Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (February 2020)
19 slides from Idp Education's investor presentation, Feb 12, 2020
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 2019
Slide 2: Important notice and disclaimer
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 Australian Accounting Standards. These measure
Slide 3: Business update
Pictured: Staff from IDP’s Digital Campus Business update 3 | H1 FY20 Financial Results | 12 February 2020
Slide 4: Strong operating and financial performance
Strong operating and financial performance Revenue EBIT NPATA NPAT $379 m $86.9 m $59.5 m $57.7 m Up 25% Up 49% Up 42% Up 42% Interim dividend Student Placement English Language Testing English Language Teaching 16.5 cps 33,800 736,000 52,900 IELTS tests, up 11% Courses, up 15% Up 37% APFs, up 30% 4
Slide 5: Business highlights
Business highlights Key strategic milestone: New engine room for platform Global platform exceeding Record H1 volumes Record web traffic and build in Chennai launched expectations in terms of event attendance across pipeline growth and Computer-delivered IELTS global network conversion now available
Slide 6: Global platform build delivering benefits
Global platform build delivering benefits Unlocking benefits from an investment in technology and people World’s Leading Global Digitising Virtual Leading Student Career best course office contact student Agency CRM and Essentials support search network centre expos CMS 40 connected 127 Live in 18 5
Slide 7: Nurturing students through their critical decision journey
Nurturing students through their critical decision journey SEO and content Organic driving strong traffic up growth in traffic Early web search and web leads 35% • Investment in marketing resources and automation systems Digitised event format attracting record Event increasing lead conversion atten
Slide 8: Innovating the customer experience
• Record test volumes in H1 FY20 • IDP market share gains in key markets • Computer-delivered IELTS available in 167 centres (37 new centres in H1), and in 47 countries Pictured: Computer-delivered IELTS centre • Strong growth in the adoption of computer-delivered IELTS Innovating the customer exper
Slide 9: Financial results
Pictured: Computer-delivered IELTS centre Financial results
Slide 10: H1 FY20 Overview
H1 FY20 Overview Strong earnings growth with EBIT up 49% Income Summary Statement H al f Y ear Ac tual s Grow th Constant Currenc y • Revenue growth of 25% Six Months to 31 Dec emb er H 1 FY 20* H 1 FY 19 $m % Grow th ( %) ** English Language Testing 215.3 178.6 36.7 21% 15% • Strong revenue growth
Slide 11: AASB16
AASB16 Summary Income Statement pre and post AASB16 Constant Currency Growth (H1 FY20 pre AASB Six Months to 31 December H1 FY20 H1 FY19 Growth (%) * 16 vs. H1 FY19 pre AASB 16) (H1 FY20 pre AASB 16 vs. H1 FY19 pre AASB Post AASB16 Pre AASB 16 Pre AASB 16 A$m % 16) • IDP adopted AASB16 Leases from 1
Slide 12: Key Operating Metrics
Key Operating Metrics Strong volume growth driving performance Summary of Key Operational Metrics Half Year Actuals Growth Constant Currency Volumes Six Months to 31 December H1 FY20 H1 FY19 ‘000s / $ % Growth (%)* • 30% growth in SP volumes a highlight of the result Volumes (000s) • SP volume growt
Slide 13: Product Category Summary
Product Category Summary Aggregate gross margins up strongly relative to pcp Revenue and GP by Product Segment H al f Y ear Ac tual s Grow th Constant Currenc y Six Months to 31 Dec emb er H 1 FY 20 H 1 FY 19 $m % Grow th ( %) * • Group GP margin expansion driven by IELTS margin Revenue improvement
Slide 14: Cashflow
Cashflow Gross operating cash flow up 60% Summary of cash flow H al f Y ear Ac tual s Grow th Six Months to 31 Dec emb er H 1 FY 20 H 1 FY 20 H 1 FY 19 $m % P ost AASB 16 P re AASB 16 P re AASB 16 • GOCF* of $81.7m up 60% v pcp on a like for like basis (pre EBITDA 106.2 96.0 66.8 39.4 59% AASB 16) N
Slide 15: Summary
Summary
Slide 16: Summary
Summary Our Performance • Overall revenue up 25% with strong growth from each business line • Strong margin and cash flow performance • EBIT up 49% Strength in diverse global network • Multi-destination revenue growth of 63% • Significant contribution from India, Canada and United Kingdom markets Di
Slide 17: Appendices
Appendices 17 | H1 FY20 Financial Results | 12 February 2020
Slide 18: Segmental Earnings
Segmental Earnings Strong growth in the key Asian markets Revenue and EBIT by Geographic Segment H1 FY20 H1 FY19 Growth (H1 FY20 pre AASB 16 • Asia continues to be the core engine for growth with vs. H1 FY19 pre AASB 16) rising revenue and margins boosting total Six Months to 31 December Post AASB16
Slide 19: Consolidated Balance Sheet
Consolidated Balance Sheet Essentially a debt free balance sheet with only $1.7m of net debt as at 31 December 2019 As at 31 Dec emb er 2019, A$ mil l ion 31-Dec -19 30-Jun-19 Change Current assets Borrowings Cash and cash equivalents 61.0 56.1 4.9 • Drawn borrowings balance as at 31 December A$62.7
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