Slide 1: Investor & Analyst Presentation
Investor & Analyst Presentation Full YearResults 30 June2016 25th August 2016 Rebekah O’Flaherty - CEO I Jonathan Kenny - CFO
Slide 2: Agenda
Agenda 1 Overview 2 Strategic Priorities 3 FY16 Financial Results 4 FY17 Outlook 5 Q&A 6 Appendices FY16 Results Presentation 25 August 2016 2
Slide 3: Section One: Overview
Section One Overview FY16 Results Presentation 25 August 2016 3
Slide 4: FY16 Results Highlights
FY16 Results Highlights Pro forma* 10% revenue growth reflects growth in all regions and all $M FY16 FY15 Mvmt Growth Revenue 49.3 44.8 4.5 10% products (ANZ +2%, EMEA +23%, Americas +33%) ANZ 30.8 30.1 0.7 2% License growth +6% to 5.65 million EMEA 12.6 10.3 2.3 23% Americas 5.9 4.4 1.5 33% U
Slide 5: Section Two: Strategic Priorities
Section Two Strategic Priorities FY16 Results Presentation 25 August 2016 5
Slide 6: 3 Year Strategic Priorities
3 Year Strategic Priorities Build upon 3PL’s foundation of Talented team Strong customer advocates (students, parents and teachers) Award winning product brands Recurring SaaS business model Large installed base to accelerate profitable global growth Year 1 Strengthen Product Portfolio and
Slide 7: Strengthen Product Portfolio and Scalable Global Operating Model
Strengthen Product Portfolio and Scalable Global Operating Model 1) Stronger and more Profitable Product portfolio Goal Strategy Progress Centralised Global Drive cost efficiencies Product Development Leaders direct Improve market insight and time to report to CEO to accelerate Product Develop
Slide 8: Strengthen Product Portfolio and Scalable Global Operating Model
Strengthen Product Portfolio and Scalable Global Operating Model 2) Establishing a Scalable Sales Model Goal Strategy Progress Develop 3rd party sales Establish alternative distribution Robert Mercer commenced as Chief channels to complement direct Sales and Marketing Officer channels sales MO
Slide 9: Strengthen Product Portfolio and Scalable Global Operating Model
Strengthen Product Portfolio and Scalable Global Operating Model 3) Globalising our Operating Model Goal Strategy Progress Drive cost and Globalise back end business CFO Jonathan Kenny to expand his systems and functions: portfolio and lead back end operational efficiencies • Customer support gl
Slide 10: An experienced Global Leadership Team ready to execute
An experienced Global Leadership Team ready to execute Rebekah O’Flaherty, Chief Executive Officer Acting Chief Product Officer Extensive experience in technology companies and digital in the United States, Europe and APAC Previously VP Hewlett Packard, Executive Director Telstra, General Manage
Slide 11: Section Three: FY16 Financial Results
Section Three FY16 Financial Results FY16 Results Presentation 25 August 2016 11
Slide 12: ANZ – Growing leading market position
ANZ – Growing leading market position ANZ Financials Key Points Pro forma Licence revenue growth of 6% offset by $M FY16 FY15 Mvmt Growth decline in one-off sponsorship revenue Licence revenue 28.1 26.6 1.5 6% Copyright fees, sponsorships and other 2.7 3.5 (0.8) (24%) Increase in K-6 primary lic
Slide 13: EMEA – Growing margin and market share
EMEA – Growing margin and market share EMEA Financials Key Points Pro forma Strong revenue growth of 23% (14% on $M FY16 FY15 Mvmt Growth a constant currency basis) Revenue 12.6 10.3 2.3 23% Costs (5.9) (5.7) (0.2) 4% Revenue growth supported by 10% EBITDA 6.7 4.6 2.1 46% gain in licences and 10
Slide 14: Americas – Building a scalable sales model
