Tribal Group Plc · LSE:TRB
Tribal — H1 2021 Earnings Presentation
29 slides from Tribal's earnings presentation, Aug 12, 2021
Slide 1: Tribal Results Half Year 2021
Mark Pickett, CEO Diane McIntyre, CFO August 2021
Slide 2: Overview and H1 Highlights
Overview and H1 Highlights Mark Pickett, CEO 12 August 2021 Tribal Results Half Year 2021 2
Slide 3: 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 4: Our vision and goal
Our vision: Our goal: To empower the world of To be a pure-play education. Education Technology We strive to research, develop and deliver the (EdTech) SaaS business, products, services and cloud solutions needed by educational institutions across the world to expanding to a global reach support the
Slide 5: Tribal portfolio of Student Management Systems
Tribal portfolio of Student Management Systems SITS:Vision ebs Maytas Callista SchoolEdge For Further and For Apprenticeships For Higher Education For Schools For Higher Education Vocational Education and Traineeships (Australia) (Australia) Tribal Cloud Services 12 August 2021 Tribal Results Half Y
Slide 6: Tribal Edge Product Portfolio
Tribal Edge Product Portfolio Student Scheduling Student Support and Admissions Submissions Engage and Recruitment Welfare (mobile) Timetabling Others in and Marketing (Semestry) development … Tribal Edge Platform Cloud-native SaaS modules delivering exceptional student experience; enhanced performa
Slide 7: Delivering against our 2021 Objectives
Delivering against our 2021 Objectives Increasing number of Higher Education customers and share of wallet • Key new wins Build customer position • Major cloud migrations Won new customers and increased share of wallet in existing customers Increase ARR and improve • ARR increased 5% to £49.6m since
Slide 8: Strategy in action: High level of new wins
Strategy in action: High level of new wins Student Information Systems Education Services Tribal Edge SITS:Vision (in the cloud) Tribal Cloud (SITS cloud migrations) Other Tribal SIS (ebs & Maytas) 12 August 2021 Tribal Results Half Year 2021 8
Slide 9: ARR growth and addressable markets
ARR growth and addressable markets New Tribal Edge Proactive selling into Tribal Edge Geographical target geographies ➔ modules expansion ➔ modules as they New become available Customers Reactive selling to Current Selling into new New Tribal Edge institutions with ➔ Tribal SMS geographies ➔ modules
Slide 10: Environmental Social Governance (ESG)
Environmental Social Governance (ESG) Environmental Social The ESG Committee was established in 2021 and is chaired by Nigel Halkes Governance Agreed a Terms of Reference to ensure Board advocacy, structure and focus of responsible business practices prospered. Continue commitment to deliver work re
Slide 11: Financial Performance
Financial Performance Diane McIntyre, CFO 12 August 2021 Tribal Results Half Year 2021 11
Slide 12: Summary
Summary 6 months ended 30 June 2021 Revenue Adjusted EBITDA margin EBITDA / Margin % £9.4 23% 25% 22% £9.2 21% £39.3m £9.2m £9.0 £8.8 19% £9.2 m 20% £8.6 15% 2021 £39.3m 2021 £9.2m £8.4 £8.6 m * £8.2 £8.3 m 10% 2020 £39.0m 2020 £8.6m £8.0 £7.8 £7.9 m £7.6 5% Up 1% Increased margin to 23% £7.4 £7.2 0
Slide 13: Additional Performance Indicators
Additional Performance Indicators 6 months ended 30 June 2021 Statutory Profit After Tax Annual Recurring Revenue (ARR) Committed Income (Backlog) £4.4m £49.6m £144.3m 2021 £4.4m 2021 £49.6m 2021 £144.3m 2020 £3.8m 2020 £47.2m 2020 £142.6m Up 17% Up 5% Up 1% Net Cash Adjusted Free Cash Flow Earnings
Slide 14: Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) Growing Annual Recurring Revenues CAGR 15% ▪ 5% increase in ARR to £49.6m, over 6 months ▪ Existing software growth, such as new SITS sales with Solent, and price rises in line with inflation ▪ Edge new module sales (Admissions, Student Wellbeing & Support, Marketing &
Slide 15: Segment Results
Segment Results Segment Revenue & Profit Margin % Revenue Profit Margin % 40% 38% 2021 vs. 2020 2021 vs. 2020 2021 vs. 2020 Constant Currency Constant Currency Constant Currency 27% SIS £31.1m 4% £12.0m (1)% 38% 2ppt 20% £29.8m £31.1m ES £8.2m (11)% £2.2m 23% 27% 7ppt Total £39.3m 1% £14.2m 2% 36% -
Slide 16: Student Information Systems
Student Information Systems • Licence increase of £0.8m as a result of new wins in H1, specifically Submissions, Marketing and Recruitment, and Student Information Systems 2020 Growth % Student Support and Wellbeing 2021 HY 2020 HY Constant Constant (£m) Currency Currency License & Development Fees
Slide 17: Cashflow
Cashflow Cash conversion 66% (2020: 68%) Adjusted Free Cash Flow £4.2m (2020: £4.3m) Loan will be fully repaid in August 2021 Trading Investing/Financing Borrowing 12 August 2021 Tribal Results Half Year 2021 17
Slide 18: Product Development
Product Development Tribal Edge investment £6.8m - Submissions fully released - Admissions v1 released, further developments during next year £4.6m - Investment increase to £10m in 2021 & continue at similar levels to 2024 £ 4.5 m £ 3.1 m Tribal Edge sales - ARR increased £1.4m in H1 20 to £3.5m -Su
Slide 19: Summary
Summary Mark Pickett, CEO 12 August 2021 Tribal Results Half Year 2021 19
Slide 20: Summary and H2 Outlook
Growing ARR Expanding Market Opportunity Outlook Summary • Strong sales performance • New products provide upsell and resulting in increased ARR of 5% geographic expansion and since Dec 2020, to £49.6m at opportunity H2 Outlook period end and £50.6m subsequently • Growing pressure on universities to
Slide 21: Q&A
Q&A 12 August 2021 Tribal Results Half Year 2021 21
Slide 22: Contact details
Summary • Key benefits 0330 016 4000 [email protected] www.tribalgroup.com 12 August 2021 Tribal Results Half Year 2021 22
Slide 23: Appendix
Appendix 12 August 2021 Tribal Results Half Year 2021 23
Slide 24: Tribal Leadership Team
Tribal Leadership Team Mark Pickett Mark Wilson Mike Cope Richard Last Chloe Payne Chief Executive Officer Chief Operating Officer Chief Technology Officer Chair HR Director (CEO) (COO) (CTO) Roger McDowell, Diane McIntyre Peter Croft Janet Tomlinson Nigel Halkes, Mike Beech Senior Independent Chief
Slide 25: 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 • ARR at end 2020: £47.5m • EBITDA at end 2020: 20% • Multi-tenanted, SaaS solution Objectives • Includes bolt-on acquisitions • Edge fully rolled out will drive •
Slide 26: 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 27: 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% 12 August 2021 Tribal Results Half Y
Slide 28: Transition to Edge for existing customers
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 29: Financial Definitions
Financial Definitions Term Definition Constant Currency 2020 H1 results restated to “constant currency” using 2021 rates to exclude foreign currency impact. Adjusted EBITDA Operating profit of continuing operations which excludes "Other Items" charges (refer to note 5 in the Half Year Report) and be