IPH LIMITED — Interim / Quarterly Report 2016

Feb 22, 2016

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Half Year Results Presentation Half year ended 31 December 2015 (“HY16”)

23 February 2016

Presenters

David Griffith - Managing Director, IPH Limited Dr. Andrew Blattman - CEO, Spruson & Ferguson Malcolm Mitchell - Group Chief Financial Officer, IPH Limited

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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.

Contents

1. HY16 Highlights

2. HY16 Business Performance and Market Update

3. Acquisitions

4. HY16 Financial Performance

5. FY16 Strategic Initiatives

6. Appendices

1. HY16 Highlights

Financial Highlights

HY16 adjusted NPAT has increased by 75% on HY15

• Underlying (constant currency, excl. acquisitions) earnings growth

• Adjusted NPAT of $23.4m (EPS 13.8c), 75% ahead of HY15

 Continuing net benefits derived from foreign exchange movements  Incremental $4.0m EBITDA from new acquisitions  Strong growth from Spruson & Ferguson		Adjusted Earnings	Adjusted Earnings	Change%
		HY 15('m)	HY 16(’m)
	Revenue	$43.2	$69.0	+60%
	EBITDA	$18.3	$32.1	+75%
	NPAT	$13.4	$23.4	+75%
	EPS (Diluted) 8.3c 13.8c			+66%

• Free cash flow [1] of $24.2m, compared to $15.6m in HY15

• Cash $77m, no debt and $97.6m undrawn bank facilities

• Dividend of 11.0c/share (8.8c franked) declared; No DRP

Notes

1. Free cash flow before dividends, acquisitions and financing activities

Operational Highlights

Strong operational performance across the group

 Acquisitions : IPH continues its growth through strategic acquisitions

• Pizzeys (Sep’15)

• Callinans (Nov’15)

• Strong pipeline of acquisitions and development opportunities

• Group: IPH companies filed total of 7,889 patent and 1,763 trade mark applications in HY16

 Asia: IPH expands its presence in Asia

• maintained no. 1 patent market position in Singapore with 25% market share

• SF Asia recommenced trade mark business in Singapore in Nov 15

• Pizzeys opened Singapore office on 1 Feb 16

 Australia : IPH strengthened its position in Australia

• IPH strengthened its market position in Australian with acquisition of Pizzeys and Callinans

• maintained no. 1 patent (combined 20.5% market share) and holds no. 1 trade mark market position in Australia (combined 11% “qualified” market share)

• America Invents Act stimulated growth in patent filings in Australia and Asia in the period

Operational Highlights (cont’d) Strong operational performance across the group

• Practice Insight: strong focus on product development and sales/marketing

• market-focused product development

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

• Efficiencies: efficiencies are gaining momentum and allowing for scalability and flexibility in operations across the group

 Management Team: IPH strengthening company’s management team with COO, Deputy CFO and Group Treasurer appointments

2. HY16 Business Snapshot and Market Update

Market Overview – Global Trend in Patents

Growing trend in international PCT patent applications

• Growing trend of PCT applications lodged in key jurisdictions (USA and Japan) gives confidence in the increasing number of PCT national phase patent applications to be filed in the countries serviced by IPH.

PCT international applications lodged in US, JP & EP offices by applicants from the respective countries (12 months trend)

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5500
4500
United
States of
America
3500
Japan
European
2500
Patent
Office
1500
2014/11 2014/12 2015/1 2015/2 2015/3 2015/4 2015/5 2015/6 2015/7 2015/8 2015/9 2015/10
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Data Source: WIPO as at Feb 16
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Market Overview – Asian Patent Market

Growing patent market in Asia

SG, ID, TH, MY VN & PH Total Patent Filings

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12000
10000
8000
CY10
CY11
6000 CY12
CY13
CY14
4000
CY15 (1)
2000
0
Singapore Indonesia (3) Thailand (2) Malaysia Vietnam Philippines
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Data Source: WIPO, IPH

(1) CY15 patent filing numbers are not available through WIPO . Singapore patent filings in CY15 – IPH estimate.

