Idp Education Ltd. · ASX:IEL
Idp Education — FY2022 Earnings Presentation
31 slides from Idp Education's earnings presentation, Aug 25, 2022
Slide 1: IDP Education FY22 Financial Results
IDP Education FY22 Financial Results
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer 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 backgrou
Slide 3: 1. Business update
1. Business update 3 | FY22 Financial Results | 25 August 2022
Slide 4: FY22 performance summary
FY22 performance summary Record revenue and EBIT reflect the strength of IDP’s business strategy and the resilience of the industry Revenue EBIT (Adjusted)* NPAT (Adjusted)* Cash Balance $793m $163m $106.6m $197m Up 50% v FY21 Up 127% v FY21 Up 137% v FY21 Down v 30 June 2021 Student Placement Engli
Slide 5: Strong customer demand, supportive industry settings, expanding global footprint
Strong customer demand Supportive industry settings Expanding global footprint Record student placement Facing skills shortages, policy Ongoing investment to expand and test taker volumes makers in IDP’s key destinations IDP’s office and testing network demonstrate strong are introducing welcoming i
Slide 6: Strong growth demonstrates leadership position
Strong growth demonstrates Students were placed into a Record volumes with 1.92 m ACE Cambodia continues Revenue growth demonstrates leadership position, record 55,400 courses, up 45% tests supported by consolidation of India market to lead the country for English language teaching strong partnershi
Slide 7: 7 | FY22 Financial Results | 25 August 2022
7 | FY22 Financial Results | 25 August 2022
Slide 8: Student placement: Transformation success
Student placement: Transformation success Reinventing the sector Evolution from a physical office network Rapid to global omni-channel innovation industry transformer Core of new Digital marketplace, IDP Live, excellence rolled out across all channels with Supported by FastLane - the first Capabilit
Slide 9: Client Onboarding, Student Engagement, FY23 Priorities
Client Onboarding Student Engagement FY23 Priorities • 61 clients live across • Over 900,000 downloads of the • Expand inventory via increased Australia and UK (as at 30 IDP Live app (as at 23 Aug) client adoption and expansion June) into undergraduate programs • 3,000 students received formal • Lau
Slide 10: IELTS innovation through modernised platform
IELTS innovation Customer- focused through modernised platform Improved choice A multi-year investment in modernising the IELTS platform has provided the technical Improved foundations for new support products and improved customer experiences 10 | FY22 Financial Results | 25 August 2022
Slide 11: IELTS Platform, Experience, Innovation
IELTS IELTS IELTS Platform Experience Innovation Technical foundations in Improved experience Platform enabling new place assisting faster supporting customers to forms of testing products product development and achieve their best score and increased delivery increased flexibility options Demonstra
Slide 12: IELTS Online rolling out across the globe
Rolling out across Maintaining focus on Empowering customers the globe human conversation to choose their best option IELTS Online is available in IELTS Online includes video call IELTS is the only high-stakes test 31 countries, and on target speaking tests with trained offering customers a choice f
Slide 13: 3. Customer demand
3. Customer demand Aaidp
Slide 14: 45% increase in volumes as all key destinations re-open to students
45% increase in volumes as all key destinations re-open to students USA, 7% NZ, 1% Rest of World, 4% ↑ 154% ↓ 11% ↑ 46% Rest of Asia, 13% ↑ 49% Indonesia, 2% ↑ 28% Canada, 27% ↑ 50% UAE, 3% ↑ 28% 55,400 55,400 India, 53% Thailand, 3% ↑ 78% Australia, 36% ↑ 517% ↑ 39% Up 45% v FY21 Australia, 4% Up 4
Slide 15: Continued strong growth for Northern Hemisphere countries while Australian rebound commences
Continued strong growth for Northern Hemisphere countries while Australian rebound commences Student Placement Volumes IDP IELTS Volumes IDP IELTS tests (‘000) # of APF’s* (‘000s) AU volumes MD volumes * APF is Application Processing Fee, being the fee IDP Education receives from its client educatio
Slide 16: UK, Canada, USA and Ireland; Australia and New Zealand
