IPH LIMITED — Investor Presentation 2021

Feb 17, 2021

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Half year ended 31[st] December 2020

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 HY21 highlights 5 2 HY21 results 7 3 Market overview 14 4 Operations review 21 5 Looking ahead for FY21 24 6 Appendix 30

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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 IP office patent filing information: Australia (IP Australia) – 1H FY21 as at 3/02/21; Singapore (IPOS) – CY20 as at approx. 31/01/21; New Zealand (IPONZ) – 1H FY21 as at 6/01/21.

• 3) IPH Management estimate based on IP office trade mark filing information: Australia (IP Australia) – 1H FY21 as at 28/01/21 based on market share of filings from the top 50 agents; New Zealand (IPONZ) – 1H FY21 as at 6/01/21.

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Solid result in challenging conditions

Underlying Earnings growth and strong cash generation despite COVID-19 and currency headwinds

Underlying EBITDA[1] $61.7 million

Operating Cashflow $52 million

Hong Kong Patent Filings 23.2%

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2%

39%

China Patent Filings 18.1%

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Interim Dividend[2] 14 cents per share (50% franked)

Legacy Xenith[3] EBITDA margin From 20% in FY20 to 27%

Referrals from acquired companies into IPH Asia business[4]

• 1) Underlying EBITDA excludes costs incurred in pursuit of acquisitions, accounting charges for share-based payments, business acquisition costs and restructuring expenses.

• 2) Represents 85% of cash NPAT.

• 3) Griffith Hack and Shelston IP combined.

4%

35%

39%

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• 4) Total new patent and trade mark cases referred by acquired IPH businesses to IPH Asian hubs (Singapore, China/Hong Kong). Data based on internal filing statistics.

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Financial highlights

Solid Underlying result while increase in non-cash amortisation of intangibles from acquisitions impacts Statutory Result

Revenue

$179.8m

EBITDA $56.7m

Statutory NPAT $26.8m

Diluted EPS

12.4 cents per share

1%

1%

4%

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4%

Interim Dividend[1] 14 cents per share (50% franked)

Underlying EBITDA[2] $61.7m

2%

Underlying NPAT[2] $37.6m

3%

Underlying Diluted EPS 17.4 cents per share 1%

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Legacy Xenith[3] improvement

Underlying EBITDA: $15m

EBITDA Margin: 27%

EBITDA Margin improvement: 35%

1) Represents 85% of cash NPAT.

• 2) Underlying EBITDA and NPAT excludes costs incurred in pursuit of acquisitions, accounting charges for sharebased payments, business acquisition costs and restructuring expenses. 3) Griffith Hack and Shelston IP combined.

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Like for Like Revenue and EBITDA

8% increase in like for like EBITDA from strong organic growth in Asia and synergies in Australia/NZ

	Underlying Revenue Dec 20	New Businesses2	Accounting FX Movements3	Currency Adjustment4	Adjusted Revenue Dec 20	Underlying Revenue Dec 19	Chg%
Australia & NZ IP	135.6	(16.4)	3.0	3.1	125.3	133.8	(6%)
Asian IP	47.3		0.8	2.0	50.1	50.6	(1%)
Wisetime	0.2				0.2	0.1
Glasshouse	0.0	(0.5)			(0.5)	1.2
Corporate	3.3	0.2	(1.8)		1.7	1.3
Eliminations	(6.6)		(0.5)		(7.1)	(7.7)
	179.8	(16.7)	1.5	5.1	169.7	179.3	(5%)

	Underlying EBITDA Dec 201	New Businesses	Accounting FX Movements	Currency Adjustment	Adjusted EBITDA Dec 20	Underlying EBITDA Dec 19	Chg%
Australia & NZ IP	45.2	(3.6)	3.0	3.0	47.6	46.6	2%
Asian IP	21.0		0.8	1.1	22.9	21.6	6%
Wisetime	(0.2)				(0.2)	(0.7)
Glasshouse	0.2	0.2			0.4	(0.4)
Corporate	(4.4)	1.1	(1.8)		(5.1)	(6.2)
Eliminations	(0.1)		(0.5)		(0.6)	(0.6)
	61.7	(2.3)	1.5	4.1	65.0	60.4	8%

• 1) HY21 underlying EBITDA excludes costs incurred in pursuit of acquisitions, accounting charges for share-based payments, business acquisition costs and restructuring expenses.

