Edu Holdings Limited · ASX:EDU
Edu — FY2024 Earnings Presentation
36 slides from Edu's earnings presentation, Feb 26, 2025
Slide 1: FY24 Results Presentation
FY24 RESULTS PRESENTATION Delivering career-ready qualifications in Healthcare, Education and Community Services YEAR ENDED 31 DECEMBER 2024 1
Slide 2: Contents
CONTENTS 01 02 03 FY24 HIGHLIGHTS FINANCIAL BUSINESS UNIT RESULTS PERFORMANCE PG 5 PG 13 PG 18 04 05 06 CAPITAL AND PRIORITIES AND APPENDICES DEBT STRUCTURE OUTLOOK PG 23 PG 26 PG 29 1H24 RESULTS PRESENTATI ON 2
Slide 3: FY24 Snapshot
FY24 Snapshot COMPANY OVERVIEW INVESTMENT PROPOSITION 2 nationally accredited tertiary education providers 1 2 Quality tertiary In-demand course mix, education group aligned to long-term Higher Education (HE) Vocational Education skills shortages & Training (VET) A leading provider of higher and voc
Slide 4: Tightening regulatory environment
Tightening regulatory environment Bipartisan efforts to reduce net migration, particularly targeting the international student market. Measures include stricter visa policies and provider quality controls, creating regulatory uncertainty and headwinds for the sector. Education Services for Overseas
Slide 5: FY24 Highlights
01 FY24 HIGHLIGHTS FY24 RESULTS PRESENTATI ON 5
Slide 6: Highlights
Highlights Revenue surged NPAT turnaround Strong cashflow Selective buyback 96% of $5.6m generated completed Momentum FY24 NPAT of $2.6m, Net cash up $4.2m 9% of shares accelerated - 2H24 vs $3.0m loss in PCP on PCP, after $0.9m repurchased at 6c per revenue of $25.4m, 2H24 NPAT of $2.6m, selective
Slide 7: Key metrics
Key metrics FINANCIAL METRICS STUDENT METRICS FY24 vs FY23 FY24 vs FY23 Revenue1 $42.3m $21.6m Letters of offer 5,649 3,172 New student EBITDA2 $7.9m $0.5m enrolments (NSEs) 2,976 1,462 Net profit / (loss) after tax $2.6m ($3.0m) Enrolments3 11,053 6,807 1 Revenue includes $0.1m of rental income on
Slide 8: Multi-year analysis
Multi-year analyis1 Revenue ($'000) EBITDA ($’000)2,4 Earnings per share (cents)3 44,000 2.00 8,250 40,000 7,500 1.50 0.51 36,000 6,750 1.00 0.21 1.43 6,000 32,000 0.50 1.07 0.41 0.79 25,413 5,250 2,895 0.03 5,607 0.14 28,000 0.00 0.08 (0.17) 4,500 (0.36) 24,000 (0.50) (0.94) 3,750 2,552 (0.96) (1.8
Slide 9: HE (Ikon) momentum accelerated
HE (Ikon) momentum accelerated T3’24 enrolments up 161% on PCP, 2,600 2,492 Largely driven by international NSEs 2,400 Benefitting from low level of 2,200 completions (ie. graduations), given 3 to 4-year course durations 2,000 1,800 1,709 Number of enrolments 1,600 1,287 2,039 Sales, marketing and a
Slide 10: Positive trend in VET (ALG) NSEs
Positive trend in VET (ALG) NSEs NSEs a leading indicator, up 17% Bodes well for FY25 Term 1 Term 4 Term 3 300 292 286 Term 2 270 7 consecutive terms of total 252 249 enrolments growth 234 Smaller graduating cohorts replaced 225 217 by larger commencing cohorts 207 172 24-month average study duratio
Slide 11: Strategy unfolding
Strategy unfolding Higher value Longer average Alignment to Expansion of Leverage online courses study duration skills shortages course portfolio delivery HE now 67% of 32 months in FY24 vs 92% of FY24 29 courses in FY24 65% of domestic Group revenue 28 months in FY23 enrolments in vs 21 in FY23, wi
Slide 12: Operating leverage emerging
