Slide 1: Investor & Analyst Briefing
14 August 2020 Investor & Analyst Briefing Full year results to June 2020 Rebekah O’Flaherty – CEO | Dimitri Aroney - CFO
Slide 2: Our Agenda
Our Agenda Overview Outlook Strategy update Q&A FY20 Financial Appendices Results Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 3: Overview
Overview Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 4: FY20 Overview
FY20 Overview ARR - royalty adjusted1,3 $50.0M ↑ 1% on pcp Licences2,3 4.7M ↑ 3% on pcp Licences Statutory Revenue 5.1 -10% 4.7 4.6 +2% $55.1M ↑ 1% on pcp 0.9 0.9 0.9 1.5 Underlying EBITDA 1.4 1.4 $14.6M ↓ 18% on pcp 2.7 2.4 2.3 Net Dollar Churn Percentage3 15% 2%-pts improvement on pcp Jun-18 Jun-1
Slide 5: Strategy update
Strategy update Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 6: 2020-2022 Accelerate profitable growth
2020-2022 Accelerate profitable growth ▪ At the end of FY19 we completed a 3-year long organisational restructure, including tackling technical debt and investing in scalable sales and marketing systems. We now have a stable cost base positioning us well to enjoy operating leverage as we accelerate
Slide 7: 2020-2022 Accelerate Profitable Growth Plan (Year 1)
2020-2022 Accelerate Profitable Growth Plan (Year 1) • Secured a MOE Middle East contract valued at $10MUSD recognised in FY21 and built an Enterprise Funnel for FY21 (MATS, District, Ministry and Corporate Social Responsibility and Sponsorship). • Significant refresh of Mathletics activities (30K n
Slide 8: FY20 Financial results
FY20 Financial results Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 9: FY20 Results Summary
FY20 Results Summary ▪ Overall performance of the company has been AU$M FY20 FY19 $+/- %+/- relatively resilient during the COVID-19 pandemic. Our Revenue & other income1 55.1 54.4 0.5 1% people and services have not been impacted to date Licence revenue and we have experienced an increase demand fo
Slide 10: APAC
APAC ▪ ARR-royalty adjusted, was up 7% and licences were up 4% AU$M FY20 FY19 $+/- %+/- reflecting increased H2-20 sales driven by improved FY20 Revenue - Maths & Literacy 30.4 31.1 (0.7) (2%) retention, improved back to school new business and Revenue - Copyright fees, and COVID-19 demand. other 3.
Slide 11: EMEA
EMEA AU$M FY20 FY19 $+/- %+/- ▪ FY20 revenue increased 1% in AUD (6% decline in GBP). Revenue - Maths and Literacy 12.2 12.1 0.1 1% H1-20 was impacted by Brexit uncertainty; however, H2-20 Revenue - Other - - - NM showed 9% growth on H1-20. Total revenue 12.2 12.1 0.1 1% Expenses (5.7) (4.7) (1.0) 2
Slide 12: Americas
Americas ▪ Licence revenue was up 11% (5% in USD) despite AU$M FY20 FY19 $+/- %+/- challenging conditions in USA market due to funding Revenue - Maths and Literacy 8.8 7.9 0.9 11% uncertainty caused by COVID-19. Revenue - Other 0.3 0.7 (0.4) (57%) Total revenue 9.1 8.6 0.5 6% ▪ ARR-royalty adjusted,
Slide 13: FY20 Income statement
FY20 Income statement $M FY20 FY19 $+/- %+/- ▪ Employee expenses have increased by $3.7M due higher sales- related costs in the Americas, variable selling costs accrued on Total Revenue1 55.1 54.6 0.5 1% Employee expenses (29.9) (26.2) (3.7) 14% the Middle Eastern Ministry of Education deal and vari
Slide 14: FY20 Cash flow
FY20 Cash flow ▪ FX and other non-cash has increased due FX differences, $M FY20 FY19 $+/- increased share-based payments and increase in non-cash Underlying EBITDA 14.6 17.7 (3.1) customer contracts. FX and other non-cash (0.5) (0.9) 0.4 ▪ Improved working capital due to improved H2 billings in Cha
Slide 15: FY20 Balance sheet