Continued strong growth for Northern Hemisphere countries while Australian rebound commences UK, Canada, USA and Ireland Australia and New Zealand Qualified leads Applications Qualified leads Applications +36% (v pcp) +54% (v pcp) +36% (v pcp) +33% (v pcp) 16 | FY22 Financial Results | 25 August 202
Slide 17: Unified operating model in the world's largest English language testing market
A unified operating model is now in place in the world’s largest English language testing market Total IELTS tests in India Integrated operations • Simplified distribution arrangements driving improved experience for test takers • Financial synergies significantly ahead of plan Number of IELTS tests
Slide 18: 4. Financial results
4. Financial results 18 | FY22 Financial Results | 25 August 2022
Slide 19: 127% increase in EBIT (Adjusted) driven by a 50% increase in revenue
127% increase in EBIT (Adjusted) driven by a 50% increase in revenue Constant Full Year Actuals Growth • Total revenue up 50% vs FY21 driven by both IELTS and student placement Currency Twelve Months to 30 June FY22 FY21* $m % Growth (%)** English Language Testing 511.4 325.6 185.7 57% 56% • Strong
Slide 20: A strong rebound in IELTS and Northern Hemisphere student placement volumes
A strong rebound in IELTS and Northern Hemisphere student placement volumes Full Year Actuals Growth Constant Currency Volumes Twelve Months to 30 June FY22 FY21 ‘000s / $ % Growth (%)* • Strong IELTS volume growth in the majority of countries in FY22 Volumes (000s) with Indian acquisition adding to
Slide 21: Increasing overheads reflect investment across the business
Increasing overheads reflect the investment being across the business following a period of disciplined cost controls Overhead Costs Over Time* 149 130 125 • Overhead costs (pre AASB16) rose 34% for the year as broad based hiring and network expansion was undertaken to 114 109 drive future growth 10
Slide 22: Operating leverage drives margin expansion
Operating leverage drives margin expansion despite ongoing investment for future growth Gross Profit Margins EBIT and NPAT Margins (Adjusted)* NPAT (Adjusted)* EBIT (Adjusted)* IELTS Student Placement Group total * EBIT and NPAT margins are “Adjusted” to exclude merger and acquisition expenses which
Slide 23: Strong balance sheet with $196m of cash as at 30 June 2022
Strong balance sheet with $196m of cash as at 30 June 2022 As at 30 June 2022, A$ million 30-Jun-22 30-Jun-21 Change Current assets Cash and cash equivalents 196.6 306.9 -110.3 Cash Trade and other receivables 93.2 72.4 20.8 • Lower cash balance reflects the completion of the Indian Contract assets
Slide 24: 24 | FY22 Financial Results | 25 August 2022
24 | FY22 Financial Results | 25 August 2022
Slide 25: Summary
Summary Record financial results • Strong revenue (+50%) and profit growth (EBITA +127%) for FY22 • Expanding margins evidencing operational leverage • Strong volume growth evidence of the underlying structural demand for global education and migration Positive industry dynamics • Supportive post-st
Slide 26: 6. Appendices
6. Appendices Aaidp
Slide 27: Revenue and EBIT by Geographic Segment
Revenue and EBIT by Geographic Segment Full Year Actuals Growth • Asia total revenue growth driven by strong rebound in Twelve Months to 30 June FY22 FY21 $m % both student placement volumes and IELTS volumes • India a key contributor to Asian segment with Indian Revenue student placement revenue up
Slide 28: Gross margin expansion in student placement and IELTS
Gross margin expansion in student placement and IELTS driven by increased volumes Revenue and GP by Product Segment Full Year Actuals Growth Constant Currency • Gross profit margins in IELTS rebounded to 45% driven by Twelve Months to 30 June FY22 FY21 $m % Growth (%)* better capacity utilisation in
Slide 29: Summary Income Statement pre and post AASB16
Summary Income Statement pre and post AASB16 Growth Twelve Months to 30 June FY22 FY21* (FY22 pre AASB 16 vs. Constant Currency FY21 pre AASB 16) Growth (%) ** • IDP adopted AASB16 Leases from 1 July 2019 Post Pre Pre (FY22 pre AASB 16 vs. A$m % FY21 pre AASB 16) • Post AASB16 overhead costs in FY22
Slide 30: Summary of cashflow
Summary of cashflow Full Year Actuals Growth Twelve Months to 30 June FY22 FY21 $m % EBITDA 197.1 101.7 95.4 94% • GOCF** of $193m reflects 98% conversion from reported EBITDA for FY2 Non-cash items 12.0 4.2 7.8 186% • Capital expenditure was 52% higher than FY21 levels Change in working capital -16
Slide 31: Slide 31