Edu Holdings Limited · ASX:EDU
Edu — FY2022 Earnings Presentation
34 slides from Edu's earnings presentation, Feb 27, 2023
Slide 1: Qualifications to Meet Demand in Healthcare, Education & Community Services: FY22 Results Presentation
QUALIFICATIONS TO MEET DEMAND IN HEALTHCARE, EDUCATION & COMMUNITY SERVICES OCCUPATIONS FY22 RESULTS PRESENTATION
Slide 2: Contents
CONTENTS 01 02 03 04 05 06 2022 Financial Business Unit Capital & Debt Priorities & Appendices Highlights Results Performance Structure Outlook Pg. 7 Pg. 12 Pg. 16 Pg. 21 Pg. 24 Pg. 27
Slide 3: Snapshot
EDU HOLDINGS LIMTED SNAPSHOT ACN 108 962 152 COMPANY OVERVIEW Vision: First-choice in Healthcare, Education and Community Services $18.1m 91 8 qualifications to domestic and FY22 Revenue Permanent Campuses + Online international students in Australia Team Members NSW, VIC, QLD, SA, WA $6.1m 6,463 22
Slide 4: Australia's International Education Market Bouncing Back
AUSTRALIA’S INTERNATIONAL EDUCATION MARKET BOUNCING BACK NEW STUDENT ENROLMENTS (NSEs) AND TOTAL ENROLMENTS1 1,000,000 Post-pandemic recovery well underway - all key 900,000 source markets grew in 2022 other than China 800,000 700,000 Favourable visa settings - to encourage return of 600,000 interna
Slide 5: ALG New Student Enrolments Rebounding
ALG NEW STUDENT ENROLMENTS (NSE) REBOUNDING 300 NSEs are a leading indicator of total enrolments – T4’22 up 111% on PCP 252 Onshore market rebuilding 207 with ELICOS providers back to or above pre-pandemic levels Estimated 152 145 139 24 month average study duration to result in layering of 98 growt
Slide 6: Qualifications to Meet the Demand for Skilled Occupations
QUALIFICATIONS TO MEET THE DEMAND FOR SKILLED OCCUPATIONS FY22 FY21 Skilled Migration Quota increasing 195,000 vs 160,000 Skilled Priority List Key Findings Report 2022 EDU to benefit Delivers qualifications to meet 25 ANZSCO occupation codes, Child Care Worker and Aged from focus on including 15 on
Slide 7: 2022 Highlights
2022 HIGHLIGHTS s S > ie ¥\ 7 1 fl X : ,
Slide 8: Operational Highlights
OPERATIONAL HIGHLIGHTS Ikon Total Rebound in ALG Opened New Acquired Nurse Enrolments NSEs Sydney Campus Training Term 4, 2022 up 111% on Australia1 up 35% PCP to 207 1,621 sqm purpose-built education space Growth continuing - Expected completion Term 1, 2023 up a Trimester 1, 2023 2Q 2023 further 2
Slide 9: Financial & Student Metrics
FINANCIAL & STUDENT METRICS FINANCIALS STUDENT METRICS FY22 vs FY21 FY22 vs FY21 Revenue $18.1m $22.0m Total Enrolments3 6,463 8,898 EBITDA1 ($1.5m) $2.0m New Student Enrolments 1,036 1,115 (NSEs) DEC 22 DEC 21 Cash Balance2 $6.1m $6.3m Letters of Offer 2,732 2,107 Revenue and EBITDA expected to imp
Slide 10: Program Strategy Unfolding
PROGRAM STRATEGY UNFOLDING Higher Value Longer Study Alignment to Expansion of Leverage Online Courses Duration Skills Shortages Course Portfolio Delivery 100% of Ikon FY22 26 months in FY22 vs 22 73% of FY22 total 22 courses in FY22 Online total revenue from HE vs months in FY18 enrolments in vs 14
Slide 11: Capacity for Growth