(2) Thailand joined PCT system on 24/12/2009 causing lag in patent filings in CY10 and CY11

(3) CY12 patent filing numbers for Indonesia are not available through WIPO. CY12 number is average of CY11 and CY13 filing numbers.

Market Overview – AU & SG Patent Markets

Growing patent market in Australia and Singapore

• Increasing number of patent applications filed at IP Australia in CY15.

• It is estimated that over 10,500 patent applications were filed at IPOS in CY15.

Total Patent Filings in Australia

Total Patent Filings in Singapore

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37000 11,000
36000
10,500
35000
10,000
34000
33000 9,500
32000
9,000
31000
8,500
30000
29000 8,000
CY10 CY11 CY12 CY13 CY14 CY15 CY10 CY11 CY12 CY13 CY14 CY15
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Data Sources: IP Australia and IPOS

Notes:

1. Total patent filings at IP Australia and IPOS as at February 2016

2. CY15 patent filings at IPOS – IPH Estimate

3. In CY15 America Invents Act stimulated growth in patent filings in Australia and Singapore

Market Overview – IPH patent market share in AU & SG

No 1 IP group in Australia and Singapore

• Australia: IPH (incl. SF, FAKC and Pizzeys) has 20.5% patent market share and holds no. 1 market position

• Singapore: IPH (SF (Asia) ) has 25% patent market share and holds no. 1 market position

IPH Patent Market Share in Australia

(FYTD16 as at 31 Dec 2015)

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25%
20% 20.5%
15%
10%
10%
9%
6%
5% 6%
0%
FY12 FY13 FY14 FY15 FYTD16
IPH Competitor 1 Competitor 2
Competitor 3 Competitor 4
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IPH Patent Market Share in Singapore (CYTD15 as at 30 November 2015)

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30%
25%
25%
20% 20%
15%
10%
9%
6%
5%
0%
CY11 CY12 CY13 CY14 CYTD15
IPH Competitor 1 Competitor 2 Competitor 3
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Data Sources: IP Australia and IPOS

Notes:

1. CYTD15 (as at 30 Nov 15) patent filings at IPOS – IPH Estimate

2. Applications filed based on agent recorded with IP Australia and IPOS as at February 2016 and may not reflect any change of agent recorded since filing

Market Overview – IPH patent market share in Asia

IPH continues to maintain strong patent market position in key jurisdictions in Asia

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SF (Asia) Patent Market Share - Asia (CY 14)
30%
25%
25%
20%
15%
13%
10% 9%
7%
6%
5% 4%
1%
0%
Singapore Malaysia Philippines Indonesia Viet Nam Thailand India
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Data Source: WIPO and IPH

Notes:

1. Outside Singapore and Malaysia, market share is represented by applications filed by agents instructed by Spruson & Ferguson. 2. Estimated market share based on non-resident patent applications filed in CY14. CY15 data is not available through WIPO .

Filings by IPH companies

Increasing number of patent and trade mark applications filed by IPH companies

	FY12	FY13	FY14	FY15	HY16
Patents
Spruson & Ferguson (Australia)	4,674	5,303	4,523	4,488	2,311
Spruson & Ferguson (Asia)	4,662	5,056	5,263	5,718	3,254
Fisher Adams Kelly	-	-	-	1,242	907
Pizzeys	-	-	-	-	1,417
Patent Applications by IPH	9,336	10,359	9,786	11,448	7,889
Trade Marks
Spruson & Ferguson (Australia)	2,305	2,271	2,127	1,866	1,170
Spruson & Ferguson (Asia)	-	-	-	-	80
Fisher Adams Kelly	-	-	-	572	366
Pizzeys	-	-	-	-	147
Trade Mark Applications by IPH	2,305	2,271	2,127	2,438	1,763

Data Source: IPH

Notes:

1. All patent applications filed either directly or indirectly through an agent, including through Spruson & Ferguson (Asia) in the case of Asian applications.

2. All patent applications filed by the Singapore office either directly or indirectly through an agent, including through Spruson & Ferguson (Australia) in the case of Australian, New Zealand and Papua New Guinea applications.

3. In FY13 patent application volumes were inflated by the “Raising the Bar” legislation which brought forward many patent application.

