Tribal Group Plc · LSE:TRB
Tribal — H1 2017 Earnings Presentation
42 slides from Tribal's earnings presentation, Sep 7, 2017
Slide 1: H1 2017 Report
Empowering the World of Education H1 2017 Report Ian Bowles, CEO Mark Pickett, CFO 7th September 2017
Slide 2: Overview
Overview ▪ The Three Year Plan ▪ 2017 H1 Highlights & Operational Challenges ▪ Financial Report ▪ CEO Summary 7 September 2017 Tribal H1 Results 2017 2
Slide 3: Three Year Plan
Three Year Plan Three Year Plan (2016 Results Presentation) 2018 2016 2017 2018 Move to recurring revenue Create a solid Improve Build on foundation, and profitability, operational sound deliver new performance Continued margin operational product and deliver top- improvement model strategy with lin
Slide 4: 2017 H1 Business Highlights
2017 H1 Business Highlights Ian Bowles CEO 7 September 2017 Tribal H1 Results 2017 4
Slide 5: Financial Key Points
Financial Key Points Revenue Adjusted operating profit Statutory profit down 2.2% Annually recurring revenue Adjusted operating margin Statutory profit per share down 1.8% Net cash from operating activities Net cash Sales order backlog down 83% down 3.0% 7 September 2017 Tribal H1 Results 2017 5
Slide 6: H1 Highlights
H1 Highlights ▪ Positive progress across all lines of Business ▪ Key contracts secured in ME & Asia Pacific ▪ Return to Full Profitability ▪ Positive development of Pipeline ▪ Positive Customer engagement at conferences 7 September 2017 Tribal H1 Results 2017 6
Slide 7: British Council
British Council Implementation progress - TCMS ▪ On August 25, Singapore became the 34th country to go live giving a total of 119 teaching locations ▪ This year alone, implemented in 69 centres across 14 countries in Europe, South America, Africa & Middle East ▪ Now delivered to 75% of BC teaching l
Slide 8: Operational Challenges
Operational Challenges ▪ Enhanced competitor activity in all regions ▪ Retention of Key Talent ▪ Delivery of Product strategy in Cost Neutral manner 7 September 2017 Tribal H1 Results 2017 8
Slide 9: Key Wins 2017 to date
Key Wins 2017 to date Further/Vocation Employers & Schools & Higher Education al Education Training Providers Government Bodies Callista group of Nottingham College, UK Travis Perkins, UK Abu Dhabi Education Universities, Australia Council (ADEC), UAE National Business Solvo Vir, UK (extension) Coll
Slide 10: Wambiz IP Acquisition
Wambiz IP Acquisition IP Acquisition ▪ Wambiz solution: a private social media network that encourages comms between students and with staff ▪ Acquired software IP and rights to distribute. ▪ Also novated all Wambiz education customers Activities ▪ Rebranded as Student Engage – a module within Triba
Slide 11: Financial Report
Financial Report Mark Pickett CFO 7 September 2017 Tribal H1 Results 2017 11
Slide 12: CFO Summary
CFO Summary six months ended 30 June 2017 Revenue Adjusted Operating Profit* Net Cash (before share based payments) £44.2m £5.0m £5.5m 2017 £44.2m 2017 £5.0m 2017 £5.5m 2016 £45.2m 2016 £0.7m 2016 £5.7m down 2.2% up £4.3m down 3.0% ▪ Underlying revenue growth of 8%, excluding expired Ofsted Early Ye
Slide 13: Financial Key Points
Financial Key Points Revenue Adjusted operating profit Statutory profit £44.2m £5.0m £1.6m improved 2016 £45.2m down 2.2% 2016 £0.7m up £4.3m 2016 Loss of £2.6m £4.2m Annually recurring revenue Adjusted operating margin Statutory profit per share £15.9m 11.2% 0.8p improved 2016 £16.2m down 1.8% 2016
Slide 14: Adjusted EBITDA Bridge from H1 2016 to H1 2017
Adjusted EBITDA Bridge from H1 2016 to H1 2017 7 0.5 6 1.6 Cost Reduction Annualised 2016 2017 2018 5 FY 2016 Savings 9.0 5.8 3.2 H1 2017 Savings 2.8 1.9 0.9 £m 4 0.2 Total Savings 11.8 5.8 5.1 0.9 2.0 6.7 3 1.0 2.1 KPIs 2 6 months to 30 June 2016 2017 Variance 0.7 Headcount (FTE) 1,149 842 307 1 2.
