Tribal Group Plc · LSE:TRB
Tribal — H1 2020 Earnings Presentation
28 slides from Tribal's earnings presentation, August 2020
Slide 1: 2020 Half Year Results
Empowering the world of education 2020 Half Year Results August 2020
Slide 2: 2020 H1 Overview
2020 H1 Overview Resilience – move to remote delivery, and swift action on cost savings measures delivered good performance Revenue increased in SIS segment, profit up 18%; revenue fall of 17% in Education Services, profit down only £300k Increase in key metrics: Annual Recurring Revenue, Adjusted E
Slide 3: 2020 priorities
2020 priorities Ensure business continuity, protect cash, maximise Protect the business from revenue, and support customers and protect staff. impact of coronavirus Execute cost mitigation actions to protect shareholder value Win new customers and Drive new business sales and support our customers i
Slide 4: 2020 H1 Highlights
2020 H1 Highlights £m Adjusted Operating Profit, EBITDA 8.2 23% 8.1 22% 8.0 21% 7.9 20% Student Information Systems Higher Education: Won Chartered Accountant Australia & New Zealand (CAANZ) and Kaplan Australia; Edge TCSI module live; University of Northampton 7.8 19% implementation commenced. Furt
Slide 5: COVID-19 cost mitigations
COVID-19 cost mitigations 4 day week for all staff for 3 months to end July, saving £550k pcm; benefits of furlough to be repaid, c£50k Headcount: Reduction of 40 roles, saving £1.4m in year (£2.1m annualised); one-off cost £0.5m Other cost management: no travel, all customer delivery successfully m
Slide 6: Post-COVID-19 initiatives
Post-COVID-19 initiatives Remote customer delivery: can improve customer satisfaction, improves business efficiency, enables global delivery Employee Work location: remote working can improve employee satisfaction and productivity, and reduce cost & carbon footprint Tribal offices: smaller office fo
Slide 7: Delivering on Tribal Edge strategy
Delivering on Tribal Edge strategy Successful introduction of first Edge module Australian Gov Reporting module (TCSI): closed deals with 12 universities $10m, 7-year cloud contract signed with University of Sydney major contract to run SMS in the public cloud (signed August 2020) Edge metrics up: A
Slide 8: Financial Report
Financial Report August 2020 Tribal Results Half Year 2020 8
Slide 9: Summary
Summary 6 months ended 30 June 2020 Revenue Adjusted EBITDA Net Cash 2020 Reported £38.2m £8.1m £6.7m 2019 £39.7m Constant Currency down 4% £7.7m up 6% £6.0m up 12% 2019 £40.4m Reported down 5% £8.3m down 2% £6.0m Revenue: SIS revenue increased 1.3%, overall decrease due to impact of COVID-19 on E
Slide 10: Financial Key Points
Financial Key Points Revenue Adjusted Operating Profit, EBITDA Statutory Profit After Tax £38.2m £8.1m £3.8m 2019 £39.7m 1 down 4% 2019 £7.7m 1 up 6% 2019 £3.6m up 4% Annual Recurring Revenue at period end Adjusted Operating Profit, EBITA Earnings per share (diluted) £43.2m £6.6m 1.9p 2019 £41.8m 1
Slide 11: Segment Results
Segment Results Revenue 2019 H1 Growth % 6 months to 30 June 2020 H1 2019 H1 Constant Constant Currency Currency (£m) Student Information Systems 29.0 29.1 28.6 1% Education Services 9.2 11.3 11.1 (17%) Total 38.2 40.4 39.7 (4%) Adjusted Operating Profit 2019 H1 Growth % 6 months to 30 June 2020 H1
Slide 12: Student Information Systems
Student Information Systems SSOL Dynamics 2% 4% Schools WBL 9% Student Information Systems 2019 H1 Growth % £ Revenue 4% 2020 H1 2019 H1 Constant Constant (£m) Currency Currency m 18.0 License & Development Fees 3.3 3.4 3.4 (3%) 16.0 HE 56% Support & Maintenance Fees 16.2 16.2 15.8 3% FE Implementat
Slide 13: Annual Recurring Revenue (ARR) at period end
Annual Recurring Revenue (ARR) at period end ARR at period end 2020 2019 2019 Growth % ARR at period end £43.2m (2019 H1: £41.8m*) Constant Constant (£m) 30 June 30 June Currency Currency No impact from COVID-19 on renewals Support & Maintenance / 36.8 35.9 35.9 2.5% Increasing sales on a subscr
Slide 14: Committed Income
