Slide 1: Investor & Analyst Presentation FY19 H1 Results
21st February 2019 Investor & Analyst Presentation FY19 H1 Results For the six months ended 31 December 2018 Rebekah O’Flaherty – CEO | Simon Yeandle - CFO
Slide 2: Our Agenda
Our Agenda Overview FY19 Outlook Strategic Q&A Priorities Update FY19 H1 Financial Appendices Results FY19 H1 Results Presentation 21 February 2019
Slide 3: Overview
Overview FY19 H1 Results Presentation 21 February 2019
Slide 4: H1 Results Highlights
FY19 H1 Results Highlights $M FY19 H1 FY18 H1 $+/- %+/- Group Revenue was $24.0M, down $4.3M on prior year Revenue & Other income 24.0 28.3 (4.3) (15%) period due to the re-phasing of APAC annual renewals flagged at our last market update. APAC 13.9 17.8 (3.9) (22%) This has no impact on full ye
Slide 5: Strategic Priorities Update
Strategic Priorities Update FY19 H1 Results Presentation 21 February 2019
Slide 6: 3P on track for accelerated growth
3P on track for accelerated growth H2-FY19 marks the final stages of executing our 3-year strategic plan which has achieved its goals to reset the operating model, take significant cost out and reinvest in strengthening the product portfolio and building a scalable digitised sales and marketing mo
Slide 7: H1 Results Presentation February 2019
FY19 H1 Results Presentation 21 February 2019 7
Slide 8: H1 Results Presentation February 2019
FY19 H1 Results Presentation 21 February 2019 8
Slide 9: Please be patient while the video loads
Please be patient while the video loads Video can be viewed at: http://www.3plearning.com/investors/update-february2019/ FY19 H1 Results Presentation 21 February 2019 9
Slide 10: H1 Results Presentation February 2019
FY19 H1 Results Presentation 21 February 2019 10
Slide 11: Digital Customer Journey
Digital Customer Journey FY19 H1 Results Presentation 21 February 2019 11
Slide 12: H1 Financial Results
FY19 H1 Financial Results FY19 H1 Results Presentation 21 February 2019
Slide 13: APAC – Portfolio expansion, increased retention focus
APAC – Portfolio expansion, increased retention focus APAC Financials Key Points Revenue from Maths and Literacy product is up $M FY19 H1 FY18 H1 %+/- %+/- $0.3m (2%) vs prior year like-for-like**. Underlying revenue - Maths & Literacy 13.6 13.3 0.3 2% Adjustment for prior year renewal re-phasing*
Slide 14: EMEA – FY20 should reflect improving market conditions
EMEA – FY20 should reflect improving market conditions EMEA Financials Key Points Revenue growth was down A$0.6m (9%) due to: £M FY19 H1 FY18 H1 $+/- %+/- A$0.3m drop due to continued political and economic Revenue - Maths and Literacy 3.3 3.8 (0.5) (13%) challenges around Brexit. Education spen
Slide 15: Americas – Restructured and poised for growth
Americas – Restructured and poised for growth Americas Financials Key Points Revenue drop of US$0.3m (but flat in A$ after FX US$M FY19 H1 FY18 H1 $+/- %+/- gains); improvements from the new sales model will Revenue - Maths and Literacy 2.7 3.0 (0.3) (10%) be realised in H2 FY19. Revenue - Other 0
Slide 16: H1 – Income Statement
FY19 H1 – Income Statement Key Points $M FY19 H1 FY18 H1 $+/- %+/- Expenses declined 7%. Total Revenue 24.0 28.3 (4.3) (15%) Headcount: 253 FTEs (258 at 31 December 2017). Employee expenses (12.5) (12.6) 0.1 (1%) Employee costs down by $0.1m including $0.2m of Marketing expenses (0.7) (1.1) 0.4
Slide 17: H1 – Cash Flow
FY19 H1 – Cash Flow Key Points $M FY19 H1 FY18 H1 $+/- Net cash flows after investments decreased to EBITDA 6.9 10.3 (3.4) $(12.9)m due to increased supplier and tax Non-cash expense: payments. Renewal re-phasing this year did not affect operating cashflows. FX and other non-cash expenses (0.4) (0
Slide 18: H1 – Balance Sheet
FY19 H1 – Balance Sheet Key Points $M 31 Dec 18 30 Jun 18 31 Dec 17 Cash of $10.1M with net proceeds from sale of Cash and cash equivalents 10.1 23.0 3.5 Learnosity. Trade and other receivables 13.0 6.6 28.0 Income tax receivable 0.3 0.2 - No dividend declared with excess cash held in reserves T
Slide 19: Investment in Products & Technology Assets
Investment in Products & Technology Assets Key Points Investment split by asset type and accounting treatment Continued investment in Products and Digital Systems to develop flexible SaaS-style software and support $M CAPEX % OPEX % Total scalable operating models. Mathematics 3.2 68% 1.5 32% 4.7
Slide 20: Outlook
FY19 Outlook FY19 H1 Results Presentation 21 February 2019
Slide 21: Outlook
FY19 Outlook Expect another modest year of revenue growth, but with sales growth momentum expected in the latter part of FY19 and into 2020 and beyond. Stronger Balance Sheet with $25m to $28m of cash expected at year-end that will allow us to continue to support and grow the business. Regiona
Slide 22: Q&A
Q&A FY19 H1 Results Presentation 21 February 2019
Slide 23: Appendices
Appendices FY19 H1 Results Presentation 21 February 2019
Slide 24: Revenue by Geography and Product Family
Revenue by Geography and Product Family Revenue by Geography Revenue split by Geography Jun-18 Dec-18 A$ Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-18 Americas Americas APAC 24.6 30.1 30.8 31.8 34.4 13.9 14% 17% EMEA 8.6 10.3 12.6 13.0 13.0 6.0 Americas 3.3 4.4 5.9 7.7 8.0 4.1 Total 36.5 44.8 49.3 52.5
Slide 25: Licences by Geography and Product Family
Licences by Geography and Product Family Licences by Geography Licences split by Geography 000s Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-18 Jun-18 Dec-18 Americas Americas APAC 2,486 2,627 2,664 2,704 2,678 2,726 17% 17% EMEA 1,295 1,498 1,660 1,737 1,534 1,467 Americas 662 903 1,026 1,001 849 880 Tot
Slide 26: Statutory EBITDA
Statutory EBITDA Reconciliation of Segment EBITDA to Statutory EBITDA per note 3 of the H1 FY2019 financial statements* $M FY19 H1 FY18 H1 $+/- %+/- APAC Underlying EBITDA 10.5 9.9 0.6 6% Adjustment for H1-18 renewal re-phasing 4.0 Less : Corporate Costs and Development (7.9) (8.2) 0.3 (4%) Add : In
Slide 27: 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, 21 February 2019. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of informati