IPH LIMITED — Investor Presentation 2016

Aug 17, 2016

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Full Year Results Presentation
Year ended 30 June 2016
David Griffith - Managing Director, IPH Limited
Dr. Andrew Blattman - CEO, Spruson & Ferguson
Malcolm Mitchell - Group Chief Financial Officer, IPH Limited
John Wadley - Deputy Chief Financial Officer, IPH Limited
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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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1. FY16 Highlights

2. FY16 Business Performance & Market Update

3. Acquisitions

4. FY16 Financial Results

5. Outlook & Growth Strategy

6. Appendices

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1 | FY16 HIGHLIGHTS

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4
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FY16 NPAT has increased by 50%

• Underlying NPAT of $46.9m (EPS 26.2c), 50% ahead of FY15.

• Like vs like (ie constant currency, excl. acquisitions) earnings growth in line with market trends over recent years.

• Revenue / earnings were biased towards the 1[st] HY (particularly in Asia) due to a pull forward of filings caused by the America Invents Act.

• Year on year net benefits derived from foreign exchange movements

• Incremental $12.4m EBITDA from new acquisitions

Underlying Results ($'m)	FY16	FY15	Chg %
Revenue	$143.1	$94.5	51%
EBITDA	$65.0	$42.5	53%
NPAT	$46.9	$31.2	50%
EPS (Diluted)	26.2c	19.9c	32%
Total Dividends	21.0c	13.5c	56%

Statutory Results ($'m)	FY16	FY15	Chg %
Revenue	$143.1	$93.8	53%
EBITDA	$59.5	$38.5	55%
NPAT	$38.8	$30.6	27%
EPS (Diluted)	21.7c	19.5c	11%

• Increased development expenditure on Practice Insight business.

• Free cash flow [1] of $39.1m, compared to $30.4m in FY15

• Cash of $58.5m, no debt and $95m undrawn bank facilities

• Final Dividend of 10.0c/share (50% franked) declared; No DRP

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Notes

1. Operating cash flow before acquisitions and financing activities

5

A year of acquisitions, expansion and organic growth

Key milestones:

1. Acquisitions

• Pizzeys (Sep 2015).

• Callinans (Nov 2015).

• Cullens (Jul 2016).

• Strong pipeline of acquisitions and expansion opportunities.

4. Operations

• Continue to improve operational efficiencies across the group.

• Strengthening the company’s management team with key appointments.

• A number of senior professional promotions across the group to ensure the continuity and regeneration of the business.

2. Asia

• IPH and Spruson & Ferguson (Asia) maintain the No.1 patent market position in Singapore with 25% market share.

• In FY16 Spruson & Ferguson (Asia) increased its total patent filings by 6.5% on previous year.

• Spruson & Ferguson (Asia) recommenced its trade mark business in Nov 2015.

• Pizzeys opened a Singapore office in Feb 2016.

• Spruson & Ferguson opened offices in Indonesia (March) and Thailand (June) in 2016.

• IPH’s companies received approval for WOFEs in Shanghai and Beijing.

• In 1HY16 America Invents Act (AIA) stimulated growth in patent filings in Australia and Asia.

5. Practice Insight

• Market-focused product development.

• New sales and support office in Munich to provide better reach in key markets (Europe and USA).

• Launch of new products.

3. Australia

• Strengthening market position with acquisition of Pizzeys, Callinans and Cullens.

• As a group IPH holds No.1 patent (22% market share) and trademark (13% “qualified” market share) market position in Australia.

• Spruson & Ferguson, as an individual firm, maintained No.1 patent market position in Australia.

• Strategic merger of Fisher Adams Kelly and Callinans practices (Nov 2015).

