Idp Education Ltd. · ASX:IEL
Idp Education — FY2021 Earnings Presentation
26 slides from Idp Education's earnings presentation, Aug 25, 2021
Slide 1: IDP Education FY21 Financial Results
IDP Education FY21 Financial Results
Slide 2: Important notice and 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
1 Business Update
Slide 4: Business model resilience, our digital advantage and decisive capital management underpin a solid result
Business model resilience, our digital advantage and decisive capital management underpin a solid result in a heavily COVID-19 impacted year Revenue EBIT (Adjusted)* NPAT (Adjusted)* Cash Balance $529m $71.8m $45.0m $307m Down 10% Down 35% Down 36% Flat v 30 June 2020 Student Placement English Langu
Slide 5: Recovery Underway, Resilient Business, Industry Leadership
Recovery Underway Resilient Business Industry Leadership Emerging from FY21 with a The resilience and aspirational Our innovation agenda ensures more strong balance sheet and nature of our customers is personalised customer connections rising demand reflected in our results and reinforces our brand
Slide 6: Strategically positioned to grow IELTS market share
Strategically positioned to grow IELTS market share 100 new computer 50 new websites Acquired sole New technology Milestone reached delivered test and a preparation distribution rights architecture to as IELTS accepted centres in FY21 hub to support in high growth drive product by 11,000 test takers
Slide 7: Testing volumes
Testing volumes Paper based (four weekly rolling totals) Computer-delivered (four weekly rolling totals) • IELTS volumes continuing upwards trend as testing centres reopen • Indian volumes rebounding strongly Test volumes • Smaller computer-delivered testing centres providing flexibility in COVID-19
Slide 8: 79% of students with current offers are holding on to their plans
IDP Connect research* shows students are holding on to their study intentions Intention to commence study as planned Preference of delivery mode Defer entry to Online but transition study face-to-face Undecided to face-to-face 79% of students with current Students are warming to the blended model of
Slide 9: Desire for study abroad remains strong
Desire for study Global platform: Search behaviour insights abroad remains Organic web traffic on IDP websites* Student Search by Destination** strong • Structural growth drivers for student placement Zero and IELTS remain in In FY19 place Organic web traffic • 100m total web visits in FY21 • Organi
Slide 10: Strong lead growth for Northern Hemisphere countries
Strong lead growth for Northern Hemisphere countries Australia and New Zealand UK, Canada, USA and Ireland Qualified student placement lead volumes Qualified student placement lead volumes 10 | FY21 Financial Results | 25 August 2021
Slide 11: Connected community
Connected community • Trusted human support • Delivered on a global platform • Underpinned by leading technology innovation Delivered through our trusted suite of brands 11 | FY21 Financial Results | 25 August 2021
Slide 12: Our Innovation Agenda
Our Innovation Agenda We have an extensive product roadmap for FY22 Students Clients Test Takers Completed Completed Completed • An integrated digital platform across all • Expanded digital offering • Additional delivery mechanisms via CD IELTS touch points • Data insights and strategic consulting a
Slide 13: Financial Results
2 Financial Results
Slide 14: FY21 Overview
FY21 Overview Revenue decline of 5% and EBIT (Adjusted) decline of 31% on a constant currency basis Income Summary Statement Constant Full Year Actuals Growth Currency • Total revenue down 5% vs pcp on a constant currency basis Twelve Months to 30 June FY21 FY20* $m % Growth (%)** English Language T
Slide 15: Key Operating Metrics
Key Operating Metrics A solid performance by IELTS highlighting the resilience of testing Summary of Key Operational Metrics Full Year Actuals Growth Constant Volumes Currency • IELTS volumes were at pre-pandemic levels for Q3 but Twelve Months to 30 June FY21 FY20 ‘000s / $ % Growth (%)* the second
Slide 16: Investing for future Growth
Investing for future Growth Increasing overheads reflect the investments being made following two periods of discipled cost controls Overhead Costs Over Time* 125 • Cost control measures were relaxed slightly during the second 114 half of FY21 to ensure the emerging growth opportunities were 109 bei
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet Strong Balance sheet with $307m of cash at 30 June 2021 and access to undrawn working capital facilities totalling $75m As at 30 June 2021, A$ million 30-Jun-21 30-Jun-20* Change Current assets Cash Cash and cash equivalents 306.9 307.1 -0.2 • Cash balance of A$307m remain
Slide 18: Summary
3 Summary
Slide 19: Strong financial position
Strong financial position • FY21 results highlight the resilient nature of our diversified business model that has weathered lockdowns and border closures Held together our talent • We have our talented teams in place to fulfil on the industry rebound and continue to drive our product and service in
Slide 20: Appendices
4 Appendices
Slide 21: 25% decrease in volumes due to COVID-19 challenges
25% decrease in volumes due to COVID-19 challenges Rest of World, 4% USA, 4% NZ, 1% ↓ 43% ↓ 80% ↑ 75% Rest of Asia, 11% ↓ 48% Indonesia, 2% ↓ 27% Canada, 26% Hong Kong, 3% ↓ 12% ↓ 20% Vietnam, 3% India, 43% ↓ 51% ↓ 24% Australia, 38% ↓ 40% UAE, 3% Down 25% v FY20 ↓ 16% Down 25% v FY20 Australia, 7%
Slide 22: Segmental Earnings
Segmental Earnings Revenue and EBIT by Geographic Segment Full Year Actuals Growth • The decline in revenue in Asia was greater than the Twelve Months to 30 June FY21 FY20 $m % group average due to a 26% reduction in student placement revenue. IELTS revenue declined by 10% Revenue due to the lockdow
Slide 23: AASB16
AASB16 Summary Income Statement pre and post AASB16 Growth Constant Currency Twelve Months to 30 June FY21 FY20* (FY21 pre AASB 16 vs. Growth (%) ** FY20 pre AASB 16) (FY21 pre AASB 16 vs. Post Pre Pre • IDP adopted AASB16 Leases from 1 July 2019 A$m % FY20 pre AASB 16) AASB16 * AASB 16 AASB 16 Tota
Slide 24: Software-as-a-Service arrangements
Software-as-a-Service arrangements Summary Income Statement - SaaS IFRIC agenda decision Growth • During the year, the Group revised its accounting policy in Twelve Months to 30 June FY21* FY20 (FY21 pre SaaS vs. Constant Currency relation to upfront configuration and customisation costs FY20 pre Sa
Slide 25: Cashflow
Cashflow Reprioritised capital expenditure to strategic programs in line with digital transformation vision Summary of cash flow Full Year Actuals Growth Twelve Months to 30 June FY21 FY20* $m % • GOCF** of $131m reflects 129% conversion from reported EBITDA 101.7 145.2 -43.5 -30% EBITDA Non-cash it
Slide 26: Slide 26