Slide 15: Segmentation: All Businesses
Segmentation: All Businesses 50 35% 32% 45 29% 30% Adjusted operating 40 Revenue £m profit £m Revenue / EBITA (£m) 25% Operating margin (%) 35 25% 22% 2017 2016 2017 2016 30 20% Student Management Systems 30.6 31.0 9.0 7.6 17% 25 i-graduate 1.3 0.9 (0.1) 0.1 20 15% 12% Other 1.2 2.1 0.4 0.4 15 10% Q
Slide 16: Student Management Systems
Student Management Systems Revenue £m 20 2017 2016 Licence and development 4.5 6.0 Implementation 8.2 7.1 15 Maintenance fees 15.9 16.2 Revenue (£m) Other 2.0 1.7 10 Total 30.6 31.0 5 Adjusted Operating Profit (£m) 5.0 0.7 Adjusted Operating Profit Margin 11.2% 1.4% 0 2017 2016 2017 2016 2017 2016 C
Slide 17: Committed Revenue
Committed Revenue Total Committed Revenue £122.2m (FY16: £113.8m) 100 ▪ £32.8m relates to H2 2017 (92% of FY17 consensus revenue) QAS/i-graduate 90 ▪ £89.4m relates to 2018 and beyond £10.9m 80 ▪ ~ 70% of 2018 consensus revenue committed 9% Committed Income (£m) 70 Increase due to: 60 ▪ Callista sig
Slide 18: Cashflow
Cashflow H1 FY H1 2017 2016 2016 Net cash £m £m £m £5.5m Operating cashflow 0.8 8.3 4.6 Proceeds of Synergy disposal - 19.4 19.4 2016 £5.7m down 3.5% Acquisition/disposal related Operating cashflow costs (1.2) (3.9) (3.8) Capital expenditure (2.9) (2.4) (1.3) £0.8m Finance and other costs - (0.5) (0
Slide 19: Product Strategy & Branding
Product Strategy & Branding Ian Bowles CEO 7 September 2017 Tribal H1 Results 2017 19
Slide 20: Our Goal
Our Goal World-class software & services company International market leading educational management solutions provider Valued by − Customers − Staff − Shareholders 7 September 2017 Tribal H1 Results 2017 20
Slide 21: Student Information Systems Strategy
Student Information Systems Strategy Further Education / Employment & Schools Higher Education Vocational Education Work Based Learning Lifelong Learning Journey Tribal SchoolEdge Tribal Edge Tribal Maytas A student’s lifelong learning journey underpinned by Tribal Student Information Systems 7 Sept
Slide 22: Meeting Educational Institutions' Challenges
Meeting Educational Institutions' Challenges Ensuring success across the Improved Recruitment Student Lifecycle Increased Retention Thriving in an increasingly Enhanced Outcomes competitive market Greater Employability Meeting student More Cost-effective expectations Delivery Improve and personalise
Slide 23: Gartner's Recommendations to Education CIOs
Gartner’s Recommendations to Education CIOs Invest in new cloud-based modules, not legacy systems Look for social, mobile and analytics functionality Plan for eventual migration to the cloud/SaaS *Gartner’s “Market Guide for Higher Education Student Information Systems”, April 2017, Terri-Lynn B. Th
Slide 24: Market-led investment in Student Information Systems
Market-led investment in Student Information Systems Heritage SIS EXAMPLES SITS New Functionality Callista Web and self-service Campus EBS e-VISION 7 September 2017 Tribal H1 Results 2017 24
Slide 25: Customers' and our own investment spread across many Tribal SIS
But our customers’ & our own investment is spread across many Tribal SIS SITS:Vision Investment SITS:Vision ▪ Heritage systems maintained by own Callista Investment Callista streams ebs Investment ebs ▪ New functionality but not at the pace we Tribal Campus Investment Tribal Campus would like ▪ Not
Slide 26: Introducing Tribal Edge
Introducing Tribal Edge 7 September 2017 Tribal H1 Results 2017 26
Slide 27: Tribal Edge: A Focused Strategy
Tribal Edge: A Focused Strategy ▪ Larger investment to benefit all Tribal Edge - common platform, SITS:Vision Tribal but market specific offerings UniversityEdge ▪ Rollout strategy: Callista Investment − Initially, build new modules ebs − Later, upgrade existing Tribal functionality CollegeEdge −
Slide 28: Building out from the Student Experience
