Iph Ltd. · ASX:IPH
Iph — Investor Presentation (February 2019)
30 slides from Iph's investor presentation, Feb 14, 2019
Slide 1: 2019 Half Year Results Investor Presentation
2019 Half Year Results Investor Presentation Half year ended 31st December 2018 14th February 2019 Presented by: Dr. Andrew Blattman Managing Director / CEO, IPH Limited John Wadley Chief Financial Officer, IPH Limited www.iphltd.com.au 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by IPH Limited (IPH) and comprises written No representation, warranty or assurance (express or implied) is given or materials/slides for a presentation concerning IPH. made by IPH that the forward looking statements contained in this presentation are accur
Slide 3: Table of contents
Table of contents 01 HY19 highlights 02 HY19 results 03 Market overview 04 Operations review 05 Acquisitions update 06 Strategic direction 07 Appendix 2019 Half Year Results Investor Presentation | www.iphltd.com.au 3
Slide 4: Half year 2019 highlights
Half year 2019 highlights 01 4
Slide 5: Operational highlights
Operational highlights Continued momentum from prior year delivers strong first half result across the IPH Group Strategic priorities for FY19 Results in HY19 Leverage market leading Successful merger of QLD businesses; 01 position in Australia/NZ improved performance in AJ Park Margin expansion thr
Slide 6: Financial highlights
Financial highlights Strong growth across all financial metrics Revenue 23.4% HY Dividend 4.3% $124.9m 12.0 cents per share EBITDA 27.7% Underlying EBITDA1 21.7% $40.6m $40.4m NPAT 22.8% Underlying NPAT1 14.7% $24.2m $27.9m Diluted EPS 21.4% Underlying Diluted EPS 13.8% 12.2 cents per share 14.1 cen
Slide 7: HY19 Results
HY19 Results 02 7
Slide 8: Revenue and EBITDA
Revenue and EBITDA Strong revenue and earnings growth – organically and by acquisition Underlying Revenue $’m Underlying EBITDA $’m Australia IP Australia IP Data & analytics services Data & analytics services Asia IP Asia IP New businesses New businesses Corp & interco Corp & interco 1. Revenue fro
Slide 9: Like for Like revenue and EBITDA
Like for Like revenue and EBITDA Momentum building in HY19 Commentary Underlying New Accounting FX Currency Adjusted Underlying Revenue1 Businesses2 Movements3 Adjustment4 Revenue Revenue Chg % • IPH Group revenue up 3% and Dec 18 Dec18 Dec 17 EBITDA up 8% Australia & NZ IP 84.7 (15.2) (1.3) (1.5) 6
Slide 10: Underlying NPAT and EPS
Underlying NPAT and EPS Half year ended 31 December 2018 HY19 Statutory Adjustments Underlying HY18 Statutory Adjustments Underlying $'m Income Statement Earnings HY192,3 Income Statement Earnings HY18 Total revenue 125.0 (2.1) 122.8 101.2 101.2 Recoverable expenses (35.7) (35.7) (28.9) (28.9) 89.3
Slide 11: Cash flow statement
Cash flow statement Strong cash conversion Commentary Half year ended 31 Dec 2018 HY18 Cash Flow HY19 Cash Flow Statement $'m Statement • High proportion of earnings are Statutory EBITDA 40.6 31.8 converted to cash Non-cash movements (0.1) 0.1 • Strong cash flows support a high Change in working cap
Slide 12: Balance sheet
Balance sheet Balance sheet strength provides flexibility Commentary $'m Balance Sheet as at 31 Dec 2018 Balance Sheet as at 30 Jun 2018 Cash and cash equivalents 29.4 26.2 • $29.4m cash Trade and other receivables 56.0 57.1 • $32.6m of bank borrowings. US$6.5m Other current assets 7.5 5.3 Total cur
Slide 13: Impact of foreign currency
Impact of foreign currency Increased significance of SGD Earnings currency Balance sheet sensitivity Currency profile HKD sensitivity • The Group is also exposed to FX on the level of its USD 8% Service charges denominated cash and receivables in the balance sheet, SGD 26% • Based on the USD profile
Slide 14: Market overview
Market overview 03 14
Slide 15: Patent market - Australia