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2 | FY16 BUSINESS PERFORMANCE & MARKET UPDATE

EMPLOYEES

BRANDS

OFFICES

420+

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CLIENTS

• 6,000

PATENT MARKET SHARE

22% 25% No.1 in Australia No.1 in Singapore

FILINGS

• • 16,000 4,000 Patent applications Trademark applications

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Fig. 1: PCT international applications filed in United States of America, Japan and European Patent Office[1][)] by applicants from the respective countries[2)]

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140,000 CAGR = 3.89%
120,000
100,000
80,000
60,000
40,000
20,000
0
CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15
United States of America European Patent Office Japan
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Notes:

• 1) EPO resident applicants – applicants from countries, members of EPO.

• Re-normalisation of US PCT filings post America Invents Act (AIA) in the second half of CY15.

• 4% increase in EPO PCT applications and 5% increase in Japanese PCT applications by resident applicants in CY15 compared to CY14.

• A steady number of PCT applications filed in key jurisdictions gives confidence in the number of PCT national phase patent applications expected to be filed in the countries serviced by IPH.

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2) Source: IPH management analysis based on information available in the WIPO statistics database as at 1 Aug 2016.

Fig. 2: Asia Market - Patent applications filed in key jurisdictions in Asia[1][)]

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50,000
CAGR = 8.1%
Strong, consistent
40,000
growth in Asia.
30,000
7,930
20,000
1,937
8,023
5,630
10,000
0
CY10 CY11 CY12 CY13 CY14 CY15
Philippines Viet Nam Malaysia Thailand Indonesia2) Singapore3)
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Fig. 3: China Market - Patent applications filed in China[1)]

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1,000,000
CAGR = 24.1%
High-volume,
800,000 high-growth
market. Over
900,000 patent
600,000
applications
filed in China
400,000 with approx.
120,000 patent
200,000 applications
filed by non-
residents in
0
CY14.
CY10 CY11 CY12 CY13 CY14
Non-Resident Resident
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Fig.4: Australian Market - Patent applications filed in Australia[4)]

Fig. 5: Singapore Market - Patent applications filed in Singapore[5)]

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40,000
CAGR = 1.01%
Flat, mature market
35,000 in Australia.
30,000
25,000
20,000
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16
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12,000 CAGR = 2.04%
Moderate
10,000 market
growth in
8,000 Singapore.
6,000
4,000
2,000
0
CY10 CY11 CY12 CY13 CY14 CY15
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Notes:

1) Source: IPH management analysis based on information available in the WIPO statistics database as at 1 Aug 16.

2) CY12 Indonesia patent filings information is not available through the WIPO statistics database. CY12 filings are calculated as an average of CY11 and CY13 filing numbers. 3) Source: IPH management analysis based on information provided on IPOS website (“Singapore Patent Statistics 2014” and “Singapore Patent Statistics 2015”).

• 4) Source: IPH management analysis based on information available through IP Australia’s AusPat search facility. All types of patent applications. Accessed on 15 Aug 16.

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IPH and Spruson & Ferguson - No.1 in Australia and Singapore

Fig. 6: IPH market share in Australia[1)]

Fig. 7: IPH market share in Singapore[2)]

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30%
30%
22% 24% 24% 25%
20%
20%
15%
11%
10%
10%
0%
0%
FY14 FY15 FY16
CY13 CY14 CY15
Spruson & Ferguson Fisher Adams Kelly Callinans Pizzeys Cullens Spruson & Ferguson (Asia)
Fig. 8: IPH market share in key jurisdictions in Asia (CY14) [ 3)]
13% 9% 7% 6% 4% 1% <1%
Malaysia Philippines Indonesia Vietnam Thailand India China
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Notes:

• 1) Source: IPH management estimate based on agent recorded with IP Australia as at 1 Aug 16 and may not reflect any change of agent recorded since filing.

• 2) Source: IPH management estimate based on agent recorded with IPOS on 1 Aug 14 (CY13 patent filings), 6 Aug 15 (CY14 patent filings) and 4 Feb 16 (CY15 patent filings). Excludes patent filings by Pizzeys (Asia) in Singapore.

• 3) Source: IPH management analysis based on non-resident patent applications filed by Spruson & Ferguson (Asia) and total non-resident patent applications filed in the jurisdictions as recorded in in the WIPO statistics database as at 15 Aug 16. Outside Singapore and Malaysia, market share is represented by applications filed by agents instructed by Spruson & Ferguson (Asia).

