Tel: +61 2 9019 2800 Fax: +61 2 8214 5869 ABN: 50 103 827 836 9 - - PDF document

3P Learning Limited Level 18, 124 Walker Street North Sydney NSW 2060 Australia

www.3plearning.com Tel: +61 2 9019 2800 Fax: +61 2 8214 5869 ABN: 50 103 827 836 9 November 2017 Company Announcements Office Australian Securities Exchange Limited 20 Bridge Street SYDNEY NSW 2000 3P Learning Limited - Annual General Meeting 2017 and Product Presentation Please find attached the following documents which will be presented at the Annual General Meeting of 3P Learning Limited which commences at 10.00am (Sydney time), Thursday 9 November 2017, in compliance with Listing Rule 3.13.3:

• 1. Copy of Chairman’s Address
• 2. Copy of 2017 AGM Presentation

Investors are invited to take a closer look at the work we are doing to strengthen our product portfolio by joining the product presentation after the AGM. A copy of that presentation is also attached. Yours sincerely Jonathan Kenny Company Secretary and Chief Financial Officer

ENDS For further information, please contact: 3P Learning Investor Relations Jonathan Kenny, Company Secretary and Chief Financial Officer E: investors@3plearning.com E: jonathan.kenny@3plearning.com

CHAIRMAN’S ADDRESS 3P L E ARNING L IMIT ED - ANNUAL G E NE RAL ME E T ING 9 NOVE MBE R 2017

L a die s a nd Ge ntle me n a nd F e llo w sha re ho lde rs in 3P L e a rning L imite d. I t is my ple a sure to sha re with yo u the hig hlig hts o f yo ur Co mpa ny fo r the 2017 F ina nc ia l Ye a r. T his time la st ye a r a t the AGM we o utline d thre e stra te g ic prio ritie s fo r yo ur Co mpa ny:

• F

irstly, to stre ng the n o ur pro duc t po rtfo lio with a spe c ific fo c us o n ma ths a nd lite ra c y

• Se c o ndly, to de ve lo p a sc a la b le sa le s a nd ma rke ting mo de l, whic h put simply, will

e na b le po te ntia l c usto me rs to purc ha se a t the c lic k o f a b utto n ra the r tha n ha ve to sig n up with the a ssista nc e o f a sa le s re pre se nta tive

• T

hirdly, to g lo b a lise o ur o pe ra tio ns a nd to wo rk b y func tio n a c ro ss g e o g ra phie s, ra the r tha n duplic a te e ffo rts in e a c h ma rke t in whic h we ha ve sub sidia rie s. We a re ple a se d to re p o rt tha t we ma de g o o d pro g re ss a g a inst the se prio ritie s a nd tha t wa s re fle c te d in o ur stro ng re sults fo r F ina nc ia l Ye a r 2017. Gro up Re ve nue g re w b y 6% a nd o n a c o nsta nt c urre nc y b a sis re ve nue wa s up 11% whe n c o mpa re d to F ina nc ia l Ye a r 2016. On a c o nsta nt c urre nc y b a sis Euro pe a n re ve nue g re w b y 19% a nd in the Ame ric a s re ve nue inc re a se d b y 33%. All re g io ns sa w impro ve d :

• E

BI T DA,

• L

ic e nc e re ne wa ls,

• Ave ra g e Re ve nue Pe r Use r,

a nd we re duc e d the c o st to a c q uire ne w use rs. We a re ple a se d to re po rt tha t the Ame ric a s re g io n is no w pro fita b le .

E nc o ura g ing ly, we de live re d a 20% inc re a se in unde rlying c o re E BI T DA while simulta ne o usly funding ke y a re a s to suppo rt o ur stra te g ic prio ritie s suc h a s inve stme nts in ma rke ting a uto ma tio n, use r vo ic e a nd se rvic e c lo ud . T he se a re de sig ne d to impro ve re ve nue , c usto me r e xpe rie nc e a nd re te ntio n. By wa y o f e xa mple , o ur ma rke ting c lo ud we nt live la st F rida y a nd we ha ve a lre a dy ha d a n ‘ unpro mpte d’ sa le o f Ma thle tic s lic e nc e s to a n Austra lia n Hig h Sc ho o l. At the sa me time we inve ste d in o ur ‘ Stra te g ic Prio ritie s’ we re duc e d fixe d o pe ra ting c o sts. As we re po rte d a t the e nd o f o ur F irst Ha lf F ina nc ia l 2017 re sults, the stra te g ic re vie w o f I nto Sc ie nc e a nd o f o ur te c hno lo g y a sse ts re sulte d in a o ne o ff no n c a sh write do wn a fte r ta x

