IPH LIMITED — Investor Presentation 2021

Sep 13, 2021

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14 September 2021

Presentation by Dr Andrew Blattman to the Bell Potter Emerging Leaders Conference 2021

Attached is a presentation to be given today by IPH’s Managing Director & CEO, Dr Andrew Blattman, to the Bell Potter Emerging Leaders Conference.

For more information, please contact:

Martin Cole Capital Markets Communications T . +61 403 332 977 martin.cole@capitalmarketscommunications.com.au

Authorised for release to ASX by:

Dr Andrew Blattman, Managing Director & CEO

About IPH Limited

IPH is the Asia Pacific’s leading intellectual property services group, comprising a network of member firms working in eight IP jurisdictions and servicing more than 25 countries. The group includes leading IP firms AJ Park, Griffith Hack, Pizzeys, Shelston IP and Spruson & Ferguson, online IP services provider Applied Marks, and the autonomous timekeeping business, WiseTime. IPH employs more than 900 people working in Australia, China, Hong Kong SAR, Indonesia, Malaysia, New Zealand, Singapore and Thailand.

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IPH Limited | Level 24, Tower 2, Darling Park, 201 Sussex St, Sydney NSW 2000 | ABN 49 169 015 838 | iphltd.com.au

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Emerging Leaders Conference

Disclaimer

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 otherwise dispose of, or issue, or any solicitation of any offer to sell or otherwise dispose of, purchase or subscribe for, any securities, nor does it constitute investment advice, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any or contract or investment decision.

Certain statements in this presentation are forward looking statements. You can identify these statements by the fact that they use words such as “anticipate”, “estimate”, “expect”, “project”, “intend”, “plan”, “believe”, “target”, “may”, “assume” and words of similar import.

These forward looking statements speak only as at the date of this presentation. These statements are based on current expectations and beliefs and, by their nature, are subject to a number of known and unknown risks and uncertainties that could cause the actual results, performances and achievements to differ materially from any expected future results, performance or achievements expressed or implied by such forward looking statements.

No representation, warranty or assurance (express or implied) is given or made by IPH that the forward looking statements contained in this presentation are accurate, complete, reliable or adequate or that they will be achieved or prove to be correct. Except for any statutory liability which cannot be excluded, IPH and its respective officers, employees and advisers expressly disclaim any responsibility for the accuracy or completeness of the forward looking statements and exclude all liability whatsoever (including negligence) for any direct or indirect loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom.

Subject to any continuing obligation under applicable law or relevant listing rules of the ASX, IPH disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements in these materials to reflect any change in expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of IPH since the date of the presentation.

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About the IPH Group

Asia-Pacific’s leading IP professional services group

• 1) Approximate employee numbers across the Group.

2) IPH Management estimate based on patent filing data: Australia (IP Australia) – FY21 as at 13/07/21; Singapore (IPOS) – CY21 YTD Jun (preliminary) as at 5/08/21; New Zealand (IPONZ) – FY21 as at 14/07/21. 3) IPH Management estimate based on trade mark filing data: Australia (IP Australia) – FY21 as at 15/07/21 based on market share of top 50 agents; New Zealand (IPONZ) – FY21 as at 10/08/21.

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Realising our vision

To be the leading IP services group in secondary IP markets and adjacent areas of IP

• The IPH Group operates in eight secondary IP jurisdictions: Australia, New Zealand, Singapore, Thailand, Malaysia, Indonesia, China and Hong Kong and services more than 25 countries across the AsiaPacific region

• IPH has a strong track record of successfully completing and integrating acquisitions

• Our acquisition strategy is supporting growth in client cross referrals

• Growth step-outs in secondary IP markets are a key part of our growth strategy

• The scale of the IPH Group provides the opportunity for IPH to look further at IP adjacencies

Key:

IPH offices Primary IP markets

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Strong results across key metrics

Performance demonstrates the success of acquisitions and the power of the IPH network

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Like for like EBITDA [[2]]
10%
Legacy Xenith EBITDA
39%
margin improvement [[4]]
China patent growth
12.4%
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Underlying EBITDA[1 ] Like for like EBITDA[[2]] 1% $124.3m Referrals from acquired Legacy Xenith EBITDA companies into IPH Asia business[3] 25% margin improvement[[4]]

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3.5%

Full year dividend (29.5 cents per share)[5]

• 1) Underlying EBITDA excludes costs incurred in pursuit of acquisitions, accounting charges for share-based payments, impairment and IT SaaS implementation costs

• 2) Like for like Underlying EBITDA adjusted for the impact of acquisitions, movements in realised and unrealised foreign exchange and performance had the prior year's exchange rates applied