Operating leverage emerging Material increase in campus capacity to accommodate growth Brisbane Campus NATIONAL CAMPUS FOOTPRINT Melbourne Campus 9 campuses (+2) 67 Classrooms (+18) Brisbane Campus Melbourne Campus 4 states + Online Sydney Campus Sydney Campus 4,345 sqm1 2,330 sqm in Sydney (+89%) i
Slide 13: Financial Results
02 FINANCIAL RESULTS FY24 RESULTS PRESENTATI ON 13
Slide 14: Revenue and earnings materially improved
Revenue and earnings materially improved Consolidated Profit or Loss Statement Group FY24 FY23 Variance Variance $'000 $'000 $'000 % Ikon and ALG Total revenue and other income 42,264 21,559 20,705 96% Cost of sales (17,951) (10,176) (7,775) (76%) Revenue up 96% - $25.4m in 2H24, up Gross profit 24,
Slide 15: EBITDA bridge
EBITDA bridge ($’000) Operating leverage evident 14,000 12,930 12,000 254 (2,519) (115) (254) 10,000 Delivered earnings leverage while maintaining investment to support 8,000 7,857 growth (2,983) $12.9m of gross profit growth 6,000 produced a $7.3m improvement in EBITDA 4,000 2,000 544 - Increase De
Slide 16: Strong cash balance delivered by improved operating results
Strong cash balance delivered by improved operating results Consolidated Balance Sheet Cash increased by $4.2m to $5.0m (net of borrowings), driven by strong enrolments in Ikon and improved 31-Dec-24 31-Dec-23 Variance Group operating performance $'000 $'000 $'000 Right of use assets and lease Cash
Slide 17: Cash flow bridge
Cash flow bridge ($’000) Strong cash conversion 16,000 Strong operating cash inflows of 11,251 14,000 $11.3m, up $9.3m from $2.0m in PCP 12,000 (2,184) 10,000 Capex primarily driven by new programme development, library (3,148) resources and campus expansion 8,000 (880) (500) 6,494 (594) (214) (29)
Slide 18: Business Unit Performance
03 BUSINESS UNIT PERFORMANCE FY24 RESULTS PRESENTATI ON 18
Slide 19: Business unit performance
Business unit performance FY24 FY23 FY24 FY23 Strong performance across all key metrics Revenue1 $28.0m $11.6m $14.2m $10.0m Growth in both businesses, with EBITDA $8.9m $2.1m $1.3m ($44k) outperformance in HE Students at year- end2 2,492 955 1,608 1,145 Significant step-up in students at NSEs3 1,91
Slide 20: Enrolments
Enrolments Enrolments NSEs Enrolments NSEs 3,000 930 1,000 2,500 500 475 900 450 2,500 800 2,000 400 700 350 2,000 600 1,500 300 287 286 1,500 500 250 2,288 2,220 234 201 2,492 400 1,000 207 200 1,000 300 1,603 1,608 150 146 132 200 500 1,051 1,145 100 500 35 955 98 495 645 100 50 349 - - - - T3'20
Slide 21: Ikon momentum continuing
Ikon momentum continuing Profit or Loss Statement FY24 FY23 Variance Variance $'000 $'000 $'000 % Revenue International student revenue 21,377 5,491 15,886 289% Total revenue up 142% to $28.0m Domestic student and other revenue 6,669 6,105 564 9% (2H24: $17.6m) - driven by strong Total revenue 28,04
Slide 22: ALG improving
ALG improving Profit or Loss Statement FY24 FY23 Variance Variance $'000 $'000 $'000 % Revenue International student revenue 14,134 9,587 4,547 47% Revenue up 43% to $14.2m (2H24: Domestic student and other revenue 84 376 (292) (78%) $7.8m) Total revenue 14,218 9,963 4,255 43% Cost of sales Commissi
Slide 23: Capital and Debt Structure
04 CAPITAL AND DEBT STRUCTURE FY24 RESULTS PRESENTATI ON 23
Slide 24: Cash and debt
Cash and debt Gearing 31 Dec-24 31 Dec-23 Variance Variance $'000 $'000 $ % Acquisition facility 1,500 2,000 (500) (25%) $6.5m Cash at 31 Dec-24 Total gross debt 1,500 2,000 (500) (25%) Cash and cash equivalents 6,494 2,792 3,702 133% $1.5m Loan, amortising at Net cash / (debt) 4,994 792 4,202 531%
