Iph Ltd. · ASX:IPH

Iph — H1 FY2015 Earnings Presentation

28 slides from Iph's earnings presentation, Feb 26, 2015

1. Slide 1: Half Year Results Presentation

   For personal use only Half Year Results Presentation Six months to 31 December 2014. 26 February 2015 1

2. Slide 2: Disclaimer

   Disclaimer For personal use only This document has been prepared by IPH Limited (IPH) and comprises written materials/slides for a presentation concerning IPH. This presentation is for information purposes only and does not constitute or form part of any offer or invitation to acquire, sell or other

3. Slide 3: Today's Presenters

   Today’s Presenters For personal use only David Griffith, Managing Director Dr. Andrew Blattman, Director Asia Malcolm Mitchell, Chief Financial Officer 3

4. Slide 4: Contents

   Contents For personal use only 1. HY15 Highlights 2. Business Update & Review 1. Business Snapshot 2. Growth Initiatives 3. Investment Highlights 3. HY15 Financial Performance Appendices • Industry Overview • Investment Highlights • History 4

5. Slide 5: HY15 Highlights

   HY15 Highlights For personal use only  Successful IPO in November 2014  Significant net benefits derived from foreign exchange movements  Strong growth from Spruson & Ferguson Asia  Pro forma NPAT of $13.4m (EPS 8.5c)  Underlying earnings in line with Prospectus forecasts  Pro forma operating

6. Slide 6: Operations Update

   Operations Update For personal use only  Australia  Retained No.1 market share position (patent filing)  Total patent applications filed in line with previous year  Trade mark applications filed down on previous year (-15%)  Revenue up against budget  primarily due to US$ strengthening against

7. Slide 7: Business Snapshot

   Business Snapshot Australia Asia For personal use only Business Patents & Designs Trade Marks Legal Patents & Designs HY15 Revenue1 47% 9% 4% 40% • Services are charged on an hourly rate, fixed price basis or a combination of the two. Pricing is based on AUD, SGD, USD, Euros, and Revenue Model Malay

8. Slide 8: IPH's Hub Strategy

   IPH’s Hub Strategy For personal use only  Key to IPH’s strategy is its operation of IP service hubs  S&F operates two key IP hub (Sydney and Singapore) offices – “one-stop” service for clients co-ordinating IP applications in 25 countries across Asia Pacific  IPH’s hub strategy has established a

9. Slide 9: Who are IPH's clients?

   Who are IPH’s clients? For personal use only Highly Diversified Blue Chip Long Standing Relationships (3,000+ active clients in FY14)  Broad spread of blue chip, Revenues by Client in FY14 1 Tenure of Top 20 Clients 2 multinational clients predominantly from the USA, Europe and Japan  Many Fortune

10. Slide 10: Future Growth Initiatives

    Future Growth Initiatives For personal use only  Maintain and grow patent market share in Singapore 1 Asian  Increase patent market share in other Asian countries Short Growth  Re-commence trade mark practice business in Asia1 Term  Leverage client relationships in Asia and Australia Short / 2 E

11. Slide 11: Investment Highlights

    Investment Highlights For personal use only  IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”) 1 Long track  S&F, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia Pacific record  Top-tier firm with a strong reputation and brand Strong  S&F operat

12. Slide 12: Investment Highlights

    Investment Highlights For personal use only Experienced  Strong board with complementary skill sets Board,  Long standing, experienced management team 6 management  Highly qualified and experienced professional IP team & personnel High barriers  Entrenched market position, large pipeline of work

13. Slide 13: HY15 Financial Results

    For personal use only HY15 Financial Results 13

14. Slide 14: Income Statement

    Income Statement  Underlying earnings in line with Prospectus forecasts For personal use only  Significant benefits derived from recent currency movements Six months ended Prospectus 31 December 2014 Statutory Restructuring S&F Law pre Other Pro forma Pro forma Foreign Constant Pro forma Income &

15. Slide 15: Segment Breakdown

    Segment Breakdown  Strong first half performance from Spruson & Ferguson Asia For personal use only Six months ended Group ‌31 December 2014 Australia Asia Pro forma Pro forma Pro forma Pro forma Earnings Full Year Earnings 1) Earnings Eliminations 1) HY15 Forecast #039;m Total revenue 24.9 19.3 (1.0)

