Tribal Group plc · LSE:TRB
Tribal — FY2021 Earnings Presentation
32 slides from Tribal's earnings presentation, March 2022
Slide 1: Tribal Group – Final Results 2021
OUR VISION: TO EMPOWER THE WORLD OF EDUCATION Tribal Group – Final Results 2021
Slide 2: Agenda
AGENDA ABOUT TRIBAL OVERVIEW & HIGHLIGHTS FINANCIAL PERFORMANCE Q&A APPENDIX OUR GOAL: To be a pure-play education technology (EdTech) SaaS business, expanding to a global reach 2 Tribal Group - Final Results 2021
Slide 3: Tribal at a glance
Overview & Highlights Financial Performance Strategy Update Appendix Tribal at a glance WHAT WE DO SITS:Vision WHO WE ARE WHO WE HELP ebs We strive to research, develop Student Information Solutions to both Higher & Further Education Over 500 institutions Maytas and deliver the products, across the
Slide 4: Overview & Highlights
OVERVIEW & HIGHLIGHTS MARK PICKETT, CHIEF EXECUTIVE OFFICER
Slide 5: Highlights: Building a global software company
Overview & Highlights Financial Performance Strategy Update Appendix Highlights: Building a global software company EXPANDED CUSTOMER EXPANDED EXPANDED SHARE OF WALLET ADDRESSABLE MARKET GEOGRAPHICAL REACH ORGANIC GROWTH SELECT M&A EDGE PRODUCT LAUNCHES Strong sales performance across our Two small
Slide 6: Strategy in action: High level of new wins
Overview & Highlights Financial Performance Strategy Update Appendix Strategy in action: High level of new wins STUDENT INFORMATION SYSTEMS Edge SITS:Vision (in the cloud) Tribal Cloud (SITS cloud migrations) Other Tribal SIS (ebs & Maytas) EDUCATION SERVICES 6 Tribal Group - Final Results 2021
Slide 7: Financial Performance
FINANCIAL PERFORMANCE DIANE MCINTYRE, CHIEF FINANCIAL OFFICER
Slide 8: Financial Summary: Considerable progress against KPIs
Overview & Highlights Financial Performance Strategy Update Appendix Financial Summary: Considerable progress against KPIs +11% +9% 104% Revenue up 11% Adjusted EBITDA up 9% Cash conversion up 7ppt £73.4m to £81.1m £15.2m to £16.6m 97% to 104% +7% +1% +33% ARR up 7% Statutory profit before tax Inves
Slide 9: Financial Highlights: Business returns to growth
Overview & Highlights Financial Performance Strategy Update Appendix Financial Highlights: Business returns to growth ARR REVENUE ADJUSTED EBITDA Record high ARR Return to revenue growth Ongoing growth +7% +11% +9% – ARR continues to grow driven by Edge – Revenue growth for the first time in – Growt
Slide 10: Segments: Strong performance across the business
Overview & Highlights Financial Performance Strategy Update Appendix Segments: Strong performance across the business SIS ES TOTAL SEGMENT Revenues and Operating Margin % Revenues and Operating Margin % Operating Margin and Operating Margin % +12% +3% +4% – Cloud and Edge driving increase – Inspecti
Slide 11: SIS: Clarity on growth trajectory by product area
Overview & Highlights Financial Performance Strategy Update Appendix SIS: Clarity on growth trajectory by product area PRODUCT AREAS REVENUE TYPE PRODUCTS TRAJECTORY Foundation Support and Maintenance fees Decline as customers move to a subscription model Software Subscription and SITS, ebs, Maytas,
Slide 12: SIS: SaaS Metrics demonstrate strategic shift
Overview & Highlights Financial Performance Strategy Update Appendix SIS: SAAS Metrics demonstrate strategic shift STARTING - LOST REVENUE + INCREASED REVENUES + REVENUES FROM NEW FORWARD LOOKING POSITION STREAMS FROM FROM EXISTING CUSTOMERS ARR METRIC EXISTING CUSTOMERS CUSTOMERS RECURRING REVENUE
Slide 13: SIS ARR: High growth in Cloud and Edge
Overview & Highlights Financial Performance Strategy Update Appendix SIS ARR: High growth in Cloud and Edge 2021 2020 CHANGE GROWTH CORE PRODUCT ARR HAS INCREASED 12.4% Foundation Support and Maintenance 24.7 25.7 (1.0) (3.9)% Foundational support and maintenance decline driven by two Callista custo
Slide 14: SIS: Building a high quality revenue base
Overview & Highlights Financial Performance Strategy Update Appendix SIS : Building a high quality revenue base 2021 2020 CHANGE GROWTH CORE REVENUE INCREASING BY 17.8% Foundation Support and Cloud - Sydney contract fully delivered with good progress on Kings Maintenance 26.0 25.5 0.5 1.9 % College
Slide 15: Cashflow: Strong cashflow invested in strategic products
Overview & Highlights Financial Performance Strategy Update Appendix Cashflow: Strong cashflow invested in strategic products Tax and Proceeds CASH CONVERSION: 104% from share other items options (2020: 97%) Capitalised product development Net cash from operating activities before tax Acquisitions T
Slide 16: SIS: Strengthened product development teams