CAPACITY FOR GROWTH NATIONAL CAMPUS FOOTPRINT 8 campus locations across 5 states + Online 54 Classrooms 2,302 sqm space in Sydney operating at 46% capacity IKON & ALG BRISBANE CAMPUS IKON & ALG MELBOURNE CAMPUS 2,099 sqm space in Melbourne operating at 45% capacity IKON & ALG BRISBANE CAMPUS ALG MEL
Slide 12: Financial Results
02 FINANCIAL RESULTS
Slide 13: Revenue and Earnings Down, Per Guidance
REVENUE AND EARNINGS DOWN, PER GUIDANCE Group Profit & Loss Statement FY22 FY21 Variance Variance $'000 $'000 $'000 % Ikon revenue up 31%, not sufficient ALG and Ikon Total revenue and other income 18,120 22,324 (4,204) (18.8%) to offset 37% decline in ALG Cost of sales (8,916) (10,869) 1953 18.0% r
Slide 14: Net Assets Improved
NET ASSETS IMPROVED Consolidated Balance Sheet As at 31-Dec-22 31-Dec-21 Variance $'000 $'000 $'000 Cash and cash equivalents 6,075 6,275 (200) Trade and other receivables 1,229 293 936 Cash improved to $6.8m at Goodwill 11,918 11,918 - 31-Jan-23 Intangibles 1,670 1,663 7 Plant & equipment 2,754 2,6
Slide 15: Cash Flow Bridge
CASH FLOW BRIDGE ($’000) Capital raise well supported by Board, management and institutional investors. New strategic substantial shareholder, Mulpha Australia $4.5m to be paid on completion of Nurse Training Australia acquisition – expected 2Q 2023 Capex includes move to new Sydney campus, providin
Slide 16: Business Unit Performance
03 BUSINESS UNIT PERFORMANCE
Slide 17: Business Unit Performance
BUSINESS UNIT PERFORMANCE FY22 FY21 FY22 FY21 Ikon FY22 total enrolments up 35% and growth continuing – Trimester 1, 2023 up 40% on PCP Revenue $7.9m $6.0m $10.2m $16.3m ALG total enrolments fell 38% EBITDA $0.5m $0.4m ($0.5m) $2.9m in 2022, however new student enrolments are rebounding – Term 4, 20
Slide 18: Enrolments
ENROLMENTS Total student and unit enrolments Total enrolments and NSEs International students Strong shift to Gaining traction in Rebound in ALG represented 35% of Ikon’s Online in Ikon Early Childhood NSEs with increased FY22 total enrolments, domestic total Education - Ikon prominence of leveragin
Slide 19: Momentum Accelerating in Ikon
MOMENTUM ACCELERATING IN IKON Ikon Profit & Loss Statement 2H22 revenue up 20% on 1H22. FY22 FY21 Variance Variance $'000 $'000 $'000 % EBITDA up sharply to $0.6m Revenue from $0.1m loss in 1H22 International student revenue 2,259 1,001 1,258 125.7% Domestic student and other revenue 5,626 5,010 616
Slide 20: ALG Student Numbers Consolidating
ALG STUDENT NUMBERS CONSOLIDATING ALG Profit & Loss Statement Return to growth postponed due FY22 FY21 Variance Variance to visa processing delays and $'000 $'000 $'000 % availability and pricing of inbound Revenue International student revenue 10,185 15,809 (5,624) (35.6%) flights. Total enrolments
Slide 21: Capital & Debt Structure
04 CAPITAL & DEBT STRUCTURE
Slide 22: Capital Structure
CAPITAL STRUCTURE Supportive institutional investors alongside meaningful Board and Management alignment ENTERPRISE VALUE1 SHAREHOLDERS BY CATEGORY Number % Diluted Ordinary shares 165,214,443 96.6% Performance rights2 5,800,000 3.4% 21% Board & Management Fully diluted 171,014,443 100.0% Institutio
Slide 23: Debt Structure