3. Acquisitions

Pizzeys

Continuing the consolidation of the fragmented IP market in Australia

• 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.

• Potential earn-out based on FY16 earnings of up to $6.7m and issue of 1,229,545 new IPH shares. Earn-out shares escrowed for 2 years from date of issue.

• Immediately EPS accretive

• Pizzeys office in Singapore opened in February 2016

Callinans

Merger with FAK to provide critical mass. Further market consolidation

• 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

• Merger with Fisher Adams Kelly to provide synergies and critical mass for the combined businesses.

4. HY16 Financial Results

Income Statement

Growth, acquisitions and continuing benefits derived from currency movements

Six months ended 31 December 2015	HY16 Reported Income Statement Adjustments 1)	Adjusted Earnings HY16 HY15 Reported Income Statement Adjustments 2) Adjusted Earnings HY15	Adjusted Earnings HY16 HY15 Reported Income Statement Adjustments 2) Adjusted Earnings HY15
$'m
Total revenue	69.0	69.0 42.5 0.7 43.2
Recoverable expenses	(11.7)	(11.7) (6.5) (0.3) (6.8)
	57.3	57.3 36.0	36.4
Compensation	(18.0) 0.5 (17.5) (14.1) 0.2 (13.9)
Occupancy	(2.1) (2.1) (1.3) (1.3)
Acquisition related net expenses	(2.9) 2.3 (0.6) 0.0 0.0
Other	(5.0)	(5.0) (5.9) 3.0 (2.9)
Total expenses	(28.0)	(25.2) (21.3)	(18.1)
EBITDA	29.3	32.1 14.7	18.3
EBITDA %	42.5%	46.5% 34.6%	42.4%
Depreciation & Amortisation	(2.9) 2.1 (0.8) (0.5)		(0.5)
EBIT	26.4	31.3 14.2	17.8
Interest expense	(0.9)	(0.9) (0.2)	(0.2)
NPBT	25.5	30.4 14.0	17.6
Tax (expense)/benefit	(7.0)	(7.0) (0.8) (3.4) (4.2)
NPAT	18.5 4.9 23.4 13.2 0.2 13.4
Diluted EPS (cents)	10.9c 13.8c 8.2c 8.3c

Adjustments

1) Adjustments for amortisation of intangibles arising from business combination valuations, acquisition earn out shares repricing, acquisition balances adjustments and the expense of equity-settled long-term incentive plan rights issues.

2) Adjustments for IPO expenses, recognition of leave balances, recognition of deferred tax balances , pre-reconstruction earnings of S&F Lawyers, and the expense of equity-settled long-term incentive plan rights issues; and notional adjustments to reflect changes to principal's remuneration and public company costs .

Like vs Like Earnings

Spruson & Ferguson continues its growth

Six months ended 31 December 2015	Adjusted Earnings HY16 Acquisitions Constant Currency Adjustment Adjusted Earnings HY16 1) Adjusted Earnings HY15 Vrnc $'m Vrnc %	Adjusted Earnings HY16 Acquisitions Constant Currency Adjustment Adjusted Earnings HY16 1) Adjusted Earnings HY15 Vrnc $'m Vrnc %
$'m
Total revenue	69.0 (14.0) (7.7) 47.3 43.2 4.1 +9%
Recoverable expenses	(11.7) 3.4 1.2 (7.1) (6.8) (0.3)
	57.3	40.2 36.4 3.8 +10%
Compensation	(17.5) 3.9 0.5 (13.1) (13.9) 0.8
Occupancy	(2.1) 0.7 0.1 (1.3) (1.3) 0.0
Acquisition related expenses	(0.6) 0.6 0.0 0.0 0.0
Other	(5.0) 1.4 0.3 (3.3) (2.9) (0.4)
Total expenses	(25.2)	(17.7) (18.1) 0.4
EBITDA	32.1 (4.0) (5.6) 22.5 18.3 4.2 +23%
EBITDA %	46.5%	47.6% 42.4%
Depreciation & Amortisation	(0.8) 0.1	(0.7) (0.5) (0.2)
EBIT	31.3	21.8 17.8 4.0
Interest expense	(0.9) 0.6	(0.3) (0.2) (0.1)
NPBT	30.4	21.5 17.6 3.9
Tax (expense)/benefit	(7.0) 1.2 1.3 (4.5) (4.2) (0.3)
NPAT	23.4 (2.1) (4.3) 17.0 13.4 3.6 +27%

