Iph Ltd. · ASX:IPH
Iph — Investor Presentation (February 2018)
28 slides from Iph's investor presentation, Feb 15, 2018
Slide 1: Half Year Results Investor Presentation
2018 HALF YEAR RESULTS INVESTOR PRESENTATION Half Year Ended 31 December 2017 Dr. Andrew Blattman Managing Director / CEO, IPH Limited John Wadley Chief Financial Officer, IPH Limited
Slide 2: Disclaimer
Disclaimer This document has been prepared by IPH Limited (IPH) and No representation, warranty or assurance (express or implied) is comprises written materials/slides for a presentation concerning IPH. given or made by IPH that the forward looking statements contained in this presentation are accur
Slide 3: HY18 Highlights
HY18 Highlights 1
Slide 4: HY18 Operational Highlights
HY18 Operational Highlights Expansion & Integration As a group IPH maintained its No.1 patent (24% market share1 including AJ Park’s Australian filings) and trademark (15% “qualified” market share2 including AJ Park’s Australian filings) market position in Australia. Australia & Australian paten
Slide 5: Three IPH businesses to combine under Spruson & Ferguson brand
Three IPH businesses to combine under Spruson & Ferguson brand Strengthening Australian base for growth in Asia As announced on 6 February, Fisher Adams Kelly Callinans (FAKC), Cullens and Asia-Pacific IP firm Spruson & Ferguson - will combine to form one firm, operating under the Spruson & Fergus
Slide 6: HY18 Financial Highlights
HY18 Financial Highlights Asian Growth Dampened by Foreign Exchange Underlying EBITDA of $33.2m, 8.8% behind HY17. Statutory Results ($'m) HY18 HY17 Chg % A significant impact on the half year result in comparison to the prior period has been Revenue $101.2 $93.1 8.7% the movement in foreign exc
Slide 7: Like vs Like Revenue & EBITDA
Like vs Like Revenue & EBITDA EBITDA growth in IP businesses Underlying Adjusted Average 31-Dec Revenue New FX on Currency Revenue Revenue Revenue Chg% Currency 4 AUD/USD AUD/USD $'m Businesses 1 Revaluations2 Adjustment 3 HY17 HY18 HY18 HY17 0.7544 0.7227 FY17 0.7545 0.7692 Australia & NZ IP 67.7 (
Slide 8: Impact of Foreign Currency
Impact of Foreign Currency Earnings Currency Sensitivity Balance Sheet Sensitivity Based on the USD profile in HY18, a 1c movement in the The Group is also exposed to FX on the level of its USD AUD/USD exchange rate equates to approximately $1.3m denominated cash and receivables in the balance s
Slide 9: HY18 Business Performance & Market Update
HY18 Business Performance & Market Update 2
Slide 10: Business Snapshot
Business Snapshot Leading intellectual property group in Asia-Pacific 635+ 4 17 Employees Brands Offices 80 Principals 157 Professionals 7 401 Support & Management Countries 24% #1 16K+ Patent market share in Patent group in each of Patent filings2 Australia & Australia, New Zealand & Singapore1 Sin
Slide 11: Patent Market – Australia
Patent Market – Australia IPH Group continues to hold No. 1 patent market position in softer market Fig. 1: Total patent filings in Australia1 Fig. 2: IPH Group combined market share in Australia2 18,848 30% 19,000 18,258 17,858 16,480 24% 17,000 22% 22% 15,000 20% 13,000 15% 11,000 10% 9,000 7,000
Slide 12: Patent Market – Singapore
Patent Market – Singapore IPH Group maintains No.1 patent market position in Singapore Fig. 3: Total patent filings in Singapore1 Fig. 4: IPH Group market share in Singapore2 12,000 30% 10,312 10,814 10,562 25% 24% 9,722 24% 23% 10,000 20% 8,000 6,000 10% 4,000 2,000 0% CY14 CY15 CY16 CYTD17 CY14 CY
Slide 13: Patent Market – Asia
Patent Market – Asia Asia returns to growth Fig. 5: IPH patent filings in Asia1 Fig. 6: IPH market share in key jurisdictions in Asia (CY16) 3 14% 7,000 5,745 5,813 6,000 10% 5,000 2,692 2,996 4,000 3,000 7% 6% 5% 2,000 3,053 2,817 3,196 1,000 3% 0 1% FY16 FY17 FY18 <1% 1HY 2HY Malaysia Philippines
Slide 14: Patent Market – China