• 2) New business represents 1.5 months of Xenith IP and 2.5 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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Underlying NPAT and EPS

Underlying NPAT growth of 3%

Half Year ended 31 December 2020	HY21 Statutory Income Statement	Adjustments	Underlying Earnings HY212	HY20 Statutory Income Statement	Adjustments	Underlying Earnings HY20
Total revenue	179.8		179.8	179.8	(0.5)	179.3
Recoverable expenses	(52.3)		(52.3)	(51.5)		(51.5)
Compensation	(57.3)	2.7	(54.6)	(55.8)	1.7	(54.1)
Occupancy	(1.0)		(1.0)	(0.9)		(0.9)
New businesses / acquisitions related expenses	(2.4)	2.4		(1.7)	1.7	0.0
Other	(10.1)		(10.1)	(12.5)		(12.5)
Total expenses	(123.1)		(118.0)	(122.4)		(118.9)
EBITDA	56.7		61.7	57.4		60.4
EBITDA %	31.5%		34.3%	31.9%		33.7%
Depreciation & Amortisation	(18.8)	10.8	(8.0)	(16.2)	9.1	(7.1)
EBIT	37.9		53.7	41.2		53.3
Net Finance Costs	(2.8)		(2.8)	(3.5)		(3.5)
NPBT	35.1		50.9	37.7		49.8
Tax (expense)/benefit	(8.3)	(5.0)	(13.3)	(10.6)	(2.9)	(13.5)
NPAT	26.8	10.9	37.6	27.2	9.1	36.3
Diluted EPS (cents)1	12.4c		17.4c	12.9c		17.3c
Growth rate			0.8%

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

• 2) HY21 underlying EBITDA and NPAT excludes costs incurred in pursuit of acquisitions, accounting charges for share-based payments, business acquisition costs and restructuring expenses.

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Cash flow statement

Double-digit growth in operating cash flow with cash conversion over 100%

• Cash conversion of 105% reflects strong collections despite economic environment

• Repayment of $32.7m debt during half

• Cash flow supports high dividend payout (85% of cash NPAT for HY21)

• Strong balance sheet with leverage ratio of 0.6 times

Key Metrics at 31 December 2020
Cash on hand	$60m
Drawn debt	$115m
Net debt	$55m
Leverage ratio (Net debt / 12 month EBITDA)	0.6 times
Debt maturity	Feb 2022
Cash conversion at 31 December 2020	105%

Half Year ended 31 December 2020	HY21 Cash Flow Statement	HY20 Cash Flow Statement
$'m
Statutory EBITDA	56.7	57.4
Non-cash movements
Change in working capital	6.3	(1.0)
Operating capital expenditure	(3.4)	(2.2)
Cash flow before acquisitions, financing activities and tax	59.6	54.2
Cash conversion ratio	105%	94%
Income taxes paid	(9.0)	(16.6)
Net interest paid	(1.9)	(2.4)
Free cash flow	48.8	35.2
Dividends paid (net DRP)	(25.7)	(24.8)
Undistributed free cash flow	23.1	10.4
Acquisitions, investments & intangibles	(4.7)	(40.3)
Lease payments	(6.6)	(5.5)
Net borrowing proceeds/(repayments)	(32.7)	44.1
Net cash flow	(20.9)	8.7

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Balance sheet

Maintaining strong financial position

• Cash movement includes debt repayment ($32.7m) and dividend ($25.7m)

• Baldwins Acquisition:

• Issue of shares totalling $2.5m

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

• Repayment of $32.7m of external borrowings

• Reserves includes a $6.8m loss due to foreign currency translation

	Balance Sheet as at 31 Dec 2020	Balance Sheet as at 30 Jun 2020
$'m
Cash and cash equivalents	59.8	82.9
Trade and other receivables	69.6	89.1
Other current assets	15.3	9.1
Total current assets	144.7	181.1
Property, plant and equipment	12.7	13.3
Right-of-use assets	35.2	38.8
Acquisition intangibles and goodwill	477.5	483.3
Deferred tax asset	16.0	22.6
Total assets	686.1	739.1
Trade and other payables	19.4	24.7
Tax provisions	3.1	3.3
Lease Liabilities	49.0	53.7
Deferred tax liability	55.5	60.4
Borrowings	115.5	151.2
Other liabilities	22.0	23.1
Total liabilities	264.5	316.4
Net assets	421.6	422.7
Equity
Issued capital	411.1	402.2
Reserves	(4.2)	0.5
Retained profits	14.7	20.0
Total equity	421.6	422.7

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Foreign currency sensitivity

Earnings currency sensitivity

• Based on the USD profile in FY20 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.

Operating expenses

Balance sheet sensitivity

Service Charges

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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 6%
sheet, balances of which fluctuate. 19% SGD
4%
• 54% of the Group’s invoicing is
denominated in USD. [1] HKD
6%
• Average USD cash [2] held US$20m. NZD AUD USD
58% 54%
18%
• Average USD net assets (including
AUD
cash) [3] US$39m. 23%
HKD
FX Rates USD SGD 5%
(average)
HY21 0.7232 0.9836
HY20 0.6848 0.9373
Variance 5.6% 4.9%
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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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Global scale of Group’s IP filings

Filings through IPH entities or through external agents in all markets[1]

Global patent and trade mark filings[1]

• IPH (as a group) is a significant global patent and trade mark filer, both in our home markets as well as outgoing filings from ‘local’ clients into other global IP jurisdictions.

• Annualised aggregate IPH group patent filings in all markets are more than the combined total markets of New Zealand and Singapore, and represent more than three quarters of the total Australian market.

• This scale and geographic diversification helps to mitigate the periodic fluctuations in filings in any individual market.

• Increase in outgoing filings from acquired companies (AJ Park and former Xenith businesses) to within the IPH network.

• 1) Total patent / trade mark cases filed or instructed to be filed by IPH entities into any jurisdiction in the world. Includes cases filed by any agent (IPH and non-IPH). Data based on internal filing statistics.

IPH includes filings by the following entities in FY20 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, AJ Park, Griffith Hack, Shelston and Watermark. Filings from acquired companies are included from 1 Jul of the acquisition year.

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40000
30000
20000
10000
0
FY20 FY20
Patents - IPH Trade Marks - IPH
Australian patent market (FY20) Singapore patent market (CY20)
New Zealand patent market (FY20)
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Patent market - Australia

Improvement in IPH market position since AGM update

Australian patent filings – market[1]

• Australian patent market increased by 11.3% in 1H FY21 compared with the previous corresponding period.

• Removing all innovation patent filings, the market declined by 0.5%.

• Innovation patents from China and India were significant contributors to market growth, up 576% combined.

• Surge in Australian innovation patent filings likely related to impending phaseout in August 2021.

• 1) IPH Management estimate based on filing information recorded on IP Australia as at 3/02/21 (FY21), 14/07/20 (FY20), 1/08/19 (FY19) and 3/08/2018 (FY17-FY18). Includes all types of patent applications.

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40000
36,415 36,310 36,628 36,408
35000
30000
25000
20,502
20000
15000
10000
5000
0
FY17 FY18 FY19 FY20 FY21
1H Innovation 1H Standard + Provisional
2H Innovation 2H Standard + Provisional
Full Year
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IPH Group market share (excluding innovation patents)[2]

• IPH Group's filings (incl. innovation patents) declined by 5.1% from 1H FY20 to 1H FY21. Excluding innovation patents, filings declined by 5.7%.[3]

• This is an improvement from the ~8% decline update at the IPH 2020 AGM.

• Disruption in the Griffith Hack business due to impacts of the integration and extended Melbourne lockdown.

• Over one-third of Australian patent filings (excl. innovation patents) originate from the US, with around half being filed by IPH. IPH filings from US clients declined by 1.3%.