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Increased number of applications filed by the group through organic growth and acquisitions

Fig. 9: Patent filings by IPH group[1)]

Fig. 10: Trademark filings by IPH group[1)]

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18,000
16,436 4,500
4,020
14,000
11,448 3,000 2,438
9,786 2,127
10,000
1,500
6,000
0
2,000
FY14 FY15 FY16
FY14 FY15 FY16
Cullens Pizzeys Cullens Pizzeys
Fisher Adams Kelly Callinans Fisher Adams Kelly Fisher Adams Kelly Callinans Fisher Adams Kelly
Spruson & Ferguson (Asia) Spruson & Ferguson (Australia) Spruson & Ferguson (Asia) Spruson & Ferguson (Australia)
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Notes:

• 1) Source: IPH management analysis based on data extracted from Inprotech of SF(AU), SF (Asia), FAKC, Pizzeys and Cullens. All patent applications filed either directly or indirectly through an agent, including through IPH entities. Filing numbers are based on number of applications filed by SF(AU) and SF(Asia) and annualised number of applications filed by FAKC, Pizzeys & Cullens.

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3 | ACQUISITIONS

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Consolidation of the fragmented IP market in Australia

Pizzeys			Callinans			Cullens
 Completed acquisition on 30 September 2015.  Brisbane & Canberra based patent & trade mark attorneys, established for over 20 years.  Strong foreign client base.  Total consideration $72.1m; consideration settled 50% in cash and the balance by the issue of 6,776,263 new IPH shares. Shares escrowed for 2 years.  Earn-out payable, based on FY16 earnings, of $6.6m and issue of 1,229,538 new IPH shares. Earn-out shares to be escrowed for 2 years from date of issue.  Immediately EPS accretive.  Pizzeys office in Singapore opened in February 2016.			 Completed acquisition on 2 November 2015.  Melbourne based patent & trade mark attorneys.  Both local and foreign client base.  Total consideration $5.5m; consideration settled 50% in cash and the balance by the issue of 393,932 new IPH shares. Shares escrowed for 2 years.  Potential earn-out based on client retention of up to $2.0m and 143,248 IPH shares.  Immediately EPS accretive.  Merged with Fisher Adams Kelly to provide synergies and critical mass for the combined businesses.			 Completed acquisition on 30 June 2016.  Queensland based patent & trade mark attorneys, established for over 80 years.  Strong domestic client base.  Total consideration $35.6m1, settled 50% in cash and the balance by the issue of 2,553,630 new IPH shares. Shares escrowed for 2 years.  Earn-out payable, based on FY16 earnings, of $3.4m and issue of 487,890 new IPH shares. Earn-out shares escrowed for 2 years from date of issue.  Immediately EPS accretive. 1 Based on $6.97 VWAP issue price of IPH shares and net of cash acquired.

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4 | FY16 FINANCIAL RESULTS

Acquisitions, expansion & organic growth have delivered significant increases in Revenue & EBITDA

**$'m **	Revenue FY16 Revenue FY15 Chg% EBITDA FY16 EBITDA FY15 Chg%
	93.3 53.6 74% 42.3 23.6 79% 54.3 42.9 27% 26.9 21.1 27%
Australian IP
Asian IP
	147.6 96.5 53% 69.2 44.7 55% 0.4 0.1 (0.8) 0.0 0.0 0.4 (3.4) (2.2) (4.9) (2.5) 0.0 0.0
Data Services
Corporate Office
Eliminations
Underlying EBITDA / Revenue	143.1 94.5 51% 65.0 42.5 53% (2.1) (0.3) (0.3) 0.0 (1.1) 0.0 (1.2) (0.5) (0.8) (0.5) 0.0 (3.5) 0.0 (0.7) 0.0 0.8
Business acquisition costs
Business combination adjustments (net)
New business establishment costs
Restructuring expenses
Share based payments
IPO expenses
IPO proforma adjustments
Statutory EBITDA / Revenue	143.1 93.8 53% 59.5 38.5 55%