Americas – Building a scalable sales model Key Points Americas Financials Pro forma Revenue growth of 33% (19% on a $M FY16 FY15 Mvmt Growth constant currency basis) Revenue 5.9 4.4 1.5 33% Revenue growth supported by 14% gain in Costs (7.6) (4.6) (3.0) 64% licences and 6% ARPU increase EBITDA (
Slide 15: Learnosity – Valuable strategic investment delivering strong growth
Learnosity– Valuable strategic investment delivering strong growth Learnosity Financials Key Points €M FY16 FY15 Mvmt Growth Revenue growth of 52% to €$8.2M (US$9M) reflecting growing global Revenue 8.2 5.4 2.8 52% demand for online assessment and Underlying EBITDA 1.2 0.9 0.3 33% strong growth in
Slide 16: FY16 – Income Statement
FY16 – Income Statement Pro forma $M FY16 FY15 Mvmt Growth Key Points Total Revenue 49.3 44.8 4.5 10% Increased headcount to 338 from 284 YoY primarily in Employee (23.7) (19.3) (4.4) (23%) sales Marketing (3.1) (2.3) (0.8) (35%) Technology and occupancy (4.9) (3.1) (1.8) (57%) Marketing costs i
Slide 17: FY16 – Balance sheet
FY16 – Balance sheet $M 30 June 2016 30 June 2015 Cash and cash equivalents 4.3 30.9 Key Points Trade and other receivables 8.0 8.7 Cash and cash equivalents reduced due to Other current assets 0.0 0.6 investment in Learnosity. Net Debt of $7.2m at Total current Assets 12.3 40.2 30 June 2016, repr
Slide 18: FY16 – Cash flow
FY16 – Cash flow Pro forma Key Points $M FY 2016 FY 2015 Mvmt Increased investment in product Underlying Core EBITDA 13.3 16.9 (3.6) development and systems to support Non-cash expense (0.6) (1.1) 0.5 global growth Change in working capital 3.6 6.0 (2.4) • FY17 capex forecast to reduce by Operatin
Slide 19: Intangibles and Amortisation Profile
Intangibles and Amortisation Profile $M Carrying Value Additions Amortisation Carrying Value 30 June 2015 30 June 2016 Key Points Mathletics 8.7 8.2 (3.0) 13.9 Spellodrome 0.5 0.4 (0.2) 0.7 Strategic review of IntoScience IntoScience 2.7 1.5 (0.8) 3.3 Systems 0.3 1.3 (0.2) 1.4 New CIO to review
Slide 20: Section Four: FY17 Outlook
Section Four FY17 Outlook FY16 Results Presentation 25 August 2016 20
Slide 21: FY17 Outlook
FY17 Outlook Transition 3P to be a Global Digital Business that can profitably scale sales through diversification of products, multi sales channels and select geographic expansion Revitalisation of Mathletics with an expanded offering to toddlers (Baby Mathletics App) and a renewed suite of Mat
Slide 22: Section Five: Q&A
Section Five Q&A FY16 Results Presentation 25 August 2016 22
Slide 23: Section Six: Appendices
Section Six Appendices FY16 Results Presentation 25 August 2016 23
Slide 24: Revenue by Geography and Product
Revenue by Geography and Product Revenue by Geography Revenue split by Geography A$M FY12 FY13 FY14 FY15 FY16 Growth ANZ 22.2 24.2 24.6 30.1 30.8 2% FY15 FY16 EMEA 4.5 5.5 8.6 10.3 12.6 23% Americas 1.7 2.3 3.3 4.4 5.9 33% Total 28.5 32.0 36.5 44.8 49.3 10% 67% 62% 23% 26% 10% 12% ANZ EMEA Americas
Slide 25: Licences by Geography and Product
Licences by Geography and Product Licences by Geography Licences split by Geography 000s FY12 FY13 FY14 FY15 FY16 Growth ANZ 2,236 2,500 2,524 2,696 2,733 1% FY15 FY16 EMEA 912 1,005 1,480 1,685 1,854 10% Americas 316 358 662 931 1,065 14% Total 3,464 3,863 4,665 5,312 5,652 6% 51% 48% 32% 33% 18% 1
Slide 26: Statutory EBITDA
Statutory EBITDA Reconciliation of Segment EBITDA to Statutory EBITDA Pro forma $M FY16 FY15 Mvmt Growth ANZ EBITDA 21.7 21.5 0.2 1% Less : Corporate Costs and Development (13.8) (9.0) (4.8) (53%) Add : Intersegment royalties 6.8 5.4 1.4 26% Less : IPO costs - (9.4) 9.4 N/M Statutory EBITDA 14.7 8.5
Slide 27: 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, 25 August 2016. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information