Patent market - Australia IPH Group continues to hold No.1 patent market position Australian patent market filings 1 IPH market share 2 • The Australian patent market has grown 3.9% from 1H FY18 to 1H FY19 • IPH Group (inclusive of AJ Park) grew by 1.8% in 1H FY19, compared with 1H FY183 • If inboun
Slide 16: Patent market - Singapore
Patent market - Singapore IPH Group continues to hold No.1 patent market position Singapore patent market filings 1 IPH filings and Group market share 2 • Overall Singapore market up 4.4%, from CY17 to CY18 • Combined, the IPH Group continues to hold the No.1 patent market position in Singapore with
Slide 17: Patent market - Asia
Patent market - Asia IPH growth driver IPH Group filings in key jurisdictions in Asia 1 25.3% (5.4%) • IPH Group’s Asia-Pacific platform ensures (9.2%) earnings diversification and resilience • Positive growth experienced in Indonesia and Thailand in 1H FY19 compared to 1H FY18 45.5% 6.6% including
Slide 18: Filings by IPH companies
Filings by IPH companies Underpins future earnings and growth Patent filings by IPH Group 1 Trade mark filings by IPH Group 1 • Holding steady across the group in 1H FY19 • The trade mark business is 12% of Group revenue 1. IPH management estimate based on internal filing information for 1H for all
Slide 19: Operations review
Operations review 04 19
Slide 20: Operational highlights
Operational highlights Strengthening and consolidating the IPH Group AJ Park FAKC / Cullens / Spruson & Ferguson merger Performing to expectations A$4.8m EBITDA Merger successfully completed in July 2018 Improved margin to 19% (16% prior year) Queensland teams now fully integrated into Spruson & Fer
Slide 21: Operational highlights
Operational highlights Value realisation Practice Insight Sale of products to CPA Global Building momentum Practice Insight’s sales and development activities are now focused Practice Insight’s Filing Analytics and Citation Eagle product on its new autonomous time-keeping tool, WiseTime. businesses
Slide 22: Acquisitions update
Acquisitions update 05 22
Slide 23: Acquisition of equity stake in Xenith IP Group Limited
Acquisitions update Acquisition of equity stake in Xenith IP Group Limited On 13 February 2019 IPH announced it had acquired an equity interest in Xenith IP Group Limited (“Xenith”) of approximately 19.9% at $1.85 per share for a total of c.$33m IPH has entered into this transaction consistent with
Slide 24: Strategic direction
Strategic direction 06 24
Slide 25: Strategic direction
Strategic direction Continued focus on IPH’s growth strategy Consolidate acquisitions • Continuing to focus on margin expansion through AJ Park and successful merger of FAKC, Cullens into Spruson & Ferguson Organic growth • Leverage market leading position in Australia / New Zealand • Continued focu
Slide 26: Appendix
Appendix 07 26
Slide 27: Business snapshot
Business snapshot Leading intellectual property group in Asia-Pacific 2019 Half Year Results Investor Presentation | www.iphltd.com.au 27
Slide 28: Patent lifecycle
Patent lifecycle Long-life IP cycle supports consistent revenues and earnings Each year more than half* of the Typical (indicative) foreign patent application route in Australia total patent applications filed in Australia come through the PCT system in the form of PCT National Phase patent applicat
Slide 29: IPH corporate information
IPH corporate information Leading intellectual property group in Asia-Pacific Directors Ordinary Shares on Issue Number Holders %1 • Mr. Richard Grellman AM Free float 192,720,019 9,526 97.7% Chairman Escrowed • Dr. Andrew Blattman • AJ Park (31 Oct 19) 4,621,547 18 2.3% CEO and Managing Director To
Slide 30: Thank you
Thank you Asia Pacific's leading IP professional services group www.iphltd.com.au 30