• f $12.0M. Unde rlying NPAT

wa s up 19% ye a r o ve r ye a r a nd we e nde d the 2017 F ina nc ia l Ye a r with ne t de b t o f $6.2M. T he ke y to a hig h pe rfo rma nc e o rg a nisa tio n is its c ulture a nd ta le nt. During the ye a r we pa rtne re d with the Gre at Plac e to Wo rk I nstitute to b e nc hma rk o ur c ultura l pe rfo rma nc e a g a inst the b e st c o mpa nie s inte rna tio na lly. We we re ve ry e nc o ura g e d b y o ur e mplo ye e s’ re spo nse s a nd we ha ve kic ke d o ff a se rie s o f Gre at Plac e to Wo rk initia tive s b a se d o n insig hts fro m the surve y in re la tio n to o ur stre ng ths a nd to impro ve in tho se a re a s whe re , in the e ye s o f

• ur pe o ple , we ha ve fa lle n sho rt.

T his ye a r ma rks the se c o nd ye a r o f the imple me nta tio n o f o ur ‘ Stra te g ic Prio ritie s.’ By sta ying fo c use d o n the se prio ritie s we e xpe c t 3P L e a rning to b e in a po sitio n to pro fita b ly sc a le g ro wth g lo b a lly a nd firmly e sta b lish its pla c e a s a le a ding pro vide r o f dig ita l e duc a tio n. We a re c o mmitte d to a no the r ye a r o f de live ring re ve nue g ro wth fa ste r tha n c o st g ro wth. We e xpe c t g ro wth to a c c e le ra te in 2019 with the la unc h o f o ur lite ra c y pro duc t Re a diwrite r, with a dditio na l Ma thle tic s mo dule s a nd with g e o g ra phic e xpa nsio n. We inte nd to impro ve re te ntio n thro ug h e nha nc e d stude nt e ng a g e me nt, dig itisa tio n, b e tte r use o f da ta a nd a na lytic s a nd a n impro ve d c usto me r e xpe rie nc e .

Co mp e titio n in the fie ld o f e duc a tio n, whilst o fte n de sc rib e d a s ‘ c o lle g ia l’ is no le ss fe ro c io us tha n in a ny o the r e nde a vo ur. And it ha s the a dde d inc e ntive o f fe rve nt c o mmitme nt to a c a use . At 3P L e a rning we a re fo rtuna te to ha ve a te a m who se pa ssio n is the e q ua l o f a ny o f

• ur c o mpe tito rs a nd a pro duc t line a nd te c hno lo g y pla tfo rm tha t a re inc re a sing ly se c o nd to

no ne . Whe the r the y a re lo c a te d in a ny o f o ur o ffic e s a ro und the wo rld, o r a re pa rt o f o ne o f

• ur g lo b a l func tio ns, the te a m me mb e rs o f yo ur Co mpa ny ha ve a pro dig io us e nthusia sm fo r