16. Slide 16: Currency Sensitivity

    Currency Sensitivity For personal use only Service Charge Income Expenses net of Other Income by Currency 1) by Currency 2) Other 6% AUD EUR 8% 15% SGD SGD 36% 6% AUD USD 64% 65% Notes: 16 1) Based on Prospectus forecast pro forma Service Charge Income ($63.6m), applying the Prospectus forecast fore

17. Slide 17: Pro forma Revenue and EBITDA – FY13, FY14 & HY15

    Pro forma Revenue and EBITDA – FY13, FY14 & HY15 For personal use only Revenue #039;m EBITDA‌‌$’m‌‌ Australia Asia Australia Asia Interco 79.2 30.0 74.2 28.6 31.2 26.3 10.2 13.7 18.3 43.2 19.3 9.5 50.1 50.5 18.4 16.3 24.9 8.8 (2.2) (2.5) (1.0) FY13 FY14 HY15 FY13 FY14 HY15 17

18. Slide 18: Operating Metrics

    Operating Metrics Unit Volumes For personal use only  Australian Patent application volumes in line with previous year but below target, in a flat market.  Singapore Patent application volumes are up on previous year and are in line with target.  Australian Trade marks application volumes are dow

19. Slide 19: Cash Flow Statement

    Cash Flow Statement  Low CAPEX & minimal working capital requirements = Strong cash generation For personal use only  Dividends of $22.1m (including pre-IPO distributions) paid in the period Six months ended Prospectus Prospectus 31 December 2014 Statutory Restructuring Foreign Constant Pro forma

20. Slide 20: Consolidated Balance Sheets

    Consolidated Balance Sheets Statutory Pro forma Statutory For personal use only Balance Sheet Restructuring Balance Sheet Balance Sheet as at & IPO as at as at 1) 30 Jun 2014 Adjustments 30 Jun 2014 31 Dec 2014 #039;m  Net debt of $8.5m Cash and cash equivalents 4.3 (7.8) (3.5) 4.8 Trade and other rec

21. Slide 21: Changes in Equity

    Changes in Equity For personal use only Six months ended Minority Equity Non- 31 December 2014 Share Acquisition Benefits controlling Retained Total Capital Reserve Reserve FCTR interests Profits Equity #039;m As at 30 June 2014 0.4 (4.5) 0.0 (0.3) 0.6 3.9 0.1 Pre-offer FY14 distributions (0.5) (7.7) (

22. Slide 22: Appendices

    Appendices For personal use only  Industry Overview  History 22

23. Slide 23: What is IP?

    What is IP? For personal use only Types of IP A temporary monopoly right granted for a device, substance, method or process that Patents is new, inventive, and useful May consist of any stylised letter, word, name, signature, numeral, device, brand, Trade Marks heading, label, ticket, aspect of pack

24. Slide 24: Stages of IP Lifecycle

    Stages of IP Lifecycle For personal use only Timelines Up to 31 months Generally 2-5 years Up to 20 years Applications  Over 10,000 patents in renewal Patent phase where Group may  Over 9,700 applications filed by  Over 28,000 patent receive income through a Scale the Group (directly or applicati

25. Slide 25: Industry Growth - Patents

    Industry Growth - Patents Significant increase in filings between 2012 and 2013 reflects For personal use only impact of Raising the Bar Non-Resident Patent Applications Filed in Australia 1 30,000 CAGR 4.2% 25,000 20,000 15,000 10,000 5,000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2

26. Slide 26: Patent Application Filings by Country of Origin

    Patent Application Filings by Country of Origin For personal use only  Most patent applications filed in Australia and Singapore originate from the USA, Europe and Japan  Local clients represent a relatively small proportion of applications Australia 1 Singapore 2 Other Other Republic of Netherlan

27. Slide 27: Industry Growth – Trade Marks

    Industry Growth – Trade Marks For personal use only  Trade Marks represent 12% of S&F’s FY14A service charge revenues  Opportunity to increase market share Trade Mark Applications Filed in Australia 1 70,000 CAGR: 4.3% 60,000 50,000 40,000 30,000 20,000 10,000 0 1996 1997 1998 1999 2000 2001 2002

28. Slide 28: History

    History For personal use only 1982: 2001: Dan Shanahan, Ella Cheong Mirandah Principal publishes & Sprusons, Singapore 1887: Shanhan’s Australian established 2012: Sydney office & firm Law of Trade Marks & Buyout of Ella Cheong established by Passing Off 1997: 1923: completed Hepburn & Spruson Offic

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