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NPAT increased by 50%; EPS increased by 32%

Year ended 30 June 2016	FY16 Statutory Income Statement Adjustments Underlying Earnings FY16 FY15 Statutory Income Statement Adjustments Underlying Earnings FY15	FY16 Statutory Income Statement Adjustments Underlying Earnings FY16 FY15 Statutory Income Statement Adjustments Underlying Earnings FY15	FY16 Statutory Income Statement Adjustments Underlying Earnings FY16 FY15 Statutory Income Statement Adjustments Underlying Earnings FY15
$'m
Total revenue	143.1	143.1 93.8 0.7 94.5
Recoverable expenses	(27.4)	(27.4) (15.7) (0.3)	(16.0)
	115.7	115.7 78.1	78.5
Compensation	(39.7) 0.8 (38.9) (27.0) 0.2 (26.8)
Occupancy	(4.7) (4.7) (2.9) (2.9)
New businesses/ acquistions related net expenses	(3.5) 3.5 0.0 (0.3) 0.3 0.0
Other	(8.3) 1.2 (7.1) (9.4) 3.1 (6.3)
Total expenses	(56.2)	(50.7) (39.6)	(36.0)
EBITDA	59.5	65.0 38.5	42.5
EBITDA %	41.6%	45.4% 41.0%	45.0%
Depreciation & Amortisation	(7.2) 5.0 (2.2) (1.1)		(1.1)
EBIT	52.3	62.8 37.4	41.4
Net Finance Costs	(1.0)	(1.0) (0.5)	(0.5)
NPBT	51.3	61.8 36.9	40.9
Tax (expense)/benefit	(12.5) (2.4) (14.9) (6.3) (3.4) (9.7)
NPAT	38.8 8.1 46.9 30.6 0.6 31.2
Diluted EPS (cents)	21.7c 26.2c 19.5c 19.9c

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FY13 - FY16

Underlying Revenue $'m

Australia IP Asia IP New Businesses Corporate & Interco

Underlying EBITDA $'m

Australia Asia New Businesses Corporate & Interco

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143.1
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37.7
94.5
1.7
81.7
76.4 0.0 53.9
0.0
42.9
31.2
26.3
56.4
50.1 50.5 52.0
(2.1) (4.9)
FY13 FY14 FY15 FY16
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65.0
12.4
42.5
0.4
26.9
30.0
28.6 21.1
0.0
0.0
10.2 13.7
29.1
23.3
18.4
16.3
(2.3) (3.4)
FY13 FY14 FY15 FY16
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Underlying growth in line with market trends

Revenue $'m	Underlying Revenue FY16 New Businesses1) Currency Adjustment 2) Adjusted Revenue FY16 Adjusted Revenue FY15 3) Chg%
	93.3 (36.9) (4.0) 52.4 52.0 1% 54.3 (0.4) (6.5) 47.4 42.9 10% 0.4 (0.4) 0.0 0.0 0.0 0.0 0.4 (4.9) (4.9) (2.5)
Australian IP
Asian IP
Data Services
Corporate
Eliminations
	143.1 (37.7) (10.5) 94.9 92.8 2%
EBITDA $'m	Underlying EBITDA FY16 New Businesses1) Currency Adjustment 2) Adjusted EBITDA FY16 Adjusted EBITDA FY15 3) Chg%
	42.3 (13.2) (3.3) 25.8 23.2 11% 26.9 0.0 (4.0) 22.9 21.1 9% (0.8) 0.8 0.0 0.0 (3.4) (3.4) (2.2)
Australian IP
Asian IP
Data Services
Corporate
	65.0 (12.4) (7.3) 45.3 42.1 8%

**Currency **	4)	AUD/USD	AUD/EUR	SGD/AUD
HY15		0.8970	0.6918	1.1430
2HY15		0.7813	0.7018	1.0544
FY15		0.8391	0.6968	1.0987
HY16		0.7233	0.6555	1.0117
2HY16		0.7339	0.6574	1.0127
FY16		0.7286	0.6564	1.0122

Notes:

• 1) New Businesses adjustments remove the Revenue & EBITDA of business which were not part of the IPH Group for the whole of FY15 & FY16.

