Iph Ltd. · ASX:IPH
Iph — Macquarie Australia Conference 2024
34 slides from Iph's conference presentation, May 8, 2024
Slide 1: Presentation to the Macquarie Australia Conference 2024
8 May 2024 Presentation to the Macquarie Australia Conference 2024 For personal use only Attached is a presentation to be given today by IPH’s Managing Director and Chief Executive Officer, Dr Andrew Blattman, to the Macquarie Australia Conference. For more information, please contact: Martin Cole C
Slide 2: Macquarie Australia Conference
For personal use only Macquarie Australia Conference 8 May 2024 Presented by: Dr. Andrew Blattman Managing Director & CEO, IPH Limited iphltd.com.au
Slide 3: Disclaimer
Disclaimer For personal use only 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 other
Slide 4: Contents
Contents For personal use only 1 About IPH 4 2 IP Fundamentals Strong 10 3 Market Focus 13 4 Leveraging the AI Opportunity 18 5 Summary 27 6 Appendix 31 www.iphltd.com.au Macquarie Australia Conference 8 May 2024 3
Slide 5: About IPH
01 For personal use only About IPH www.iphltd.com.au Macquarie Australia Conference 8 May 2024 4
Slide 6: About the IPH Group
About the IPH Group A leading international IP services group For personal use only IPH offices Primary IP markets Secondary IP markets 1) Approximate employee numbers across the Group. 2) Management estimated market share based on local IP office filing data: Australia (FY24 YTD as at 8/1/24), Sing
Slide 7: Consistent track record of growth
Consistent track record of growth Strong track record of revenue and earnings growth with returns to shareholders Underlying Revenue $m1 Underlying EBITDA $m1 For personal use only 170.0 490.1 137.4 124.3 369.4 363.4 385 114.5 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Underlying NPAT $m1 Dividends cps
Slide 8: Diverse and resilient earnings base
Diverse and resilient earnings base Recent Canadian acquisitions have enhanced IPH’s earnings diversity in secondary IP markets For personal use only Revenue by service line % Patent filings by region (FY23) EBITDA by region % 12% 7% 10% 24% 16% 31% 47% 72% 24% 29% 28% Patents Trade marks Legal Aust
Slide 9: 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 come Typical (indicative) foreign patent route in Australia For personal use only through the PCT system in the form of PCT National Phase patent a
Slide 10: Increase in filing transfers provides further revenue opportunity
Increase in filing transfers provides further revenue opportunity Incremental revenue through transfers shows BD and network effect in action Transfers in – IPH Group Total Transfers in – IPH Asia Pacific Firms 17.4% For personal use only 2,500 2,000 Increase across the IPH group 29.8% 2,000 1,500 I
Slide 11: IP Fundamentals Strong
02 For personal use only IP Fundamentals Strong www.iphltd.com.au Macquarie Australia Conference 8 May 2024 10
Slide 12: Key drivers of IP remain supportive for growth
Key drivers of IP remain supportive for growth Protecting IP rights is fundamental for business For personal use only Corporations’ intellectual property is a core asset requiring protection across global markets Key drivers of IP growth: • Corporate spend on R&D and innovation to drive competitive
Slide 13: US CHIPS and Science Act to drive need for IP protection
US CHIPS and Science Act to drive need for IP protection R&D investment now leads to patents down the track For personal use only • Authorised $50 billion in various incentives, namely $11 billion for R&D and $39 billion for manufacturing incentives • Geared towards advancing US leadership in founda
Slide 14: Market Focus
03 For personal use only Market Focus www.iphltd.com.au Macquarie Australia Conference 8 May 2024 13
Slide 15: Closing the gap in Australian patent filings
Closing the gap in ANZ EBITA margin steady / IPH closing Australian patent filings filing gap vs Australian market filings IPH continuing to narrow the gap in patent filing growth relative to Australian market For personal use only 32.8% 33.8% 32.3% EBITA Margin • Integration of Shelston IP and Spru
Slide 16: Creating the market leading presence in Canada
Creating the market leading presence in Canada Delivering enhanced earnings resilience and diversity for the IPH Group Why Canada? Patent Market Share – Canada For personal use only • A leading secondary IP market, similar to Australia in size, governance and legal system • Similar growth profile to
Slide 17: Fundamentals for Asian economic growth remain strong
Fundamentals for Asian Innovation Ecosystems: Long term investment in R&D by Singapore and economic growth remain strong Hong Kong Governments. Market drivers remain attractive Economic Growth and Integration: For personal use only Increasingly affluent Asian economies generate the need for intellec
Slide 18: Capital Management
Capital Management Strong track record in cash conversion supports deleveraging • High proportion of earnings converted to cash with For personal use only consistently high cash conversion ratio Cash Conversion % • Minimal working capital requirements and low CAPEX business 140 128 • Strong operatin
Slide 19: Leveraging the AI Opportunity
04 For personal use only Leveraging the AI Opportunity www.iphltd.com.au Macquarie Australia Conference 8 May 2024 18
Slide 20: AI: An opportunity for filings and our business
AI: An opportunity for filings and our business The transformative potential of AI Filing Opportunity: For personal use only • Creation of AI-related patent filings - +718% growth in AI as percent of total patents average growth between 2016 and 2020 • Additional IP through use of generative AI - AI
Slide 21: Disclaimer: simplified example, live demonstration follows
For personal use only Disclaimer: The following is a simplified example and indicative only and this technology has not yet been implemented operationally. The timeline for development and implementation remains to be determined. Live Demonstration Follows. www.iphltd.com.au Macquarie Australia Conf
Slide 22: Leveraging AI: Patent Drafting Tool
Leveraging AI: Patent Drafting Tool For personal use only Example: The latest innovation from Coffee Company A to enhance their coffee capsules is to vibrate the capsule while pressurised water passes through it. So how could we use IPH’s AI tool to move from initial discussions to the first draft?
