Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (February 2023)
24 slides from Idp Education's investor presentation, Feb 23, 2023
Slide 1: IDP Education H1 FY23 Financial Results
IDP Education H1 FY23 Financial Results
Slide 2: Disclaimer Non-IFRS Financial Information
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 its Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP Education") business that are not recognised under Australian Accounting and is g
Slide 3: Business update
Business update f |
Slide 4: Record half-year performance reflecting IDP's leadership position
Record half-year performance that reflects IDP’s leadership position and innovation in a rebounding industry Revenue EBIT (Adjusted)* NPAT (Adjusted)* Interim Dividend $502m $123m $84.4m 21 cps Up 26% Up 53% Up 59% Up 56% Student Placement English Language Testing English Language Teaching 43,000 1,
Slide 5: Strong demand and positive structural tailwinds
Strong demand and positive structural tailwinds Strong 5 3% Strong volume growth to Australia as students customer demand increase in student volumes pcp returned to study in country Government policy Supportive Policy environment settings in all industry Accommodative post-study destinations aimed
Slide 6: Aggregate student visa volumes surpassing pre-pandemic levels
Aggregate student visa volumes surpassing pre-pandemic levels Student Visas by Destination Contact detail Index = 100 (12 months ending 30 June 2019) Website Rolling 12 monthly data Zero In FY19 Notes- Australia – Department of Home Affairs: Student visas granted to offshore applicants in IDP source
Slide 7: Strategic initiatives
2 Strategic initiatives
Slide 8: IDP's scale, trusted brand and human connections are our competitive advantage
IDP’s scale, trusted brand and human connections are at the heart of our competitive advantage Global scale Trusted experts Contact detail Digital scale Independent education IDP and IELTS specialists websites and apps Website Hotcourses international University relationships Expert examiners Physic
Slide 9: 1.4m app downloads since launch: FastLane, via IDP Live
1.4m app downloads since launch FastLane, via IDP Live Our industry-changing innovation, now fast-tracking applications around the globe 1.4m* 75* 7,000* 3 point IDP Live app Clients on Formal offers increase in NPS for downloads FastLane finalised via our customers who up from 0.9m Up 14 from FastL
Slide 10: A modernised technology platform enabling product innovation
A modernised technology platform enabling product innovation New test delivery Online option for First test completed in More than 500,000 IDP platform being testing now available December 2022, IELTS app downloads since introduced globally in more than 40 providing test takers launch in May 2022, e
Slide 11: Financial results
3 Financial results
Slide 12: 53% increase in adjusted EBIT driven by 26% revenue increase
53% increase in adjusted EBIT driven by a 26% increase in revenue and rising margins Constant Half Year Actuals Growth Currency Six Months to 31 December H1 FY23 H1 FY22 $m % Growth (%)* • Total revenue up 26% vs pcp with growth in all divisions English Language Testing 285.4 256.7 28.7 11% 10% • St
Slide 13: Strong growth in student placement volumes underpinned by Australia
Strong growth in student placement volumes underpinned by Australia Half Year Actuals Growth Constant Currency Volumes Six Months to 31 December H1 FY23 H1 FY22 ‘000s / $ % Growth (%)* • IELTS volume growth of 5% represents a period of consolidation Volumes (000s) post a strong rebound in FY22. Engl
Slide 14: Australia accelerating out of the rebound
Australia accelerating out of the rebound Australia and New Zealand UK, Canada, USA and Ireland Qualified leads Applicants Qualified leads Applicants +22% +71% +12% (v pcp) +67% (v pcp) (v pcp) (v pcp) 14 | H1 FY23 Financial Results | 23 February 2023
Slide 15: Operating leverage in student placement driving margin expansion
Operating leverage in student placement business driving margin expansion Gross Profit Margins* Gross Profit (GP) • Strong GP performance across key business lines o IELTS GP +26% (v pcp) o Student placement GP + 69% (v pcp) o English Language Teaching GP + 99% (v pcp) • The group gross profit margi
Slide 16: Strong balance sheet with $135m of cash at 31 December 2022
Strong balance sheet with $135m of cash at 31 December 2022 As at 31 December 2022, A$ million 31-Dec-22 30-Jun-22 Change Current assets Cash & Debt Cash and cash equivalents 134.8 196.6 -61.8 • The settlement of the Intake acquisition in November 2022 was Trade and other receivables 110.1 93.2 16.9
Slide 17: Summary
4 Summary
Slide 18: Strong performance as IDP continues to execute its strategy
Strong performance as IDP continues to execute its strategy Strong student placement Supportive post-study work A unique combination of digital volume growth policies in place and physical solutions An ongoing program of innovation reinforcing IDP’s industry Demand for Australia Many countries looki
Slide 19: Appendices
5 Appendices
Slide 20: Revenue and GP by Product Segment
Revenue and GP by Product Segment Half Year Actuals Growth Constant Currency • Strong GP performance across key business lines Six Months to 31 December H1 FY23 H1 FY22 $m % Growth (%)* o IELTS GP +26% (v pcp) Revenue o Student placement GP + 69% (v pcp) o English Language Teaching GP + 99% (v pcp)
Slide 21: Summary Income Statement pre and post AASB16
Summary Income Statement pre and post AASB16 Growth Six Months to 31 December H1 FY23 H1 FY22 (H1FY23 pre AASB 16 vs. Constant Currency H1FY22 pre AASB 16) Growth (%) * • Pre-AASB16 overheads increased by 35%. (H1FY23 pre AASB 16 vs. Post Pre Pre AASB 16 AASB 16 AASB 16 A$m % H1FY22 pre AASB 16) • E
Slide 22: Revenue and EBIT by Geographic Segment
Revenue and EBIT by Geographic Segment Half Year Actuals Growth • The increase in revenue in Asia of 30% was across a broad base of countries led by India, Vietnam, Cambodia and Nepal. Six Months to 31 December H1 FY23 H1 FY22 $m % Student Placement revenue growth was 60% with Australian student pla
Slide 23: Summary of cashflow
Summary of cashflow Half Year Actuals Growth Six Months to 31 December H1 FY23 H1 FY22 $m % • The increase in working capital is primarily driven by the EBITDA 144.0 96.6 47.4 49% movement in contract assets during the period. This in turn reflects the strong growth in student placement revenue, Non
Slide 24: Slide 24
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