• 2) Currency Adjustment, resets FY16 income & expenses to prior year foreign exchange rates

• 3) The FY15 comparative figures have been adjusted by reallocating certain income and expenses between segments to provide like vs like comparatives with FY16. The FY15 comparative figures excludes the results of businesses which were not part of the IPH Group for the whole of the year (Revenue $1.7m & EBITDA $0.4m).

• 4) This table shows the average foreign exchange rates used to translate earnings balances to determine the currency adjustments

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High cash conversion

Year ended 30 June 2016	FY16 Cash Flow Statement FY15 Cash Flow Statement
$'m
Statutory EBITDA	59.5 38.5
Non-cash movements	1.6 1.1
Change in working capital	(4.8) (2.6)
Operating capital expenditure & capitalisation	(3.3) (1.3)
Cash flow before acquisitions, financing activities and tax 53.0 35.7
Cash conversion ratio	89% 93%
Income taxes paid	(13.3) (4.8)
Net interest paid	(1.0) (0.5)
Free cash flow	38.7 30.4
Dividends paid (net DRP)	(33.8) (26.8)
Undistributed free cash flow	4.9 3.6
Share placement (net of costs)	108.5 0.0
Acquisitions	(49.6) (3.2)
Net borrowing proceeds/(repayments)	(10.5) 1.0
Net cash flow	53.3 1.4

• Minimal working capital requirements.

• High proportion of earnings are converted to cash.

• Higher operating CAPEX due to expenditure on new data centres and increased capitalisation of internally developed software.

• Catch up of Australian tax payments as IPH entered the provisional tax payments system.

• Strong cash flows support a high dividend pay-out.

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Strong balance sheet

	Statutory Balance Sheet as at 30 Jun 2016 Statutory Balance Sheet as at 30 Jun 2015
$'m	58.5 5.4 38.0 27.4 3.9 2.1
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets	100.4 34.9 4.3 2.1 190.2 33.6 3.1 2.0
PP&E
Acquisition intangibles & goodwill
Deferred tax asset
Total assets	298.0 72.6
	13.9 10.0 0.0 10.5 6.9 5.7 28.2 5.0 17.4 0.0 9.8 6.2
Trade and other payables
Loans and borrowings
Tax provisions
Deferred acquisition liability
Deferred tax liability
Other liabilities
Total liabilites	76.2 37.4
Net assets	221.8 35.2
	218.6 35.3 (13.2) (14.6) 16.4 14.5
Equity
Issued capital
Reserves
Retained profits
Total equity	221.8 35.2

• $58.5m cash

• No bank borrowings

• Undrawn bank facilities of $95m available

• Intangibles increase from acquisitions of Pizzeys, Callinans & Cullens

• Deferred tax liabilities related to acquisition intangibles

• Deferred acquisition liability to be settled in cash and IPH shares (approx. 50:50)

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Revenue net of Recoverable Expenses

Operating Expenses

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SGD
EUR 4%
4%
SGD
26%
AUD
35%
AUD
USD
74%
56%
Other
1%
Currency [ 2)] +/- 5%
USD 3.6m
SGD (0.3)m
EUR 0.3m
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Notes

• 1) Based on current IPH Group operating earnings and FY16 average FX rates, with acquisitions annualised 2) Annualised IPH EBITDA sensitivity based on 5% appreciation (+) or depreciation (-) of foreign currency against AUD

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5 | OUTLOOK & GROWTH STRATEGY

To continue to deliver sustainable growth

Organic growth and development of existing businesses:

• The group’s Australian & Asian businesses are expected to continue growing in line with the underlying market trends experienced in recent years.

