Slide 1: FY22 Results Presentation
( ASX : ICT ) FY22 RESULTS PRESENTATION 29 August 2022
Slide 2: Contents
Contents 1. FY22 Results 2. Outlook 3. Appendix
Slide 3: FY22 Results
1 FY22 Results FY22 Results Highlights Key Financial Metrics Revenue & EBITDA Bridges Cost Synergies Achieved Exceeding Target Operating Segments Results Strong Increases in Operating Cash Flows Investing in Future Growth Resources for Growth
Slide 4: FY22 Results Highlights
FY22 Results Highlights Lead Indicators of Financials Future Performance Revenue ◆ Record revenues and International Student Higher Education - material profit growth Vocational – international students $46.8m 187% ◆ Exceptional positive new confirmed enrolments confirmed new enrolments operating c
Slide 5: Key Financial Metrics
Key Financial Metrics Revenue EBITDA* FY22 up 187% vs PCP FY22 up 37% vs PCP ◆ RedHill contributed ◆ Growth driven by $31.5m post acquisition RedHill acquisition and recovering international student revenues *EBITDA excludes M&A costs of $3.2m Operating Cash Flows excl. M&A Costs Cash on Hand Balanc
Slide 6: Revenue & EBITDA Bridges
Revenue & EBITDA Bridges Revenue Bridge by Operating Segment EBITDA Bridge – excl. M&A costs* ◆ RedHill operating segments (Greenwich, Technology & ◆ Non-variable cost base largely retained in FY22 to Design, and Go Study) contributed $31.5m of the revenue support fast growth as international border
Slide 7: Cost Synergies Achieved Exceeding Target
Cost Synergies Achieved Exceeding Target ◆ Annual cost synergies of $1.0m to Annualised Cost Synergies Achieved to Date $1.3m were targeted as part of the RedHill acquisition, to commence being r ealised within one year of deal completion ◆ Actual annualised cost synergies achieved to date of over
Slide 8: Segment Results: Go Study Australia
Segment Results: Go Study Australia ◆ EBITDA growth was achieved in FY22 against pcp as the business Pro-forma* Revenue Pro-forma* EBITDA commenced recovering from international border closures ◆ Offshore offices contributed 25% of total revenues in FY22, down from pre-COVID levels of approximately
Slide 9: Segment Results: Greenwich
Segment Results: Greenwich Pro-forma* Revenue Mix Pro-forma* Revenue ◆ Growth in EBITDA achieved in FY21 FY22 2H22 against pcp as Australia's borders re-opened to international students ELICOS1 student numbers started materially increasing in 2H22 when Australia's borders re-opened to internationa
Slide 10: Segment Results: Technology & Design
Segment Results: Technology & Design Pro-forma* Revenue Mix Pro-forma* Revenue ◆ FY22 EBITDA declined against pcp in line with revenue decline FY21 FY22 ◆ Revenues declined in FY22 against pcp due to international border closures and other COVID pandemic impacts affecting student study patterns ◆ B
Slide 11: Segment Results: Sero / Celtic / CTI
Segment Results: Sero / Celtic / CTI Revenue Mix Revenue ◆ EBITDA improved in 2H22 due to FY21 FY22 increased focus on cost management and implementation of a new management structure ◆ Domestic student revenues increased by 12% against pcp due to strong growth in Celtic healthcare courses (which gr
Slide 12: Strong Increases in Operating Cash Flows
Strong Increases in Operating Cash Flows ◆ Faster than expected recovery of international student numbers driving Operating Cash Flow excl. M&A Cash Flow Statement strong increases in operating cashflows in FY22 ◆ FY22 cashflows from investing activities includes $21.3m of cash received upon the ac
Slide 13: Investing in Future Growth
Investing in Future Growth Expanding campus capacity and investing in course development and equipment to accelerate growth Planned FY23 Capex iCollege Brisbane campus opened on 15 August 2022 - Day 1 13
Slide 14: Resources for Growth
Resources for Growth Cash on Hand Contract Liabilities (Deferred Revenues) ◆ Strong balance sheet position with available cash to invest in growth ◆ Substantial deferred revenue balance expected to convert to revenues within 12 months of balance date ◆ Minimal debt funding in place and convertible
Slide 15: Outlook
2 Outlook Strong Growth Indicators Student Numbers Exceeding Pre-COVID Levels Growth in Bachelor Degree Intakes Secured Future Revenues Higher Campus Utilisation to Improve Earnings Restructuring for Growth and Efficiencies The Future
Slide 16: Strong Growth Indicators: Go Study Australia
Strong Growth Indicators: Go Study Australia Re-opening of Australia's international borders has resulted in significant increases in student inquiries and new sales New Student Leads New Student Sales (Monthly Average) In The Month 7% Go Study Australia new student leads Go Study Australia new stud
