Slide 1: Investor & Analyst Presentation FY17 Results
Investor & Analyst Presentation FY17 Results For the year ended 30 June 2017 24th August 2017 Rebekah O’Flaherty-CEO I Jonathan Kenny-CFO
Slide 2: Agenda
Agenda 1 2 3 4 5 6 Overview Strategic FY17 FY18 Q&A Appendices Priorities Financial Outlook Update Results
Slide 3: Overview
Overview FY17 Results Presentation 24 August 2017 1 3
Slide 4: FY17 Results Highlights
FY17 Results Highlights $M FY17 FY16 Mvmt Growth Group Revenue grew by 6%. APAC 3%, EMEA 3% and Americas 31% (EMEA Revenue 52.5 49.3 3.2 6% grew 19% and Americas 33% on a constant currency basis) ANZ 31.8 30.8 1.0 3% Underlying Core EBITDA grew by 20%, with all regions expanding EBITDA, EMEA 13.
Slide 5: Strategic Priorities Update
Strategic Priorities Update FY17 Results Presentation 24 August 2017 2 5
Slide 6: 3 Year Strategic Priorities
3 Year Strategic Priorities This time last year we announced our 3 year strategic priorities Build upon 3P’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
Slide 7: Strengthening the product portfolio
Strengthening the product portfolio A short video is available for viewing at: http://www.3plearning.com/investors/preview/ It shows the progress we’re making to strengthen our product portfolio around mathematics and literacy and includes footage of what we have released this financial year, and a
Slide 8: Strategic Priority #1 Strengthen Product Portfolio
Strategic Priority #1 Strengthen Product Portfolio Focus on maths and literacy, the largest and most synergistic education categories Goal Strategy Progress New Secondary User Experience launched late July 2016 – usage improved Refresh the experience and ensure it is New Primary and Teacher Us
Slide 9: Strategic Priority #2 Develop a Scalable Sales and Marketing Model
Strategic Priority #2 Develop a Scalable Sales and Marketing Model Leverage digital and telesales, as well as variable cost sales channels and pursue select geographic expansion Goal Strategy Progress Hiring underway to transition to lower cost Replicate our successful Canadian telesales model f
Slide 10: Strategic Priority #3 Globalise our Operating Model
Strategic Priority #3 Globalise our Operating Model Standardise and simplify the operating model to enable efficient scalable growth Goal Strategy Progress Global banking platform for effective working Banking Platform capital management, control and efficient Complete processing Global opport
Slide 11: FY17 Financial Results
FY17 Financial Results FY17 Results Presentation 24 August 2017 3 11
Slide 12: APAC – Expanding market
APAC – Expanding market APAC Financials Key Points $M FY17 FY16 Mvmt Growth Licence revenue 29.0 28.1 0.9 3% Revenue growth of 3% and 9% EBITDA Copyright fees, sponsorships and other 2.8 2.7 0.1 4% Cost of acquiring and servicing customers Total revenue 31.8 30.8 1.0 3% improved by 11%, with ren
Slide 13: EMEA – Growing margin and market share
EMEA – Growing margin and market share EMEA Financials Key Points £M FY17 FY16 Mvmt Growth Strong revenue growth of 19% in GBP Revenue 7.5 6.3 1.2 19% Costs (3.2) (3.1) (0.1) 3% EBITDA growth of 34% as scalable SaaS EBITDA 4.3 3.2 1.1 34% EBITDA margin (%) 57% 51% 13% model matures and cost to s
Slide 14: Americas – Efficient and scalable sales model
Americas – Efficient and scalable sales model Americas Financials Key Points US$M FY17 FY16 Mvmt Growth Revenue growth of 33% Revenue 5.7 4.3 1.4 33% Costs (5.7) (5.7) - 0% EBITDA - (1.4) 1.4 NM EBITDA breakeven for the year with small EBITDA margin (%) 0% (33%) NM contribution of $0.2M in H2 AR