Slide 25: Capital structure
Capital structure Selective buyback completed with on-market buyback continuing Bought back 14,661,035 shares at $0.06 per share (~9% of issued capital). Expected to enhance future earnings per share ISSUED CAPITAL & ENTERPRISE VALUE1 SHAREHOLDERS1 Number % Diluted Ordinary shares 150,553,408 96% 18
Slide 26: Priorities and Outlook
05 PRIORITIES AND OUTLOOK FY24 RESULTS PRESENTATI ON 26
Slide 27: Current priorities
Current priorities Adapt to changing Strengthen student Product launch and Operational efficiency regulatory environment recruitment capability expansion Ongoing integration of Implement and monitor In Australia and offshore Launch of 4 new courses operating businesses to plans to manage accredited
Slide 28: FY25 outlook and guidance
FY25 outlook and guidance Revenue, EBITDA and NPAT up on Revenue, EBITDA and NPAT up on Revenue, EBITDA and NPAT up on FY24 FY24 FY24 Build on stronger second half - 2H24 • full-year benefit of progressive • full-year benefit of progressive delivered $25.4m revenue, $5.6m enrolment growth in FY24 en
Slide 29: Appendices
06 APPENDICES FY24 RESULTS PRESENTATI ON 29
Slide 30: Deep education sector and corporate experience aligned through significant equity interest
Deep education sector and corporate experience aligned through significant equity interest EXECUTIVE MANAGEMENT LEADERSHIP TEAM Adam Davis Lyndon Catzel Ryan Lawson Mark Falvo Gerald Ng Chief Executive Officer Chief Financial Officer General Manager, General Manager, General Manager, & Managing Dire
Slide 31: Global recruitment network
Global recruitment network Diverse student & agent mix 280 active education agents 80 source markets 2 business units 9 campuses 4 states + Online 1 Ikon and ALG international student enrolments 2 At 17 Jan 2025 FY24 RESULTS PRESENTATI ON 31
Slide 32: Group half on half analysis
Group Half on half analysis Group 2H24 1H24 Variance 2H23 1H23 Variance $'000 $'000 % $'000 $'000 % Ikon and ALG Total revenue and other income 25,413 16,851 51% 11,307 10,252 10% Cost of sales (10,333) (7,618) (36%) (5,473) (4,703) (16%) Gross profit 15,080 9,233 63% 5,834 5,549 5% Gross margin (%)
Slide 33: Ikon half on half analysis
Ikon Half on half analysis Ikon 2H24 1H24 Variance 2H23 1H23 Variance $'000 $'000 % $'000 $'000 % Revenue International student revenue 14,357 7,020 105% 3,216 2,275 41% Domestic student revenue 3,273 3,396 (4%) 2,832 3,273 (13%) Total revenue 17,630 10,416 69% 6,048 5,548 9% Cost of sales Commissio
Slide 34: ALG half on half analysis
ALG Half on half analysis ALG 2H24 1H24 Variance 2H23 1H23 Variance $'000 $'000 % $'000 $'000 % Revenue International student revenue 7,782 6,352 23% 5,072 4,515 12% Domestic student and other revenue 1 83 (99%) 187 189 (1%) Total revenue 7,783 6,435 21% 5,259 4,704 12% Cost of sales Commission (1,8
Slide 35: Disclaimer
Disclaimer This presentation, dated 26 February 2025, is supplementary to the While all reasonable care has been taken in relation to the Annual Report for the period ended 31 December 2024 for EDU preparation of this presentation, none of the Company, its subsidiaries, Holdings Limited (EDU, EDU Ho
Slide 36: Contact
CONTACT Adam Davis, CEO Lyndon Catzel, CFO E adam.davis@eduholdings.com.au E lyndon.catzel@eduholdings.com.au P 1300 254 000 P 1300 254 000 M +61 408 400 888 M +61 414 907 384 1H24 RESULTS PRESENTATI ON 36