• 2) IPH Management estimate of Group market share based on agent recorded with IP Australia, excluding innovation patents, which will cease in August 2021. Data captured as at 3/02/21 (FY21) 14/07/20 (FY20), 1/08/19 (FY19), 3/08/18 (FY18) and 6/07/18 (FY17) and may not reflect any subsequent change of agent. IPH Group market share includes filings by the following entities: FY17 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, FY18 and FY19 - Spruson & Ferguson, FAKC, Pizzeys, Cullens and AJ Park. FY20 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, AJ Park, Griffith Hack, Shelston and Watermark. FY21 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, AJ Park, Griffith Hack, Shelston, Watermark and Baldwins. Filings from acquired companies are included from 1 Jul of the acquisition year. 3) IPH Management estimate of 1H FY21 Group filing growth includes Xenith and Baldwins on a pro-forma basis from 1/07/20.

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45.0%
40.0%
38.1%
36.8%
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 1H FY21
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Patent market - Singapore

IPH grows filings 5.7% in CYTD November filings

Singapore patent filings – market[1]

• Preliminary data for CY20 indicates market decline of 9.0% 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.

• Data for CY20 YTD November shows market increase of 3.3% compared with the previous corresponding period.[2]

• 1) IPH Management estimate based on IPOS filing information via incremental refreshes to 31/01/21 (CY20),

• 3/08/20 (CY19), 1/08/19 (CY18) and 2/08/18 (CY16-CY17). Note, data for recent months subject to change due to data release timings, and as such CY20 is a preliminary figure.

• 2) IPH Management estimate for CY20 YTD November based on IPOS filing information via incremental refreshes to 31/01/21 (CY20). Note, data is preliminary and may be subject to change due to data release timings.

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16,000
14,028
14,000
12,780
12,000 11,611
10,969 10,870
10,000
8,000
6,000
4,000
2,000
-
CY16 CY17 CY18 CY19 CY20
CY16 CY17 CY18 CY19 CY20
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IPH Group market share[3]

• Data for CY20 YTD November[2 ] shows IPH filing increase of 5.7% compared with the previous corresponding period, reflecting organic growth.

• IPH holding market share in CY20 despite closure of 'foreign route' and impact of COVID-19.

• IPH market share increased from 22.5% in CY19 YTD November to 23.0% in CY20 YTD November.

• 3) IPH Management estimate based on patent filings from agents recorded with IPOS via incremental refreshes to 31/01/21 (CY20), 3/08/20 (CY19), 1/08/19 (CY18), 9/07/18 (CY17), 10/08/17 (CY16), and may not reflect any subsequent change of agent. Note, data for recent months subject to change due to data release timings, and as such CY20 is a preliminary figure. From CY16 onwards, IPH market share includes the Singapore offices of Spruson & Ferguson and Pizzeys.

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30.0%
24.5%
25.0%
23.0% 23.3% 23.2%
22.2%
20.0%
15.0%
10.0%
5.0%
0.0%
CY16 CY17 CY18 CY19 CY20
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IPH patent filings – Asia1

Significant filing growth in Hong Kong and China – growth markets for IPH

• 1H FY21 compares against a strong 1H 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 5.3% in HY21 when compared with HY20.

• Network continues to be attractive to large clients. In 1H FY21 we have seen multiple clients increasing filings across a number of jurisdictions.

• 39% increase in new patent

• and trade mark case referrals to IPH Asian hubs (Singapore, China/Hong Kong) from

• acquired IPH businesses.[2]

• 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) Data based on internal filing statistics.

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600
500
400 (17.1%)
(20.6%)
18.1%
300
(21.0%) (14.7%)
200 23.2% (26.5%)
100
0
HY19 HY20 HY21 HY19 HY20 HY21 HY19 HY20 HY21 HY19 HY20 HY21 HY19 HY20 HY21 HY19 HY20 HY21 HY19 HY20 HY21
China Hong Kong Indonesia Malaysia Thailand Philippines Vietnam
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Trade mark market – Australia1

Maintains No. 1 position in a changing market

Australian trade mark filings - market

• In 1H FY21, Australian trade mark filings increased by 20.4%.

• Excluding self-filers, Australian trade mark filings increased by 15.3% for 1H FY21.

