Tribal Group plc · LSE:TRB
Tribal — Investor Day (June 2021)
59 slides from Tribal's investor day presentation, Jun 17, 2021
Slide 1: Capital Markets Day 17 June 2021
Capital Markets Day 17 June 2021
Slide 2: Introduction
Introduction Mark Pickett, CEO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 2
Slide 3: Tribal Leadership Team
Tribal Leadership Team Mark Pickett Mark Wilson Mike Cope Richard Last Chloe Payne Chief Executive Officer Chief Operating Officer Chief Technology Chair HR Director (CEO) (COO) Officer (CTO) Roger McDowell, Diane McIntyre Peter Croft Janet Tomlinson Nigel Halkes, Mike Beech Senior Independent Chief
Slide 4: Agenda
Agenda Topic Speaker Introduction to Tribal and our market Mark Pickett, CEO The Customer Perspective Mark Wilson, COO EdTech as-a-Service Showcase Mike Beech, Marketing Director Tribal Edge Investment Case Mike Cope, CTO Q&A Tribal’s Five-year Objectives Mark Pickett, CEO Our Opportunity for Growth
Slide 5: Tribal Overview
Market-leading provider of Student Information Tribal Overview Solutions to both Higher & Further Education in UK, Australia, New Zealand, Singapore and Malaysia. Over 500 institutions empowered by Tribal’s Student Information Solutions Global provider of Quality Assurance and Benchmarking services
Slide 6: Our vision and goal
Our vision: Our goal: To empower the world To be a pure-play of education. Education Technology We strive to research, develop and deliver (EdTech) SaaS business, the products, services and cloud solutions needed by educational institutions across expanding to a global the world to support their pri
Slide 7: What has driven our business to date
What has driven our business to date UK Higher Education market Australian Higher Education (source: HESA) (source: Universities Australia) • Total income for sector: £38.1bn • 1.5m Higher Education university students • 1.2% of UK GDP • International HE students doubled since 2001 • Supports 940,00
Slide 8: What is driving our business now
What is driving our business now “ Our new VC is like a CEO…focus on operational excellence…holding us to commercial standards. We have planned significant growth and it is strategically important to be seen as a progressive player, a pack leader. Our current system is inefficient and takes all our
Slide 9: Customer Perspective
Customer Perspective Mark Wilson, COO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 9
Slide 10: What are the challenges facing the education sector?
What are the challenges facing the education sector? Student recruitment and retention is a key driver of financial stability and the key enabler of growth Delivering an excellent student experience has become a critical strategy for the sector Student expectations have changed. Young people today g
Slide 11: Customer panel
Customer panel Thomas Veit Caroline Hungerford Zubair Hanslot Director of IT Director, Provost External Relations Digital Engagement • UK top 30 University • Top 25 World Ranking (QS) • ‘Local’ recruiter university • 13k Students • Prestigious Australian University • 6k Students • Looking to grow re
Slide 12: Customer video
Customer video here 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 12
Slide 13: Customer Challenges - Summary
Customer Challenges - Summary Attracting and recruiting the right students is vitally important • It’s a competitive market and recruitment is an expensive process • Student fees are the key driver of financial stability and growth Delivering a great student experience is crucial • Supporting Studen
Slide 14: EdTech-as-a-Service Showcase
EdTech-as-a-Service Showcase Mike Beech, Marketing Director 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 14
Slide 15: Tribal Edge
Tribal Edge A transformative Student Information Solution delivering staff and students the solutions and tools they need to succeed in the evolving world of education. Student Focused • Supporting today’s digital student • Accessible and multi-channel Efficient • Leading practice and optimised proc
Slide 16: The Tribal Edge Ecosystem
The Tribal Edge Ecosystem Tribal Edge Recruitment & Student Admissions Administration Partner Solutions • Student Marketing & Recruitment • Curriculum • Student Management Marketing & Recruitment • Admissions Academic • Scheduling • Tribal Admissions& Timetabling Open API Framework • International A
Slide 17: Product demo video
Product demo video here 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 17
Slide 18: Tribal Edge
Tribal Edge A transformative Student Information Solution delivering staff and students the solutions and tools they need to succeed in the evolving world of education. • Enabling institutions to deliver an Student exceptional student experience Focused • Anytime, anywhere, any device • Easier to us
Slide 19: Tribal Edge Technology and Investment Strategy
Tribal Edge Technology and Investment Strategy Mike Cope, CTO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 19
Slide 20: Edge Investment and Technology Strategy