the wo rk tha t the y do , a nd e spe c ia lly to he lp sc ho o ls a nd te a c he rs a nd p a re nts to he lp the c hildre n the y lo ve to g e t a s muc h b e ne fit fro m e duc a tio n a s po ssib le . T ha t g usto a nd drive c o me s fro m within e a c h o f o ur pe o ple , b ut it is fa ir to sa y, tha t it is nurture d a nd e nc o ura g e d a nd ha rne sse d b y a n o utsta nding ma na g e me nt te a m unde r the g uida nc e o f o ur Chie f E xe c utive , Re b e ka h O’ F la he rty. Re b e ka h is we ll into he r se c o nd ye a r o f se rvic e a t 3P L e a rning a nd he r le a de rship, ma na g e me nt skills, stra te g ic insig ht, te na c ity a nd g o o d humo ur a re re fle c te d in the sub sta ntia l pro g re ss tha t we a re ma king b o th in the de live ry o f o ur ‘ Stra te g ic Prio ritie s’ a nd in ste a dy impro ve me nt o f o ur fina nc ia l re sults. On b e ha lf o f the Bo a rd, tha nk yo u, Re b e ka h. Yo u a nd yo ur e xtra o rdina ry te a m a t 3P L e a rning ha ve o ur he a rtfe lt tha nks a nd g ra titude . We a re e q ua lly inde b te d to a ll o f the te a c he rs, pa re nts, stude nts a nd e duc a tio n a dministra to rs who pla c e the ir trust in 3P L e a rning ; tha nk yo u. F ina lly, I wo uld a lso like to e xte nd my a ppre c ia tio n to my fe llo w No n E xe c utive Dire c to rs, Cla ire Ha tto n a nd Ro g e r Amo s, who ha ve de mo nstra te d the ir c o mmitme nt a nd c o ntrib utio n to o ur Co mpa ny d uring this c ritic a l ye a r o f tra nsitio n in wa ys to o nume ro us to me ntio n. T he supp o rt we re c e ive fro m yo u, o ur sha re ho lde rs, is mo st we lc o me a nd we e xte nd a sinc e re tha nk yo u to yo u fo r pla c ing yo ur c o nfide nc e in 3P L e a rning .

9 November 2017

2017 Annual General Meeting

Samuel Weiss Chairman’s Address

2 2017 AGM Presentation 9 November2017

3 2017 AGM Presentation 9 November 2017

Rebekah O’Flaherty CEO’s Address

4 2017 AGM Presentation 9 November 2017

Our global leadership team

Re Rebe bekah ah O O’Flah ahert rty,

Chief E ef Executiv ive O e Officer er Acting C Chief S f Sales & & Market etin ing O Offi ficer er

• Extensive experience in technology companies and digital in the

United States, Europe and APAC

• Previously Vice President Hewlett Packard, Executive Director Telstra,

General Manager Origin Energy

• Joined 3P Learning in Jun 2016

Simo mon Pe Perry

Chie ief In Info formatio ion O Offic fficer

• 20 years of global experience in leading

technology teams

• Previously led the technology function for

Core Logic and Veda

• Joined 3P Learning in Aug 2016

Jona natha han Ke Kenny nny

Chie ief F Fin inancia ial O l Off ffic icer

• 20 years+ experience in finance and
• perations roles for ASX listed and

multinational corporations

• Previously Chief Financial Officer of ASX listed

RP Data and Bravura Solutions

• Joined 3P Learning in Mar 2014

Tan Tania Bl ia Blac ack

Chief P ef People O le Officer er

• Extensive experience in leading people

strategy, with focus on business transformation in the media sector

• Led the integration of HR across Nine

Entertainment Co

• Joined 3P Learning in Nov 2015

Craig S raig Simon

Chief P ef Product Offic icer er

• 20 years of experience across the technology

and education sectors, with a strong focus

• n elearning.
• Previously Director of Digital Learning, founder
• f Purple Learning and Treasurer of the

Elearning Industry Association.

• Joined 3P Learning in July 2015.

In mid-calendar 2016 we announced our 3 year strategic priorities Build upon 3P’s foundation of

• Talented team
• Strong customer advocates (students, parents and teachers)
• Award-winning product brands
• Recurring SaaS business model
• Large installed base to accelerate profitable global growth

5 2017 AGM Presentation 9 November 2017

3 Year Strategic Priorities

2017 Strengthen Product Portfolio, Develop Scalable Sales, Marketing and Globalise Operating Model 2019 Accelerate Growth

Culture and Talent

Prioritising Product Development and Innovation, developing Scalable Sales and Marketing Model, Implementing a Global Operating Model Leverage our scalable Global Operating Model to grow sales through product and geographic expansion

2018 Optimise Sales

6 2017 AGM Presentation 9 November 2017

Progressing on our strategic priorities

A short video is available for viewing at: http://www.3plearning.com/investors/preview/

