Edu Holdings Limited · ASX:EDU
Edu — FY2021 Earnings Presentation
31 slides from Edu's earnings presentation, Aug 27, 2021
Slide 1: FY21 Results
BRISBANE CAMPUS FY21 RESULTS RESILIENT AND RESPONSIVE DURING COVID-19 LONG-TERM STRATEGY INTACT
Slide 2: FY21 Key Financial Metrics
FY21 KEY FINANCIAL METRICS1,2 1 The Company’s financial year ends 30 June. 1H refers to the 1st half of the financial year, from 1 July to 31 December. 2H refers to the 2nd half of the financial year, from 1 January to 30 June 2 Financial information presented in this results presentation for FY21 i
Slide 3: FY21 Key Highlights
FY21 KEY HIGHLIGHTS1 Growth in ALG student ALG Community Services Business remained numbers2 in Brisbane courses - standout profitable and Melbourne performer (NPAT before one-offs) Earnings supported by COVID Brisbane up 13.2% Up 12.8% relief and cost reduction Melbourne up 9.6% 56.9% of ALG enrolm
Slide 4: Group Overview
GROUP OVERVIEW Multi-sector tertiary education provider – vocational and higher education Current Health and Community Services focus – underpinned by strong employment growth Diversified student base – domestic and international Online and campus-based delivery with national campus footprin
Slide 5: Operating Business Units
OPERATING BUSINESS UNITS FY21 FY20 FY21 FY20 Revenue: $17.8m $19.1m $5.6m4 $6.5m4 EBITDA: $3.8m $5.3m $1.5m $2.0m Education sector1: Vocational Higher Education Student market1: International (100%) Domestic (85%) Student numbers2: 2,040 (-109) 419 (+40) Student recruitment1: Education agents Direct
Slide 6: Strategy on Track
STRATEGY ON TRACK Short-medium term Long-term Student growth (Ikon) and retention (ALG) Expand course offering – HE & VET Accelerate program development Extend customer lifetime value through Building capability in domestic student pathways and packaging e.g. BECE3 recruitment and online d
Slide 7: Operating Highlights
OPERATING HIGHLIGHTS UCW LIMITED FY21 RESULTS | 7
Slide 8: Student Enrolments
STUDENT ENROLMENTS1 ALG FY21 student enrolments down 3.9% on PCP Community Services courses continued to support growth, up 12.8% on PCP, now 56.9% of total enrolments Despite the pandemic, ALG had record enrolments in Brisbane and Melbourne, offset by declines in Sydney and Perth Rationalis
Slide 9: Student Profile
STUDENT PROFILE1 - Product diversification strategy working - Geographic diversification strategy - Duration extension strategy underway - Community services represents 65.6% paying off - Diplomas now 53.3% of ALG enrolments, with of total enrolments in 4Q21 (62.1% for - Sydney reached 56.4% at its
Slide 10: Building Foundations for Growth
BUILDING FOUNDATIONS FOR GROWTH 1 In May 2020, the Company exited one of its leases in Melbourne, reducing the number of available rooms. Post year-end the Company has entered into a new short-term lease in Melbourne commencing 1 September 2021. UCW LIMITED FY21 RESULTS | 10
Slide 11: Financial Results
FINANCIAL RESULTS UCW LIMITED FY21 RESULTS | 11
Slide 12: Key Highlights – Group Profit and Loss
KEY HIGHLIGHTS – GROUP PROFIT AND LOSS 1 Operating EBIT represents the earnings of UCW’s operating businesses (ALG and Ikon) before interest and tax. This excludes UCW corporate costs and one-off items 2 Venue costs have been added back in from 1H20 onwards to provide a more meaningul comparison (as
Slide 13: Group Profit and Loss
GROUP PROFIT AND LOSS RESILIENT FINANCIAL PERFORMANCE, SUPPORTED BY COVID-19 RELIEF FY21 FY20 Variance Variance UCW benefitting from diversification across the VET and HE sectors, Group $'000 $'000 $'000 % domestic and international students ALG and Ik on In the context of border closures and lo
Slide 14: ALG
ALG COMMUNITY SERVICES PROGRAMS SUPPORTING BUSINESS IN CHALLENGING MARKET CONDITIONS FY21 FY20 Variance Variance ALG $'000 $'000 $'000 % Revenue International student revenue 17,333 17,969 (636) (3.5%) Domestic and other revenue 493 1,088 (595) (54.7%) Total revenue 17,826 19,057 (1,231) (6.5%) Cost
Slide 15: Ikon
IKON HIGHER EDUCATION PROVIDING DIVERSIFICATION AND SIGNIFICANT GROWTH OPPORTUNITY FY21 FY20 Variance Variance Earnings supported by COVID-19 relief, with offsetting investments Ik on $'000 $'000 $'000 % made in product development and quality and compliance Revenue Decrease in total revenue due
Slide 16: Balance Sheet and Cashflow