Building out from the Student Experience Tribal UniversityEdge ▪ Student centric applications ▪ Building from a world class student management system ▪ Providing timely insights across the student lifecycle ▪ Improving engagement ▪ Increasing retention ▪ Enhancing outcomes 7 September 2017 Tribal H1
Slide 29: Evolve to use more from Tribal UniversityEdge
Evolve to use more from Tribal UniversityEdge End Users Heritage SIS Tribal UniversityEdge SITS:Vision Student Services Student Management API Business API REST API Relational Database Logic Analytics 3rd party modules 7 September 2017 Tribal H1 Results 2017 29
Slide 30: Tribal UniversityEdge: Modular, cloud-first
Tribal UniversityEdge: Modular, cloud-first End Users Heritage SIS Tribal UniversityEdge Student Services Student Management API Business API REST API Relational Database Logic Analytics 3rd party modules 7 September 2017 Tribal H1 Results 2017 30
Slide 31: Tribal UniversityEdge: First Modules
Tribal UniversityEdge: First Modules 7 September 2017 Tribal H1 Results 2017 31
Slide 32: Phase 1: First New Modules
Phase 1: First New Modules Mobile App Student Student Student Student View Engage Support Insight 7 September 2017 Tribal H1 Results 2017 32
Slide 33: Student Engage (Wambiz)
Student Engage (Wambiz) Key Features ▪ Private social media network that encourages communications between students and with staff Benefits ▪ Engage with learners earlier in the recruitment cycle ▪ Build a sense of community ▪ Private social network, safe and secure ▪ Quick, effective two way commun
Slide 34: Student View
Student View Key Features ▪ Single mobile app and web portal to allow access to all institution data ▪ Uses information pull Benefits ▪ Personalised, tailored experience ▪ Enquiry to enrolment, and onwards ▪ Communication aligned with student lifestyle ▪ Convenient access anytime, anywhere ▪ Improve
Slide 35: Student Support
Student Support Key Features ▪ Student support solution to cover all departments. ▪ Self-help FAQs, full case management and integrated communications ▪ Real-time communication and collaboration Benefits ▪ Seamless support experience ▪ Single view of all learner issues ▪ Personalised - relevant info
Slide 36: Student Insight
Student Insight Key Features ▪ Learning analytics solution that monitors and tracks student engagement ▪ Analyses student data from all sources ▪ Allows targeting of students needing support – actioned and tracked in Student Support Benefits ▪ Flags students at potential risk ▪ Improve outcomes with
Slide 37: CEO Summary
CEO Summary Thank you Any further questions? 7 September 2017 Tribal H1 Results 2017 37
Slide 38: Appendix
Appendix 7 September 2017 Tribal H1 Results 2017 38
Slide 39: Market Position
Market Position ▪ No.1 provider of student management systems to universities in the UK, Australia & New Zealand − Australia we work with 90% of Universities − New Zealand we work with 100% of Universities − Facilitates and asset management software provides the NZ Ministry of Education with an effe
Slide 40: Consolidated Income Statement
Consolidated Income Statement 2017 2016 £m £m Revenue 44.2 45.2 Gross profit margin 42% 41% Adjusted operating profit 5.0 0.7 Adjusted operating profit margin 11.2% 1.4% Other Items (2.5) (2.6) Statutory operating profit/(loss) 2.5 (1.9) Finance costs (0.1) (0.9) Statutory profit/(loss) before tax 2
Slide 41: Other Items
Other Items H1 FY H1 FY 2017 2016 2016 2015 £m £m £m £m Share based payment charges 0.7 1.0 0.2 (0.4) Profit on sale of Synergy - (0.3) (0.3) - In H1 2016 and FY 2015 share based Restructuring 0.7 1.9 1.5 0.5 payments weren’t included in Other IFRS3 amortisation 1.0 1.9 0.9 1.7 Items and is therefor
Slide 42: Contact
Contact: Email ▪ [email protected] ▪ [email protected] WWW.TRIBALGROUP.COM @TRIBALGROUP 7 September 2017 Tribal H1 Results 2017 42