• 30.8% increase in self-filed trade mark applications from 1H FY20 to 1H FY21.[2]

• 1) IPH Management estimate based on filing information recorded on IP Australia as at 28/01/21 (FY21), 9/07/20 (FY20) and 1/08/19 (FY17-FY19). Trade mark filings and market share exclude International Registrations.

• 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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70,000
63,537
60,000 58,156 58,319 58,734
50,000
40,000
35,873
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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25.0%
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IPH Group market share[4]

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21.3%
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19.7%
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20.0%
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• IPH trade mark filings in Australia declined by 1.5% in 1H FY21.[3]

• The IPH Group continues to be the leading Australian trade mark group by market share of filings 15.0% 14.4% 14.2% from the top 50 agents. 13.1%

• • Disruption in the Griffith Hack business due to impacts of the integration and extended Melbourne lockdown. 10.0% 5.0%

• 3) IPH Management estimate of 1H FY21 Group filing growth includes Xenith and Baldwins on a pro-forma basis from 1/07/20. 4) IPH Management estimate of Group market share based on agent recorded with IP Australia as at 28/01/21 (FY21), 9/07/20 (FY20), 11/07/19 (FY18-FY19) and 24/10/18 (FY17) and may not reflect any subsequent change of agent. Market share calculated on total filings from top 50 agents. IPH Group market share includes filings by the following entities: FY17 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, FY18 and FY19 - Spruson & Ferguson, FAKC, Pizzeys, Cullens and AJ Park. FY20 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, AJ Park, Griffith Hack, Shelston and Watermark. FY21 - Spruson & Ferguson, FAKC, Pizzeys, Cullens, AJ Park, Griffith Hack, Shelston, Watermark and Baldwins. Filings from acquired 0.0% companies are included from 1 Jul of the acquisition year. FY17 FY18 FY19 FY20 1H FY21

• .

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Patent market trends

No discernible impact to long-term trends

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Australian Patent Filings CAGR Post-GFC (FY10 to FY20) = CAGR (FY05 to FY20) = 1.4%0.9% US PCT Applications CAGR Post-GFC (CY10 to CY20) = CAGR (CY05 to CY20) = 2.1%1.1%
45,000 70000
60000
40,000 50000
40000
35,000 30000
20000
30,000 10000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
25,000
Calendar Year
20,000 US PCT applications by filing date from WIPO IP Statistics Data Center as at 3/02/21 (CY20) and 21/07/20 (CY05-CY19).
Data for 2020 in chart and CAGR is an annualised figure based on latest WIPO data for the 10 months to October 20 as at 3/02/21.
15,000
China PCT Applications CAGR (CY05 to CY20) = 24.3%
CAGR Post-GFC (CY10 to CY20) = 17.8%
10,000
70000
60000
5,000 50000
40000
30000
20000
0 10000
0
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Calendar Year
IPH Management estimate based on filing information recorded on IP Australia as at 7/01/21 (FY21), 14/07/20 China PCT applications by filing date from WIPO IP Statistics Data Center as at 3/02/21.
(FY20), 7/07/19 (FY19), 3/08/18 (FY15-FY18) and 17/04/18 (FY05-FY14). Includes all types of patent applications. * Data for 2020 in chart and CAGR is an annualised figure based on latest WIPO data for the 10 months to October 20 as at 3/02/21.
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H FY21
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Integration & synergy capture

Proven track record of business improvement

Transformation of legacy Xenith group

• Divestment of Glasshouse Advisory business

• Integration of Griffith Hack and Watermark

• Removal of corporate costs and rightsizing property footprint and staffing levels

• Resulted in delivery of $15 million in Underlying EBITDA in the 6 month period compared to $19.7 million in its last full operating year

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Griffith Hack and Watermark integration

• Griffith Hack and Watermark now operating as a fully integrated firm under Griffith Hack

• New Griffith Hack Managing Director appointed in October 2020 and renewed firm leadership team in place

• Remain on track to deliver $2 million in synergies from the combined entity in FY21

