Tribal Group Plc · LSE:TRB
Tribal — FY2019 Earnings Presentation
30 slides from Tribal's earnings presentation, March 2020
Slide 1: 2019 Full Year Results
Empowering the world of education 2019 Full Year Results March 2020
Slide 2: 2019 Overview
2019 Overview Growth in core metrics of Annual Recurring Revenue, Adjusted Operating Profit and Margin% Winning greater market-share in Higher and Further Education; strong bookings in Education Services Continuing to drive development of the Tribal Edge products; first Edge module live Dispute with
Slide 3: 2019 Highlights
2019 Highlights Fourth consecutive year of EBITDA growth and positive financial 4 results; net cash of £16.5m Driving improved profitability - Adjusted EBITDA up 9.1%* to £15.4m and Margin improvement of 190bps to 19.6%* Driving quality revenue - Annual Recurring Revenue (ARR) is 69% of software-rel
Slide 4: 2019 Highlights
2019 Highlights EBITDA (As Reported) £m 18.0 25% 16.0 20% 14.0 12.0 15% 10.0 Student Information Systems 8.0 10% Higher Education: won University of Northampton, UK; 6.0 Kaplan and HETI (NSW), Australia Further Education: won 11 new EBS customers in the UK; 4.0 5% significant additional work with TA
Slide 5: Becoming a pure-play, cloud-only, EdTech software company
Tribal Group: becoming a pure-play, cloud-only, EdTech software company
Slide 6: 2020 priorities
2020 priorities Ensure business continuity, protect cash, maximise Protect the business from revenue, and support customers and protect staff. impact of coronavirus Execute cost mitigation actions to protect shareholder value Win new customers and Drive new business sales and support our customers i
Slide 7: Transforming an Institution's Student Information System
Transforming an Institution's Student Information System Process Transformation Business process complexity Technical complexity § Fully integrated § Orchestrated § Open § Secure Inefficient, inflexible, costly § System Transformation § Intelligent Cloud-native March 2020 Tribal Results Full Year 20
Slide 8: Delivering Tribal Edge – a new strategy: Three steps to success
Delivering Tribal Edge – a new strategy: Three steps to success Increasing Share-of-Wallet through Tribal’s Existing Value-add solutions Student on-premise Information Student Cloud Best Business Education Solution practice APIs CRM Management cloud-native on System Enhanced Engage BI & … Tribal Edg
Slide 9: Technology: Tribal's Student Information solution
Tribal’s Student Information solution Mobile app Student Staff Voice (Engage) Portal Portal Your journey: Marketing & Curriculum Predictive Reporting Degree Business Recruitment Planning Analytics & BI Apprenticeship Engagement Management Evolving to an API Integration Layer advanced Student Informa
Slide 10: Tribal Edge: three-year plan progress
Tribal Edge: three-year plan à progress 2019 2020 2021 Deliver first Edge Generate additional Generate incremental module to Australian recurring revenue from revenue by selling customers (Callista). moving existing customers completed, best-of- Improve profitability into the cloud breed core module
Slide 11: Financial Report
Financial Report March 2020 Tribal Results Full Year 2019 11
Slide 12: Summary
Summary 12 months ended 31 December 2019 Revenue EBITDA Net Cash £78.2m £15.4m £16.5m 2019 £78.2m 2019 £15.4m 2019 £16.5m 2018 £80.1m 2018 £14.1m 2018 £20.0m down 2.3% up 8.9% down 18% § Core revenue, on a constant currency basis, is down 1.8%, mainly due to timing on Education Services contracts §
Slide 13: Financial Key Points (core business)
Financial Key Points (core business) Revenue Adjusted Operating Profit, EBITDA Statutory (Loss)/Profit After Tax £78.2m £15.4m £(3.0)m** 2018 £79.6m* down 1.8% 2018 £14.1m* up 9.1% 2018 £4.1m* down 173% Annual Recurring Revenue (ARR) Adjusted Operating Profit, EBITA Proposed Dividend £42.3m £11.7m 1
Slide 14: Segment Results
Segment Results Revenue 2018 FY Growth % Segment Revenue Segment Profit 2019 FY 2018 FY Constant Constant (£m) Currency Currency £m Constant Currency £m Constant Currency 90.0 25.0 Student Information Systems 58.6 57.6 57.1 3% 80.0 Education Services 19.6 22.4 22.5 (13%) 20.0 70.0 Total 78.2 80.1 79
Slide 15: Annual Recurring Revenue (ARR)
Annual Recurring Revenue (ARR) Annual Recurring Revenue 2018 FY Growth % 2019 FY 2018 FY Constant Constant 5% (£m) Currency Currency 15% Support & Maintenance 33.7 32.9 32.5 3.7% Cloud Services 6.5 5.7 5.6 16.1% 2019 FY Support Subscription Licenses 2.1 1.0 1.0 110.0% Cloud Total 42.3 39.5 39.1 8.1%
Slide 16: Committed Income
Committed Income Committed as at 31 December 2019 Total Committed Income £133.6m split by year of expected recognition (FY18 £119.6m*) £m § Increase of £14.0m (11.7%) 160.0 § ~ 78% of next 12 months’ consensus revenue 140.0 committed £133.6m § SIS includes Tribal Dynamics (£3.6m) and the impact 120.