Notes 1) Like vs like adjusted earnings

Segment Breakdown

Earnings growth across all businesses

Six months ended 31 December 2015	Australia HY16 Earnings Asia HY16 Earnings Eliminations1) Adjusted Earnings HY16 Australia HY15 Earnings Asia HY15 Earnings Eliminations1) Adjusted Earnings HY15
$'m
Total revenue	42.8 28.8 (2.6) 69.0 24.9 19.3 (1.0) 43.2
Total expenses	(25.7) (13.8) 2.6 (36.9) (16.1) (9.8) 1.0 (24.9)
EBITDA	17.1 15.0 0.0 32.1 8.8 9.5 0.0 18.3
EBITDA %	40.0% 52.1% 46.5% 35.3% 49.2% 42.4%
Depreciation & Amortisation	(0.6) (0.2) (0.8) (0.4) (0.1) (0.5)
EBIT	16.5 14.8 0.0 31.3 8.4 9.4 0.0 17.8
Interest expense	(0.9) 0.0 (0.9) (0.2) 0.0 (0.2)
NPBT	15.6 14.8 0.0 30.4 8.2 9.4 0.0 17.6
Tax expense	(4.8) (2.2) (7.0) (2.7) (1.5) (4.2)
NPAT	10.8 12.6 0.0 23.4 5.5 7.9 0.0 13.4

Notes 1) Excludes intergroup dividends

Revenue and EBITDA[1) ] FY13 - FY15 & HY16

Revenue $'m

EBITDA[1) ] $'m

Australia Asia New Businesses Interco

Australia Asia New Businesses

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New Businesses Interco 42.3
94.6 32.1
30.0 21.1
79.2 28.6 4.0
74.2
69.0
42.9
26.3 31.2 14.0 10.2 13.7
15.0
28.8
21.2
54.2
50.1 50.5 18.4
16.3
13.1
28.8
(2.2) (2.5) (2.5) (2.6)
FY13 FY14 FY15 HY16
FY13 FY14 FY15 HY16
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Notes 1) Adjusted EBITDA

Cash Flow Statement

Strong cash flow

• Low CAPEX & minimal working capital requirements = Strong cash generation, supports high dividend pay-out ratio

Six months ended 31 December 2015	HY16 Cash Flow Statement Adjustments 1) HY16 Adjusted Cash Flow Statement HY15 Cash Flow Statement Adjustments 2) HY15 Adjusted Cash Flow Statement	HY16 Cash Flow Statement Adjustments 1) HY16 Adjusted Cash Flow Statement HY15 Cash Flow Statement Adjustments 2) HY15 Adjusted Cash Flow Statement	HY16 Cash Flow Statement Adjustments 1) HY16 Adjusted Cash Flow Statement HY15 Cash Flow Statement Adjustments 2) HY15 Adjusted Cash Flow Statement
$'m
EBITDA	29.3 2.8 32.1 14.7 3.6 18.3
Non-cash adjustments	2.8 (2.8) 0.0 2.2 (2.0) 0.2
Change in working capital	(2.3)	(2.3) 0.7	0.7
Income taxes paid	(2.8)	(2.8) (1.3)	(1.3)
Net interest paid	(0.8)	(0.8) (0.2)	(0.2)
Operating capital expenditure	(2.0)	(2.0) (0.5)	(0.5)
Operating cash flow (free cash flow)	24.2	24.2 15.6	17.2
Dividends paid (net DRP)	(13.3)	(13.3) (22.1)	(22.1)
Undistributed free cash flow	10.9	10.9 (6.5)	(4.9)
Share placement (net of costs)	108.5	108.5 0.0	0.0
Acquisitions, investments & intangibles	(37.4)	(37.4) 0.0	0.0
Net borrowing proceeds/(repayments)	(10.4)	(10.4) 7.2	7.2
Net cash flow	71.6 0.0 71.6 0.7 1.6 2.3

Notes

1) Acquisition earn out shares repricing, acquisition balances adjustments and the expense of equity-settled long-term incentive plan rights issues .

