IPH LIMITED — Investor Presentation 2021

Aug 18, 2021

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19 August 2021

FY21 Investor Presentation

Attached is a copy of the IPH Limited FY21 Investor Presentation.

An analyst/shareholder briefing will be held at 10.30am (AEST). The briefing will be webcast and accessible on the IPH website at www.iphltd.com.au.

For more information, please contact:

Martin Cole Capital Markets Communications T . +61 403 332 977

Authorised for release to ASX by:

The Board of Directors

IPH Limited

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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Full year ended 30 June 2021

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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Contents

1	FY21 highlights	5
2	FY21 results	7
3	Market update	14
4	Delivering on our strategy	19
5	Summary and key priorities for FY22	27
6	Appendix	31

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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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Strong results across key metrics

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

Underlying EBITDA[1 ] 1% $124.3m Referrals from acquired companies into IPH Asia business[3] 25%

3.5%

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

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Like for like EBITDA[2] Legacy Xenith EBITDA margin improvement[4]

China patent growth

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10%
39%
12.4%
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• 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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Financial overview

Currency headwinds of 11% impact reported results

Revenue $363.5m

EBITDA

$113.3m

Statutory NPAT $53.6m

Diluted EPS 24.7 cents per share

2%

2%

4%

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Final Dividend[1] 15.5 cents per share (40% franked)

Underlying EBITDA[2] $124.3m

Underlying NPAT[2] $76.2m

Underlying Diluted EPS 35 cents per share

3%

1% 2% 4%

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1) Total FY dividend represents 90% of cash NPAT

• 2) FY21 Underlying EBITDA and NPAT excludes costs incurred in pursuit of acquisitions, accounting charges for share-based payments, impairment, IT SaaS implementation costs and amortisation of acquired intangibles

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Double digit earnings growth on like-for-like basis

Solid Asian performance and acquisition synergies drive strong earnings result

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Australia – New Zealand Asia Group
Revenue Revenue Revenue
3%
3% 2%
EBITDA EBITDA EBITDA
7% 8% 10%
EBITDA margin EBITDA margin EBITDA margin
11% 5% 12%
1) Like for like Revenue and 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
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Underlying Results

Underlying EBITDA $124.3m despite 11% increase in A$/US$ average exchange rate in FY21

	FY21 Statutory Income Statement	Adjustments	Underlying Earnings FY212	FY20 Statutory Income Statement	Adjustments	Underlying Earnings FY20
Total revenue	363.5		363.5	370.1	(0.5)	369.6
Recoverable expenses	(104.5)		(104.5)	(105.6)		(105.6)
Compensation	(115.1)	3.5	(111.6)	(115.5)	2.2	(113.3)
Occupancy	(2.0)		(2.0)	(1.7)		(1.7)
Acquisition, restructuring & IT implementation costs	(7.0)	7.0		(5.8)	5.8
Impairment	(0.5)	0.5		(5.3)	5.3
Other	(21.1)		(21.1)	(23.0)		(23.0)
Total expenses	(250.2)		(239.2)	(256.9)		(243.6)
EBITDA	113.3		124.3	113.2		126.0
EBITDA %	31.2%		34.2%	30.6%		34.1%
Depreciation & Amortisation	(37.4)	21.6	(15.8)	(34.5)	19.6	(14.9)
EBIT	75.9		108.6	78.7		111.1
Finance Costs	(6.0)		(6.0)	(7.0)		(7.0)
NPBT	69.9		102.6	71.7		104.1
Tax (expense)/benefit	(16.3)	(10.0)	(26.3)	(16.9)	(9.5)	(26.4)
NPAT	53.6	23.9	76.2	54.8	22.9	77.7
Diluted EPS (cents)1	24.7c		35.0c	25.8c		36.5c

• 1) Diluted EPS includes performance rights that are yet to vest.