Slide 15: Learnosity – delivering growth
Learnosity – delivering growth Learnosity Financials Key Points US$ FY17 FY16 Mvmt Growth Revenue 12.8 9.1 3.7 41% Revenue growth of 41% to US$12.8M reflecting EBITDA 2.7 1.3 1.4 108% growing global demand for online EBITDA % 21% 14% 7% NPAT 1.3 1.0 0.3 30% assessment. Strong growth in blue chip c
Slide 16: FY17 – Income Statement
FY17– Income Statement $M FY17 FY16 Mvmt Growth Key Points Total Revenue 52.5 49.3 3.2 6% Revenue increased 6% and on constant currency Employee (25.0) (23.7) (1.3) (5%) growth was 11% Marketing (2.0) (3.1) 1.1 35% Headcount has declined to 242 from 338. The Technology and occupancy (5.3) (4.9)
Slide 17: FY17 – Cash flow
FY17– Cash flow $M FY17 FY16 Mvmt Underlying Core EBITDA 16.0 13.3 2.7 Key Points Non-cash expense 0.5 (0.6) 1.1 Revenue growth, cost containment and Change in working capital 2.8 3.6 (0.8) strong working capital management have Operating free cash flow before intangibles 19.3 16.3 3.0 improved op
Slide 18: FY17 – Balance sheet
FY17– Balance sheet $M 30-Jun-17 30-Jun-16 Key Points Cash and cash equivalents 3.3 4.3 Trade and other receivables 7.0 8.0 Net debt of $6.2M compared to total debt facility Income tax receivable 1.5 0.0 of $30M. Represents Net Debt/Underlying Core Total current Assets 11.8 12.3 EBITDA ratio of 0.
Slide 19: Strategic Review of Technology Assets
Strategic Review of Technology Assets Intangibles and Amortisation Profile Key Points $M Carrying Value Additions Amortisation Impairment Carrying Value Strategic review of technology assets Disposal 30-Jun-16 30-Jun-17 completed in H1. Mathletics & Spellodrome 14.6 8.6 (4.8) (8.4) - 10.0 IntoScienc
Slide 20: FY18 Outlook
FY18 Outlook FY17 Results Presentation 24 August 2017 4 20
Slide 21: FY18 Outlook
FY18 Outlook Continued focus and execution of our 3 strategic priorities: I. strengthen the product portfolio, II. develop scalable sales and marketing, and III. globalise our operating model. Continue to deliver revenue growth greater than cost growth. We will complete foundation building in
Slide 22: Q&A
Q&A FY17 Results Presentation 24 August 2017 5 22
Slide 23: Appendices
Appendices FY17 Results Presentation 24 August 2017 6 23
Slide 24: Revenue by Geography and Product
Revenue by Geography and Product Revenue by Geography Revenue split by Geography A$M FY13 FY14 FY15 FY16 FY17 FY17 FY16 Growth FY17 FY16 APAC 24.2 24.6 30.1 30.8 31.8 31.8 30.8 3% EMEA 5.5 8.6 10.3 12.6 13.0 13.0 12.6 3% Americas 2.3 3.3 4.4 5.9 7.7 7.7 5.9 31% 61% 62% Total 32.0 36.5 44.8 49.3 52.5
Slide 25: Licences by Geography and Product
Licences by Geography and Product Licences by Geography Licences split by Geography 000s FY13 FY14 FY15 FY16 FY17 FY17 FY16 Growth APAC 2,496 2,486 2,627 2,664 2,704 2,704 2,664 2% FY17 FY16 EMEA 877 1,295 1,498 1,660 1,737 1,737 1,660 5% Americas 358 662 903 1,026 1,001 1,001 1,026 (2%) Total 3,731
Slide 26: Statutory EBITDA
Statutory EBITDA Reconciliation of Segment EBITDA to Statutory EBITDA $M FY17 FY16 Mvmt Growth APAC EBITDA 23.7 21.7 2.0 9% Less : Corporate Costs and Development (16.0) (13.8) (2.2) (16%) Add : Intersegment royalties 7.4 6.8 0.6 9% Statutory EBITDA 15.1 14.7 0.4 3% EMEA EBITDA 7.6 6.7 0.9 13% Less
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, 24 August 2017. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information