Edge Investment and Technology Strategy Respond to market needs Opportunity to create next gen products A critical integration platform Making it easy for customers to transform Defendable competitive position 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 20
Slide 21: Edge Investment and Technology Strategy
Edge Investment and Technology Strategy Respond to market needs • Successful but mature existing products need to change to meet evolving market Opportunity to create next gen expectations products A critical integration platform Making it easy for customers to transform Defendable competitive posit
Slide 22: Edge Investment and Technology Strategy
Edge Investment and Technology Strategy Respond to market needs • Technology inflexion point opens up opportunity to create next gen products Opportunity to create next gen products • Meeting market cloud expectations and delivers richer functionality A critical integration platform • Unencumbered w
Slide 23: Edge Investment and Technology Strategy
Edge Investment and Technology Strategy Respond to market needs Opportunity to create next gen products • An integration platform as well as a A critical integration platform development platform • Integrating partner products, such as Making it easy for customers to Microsoft Dynamics transform • I
Slide 24: Edge Investment and Technology Strategy
Edge Investment and Technology Strategy Respond to market needs Opportunity to create next gen products A critical integration platform Making it easy for customers to • Align with the increasing expectation for transform fast, easy implementation and efficient use • Designed to enable our customers
Slide 25: Edge Investment and Technology Strategy
Edge Investment and Technology Strategy Respond to market needs Opportunity to create next gen products A critical integration platform Making it easy for customers to • Shape to successfully compete transform • New entrants aiming to deliver best of breed products Defendable competitive position •
Slide 26: Edge Technology Platform
Edge Technology Platform + Strong technology Reaping rewards from + Deep understanding Edge reflects leading current investment in + Market insight practice Tribal Edge = Powerful combination 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 26
Slide 27: Edge Technology Platform
Edge Technology Platform + Strong technology Reaping rewards from + Deep understanding Edge reflects leading current investment in + Market insight practice Tribal Edge = Powerful combination • Fully cloud native multi-tenanted development • Full continuous integration/continuous deployment • Micro-
Slide 28: Edge Technology Platform
Edge Technology Platform + Strong technology Reaping rewards from + Deep understanding Edge reflects leading current investment in + Market insight practice Tribal Edge = Powerful combination 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 28
Slide 29: Edge Technology Platform
Edge Technology Platform + Strong technology Reaping rewards from + Deep understanding Edge reflects leading current investment in + Market insight practice Tribal Edge = Powerful combination 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 29
Slide 30: Delivering the core on Edge
Delivering the core on Edge 2021 2022 2023 2024 2025 Tribal Edge Platform Tribal Submissions Tribal Admissions Tribal Academic Model & Curriculum Planning Tribal Funding & Finance Tribal Learning & Studying Tribal Assessment & Awards 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 30
Slide 31: Delivery is underway
Delivery is underway 2021 2022 H1 H2 H1 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN DELIVERED (V1.0) Submissions (TCSI) CORE DELIVERED (V1.1) SEPT 2021 (V1.2) MARCH 2022 (1.3) Admissions (Core) Admissions (UK) Admissions (AU) BROADER ECOSYSTEM DELIVERED (V0.8 Beta) SEPT
Slide 32: Q&A
Q&A We are happy to take questions. tribalgroup.com | @tribalgroup 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 32
Slide 33: Tribal Five-year Objectives
Tribal Five-year Objectives Mark Pickett, CEO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 33
Slide 34: Tribal 2025: Five-year Objectives
1. Increase ARR 2. Improve EBITDA Tribal 2025: Double the Annual Recurring EBITDA margin at low-30s% Revenue (being 15% CAGR) Five-year • EBITDA at end 2020: 20% • ARR at end 2020: £47.5m • Multi-tenanted, SaaS solution Objectives • Includes bolt-on acquisitions • Edge fully rolled out will drive •
Slide 35: Our Opportunity for Growth
Our Opportunity for Growth Mark Wilson, COO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 35
Slide 36: Our Opportunity for Growth - context
Our Opportunity for Growth - context With our traditional SMS systems With our productised solution sales • Market barriers are high - Localisation and • Simplifies localisation and avoids the compliance can be expensive need for statutory compliance • Sales cycles can be protracted • Sales & Implem
Slide 37: Geographic growth potential
Geographic growth potential (Higher Education student numbers) North America Europe SE Asia Philippines 3.6m Singapore Rest of SE Asia Malaysia Canada – 2.2m 7.4m 0.86m Current UK Aus NZ USA – 19.8m EU-27 – 17.5m 2.4m 1.5m 0.4m Tribal Share (Students) 50% 23% 36% 17 June 2021 © Tribal Education Ltd.