2) Adjustments for IPO expenses, recognition of leave balances, pre-reconstruction earnings of S&F Lawyers, and the expense of equity-settled longterm incentive plan rights issues; and notional adjustments to reflect changes to principal's remuneration and public company costs .

Consolidated Balance Sheets

	Reported Balance Sheet as at 31 Dec 2015 Reported Balance Sheet as at 30 Jun 2015 Reported Balance Sheet as at 31 Dec 2014
$'m
Cash and cash equivalents	77.0 5.4 4.8
Trade and other receivables	33.4 27.4 20.7
Other current assets	3.9 2.1 1.1
Total current assets	114.3 34.9 26.6
PP&E	5.0 2.1 1.7
Acquisition intangibles & goodwill	133.6 33.6 0.0
Deferred tax asset	2.4 2.0 1.7
Other non-current assets	0.0 0.0 0.0
Total assets	255.4 72.6 30.0
Trade and other payables	14.4 10.0 7.8
Loans and borrowings	0.0 10.5 13.3
Tax provisions	10.8 5.7 3.8
Deferred acquisition liability	19.1 5.0 0.0
Other liabilities	6.4 6.2 4.8
Total liabilites	50.8 37.4 **29.7 **
Net assets	204.6 35.2 0.3
Equity
Issued capital	201.5 35.3 12.5
Reserves	(13.5) (14.6) (14.8)
Retained profits	16.6 14.5 2.6
Total equity	204.6 35.2 0.3

Strong balance sheet

• $77m cash

• No bank borrowings

• Undrawn bank facilities of $97.6m available

• Goodwill increase from acquisitions of Pizzeys & Callinans

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

Earnings Currency Sensitivity[ 1) ]

Revenue net of Recoverable Expenses

Operating Expenses

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SGD
EUR
5%
6% SGD
AUD
29%
30%
Other
1% AUD
USD 71%
58%
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Currency 2)	+/- 5%
USD	3.3m
SGD	(0.3)m
EUR	0.3m

Notes

1) Based on current IPH Group adjusted earnings and HY16 average FX rates, with acquisitions annualised 2) Annualised IPH EBITDA sensitivity based on 5% appreciation (+) or depreciation (-) of foreign currency against AUD

5. FY16 Strategic Initiatives

Future Growth Initiatives

IPH continues to pursue its growth objectives. Goal – “To be the leading IP group in secondary markets”.

1 2 3 4	Asian Growth	 Maintain and grow patent market share in Singapore  Open offices and acquire well established IP firms in other Asian countries  Increase patent market share in other Asian countries  Grow trade mark practice business in Asia  Leveraging new acquisitions to increase filings in Asia	Short Term
	Efficiency Gains	 Continued investment in IT and case management systems to drive efficiency – support staff and occupancy costs reductions  IPH cost synergy – combining back office services	Short / Medium Term
	Acquisitions	 Strong pipeline of potential acquisitions both in Australia and secondary markets	Short / Medium Term
	Adjacent Businesses	 Grow the Practice Insight data analysis and applications software business  Opportunity in the renewals area	Medium Term

6. Appendices

IPH Limited - Overview

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

 S&F

• Established in 1887

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

• 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 and Shanghai

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

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

• 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.

Business Snapshot

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

Revenue split by service line and location

Revenue split by clients (FY15)[2 ]

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Asia
Australia
Patents & Trade
Legal Patents & Designs
Designs Marks
HY16 48% 10% 2% 39%
Revenue [1 ]
Largest Client 2.5% 2-5 clients 5.6%
6-20 clients 9.8% Other 82.0%
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Notes:

1. Revenue is based on annualised service charges including FAK, Pizzeys & Callinans – excludes expense recoveries

2. Based on top 20 clients in FY15. Revenue is based on group service charges – excludes expense recoveries

IPH Limited – Group Structure (simplified)