• Group Revenue grew by 6%. APAC 3%, EMEA 3% and Americas 31% (EMEA

grew 19% and Americas 33% on a constant currency basis)

• Underlying Core EBITDA grew by 20%, with all regions expanding EBITDA,

reflecting our continued action to reduce cost and the benefits of developing a more scalable and efficient global operating model

• Licence growth impacted by our focus on more profitable bundling

especially in Americas. All regions saw ARPU improvement with the Americas reporting a 24% increase

• Retention and CAC improved
• Start of FY17 FTE 338. End of FY17 FTE 242 reflecting the benefits of a more

efficient and effective operating model

• As reported in our H1FY17 results a strategic review led to a one off non

cash write down after tax of $12.0M. Restructuring costs of after tax of $1.6M were also recorded

• Net Debt $6.2M
• Underlying NPAT up 19% year on year

7 2017 AGM Presentation 9 November 2017

FY17 Results Highlights

* FY17 includes $0.5M of Share based payments expenses which is equity settled. (FY16 $0.1M) ** Share of associate profit is Learnosity contribution based on 23.07% share of NPAT for 9 Sep – 18 Jan 2016, 40% share for 19 Jan 2016 – 30 June 2017. *** Adjustments made for significant one-off, non-recurring items for comparative purposes

$M FY17 FY16 Mvmt Growth Revenue 52.5 49.3 3.2 6% ANZ 31.8 30.8 1.0 3% EMEA 13.0 12.6 0.4 3% Americas 7.7 5.9 1.8 31% Mathletics 39.3 36.9 2.4 7% Reading Eggs 7.5 6.8 0.7 10% Spellodrome 2.1 2.1

• 0%

Into Science 0.8 0.8

• 0%

Other 2.8 2.7 0.1 4% Expenses (37.2) (36.5) (0.7) 2% Underlying EBITDA* 15.3 12.8 2.5 20% Share of Associate's Profit ** 0.7 0.5 0.2 40% Underlying Core EBITDA* 16.0 13.3 2.7 20% EBITDA margin (%) 30% 27% 3% Underlying NPAT 6.3 5.3 1.0 19% Other one-off costs (after tax)*** (13.6) (1.6) (12.0) 750% Statutory NPAT (7.3) 3.7 (11.0) (297%)

FY18 Outlook

• Continued focus and execution of our 3 strategic priorities:

I. strengthen the product portfolio, II. develop scalable sales and marketing, and III. globalise our operating model.

• Continue to deliver revenue growth greater than cost growth.
• We will complete foundation building in FY18 allowing 3P Learning to profitably scale and

accelerate growth in FY19 with a focus on 4 growth drivers:

• product line expansion (readiwriter, Mathletics upsells)
• customer segment expansion
• geographic expansion
• improved retention through investments in digitisation, data and analytics and improved

product experience

• Investors are invited to take a closer look at the work we are doing to strengthen our product