Slide 17: Strong Growth Indicators: International Student English Language & VET
Strong Growth Indicators: International Student English Language & VET iCollege's dominant market position is delivering strong recovery of international student numbers iCollege | New Student Offers Of iCollege | New Confirmed Student Enrolment In The Month Enrolments In The Month New international
Slide 18: Student Numbers Exceeding Pre-COVID Levels
Student Numbers Exceeding Pre-COVID Levels ◆ English language student Actively Studying English Language numbers exceeding pre-COVID levels in 1Q23, and are Students at Greenwich expected to continue to increase further over the balance of FY23 ◆ Most international students undertake English languag
Slide 19: Growth in Bachelor Degree Intakes
Growth in Bachelor Degree Intakes Strong projected new enrolments for upcoming September 2022 bachelor degree intake to underpin revenue growth over the 2-3 year course delivery period New International Student Intake Numbers 7% The average lifetime value of each bachelor degree student is approxima
Slide 20: Secured Future Revenues
Secured Future Revenues Deferred revenue grew by $16.4m between December 2021 and June 2022, and is expected to grow further in 1Q23 Revenues will be recognised over the period that courses are ◆ Deferred revenue 'paid and due for delivered which is expected to be within the next 12 months payment'
Slide 21: Higher Campus Utilisation to Improve Earnings
Higher Campus Utilisation to Improve Earnings Number of Classrooms Campus Utilisation as iCollege Campus Locations by State in August 2022 at end of August 2022 11 iCollege Campuses Total Number of Classrooms 170 ◆ Carefully managing available campus capacity to service ◆ Additional Brisbane lease b
Slide 22: Restructuring for Growth and Efficiencies
Restructuring for Growth and Efficiencies ◆ Operating segments for domestic and international vocational (VET) students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ◆ Restructure has enabled centralisation of student support
Slide 23: The Future
The Future ◆ Strong recovery of international student numbers with Australia's international borders now open ◆ Positive government support to rebuild the education export industry ◆ Dominant market position in delivering English language courses ◆ Focus on feeding English language students into oth
Slide 24: Thank you!
Level 2, 7 Kelly Street, ULTIMO NSW 2007 www.icollege.edu.au Thank you! Glenn Elith Michael Fahey Chief Executive Officer Chief Financial Officer glenn.elith@icollege.edu.au michael.fahey@icollege.edu.au
Slide 25: Appendix
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Slide 26: Company Portfolio
Company Portfolio Go Study Australia has operations in France, Italy, Spain, Chile, Colombia, Broad Range of In-demand Courses Mexico & Australia ◆ Group offers a broad range of courses and delivery locations, including online Ability to Extend the Student Life Cycle ◆ Significant up-selling and cro
Slide 27: Differentiated Market Position
Differentiated Market Position iCollege Campus Locations Diversified earnings base ◆ Diverse course offerings in English language, vocational and higher education segments ◆ International student recruitment agency ◆ Broad domestic and international student mix National campus footprint with online
Slide 28: Reported Profit & Loss
Reported Profit & Loss Full Year Actuals FY22 FY21 Change $000's $000’s $000's % Revenue 46,819 16,277 30,542 188% Cost of sales (18,085) (7,239) (10,846) (150%) Gross profit 28,734 9,038 19,696 218% 61% 56% Other income 1,491 918 573 62% Employee costs (16,280) (3,506) (12,774) (364%) Receivables i
Slide 29: Segment Revenue & Profit Before Taxes
Segment Revenue & Profit Before Taxes 29
Slide 30: Non-IFRS Information
Non-IFRS Information The Company reports EBITDA in addition to the Profit after Tax. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the statutory profit under AAS adjusted for specific non-cash and significant items. The company’s dire
Slide 31: Important Notice & Disclaimer
Important Notice & Disclaimer Summary Information This Presentation contains summary information about iCollege Limited and its activities which is current only as at the date of this Presentation (unless specified otherwise). The material in this Presentation is general background information and d
Slide 32: Important Notice & Disclaimer
Important Notice & Disclaimer Forward-Looking Information This Presentation and any related materials and cross-referenced information contain forward looking statements, which may be identified by the use of terminology including ‘may’, ‘will’, ‘would’, ‘could’, ‘should’, ‘expects’, ‘believes’, ‘ta