Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (February 2021)
24 slides from Idp Education's investor presentation, Feb 24, 2021
Slide 1: IDP Education Half Year Financial Results
Pictured: Teams from IDP’s Digital Campus IDP Education Half Year Financial Results Six Months to 31 December 2020
Slide 2: Disclaimer
The material in this presentation has been prepared by IDP Education Limited (ASX: IDP Education uses certain measures to manage and report on its business that are IEL) ABN 59 117 676 463 (“IDP Education") and is general background information not recognised under Australian Accounting Standards. T
Slide 3: H1 business highlights
H1 business highlights
Slide 4: Regaining momentum and positioned to support the sector's recovery
Emerging as stronger leaders from global crisis Regaining momentum and positioned to support the sector's recovery Resilient business model: Diverse Demand remains: IELTS volumes Foundations for growth: Investment in business model and digital rebounding to pre-pandemic levels digital technology and
Slide 5: Strong foundations to take advantage of the rebound
Strong foundations to take advantage of the rebound Revenue EBIT NPATA Cash Balance $269m $47.3m $30.4m $293m Down 29% v pcp Down 43% v pcp Down 49% v pcp Down $14m v 30 June 20 Student Placement English Language Testing English Language Teaching Digital Marketing 21,200 540,300 37,300 $17.5m APFs,
Slide 6: Global platform and people investment driving innovation
Global platform and people investment driving innovation Developed new ways to stay connected with customers when they needed us most Study Abroad App: 87k downloads by 30 December. The app is enabling students to follow application progress in real-time IQ Services: New competitor tracking dashboar
Slide 7: IELTS digital transformation
IELTS digital transformation 20 new IELTS IELTS Ask IELTS Human Successful IELTS websites modernisation social conversations Indicator delivery launched content Remaining 34 country Major program New Ask IELTS Global campaign Indicator’s learnings will sites and multilingual underway to modernise ca
Slide 8: Test volumes
Testing volumes Paper based (four weekly rolling totals) Computer-delivered (four weekly rolling totals) • IELTS volumes have rebounded strongly and, in aggregate, are back at pre-COVID levels • Most countries are now Test volumes operating at or near full capacity with government restrictions being
Slide 9: Demand drivers for study abroad remain strong
Demand drivers Global platform: Search behaviour insights for study Organic web traffic on IDP websites* Student search by destination** abroad remain strong • Structural growth drivers for student placement and IELTS remain in place • Organic website traffic above pre-pandemic levels • Organic web
Slide 10: UK and Canada welcome students back to in-country studies
UK and Canada welcome students back to in-country studies • Open borders for most • Open borders for students • Borders remain closed international students • Work permit introduced in • Post-study work rights • Graduate Route (post- Jan 21 to encourage remain in place study work rights) students to
Slide 11: Early policy changes in US showing positive indications for the sector
Early policy changes in US showing positive indications for the sector Regulatory environment • Borders open, with some • Borders closed • Borders open for country restrictions • 1,000 returning students to international students • Optional Practical Training be welcomed back by April • Third Level
Slide 12: With unmatched services, global footprint and data insights, our teams are ready to lead
With unmatched services, global footprint and data insights, our teams are ready to lead the industry rebound • 1,200 • Six client teams in • 450 person Digital • Over 500 test • Data science counsellors key destination Campus locations capability • 120 offices markets • 100 marketing • Providing te
Slide 13: Financial results
Pictured: Computer-delivered IELTS centre Financial results
Slide 14: H1 FY21 Overview
H1 FY21 Overview Regaining momentum despite declines v pcp Half Year Actuals Growth Constant Currency Six Months to 31 December H1 FY21 H1 FY20 $m % Growth (%)* • Revenue down 29% for H1 FY21 v pcp but up 29% v H2 FY20 English Language Testing 158.3 215.3 -57.0 -26% -22% • Relaxation of COVID-19 res
Slide 15: Key Operating Metrics
Key Operating Metrics A strong rebound in IELTS volumes v H2 FY20 Summary of Key Operational Metrics Half Year Actuals Growth Constant Currency Volumes Six Months to 31 December H1 FY21 H1 FY20 ‘000s / $ % Growth (%)* Volumes (000s) • IELTS volumes rebounded from Apr/May lows recording a 49% English
Slide 16: Overheads and Cash Flow
Overheads and Cash Flow A rebound in revenue and ongoing expense discipline drives strong cash performance • Pro-active and disciplined cost reduction initiatives actioned across the business • Overhead costs per month averaged A$16.4m in H1 (pre AASB16) – down 21% v pcp and up only 9% from H2 FY20
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet Strong Balance sheet with $293 m of cash and access to undrawn working capital facilities totalling $175m Summary Balance Sheet As at 31 December 2020, A$ million 31-Dec-20 30-Jun-20 Change Current assets Cash Cash and cash equivalents 292.8 307.1 -14.3 • Cash balance of A
Slide 18: Summary
Summary
Slide 19: Summary
Summary • Multi-destination model providing choice for students and resilience for IDP • Strong rebound of IELTS test volumes • Ongoing network expansion via computer-delivered centre roll- out • Digital platform, combined with increased marketing capabilities, are building higher quality pipeline a
Slide 20: Appendices
Appendices
Slide 21: AASB16
AASB16 Summary Income Statement pre and post AASB16 Growth Constant Currency Six Months to 31 December H1 FY21 H1 FY20 (FY21 pre AASB 16 vs. Growth (%) * FY20 pre AASB 16) (FY21 pre AASB 16 vs. • IDP adopted AASB16 Leases from 1 July 2019. Table Post AASB16 Pre Pre AASB A$m % FY20 pre AASB 16) oppos
Slide 22: Segmental Earnings
Segmental Earnings Revenue and EBIT by Geographic Segment Half Year Actuals Growth • The decline in revenue in Asia was greater than the group Six Months to 31 December H1 FY21 H1 FY20 $m % average due in part to the severe disruptions caused by widespread COVID-19 related lockdowns in IDP’s Indian
Slide 23: Product Category Summary
Product Category Summary Aggregate gross margins remain steady despite revenue declines during the period Revenue and GP by Product Segment Half Year Actuals Growth Constant Currency Six Months to 31 December H1 FY21 H1 FY20 $m % Growth (%)* • IELTS margins remained steady despite productivity chall
Slide 24: Cashflow
Cashflow Reprioritised capital expenditure to strategic programs in line with transformation vision Summary of cash flow Half Year Actuals Growth Six Months to 31 December H1 FY21 H1 FY20 $m % • GOCF* of $62m reflects 91% conversion from reported EBITDA 68.0 106.2 -38.2 -36% EBITDA Non-cash items 2.
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