Committed Income Committed Income £131.2m (FY19: £140.6m*) >90% of next 6 months’ consensus revenue Committed as at 30 June 2020 committed split by year of expected recognition £ SIS £102.7m (2019 FY: £107.4m) m 140 £41.4 − 6 months less on the current 4 year contract with Callista m customers 1
Slide 15: Cashflow
Cashflow Cashflow 2020 H1 2019 H1 (£m) Net Cash £6.7m (2019 H1: £6.0m; 2019 FY: Operating Cashflows 8.2 7.4 £16.5m) Working Capital movements* (3.7) (10.2) Significant one-off payment of £8.1m to settle Tax (paid) / received (0.1) 0.1 platform dispute, and earnout payment Tribal Adjusted Operating
Slide 16: Tribal Strategy: looking ahead
Tribal Strategy: looking ahead August 2020 Tribal Results Half Year 2020 16
Slide 17: Tribal Strategy: Sustain & Grow
Tribal Strategy: Sustain & Grow SUSTAIN : Customer Installed Base GROW : Edge & Edge Readiness S&M Annual Recurring Revenue (ARR) : protect Tribal:Cloud : Public Cloud delivery, optimised for through excellence of customer service Tribal products SMS: new logo / existing customer sales : Add
Slide 18: Tribal's Student Information solution
Tribal’s Student Information solution Mobile app Student Staff Voice (Engage) Portal Portal Your journey: Marketing & Curriculum Scheduling & Datamart Degree Business Recruitment Planning Timetabling Reporting Apprenticeship Evolving to an Engagement Management advanced Student API Integration Layer
Slide 19: Edge Development: twin track approach
Edge Development: twin track approach 2020 2021 Admissions Core development Admissions Enrolment & Registration Curriculum Planning Added Value development TCSI Datamart / BI & Management SITS / Callista Edge Ready : Leading Practices Edge Consistent User Interface TCSI (Transforming the Collection
Slide 20: Tribal Edge: Admissions module
Tribal Edge: Admissions module Edge Admissions revolutionises the staff & student experience. Empowering the end to end applicant journey: seamless flow from the marketing & recruitment through a supported application process Simplified, beautiful and intelligently designed interfaces that are intui
Slide 21: The Potential of Tribal Edge: Admissions
The Potential of Tribal Edge: Admissions Migration to Edge: New customers in New customers in new existing customers existing geographies geographies Increased Share of Wallet of Enquiries-to-Enrolment Over 4,000 Higher Education existing customer spend institutions in the US* process is stand
Slide 22: Tribal Edge: Investment & Admissions Return
Tribal Edge: Investment & Admissions Return Investment in Tribal Edge 2017 – 2021 (£m) Edge Admissions: revenue & profit to 2025 (£m) 10 16 100% 9 14 80% 8 12 7 10 60% 6 8 5 40% 4 6 3 4 20% 2 2 1 0 0% 0 2021 2022 2023 2024 2025 2017 2018 2019 2020 2021 Total Annual Recurring Revenue Profit Customer
Slide 23: Summary & Outlook
Summary & Outlook Full year expected to be slightly ahead of expectation for Adjusted EBITDA and ahead for Adjusted EBITA Increasing customer interest in moving Student Management Systems into the public cloud, and standardising processes Opportunities for continued remote delivery, home-working and
Slide 24: Thank you Any questions?
Thank you Any questions? August 2020 Tribal Results Half Year 2020 24
Slide 25: Contact
Contact: Email Mark.Pickett@tribalgroup.com Paul.Simpson@tribalgroup.com WWW.TRIBALGROUP.COM @TRIBALGROUP August 2020 Tribal Results Half Year 2020 25
Slide 26: Appendix
Appendix August 2020 Tribal Results Half Year 2020 26
Slide 27: Product Development
Product Development Product Development 2020 H1 2019 H1 Change (£m) Total spend 5.9 5.8 3% Edge investment £3.0m (2019 H1: £2.8m) Increasing investment in Edge platform Of which capitalised 3.1 2.8 9% TCSI module live (Australian data collection) - Edge 3.0 2.8 7% Admissions module to complete
Slide 28: Consolidated Income Statement
Consolidated Income Statement Consolidated Income Statement EBITDA to Statutory Profit After Tax 2020 2019 £m (£m) Revenue 38.2 40.4 Gross Profit margin 53% 50% Adjusted Operating Profit (EBITDA) 8.1 8.3 Adjusted Operating Profit margin 21.3% 20.5% Adjusted Operating Profit (EBITA) 6.6 6.3 Adju