• 3) New cases referred by acquired IPH businesses to IPH Asian hubs (Singapore, China/Hong Kong). Data based on internal filing statistics

• 4) Griffith Hack and Shelston combined

• 5) Represents 90% of cash NPAT

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Patent market – Australia

Australian filings improved in second half with #1 market share position maintained

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45,000.00
42,034
Australian patent
40,000.00
filings – market [1] 36,415 36,310 36,628 36,408
• Australian patent market 35,000.00
increased by 15.5% in FY21
compared with the previous
30,000.00
corresponding period.
• Removing all innovation patent 25,000.00
filings, the market increased
by 2.6%.
20,000.00
• Innovation patents from China
and India were significant 15,000.00
contributors to market growth,
up 453% combined.
10,000.00
• Surge in Australian innovation
patent filings likely related to
5,000.00
impending phase-out in
August 2021.
0.00
FY17 FY18 FY19 FY20 FY21
1H Innovation 1H Standard + Provisional
2H Innovation 2H Standard + Provisional
1) IPH Management estimate based on IP Australia filing data as at
13/07/21 (FY21), 14/07/20 (FY20), 1/08/19 (FY19) and 3/08/2018
(FY17-FY18). Includes all types of patent applications. Full Year
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IPH Group market share (excluding innovation patents)[2]

• IPH Group's filings (excl innovation patents), declined by 4.8% compared with FY20.[3]

• However, excluding the impact of the “reset” of the merged Griffith Hack (GH) into a higher margin and more profitable business, IPH’s filings increased by 0.7%.

• GH’s decline can be attributed to: anticipated client loss as result of the merger due to conflict (including those which have moved within the group) and smaller filers by volume; and the filing patterns of existing clients.

• This outcome was an expected dissynergy of the merger – GH business well positioned to grow the business at enhanced margins.

• 2) IPH Management estimate of Group market share based IP Australia filing data excluding innovation patents, which will cease in August 2021. Data as at 13/07/21

• (FY21), 14/07/20 (FY20), 1/08/19 (FY19), 3/08/18 (FY18) and 6/07/18 (FY17) and may not reflect any subsequent changes of agent. Filings and market share from acquired companies are included from 1 Jul of the acquisition year.

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45.0%
40.0%
38.1%
36.2%
35.0%
30.0%
24.5%
25.0%
23.1%
22.6%
20.0%
15.0%
10.0%
5.0%
0.0%
FY17 FY18 FY19 FY20 FY21
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Patent market – Singapore

Strengthened #1 position – increasing market share

Singapore patent filings – market[1]

• Latest data for CY20 shows Singapore patent market decreased by 6.5% compared with CY19.

• CY20 compares against a very strong Q4 of CY19 due to closure of the 'foreign route' from 1 January 2020, resulting in an influx of applications in December 2019.

• Latest data for 1H CY21 indicates a market increase of 11.2% on 1H CY20. This is an improvement from the 7.7% growth stated in the IPH FY21 results presentation (based on preliminary data).[2]

• 1) IPH Management estimate based on IPOS filing data as at 1/09/21 (CY21 YTD Jun), 2/05/21 (CY20), 3/08/20 (CY19), 1/08/19 (CY18) and 2/08/18

• (CY17). Note, data for recent months subject to change due to data release timings, and as such CY21 YTD is a preliminary figure.

• 2) CY21 YTD data updated as at 1/09/21, compared with previous data extract at 5/08/21 for IPH FY21 results presentation.

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16,000
14,028
14,000
13,117
12,000 11,611
10,870
10,000
8,000
7,040
6,000
4,000
2,000
-
CY17 CY18 CY19 CY20 CY21
Calendar Year 1H CY
1H CY (preliminary data) 2H CY
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IPH Group market share[2]

• Based on latest data for 1H CY21, IPH filings increased by 22.6% vs PCP, reflecting organic growth.

• This is an improvement from the 16.8% growth stated in the IPH FY21 results presentation (based on preliminary data).

• IPH market share increases from 23.0% in CY20 (23.9% in 1H CY20) to 26.3% in 1H CY21.

• 3) IPH Management estimate based on IPOS filing data as at

• 5/08/21 (CY21 YTD Jun), 2/05/21 (CY20), 3/08/20 (CY19),

• 1/08/19 (CY18) and 2/08/18 (CY17). Any subsequent changes of

• agent may not be reflected. CY21 YTD based on preliminary IPOS data. IPH market share includes the Singapore offices of Spruson & Ferguson and Pizzeys.

