Slide 1: ASX Announcement
ASX Announcement 18 August 2022 FY22 Results Investor Presentation Attached is a copy of the IPH Limited FY22 Results Investor Presentation. An analyst/shareholder briefing covering both this topic and “Smart & Biggar to join IPH”, as announced this morning, will be held at 10.30am (AEST). The brief
Slide 2: 2022 Full Year Results Investor Presentation
2022 Full Year Results Investor Presentation Full year ended 30 June 2022 18 August 2022 Presented by: Dr. Andrew Blattman Managing Director & CEO, IPH Limited John Wadley Chief Financial Officer, IPH Limited iphltd.com.au
Slide 3: Disclaimer
Disclaimer 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 otherwise dispose of, or is
Slide 4: Contents
Contents 1 FY22 highlights 05 2 FY22 results 07 3 Market update 14 4 Delivering on our strategy 19 5 Looking ahead for FY23 26 6 Appendix 29 www.iphltd.com.au 2022 Full Year Results Investor Presentation 3
Slide 5: About the IPH Group
About the IPH Group A leading international IP services group 1) Approximate employee numbers across the Group. 2) Management estimated market share based on local IP office filing data: Australia (FY22 as at 1/8/22), Singapore (CY22 YTD March as at 21/7/22), New Zealand (FY22 as at 4/8/22), Canada
Slide 6: FY22 highlights
01 FY22 highlights www.iphltd.com.au 2022 Full Year Results Investor Presentation 5
Slide 7: Establishing a strong platform for future growth
Establishing a strong platform for future growth Leveraging the power of the IPH network to deliver a strong result 11% Delivering on our growth Underlying EBITDA1 strategy $137.4m Canada’s leading IP agency firm, Smart & Biggar to join IPH Referrals from Successfully integrated Shelston IP and acqu
Slide 8: FY22 results
02 FY22 results www.iphltd.com.au 2022 Full Year Results Investor Presentation 7
Slide 9: Financial overview
Financial overview Strong Underlying Result assisted by currency benefit Revenue $385.1m 6% Final Dividend1 16.0 cents per share (50% franked) 3% EBITDA $115.9m 2% Underlying EBITDA2 $137.4m 11% Statutory NPAT $52.6m 2% Underlying NPAT2 $86.7m 14% Underlying Diluted EPS 3% 12% Diluted EPS 24.0 cents
Slide 10: Asia delivers double digit earnings growth on like-for-like basis
Asia delivers double digit earnings growth on like-for-like basis Organic growth and integration synergies drive like-for-like growth Australia – New Zealand Asia Group Revenue 1% Revenue 10% Revenue 2% EBITDA 1% EBITDA 10% EBITDA 2% EBITDA margin 2% EBITDA margin – EBITDA margin – 1) Like for like
Slide 11: Underlying Results
Underlying Results Underlying EBITDA $137.4m up 11% assisted by organic growth and currency benefit FY22 Statutory Underlying Adjustments Millions Adjustments Income Statement Earnings FY222 Share based payments expense (4.9) Total revenue 385.1 385.1 Recoverable expenses (103.4) (103.4) Restructuri
Slide 12: Cash flow statement
Cash flow statement FY22 Cash Flow Statement FY21 Cash Flow Statement IPH continues to generate excellent cashflow #039;m with cash conversion of 100% Statutory EBITDA 115.9 113.3 Non-cash movements • Cash conversion of 100% reflects strong collections Change in working capital 7.7 5.7 • Cash flow supp
Slide 13: Balance sheet
Balance sheet #039;m Balance Sheet as at 30 Jun 2022 Balance Sheet as at 30 Jun 2021 Maintaining strong financial position Cash and cash equivalents 88.4 71.2 Trade and other receivables 92.8 83.4 Other current assets 15.8 10.3 • Cash movement includes dividend ($57.7m) Total current assets 197.0 164.9
Slide 14: Foreign currency sensitivity
Foreign currency sensitivity Earnings currency Balance sheet Operating expenses Service Charges sensitivity sensitivity • Based on the USD profile in FY22 in • The Group is also exposed to FX on the IPH Group, a 1c movement in the level of its USD denominated Other NZD the AUD/USD exchange rate cash
Slide 15: Market update
03 Market update www.iphltd.com.au 2022 Full Year Results Investor Presentation 14
Slide 16: Patent market – Australia
Patent market – Australia Like-for-like EBITDA growth achieved despite IPH filing growth lower than market Australian patent IPH Group market share 45,000 45.0% 42,034 41,037 38.1% filings – market1 40,000 (excluding innovation patents)2 40.0% 36.2% 36,310 36,628 36,408 34.0% • Australian patent mar
Slide 17: Patent market – Singapore
Patent market – Singapore Maintained #1 position 16,000 Singapore patent IPH Group 30.0% 14,353 14,028 filings – market1 14,000 13,117 market share2 25.0% 24.0% • IP Office of Singapore (IPOS) • IPH maintains number one market 23.3% 23.0% 23.0% note an increased lag in filing 12,000 11,611 share pos
Slide 18: IPH patent filings – Asia
IPH patent filings – Asia1 China filings up 15.3% • IPH increased filings across these 1000 15.1% key jurisdictions (outside of Singapore) by 9.4%. 900 6.1% • IPH patent filings in China increased 15.3% 800 by 15.3%. • Network continues to be attractive to 700 large clients. In FY22 we have seen mul
Slide 19: Trade mark market – Australia
Trade mark market – Australia Strengthened #1 position in the market Australian trade mark IPH Group 80,000 25.0% 23.1% filings – market (excl. 70,000 69,242 65,150 market share3 21.3% Int’l Registrations)1 63,537 58,734 • IPH trade mark filings in Australia 20.0% 20.0% 58,319 60,000 decreased by 3.