portfolio by joining the product presentation after the AGM

8 2017 AGM Presentation 9 November 2017

9 2017 AGM Presentation 9 November 2017

AGM Resolutions

10 2017 AGM Presentation 9 November 2017

Resolution 1

Remuneration Report

Resolution 1: Remuneration Report

Proxy & Direct Votes Combined

FOR AGAINST OPEN ABSTAIN 72,109,723 259,845 30,816 18,274,002 99.60% 0.36% 0.04%

12 2017 AGM Presentation 9 November 2017

Resolution 2

Grant of options to CEO, Rebekah O’Flaherty

Resolution 2: Grant of CEO Options

Proxy & Direct Votes Combined

FOR AGAINST OPEN ABSTAIN 90,307,411 285,789 30,816 50,370 99.65% 0.32% 0.03%

14 2017 AGM Presentation 9 November 2017

Resolution 3

Re-election of Director Samuel Weiss

Resolution 3: Re-election of Sam Weiss

Proxy & Direct Votes Combined

FOR AGAINST OPEN ABSTAIN 72,641,943 80,095 76,421 18,269,632 99.79% 0.11% 0.10%

16 2017 AGM Presentation 9 November 2017

Resolution 4

Increase in Non-Executive Director fee pool

Resolution 4: Increase in NED fee pool

Proxy & Direct Votes Combined

FOR AGAINST OPEN ABSTAIN 53,900,674 18,446,394 30,816 18,296,502 74.47% 25.49% 0.04%

18 2017 AGM Presentation 9 November 2017

Resolution 5

Approval of proportional takeover provisions

Resolution 5: Proportional Takeover Provisions

Proxy & Direct Votes Combined

FOR AGAINST OPEN ABSTAIN 72,629,233 18,320,662 76,816 41,000 79.79% 20.13% 0.08%

20 2017 AGM Presentation 9 November 2017

AGM Close

9 November 2017

Invest stor Se Sessi ssion:

Strengthening the Product Portfolio & Business systems evolution

Agenda

1

Why 3P Learning Roadmap Product Showcase Product Q&A Business Systems Q&A

2 3 4 5 6

3 Investor Presentation - 9 November 2017

Why 3P Learning

Technology to enhance learning and teaching

• Teacher Centered
• Support in the classroom
• Scale
• Speed
• Reduce administrative tasks
• Student Focused
• Personalised
• Adaptive
• Engaging

4 Investor Presentation - 9 November 2017

Why 3P Learning

Technology to enhance learning and teaching

• Home and Parent Engagement
• Learning partners
• Reinforcement
• Supportive
• Learning Advantage: Teacher + Student + Parent
• Academic Rigour
• Curriculum Aligned
• Proven Efficacy

5 Investor Presentation - 9 November 2017

Planning & Roadmap

• SAAS focus
• In product:
• cross-sell and upsell
• targeted renewal support
• training and support for teachers, administrators and

districts

• Additional upsell products
• Content building for the future
• Content Authoring Tool
• Shorter development cycle
• Meet localised needs more readily

6 Investor Presentation - 9 November 2017

2018/2019 Spanish Toddler K-2 Grades 3-4 Grades 5-6 Grades 7-10 H2FY17 English 2017/2018 English (B2B) (B2B) (B2C B2B) (B2C B2B) (B2C B2B) B2B Exc Americas (B2C B2B) (B2C B2B)) (B2C B2B)) Test (B2C B2B) Test (B2C B2B) Test (B2C B2B) (B2C B2B)

Evolution of Maths Category

More targeted product and price offers to improve retention, ARPU and customer acquisition cost

Strengthen x 1 (B2B B2C) Strengthen x 3 (B2B B2C) Upsell x 1 (B2B B2C)

7 Investor Presentation - 9 November 2017

K-2 Grades 3-4 Grades 5-6 Grades 7-10

Evolution of Literacy Category

Aligned with maths category to improve multi product holding, retention and customer acquisition cost

Writing B2B B2C Writing B2C B2B Reading B2B B2C B2C B2B Phonics B2C B2B Phonics B2B B2C B2B Ex Americas B2B B2C B2B B2C Writing B2C B2B 2017/2018 English 2018/2019 2017/2018 English Grammar B2B B2C Grammar B2B B2C Reading B2B B2C Vocab B2B B2C Vocab B2B B2C Literacy Tests B2B B2C Literacy Tests B2B B2C

8 Investor Presentation - 9 November 2017

Product Showcase

• Videos: K-2
• Numbeanies: K-2
• Una & Jiro: K-2
• Multiverse: 3-6
• ReadiWriter Phonics: K-2
• ReadiWriter Writing: 3-6

9 November 2017

Business systems evolution

10 Investor Presentation - 9 November 2017

The next evolution of our business systems

Strategic Priority #2 - Develop a Scalable Sales and Marketing Model

Leverage digital and telesales, as well as variable cost sales channels and pursue select geographic expansion

• The Marketing Cloud Implementation has created a capability that unlocks

value with regard to building an ‘end to end’ Scalable Sales Model

• Automated Omni-Channel marketing campaigns
• Automated Sales processes (Demo and Trial) driven by personas,

buying intentions and data

• Automated retention processes driven by goal achievement metrics

derived from buying intentions

• Partner Cloud
• A portal for Partners to access product information and leads
• Service Cloud
• Case Management linked to CRM data on a global scale