• Incremental earnings contributions from the new businesses acquired in the last year.

• Incremental Asian growth as new offices ramp up through the year.

IPH will continue to execute on its strategic growth initiatives:

• Expansion into new secondary IP markets where IPH currently has little or no exposure through accretive acquisitions and/or establishment of new offices.

• Entering adjacent areas of IP by acquisition and/or organic growth.

• Practice Insight development expenses to increase to $3-4m in FY17.

• Continued improvement in operational efficiencies, quality control and governance.

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24

Forthcoming principals’ escrow release:

• IPH intends to facilitate a share sale facility for escrowed principals (being former trustees of Spruson & Ferguson) to conduct any sale of shares in a structured and orderly fashion once escrow restrictions are released on 19 November 2016

• IPH has appointed Macquarie and Morgans Financial as its financial advisers in relation to any such share sale facility

• It is intended that allocations under the sale facility will have regard to recent trading activity and the share register at the time

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Delivering on the vision of becoming the leading IP group in secondary markets and adjacent areas of IP

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• Australia: acquisition of four IP services firms: Fisher Adams Kelly, Callinans, Pizzeys and Cullens.

• Asia: Expanding IPH’s presence in existing and new markets in Asia:

• opening a Pizzeys office in Singapore

• opening Spruson & Ferguson offices in Shanghai (China), Indonesia and Thailand;

• receiving approval for WOFEs in Shanghai and Beijing; and

• • strengthening capabilities of Fisher Adams Kelly Callinans and Pizzeys in Asia.

• Adjacent markets: the acquisition of IP data and analytics software development company, Practice Insight - first step into the valuable IP adjacent business market.

• Operational Efficiencies: Maximising future operational efficiencies by integrating (merging) the practices of Fisher Adams Kelly and Callinans.

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26

6 | APPENDICES

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27
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• IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”), Fisher Adams Kelly Callinans (“FAKC”), Pizzeys, Practice Insight (“PI”) and Cullens. In March 2016 IPH was included in the S&P/ASX 200 index.

• S&F:

• Established in 1887

• A leading Intellectual Property (“IP”) firm in AsiaPacific

• Top-tier IP group with a strong reputation and brands

• Operates with IP service hubs, offering a “one-stop” service into 25 countries in Asia Pacific from offices in Sydney, Singapore, Kuala Lumpur, Bangkok, Jakarta and Shanghai

• FAKC - established over 30 years ago and is a leading firm in Queensland, in late 2015 acquired Melbourne based business, Callinans.

• Pizzeys – established over 20 years with offices in Canberra and Brisbane. Strong foreign client base. Recently opened Pizzeys Singapore office.

• PI - specialist provider of data analysis and software applications for IP and other professional services firms.

• Cullens – based in Queensland and established over 80 years ago. Strong domestic client base.

• Successful IPO in November 2014 - first IP firm to list in Asia Pacific

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28

Highly diversified client base, annuity style client relationships. The majority of revenue derives from patent business.

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Revenue split by
Service Line
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Revenue split by Geographical Location

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11% [2% ]
35%
65%
87%
Trade Marks Australia Asia
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Patents & Designs Trade Marks Legal

Notes:

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Revenue split by
Client
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2% 5%
9%
84%
Largest Client 2 - 5 Clients 6 - 20 Clients Other
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1) Revenue is based on service charges by SF(AU) and SF(Asia) and annualised service charges including FAKC, Pizzeys & Cullens – excludes expense recoveries

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Clients:

• Fortune Global 500 companies, multinationals, public sector research organisations, SMEs and professional services firms worldwide.

• Majority of clients are from USA, Europe and Japan.

• Largest client – 2%.

• Long-standing clients.

Service Lines: 87% of IPH’s revenue is derived from patent/design business, the remainder being 11% trade marks and 2% legal. 35% of the Group’s revenue was from Asian operations.

Service Lifecycle: IPH generates revenue from all stages of the IP lifecycle (for example, patents have a lifecycle of 20 years).

