Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (April 2020)
29 slides from Idp Education's investor presentation, Apr 1, 2020
Slide 1: IDP Education Trading update and equity raise
IDP Education Trading update and equity raise April 2020
Slide 2: Important notice and disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES. Each recipient of this presentation should make their own enquiries and investigations regarding This presentation has been prepared and authorised by IDP Education Limited (ABN 59 117 676 463) all information included in this presentation includ
Slide 3: Key risks and forward looking statements
KEY RISKS can be given that any of the strategies will be effective or that the anticipated benefits from the An investment in IDP is subject to investment risks including possible loss of income and principal strategies will be realised in the period for which the forward looking statements may hav
Slide 4: Disclaimer
DISCLAIMER In this presentation, unless otherwise stated or the context requires otherwise, references to While the information in this presentation has been prepared in good faith and with reasonable 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars. care, no representation or warranty
Slide 5: Update on trading
Update on trading • Record IELTS test and student placement volumes to Feb-YTD, resulting in revenue of A$480 million1, up 22% and EBIT of A$96 million, up 32% v pcp • YTD Feb-2020 saw qualified leads up 47% and applied volumes up 42% v pcp Impact of COVID-19 • Global travel and gathering restrictio
Slide 6: Investment thesis remains strong
Investment thesis remains strong • A global leader in education Early web search services, IDP is building the world’s leading platform and connected community for Event engagement international students • Growth was accelerating prior to COVID-19 with the benefits of the digital platform starting t
Slide 7: YTD Feb-2020 trading update
YTD Feb-2020 trading update • IELTS volumes at 949,000, up 11% v pcp • Student placement volumes at 41,000, up 27% v pcp • Overall revenue of A$480 million1, up 22% v pcp Strong pipeline growth • YTD Feb-2020 saw qualified leads up 47% and applied volumes up 42% v pcp • Marketing automation and lead
Slide 8: Various government restrictions globally have impacted IDP's operations
Various government restrictions globally have impacted IDP’s operations IELTS • Reduced scale or suspensions in IELTS testing as test centres are subject to “lockdown” measures • IDP’s biggest testing country, India entered a 21-day “lockdown” on 24 March. IDP’s IELTS centres are closed during this
Slide 9: International education industry has historically rebounded from shocks
The international education industry has historically rebounded strongly from various economic and industry shocks highlighting its “through the cycle” structural growth drivers1 Global International Student Enrolments Programs in place to capture the deferred demand • To clear the expected backlog
Slide 10: Expenses
Expenses • IDP has taken action to secure approximately A$40 million in overhead expense savings across the next six months while preserving its workforce to ensure strong positioning in the future o Staff cost savings through the voluntary reduction in salary by the senior leadership team, a commen
Slide 11: Pro forma total available liquidity of A$430 million post capital raising
Equity capital raising • A$175 million fully underwritten institutional placement • Offering a non-underwritten Share Purchase Plan to raise up to A$15 million1 • Net cash position today of A$19.2 million2 and pro forma net cash position of A$190 million post raise3 New banking facilities • IDP’s ex
Slide 12: Placement and Share Purchase Plan
Placement and Share Purchase Plan • Fully underwritten institutional placement (Placement) to raise approximately A$175 million, and a non-underwritten Offer structure and Share Purchase Plan (SPP) to raise up to A$15 million, (together, the Offer) size • The placement is fully underwritten by Macqu
Slide 13: Placement and Share Purchase Plan timetable
Placement and Share Purchase Plan timetable Event Date Record date for the SPP 7:00pm (Sydney time), Tuesday, 31 March 2020 Announcement of Placement and SPP Wednesday, 1 April 2020 Placement bookbuild Wednesday, 1 April 2020 Announcement of completion of Placement, voluntary suspension of IDP share
Slide 14: Appendix
Appendix
Slide 15: Pro forma total available liquidity of A$430 million post capital raising
As at Pro forma Pro forma as 29-Feb-201 adjustment at 29-Feb-20 (A$m) (A$m) (A$m) Current assets • Pro forma total available liquidity of A$430 Cash and cash equivalents 84.7 170.8 255.5 million post capital raising comprising: Trade and other receivables 74.1 - 74.1 Contract assets 61.6 - 61.6 o Pr
Slide 16: Key Risks and Foreign Selling Restrictions
Key Risks and Foreign Selling Restrictions
Slide 17: Key Risks
Key Risks due to travel bans restricting students' ability to arrive onshore). Given the high degree of INTRODUCTION uncertainty surrounding the extent and duration of COVID-19, it is not currently possible to assess This section describes some of the key risks associated with any investment in IDP
Slide 18: Political, economic or social instability
Political, economic or social instability people whose first language is not English; or (vi) increased demand for online English language IDP operates globally, with offices in over 50 countries. Political, economic or social instability tests (which may accelerate as a result of COVID-19). (includ
Slide 19: Key IELTS agreements can be terminated without cause
Key IELTS agreements can be terminated without cause, upon notice of 12 months or less commercial relationship, there is a risk that the IELTS Examination Agreement could be terminated IELTS Examination Agreement and, as a result, IDP would be unable to conduct its IELTS business. If this occurred,
Slide 20: Reliance on third party agents and licensees
IDP's business model relies on third party agents, licensees and other parties to conduct financial year’s forecast cash operating expenses (net of any forecast cash receipts). The businesses on behalf of IDP and there are risks associated with these arrangements balance of the hedge program is comp
Slide 21: Human resources risk
Human resources risk Moreover, to the extent that there is an increase in the use of online education courses (as IDP's ability to effectively perform its day-to-day operations and execute its growth strategy opposed to traditional on-campus attendance at an educational institution), which may occur
Slide 22: Protection of personal information and data
Protection of personal information and data school stoppages, lockdowns, quarantines, travel restrictions and the impact on the economies In order to conduct its day-to-day operations including student placement and high-stakes and share markets of Australia and other jurisdictions in which IDP oper
Slide 23: Equity raising risk
Equity raising risk material adverse effect on the IDP or the Placement or on the market price of IDP's IDP has entered into an placement agreement with the Underwriter (Placement Agreement), shares; pursuant to which the Underwriter has agreed to fully underwrite the Placement on the terms and • pr
Slide 24: Underwriter termination events
In addition, the Underwriter may terminate its obligations under the Placement Agreement on the makes it illegal or commercially impossible for the Underwriter to satisfy an obligation under occurrence of the following events and in its reasonable opinion such event (a) has or is likely to the Place
Slide 25: Dividends and risks of dilution
Dividends The payment of dividends in respect of IDP's shares is impacted by a number of factors, including global economic conditions recovering form the current COVID-19 disruptions, IDP's profitability, retained earnings, availability to frank credits, capital requirements and available cashflow.
Slide 26: Foreign selling restrictions
This document does not constitute an offer of new ordinary shares ("New Shares") of IDP Education legislation. Prospective purchasers should refer to the applicable provisions of the securities legislation Limited ("IDP" or "the Company") in any jurisdiction in which it would be unlawful. In particu
Slide 27: Foreign selling restrictions: European Union and Norway
European Union (Denmark, Germany, Luxembourg and the Netherlands) Norway This document has not been, and will not be, registered with or approved by any securities regulator in This document has not been approved by, or registered with, any Norwegian securities regulator under the European Union. Ac
Slide 28: Foreign selling restrictions: United Arab Emirates and United Kingdom
United Arab Emirates Neither this document nor the New Shares have been approved or passed on in any way by the Emirates Securities and Commodities Authority ("ESCA") or any other governmental authority in the United Arab Emirates. The Company has not received authorisation from the ESCA or any othe
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