Slide 17: Student Information Systems
Student Information Systems DMS Dynamics SSOL1% 3% £ 1% Student Information Systems 2018 FY Growth % Revenue 2019 FY 2018 FY Constant Constant m (£m) Currency Currency 35.0 Schools 11% License & Development Fees 6.4 6.5 6.5 (2%) WBL 6% 30.0 Support & Maintenance Fees 32.6 31.7 31.3 4% HE 54% Impleme
Slide 18: Student Information Systems by Region
Student Information Systems by Region EMEA 2018 FY Growth % £ EMEA Revenue 2019 FY 2018 FY Constant Constant m (£m) Currency Currency 18.0 16.0 License & Development Fees 6.1 6.0 6.0 2% 14.0 Support & Maintenance Fees 15.7 14.2 14.2 10% 12.0 Implementation Services 9.0 7.0 7.0 28% 10.0 Cloud Service
Slide 19: Cashflow
Cashflow Net cash before acquisition Cashflow 2019 2018 £22.5m (£m) Operating Cashflows* 11.9 12.7 2018 £20.0m up 13% Working Capital movements* 0.3 3.1 Net cash after acquisition Tax received / (paid) 0.2 (1.6) Net Operating Cash 12.4 14.2 £16.5m 2018 £20.0m down 18% Investing activities (6.8) (5.4
Slide 20: Tribal – Looking Forward
Tribal – Looking Forward March 2020 Tribal Results Full Year 2019 20
Slide 21: COVID-19 (Coronavirus) impact
COVID-19 (Coronavirus) impact § Impact on Customers & Tribal: − Students unable to attend lectures: institutions diverting resource to create online, distance learning courses. Lost fees from overseas students, esp. Chinese of which there are ~130k in Australia and ~120k in the UK, creating signific
Slide 22: FY20 opportunities: significantly impacted by Coronavirus
FY20 opportunities: significantly impacted by Coronavirus Drive ARR New license Improved Create added through sales from efficiency value through increased existing portfolio through cost Education share-of-wallet of solutions, savings and Services from existing including CRM, offshoring (QAS & i-gr
Slide 23: Summary & FY20 Outlook
Summary & FY20 Outlook Good overall 2019 performance: growth in core metrics of Annual Recurring Revenue, Adjusted Operating Profit and Margin% First full Edge module live; good progress being made, with Tribal Admissions expected end 2020 Opportunities for increased revenue through customers moving
Slide 24: Thank you, Any questions?
Thank you Any questions? March 2020 Tribal Results Full Year 2019 24
Slide 25: Contact
Contact: Email § [email protected] § [email protected] WWW.TRIBALGROUP.COM @TRIBALGROUP March 2020 Tribal Results Full Year 2019 25
Slide 26: Appendix
Appendix March 2020 Tribal Results Full Year 2019 26
Slide 27: Tribal Dynamics (Crimson Consultants)
Tribal Dynamics (Crimson Consultants) Acquisition rationale Tribal Dynamics Annual Recurring Revenue (ARR) 2019 FY* To support key goals of: (£m) 7 months § delivering a cloud-based Student Information System (Tribal Edge) License & Development Fees 0.8 £1.3m § increasing Annual Recurring Revenue Su
Slide 28: Product Development
Product Development Product Development 2019 2018 Change (£m) Investment in the Tribal Edge platform Total spend 12.3 11.2 9% significantly increased, with a total of £5.9m capitalised in 2019 compared to Of which capitalised 6.2 4.1 33% £3.7m in 2018. Tribal Edge will be - Tribal Edge 5.9 3.7 38% a
Slide 29: Consolidated Income Statement
Consolidated Income Statement Consolidated Income Statement EBITDA to Statutory Loss After Tax 2019 2018 (£m) £m Revenue 78.2 80.1 15.4 15.0 Gross Profit margin 50% 49% (2.7) 11.7 Adjusted Operating Profit (EBITDA) 15.4 14.1 10.0 (1.0) (0.1) (1.7) Adjusted Operating Profit margin 19.6% 17.6% (0.8) (
Slide 30: Experienced Management Team
Experienced Management Team Peter Croft Janet Tomlinson Mark Pickett Mark Wilson Managing Director, Managing Director, CEO COO APAC Further Education Education Services • Joined in July 2016 • Joined in December 2016 • Joined in October 2009 • Joined in September 2017 • Prior to Tribal, served as Ch