Slide 1: Investor & Analyst Briefing
22 August 2019 Investor & Analyst Briefing Full year results to 30 June 2019 Rebekah O’Flaherty – CEO | Simon Yeandle - CFO
Slide 2: Our Agenda
Our Agenda Introduction Strategy FY19 Summary Outlook Financials Q&A Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 3: Introduction
Introduction Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 4: 2017-2019 Laying the foundation for profitable growth
2017-2019 Laying the foundation for profitable growth • To understand how we are positioned to execute our next 3 year strategy, it’s worth doing a quick recap on how we’ve been setting the business up for this growth phase. • Across 2017-2019 our unwavering focus was on 3 strategic priorities: stre
Slide 5: FY19 Summary
FY19 Summary Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 6: FY19 Results summary
FY19 Results summary AU$M FY19 FY18 $+/- %+/- Licence revenue up 1% to $51.1M with APAC (3%) Revenue & other income 54.4 55.4 (1.0) (2%) and Americas (7% in A$ terms) Licence revenue Group revenue declined 2% due to EMEA licence APAC 31.1 30.3 0.8 3% revenue (-7%) and decline in other income EME
Slide 7: APAC – ready for growth on a large install base
APAC – ready for growth on a large install base Licence revenue growth ($0.8m) ahead of cost growth ($0.4m) but negatively impacted by a disappointing AU$M FY19 FY18 MvmtGrowth retention performance (-1 %pt) due to execution rather than market issues. Corrective action implemented and Revenue - Ma
Slide 8: EMEA – impacted by market conditions but also poised for growth
EMEA – impacted by market conditions but also poised for growth £M FY19 FY18 $+/- %+/- Revenue down A$0.9m (7%) due to continued uncertainty around Brexit as well as a A$0.3M (110k Revenue - Maths and Literacy 6.7 7.5 (0.8) (11%) licence) impact from the ADEC Middle East contract Total revenue 6.7
Slide 9: Americas – green shoots showing and set for accelerated profitable sales growth
Americas – green shoots showing and set for accelerated profitable sales growth Full year revenue up $0.6m (8%), H2-19 licence US$M FY19 FY18 $+/- %+/- revenue up 14% (7% local currency) on H1-19 Revenue - Maths and Literacy 5.6 5.8 (0.2) (3%) 10% full year licence growth, schools up 39% Other r
Slide 10: FY19 Income statement
FY19 Income statement $M FY19 FY18 $+/- %+/- Total Revenue 54.4 55.4 (1.0) (2%) Sales-related employee cost increases of $1.4m Employee expenses (26.2) (24.8) (1.4) 6% (6%) Marketing expenses (1.8) (2.0) 0.2 (10%) Technology and occupancy Headcount: 255 FTEs (June 2018: 243); additional expenses
Slide 11: FY19 Cash flow
FY19 Cash flow $M FY19 FY18 $+/- Underlying core EBITDA 17.7 19.0 (1.3) Operating cash flow before intangibles down $1.3m, in line with underlying core EBITDA FX and other non cash expenses (0.9) (0.4) (0.5) Change in working capital (3.2) (3.7) 0.5 Operating free cash flow before intangibles 13.6
Slide 12: FY19 Balance sheet
FY19 Balance sheet Cash of $25.8m up from $23.0m with no debt AU$M 2019 2018 Cash and cash equivalents 25.8 23.0 Trade receivables are up $4.2m to $10.8m: Trade and other receivables 10.8 6.6 Income tax receivable - 0.2 FY18 balance was $2.0M lower than usual Total current assets 36.6 29.8 due
Slide 13: Investment in products & technology assets
Investment in products & technology assets Investment split by asset type and accounting treatment Continued investment in products and FY19 technology of $12.8m (FY18: $13.0m). AU$M CAPEX % OPEX % Total Mathematics 6.3 72% 2.4 28% 8.7 We exit FY19 with a stronger product Literacy - WIP 1.5 75%
Slide 14: Capital management
Capital management Confident we can scale and grow the core business globally and profitably in FY20 and beyond and achievement of this does not rely on raising capital or M&A Product investment to continue at current levels Continued investment in the Americas commensurate with growth No di
Slide 15: 20:22 Strategy
20:22 Strategy Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 16: 2020-2022 Accelerate profitable growth
2020-2022 Accelerate profitable growth • Having successfully laid a solid foundation, 3P is now poised to accelerate profitable growth. • Growth will come from all regions leveraging our expanded product portfolio and customer base, improved retention, as well as accelerated profitable sales growth
Slide 17: Video: 2020-2022 Accelerate profitable growth
Video: 2020-2022 Accelerate profitable growth Please be patient while the video loads The video, and a static PDF version of the same content, can be found at: https://www.3plearning.com/investors/strategy-update-august-2019/ Full Year 2019 Investor & Analyst Briefing 22 August 2019 17
Slide 18: Outlook - Delivered on our 3 year plan, green shoots showing, now poised for growth
Outlook - Delivered on our 3 year plan, green shoots showing, now poised for growth 2017-2019 strategic plan complete, enabling 3P to now profitably scale the business in a multi product environment across a diverse array of country and market settings Stronger balance sheet with $25.8M of cash
Slide 19: Q&A
Q&A Full Year 2019 Investor & Analyst Briefing 22 August 2019
Slide 20: 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, 22 August 2019. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information