Slide 1: IDP Education FY20 Financial Results
IDP Education FY20 Financial Results
Slide 2: 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
Business update
Slide 4: Solid performance despite COVID-19 headwinds in Q4
Solid performance despite COVID-19 headwinds in Q4 Revenue EBIT NPATA Cash Balance $587 m $107.8 m $70.4 m $307 m down 2% Up 11% Up 3% As at 30 June 2020 Student Placement English Language Testing English Language Teaching Digital Marketing 51,000 1,095,000 94,400 $27.3 m Courses, up 0.2% Revenue, u
Slide 5: COVID-19: How we responded
COVID-19: How we responded Accelerated digital Prudent and decisive Strong lead generation transformation capital management and pipeline nurturing Rapid innovation enabled by $254m equity raise and $175m Authoritative content and SEO investment in digital capability working capital facility driving
Slide 6: Operational status
Operational status A progressive reopening of offices and IELTS test centres after a near global 109 of 127 student placement offices are open* IELTS testing has resumed in 53 out of 55 countries in IDP language schools in Vietnam re-opened in April. IDP Connect remained fully operational and a crit
Slide 7: Leveraging investment in technology to drive innovation
Leveraging investment in technology to drive innovation New products enabled us to A bespoke virtual events platform was introduced to An online test was introduced to help students progress IDP’s global counsellor network was trained to shift to online enable one-on-one interviews applications in c
Slide 8: Growing our pipeline of customers
Growing our pipeline of customers Total event attendance (FY20) Applied Volumes by destination (FY20) +229% • Effective virtual event and +11% +39% lead nurturing programs is creating a strong pipeline Zero of customers In FY19 +15% • Investment in digital +36% +10% marketing capability is v FY19 de
Slide 9: 74% of students with current offers holding on to plans
IDP Connect research* shows students are holding on to their study intentions Intention to commence study as planned Preference of delivery mode Online but transition Defer entry to Undecided to face-to-face study face-to-face 74% of students with current Students are warming to the blended offers a
Slide 10: Test volumes
Testing volumes Paper based (four weekly rolling totals) Computer-delivered (four weekly rolling totals) • IELTS volumes are at the early stages of recovery as testing centres reopen • Smaller computer-delivered testing centres are more flexible in COVID-19 Test volumes environment • Paper-based tes
Slide 11: Omni-channel and data strategy positioning IDP
Vision on track Omni-channel and data Add vision: strategy positioning IDP as the industry transformer Bullet bullet Bullet • IDPBullet continues to execute its vision of building a global platform and connected community for New opportunities international students • Events of this year are reinfor
Slide 12: Financial results
Pictured: Computer-delivered IELTS centre Financial results
Slide 13: FY20 Overview
FY20 Overview EBIT growth of 11% despite COVID headwinds Income Summary Statement Ful l Y ear Ac tual s Grow th Constant Currenc y T w el ve Months to 30 June FY 20* FY 19 $m % Grow th ( %) ** • Revenue growth of 19% for the 9 months to 31 March 20 reflected continuation of strong organic growth. Q4
Slide 14: Disciplined Cost Reduction
Disciplined Cost Reduction Appropriate cost reductions without impacting size and quality of talent pool Operating Costs Over time* 125 114 • Pro-active and disciplined cost reduction initiatives actioned across the business 105 • Overhead costs per month averaged A$15m in H2, down 28% 94 from the A
Slide 15: Key Operating Metrics
Key Operating Metrics Results show the benefits of a diversified multi-destination model Summary of Key Operational Metrics Ful l Y ear Ac tual s Grow th Constant Currenc y Volumes T w el ve Months to 30 June FY 20 FY 19 ‘000s / $ % Grow th ( %) ** Vol umes ( 000s) • IELTS volumes impacted by broad-
Slide 16: Strong Margin Performance
Strong Margin Performance Rising GP Margins highlights variable cost nature of IELTS Total Gross Profit Margins • Continuation of strong GP margin performance • H2 FY20 GP margins 4.0% above H2 FY19 delivering a 2.9% increase for the full year • IELTS, student placement and digital marketing & event
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet Strong Balance sheet with $307m of cash and access to undrawn working capital facilities totalling $175m As at 30 June 2020, A$ mil l ion 30-Jun-20 30-Jun-19 Change Current assets Cash Cash and cash equivalents 307.1 56.1 251.0 • Cash balance of A$307m reflects A$27m reduc
Slide 18: Summary
Summary
Slide 19: Summary
Summary Digital transformation accelerated • Investment in technology platform, digital and marketing capability enabled IDP to respond quickly to change • New omni-channel services nurturing closer customer connections • Investment in data science capabilities unlocking operational, product and ins
Slide 20: Appendices
Appendices 20 | FY20 Financial Results | 20 August 2020
Slide 21: 3% increase in volumes despite COVID-19 challenges
3% increase in volumes despite COVID-19 challenges NZ, 3% Rest of World, 4% USA, 5% ↑21% ↑ 17% ↑ 50% Rest of Asia, 14% ↓ 10% Canada, 22% Hong Kong, 2% ↑ 29% ↑ 0% India, 43% Indonesia, 2% ↑ 18% ↑ 7% UAE, 3% ↑ 10% Up 3% v FY19 Up 3% v FY19 Vietnam, 5% ↓ 21% Australia, 6% ↑ 14% UK, 22% Australia, 47% ↑
Slide 22: AASB16
AASB16 Summary Income Statement pre and post AASB16 Grow th ( FY 20 p re Constant Currenc y T w el ve Months to 30 June FY 20 FY 19 AASB 16 vs. FY 19 Grow th ( %) * p re AASB 16) ( FY 20 p re AASB 16 P ost P re vs. FY 19 p re AASB AASB16 AASB 16 P re AASB 16 A$m % 16) • IDP adopted AASB16 Leases fro
Slide 23: Segmental Earnings
Segmental Earnings Strong growth in the key Asian markets Revenue and EBIT by Geographic Segment Grow th ( F Y 20 p re AASB Revenue F Y 20 F Y 19 16 vs. F Y 19 p re AASB 16) • Asia segment decline in revenue mainly due to decline in IELTS and Australian student placement volume T w el ve Months to 3
Slide 24: Product Category Summary
Product Category Summary Aggregate gross margins up strongly relative to pcp Revenue and GP by Product Segment F ul l Y ear Ac tual s Grow th Constant • IELTS revenue is 14% below last year on a constant currency Currenc y basis as a result of the restrictions in testing due to COVID-19, T w el ve M
Slide 25: Cashflow
Cashflow Reprioritised capital expenditure to strategic programs in line with transformation vision Summary of cash flow F ul l Y ear Ac tual s Grow th T w el ve Months to 30 June F Y 20 F Y 20 F Y 19 $m % P ost AASB 16 P re AASB 16 P re AASB 16 EBIT DA 148. 6 127. 0 115. 0 33. 6 29% • GOCF* of $115