DEBT STRUCTURE Gearing 31-Dec-22 31 Dec-21 Variance $'000 $'000 % Acquisition facility 2,250 2,750 (18%) $6.1m $3.8m Cash and cash equivalents 6,075 6,275 (3%) Cash at bank1 Net cash Net cash 3,825 3,525 9% Gearing ratio 31-Dec-22 31 Dec-21 Variance Gearing ratio - gross debt2 14.5% 18.8% (4.3%) Sup
Slide 24: Priorities & Outlook
05 PRIORITIES & OUTLOOK
Slide 25: Strategic Priorities
STRATEGIC PRIORITIES EBITDA positive Rebuild Student Broaden Course Enter Nurse Training in FY23 Numbers in ALG Offering Aligned to Market Harness growth from Skills Shortages Complete acquisition of ELICOS sector – feeder into 5+ new HE courses by 2025 Nurse Training Australia. VET and HE Commence
Slide 26: 2023 Outlook
2023 OUTLOOK NSE growth to continue, Total enrolments and revenue Completion of acquisition of harnessing the strength of continuing to increase Nurse Training Australia in 2Q23 English language enrolments Further operating leverage Revenue growth Total enrolments and revenue (margin expansion) as B
Slide 27: Appendices
APPENDICES Fpl eons:
Slide 28: Deep Corporate & Education Sector Experience
DEEP CORPORATE & EDUCATION SECTOR EXPERIENCE ALIGNED THROUGH SIGNIFICANT EQUITY INTEREST EXECUTIVE MANAGEMENT BUSINESS UNIT LEADERSHIP SHAREHOLDER STRUCTURE ADAM LYNDON RYAN DR EHSAN DAVIS CATZEL LAWSON AHMED Chief Executive Officer Chief Financial Officer General Manager, Executive Dean, & Managing
Slide 29: Global Recruitment Network
GLOBAL RECRUITMENT NETWORK visa processing delays and availability and pricing of inbound flights 304 active education agents Recruiting from UK 80 source markets 5.0% France for 1.6% China Nepal Japan 1.6% Mexico Spain 1.9% Italy 1.7% 7.4% Hong Kong South Korea 3.2% 2 business units in 1.1% 1.3% 1.
Slide 30: Group Half on Half Analysis
GROUP Half on Half Analysis Group 2H22 1H22 Variance 2H21 1H21 Variance $'000 $'000 % $'000 $'000 % ALG and Ikon Total revenue and other income 8,971 9,149 (1.9%) 10,715 11,609 (7.7%) Cost of sales (4,154) (4,762) 12.8% (5,160) (5,709) 9.6% Gross profit 4,817 4,387 9.8% 5,555 5,900 (5.8%) Gross marg
Slide 31: Ikon Half on Half Analysis
IKON Half on Half Analysis Ikon 2H22 1H22 Variance 2H21 1H21 Variance $'000 $'000 % $'000 $'000 % Revenue International student revenue 1,332 927 43.7% 674 327 106.1% Domestic student revenue 2,969 2,657 11.7% 2,656 2,354 12.8% Total revenue 4,301 3,584 20.0% 3,330 2,681 24.2% Cost of sales Commissi
Slide 32: ALG Half on Half Analysis
ALG Half on Half Analysis ALG 2H22 1H22 Variance 2H21 1H21 Variance $'000 $'000 % $'000 $'000 % Revenue International student revenue 4,616 5,569 (17.1%) 7,039 8,770 (19.7%) Domestic student and other revenue 54 (4) n/a 346 158 119.0% Total revenue 4,670 5,565 (16.1%) 7,385 8,928 (17.3%) Cost of sal
Slide 33: Disclaimer
DISCLAIMER This presentation, dated 27 February 2023, provides additional While all reasonable care has been taken in relation to the commentary on the Annual Report for the period ended 31 December preparation of this presentation, none of the Company, its 2022 for EDU Holdings Limited (EDU, EDU Ho
Slide 34: Contact
CONTACT Adam Davis, CEO E: adam.davis@eduholdings.com.au P: 1300 254 000 M: +61 408 400 888 Lyndon Catzel, CFO E: lyndon.catzel@eduholdings.com.au P: 1300 254 000 M: +61 414 907 384 34