Idp Education Ltd. · ASX:IEL
Idp Education — FY2024 Earnings Presentation
32 slides from Idp Education's earnings presentation, Aug 29, 2024
Slide 1: IDP Education FY24 Financial Results
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Slide 2: Disclaimer and 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 Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP Education") its business that are not recognised under Australian Accounting and is g
Slide 3: 3 | FY24 Financial Results | 29 August 2024
3 | FY24 Financial Results | 29 August 2024
Slide 4: FY24 Highlights
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Slide 5: FY24 Highlights: Revenue, EBIT, NPAT, Dividends
Revenue EBIT (Adjusted)1 NPAT (Adjusted) 1 FY24 Dividends2 Our global scale and unique offering means we are the $1,037m $239m $154m 34cps leading player in a large market Our focus on quality ensures Up 6% Up 4% Down 1% Down 17% we are well-placed to navigate changing market conditions Student Engl
Slide 6: FY24 Financial Results
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Slide 7: Income Statement
Income Statement Constant • Total revenue of A$1,037m representing growth of 6% Full Year Actuals Growth Currency Twelve Months to 30 June FY24 FY23 $m % # • Strong performances in Student Placement and English Language Teaching Growth (%) offset by a decline in revenue for English Language Testing
Slide 8: Key operational metrics
Key operational metrics Student Placement Volumes • Total student placement volumes up 17% Full Year Actuals Growth Constant Currency • Volume growth to each destination with Canada up 31%, USA up 26%, Australia Twelve Months to 30 June FY24 FY23 ‘000s / $ % Growth (%)*** up 15% and UK up 3% Vol ume
Slide 9: Placements Volumes, Average Price and Revenue
Placements Volumes* Average Placements Price** Placements Revenue*** 15% 6% 23% 11 Year CAGR 11 Year CAGR 11 Year CAGR Thousands A$ A$m * Placements Volumes is the number of Application Processing Fees (APFs), being the fee IDP Education receives from its client education institutions for placing st
Slide 10: IDP student placement volume growth v industry growth
IDP student placement volume growth v industry growth* FY24* v PCP • Outperformance and rising market share is being driven by: o Strategic and operational focus on quality o A direct to student model with highly trained counsellors o Globally consistent processes and procedures IDP Total o Trusted
Slide 11: English Language Testing: India Market
India Market Indian IELTS v Indian study visa applications for Australia, UK & Canada • A cyclical decline against a long-term structurally growing market Indian study visa applications Indian IELTS volumes • Indian IELTS performance primarily reflects weaker than expected market conditions due to:
Slide 12: Overhead Costs (Adjusted)
Overhead Costs (Adjusted)* 189 Total Overhead Costs 172 183 • Total overhead costs include a number of abnormal or non-recurring items totalling A$24.8m* 161 • Excluding these items, overhead costs on an adjusted basis for FY24 was A$372m which was up 12% v FY23 • In response to changing industry co
Slide 13: Gross Profit Margins; EBIT and NPAT Margins
Gross Profit Margins EBIT (Adjusted) and NPAT (Adjusted) Margins* * EBIT (Adjusted) and NPAT (Adjusted) excludes intangible asset amortisation generated from business combinations, M&A related expenses, unrealised FX losses, credit loss provision for customers in countries subject to foreign exchang
Slide 14: Summary balance sheet
Summary balance sheet Cash & Debt As at 30 June 2024, A$ mil l ion 30-Jun-24 30-Jun-23 Change • Cash and cash equivalents plus short-term investments (a 6-month term Current as sets deposit) total $121m and drawn debt of $278m delivering a net debt of $157m Cash and cash equivalents 107.6 166.6 -59.
Slide 15: Industry & Strategy
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Slide 16: Outbound Internationally mobile students
Outbound Internationally mobile students (IDP source countries)* IDP’s student placement volumes versus market size* 3 COVID 2 7% 23 Year CAGR Millions GFC 1 SARS 9/11 17% 6% 5% 1% 2021 Source: UNESCO Institute for Statistics * The chart shows total internationally mobile students for all current ID
Slide 17: IELTS Volumes
IELTS Volumes (FY07 - FY24) IELTS Volumes (FY24) 4 Total IELTS 10% China & USA* (23% of FY24) 17 Year CAGR 3 Millions British Council* (37% of FY24) 4.0m 2 Up 1% v FY23** 1 IDP Education (40% of FY24) FY08 FY12 FY16 FY20 FY24 * British Council volumes exclude tests conducted in China under license.
