Slide 1: Investor & Analyst Presentation FY18 Results
Investor & Analyst Presentation FY18 Results For the year ended 30 June 2018 16th August 2018 Rebekah O’Flaherty-CEO I Jonathan Kenny-CFO
Slide 2: Agenda
Agenda 1 2 3 4 5 6 Overview Strategic FY18 FY19 Q&A Appendices Priorities Financial Outlook Update Results
Slide 3: Overview
Overview FY18 Results Presentation 16 August 2018 1 3
Slide 4: FY18 Results Highlights
FY18 Results Highlights $M FY18 FY17 Mvmt Growth Revenue 55.4 52.5 2.9 6% ▪ Group Revenue grew by 6%. APAC 8%, EMEA flat following significant contraction in government spend and Americas 4% following a year of APAC 34.4 31.8 2.6 8% transition but poised for growth in latter part of FY19 and beyond.
Slide 5: Strategic Priorities Update
Strategic Priorities Update FY18 Results Presentation 16 August 2018 2 5
Slide 6: 3 Year Strategic Priorities
3 Year Strategic Priorities • We have completed year 2 of our 3-year strategic plan to strengthen our product portfolio and develop a scalable sales and marketing model. We are already enjoying significant benefits of a more efficient global operation and have reinvested that capital into our strate
Slide 7: FY18 Results Presentation 16 August 2018
FY18 Results Presentation 16 August 2018 7
Slide 8: Please be patient while the video loads
Please be patient while the video loads Video can be viewed at: http://www.3plearning.com/investors/update-august2018/ FY18 Results Presentation 16 August 2018 8
Slide 9: FY18 Results Presentation 16 August 2018
FY18 Results Presentation 16 August 2018 9
Slide 10: FY18 Results Presentation 16 August 2018
FY18 Results Presentation 16 August 2018 10
Slide 11: FY18 Results Presentation 16 August 2018
FY18 Results Presentation 16 August 2018 11
Slide 12: FY18 Results Presentation 16 August 2018
FY18 Results Presentation 16 August 2018 12
Slide 13: Culture and Talent
” Why our people think 3P is a Great Place To Work ….. Definitely more smiles on faces Culture and Talent Building a High Performance and Great Place to Work Culture than any other company. ” . FY18 Results Presentation 16 August 2018 13
Slide 14: Culture and Talent
” Why our people think 3P is a Great Place To Work ….. Culture and Talent Everyone is accepted and allowed to be Building a High Performance and Great Place to Work Culture themselves. I think this contributes to encouraging people to live our core values. ” ▪ Global benefits review and improved sal
Slide 15: FY18 Financial Results
FY18 Financial Results FY18 Results Presentation 16 August 2018 3 15
Slide 16: APAC – Defend and grow our core
APAC – Defend and grow our core Key Points APAC Financials ▪ Revenue growth 8% with licence revenue up 4% benefited by 6% ARPU increase. $M FY18 FY17 Mvmt Growth Copyright revenue increase 46% as a result Licence revenue 30.3 29.0 1.3 4% of the increased usage of printable Copyright fees, sponsorshi
Slide 17: EMEA – Grow market share
EMEA – Grow market share EMEA Financials Key Points £M FY18 FY17 Mvmt Growth ▪ Revenue growth was flat with difficult market conditions Revenue 7.5 7.5 - 0% impacting performance. Real government spending cuts Costs (3.2) (3.2) - 0% EBITDA 4.3 4.3 - 0% to school budgets coupled with increased compet
Slide 18: Americas – Year of transition
Americas – Year of transition Americas Financials Key Points US$M FY18 FY17 Mvmt Growth ▪ Year of transition as we reset the sales model and Licence revenue 5.8 5.5 0.3 5% established a low cost teleweb sales team in Calgary Other income 0.5 0.2 0.3 150% resulting in revenue growth of 11% overall an
Slide 19: FY18 – Income Statement
FY18 – Income Statement $M FY18 FY17 Mvmt Growth Key Points Total Revenue 55.4 52.5 2.9 6% ▪ Revenue increased 6% with no significant FX Employee (24.8) (25.0) 0.2 (1%) impacts. Marketing (2.0) (2.0) - - Technology and occupancy (5.9) (5.3) (0.6) 11% ▪ Expenses declined 2% driving a 24% improvement
Slide 20: FY18 – Balance sheet
FY18 – Balance sheet $M 30-Jun-18 30-Jun-17 Cash and cash equivalents 23.0 3.3 Key Points Trade and other receivables 6.6 7.0 ▪ Cash of $23.0M with net proceeds from sale of Income tax receivable 0.2 1.5 Learnosity and strong second half cash collections Total current assets 29.8 11.8 Property, plan
Slide 21: FY18 – Cash flow
FY18 – Cash flow $M FY18 FY17 Mvmt Key Points Underlying Core EBITDA 19.6 16.0 3.6 ▪ Net cash flows after investments increased Non-cash expense (0.6) 0.5 (1.1) to $29.2M due to annual operating Change in working capital (3.7) 2.8 (6.5) performance and the sale of Learnosity Operating free cash flow
Slide 22: Investment in Products & Technology Assets
Investment in Products & Technology Assets CAPEX % OPEX % Total Key Points $M Mathematics 7.5 84% 1.4 16% 8.9 ▪ Continued investment in Products and Digital Systems to support Literacy 1.1 58% 0.8 42% 1.9 scalable sales Digital Systems 1.1 50% 1.1 50% 2.2 ▪ Total cash investment in products Total Ca
Slide 23: FY19 Outlook
FY19 Outlook FY18 Results Presentation 16 August 2018 4 23
Slide 24: FY19 Outlook
FY19 Outlook ▪ Complete foundation building around product portfolio and developing a scalable sales and marketing platform ▪ Stronger Balance Sheet with $23M of cash that will allow us to continue to support and grow the business ▪ Another modest year of revenue growth but billings growth expected
Slide 25: Q&A
Q&A FY18 Results Presentation 16 August 2018 5 25
Slide 26: Appendices
Appendices FY18 Results Presentation 16 August 2018 6 26
Slide 27: Revenue by Geography and Product Family
Revenue by Geography and Product Family Revenue by Geography Revenue split by Geography A$M FY14 FY15 FY16 FY17 FY18 FY18 FY17 Growth FY18 FY17 APAC 24.6 30.1 30.8 31.8 34.4 34.4 31.8 8% EMEA 8.6 10.3 12.6 13.0 13.0 13.0 13.0 0% Americas 3.3 4.4 5.9 7.7 8.0 8.0 7.7 4% 62% 61% Total 36.5 44.8 49.3 52
Slide 28: Licences by Geography and Product Family
Licences by Geography and Product Family Licences by Geography Licences split by Geography 000s FY14 FY15 FY16 FY17 FY18 FY18 FY17 Growth FY18 FY17 APAC 2,486 2,627 2,664 2,704 2,678 2,678 2,704 (1%) EMEA 1,295 1,498 1,660 1,737 1,534 1,534 1,737 (12%) Americas 662 903 1,026 1,001 849 849 1,001 (15%
Slide 29: Statutory EBITDA
Statutory EBITDA Reconciliation of Segment EBITDA to Statutory EBITDA $M FY18 FY17 Mvmt Growth APAC EBITDA 27.0 23.7 3.3 14% Less : Corporate Costs and Development (16.6) (16.0) (0.6) 4% Add : Intersegment Royalties 7.6 7.4 0.2 3% Statutory EBITDA 18.0 15.1 2.9 19% EMEA EBITDA 7.5 7.6 (0.1) (1%) Les
Slide 30: 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, 16 August 2018. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information