Overview & Highlights Financial Performance Strategy Update Appendix SIS: Strengthened product development teams EDGE SALES Chart Title £15.9m Edge ARR £4.5m increasing 138% from the prior year Admissions sold to 4 early adopters for delivery during 2022 EDGE INVESTMENT £11.6m £10.8m £27m capitalise
Slide 17: Strategy Update
STRATEGY UPDATE MARK PICKETT, CHIEF EXECUTIVE OFFICER
Slide 18: Objectives
Overview & Highlights Financial Performance Strategy Update Appendix Objectives 1. INCREASE ARR 2. IMPROVE EBITDA Double the Annual Recurring EBITDA margin at low-30s% Revenue (being 15% CAGR) EBITDA at end 2020: 20% ARR at end 2020: £47.5m Multi-tenanted, SaaS solution TRIBAL 2025: Includes bolt-on
Slide 19: Market and Drivers for long term growth
Overview & Highlights Financial Performance Strategy Update Appendix Market and Drivers for long term growth UNIVERSITY UNIVERSITY TRIBAL CHALLENGE SOLUTION OPPORTUNITY Public tender for cloud- Tribal:Cloud, providing TRIBAL SAAS Legacy internal SMS unfit-for SOLUTIONS based commercial SMS, existing
Slide 20: The Goal - A modern student information solution
The Goal - A modern student information solution USER INTERFACES Engage (Mobile App) Student Portal Staff Portal Voice ENGAGEMENT SOLUTIONS Marketing & Student Wellbeing Business Apprenticeship Alumni Scheduling & Curriculum Recruitment & Support Engagement Management Management Timetabling Planning
Slide 21: The Goal - A modern student information solution
The Goal - A modern student information solution Customer Pathway to Adoption: from SITS on premise, through FOCUS PRODUCT Tribal:Cloud to Edge SOLUTIONS FOR COMPLES NEW MARKETS UNIVERSITIES ADOPT EDGE SIS Extend global SIMPLE market reach, UNIVERSITIES Value add including USA ADOPT EDGE SIS solutio
Slide 22: Tribal People at a Glance
Overview & Highlights Financial Performance Strategy Update Appendix Tribal People at a Glance (as at 31 Dec 2021) WORKFORCE SHIFTS 982 Total Workforce up from 879 2020 PEOPLE BASED IN 10 COUNTRIES YE 57% growth in Cloud talent, due to increased demand in service delivery x4 headcount growth in our
Slide 23: Environmental Social Governance (ESG)
Overview & Highlights Financial Performance Strategy Update Appendix Environmental Social Governance (ESG) Created a formal ESG ENVIRONMENTAL SOCIAL GOVERNANCE Committee in 2021, which is chaired by Nigel INITIATIVE Halkes REDUCED DIVERSITY COMPLIANCE Focus on a wide range CARBON EMISSIONS & WELLBEI
Slide 24: Outlook
Overview & Highlights Financial Performance Strategy Update Appendix Outlook GROWING ARR EXPANDING MARKET OPPORTUNITY Continuing progress towards our 2025 goal of increasing ARR on New products provide upsell and average by 15% per annum geographic expansion opportunity SUMMARY & Online and collabor
Slide 25: Tribal
TRIBAL
Slide 26: Appendix
~ % OS & o = rRPme S| - >. APPENDIX TRIBAL
Slide 27: Tribal Leadership Team
Overview & Highlights Financial Performance Strategy Update Appendix Tribal Leadership Team RICHARD LAST MARK PICKETT MARK WILSON MIKE COPE CHLOE PAYNE CHAIR CHIEF EXECUTIVE OFFICER (CEO) CHIEF OPERATING OFFICER (COO) CHIEF TECHNOLOGY OFFICER (CTO) HR DIRECTOR ROGER MCDOWELL NIGEL HALKES DIANE MCINT
Slide 28: Financial Definitions
Overview & Highlights Financial Performance Strategy Update Appendix Financial Definitions TERM DEFINITION Constant Currency 2020 reported results restated to “constant currency” using 2021 rates to exclude foreign currency impact. Operating profit of continuing operations which excludes "Other Item
Slide 29: Tribal portfolio of products
Overview & Highlights Financial Performance Strategy Update Appendix Tribal portfolio of products SITS:Vision ebs Maytas Student Student Admissions Submissions For Higher For further and For Recruitment Support & Education Vocational Apprenticeships & Marketing Wellbeing Education and Traineeships C
Slide 30: Segment Reallocation
Overview & Highlights Financial Performance Strategy Update Appendix Segment Reallocation Amounts relating to Asset Management, Software Solutions and Information Managed Services, which were previously in Education Services, have been reallocated as offerings more closely align to the Software segm
Slide 31: Mapping of Revenue Streams
Overview & Highlights Financial Performance Strategy Update Appendix Mapping of Revenue Streams The table below highlights how previously reported revenue streams have been updated to show more detail and moved to provide clarity. Foundation products include SITS, Callista, ebs, Maytas and SID. Edge
Slide 32: www.tribalgroup.com
0330 016 4000 [email protected] www.tribalgroup.com 32 Tribal Group - Final Results 2021