H2FY18 H1FY19 Digital Sales Process \ Demo & Trial - APAC

Evolution of Business Systems by capability – what we are working on next…

More targeted product and price offers to improve retention, ARPU and customer acquisition cost

H1FY18 Digital Sales Process \ Demo & Trial - AMERICAS Digital Sales Process \ Demo & Trial - EMEA

Dec 2017 Jun 2018

Marketing Cloud Service Cloud

Customer Service Case Management - GLOBAL

Partner Cloud

Partner Management

• GLOBAL

11 Investor Presentation - 9 November 2017

Evolution of Business Systems by capability – what we are working on now

More targeted product and price offers to improve retention, ARPU and customer acquisition cost

12 Investor Presentation - 9 November 2017

The next evolution of our business systems cont.

Let’s look at the new Digital Sales Process for APAC

13 Investor Presentation - 9 November 2017

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Mobile Optimised

19 Investor Presentation - 9 November 2017

The next evolution of our business systems cont.

So what is next?

20 Investor Presentation - 9 November 2017

The next evolution of our business systems

• As we evolve to being a true SAAS business the following metrics will be critical:
• CAC, LTV, Churn etc
• These will be improved with:
• Scalable and automated sales / service
• Data insights driving automated retention journeys
• Upsell /Cross-sell to more powerful versions of the product, or

additional product

• To solve for this we will increase our capability around:
• Product Catalogues
• Quoting
• Contract Management
• Subscription Billing
• Ecommerce

H2FY18 H1FY19 Digital Sales Process \ Demo & Trial - APAC

Evolution of Business Systems by capability – what we are working on next…

More targeted product and price offers to improve retention, ARPU and customer acquisition cost

H1FY18 Digital Sales Process \ Demo & Trial - AMERICAS Digital Sales Process \ Demo & Trial - EMEA

Dec 2017 Jun 2018

Scale digital sales – leverage the SAAS model Product Catalogue, Quoting, Contract Management, Subscription Billing Enhanced Payment Gateway Recurring & additional payment types Customer Engagement Self service everything….

Marketing Cloud Service Cloud

Customer Service Case Management - GLOBAL

CPQ Solution \ E-Commerce Self Service Portal Partner Cloud

Partner Management

• GLOBAL

21 Investor Presentation - 9 November 2017

22 Investor Presentation - 9 November 2017

Q&A

Important Notice and Disclaimer

The material in this presentation is a summary of 3P Learning Limited’s (‘3P’) activities and results as at the time of preparation, 9 November 2017 and is based on 3P’s financial reports for the full year ended 30 June 2017. No representation, express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in this presentation (‘forward-looking statements’). Such forward-looking statements are by their nature not based on historical facts and are subject to significant uncertainties and contingencies and are based on a number of estimates and assumptions that are subject to change (and in many cases are outside the control of 3P and its Directors and officers) which may cause the actual results or performance of 3P to be materially different from any future results or performance expressed or implied by such forward- looking statements. Reliance should not be placed on forward-looking statements and except as required by law or regulation 3P assumes no

• bligation to update these forward-looking statements. To the maximum extent permitted by law, 3P and its related corporations, directors,
• fficers, employees and agents disclaim any obligation or undertaking to release any updates or revisions to the information in this

presentation to reflect any change in expectation or assumptions and disclaim all responsibility and liability for the forward-looking statements (including without limitation, liability for fault or negligence). This presentation provides information in summary form only and is not intended or represented to be complete. Further, it is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any particular investor. Due care and consideration should be undertaken when considering and analysing 3P’s financial performance. All references to $ are to Australian $ unless otherwise stated. To the maximum extent permitted by law, neither 3P nor its related corporations, directors, officers, employees and agents, nor any other person, accepts any liability, including without limitation, any liability arising from fault or negligence, for any loss arising from the use or reliance on this presentation or its content or otherwise arising in connection with it. This presentation is not and should not be considered as an offer or invitation to acquire shares in 3P and does not and will not form part of any contract for the acquisition of shares. This presentation should be read in conjunction with other publicly available materials. Further information is available on 3P’s website at: http://www.3plearning.com/investors/

21 2017 AGM Presentation 9 November 2017