY18 H1 FY19 % % • Licensing and Hosting income Recurring Platform • Annual user subscription Income 53% 46% • Platform maintenance and support fees •
Slide 10: We build core functionality to accelerate the roadmap for our Assessment product
We build core functionality to accelerate the roadmap for our Assessment product For personal use only Enhanced student reporting Improved LMS Integration Major Australian Education Institution 10
Slide 11: H1 FY19 was an acceleration of investment to capitalise on the market opportunity
H1 FY19 was an acceleration of investment to capitalise on the market opportunity For personal use only Profitability returning to steady-state and expected to improve during H2 FY19 Product Investment (Cost of Sales) Opex Investment New features for Higher Education, Schools, Language & Certifica
Slide 12: Agenda
For personal use only Agenda Overview FY19 H1 Results Growth Priorities Outlook 12
Slide 13: Financial and operational highlights H1 FY19
Financial and operational highlights H1 FY19 For personal use only Total Group Revenue to Run Rate EBITDA1 Revenue Growth $10m $4m+ 18.5% From $8.4m in H1 FY18 Average Revenue Pro Forma Cash at Bank2 from $8.4m in H1 FY18 per Client (ARPC) to to $268k $6.8m From $3.6m at 30 June 2018 From $258
Slide 14: Project services income grew 48% in 1H FY19 to $4.7m
Project services income grew 48% in 1H FY19 to $4.7m 48% For personal use only H1 FY19 Group Result 6 months ended 31 H1 FY18 H1 FY19 % December $000s $000s change Increase in Project Services revenue Total platform revenue 5,257 5,281 0.5% $10m Project services revenue 3,164 4,693 48.3% Total opera
Slide 15: Assessment income increased 9% to $5.5m
Assessment income increased 9% to $5.5m 9% For personal use only FY19 H1 Assessment Result Growth in Assessment 6 months ended 31 H1 FY18 H1 FY19 % December $000s $000s change 42% License and hosting 1,628 1,746 7% Platform maintenance fees 627 576 (8%) Total platform revenue 2,254 2,322 3% Project
Slide 16: Learning income increased 32% to $4.5m
Learning income increased 32% to $4.5m 32% For personal use only FY18 Learning Result 6 months ended 31 H1 FY18 H1 FY19 % December $000s $000s change Growth in Learning revenue License and hosting 174 194 11% 66% Content license fees 791 682 (14%) Platform maintenance fees 2,211 2,277 3% Total platf
Slide 17: Agenda
For personal use only Agenda Overview FY19 H1 Results Growth Priorities Outlook 17
Slide 18: We have four key priorities to rapidly grow the business
We have four key priorities to rapidly For personal use only grow the business 1 2 3 4 Nurture Focus Build Intensify existing on highest innovative our sales and clients growth world-class marketing segments products efforts 18
Slide 19: Nurture existing clients
1 Nurture existing clients For personal use only 19
Slide 20: Focus on highest growth segments
2 Focus on highest growth segments For personal use only Schools Language Higher Education Certifications Performance Risk $20m $30m $50m $10m $30m $10m Lifecycle of a typical student from school to the workplace Addressable Assessment Market1 Addressable Learning Market1 Janison Current Revenue 20
Slide 21: Global emerging markets for online assessment in Schools and Higher Education are immense
At a broader level, the global emerging markets for online assessment in Schools and Higher Education are immense For personal use only Schools Assessment market (K-12) Higher Education Assessment market $200m $1.7b Number of students Number of students 517 m students at $0.40 per student p.a. 87 m
Slide 22: Australian universities have the potential to generate $26m revenue per year
Within the Higher Education sector, Australian universities have the potential to generate $26m revenue per year For personal use only University Monash University Students ('000) 69.4 1.3m students Enrolled in Australian universities1 RMIT University 59.4 x University of Melbourne 57.8 University o
Slide 23: Digitisation enables Janison to capture a greater share of wallet within universities
Digitisation enables Janison to capture a greater share of wallet $400k within universities For personal use only The test is only one component in the university assessment process: Annual Assessment cost breakdown for a large Australian Incremental Revenue University ($000s)1 per University2 $1,00
Slide 24: Build innovative world class products
3 Build innovative world class products For personal use only 24
Slide 25: Intensify efforts on Marketing and Business Development
4 Intensify efforts on Marketing and Business Development For personal use only 25
Slide 26: Agenda
For personal use only Agenda Overview FY19 H1 Results Growth Priorities Outlook 26
Slide 27: We expect to continue to grow rapidly by investing in our platform and business development
We expect to continue to grow rapidly by specifically investing in our platform and business development For personal use only International Revenue FY19 Income Share $20m +15% FY19 EBITDA Run Rate1 At 30 June 2019 $4.0m+ From $17.3m in p.c.p Average Revenue per Client (ARPC) Platform & Content Reve
Slide 28: Key takeaways
Key takeaways For personal use only Robust financials Janison estimated to deliver $20m in Group revenue in FY19 (up from $17m in FY18) and a full year run rate1 EBITDA of $4m. H1 FY19 was an investment phase which impacted margins. H2 FY19 is has already begun to return steady-state profitability
Slide 29: Disclaimer: forward looking statements
For personal use only Disclaimer: forward looking statements This presentation contains forward looking statements. All statements that address events or developments that Janison expects or anticipate will or may occur in the future and guidance on financial performance are forward looking statemen
Slide 30: For personal use only
For personal use only Tom Richardson trichardson@janison.com +61 421 029 620 30
Janison Education Group — H1 FY2019 Earnings Presentation on 6ix