• ~~2) FY21 Underlying EBITDA and NPAT excludes costs incurred of pursuit of acquisitions, accounting charges for share-based payments, impairment, IT SaaS implementation costs and amortisation of intangibles.~~

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Cash flow statement

IPH continues to generate excellent cashflow with cash conversion of 100%

• Cash conversion of 100% reflects strong collections despite economic environment

• Cash flow supports high dividend payout (90% of cash NPAT for the year)

• Strong balance sheet with leverage ratio of 0.4 times

Key Metrics at 30 June 2021
Cash on hand	$71m
Drawn debt	$116m
Net debt	$45m
Leverage ratio (Net debt / 12 month EBITDA)	0.4 times
Debt maturity	July 2024
Cash conversion for year ended 30 June 2021	100%

	FY21 Cash Flow Statement	FY20 Cash Flow Statement
$'m
Statutory EBITDA	113.3	113.2
Non-cash movements
Change in working capital	5.7	11.8
Operating capital expenditure	(6.2)	(5.2)
Cash flow before acquisitions, financing activities and tax	112.8	119.9
Cash conversion ratio	100%	106%
Income taxes paid	(20.4)	(30.4)
Net interest paid	(6.0)	(7.1)
Free cash flow	86.4	84.6
Dividends paid (net DRP)	(49.9)	(47.9)
Undistributed free cash flow	36.5	36.7
Acquisitions, investments & intangibles	(4.7)	(40.3)
Lease payments	(11.1)	(9.6)
Net borrowing proceeds/(repayments)	(32.4)	64.1
Net cash flow	(11.7)	48.6

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Balance sheet

Maintaining strong financial position

• Cash movement includes debt repayment ($32.7m) and dividend ($49.9m)

• Baldwins IP Acquisition:

• Issue of shares totaling $2.5m

• Increased goodwill ($2m), customer relationships ($6.8m), and deferred tax liabilities ($1.9m)

• Completed refinancing of debt facilities in June with a maturity of July 2024

• Reserves includes a $5.3m loss due to foreign currency translation

$'m	Balance Sheet as at 30 Jun 2021	Balance Sheet as at 30 Jun 2020
Cash and cash equivalents Trade and other receivables	71.2 83.4	82.9 89.1
Other current assets	10.3	9.1
Total current assets	164.9	181.1
Property, plant and equipment	10.2	13.3
Right-of-use assets Acquisition intangibles and goodwill	30.6 468.1	38.8 483.2
Deferred tax asset	–	0.1
Other non-current assets	0.9	–
Total assets	674.7	716.5
Trade and other payables	24.0	24.7
Tax provisions	2.6	3.3
Lease Liabilities	43.2	53.7
Deferred tax liability	36.3	37.8
Borrowings	116.2	151.2
Other liabilities	25.6	23.1
Total liabilities	247.9	293.8
Net assets	426.8	422.7
Equity
Issued capital	417.1	402.2
Reserves	(1.5)	0.5
Retained profits	11.2	20.0
Total equity	426.8	422.7

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Foreign currency sensitivity

Earnings currency sensitivity

• Based on the USD profile in FY21 in the IPH Group, a 1c movement in the AUD/USD exchange rate equates to approximately $1.9m of revenue on services charges on an annualised basis.

• This sensitivity fluctuates on the basis of acquisitions, their timing and their mix of currencies.

• The Group currently does not undertake foreign currency hedging as it is explicit about the impact of the US dollar and due to costs associated with hedging. The Group continues to monitor this position.

Service Charges

Balance sheet sensitivity

Operating expenses

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• The Group is also exposed to FX on Other
the level of its USD denominated NZD 7%
cash and receivables in the balance SGD 7%
sheet, balances of which fluctuate. 18% SGD
4%
• 55% of the Group’s invoicing is HKD
denominated in USD. [1]
6%
• Average USD cash [2] held US$22m. USD
AUD
55%
• Average USD net assets NZD 52% AUD
(including cash) [3] US$39m. 24% 21%
FX Rates (average) USD SGD
HKD
FY21 0.7472 1.0055 6%
FY20 0.6712 0.9283
Variance 11.3% 8.3%
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• 1) Excludes USD billing in SF Hong Kong where HKD is pegged to USD. IPH exposure is to HKD.

• 2) Average of closing monthly USD cash balance.

• 3) Average of opening and closing USD denominated assets.