Patent Market – China Fastest growing addressable market for IPH Fig. 8 Total patent filings in China1 Fig. 7: Total patent filings in key jurisdictions in Asia (ex-China)1 1.6 70 Millions 58,371 Thousands 1,338,503 56,840 1.4 60 52,977 54,463 1.2 1,101,864 50 1 928,177 825,136 40 0.8 30 0.6 20 0.4
Slide 15: Filings by IPH companies
Filings by IPH companies Unparalleled volume of filings to underpin future earnings growth Fig. 9: Patent filings by IPH group1 Fig. 10: Trademark filings by IPH group1 18,000 16,252 6,000 5,015 16,000 14,401 5,000 14,000 12,000 8,141 4,000 7,301 2,764 10,000 2,833 8,000 3,000 6,000 1,358 2,000 4,00
Slide 16: HY18 Financial Results
HY 18 Financial Results 3
Slide 17: Underlying Revenue & EBITDA
Underlying Revenue & EBITDA Acquisitions have delivered significant increases in Revenue Revenue Revenue EBITDA EBITDA $'m Chg% Chg% HY18 HY17 HY18 HY17 Australian & New Zealand IP 67.7 64.1 6% 24.2 26.6 (9%) Asian IP 35.7 31.8 12% 13.6 14.0 (3%) 103.4 95.9 8% 37.8 40.6 (7%) Data and Analytics Softw
Slide 18: Underlying NPAT & EPS
Underlying NPAT & EPS Revenue increased by 9%; EPS decreased by 12% HY18 Statutory Underlying HY17 Statutory Half Year ended Underlying Income Adjustments Earnings Income Adjustments 31 December 2017 Earnings HY17 Statement HY182 Statement $'m Total revenue 101.2 101.2 93.1 93.1 Recoverable expenses
Slide 19: Revenue & EBITDA FY14 – HY18
Revenue & EBITDA FY14 – HY18 Underlying Revenue $'m Underlying EBITDA $'m Australia IP Asia IP New Businesses Australia IP Asia IP New Businesses Data & Analytics Serv Corp & Interco Data & Analytics Serv Corp & Interco 71.6 186.0 65.0 10.1 0.7 157.5 33.2 12.4 0.4 27.2 37.7 101.2 42.5 33.2 58.7 26.9
Slide 20: Cash flow Statement
Cash flow Statement High cash conversion HY18 HY17 Half Year ended 31 Dec 2017 Cash Flow Cash Flow Commentary Statement Statement $'m Minimal working capital requirements. Statutory EBITDA 31.8 35.1 High proportion of earnings are converted to cash. Non-cash movements 0.1 (0.5) Tax payments re
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Strong balance sheet Balance Sheet Balance Sheet Commentary as at 31 Dec 2017 as at 30 Jun 2017 $'m $18.3m cash. Cash and cash equivalents 18.3 24.4 Debt drawn to US$26m. Trade and other receivables 47.1 38.0 Other current assets 6.6 3.4 Intangibles increase from acq
Slide 22: Growth & Outlook
Growth & Outlook 4
Slide 23: Growth & Outlook
Growth & Outlook Focus on Integration Australia & New Zealand Asia In the second half, the Group’s Australian Expected IPH filing growth in the region will continue the trend back businesses are expected to revert to growth rates in to pre-AIA levels. line with the underlying market trends exper
Slide 24: Appendices
Appendices 5
Slide 25: America Invents Act (AIA) Overview
America Invents Act (AIA) Overview The Leahy-Smith America Invents Act (AIA) was signed on 16 September 2011 introducing a number of significant reforms to US patent law. Some of the most significant provisions of AIA went into effect on 16 March 2013, including those converting the US patent sy
Slide 26: IPH Corporate Information
IPH Corporate Information Directors Ordinary Shares on Issue1 Number Holders % Mr. Richard Grellman AM - Chairman Free float 188,254,695 12,835 95% Escrowed, incl. 9,021,573 52 5% Dr Andrew Blattman - Managing Director - Pizzeys (31 Aug 18) 1,229,545 22 Ms Robin Low - Cullens (30 Jun 18) 2,042,905 1
Slide 27: Investment Highlights
Investment Highlights IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“SF”), Pizzeys, AJ Park (AJP) and Practice Insight (“PI”). SF, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia-Pacific; top-tier firm with a strong reputation and Long track 1 reco
Slide 28: Investment Highlights (continued)
Investment Highlights (continued) Experienced Strong board with complementary skill sets. Board, Long standing, experienced management team. 6 management Highly qualified and experienced professional IP team. & personnel A number of senior professional promotions across the group to ensure c