Slide 23: Leveraging AI: Patent Drafting Tool - Step 1
Leveraging AI: Patent Drafting Tool Step 1: Enter “Abstract” based on the instructions given. For personal use only A machine to brew coffee. The coffee capsule is vibrated while pressurised water passes through it to produce a better cup of coffee. www.iphltd.com.au Macquarie Australia Conference 8
Slide 24: Leveraging AI: Patent Drafting Tool - Step 2
Leveraging AI: Patent Drafting Tool Step 2: To make it more relevant, background context can be added by For personal use only supplying relevant documents. AAmachine machineto tobrew brewcoffee. coffee.Rather thancapsule The coffee the coffee pod remaining is vibrated fixed in the water while press
Slide 25: Leveraging AI: Patent Drafting Tool - Step 3
Leveraging AI: Patent Drafting Tool Step 3: Start drafting patent by clicking on “Draft Patent”. For personal use only Vibrating Coffee Capsule Enhanced Brewing Machine A machine to brew coffee. The coffee capsule is vibrated while pressurised water passes through it to produce a better cup of coffe
Slide 26: Leveraging AI: Patent Drafting Tool - Step 4
Leveraging AI: Patent Drafting Tool Step 4: Add further claims as required. For personal use only In this example, we will add a dependent claim: Claim 11: The coffee brewing machine of Claim 1, wherein the coffee capsule further comprises a barcode disposed around the Claim 1: A coffee brewing mach
Slide 27: Leveraging AI: Patent Drafting Tool - Step 5
Leveraging AI: Patent Drafting Tool Step 5: Redraft “Abstract” to change the original For personal use only instructions to a patent abstract based on the new background information and claims. The present invention is a coffee brewing machine that incorporates a vibrating A machine to brew coffee.
Slide 28: Leveraging AI: Patent Drafting Tool - Step 6
Leveraging AI: Patent Drafting Tool Step 6: Export the first draft (from initial instructions to first draft in minutes). For personal use only Vibrating Coffee Capsule Enhanced Brewing Machine The present invention is a coffee brewing machine that incorporates a vibrating coffee capsule mechanism t
Slide 29: Summary
05 For personal use only Summary www.iphltd.com.au Macquarie Australia Conference 8 May 2024 28
Slide 30: Summary
Summary IPH has strengthened its market-leading position to harness positive IP industry dynamics For personal use only IP fundamentals remain strong IPH has strengthened its leadership position in • Continued corporate spend on R&D secondary IP markets to harness this growth and innovation to drive
Slide 31: For personal use only
For personal use only www.iphltd.com.au Macquarie Australia Conference 8 May 2024 30
Slide 32: Thank you
For personal use only Thank you iphltd.com.au www.iphltd.com.au
Slide 33: Appendix
06 For personal use only Appendix www.iphltd.com.au Macquarie Australia Conference 8 May 2024 32
Slide 34: PCT filings
PCT filings Main lead indicator for patent filings in secondary markets steady to growth CAGR 15 Yr (CY08 to CY23) = 3.6% Europe PCT Applications CAGR 15 Yr (CY08 to CY23) = 0.2% Japan PCT Applications For personal use only CAGR Post-GFC (CY10 to CY23) = 0.7% CAGR Post-GFC (CY10 to CY23) = 3.3% 70,0