Tribal Group Plc · LSE:TRB
Tribal — H1 2016 Earnings Presentation
50 slides from Tribal's earnings presentation, 2016
Slide 1: Rebuilding a Market Leader
working as one Rebuilding a Market Leader 2016 H1 Roadshow
Slide 2: Contents
2 Contents 1 2 3 4 Business Financial Business Q&A Review Results Direction Ian Bowles Mark Pickett Ian Bowles CEO CFO CEO
Slide 3: Business Review
working as one Business Review CEO Update Ian Bowles CEO
Slide 4: Background – February 2016
4 Background – February 2016 • Historic Buy and Build • No clear accountability or strategy with no integration responsibility or economies of scale • No clear visibility of • Multiple fiefdoms based on performance products • Poor contract management • No overarching product • Poor forecasting strat
Slide 5: FY16 Priorities
5 FY16 Priorities Restore confidence • Customer, Investor, Team Drive operational efficiencies Reduce operating costs Develop a coherent product strategy Implement a single operating model Create a single go to market strategy Develop cohesive company & solutions messaging
Slide 6: One Team, One Culture, One Objective
working as one FY16 Priorities And to make the strapline a reality One Team One Culture One Objective
Slide 7: Stabilise the customer base
7 FY16 Priorities: Stabilise the customer base Major contract challenges Further Education Higher Education • Queensland TAFE • Bournemouth University • NSW TAFE / Schools • University of Otago • Tasmania TAFE
Slide 8: H1 Operational Highlights
8 H1 Operational Highlights Refreshed executive team New organisational • Execs leaving structure (from July 1st) • Simplified operating model • Interim CEO • Clear lines of responsibility & • Services Director accountability • CFO • New financial reporting • Co. Secretary & Legal Counsel structure
Slide 9: H1 Highlights
9 H1 Highlights Balance Cost Strategic Streamlined Stability sheet reduction direction banking restored and strengthened programme refreshed facilities positive undertaken momentum created
Slide 10: Tribal – My Aspiration
10 Tribal – My Aspiration World Class Software & Services Company International market leading educational management solutions provider Valued by: • Customers • Staff • Shareholders
Slide 11: Financial Results
working as one Financial Results Mark Pickett CFO
Slide 12: CFO Opening Remarks
12 CFO Opening Remarks Initial observations Improving Performance: Factors impacting H1 results Regaining Stability: Strengthened Balance Sheet
Slide 13: Financial Key Points
13 Financial Key Points Six months ended 2016 Change First Half of the year is Transitional. Performance as anticipated 30 June 2016 (£m) Revenue £45.2m (22%) Performance Highlights • Secured a number of new customer wins • Annual Recurring Revenue increased 14% Adjusted operating profit £0.5m (83%)
Slide 14: Income Statement
Income Statement 14 Adjusted Results Six months ended License and S&M increase share of the business, 2016 (£m) 2015 (£m) Change 30 June 2016 improving Gross Margin Revenue 45.2 58.0 (22)% Improved Gross Margin % due to product mix: • PD&CS is higher margin and represents 53% of total revenue (H1 20
Slide 15: Segmental Performance
Segmental Performance 15 All Segments (incl Corporate expenses) Operating Six months ended Revenue Change Change Profit Changes in Segment Profit 30 June 2016 2016 (£m) (£m) (£m) 2016 (£m) PD & CS 23.9 (0.3) 1.5 0.2 Overall Operating profit reduced by £2.0m • QAS operating profit reduced by £1.9m Im
Slide 16: Segmental Performance
Segmental Performance 16 Product Development & Customer Services Six months ended Growth in strategic areas of License and 2016 (£m) 2015 (£m) Change 30 June 2016 Annual Recurring Revenue (S&M) Licence and development fees 4.9 4.2 17% New customer wins in Higher education include: • New Zealand, Mas
Slide 17: H1 2015 vs H1 2016 EBITDA (Adj)
17 5,500 H1 2015 vs H1 2016 EBITDA (Adj) 4,500 £2m 3,500 £0.9m £2.4m Synergy 2,500 £5.2m disposal 1,500 DevCost £1.8m £2m excluding 500 SchoolEdge £2.6m £0.2m £0.2m 2015 Adj 2016 Adj (500) £0.7m Exchange EBITDA EBITDA Rate (1,500) Ofsted inspection movement contract 2015 / 2016
Slide 18: Exceptional Items
Exceptional Items 18 Six months ended Exceptional costs, relating to acquisitions / disposals and 2016 (£m) 2015 (£m) 30 June 2016 Restructuring of the business Profit on sale of Synergy 0.3 - Sale of the Synergy business completed on 1 April 2016 Acquisition related costs (0.4) 0.1 • Profit on disp
Slide 19: Cash Flow
Cash Flow 19 Six months ended 30 June 2016 2016 (£m) 2015 (£m) Improvement of cash position Net cash inflow/(outflow) from operating activities 4.6 (3.2) Investing activities Purchases of property, plant and equipment (0.2) (0.6) Net Operating Cash inflow • Improvement in Working Capital Expenditure
Slide 20: Future Financial Reporting
20 Future Financial Reporting Three lines of Four market segments Greater business transparency Higher Education SMS of operating margin Further Education i-graduate Schools QAS Work Based Learning
Slide 21: Tribal The Road Ahead
Tribal The Road Ahead Ian Bowles CEO
Slide 22: Tribal – My Aspiration
22 Tribal – My Aspiration World Class Software & Services Company International market leading educational management solutions provider Valued by: • Customers • Staff • Shareholders
Slide 23: Tribal Structure
23 Tribal Structure CEO i-graduate & SMS QAS Analytics Cloud Product Implementation Support Operations
Slide 24: Vision, Mission & Values
Vision, Mission & Values
Slide 25: Vision & Mission
25 Vision & Mission To empower the world of education Provide the expertise, software and services required by education and business organisations worldwide to underpin student success
Slide 26: Tribal Values