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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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45.0%
IPH Group market share
(excluding innovation patents) [2] 40.0%
38.1%
• IPH Group's filings (excl innovation 36.2%
patents), declined by 4.8% compared 35.0%
with FY20. [3]
• However, excluding the impact of the 30.0%
“reset” of the merged Griffith Hack (GH)
into a higher margin and more profitable
business, IPH’s filings increased by 0.7%. 25.0% 24.5%
23.1%
22.6%
• GH’s decline can be attributed to:
anticipated client loss as result of the
20.0%
merger due to conflict (including those
which have moved within the group) and
smaller filers by volume; and the filing
15.0%
patterns of existing clients.
• This outcome was an expected dis-
synergy of the merger – GH business well 10.0%
positioned to grow the business at
enhanced margins.
5.0%
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 0.0%
companies are included from 1 Jul of the acquisition year. FY17 FY18 FY19 FY20 FY21
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Patent market – Singapore

Strengthened #1 position – increasing market share

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Singapore patent 16,000
14,028
filings – market [1] 14,000
13,117
• Latest CY20 data shows Singapore
patent market decreased by 6.5% 12,000 11,611
compared with CY19. 10,870
• CY20 compares against a very 10,000
strong Q4 of CY19 due to closure of
the 'foreign route' from 1 January
2020, resulting in an influx of 8,000
applications in December 2019. 6,817
• Preliminary data for 1H CY21
6,000
indicates a market increase of 7.7%
compared with 1H CY20, and an
increase of 12.8% on 1H CY19.
4,000
2,000
-
CY17 CY18 CY19 CY20 CY21
1) IPH Management estimate based on IPOS filing data as at
5/08/21 (CY21 YTD Jun), 2/05/21 (CY20), 3/08/20 (CY19), Calendar Year 1H CY
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. 1H CY (preliminary data) 2H CY
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30.0%
IPH Group
market share [2] 25.9%
25.0% 24.5%
• Based on preliminary data for 1H 23.0% 23.3% 23.0%
CY21, IPH filings increased by
16.8% compared with the previous
corresponding period, reflecting
organic growth. 20.0%
• IPH market share increase from
23.0% in CY20 (23.9% in 1H CY20)
to 25.9% in 1H CY21.
15.0%
10.0%
5.0%
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 0.0%
IPOS data. IPH market share includes the Singapore offices of
Spruson & Ferguson and Pizzeys. CY17 CY18 CY19 CY20 CY21 HQ 1
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1

IPH patent filings – Asia

10.3% CAGR growth for China[2]

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1000
• FY21 compares against a strong FY20
due to significant filings from one client
across multiple jurisdictions. 900
(8.7%) (10.6%)
• Removing the effect of this one client, 800
we have seen total growth across
these key jurisdictions of 8.4% in FY21
700 12.4%
when compared with FY20.
• IPH Group continues to be attractive to 600
large clients. In FY21 we have seen (4.9%)
multiple large clients increasing filings 500 (7.2%)
across a number of jurisdictions.
(16.9%)
400 10.0%
- FY21 Continued increase in new case 300
referrals (up 25% on FY20) to
IPH Asian hubs (Singapore,
200
China/Hong Kong) from
acquired IPH businesses [3]
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
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. 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
60,000 58,156 58,319 58,734
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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30.0%
IPH Group
market share [[3]]
25.0%
IPH trade mark filings in Australia (excl.
Applied Marks) increased by 7.7% in FY21. [[4]] 21.3% 4.8%
The IPH Group continues to be the leading 20.0%
Australian trade mark group by market
share of the top 50 agents.
Australian residents make up majority of 15.0% 14.4% 14.2%
total agent-filed trade marks in market 13.1%
(around 68%), whereas IPH’s portfolio pre-
Applied Marks is more internationally-
weighted, with Australians making up only 10.0% 20.0%
around 30% of total client filings.
IPH experienced strong growth from US
applicants, increasing 17.4%. 5.0%
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), 0.0%
9/07/20 (FY20), 11/07/19 (FY18-FY19) and 24/10/18 (FY17) and may not FY17 FY18 FY19 FY20 FY21
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. IPH (excl. Applied Marks) Applied Marks
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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%.

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Strategic direction

Focus on IPH’s growth strategy

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Organic growth Consolidate acquisitions Growth step-outs
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Enablers
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Robust client management programs focused on delivering the highest levels of client service

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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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Organic Growth

Leveraging our leading network across the region with client referrals up 25%

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• Strengthened number 1 patent filer position in Singapore and grew market share to 25.9%. CY21 filings up 16.8%.

• IPH patent filings in Hong Kong SAR up 10% and in China up 12.4% in FY21.

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

Organic growth

• IPH patent filings in Asia in FY21 were up 8.4% across key jurisdictions when compared with FY20 (excluding the impact of one client with significant filings in FY20 across multiple jurisdictions).