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Baldwins

IP acquisition

• AJ Park acquisition of Baldwins was completed on 16 October 2020

• Full physical and systems integration achieved by 7 December 2020

• Synergies achieved through rental and right-sizing of business

• Remain on track to deliver expected EBITDA contribution of between A$2-2.5 million in 8.5 month period as outlined at 2020 AGM

• The acquisition has provided the AJ Park business with an expanded IP team and greater depth of IP expertise across a number of areas

• Merged entity traded at an EBITDA margin of 28% in period. This compares to a combined margin of 18% while operating as two separate entities

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Investing in the future of the IP profession and our people

Helping our people develop rewarding careers within the group

Building our leadership capability and talent opportunities

• Strong career opportunities for our people with more than 40 Principal appointments made since 2014 and ten Principal appointments so far in FY21.

• Significant improvement in voluntary attrition among professional staff (within the IP industry) from 10% reported in FY18 to 3% for HY21.

• Continue to invest in the future of the IP profession with 72 trainee attorneys across the group as of 31 December 2020.

• Baldwins acquisition has strengthened the AJ Park team with an expanded team of IP experts.

• Launch of People Leadership Excellence Program in early February with more than 70 People Leaders from across the Group participating.

• Remuneration reviews progressed as agreed in 1H FY21, taking effect from 1 January 2021.

Leveraging our people capability across the Group

• Centralised People team now in place across Asia-Pacific.

• Policy harmonisation for Australian IP firms, including launch of hybrid working framework balancing business and personal needs.

• Enhanced paid parental leave policy for primary and secondary caregivers will be launched in Q3 FY21.

• Centralised HRIS in development, will be launched in CY21.

• Partnering with a third party provider to launch a suite of global people engagement tools.

• Substantial development of group-wide e-learning curriculum across risk, HR and leadership.

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In October 2020, IPH announced the Appointment of former WIPO Director-General, Francis Gurry as a Strategic Advisor to the Group.

new Principal People Leaders Trainee appointments taking part in 40+ Since 2014 70+ 72 attorneys Leadership program

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New IPH brand is a cornerstone of the group’s ambitions

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Renewed focus on organic growth

Leveraging the combined power of the network

• Review of Marketing & BD activity completed across the Group.

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• Recruitment in progress for a Chief Commercial Officer to support organic growth and to leverage the combined power of the IPH network.

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Looking ahead

The IPH group is geared for growth

Coming out of 2020 as a stronger group, ready to further leverage our network:

• Demonstrated ability to achieve business improvement from acquisitions ​

• Right-sizing of operations has created more efficient operating model​

• Increased operational leverage to further enhance margins as markets stabilise and recover ​

• Targeting continued growth in WiseTime sales and expansion of its functionality

• Strong financial position (gearing 0.6 times)

• Progressing growth opportunities

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Thank you

iphltd.com.au

www.iphltd.com.au

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Revenue and EBITDA

Underlying Revenue $’m

Australia IP Asia IP New Businesses DatAdj a & Analytcent Bus nesses i cs Serv Corp & Interco

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369.5
2.7
256.6 110.4
226.0 0.5
186.0 1.2 15.2
179.8
0.7 38.1 102.7
93.5 0.2
33.2 16.7
73.6
47.3
58.7
156.4 167.2
121.7 118.9
99.9
(6.5) (8.6) (8.9) (13.6) (3.4)
FY17 FY18 FY19 FY20 HY21
1. Underlying EBITDA in HY21 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 HY21 represents 1.5 months of Xenith IP and 2.5 months of Baldwins.
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Underlying EBITDA $’m

Australia IP Asia IP New Businesses DatAdj a & Analytcent Bus nesses i cs Serv Corp & Interco

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114.5
17.8
89.7
2.4
74.0
71.6 43.6
6.1
38.6 61.7
10.1
2.3
30.5
27.2
21.0
69.1
59.4
48.7
42.9 42.9
(2.5) (2.7) (1.4) (2.3) (0.0)
(6.0) (8.6) (9.3) (4.5)
(13.7)
FY17 FY18 FY19 FY20 HY21
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Strategic direction Focus on IPH’s growth strategy

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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 filing information recorded on IP Australia as at 3/02/21 (1H 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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