Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (July 2021)
10 slides from Idp Education's investor presentation, Jul 1, 2021
Slide 1: Acquisition of the British Council's Indian IELTS Operations
Investor Presentation Acquisition of the British Council’s Indian IELTS Operations July 2021
Slide 2: Disclaimer
This presentation has been prepared by IDP Education Limited (“IDP Education”) and is general background information about IDP Education’s activities current as at the date of this presentation. The information given is in summary form and does not purport to be complete. It should be read in conjun
Slide 3: Transaction Summary
Transaction • IDP has entered into a binding agreement to acquire 100% of the British Council’s Indian IELTS operations Summary • Total consideration of £130m (A$238m1) on a cash free, debt free basis • Post transaction IDP will be the sole distributor of IELTS in India Strong Strategic • Highly str
Slide 4: The acquisition of the British Council's Indian IELTS operations is highly strategic for IDP
The acquisition of the British Council’s Indian IELTS operations is highly strategic for IDP ✓ Increased exposure to the high-growth Indian IELTS market, which has demonstrated resilience in the context of COVID-19 and has supportive long-term fundamentals including a young demographic, increasing w
Slide 5: Global IELTS test volumes
IELTS is distributed globally by IDP and the British Council, with 4.0m tests delivered in 2019 (prior to the impact of COVID-19) Number of IELTS Tests Conducted Annually • IELTS is jointly owned by IDP, the British Council and 4.5 Cambridge Assessment English 4.0 Global IELTS test volumes 3.5 • IDP
Slide 6: India is the largest IELTS testing market, with a strong track record of growth
India is the largest IELTS testing market, with a strong track record of growth Number of IELTS Tests Conducted Annually in India • India is the largest IELTS country by volume • Supportive long-term fundamentals, including: COVID – Relatively young population Impact – Economic growth and increasing
Slide 7: IDP's IELTS volumes in India have demonstrated resilience in the context of COVID-19
IDP’s IELTS volumes in India have demonstrated resilience in the context of COVID-19, with strong recovery post India’s “first-wave” IDP IELTS Indian Test Volumes (4-week rolling totals) • IELTS volumes rebounded strongly after the first COVID-19 wave in India in 2020 with volumes in Q1 CY21 20% abo
Slide 8: Acquired operations add meaningful scale to IDP's existing Indian IELTS testing business
Acquired operations add meaningful scale to IDP’s existing Indian IELTS testing business • IDP and British Council currently operate parallel pan-Indian Key Metrics of Business to be Acquired IELTS distribution networks Offices 4 • The acquisition adds a network of complementary test venues Test Loc
Slide 9: IDP will retain a strong balance sheet post transaction
IDP will retain a strong balance sheet post transaction IDP’s New Debt Facilities • As part of the transaction IDP negotiated a refinance of its existing bank facilities. The new facilities are summarised in Limit Term Comment Facility (A$m) (years) the table opposite Acquisition 210 3 Facility fund
Slide 10: Strategic acquisition
Strategic acquisition • Highly strategic acquisition, consolidating IELTS distribution in the largest IELTS market in the world India is a key long term growth market • Long term growth market driven by strong structural demand drivers Compelling financial metrics • An accretive transaction with pot