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30.0%
26.3%
24.5%
25.0%
23.0% 23.3% 23.0%
20.0%
15.0%
10.0%
5.0%
0.0%
CY17 CY18 CY19 CY20 1H CY21
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IPH patent filings – Asia1

10.3% CAGR growth for China[2]

• FY21 compares against a strong FY20 due to significant filings from one client across multiple jurisdictions.

• Removing the effect of this one client, we have seen total growth across these key jurisdictions of 8.4% in FY21 when compared with FY20.

• IPH Group continues to be attractive to large clients. In FY21 we have seen multiple large clients increasing filings across a number of jurisdictions.

• FY21 Continued increase in new case referrals (up 25% on FY20) to IPH Asian hubs (Singapore, China/Hong Kong) from

• acquired IPH businesses[3]

• 1) Total patent cases lodged in key jurisdictions in Asia (excl. Singapore) by IPH entities (or external agents in the case of the Philippines and Vietnam). Data based on internal filing statistics.

• . 2) CAGR based on filings in China FY19-FY21.

• 3) New case referrals based on internal filing statistics.

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1000
900
(8.7%) (10.6%)
800
700 12.4%
600
(4.9%)
(7.2%)
500
(16.9%)
400 10.0%
300
200
100
0
FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21
China Hong Kong Indonesia Malaysia Thailand Philippines Vietnam
Total Excl. 1 significant client
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Trade mark market – Australia

Maintained #1 position in a changing market – IPH filings up

Australian trade mark filings – market (excl. Int’l Registrations)[1]

• In FY21, Australian trade mark filings increased by 17.9%.

• Excluding self-filers, Australian trade mark filings increased by 24.2% in FY21.

• Softened self-filer growth for full year of 6.4% due to Q4 FY21 decline of 24.5% vs strong PCP (Q4 FY20 up 26.0% on Q4 FY19).[2]

• Increase reflecting recovering economy and business creation and expansion.

• IPH well positioned to leverage this trend with acquisition of Applied Marks, 4[th] largest of top 50 TM filers on 1 July 2021.

• 1) IPH Management estimate based on IP Australia filing data excluding International Registrations, as at 15/07/21 (FY21),

• 9/07/20 (FY20) and 1/08/19 (FY17-FY19).

• 2) Applications determined as self-filed where no agent is listed at IP Australia, or agent is the same as trade mark owner.

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80,000
69,242
70,000
63,537
58,156 58,319 58,734
60,000
50,000
40,000
30,000
20,000
10,000
-
FY17 FY18 FY19 FY20 FY21
Full Years 1H Agent Filed 1H Self-Filed
2H Agent Filed 2H Self-Filed
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IPH Group market share[3]

• IPH trade mark filings in Australia (excl. Applied Marks) increased by 7.7% in FY21.[4]

• The IPH Group continues to be the leading Australian trade mark group by market share of the top 50 agents.

• Australian residents make up majority of total agent-filed trade marks in market (around 68%), whereas IPH’s portfolio preApplied Marks is more internationallyweighted, with Australians making up only around 30% of total client filings.

• IPH experienced strong growth from US applicants, increasing 17.4%.

• 3) IPH Management estimate of Group market share calculated on total filings from top 50 agents. Based on IP Australia data as at 15/07/21 (FY21), 9/07/20 (FY20), 11/07/19 (FY18-FY19) and 24/10/18 (FY17) and may not reflect any subsequent changes of agent. Filings from acquired companies are included from 1 Jul of the acquisition year.

• 4) IPH Management estimate of Group filing growth includes recently acquired entities (Xenith and Baldwins) on a pro-forma basis from 1/07/19.

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30.0%
25.0%
4.8%
21.3%
20.0%
15.0% 14.4% 14.2%
13.1%
10.0% 20.0%
5.0%
0.0%
FY17 FY18 FY19 FY20 FY21
IPH (excl. Applied Marks) Applied Marks
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Long-term Patent Demand Trends

What this means for IPH

• This growth underpins the recurring revenue stream for IPH

• Growth in primary IP markets feeds into secondary IP markets, where IPH is strongly established in Asia, and ideally positioned for further growth

• IPH is well placed to capitalise on growth of filings both into China from non-residents as well as China outbound filings into jurisdictions where IPH has a presence

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Long-term Patent Demand Trends

China-US rivalry

• China-US competition focussed on technology

• US taking comprehensive containment measures for every component of the innovation ecosystem

• US Innovation and Competition Act set to become a major reset for science and technology – designed to strengthen American competitiveness with investments in science and technology, global infrastructure development, digital connectivity and cybersecurity partnerships

What this means for IPH

• The Biden administration's focus on technology is a positive for the IP industry, particularly in the US

• US customers are the largest market for IPH in terms of global patent filings[1]

1) Total patent cases filed or instructed to be filed by IPH entities into any jurisdiction in the world. Data based on internal filing statistics including acquired companies on a pro-forma basis.

