Slide 1: Investor & Analyst Briefing
Investor & Analyst Briefing Full year results to 30 June 2022 Presented: 22 August 2022 by Chairman Matthew Sandblom CEO Jose Palmero CFO Anton Clowes 1
Slide 2: 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, 22 August 2022. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information
Slide 3: Agenda
Agenda • Overview of Results • Outlook • Chairman’s Update • Q&A • CEO Update • Appendices • Results & Cash Flow 3
Slide 4: Overview of Results
OVERVIEW OF RESULTS Matthew Sandblom 4
Slide 5: FY22 Highlights
OVERVIEW OF RESULTS FY22 Highlights UNDERLYING1 EBITDA REVENUE B2C BILLINGS3 B2B ARR $13.8m $97.2m $38.8m $64.4m +46% +69% +13% +0% vs pcp2 vs pcp2 vs pcp2 vs pcp2 UNDERLYING CASH CUSTOMERS PRODUCT DEVELOPMENT FLOW FROM OPERATIONS >5.5m $27.6m BEFORE TAX • $22.1m product development $22.6m • • • B2B
Slide 6: Chairman's Update
CHAIRMAN’S UPDATE Matthew Sandblom 6
Slide 7: Strategic Initiatives
CHAIRMAN’S UPDATE STRATEGIC INITIATIVES Strategic initiatives for FY23 and beyond B2B Product Strategy B2C Product Strategy B2B product strategy will further evolve to offer our hero products as Similarly to B2B, our B2C strategy will start moving to a solutions- Reading, Writing & Maths solutions t
Slide 8: CEO Update
CEO UPDATE Jose Palmero 8
Slide 9: Revenue and Operations
CEO UPDATE Revenue and Operations Merger As announced in February 2022, operational integration with Blake is now complete; we have achieved annual synergy savings of approximately $10m, headcount reduction was aligned with product simplification and new sales strategies. B2C Solid year for B2C; rev
Slide 10: Product and People
CEO UPDATE Product and People Mathletics Improvements to the existing site to increase engagement is complete with Meritopia 2.0 and Skill Quests reports released. The build of New Courses, Student centre and Avatar are the focus for FY23, with priority on AU Courses Years 3-7. Mathseeds For the B2C
Slide 11: Sales Performance in the Consumer Market
CEO UPDATE | B2C Sales Performance in the Consumer Market Consumer billings1 performance for Reading Eggs, Mathseeds and Mathletics by platform and geography for FY22 and FY212. Billings by Platform ($m) Billings by Geography ($m) 38.8 38.8 34.2 3.6 34.2 2.8 10.4 15.9 8.4 15.0 9.3 9.3 19.3 19.1 16.4
Slide 12: Sales Performance in the Schools Market
CEO UPDATE | B2B Sales Performance in the Schools Market Core school market delivering focused results with smaller, more The graph below shows school ARR trajectory for FY22 and efficient sales team. FY21 for our 3 main products4, namely: Mathletics, Reading Eggs & Mathseeds. ARR FY22 FY211 +/- % +
Slide 13: Results & Cash Flow
RESULTS & CASH FLOW Anton Clowes 13
Slide 14: P&L Key Drivers
RESULTS ANALYSIS P&L Key Drivers Profit and Loss Statement FY22 FY211 +/- %+/- $m ▪ B2B revenues increased by 8% to $57.9m while ARR remained flat on Revenue B2B 57.9 53.7 4.2 8% pcp despite smaller US sales team and sunsetting ReadiWriter and B2C 39.3 3.8 35.5 934% Spellodrome. Other revenue and ot
Slide 15: B2C Performance Metrics
RESULTS ANALYSIS B2C Performance Metrics $m FY22 FY214 +/- % +/- $m FY22 FY21 +/- %+/- Gross Billings1 38.8 34.2 4.6 13% Revenue 39.3 3.8 35.5 934% Licences6 (k) 313.1 282.7 30.4 11% ARPU2 ($) 124.0 121.0 3.0 2% $m FY22 FY21 4 +/- % +/- Expenses Gross Billings1 38.8 34.2 4.6 13% Sales, Marketing & C
Slide 16: B2B Performance Metrics
RESULTS ANALYSIS B2B Performance Metrics $m FY19 FY20 FY21 FY22 $m FY22 FY21 +/- % +/- Opening ARR 53.4 55.3 56.1 64.4 Revenue 57.9 53.7 4.2 8% Acquired business* 3.3 - 6.7 0.4 New business 5.7 8.5 7.4 5.9 Expenses Net upsell/downsell (0.1) (0.2) 1.5 2.9 Sales, Marketing & Cost of Revenue3 (26.9) (2
Slide 17: Cash Balance Bridge
CASH ANALYSIS Cash Balance Bridge ▪ Underlying cash inflows from operations before tax were $22.6m driven by strong performance of our B2C business. ▪ Underlying tax paid of $4.0m excludes $1.8m Blake stub period tax paid during the year. ▪ Net intangibles addition of $5.4m includes $3.1m Writing Le
Slide 18: EBITDA Cash Flow Bridge
CASH ANALYSIS EBITDA Cash Flow Bridge ▪ Underlying cash inflows from operations before tax were $22.6m driven by strong performance of our B2C business. ▪ Underlying tax paid of $4.0m excludes $1.8m Blake stub period tax paid during the year. ▪ Net intangibles addition of $5.4m includes $3.1m Writin
Slide 19: Outlook
OUTLOOK 19
Slide 20: Outlook FY23 Guidance
OUTLOOK Outlook FY23 Guidance1 • Revenue of between $111.0m and $115.0m; and • Underlying EBITDA of between $15.0m and $18.0m. In addition, we expect to generate cash flow from operations before tax within at least the same EBITDA range of between $15.0m and $18.0m. 1. Subject to currencies remainin
Slide 21: Q&A
Q&A 21
Slide 22: Appendices
APPENDICES 22
Slide 23: Glossary
APPENDICES Glossary Term Definition ARR Annual Recuring Revenue Churn Percentage Churn Percentage is calculated as a proportion of the opening School ARR in a rolling 12-month period. Earnings before interest, tax, depreciation and amortisation, excluding corporate advisory, restructure and integrat
Slide 24: End of Presentation
End of Presentation This presentation should be read in conjunction with other publicly available materials. Further information is available on 3P’s website at: www.3plearning.com/investors 24