Key Proposition: operation of IP service hubs - “one-stop” service for clients co-ordinating IP applications in 25+ countries across Asia Pacific along with local offices in key jurisdictions.

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Corporate Information

Directors Mr. Richard Grellman AM - Chairman Mr. David Griffith - Managing Director Ms Robin Low Dr Sally Pitkin Mr John Atkin Company secretary

Mr. Philip Heuzenroeder - General Counsel

Ordinary Shares on Issue	Number %
Free float	98,113,541 52%
Escrowed **	90,769,779 48%
Total	188,883,320 100%
Top 20	115,123,314 61%
Balance	73,760,006 39%
	188,883,320 100%
** Held by Principals of IPH Group Companies

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• IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”), Fisher Adams Kelly Callinans (“FAKC”), Pizzeys, Cullens and Practice Insight (“PI”).

• S&F, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia-Pacific; top-tier firm with a strong reputation and brand.

• Long track record FAKC, established over 30 years, Brisbane based, strong local client base, recently acquired Callinans business.  Pizzeys, established over 20 years, offices in Canberra & Brisbane, strong foreign client base, new office in Singapore.

• PI, IP data analysis and business applications software, one step into the valuable IP adjacent business market.

• Cullens, based in Queensland and established over 80 years ago. Strong domestic client base.

• 2  IPH operates as an IP service hub, offering a “one-stop” service into 25 countries in Asia-Pacific.

• Strong business  Utilisation of local agents provides an efficient, professional and reliable business model.

• model  Leading IT and case management systems which ensure efficient operations.

• 3 

• Market leading Australia (# 1 by patent applications filed[1] and # 1 by trademark applications filed[2] ) 

• position Singapore (# 1 by patent applications filed[3] )

• 4  IP is often fundamental to the operations and value of many of the world’s leading companies. Positive IP sector  IPH believes IP protection is becoming increasingly important in the higher growth Asian region. 

• dynamics Regulated on a country by country basis – requires local expertise in each jurisdiction.  IP has a long life cycle which supports consistent revenues and earnings.

• 5  Clients are “sticky” to the business, not to the individuals. Top tier, diverse  Range of blue chip multinationals domiciled in the USA, Europe and Japan.

• client base  Highly diverse, long-standing client base.

Notes:

• 1) IPH management estimates based on agent recorded with IP Australia as at 1 Aug 16 and may not reflect any change of agent recorded since filing.

• 2) IPH management estimates based on agent recorded with IP Australia as at 1 Aug 16 and may not reflect any change of agent recorded since filing. Top 50 Agents only - by number of trade mark applications filed at the Australian Trade Mark Office in FY16.

• 3) IPH management estimates based on agent recorded with IPOS on 1 Aug 14 (CY13 patent filings), 6 Aug 15 (CY14 patent filings) and 4 Feb 16 (CY15 patent filings). Excludes patent filings by Pizzeys (Asia) in Singapore.

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6 7 8 9 10	Experienced Board, management & personnel	 Strong board with complementary skill sets.  Long standing, experienced management team.  Highly qualified and experienced professional IP team.  A number of senior professional promotions across the group to ensure continuity and regeneration.
	High barriers to entry	 Entrenched market position, large pipeline of work, established brand name, track record, hub strategy and efficient operating platform provide significant competitive advantages
	Attractive financial profile and high cash conversion	 Track record of revenue and earnings growth.  Strong margins, low overheads, low WIP, low capital requirements and low gearing generates strong cash flow and the ability to offer a high dividend payout ratio .
	Substantial growth opportunities	 Organic growth within the existing businesses and markets.  Expansion to other secondary IP markets where IPH currently has little or no exposure by accretive acquisitions or establishment of new offices.  Entering new adjacent areas of IP by acquisition and/or organic growth.  Continue to improve operational efficiencies, quality control and governance.
	Proven acquisitions track record	 Completed five acquisitions since IPO.  Leveraging experience in identifying, valuing and executing strategic and value accretive acquisitions for future opportunities.

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