Idp Education Ltd. · ASX:IEL
Idp Education — H1 FY2018 Earnings Presentation
23 slides from Idp Education's earnings presentation, Feb 7, 2018
Slide 1: Six Months to 31 December 2017
For personal use only Six Months to 31 December 2017 7 February 2018
Slide 2: Contents
Contents For personal use only 01 H1 FY18 Highlights 02 Business Update 03 Financial Results 04 Summary Appendices 2 | H1 FY18 Results Presentation | 7 February 2018
Slide 3: 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 Education Limited IDP Education uses certain measures to manage and report on its business that (ASX: IEL) ABN 59 117 676 463 (“IDP Education") a
Slide 4: H1 FY18 Highlights
For personal use only H1 FY18 Highlights 01
Slide 5: H1 FY18 Highlights
H1 FY18 Highlights For personal use only Revenue EBITDA • A$242m up 29%* • A$50.3m up 33%* NPATA Interim Dividend • A$31.6m up 22%* • 8.5 cps up 21% English Language Testing Student Placement • 558,900 IELTS tests up 28% • 22,200 APFs up 18% English Language Teaching Advertising and Events • 40,500
Slide 6: Business Update
For personal use only Update Business 02
Slide 7: Business Update
Business Update Student Placement For personal use only • New offices opened in India (3), West Jakarta, Dhaka, Hanoi, Sydney, Bali, Auckland, Wuhan and Suzhou • Student satisfaction remains high (9 in 10 students would refer IDP to family and friends) • Digital transformation program on target o Re
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 a connected customer journey For personal use only Deliver world- leading capabilities and services… World’s best Leading Digitising Global contact Virtual Leading offi
Slide 9: H1FY18 global platform roll-out progress and roadmap
H1FY18 global platform roll-out progress and roadmap H1 FY2018 Q3 Q4 FY19 For personal use only Capabilities CRM platform roll-out Integration of events, automation, CRM and CMS platforms MVP release one Remaining countries join global platform Global roll-out commences complete CMS and new websites
Slide 10: Computer-delivered IELTS
Computer-delivered IELTS On time launch with positive customer response For personal use only Product • Same test whether on paper or computer • Taken at an IELTS test centre • Reading, Listening and Writing components on computer • Speaking remains face-to-face with a qualified examiner Customer Be
Slide 11: Integration and digital capability
For personal use only Integration and digital capability • Significant contribution to building digital capability within IDP • Hotcourses’ Chennai tech team leading the roll-out of IDP.com • UK team integrated with Hotcourses management Traffic • Global traffic on HC websites up 6% on pcp • WhatUni
Slide 12: Financial Results
For personal use only Results Financial 03
Slide 13: H1 FY18 Overview
H1 FY18 Overview Strong Earnings growth with EBITDA up 33% on a constant currency basis For personal use only Income Statement Summary H al f Y ear Ac tual s Grow th Constant Currenc y Six Months to 31 Dec emb er H 1 FY 18 H 1 FY 17 $m % Grow th ( %) * • Revenue growth of 29% on a constant English L
Slide 14: Key Operating Metrics
Key Operating Metrics Strong volume growth driving performance For personal use only Summary of Key Operational Metrics H al f Y ear Ac tual s Grow th Constant Currenc y Volumes Six Months to 31 Dec emb er H 1 FY 18 H 1 FY 17 ‘000s / $ % Grow th ( %) * • Widespread strength in IELTS volumes with mos
Slide 15: Segmental Earnings
Segmental Earnings Double digit revenue growth in each segment For personal use only Revenue and EBIT by Geographic Segment H al f Y ear Ac tual s Grow th Six Months to 31 Dec emb er H 1 FY 18 H 1 FY 17 $m % • India, Vietnam and Cambodia key contributors to revenue growth in Asia Revenue Asia 154.1
Slide 16: Summary
For personal use only Summary 04
Slide 17: Summary
Summary For personal use only Financial Performance Benefits of Diversification • Double-digit growth driving strong • Result highlights the strength of top-line and bottom-line IDP’s diversified business model performance Digital Transformation Hotcourses • Project well advanced with positive • Acq
Slide 18: Appendices
For personal use only Appendices
Slide 19: Product Category Summary
Product Category Summary Margin expansion in all key product segments For personal use only 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 18 H 1 FY 17 $m % Grow th ( %) * • GP margin expansion in all key product segments Revenu
Slide 20: Expenses
Expenses Investing for future growth For personal use only Expenses Summary H al f Y ear Ac tual s Grow th Constant Currenc y Six Months to 31 Dec emb er H 1 FY 18 H 1 FY 17 $m % Grow th ( %) * • Overhead cost growth distorted by absence of Hotcourses in pcp Direct Costs 105.7 87.1 18.6 21% 25% Over
Slide 21: Balance Sheet
Balance Sheet Strong balance sheet with only A$12.7m of net debt For personal use only Consolidated historical balance sheet As at 31 Dec emb er, A$ mil l ion 31-Dec -17 30-Jun-17 Change Current assets • Interest bearing debt on the balance sheet comprised the following facilities o Acquisition faci
Slide 22: Cashflow
Cashflow Solid cash flow conversion For personal use only Summary of Cash Flow H al f Y ear Ac tual s Grow th Six Months to 31 Dec emb er H 1 FY 18 H 1 FY 17 $m % EBITDA 50.3 36.4 13.9 38% • GOCF* of $32.6m reflects 65% conversion from reported Non-cash items 2.0 1.7 0.3 19% EBITDA primarily reflect
Slide 23: Image gallery: digital transformation milestones
Image gallery: Milestones and key deliverables for the digital transformation H1 FY18 For personal use only 23 | H1 FY18 Results Presentation | 7 February 2018 Top row from left: Students test digital event solution, Celebrating Singapore Go-Live, Launching Live Chat, Exploring course options with s