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Consolidating Acquisitions

Significantly improved financial performance in merged Griffith Hack

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Consolidate acquisitions

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Synergies delivered

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

Business performance

• New management team appointed including MD, Head of Growth and Head of Operations

• • Number of new hires late FY21 at junior, mid and senior levels to support growth FY22 and beyond

• Some one-off impacts due to integration:

• anticipated client loss as result of the integration due to conflict (including those which have moved within the group)

Transformation of legacy Xenith IP group

Based on figures for XIP last financial year (FY19) adjusted for AASB16 lease accounting, margin has improved by 39% since acquisition.

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||||
|---|---|---|
|FY21|FY19|
|Revenue|106.6|125.5|
|EBITDA|29.4|24.9|
|Margin|28%|20%|

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• loss of smaller filers by volume

• Due to large Victorian presence, greater exposure to COVID-19 lockdowns and disruption

• Despite these performance impacts, significant synergies captured

• Significant referrer of work into IPH Asia businesses in FY21

• New brand launched

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Growth step-outs

Acquisition and integration of Baldwins IP with AJ Park

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Growth step-outs

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• AJ Park acquires Baldwins IP in October 2020

• Full physical and systems integration of Baldwins IP achieved in December 2020

Synergies delivered

• Synergies achieved through rental and right-sizing of business

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

• Engagement score of 68% four months post integration

Business performance

• Retained leading Patent and Trade Mark position in the New Zealand market

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• Named a top legal employer in New Zealand in NZ Lawyer's Employer of Choice report

• Significant referrer of work into IPH Asia businesses in FY21

• New brand launched

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Consolidate
acquisitions
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Growth step-outs and enablers

Expanding digital and trade mark capability with acquisition of Applied Marks

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Growth
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step-outs

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• Founded in 2008

• Leading Australian automated trade mark application platform

• Focused on retail market – individuals and SMEs filing less than 10 trade marks a year

• Number 4 trade mark filer (4.8% market share of top 50 agents)[1]

Reaching new markets

• Retail focus gives group access to an expanded market

• Evolves traditional trade mark services in line with the changing market

• Is expected to extend into other IPH jurisdictions

Expanded digital capability

• Resources and technology will contribute to new Digital Services Function within the IPH Group

• Acquisition accelerates IPH’s digital capability

• Use platform capability to enable digitalisation of IP services

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1) FY21 Australian trade mark market share calculated on total filings of top 50 agents excl. International Registrations, based on IP Australia filing data.
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Enablers – our people

Strengthening the talent pipeline

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Building group-wide people capability

• Group-wide People function introduced Q2 FY21 and now operational across Asia-Pacific.

• First year focussed on building the centralised platform and embedding new centralised tools and processes;

• HR Information System launched with new enterprise-wide performance tool and approach

• New enterprise learning curriculum across HR, induction, risk and compliance

• Roll-out of group-wide policies – hybrid working and enhanced paid parental leave

Building our leadership capability and talent opportunities

• Record year for promotions with 35 – 11 people to Principal

• 180 senior specialists (including Principals, Practice Group Leaders, Senior Associates, Special Counsel)

• 95+ early career attorneys across the group (32 trainee attorneys, 27 attorneys and 37 associates)

• New Chief Commercial Officer commenced

• New Managing Directors appointed for Spruson & Ferguson, Griffith Hack and AJ Park and a new General Manager for Pizzeys

• New people leader program targeting 70+ leaders annually

• Introduction of CultureAmp and employee feedback analytics

Senior 180 practitioners

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New Principal Early Employees
appointments career on a hybrid
50+ 95+ 25%
Since 2014 attorneys work model
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Ongoing commitment to sustainability

IPH recognises that sustainable business is good business with solid progress achieved in FY21

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Our People

• 35 promotions across member firms (including 11 Principal promotions)

• 50+ Principal promotions since 2014

• 95+ early stage attorneys across the group

Environment

• IPH supports UN Sustainable development Goals

• 30% reduction in scope 2 CO2e emissions in Australia/NZ

Diversity

• Women represent 33% of Senior Executive and Principal roles (ahead of 30% target)

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IP industry support and recognition

• 75+ professional staff received IP industry awards in FY21

• IPH first IP Group in Australia to integrate with IP Australia’s new Application Programming Interface solution

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Governance & Risk management

• Inaugural Modern Slavery Statement

• New supplier code of conduct as part of ethical and socially responsible procurement

