Tribal Group plc · LSE:TRB
Tribal — H1 2022 Earnings Presentation
26 slides from Tribal's earnings presentation, August 2022
Slide 1: Tribal Group – Half Year Results 2022
OUR VISION: TO EMPOWER THE WORLD OF EDUCATION Tribal Group – Half Year Results 2022
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 - Half Year Results 2022
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 NEW PRODUCT SALES NEW GEOGRAPHIES Strong sales performance across our Cross-sel
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 EDUCATION SERVICES Edge Tribal Cloud (SITS cloud migrations) * SITS:Vision Other Tribal (in the cloud) SIS (ebs & Maytas) * * 6 * Contracts signed July/August 2
Slide 7: Financial Performance
FINANCIAL PERFORMANCE DIANE MCINTYRE, CHIEF FINANCIAL OFFICER
Slide 8: Financial Summary: Continued positive sales momentum
Overview & Highlights Financial Performance Strategy Update Appendix Financial Summary: Continued positive sales momentum £42.4M £53.7M £186.5M Revenue up 8% from £39.4m ARR up 5% in 6 months from Committed income up 6% from £51.3m £176.5m £7.1M £3.1M 0.7p Adjusted EBITDA down 22% Statutory profit b
Slide 9: Segments: Cloud and Edge sales driving increase in revenue
Overview & Highlights Financial Performance Strategy Update Appendix Segments: Cloud and Edge sales driving increase in revenue SIS ES TOTAL SEGMENT Revenues and Operating Margin % Revenues and Operating Margin % Operating Margin and Operating Margin % +9% +2% -10% – Cloud and Edge driving increase
Slide 10: SIS ARR: High growth in Cloud and Edge
Overview & Highlights Financial Performance Strategy Update Appendix SIS ARR: High growth in Cloud and Edge 2022 H1 2021 FY CHANGE GROWTH CORE PRODUCT ARR HAS INCREASED 6.2% Foundation Support and Maintenance 25.1 25.1 - 0.2% Foundational support and maintenance remained flat due to inflationary inc
Slide 11: SIS: Transition to a high quality revenue base
Overview & Highlights Financial Performance Strategy Update Appendix SIS : Transition to a high quality revenue base 2022 H1 2021 H1 CHANGE GROWTH CORE REVENUE INCREASING BY 13.8% Foundation Support and Cloud – University of Sydney, Kings College London, Universiti Maintenance 12.7 12.9 (0.2) (1.3)
Slide 12: Cashflow: Working Capital impacted by major contract implementation
Overview & Highlights Financial Performance Strategy Update Appendix Cashflow: Working Capital impacted by major contract implementation Net Debt: £4.8m (2021 H1: £4.3m Net Cash) Net cash from operating activities before tax * OPENING Tax and CASH other items CLOSING * CASH TRADING CASH Capitalised
Slide 13: SIS: Increased investment in product development
Overview & Highlights Financial Performance Strategy Update Appendix SIS: Increased investment in product development £7.6m EDGE SALES Chart Title Edge ARR £5.0m increasing 11% from the prior year £6.8m Strong expansion following Semestry acquisition £5.3m EDGE INVESTMENT £33.4m capitalised to date
Slide 14: Strategy Update
STRATEGY UPDATE MARK PICKETT, CHIEF EXECUTIVE OFFICER
Slide 15: 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 New SITS opportunities; TRIBAL SAAS Public tender for cloud- Legacy internal SMS unfit-for Tribal:Cloud, providing SOLUTIONS based
Slide 16: Extending Geographic Reach – South East Asia
Overview & Highlights Financial Performance Strategy Update Appendix Extending Geographic Reach – South East Asia NANYANG TECHNOLOGICAL UNIVERSITY SOUTH EAST ASIA OPPORTUNITIES • Ambitious, aspirational university • Significant number of large opportunities expected to come to market over coming 3-
Slide 17: Tribal Product Investment Strategy update
Overview & Highlights Financial Performance Strategy Update Appendix Tribal Product Investment Strategy update STUDENT MANAGEMENT EDGE SAAS PRODUCTS CORE ADMISSIONS FUTURE EDGE SYSTEMS MODULE INVESTMENT -10% – Strong SITS – Engage mobile: – Improves Student – Focus on driving sales opportunities > 5
Slide 18: Leadership and ESG Update
Overview & Highlights Financial Performance Strategy Update Appendix Leadership and ESG Update EXECUTIVE TEAM CHANGES WORKFORCE SHIFTS 986 Total Workforce (982 as at 31 Dec 21) Continued expansion of Global Delivery Centre Inflationary wage pressures DIVERSITY & WELLBEING Improved year end position
Slide 19: Outlook
Overview & Highlights Financial Performance Strategy Update Appendix Outlook GROWING ARR EXPANDING MARKET OPPORTUNITY Continuing progress towards our 2025 goal of increasing ARR on Significant opportunity for average by 15% per annum geographic expansion in South East Asia SUMMARY & ARR growth dampe
Slide 20: Tribal
TRIBAL
Slide 21: Appendix
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Slide 22: 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 23: Financial Definitions
Overview & Highlights Financial Performance Strategy Update Appendix Financial Definitions TERM DEFINITION Constant Currency 2021 reported results restated to “constant currency” using 2022 rates to exclude foreign currency impact. Operating profit of continuing operations which excludes "Other Item
Slide 24: Prior Year Segment Reallocation
Overview & Highlights Financial Performance Strategy Update Appendix Prior Year 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 So
Slide 25: 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 26: www.tribalgroup.com
0330 016 4000 [email protected] www.tribalgroup.com 26 Tribal Group - Half Year Results 2022