Slide 1: Investor & Analyst Presentation
INVESTOR & ANALYST PRESENTATION For the half year ended 31 December 2014 Chief Executive Officer: Tim Power Chief Financial Officer: Jonathan Kenny STRICTLY CONFIDENTIAL PAGE 0
Slide 2: Agenda
Agenda AGENDA 01 Overview 2 02 Financial Information and KPIs 7 03 Key Product Update 16 04 Recap and Outlook 21 STRICTLY CONFIDENTIAL PAGE 1
Slide 3: Section One: Overview
Agenda 1 STRICTLY CONFIDENTIAL SECTION ONE: Overview Page PAGE2 2
Slide 4: 3P Learning Overview
3P Learning Overview • 3P Learning is a global online education company that offers cloud-based software-as-a-service products for schools and students in grades K-121 • At 3P Learning, our mission is to create a place where students, families and teachers can love learning. This passion translates
Slide 5: HY 2015 Operational Highlights
HY 2015 Operational Highlights • Revenue growth of 21%, EBITDA growth of 46% on prior corresponding period (p.c.p) • ARPU increases on track at $8.40 • Mathletics Advantage campaign launched • Over 1.7 million unique app downloads • Seasonality of sales and licence growth is heavily weighted to the
Slide 6: HY 2015 Progress on Strategy
HY 2015 Progress on Strategy North America • North America expansion with product enhancements and sales force investment • Significant investment and focus on product enhancements to facilitate district selling in North America Into Science • Into Science starting to get traction with 46,000 licenc
Slide 7: HY 2015 Performance vs HY 2014
HY 2015 Performance vs HY 2014 HY 2015 HY 2014 HY 2015 Key Financial Information Pro Forma * Pro Forma Growth Statutory Revenue ($m's) 18.4 15.2 21% 18.4 EBITDA ($m's) 6.3 4.3 46% (3.9) NPBT ($m's) 5.3 3.6 46% (4.9) NPAT ($m's) 4.1 3.2 29% (3.0) EBITDA margin 34.1% 28.1% 21% (21.2%) Cash at Bank ($m
Slide 8: Section Two: Financial Information and KPIs
Agenda 2 STRICTLY CONFIDENTIAL SECTION TWO: Financial Information and KPIs Page PAGE7 7
Slide 9: Revenue by Geography
Revenue by Geography 1.9 10% HY 2015 revenue grew by 21% on HY 2014. Geographic 4.2 diversification of revenue increased as revenue in EMEA 23% HY15 Australia and New Zealand grew by 42% and Americas grew by 64%, while ANZ’s $18.4m EMEA 12.3 Americas contribution to total revenue declined from 73% t
Slide 10: Revenue by Product
Revenue by Product Growth across all product lines with Mathletics making the largest contribution. HY15 $18.4m Revenue split by product Agenda 0.7 0.1 0.8 1% 5% 5% HY 2015 HY 2014 Growth 0.8 5% Mathletics 15.4 12.8 20% Reading Eggs Products 1.0 0.8 21% Spellodrome 0.8 0.8 1% HY14 IntoScience 0.2 0.
Slide 11: Licences
Licences ANZ performing well outside traditional renewal period. Growth in EMEA benefited from schools not breaking for summer holidays until mid-July. Americas performing well considering the impact of the seasonal renewal cycle. Total Licences (000’s) – by geography Licences split as at 31 Decembe
Slide 12: Licences
Licences Strong performance of core products with consistent growth in total licence numbers. Total Licences (000’s) – by product Licences split as at 31 December 2014 5,301 3,863 4,665 294 4,864 46 293 Agenda 98 339 949 Spellodrome 6% IntoScience 1% 921 849 3,464 278 Reading 300 651 Eggs 367 Produc
Slide 13: ARPU: Average revenue per user licence
ARPU: Average revenue per user licence • ARPU at 31 December 2014 was $8.40*, (FY15 prospectus forecast of $8.32) • HY 2015 result reflected price increases in EMEA and US during 2H 2014 and the positive impact of mix and foreign currency benefits • Agenda The 15% increase in ARPU in Australia as fo
Slide 14: Group Performance Overview
Group Performance Overview HY 2015 Revenue increased 21%, EBITDA increased 46% and NPAT increased 29% on p.c.p. Summary of actual vs forecast income statements Pro forma * Statutory $ million, June year end HY 2015 HY 2014 Var Growth HY 2015 Total revenue 18.4 15.2 3.2 21% 18.4 Increased salary co
Slide 15: Seasonality of Invoiced Billings
Seasonality of Invoiced Billings There is a high degree of seasonality in 3P’s cash flow, as a large proportion of licences are purchased at the start of the Australian school year. While revenue is recognised across the 70% licence periods, cash flow is concentrated in the second half of the 58% fi
Slide 16: Pro forma Cash Flow
Pro forma Cash Flow HY2015 Cash Flow heavily impacted by the seasonality of our cash billings. Total cash at bank of $15.8million plus $2.3M term deposits as at 31 Dec 2014. Cash Flow * Pro forma $m illion, Decem ber year end HY 2015 HY 2014 Var EBITDA 6.3 4.3 2.0 Non-cash expense (0.3) 0.2 (0.5) Ch
Slide 17: Section Three: Key Product Releases
Agenda 3 STRICTLY CONFIDENTIAL SECTION THREE: Key Product Releases Page PAGE16 16
Slide 18: New Releases: Mathletics Reports Console
NOW LIVE New Releases: Mathletics Reports Console Data-driven teaching is a new focus of the Mathletics sales and marketing messaging. Teachers now have access to automatically generated, real-time reporting at all levels. This reporting is useful, insightful and actionable. • Weaknesses and strengt
Slide 19: New Releases: Mathletics Student App
NOW LIVE New Releases: Mathletics Student App Mathletics Student v4.0 released into app stores this month – a major developmental Total app downloads now top upgrade from v3.0, now integrating full HTML activity framework, allowing for the subsequent release of over 250 additional Mathletics 1.7m ac
Slide 20: New Releases: IntoScience
NOW LIVE New Releases: IntoScience A major new open-learning interactive environment within IntoScience, opening up the curriculum area of “Electricity” 7 new activities introducing electricity, circuits and schematics. Using IntoScience's new hands-on circuit toolkit students can actively explore k
Slide 21: The Mathletics Advantage
The Mathletics Advantage A recent major independent research study found that the results of Mathletics students are up to Proving the 9% higher in external standardized testing. Advantage These results are taken from Dr.Tony Stokes’ independent study examining external standardised test results fro
Slide 22: Section Four: Recap and Outlook
Agenda 4 STRICTLY CONFIDENTIAL SECTION FOUR: Recap and Outlook Page PAGE2121
Slide 23: HY15 Recap
HY15 Recap • 3P delivers growth with positive result compared to first half 2014 • Forecast ARPU increases on track with no significant impact on retention in ANZ • Momentum building in northern hemisphere • As per our stated dividend policy no interim dividend declared – final dividend of 20 – 30%
Slide 24: Important Notice and Disclaimer
Important Notice and Disclaimer The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and results as at the time of preparation, 2 March 2015. Further details are provided in the Company’s full year accounts and results, announcement released on 2 March 2015. No r