Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (February 2022)
25 slides from Idp Education's investor presentation, Feb 9, 2022
Slide 1: IDP Education H1 FY22 Financial Results
IDP Education H1 FY22 Financial Results
Slide 2: Disclaimer and Non-IFRS Financial Information
Disclaimer Non-IFRS Financial Information The material in this presentation has been prepared by IDP Education Limited IDP Education uses certain measures to manage and report on its business that (ASX: IEL) ABN 59 117 676 463 (“IDP Education") and is general background are not recognised under Aust
Slide 3: 1. Business Update
1. Business Update
Slide 4: Record half-year revenue reflecting IDP's leadership position in a rebounding industry
Record half-year revenue that reflects IDP’s leadership position and innovation in a rebounding industry Revenue EBIT (Adjusted)* NPAT (Adjusted)* Cash Balance $397m $80.7m $52.9m $205m Up 47% Up 64% Up 70% Down v 30 June 2021 Student Placement English Language Testing English Language Teaching Digi
Slide 5: Accelerating from the rebound
Accelerating from Supportive industry Delivering industry-first the rebound settings technology solutions Strong volume growth in Government policy settings in Ongoing agenda of IELTS and Northern all destinations increasingly innovation reinforcing IDP’s Hemisphere study aimed at attracting unique
Slide 6: Added 54 computer-delivered test centres
Added 54 Completed refresh Integrated British Focused on IELTS Online, a computer-delivered of 54 websites Council’s IELTS platform new way to take test centres and commenced operations in modernisation and IELTS Academic, including 14 via IDP IELTS app high-growth expanding our launching in H2 Indi
Slide 7: Unified operating model in the world's largest English language testing market
A unified operating model now in place in the world’s largest English language testing market Total IELTS tests in India Expanded • Now operating 37 computer-delivered centres in 21 footprint in India cities, and 74 paper-based test locations Integrated • Simplified distribution arrangements driving
Slide 8: Providing test takers with a flexible way to take IELTS Academic
Providing test takers with a flexible way to take IELTS Academic IELTS Online is the next step in enhancing the test taker experience around the world. In developing IELTS Online, we are bringing all the existing benefits of IELTS for test takers and recognising organisations. IELTS Online uses soph
Slide 9: Growing demand for Northern Hemisphere countries while Australia remained subdued
Growing demand for Northern Hemisphere countries while Australia remained subdued UK, Canada, USA and Ireland Australia and New Zealand Qualified leads Applications Qualified leads Applications +59% (v pcp) +50% (v pcp) -13% (v pcp) -26% (v pcp) HI H2 H1 H2 H1 H2 H1 H2 H1 HI H2 H1 H2 H1 H2 H1 H2 H1
Slide 10: Strong desire to study abroad amid positive regulatory changes
Strong desire to study abroad amid Student Search by Destination* positive regulatory changes Zero • Canada showing In FY19 continued popularity, boosted by attractive post-study work landscape • Uptick in search interest for Australia coincides with relaxed border and post-study work extension * Pe
Slide 11: Ongoing agenda of innovation reinforcing unique digital and physical solutions
Ongoing agenda of innovation reinforcing IDP’s unique combination of digital and physical solutions 500,000 app downloads 27 universities onboarded Recommendation Engine Progress Tracker Student 360 Students Counsellors Institutions Empowers Enhances counsellor Drives recruitment students to make in
Slide 12: A unique service offering across a global footprint
A unique service offering across a global footprint and an ongoing agenda of digital innovation • 1,450 counsellors • Guiding institutions to • 530 person Digital Campus • IELTS Online launches in • Data science capability worldwide build data-led strategies • Leading infrastructure and early 2022 i
Slide 13: 2. Financial Results
2. Financial Results Ajdp
Slide 14: 64% increase in adjusted EBIT driven by a 47% increase in revenue
64% increase in adjusted EBIT driven by a 47% increase in revenue Constant Half Year Actuals Growth Currency Six Months to 31 December H1 FY22 H1 FY21* $m % Growth (%)** • Total revenue up 49% vs pcp on a constant currency basis English Language Testing 256.7 158.3 98.4 62% 66% • Strong rebound in I
Slide 15: A strong rebound in IELTS and Northern Hemisphere student placement volumes
A strong rebound in IELTS and Northern Hemisphere student placement volumes Half Year Actuals Growth Constant Currency Volumes Six Months to 31 December H1 FY22 H1 FY21 ‘000s / $ % • Strong IELTS volume growth in the majority of countries in H1 Growth (%)* Volumes (000s) with Indian acquisition boos
Slide 16: Increasing overheads reflect investments following disciplined cost controls
Increasing overheads reflect the investments made following a period of disciplined cost controls Overhead Costs Over Time* 133 125 21 • Overhead costs per month (preAASB16) averaged $22m in H1 FY22 v $16m in H1 FY21 and $18m in H2 FY21 114 20 109 105 8 • Marketing spend increased by 73% v pcp refle
Slide 17: Strong balance sheet with $205m of cash at 31 December 2021
Strong Balance sheet with $205m of cash at 31 December 2021 following completion of Indian acquisition As at 31 December 2021, A$ million 31-Dec-21 30-Jun-21 Change Current assets Cash Cash and cash equivalents 204.5 306.9 -102.4 • Lower cash balance reflects the completion of the Indian Trade and o
Slide 18: 3. Summary
3. Summary Ajdp
Slide 19: Strong volume growth evidence of the underlying structural demand
• Strong volume growth evidence of the underlying structural demand for global education and migration • Early signs emerging of a rebound in interest in Australia as a destination • Supportive post-study work policies in place in key destination markets • Many countries looking to migration to supp
Slide 20: 4. Appendices
Slide 21: Revenue and EBIT by Geographic Segment
Revenue and EBIT by Geographic Segment Half Year Actuals Growth • The increase in revenue in Asia was driven by India which Six Months to 31 December H1 FY22 H1 FY21 $m % posted revenue growth of ~150%. The segment benefitted from the acquisition of the IELTS British Council business Revenue in Indi
Slide 22: Aggregate gross margins decline as English Language Testing revenue accelerates
Aggregate gross margins decline as English Language Testing revenue accelerates during the period Revenue and GP by Product Segment Half Year Actuals Growth Constant Currency • Group GP margin fell slightly to 55% v pcp primarily as a Six Months to 31 December H1 FY22 H1 FY21 $m % Growth (%)** resul
Slide 23: Summary Income Statement pre and post AASB16
Summary Income Statement pre and post AASB16 Growth Constant Currency Six Months to 31 December H1 FY22 H1 FY21* (H1 FY22 pre AASB 16 vs. Growth (%) ** • IDP adopted AASB16 Leases from 1 July 2019 H1 FY21 pre AASB 16) (H1 FY22 pre AASB 16 vs. Post Pre Pre A$m % H1 FY21 pre AASB 16) AASB 16 * AASB 16
Slide 24: Summary of cashflow
Summary of cashflow Half Year Actuals Growth Six Months to 31 December H1 FY22 H1 FY21 * $m % EBITDA 96.6 67.4 29.2 43% • GOCF** of $102.8m reflects 106% conversion from reported EBITDA Non-cash items 3.1 2.1 1.0 48% Change in working capital 3.1 -8.0 11.1 -139% • Capital expenditure was 53% higher
Slide 25: Slide 25
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