Slide 18: Policy updates: Australia, UK, Canada, USA
Australia UK Canada USA • International student visa • New government elected • Post-graduation work permit • No change in policy settings fees increased on 1 July 2024 under review or visa requirements • Graduate Route maintained • CY25 international student • Details regarding proposed • More posi
Slide 19: Student perceptions of destination countries
Post-Study Work Visa Policies1 Graduate Employment Opportunities2 Share of IDP web search traffic (All source countries)* Value for money3 Quality of Education4 Source: IDP’s “Emerging Futures – Voice of the International Student” survey. Latest survey conducted in Feb-March 2024 with 11,500 respond
Slide 20: 20 | FY24 Financial Results | 29 August 2024
20 | FY24 Financial Results | 29 August 2024
Slide 21: Student Placement and English Language Testing achievements
Student Placement • Opened 15 new offices in key growth • Strategic partnership model with clients • FastLane scaled to over 130 clients markets supporting rising yields • 7-point increase in Student NPS to all • 50 new student placement clients • New student ambassador solution time high • Over 350
Slide 22: FastLane: Students, Clients, Speed
Students Clients Speed Efficiency Transparency Diversity 10 point 6.6% higher NPS higher conversion for our students rates versus who receive non-FastLane an OiP** offers# 32,000 Students received FastLane 136 Clients on FastLane * offers up from 17,500 in FY23 up from 93 at 30 June 2023 800,000 IDP
Slide 23: Summary
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Slide 24: Strong performance despite challenging market conditions
Strong performance despite Industry leadership Disciplined Cost Financial strength Compelling Strategy challenging market • Trusted brand with a unique Management • A financial profile that • Clear strategy and a conditions combination of digital and • Strong track record of features strong cash dis
Slide 25: Appendices
Appendices s pp 7
Slide 26: EBIT and NPAT Adjustments
EBIT and NPAT Adjustments FY24 FY23 Growth (Adjusted) Adjustments Adjustments Reported Company Adjusted Reported Credit Adjusted Unrealised FX Intangible Credit Loss Unrealised FX Intangible Twelve Months to 30 June M&A Costs Losses Amortisation Restructure Provision M&A Costs Losses Amortisation Lo
Slide 27: Foreign Exchange Related Gains/Losses
Foreign Exchange Related Gains/Losses FX Gains/Losses over time (A$m) • IDP earns revenues and incurs expenses in approximately 50 currencies. The largest net exposures are to INR, CAD, GBP, USD, GBP and CNY but material exposures also exist against VND, NGN, BDT, PKR, AED and NZD FY20 FY21 FY22 FY2
Slide 28: Summary of cashflows
Summary of cashflows Fu l l Y ear Ac tu al s Grow th • GOCF* of $211m reflects conversion from reported EBITDA of: o 142% for H2, and T w el ve Months to 30 June F Y24 FY 23 $m % o 79% for the full year (broadly in-line with FY23 of 85%) EBIT DA 265. 8 271. 2 -5. 4 -2% Non-cash items 22.0 11.0 11.0
Slide 29: Revenue and EBIT by Geographic Segment
Revenue and EBIT by Geographic Segment* • IDP manages its business on a geographic basis. Country and regional Full Year Actuals Growth management are responsible for all activities in their geographic region across each of the company’s key products Twelve Months to 30 June FY24 FY23 $m % Revenue •
Slide 30: Revenue and GP by Product Segment
Revenue and GP by Product Segment Full Year Actuals Growth Constant • Aggregate gross profit margins rose slightly in FY24 due primarily Currency to a greater percentage of group revenue from the higher margin Twelve Months to 30 June FY24 FY23 $m % # Placements business Growth (%) Reve nue • Gross
Slide 31: IDP Course Enrolments by Destination and Source Country
IDP Course Enrolments by Destination (FY24) IDP Course Enrolments by Source Country (FY24) 98,900 98,900 Up 17% v FY23 Up 17% v FY23 41% Australia 52% India 2% Nigeria 24% United Kingdom 11% China 2% Taiwan 27% Canada 5% Vietnam 13% Rest of Asia 6% USA 3% Australia 8% RoW 1% New Zealand 3% Banglades
Slide 32: Average Student Visa Approval Rates (FY24)
Average Student Visa Approval Rates (FY24)* Australia Canada UK All Countries India All Countries India All Countries India Industry IDP Industry IDP Industry IDP Average Average Average Average Average Average * The industry average visa approval rates for Australia are for the primary offshore app