Edu Holdings Limited · ASX:EDU
Edu — UCW — H1 2018 Earnings Presentation
25 slides from Edu's earnings presentation, Feb 28, 2018
Slide 1: 1H18 Results
ASX: UCW 1H18 RESULTS 31 DECEMBER 2017
Slide 2: Disclaimer
DISCLAIMER This presentation, dated 28 February 2018, provides additional comments on the Half-Year Report for the six months ended 31 December 2017 for UCW Limited (UCW or the Company) and accompanying information released to the market on the same date. As such, it should be read in conjunction wi
Slide 3: About UCW
ABOUT UCW n Private education provider, with a l Large and growing sector - $28.0b in FY17, up 16.1% on PCP focus on the international student (source: ABS) market l Positive enrolment trends – 32.4% 3-year CAGR in UCW’s international n Vision to be multi-sector provider – student enrolments Vocatio
Slide 4: 1H18 Highlights
1H18 HIGHLIGHTS n Revenue of $5.9m, up 43.0%* l 4Life acquisition performing well ahead of expectations n Underlying EBITDA of $468k, up 77.3%* l Completion of integration of 4Life into ALG n Underlying EBITDA margin of 7.9%, l Continued investment starting to deliver operating leverage up 23.4%* l
Slide 5: Our Businesses
OUR BUSINESSES ACQUISITION TIMELINE Mar-16 Jan-17 Jul-17 l International student provider in fields l Acquired as an add-on to ALG – l 24.6% strategic stake of Fitness, Remedial Massage, Sport integration now complete l New name and brand to reflect and Recreation Management and l Performance since
Slide 6: Financial Results
FINANCIAL RESULTS 6
Slide 7: Profit and Loss
PROFIT AND LOSS l Revenue growth due to increased Var Var $’000 1H18 1H17 1H18 2H17 international student enrolments (%) (%) - up 40.7% to 2,590 ALG/4LIFE l Average revenue per international Revenue 5,916 4,138 43.0% 5,916 5,749 2.9% student enrolment up 4.2% to $1,931 Cost of sales (2,985) (1,906)
Slide 8: Balance Sheet
BALANCE SHEET Used Capacity $'000 31 Dec-17 30 Jun-17 Corporate debt facilities ($’000) 31 Dec-17 31 Dec-17 Cash and cash equivalents 4,139 7,328 Acquisition facility 1,425 - Trade and other receivables 1,129 1,089 Working capital facility - 500 Other assets 417 441 Bank guarantee 159 41 Total curre
Slide 9: Cash Flow
CASH FLOW Group Group cash cash movement: movements: 1H18 ($’000) 1H18 ($’000) Increase Increase Decrease Decrease Total Total 8,000 275 7,328 7,000 (345) 6,000 5,000 1,425 4,139 4,000 (95) (4,263) 3,000 (531) 2,000 1,000 0 Cash on hand Net cash flows from Investment in Investments in Increase in Ca
Slide 10: Operating Review
OPERATING REVIEW
Slide 11: International vs Domestic
INTERNATIONAL VS DOMESTIC Tuition revenue by student market1 ($’000) Proportion of tuition revenue by student market 6,000 l Proportion of tuition revenue from international students continued to increase in 1H18 – now 88.2% 88.2% 5,000 l Strong growth in international student enrolments continuing
Slide 12: International Student Enrolments
INTERNATIONAL STUDENT ENROLMENTS International Internationalstudent enrolments student by term enrolments by term 1,400 l Strategy to broaden course offering and national 1,200 expansion delivering growth l 4Life courses offered in 1,000 Sydney only - national rollout represents significant market 8
Slide 13: Course Mix
COURSE MIX International student enrolments by field of study 3.3% 9.9% 9.8% 9.8%14.9% 14.9% 5.9% 5.9% Community Services* Community Community Services Services 19.5% Fitness 24.5% 24.5% Fitness Fitness 1H17 Remedial Massage 1H181H18 Remedial Remedial Massage Massage Sport and Recreation Sport andSp
Slide 14: Campus Performance
CAMPUS PERFORMANCE International student enrolments by campus Campus 1H18 enrolments Growth on PCP Proportion of total Sydney 1,449 51.9% 56.0% Melbourne 529 22.7% 20.4% Perth 431 24.2% 16.6% Brisbane 181 66.1% 7.0% Total 2,590 40.7% 100% l Continued growth delivered across all campuses against PCP
Slide 15: Student Diversity
STUDENT DIVERSITY International student enrolments by source country (Top 20)1 l International students from 73 source countries l Top 20 source countries Czech Republic, 5% Philippines, 4% Spain, 4% represent 82.6% of Colombia, 7% current enrolments l >250 active agents in Czech Republic, 5% Philip
Slide 16: Market Opportunity
MARKET OPPORTUNITY
Slide 17: International Education
INTERNATIONAL EDUCATION Onshore in Australia: Export income from education services ($billion) Onshore in Australia: Export income from education services 30 l Large market opportunity - $28.0 28.0 billion in FY17, up 16.1% on PCP1 25 24.1 l Australia’s 3rd largest export 21.3 20 l Articulated gover
Slide 18: Growth Focus
GROWTH FOCUS ORGANIC GROWTH TARGETING ACCRETIVE LEVERS ACQUISITIONS National rollout of existing courses Profitable and cash flow positive Development of new courses $1m - $5m EBITDA Deepen and broaden agent relationships Campus-based Offshore recruitment Cash and scrip consideration Vendors aligned
Slide 19: Outlook
OUTLOOK n Growth in international student enrolments expected to continue n ommencement of national rollout of 4Life courses from 2H18 - represents C significant market opportunity n Introduction of a number of new courses, currently in accreditation process n Continued investment in ALG to scale up
Slide 20: Contact Details
CONTACT DETAILS Adam Davis Lyndon Catzel Chief Executive Officer Chief Financial Officer E: adam@ucw.com.au E: lyndon@ucw.com.au P: +61 2 9112 4541 P: +61 2 9112 4540 M: 0408 400 888 M: 0414 907 384 20
Slide 21: Appendices
APPENDICES
Slide 22: Snapshot
SNAPSHOT Capital structure 1 Register analysis1 52.8% Others Number % Diluted 47.2% Ordinary shares 79,654,583 81.0% Board and Management Options2 18,704,814 19.0% ORDINARY Fully diluted 98,359,397 100.0% SHARES $’000 Market capitalisation 13,541 l 392 shareholders at $0.17 per share l Top 20 own 72
Slide 23: Board and Executives
BOARD AND EXECUTIVES Adam Davis Gary Burg Chief Executive Officer and Managing Director Non-Executive Chairman Adam Davis has extensive experience in the education sector as founder Gary has been involved with Global Capital Group since 1995 in South Africa and CEO of formerly ASX-listed Tribeca Lea
Slide 24: Risk Factors
RISK FACTORS Risk factor Explanation The ease or difficulty with which an international student can obtain a student visa can impact the attractiveness of that Visa settings country as a study destination A low AUD can benefit the international education sector by increasing the affordability of tra
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