FY20 Balance sheet $M 30-Jun-20 30-Jun-19 Cash and cash equivalents 27.1 25.8 ▪ Cash of $27.1M is up $1.3M with no bank debt. Trade and other receivables 11.1 10.8 Lease receivable* 0.6 - ▪ Lease receivable, Right-of-use assets and Lease liabilities Total current assets 38.8 36.6 are a result of ado
Slide 16: Investment in products & technology assets
Investment in products & technology assets ▪ We exit FY20 with a stronger product portfolio having Investment split by asset type and accounting treatment launched Readiwriter Spelling, and enhanced $M CAPEX % OPEX % Total Mathletics with Spanish language, 700+ Problem Solving & Reasoning activities
Slide 17: Outlook
Outlook Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 18: FY21 Group Outlook
FY21 Group Outlook ▪ APAC: We expect single digit revenue and EBITDA growth for the full year. ▪ EMEA: Significant revenue and EBITDA growth are expected in FY21 following the closure of our MOE agreement as well as other enterprise opportunity in the funnel. ▪ Americas: We expect continued market u
Slide 19: Q&A
Q&A Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 20: Appendices
Appendices Full Year 2020 Investor & Analyst Briefing 14 August 2020
Slide 21: Revenue by geography and product family
Revenue by geography and product family Revenue by Geography Revenue split by Geography Jun-19 Jun-20 A$M Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Americas Americas APAC 30.1 30.8 31.8 34.4 33.7 33.8 16% 17% EMEA 10.3 12.6 13.0 13.0 12.1 12.2 Americas 4.4 5.9 7.7 8.0 8.6 9.1 Total 44.8 49.3 52.5 55
Slide 22: Licences by geography and product family
Licences by geography and product family Licences by Geography Licences split by Geography 000s Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20 Jun-19 Jun-20 APAC 2,627 2,664 2,704 2,678 2,287 2,384 Americas Americas EMEA 1,498 1,660 1,737 1,534 1,337 1,366 20% 20% Americas 903 1,026 1,001 849 931 932 Tot
Slide 23: ARR Analysis
ARR Analysis Group EMEA A$M H1-19 H2-19 FY19 H1-20 H2-20 FY20 A$M H1-19 H2-19 FY19 H1-20 H2-20 FY20 Opening ARR - royalty * adjusted 49.9 52.0 49.9 49.6 49.3 49.6 Opening ARR - royalty adjusted 12.6 12.0 12.6 11.3 11.3 11.3 Acquired business* 2.0 0.3 2.3 - - - Acquired business - - - - - - New busin
Slide 24: Statutory EBITDA
Statutory EBITDA Reconciliation of Segment EBITDA to Statutory EBITDA per note 4 of the FY2020 financial statements* $M FY20 FY19 Mvmt Growth APAC Underlying EBITDA 25.4 25.9 (0.5) (2%) Less : Corporate Costs and Development (16.9) (16.0) (0.9) 6% Add : Intersegment Royalties & Charges 6.2 6.9 (0.7)
Slide 25: Impact of AASB16 Leases
Impact of AASB16 Leases FY19 income statement, notionally adjusted for the FY20 impacts of adopting AASB16 Leases AASB16 Pro FY19 Leases forma A$M Actuals impact * FY19 Change Total Revenue 54.4 (0.6) 53.8 (1%) Employee expenses (26.2) - (26.2) - Marketing expenses (1.8) - (1.8) - Technology and occ
Slide 26: Definitions
Definitions Term Definition ARR - royalty adjusted is the annualised customer contract value of all active licence contracts in Annual Recuring Revenue - Royalty Adjusted (ARR - effect at a particular date, adjusted for the annualised value of royalties payable to third parties on Royalty Adjusted)
Slide 27: Rebekah O’Flaherty
For further information, analysts, investors and other interested parties should contact: Rebekah O’Flaherty Dimitri Aroney Chief Executive Officer Chief Financial Officer rebekah.oflaherty@3plearning.com dimitri.aroney@3plearning.com The release of this announcement has been authorised by the Board
Slide 28: 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, 14 August 2020. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information