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IPH Limited
(Australia)
Practice Insight Spruson & Ferguson IPH Services Fisher Adams Kelly Pizzeys
Callinans
(Australia and Germany) (Australia) (Australia) (Australia)
(Australia)
Spruson & Ferguson Lawyers Spruson & Ferguson (M) Spruson & Ferguson (Asia) Pizzeys (Asia)
(Australia) (Malaysia) (Singapore) (Singapore)
Spruson & Ferguson (Asia)
Representative Office
(Shanghai, China)
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IPH Limited – 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 Malcolm Mitchell - CFO

Ordinary Shares on Issue	Number %
Free float Escrowed ** Total Top 20 Balance	97,602,816 52% 88,726,874 48%
	186,329,690100%
	81,713,255 44% 104,616,435 56%
	186,329,690100%

** Held by Principals of IPH Group Companies

IPH’s Regional Hub Strategy

• Key to IPH’s strategy is its operation of IP service hubs along with local offices in key countries.

• IPH operates two key IP hub (Australia and Singapore) – “one-stop” service for clients co-ordinating IP applications in 25 countries across Asia Pacific

• IPH’s hub strategy has established a strong position in Asia Pacific which provides clients with

• The services of a tier 1 IP firm

• Best of breed patent attorneys

• Efficiency and cost reduction by dealing with one firm for multiple countries

• Long standing and vetted relationships with agents in Asian countries

Stages of IP Lifecycle

IPH generates revenue from all stages of the IP lifecycle

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Timelines
Up to 31 months Generally 2-5 years Up to 20 years
Patents
Renewal /
Phase Filing Prosecution Management /
Enforcement
Timelines
Up to 6 months Up to 21 months Indefinite
Trade Marks
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Investment Highlights

	Long track record 1	IPH Limited (“IPH”) is the holding company of Spruson & Ferguson (“S&F”), Fisher Adams Kelly Callinans (“FAKC”), Pizzeys and Practice Insight (“PI”) S&F, established in 1887, is a leading Intellectual Property (“IP”) firm in Asia Pacific S&F is top-tier firm with a strong reputation and brand 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
	Strong business model	IPH operates as an IP service hub, offering a “one-stop” service into 25 countries in Asia Pacific Utilisation of local agents provides an efficient, professional and reliable business model Leading IT and case management systems which ensure efficient operations
	Market leading position	Australia (# 1 by patent applications filed1and # 1 by trade marks applications filed2) Singapore (# 1 by patent applications filed3)
	Positive IP sector dynamics 4	IP is often fundamental to the operations and value of many of the world’s leading companies IPH believes IP protection is becoming increasingly important in the higher growth Asian region 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
	Top tier, diverse client base	Range of blue chip multinationals domiciled in the USA, Europe and Japan Highly diverse revenues, largest client 2.5%4 Most of the top 20 clients have been clients for 25+ years

Notes:

1. Source: IP Australia – By number of patent applications filed at the Australian Patent Office in HY16

2. Source: IP Australia – Top 50 Agents only - by number of trade mark applications filed at the Australian Trade Mark Office in HY16

3. Source: IPOS – By number of patent applications filed at the Singapore Patent Office in CYTD15

4. FY15 Service Charge Revenue

Investment Highlights (cont’d)

• 6 Experienced Board,  Strong board with complementary skill sets management &  Long standing, experienced management team personnel  Highly qualified and experienced professional IP team

7

• High barriers to  Entrenched market position, large pipeline of work, established brand name, track record, hub strategy and entry efficient operating platform provide significant competitive advantages

• 8 Attractive financial  Track record of revenue and earnings growth profile and high  Strong margins, low overheads, low WIP, low capital requirements and low gearing generates strong cashflow cash conversion and the ability to offer a high dividend payout ratio

  • Asia – increase market share, re-commence trade mark practice

9 Asia – increase market share, re-commence trade mark practice Substantial  Further acquisitions – ability to consolidate fragmented markets in Australia and Asia growth  Adjacent businesses opportunities

• Other secondary markets – geographic expansion

• 10  Completed four acquisitions within 10 months from IPO.

• Proven acquisitions  Leveraging experience in identifying, valuing and executing strategic and value accretive acquisitions for

• track record future opportunities.