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Long-term Patent Demand Trends

Increasing dependence on technology economically, socially and militarily

• Biggest tech companies in the world are US or Chinese

• Increasing focus on protection of data, privacy

• Competition not cooperation the focus for countries considering future regulatory requirements

What does this means for IPH?

• Investment in technology, leads to investment in IP protection in primary IP markets, which flows through to secondary IP markets

• Anticipated increased need for patent protection driven by countries seeking to protect data and domestic technology – particularly in the US and China

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Strategic direction

Focus on IPH’s growth strategy

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Organic growth
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Robust client management programs focused on delivering the highest levels of client service

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Enablers
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Consolidate acquisitions
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Growth step-outs
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Expand service Focus on our Targeted expansion offering to existing people – attract, across Asia-Pacific Australian and New motivate and retain Zealand corporates

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Consolidate Acquisitions

Griffith Hack and Watermark & AJ Park and Baldwins

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Consolidate acquisitions

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• Delivered previously announced $2 million in synergies from the combined entity in FY21

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Synergies

• Synergies delivered through rental and right-sizing of business

• Delivered previously announced EBITDA contribution of A$2 million in 8.5 month period

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Consolidation

Spruson & Ferguson and Shelston IP to combine

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Consolidate acquisitions

• Spruson & Ferguson (Australia) and Shelstons IP to integrate under Spruson & Ferguson brand

• Spruson & Ferguson to extend position as a leading brand in Australia

• New firm to be led by David Kennedy

• Integration to result in enhanced operational synergies and further benefits for clients – including greater access for Shelston IP clients into S&F’s established Asian network

• Shelston IP brand to be retired from 1 November 2021

• Full integration by December 2021

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Thank you

iphltd.com.au

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Patent market trends

No discernible impact to long-term trends

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Australian Patent Filings [1] CAGR (FY06 to FY21) = 1.6% CAGR (CY05 to CY20) = 1.5%
CAGR Post-GFC (FY10 to FY21) = 2.6% US PCT Applications [2] CAGR Post-GFC (CY10 to CY20) = 2.7%
70,000.00
45,000 60,000.00
50,000.00
40,000 40,000.00
30,000.00
35,000 20,000.00
10,000.00
0.00
30,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Calendar Year
25,000
2) PCT applications originating from US filed at any receiving office by filing date from WIPO IP Statistics Data Center as at 11/08/21.
20,000
15,000 China PCT Applications [3] CAGR Post-GFC (CY10 to CY20) = CAGR (CY05 to CY20) = 24.7%18.8%
80,000.00
10,000
70,000.00
60,000.00
50,000.00
5,000 40,000.00
30,000.00
20,000.00
0 10,000.00
0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Calendar Year
1) IPH Management estimate based on filing information recorded on IP Australia as at 13/07/21 (FY21), 14/07/20 (FY20), 7/07/19 (FY19),
3/08/18 (FY15-FY18) and 17/04/18 (FY05-FY14). Includes all types of patent applications (standard, provisional and innovation). 3) PCT applications originating from China filed at any receiving office by filing date from WIPO IP Statistics Data Center as at 11/08/21.
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21
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Patent lifecycle

Long-life cycle supports consistent revenues and earnings

Each year more than half[+] of the total patent applications filed in Australia come through the PCT system in the form of PCT National Phase patent applications.

• The process from filing the Australian application (or entering the Australian national phase) to grant of a patent typically takes 2.5-3.5 years.

• Patents can be renewed by paying official renewal fee annually up until the expiry of the patent 20 years from the filing date of PCT International Application.

• • IPH Management estimate based on PCT National Phase entries from IP Australia data as at 13/07/21 (FY21), 14/07/20 (FY20) and 7/07/19 (FY18-FY19).

• Revenue event – typically flag fall.

• ** Revenue event – typically combination of flag fall and hourly charges

Typical (indicative) foreign patent route in Australia

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Request Examination
Examination Report issued Grant
31 months
18 months
9-12 months 6-12 months 12 months 4 months up to 20 years
12 months
2.5 – 3.5 years
Application PCT PCT PCT National Response to
filed with International International Phase Examiners
Patent Office Application Application application Report
in country of filed published filed in
origin Australia
Acceptance
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