• Continued evolution of reporting with publication of 3rd annual Sustainability Report

Community Support

• Pro bono support

• Paid volunteering

• Financial support of a range of charitable organisations and initiatives across the region

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Summary and Priorities for 2022

IPH has built a strong platform for future growth

• Demonstrated ability to acquire and integrate businesses to deliver margin accretion and earnings growth

• Focus on organic growth, leverage IPH Group network for increased client referrals, target new business opportunities and drive for operating efficiencies from scale

• Harness acquisition of Applied Marks to further develop tech enabled IP services

• Solid financial position and consistent cash generation support continued investment in growth initiatives to strengthen core business

• Continued assessment of potential international acquisition opportunities in core secondary IP markets and IP adjacencies

• Disciplined investment in WiseTime, an autonomous timekeeping software application

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Q&A

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Thank you

iphltd.com.au

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Like for Like Revenue and EBITDA

10% increase in like for like EBITDA from strong organic growth in Asia and synergies in Australia/NZ

	Underlying Revenue Jun 21	New Businesses2	Accounting FX Movements3	Currency Adjustment4	Adjusted Revenue Jun 21	Underlying Revenue Jun 20	Chg%
Australia & NZ IP	275.7	(22.5)	2.0	12.8	268.0	276.8	(3%)
Asian IP	96.1		1.3	8.3	105.7	102.7	3%
Wisetime	0.4				0.4	0.4
Glasshouse	0.0	(0.5)			(0.5)	2.3
Corporate	5.6	0.2	(2.5)		3.3	2.0
Eliminations	(14.3)		(0.4)		(14.8)	(14.6)
	363.5	(22.9)	0.4	21.1	362.1	369.7	(2%)
	Underlying EBITDA Jun 211	New Businesses	Accounting FX Movements	Currency Adjustment	Adjusted EBITDA Jun 21	Underlying EBITDA Jun 20	Chg%
Australia & NZ IP	93.3	(5.1)	2.0	12.4	102.5	95.6	7%
Asian IP	43.4		1.3	4.9	49.6	46.1	8%
Wisetime	(0.5)				(0.5)	(1.1)
Glasshouse	0.2	0.2			0.4	(0.7)
Corporate	(11.8)	1.1	(2.5)		(13.2)	(13.2)
Eliminations	(0.2)		(0.4)		(0.6)	(0.6)
	124.3	(3.8)	0.4	17.3	138.1	126.0	10%

• 1) FY21 Underlying EBITDA excludes costs incurred of pursuit of acquisitions, accounting charges for share-based payments, impairment and IT SaaS implementation costs.

• 2) New business represents 1.5 months of Xenith IP and 8.5 months of Baldwins. Excludes additional contribution generated under IPH ownership.

• 3) Accounting FX movements represents change in realised and unrealised FX as reported in the financial statements.

• 4) Currency adjustment represents the performance had the prior period exchange rates applied.

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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%
10,000 80,000.00
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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Revenue and EBITDA

Underlying Revenue $’m

Underlying EBITDA $’m

Australia IP Asia IP New Businesses Data & Analytics Serv Corp & Interco

Australia IP Asia IP New Businesses Data & Analytics Serv Corp & Interco

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124.3
369.4 363.5 114.5
2.7 5.1
0.4
22.5 17.8
89.7
256.6 110.4 43.4
96.1 71.7 74.0 2.4
226.0 0.5 43.6
15.2
186.0 1.2 6.1
38.6
38.1 102.7 10.1
0.7 93.5
30.5
33.2
73.6 27.2
58.7 253.2 88.2
69.1
156.4 167.2 48.7 59.4
121.7 42.9
99.9
(6.5) (8.6) (8.9) (13.6) (8.7) (2.5)(6.0) (2.7) (1.4) (2.3) (0.4)
(8.6) (9.3) (12.0)
FY17 FY18 FY19 FY20 FY21 (13.7)
FY17 FY18 FY19 FY20 FY21
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• 1) Underlying EBITDA in FY21 is post-AASB16. FY17-FY20 are pre-AASB16.

• 2) Underlying EBITDA excludes costs incurred in pursuit of acquisitions, revaluations of deferred settlements & earn outs, new business establishment costs, accounting charges for share-based payments and restructuring expenses.

• 3) New Businesses FY21 represents 1.5 months of Xenith IP and 8.5 months of Baldwins.

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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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