Slide 38: ARR growth and addressable markets
ARR growth and addressable markets New Tribal Edge Proactive selling into Tribal Edge Geographical target geographies è modules expansion è modules as they New become available Customers Reactive selling to Current Selling into new New Tribal Edge institutions with è Tribal SMS geographies è modules
Slide 39: ARR growth and addressable markets
ARR growth and addressable markets New Tribal Edge Proactive selling into Tribal Edge Geographical target geographies è modules expansion è modules as they New become available Customers Reactive selling to Current Selling into new New Tribal Edge institutions with è Tribal SMS geographies è modules
Slide 40: ARR growth and addressable markets
ARR growth and addressable markets New Tribal Edge Proactive selling into Tribal Edge Geographical target geographies è modules expansion è modules as they New become available Customers Reactive selling to Current Selling into new New Tribal Edge institutions with è Tribal SMS geographies è modules
Slide 41: ARR growth and addressable markets
ARR growth and addressable markets New Tribal Edge Proactive selling into Tribal Edge Geographical target geographies è modules expansion è modules as they New become available Customers Reactive selling to Current Selling into new New Tribal Edge institutions with è Tribal SMS geographies è modules
Slide 42: ARR growth and addressable markets
ARR growth and addressable markets New Tribal Edge Proactive selling into Tribal Edge Geographical target geographies è modules expansion è modules as they New become available Customers Reactive selling to Current Selling into new New Tribal Edge institutions with è Tribal SMS geographies è modules
Slide 43: Our People
Our People Chloe Payne, HR Director 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 43
Slide 44: Together, we empower education
Together, we empower education 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 44
Slide 45: People video
People video here 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 45
Slide 46: A fast paced, dynamic organisation focussed on the future
A fast paced, dynamic organisation focussed on the future We have big ambitions, but our people are deeply committed with the drive to succeed Our people make all the difference. We nurture and empower them to achieve great things. 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 46
Slide 47: Overall Engagement
Overall TRIBAL BENCHMARK Engagement Capital 63% 60% TRIBAL BENCHMARK Past Events 73% 69% TRIBAL BENCHMARK Future Expectations 64% 57% * Benchmarked against Gartner Technology Survey 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 47
Slide 48: Our evolving operating model
Our evolving operating model New Global Delivery Centre in KL, Malaysia Investment in Business Solution Architecture Organisational alignment to our EdTech as a service business model Development of our Service Delivery model for Tribal: Cloud +35% h/c expansion in our Shared Service Development Cen
Slide 49: Our Evolving Business Model
Our Evolving Business Model Diane McIntyre, CFO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 49
Slide 50: Evolving business model
Evolving business model 2016 2017 2018 2019 2020 2021 2025 Moved to AIM Started Edge Launch of Launch of Tribal Launch of Tribal Tribal Edge fully investment Tribal Engage Submissions Admissions rolled out and Tribal and Disposal of Acquisition of Cloud Acquisition of Tribal Cloud Acquisition of Syn
Slide 51: Growing Annual Recurring Revenues
Growing Annual Recurring Revenues CAGR 8% Annual Recurring Revenue 83% 80% • Stable support and maintenance revenues £50m 83% 72% 70% • Cloud revenues increasing as existing customers £45m 65% move to public Cloud 61% 60% £40m • Accelerating growth from existing software, ebs 50% and Maytas, with th
Slide 52: Organic ARR growth drivers
Organic ARR growth drivers S&M - As customers move to Edge, and TAFE contract finishes, revenue slowly declines Growth trajectory ~CAGR 10% Existing solutions - ebs and Maytas continue steady trajectory Tribal Cloud services growth - Significant growth driven through existing SITS customers moving t
Slide 53: Transition to Edge for existing customers (Indicative)
Transition to Edge for existing customers (Indicative) SITS Tribal Cloud Tribal Edge ARR = £200k ARR = £500k ARR = £500k Gross Margin ~ 70% Gross Margin ~ 52% Gross Margin ~ 70% £1m £500k £300k £200k £200k Licence S&M Infrastructure S&M Cloud Simple SaaS fee @70% margin @70% margin @40% margin @70%
Slide 54: Focused Investments
Focused Investments Product development spend £m 12 Tribal Edge investment 6.8 6.2 - £17.8m invested to date 10 3.7 - Investment increase to £10m in 2021 & 1.1 continue at similar levels to 2024 8 1.0 7.4 Existing solutions 6 0.4 - Continue to support existing solutions 5.7 efficiently 0.2 0.6 4 4.4
Slide 55: Financial Ambition
Financial Ambition 2020 2025 ARR £47.5m Doubling ARR (including M&A activity) % EBITDA 20.4% Low 30’s Margin • ARR improvement as SAAS strategy takes shape, with an improved SAAS product set, geographic expansion and M&A activity • EBITDA margins improve with increased scale efficiencies and SAAS ma
Slide 56: Summary & Conclusion
Summary & Conclusion Mark Pickett, CEO 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 56
Slide 57: Exciting future
Exciting future Expanding Achievable Clear strategy 3 year plan addressable market objectives • Transform the • Significant opportunity • Upside possible • Sell Tribal:Cloud, company and its to expand our existing products, • ARR growth set to products through Addressable Markets Early Edge Adopters
Slide 58: Q&A
Q&A We are happy to take questions. tribalgroup.com | @tribalgroup 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 58
Slide 59: Summary
Summary • Key benefits 0330 016 4000 [email protected] www.tribalgroup.com 17 June 2021 © Tribal Education Ltd. 2021 Capital Markets Day 59