Slide 20: Delivering on our strategy
04 Delivering on our strategy www.iphltd.com.au 2022 Full Year Results Investor Presentation 19
Slide 21: Smart & Biggar – Canada’s leading IP agency firm to join IPH
Smart & Biggar – Canada’s leading IP agency firm to join IPH Strategic transaction extends IPH’s international network beyond the Asia Pacific • Smart & Biggar, Canada’s leading IP agency firm will join the IPH group for consideration of CAD 348m (AUD 387m1) • A significant strategic transaction, fu
Slide 22: Strong results in Asia demonstrate organic growth
Strong results in Asia demonstrate organic growth China patent growth of 15.3 % and network referrals up 4.5% • IPH patent filings in China increased by 15.3%. • IPH maintains number one market share position in Singapore in CY22 YTD Mar. • Growth in all key Asian jurisdictions, except Hong Kong, wi
Slide 23: AJ Park case study
AJ Park case study Proven track record of acquiring and integrating firms while capturing synergies and improving margins AJ Park EBITDA and Margin Accretion Post Acquisition 25 30% • At the time of acquisition, AJ Park was a successful privately held firm operating at an EBITDA margin of 21.6% (17%
Slide 24: Enablers – our people
Enablers – our people Strengthening our people offering Building group-wide people and leadership capability Initiatives to support health & wellness • Record year for promotions – including 14 Principal appointments. • Established a partnership with Smiling Mind to deliver a series of mindfulness w
Slide 25: Ongoing commitment to sustainability
Ongoing commitment to sustainability IPH continues to make progress on key sustainability focus areas Our People Diversity Governance & • 31 promotions across member firms • Women represent 34% of Senior Executive Risk management (including 14 Principal promotions) and Principal roles (ahead of 30%
Slide 26: Share based payments
Share based payments Share based payments expense will be recognised in Underlying EBITDA from FY23 Presently share based payments expense is excluded from underlying EBITDA. From FY23 onwards, consistent with market practice it will no longer be shown as a non-underlying expense but included in und
Slide 27: Looking ahead for FY23
05 Looking ahead for FY23 www.iphltd.com.au 2022 Full Year Results Investor Presentation 26
Slide 28: Summary and Priorities for FY23
Summary and Priorities for FY23 Leveraging our enhanced platform for further growth • IPH is now one of the largest IP services groups in secondary IP markets with an expanded international platform. • Consolidate and grow our position in our core geographies: > Australia/New Zealand > Asia > Canada
Slide 29: Thank you
Thank you iphltd.com.au www.iphltd.com.au
Slide 30: Appendix
06 Appendix www.iphltd.com.au 2022 Half Year Results Investor Presentation 29
Slide 31: Like for Like Revenue and EBITDA
Like for Like Revenue and EBITDA 10% increase in like for like EBITDA from strong organic growth in Asia and synergies in Australia/NZ Underlying New Accounting Currency Adjusted Underlying Chg% Revenue Jun 22 Businesses2 FX Movements3 Adjustment4 Revenue Jun 22 Revenue Jun 21 Australia & NZ IP 286.
Slide 32: Underlying Results
Underlying Results Underlying EBITDA $137.4m up 11% assisted by organic growth and currency benefit FY22 Statutory Underlying FY21 Statutory Underlying Adjustments Adjustments Income Statement Earnings FY222 Income Statement Earnings FY21 Total revenue 385.1 385.1 363.5 363.5 Recoverable expenses (1
Slide 33: Patent market trends
CAGR 15 Yr (CY06 to CY21) = 1.0% Patent market trends US PCT Applications2 70,000 CAGR Post-GFC (CY10 to CY21) = 2.5% No discernible impact to long-term trends 60,000 50,000 40,000 30,000 Australian Patent Filings1 CAGR 15 Yr (FY07 to FY22) = 1.1% CAGR Post-GFC (FY10 to FY22) = 2.2% 20,000 45,000 10
Slide 34: Revenue and EBITDA
Revenue and EBITDA Underlying Revenue $’m Underlying EBITDA $’m Australia IP Asia IP New Businesses Data & Analytics Serv Corp & Interco Australia IP Asia IP New Businesses Data & Analytics Serv Corp & Interco 137.4 385.1 369.4 124.3 363.5 0.6 0.8 2.7 4.2 114.5 0.4 22.5 5.1 51.5 110.2 89.7 17.8 256.
Slide 35: 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 Typical (indicative) foreign patent route in Australia come through the PCT system in the form of PCT National Phase patent applications. • The pro