Idp Education Ltd. · ASX:IEL
Idp Education — FY2017 Earnings Presentation
23 slides from Idp Education's earnings presentation, Aug 22, 2017
Slide 1: FY17 Results Presentation
For personal use only FY17 Results IDP Education FY17 Results Presentation 22 August 2017
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only Disclaimer Non-IFRS Financial Information The material in this presentation has been prepared by IDP IDP Education uses certain measures to manage and report on Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP its business that are not recog
Slide 3: Presenters and Contents
Presenters Andrew Barkla - Chief Executive Officer For personal use only Murray Walton - Chief Financial Officer Contents 01 FY17 Highlights 02 Strategy 03 Financial Results Appendices 3 | FY17 Results Presentation | 22 August 2017
Slide 4: FY17 Highlights
For personal use only FY17 Highlights 01 4 | FY17 Results Presentation | 22 August 2017
Slide 5: FY17 Highlights
FY17 Highlights Strong operating and financial performance For personal use only Revenue EBITDA NPATA NPAT $394.2m $68.4m $42.6m $41.5m Up 13% on a constant Up 17% on a constant Up 13% on a constant Up 10% on a constant currency basis currency basis currency basis currency basis Dividend English Lan
Slide 6: Strategy
For personal use only Strategy 02 6 | FY17 Results Presentation | 22 August 2017
Slide 7: Our vision
Our vision For personal use only To build a global platform and connected community to guide international students along their journey to achieve their lifelong learning and career aspirations. Discover (Hotcourses) and IDP) Convert (IDP) Support (IDP) 7 | FY17 Results Presentation | 22 August 2017
Slide 8: IDP's Digital Transformation
IDP’s Digital Transformation A bold strategy to transform our industry by establishing a digital platform that enables and empowers our customer’s journey For personal use only Deliver world- leading capabilities and services… World’s best Leading Digitising Global contact Virtual Leading office Val
Slide 9: IDP's Digital Transformation
IDP’s Digital Transformation A three year digital transformation program For personal use only Design and Delivery Timeline • A $20m investment over three years (FY17-FY19) Q1 Q2 Q3 Q4 Q2 Q4 FY17 FY17 FY17 FY17 FY18 FY18 • Strategy • Student, • World class • Platform • Limited • Progressive designed
Slide 10: Financial Summary
For personal use only Financial Summary 03 10 | FY17 Results Presentation | 22 August 2017
Slide 11: FY17 Overview
FY17 Overview Strong earnings growth with EBITDA up 17% on a constant currency basis For personal use only Income Statement Summary Constant F ul l Y ear Ac tual s Grow th Currenc y T w el ve Months to 30 June F Y 17 F Y 16 $m % Grow th ( %) * • Revenue growth of 13% (constant currency basis) Englis
Slide 12: Key Operating Metrics
Key Operating Metrics Solid volume growth across all products For personal use only Summary of Key Operational Metrics F ul l Y ear Ac tual s Grow th Constant Currenc y Volumes T w el ve Months to 30 June F Y 17 F Y 16 ‘000s / $ % Grow th ( %) * • IELTS volume growth of 6% Vol umes ( 000s) despite d
Slide 13: Student Placement Volumes
Student Placement Volumes China & India - the key engines of growth For personal use only Number of course enrolments by source country (FY17) Number of course enrolments by destination country (FY17) Rest of World, 6% USA, 3% NZ, 2% ↑ 11% ↓ 35% ↑ 45% Canada, 7% ↑ 127% Rest of Asia, 16% China, 31% ↓
Slide 14: English Language Testing
English Language Testing IELTS maintains its global leadership in high stakes English Language Testing For personal use only Continued global leadership in test volumes… Now recognised by over 10,000 organisations 3.0 million Required by Governments Required by Education Providers Geographic Expansi
Slide 15: Segmental Earnings
Segmental Earnings Strong Growth in Asia & RoW with Australasia showing improvement in H2 FY17 For personal use only Revenue and EBIT by Geographic Segment F ul l Y ear Ac tual s Grow th • Strong performance from India T w el ve Months to 30 June F Y 17 F Y 16 $m % and China underpin Asia segment Re
Slide 16: Foreign Exchange
Foreign Exchange Strong underlying operational performance with foreign exchange movements a headwind in FY17 For personal use only Revenue (A$m) EBITDA (A$m) 45.0 394.2 9.9 68.4 361.6 12.5 61.1 2.6 349.2 58.5 FY16 Foreign FY16 Underlying FY17 FY16 Foreign FY16 Underlying FY17 currency restated at o
Slide 17: Cashflow & Gearing
Cashflow & Gearing Strong operating cashflow and net cash position at year end For personal use only Summary Cash Movements (A$m) • Strong year of 45.6 37.9 cash generation • Operating cash flow up 33% on FY16 • Borrowings balance as at 30 June A$39.6m • Net Cash $2.4m 6.9 • HC acquisition facility
Slide 18: Summary
Summary Continued growth provides solid foundations for digital transformation For personal use only Strong financial performance with record revenue and earnings in FY17 Hotcourses acquisition enhances our digital reach and capability Aligned to macro trends in key markets for international e
Slide 19: Appendices
For personal use only Appendices A 19 | FY17 Results Presentation | 22 August 2017
Slide 20: Product Category Summary
Product Category Summary Strong margin expansion in IELTS For personal use only Revenue and GP by Product Segment F ul l Y ear Ac tual s Grow th Constant Currenc y T w el ve Months to 30 June F Y 17 F Y 16 $m % Grow th ( %) * • Strong margin expansion in Revenue English Language testing driven by ef
Slide 21: Expenses
Expenses Employee expenses represent 63% of overheads For personal use only Expenses Summary F ul l Y ear Ac tual s Grow th Constant Currenc y T w el ve Months to 30 June F Y 17 F Y 16 $m % Grow th ( %) * • Investments made in headcount and occupancy Direct Costs 181.4 173.3 8.2 5% 8% in FY17 includ
Slide 22: Cash Flow
Cash Flow Strong Cash generation with GOCG/EBITDA = 113% For personal use only Summary Cash Flow F ul l Y ear Ac tual s Grow th T w el ve Months to 30 June F Y 17 F Y 16 $m % EBITDA 68.4 61.1 7.3 12% • GOCF* of $77.0m reflects 113% Non-cash items 6.0 2.5 3.6 146% conversion from reported EBITDA refl
Slide 23: Balance Sheet
Balance Sheet $2.4m net cash position at 30 June 2017 For personal use only Consolidated historical balance sheet June year end , A$ mil l ion 30-Jun-17 30-Jun-16 Change • Borrowings balance as at 30 June A$39.6m Current assets Cash and cash equivalents 42.0 35.4 6.6 • HC acquisition facility ˗ £27.