26 Tribal Values Anticipate Requirements Ownership Listen Respond Customers Keep our promises Customers Honest discussion Rely on Focused Deliver successful each other outcomes Committed Meet needs Long-term relationships Customers Strive to innovate Customers Welcome change Collaborate Deliver opti
Slide 27: HE / FE Market Drivers
TRIBAL HE / FE Market Drivers
Slide 28: Evolving Market Dynamics
28 Evolving Market Dynamics $£€ Need for Drive for Greater Student experience Student Insight efficiency competition is key Across recruitment, Focus spend on Students have Engage, retain, learning, and teaching, research wider choice succeed eventual outcomes and students than ever
Slide 29: Product strategy: Student Information Systems
Product strategy: Student Information Systems
Slide 30: The Student's Life-long Learning Journey
30 The Student’s Life-long Learning Journey School Further Education Higher Education Work Based Learning
Slide 31: Underpinned by Tribal Student Management Systems
31 Underpinned by Tribal Student Management Systems School Further Education Higher Education Work Based Learning
Slide 32: Improve Return on Investment
32 Improve Return on Investment School Further Education Higher Education Work Based Learning
Slide 33: Improve Return on Investment
33 Improve Return on Investment School FE Modules Further Education Higher HE Modules Education Work Based Learning
Slide 34: Student Information Systems: Adding Value
Student Information Systems 34 Adding Value Student End-to-End Lifecycle Examinations Assessments Learning and Applications Registration Graduation Enquiries Studying Offer Student Support Learning Analytics
Slide 35: Student Information Systems: Adding Value
Student Information Systems 35 Adding Value Student End-to-End Lifecycle Examinations Assessments Learning and Applications Registration Graduation Enquiries Studying Curriculum Management Offer Alumni Management Marketing Student Support CRM Learning Analytics Student Experience Mobile and Single P
Slide 36: Product Strategy - Design Goals
36 Product Strategy - Design Goals Priority 1 Priority 2 Priority 3 Priority 4 Priority 5 Data migration Cloud & Localisable Modular Database from all on-premise to any design independence current deployment language customer systems options configurable workflow engine
Slide 37: Evolution not Revolution
37 Evolution not Designed for Encapsulating Streamlined Revolution Cloud Best Practice to Grow No product sunset Easier and more Using the Build once, - evolve at your cost effective to experience gathered use many – deploy and from a worldwide maximise return on pace manage investment customer base
Slide 38: Tribal Service Bus
38 Accessing Added Value Modules Designed for cloud Student Mobile and Specific Experience Single Portal API Tribal Service Bus Alumni Marketing Current Management SMS Tribal API (on-premise) Learning Analytics Student Support 3rd rdParty Other Curriculum 3 rdParty CRM Products 3 Party APIs Manageme
Slide 39: Tribal Service Bus: Three-Tier Architecture
39 Three-Tier Architecture Designed for cloud SITS SITS API UI HE Modules FE Modules Layer ebs ebs API Tribal Service Bus Callista Callista Tribal REST Business Logic Business API API API (actual code) Logic Layer Campus Campus Relational Analytics Data Layer API Database
Slide 40: Technology Ecosystem
40 Technology Ecosystem Standard Complete Cloud Flexible Technology REST API Architected User Interface Common database Modern interaction Multi-tenant Future-proofed, and business logic layer solution Flexible technology (.NET) Decoupled
Slide 41: Tribal Service Bus
41 Accessing Added Value UI Layer Specific API Tribal Service Bus Current SMS Tribal REST Business Logic Business API Logic Layer API (actual code) Relational Analytics Data Layer Database
Slide 42: Tribal Service Bus: Access to New Core Functions
42 Access to New Core Functions UI Layer Specific API Tribal Service Bus Current SMS Tribal REST Business Logic Business API Logic Layer API (actual code) 3rd Party Relational APIs Analytics Data Layer Products Database
Slide 43: Tribal Service Bus: Access to New Core Functions
43 Access to New Core Functions UI Layer Specific API Tribal Service Bus Current SMS Tribal REST Business Logic Business API Logic Layer API (actual code) 3rd rdParty Relational 3 Party Products APIs Analytics Data Layer Products Database
Slide 44: Tribal Service Bus: Full Evolution
44 Full Evolution and Access to All New Functionality UI Layer Specific … API Tribal Service Bus Current SMS Tribal REST Business Logic Business API Logic Layer API (actual code) 3rd rdParty 3 rdParty Relational 3 Party Products Products APIs Analytics Data Layer Products Database
Slide 45: Product Strategy Advantages
Product Strategy Advantages
Slide 46: For Customers
46 For Customers Easier Faster More More Flexible Cost-Effective To deploy New modules from Add-on through “whole” of Tribal Managed, scalable, Open APIs To manage pay as you grow, investment and can leverage Delivery choice To use Better ROI current assets … at our customers’ pace
Slide 47: For Tribal
47 For Tribal Easier Faster More More Flexible Cost-Effective To deploy Time to Market Add-on modules & To support Better ROI Lower cost of integration with 3rd development & party applications and maintain support through open APIs
Slide 48: Roadmap
48 Roadmap Platform Value-Add First Full First Complete Framework Modules on System “Heritage” New Platform Customer Migration 1 2 3 4 Early 2017 Mid 2017 Mid 2018 2020 èBuild out new modules on new platform
Slide 49: Q&A
TRIBAL working as one
Slide 50: Thank You
working as one Thank You [email protected] @tribalgroup [email protected] linkedin.com/company/tribal +44 (0) 845 123 6001 www.tribalgroup.com