BALANCE SHEET AND CASHFLOW BALANCE SHEET STRENGTHENED DESPITE PANDEMIC 30 Jun-21 31 Dec-20 30 Jun-20 Cash balance strengthened by $1.2m against PCP (including $0.4m $'000 $'000 $'000 impact of transaction costs associated with RedHill bid) Cash and cash equivalents 7,818 7,686 6,621 Net operatin
Slide 17: Debt Structure
DEBT STRUCTURE GEARING AND NET CASH IMPROVED - $2.1M IN LAST 12 MONTHS Gearing 3 0 Jun-2 1 3 1 Dec-2 0 Variance 3 0 Jun-2 0 Variance $ '0 0 0 $ '0 0 0 $ '0 0 0 $ '0 0 0 $ '0 0 0 Acquisition facility 3,250 3,833 (583) 4,167 (917) Bank guarantee facility 925 901 24 875 50 Total gross debt 4 ,1 7 5 4 ,
Slide 18: FY22 Priorities & Outlook
FY22 PRIORITIES & OUTLOOK UCW LIMITED FY21 RESULTS | 18
Slide 19: FY22 Priorities
FY22 PRIORITIES Drive student growth in Ikon and retention in ALG Enhance capability in domestic student recruitment and online delivery HE new program development – new course launch expected in CY22 Strengthening governance, academic quality and student experience Disciplined M&A activit
Slide 20: FY22 Outlook
FY22 OUTLOOK ALG Ikon Group ‘Right-sizing’ exercise Growth accelerating in HE Well-positioned to completed in August student numbers, unit navigate current enrolments and revenue environment 1Q22 enrolments down 12.7% on 4Q21 Continued investment in Flexible property product development
Slide 21: Appendices
APPENDICES UCW LIMITED FY21 RESULTS | 21
Slide 22: Group – Half on Half Analysis
GROUP HALF ON HALF ANALYSIS 2H21 2H20 Variance Variance 1H21 1H20 Variance Variance Group $'000 $'000 $'000 % $'000 $'000 $'000 % ALG and Ikon Total revenue 11,608 12,789 (1,181) (9.2%) 11,822 12,743 (921) (7.2%) Cost of sales (5,711) (5,349) (362) (6.8%) (5,402) (5,753) 351 6.1% Gross profit 5,897
Slide 23: ALG – Half on Half Analysis
ALG HALF ON HALF ANALYSIS 2H21 2H20 Variance Variance 1H21 1H20 Variance Variance ALG $'000 $'000 $'000 % $'000 $'000 $'000 % Revenue International student revenue 8,769 9,141 (372) (4.1%) 8,564 8,828 (264) (3.0%) Domestic and other revenue 158 912 (754) (82.7%) 335 176 159 90.3% Total revenue 8,927
Slide 24: Ikon – Half on Half Analysis
IKON HALF ON HALF ANALYSIS 2H21 2H20 Variance Variance 1H21 1H20 Variance Variance Ik on $'000 $'000 $'000 % $'000 $'000 $'000 % Revenue International student revenue 327 399 (72) (18.0%) 384 586 (202) (34.5%) Domestic student revenue 2,353 2,692 (339) (12.6%) 2,481 2,746 (265) (9.7%) Other revenue
Slide 25: Capital Structure
CAPITAL STRUCTURE MEANINGFUL SHAREHOLDER AND BOARD ALIGNMENT N um ber % Diluted Ordinary shares 117,514,448 95.8% 1,2 Performance rights 5,200,000 4.2% F ully diluted 1 2 2 ,7 1 4 ,4 4 8 1 0 0 .0 % $ '0 0 0 34 Market capitalisation at $0.13 per share 15,277 Cash (7,818) Debt 3,250 Enterprise value 1
Slide 26: Course Offering
COURSE OFFERING CURRENT HEALTH AND COMMUNITY SERVICES FOCUS Health and Community Services HE courses - Ikon Typical job outcomes focus – underpinned by strong underlying employment growth Arts Therapy Counselor or art therapist 8 HE and 14 VET courses Counselling and Psychotherapy Counselor or p
Slide 27: ALG International Student Diversity
ALG INTERNATIONAL STUDENT DIVERSITY DIVERSE STUDENT BASE WITH LOW SOURCE COUNTRY CONCENTRATION RISK Student enrolments by source region1 Immigration Risk Rating – Level 1 Highly diverse student population with students from over 70 source countries Student enrolments by source country (Top 20)1
Slide 28: Executives and Directors
EXECUTIVES AND DIRECTORS Adam Davis, BAppFin (Macquarie University) Gary Burg, BAcc (Wits), MBA (Wits) Chief Executive Officer and Managing Director Non-Executive Chair Adam has extensive experience in the education sector as founder and CEO of Gary has been involved with Global Capital Group since
Slide 29: Contacts
CONTACTS Adam Davis Lyndon Catzel Chief Executive Officer Chief Financial Officer E: adam@ucw.com.au E: lyndon@ucw.com.au P: +61 2 9112 4541 P: +61 2 9112 4540 M: 0408 400 888 M: 0414 907 384 UCW LIMITED FY21 RESULTS | 29
Slide 30: Disclaimer
DISCLAIMER This presentation, dated 27 August 2021, provides additional commentary on the Financial Report for the financial-year ended 30 June 202 for UCW Limited (UCW or the Company) and accompanying information provided to ASX on the same date. As such, it should be read in conjunction with those
Slide 31: Slide 31