Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (August 2018)
27 slides from Idp Education's investor presentation, Aug 23, 2018
Slide 1: FY18 Results Presentation
IDP Education FY18 Results Presentation 23 August 2018
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer Non-IFRS Financial Information The material in this presentation has been prepared by IDP Education Limited (ASX: IDP Education uses certain measures to manage and report on its business that are IEL) ABN 59 117 676 463 (“IDP Education") and is general back
Slide 3: Contents
Contents 01 FY18 Highlights 02 Strategic Update 03 Financial Results 04 Summary A Appendices Presenters Andrew Barkla - Chief Executive Officer Murray Walton - Chief Financial Officer 3 | FY18 Financial Results | 23 August 2018
Slide 4: FY18 Highlights
01 FY18 Highlights 4 | FY18 Financial Results | 23 August 2018
Slide 5: FY18 Highlights
FY18 Highlights Strong operating and financial performance Revenue EBITDA NPATA NPAT $487m $89.0m $55.3m $51.5m Up 25% on a constant Up 28% on a constant Up 27% on a constant Up 21% on a constant currency basis currency basis currency basis currency basis English Language Testing Student Placement D
Slide 6: Strategic Update
02 Strategic Update 6 | FY18 Financial Results | 23 August 2018
Slide 7: Strategic Update
Strategic Update Continued investment driving organic growth and digital transformation Student Placement • 13 new offices established in key growth markets – India, Bangladesh, Indonesia, China, New Zealand and Egypt • Ireland established as a new full service destination with University College Du
Slide 8: Progress to date
Progress to date Building the world’s definitive international student dataset and connected community Discover Engage Support Arrival World’s best Digitising Global contact Lead nurturing and Leading office Virtual Agency Student Career digital experiences student expos centre marketing automation
Slide 9: Global roll-out of platform on time and on budget
Global roll-out of platform on time and on budget Twelve countries currently live on core components of the platform • 12 countries now live on the platform • 17 countries to go live over next 6 months − India − Mauritius − Hong Kong − Kuwait − Philippines − Iran − Malaysia − Bahrain − South Korea −
Slide 10: Industry leading web sites drive the top of the funnel and generate valuable insights
Industry leading web sites drive the top of the funnel and generate valuable insights 56 Global and 115 Million 27% Increase 37% Increase country specific combined in international in student websites web traffic site web traffic placement leads 10 | FY18 Financial Results | 23 August 2018
Slide 11: Computer-Delivered IELTS
Computer-Delivered IELTS A faster more convenient test Positive Customer Experience • Empowering customers to choose option that suits their needs • Google reviews in Australia averaging almost five stars since launch, with customers welcoming faster results and quiet test environment Global Roll-ou
Slide 12: Financial Results
03 Financial Results 12 | FY18 Financial Results | 23 August 2018
Slide 13: FY18 Overview
FY18 Overview Revenue and EBITDA up 25% and 28% respectively on a constant currency basis Income Statement Summary F ul l Y ear Ac tual s Grow th Constant Currenc y T w el ve Months to 30 June F Y 18 F Y 17 $m % Grow th ( %) * English Language Testing 306.8 250.7 56.1 22% 24% • Revenue growth of 25%
Slide 14: Key Operating Metrics
Key Operating Metrics Strong volume growth across all products Summary of Key Operational Metrics F ul l Y ear Ac tual s Grow th Constant Currenc y Volumes T w l eve Months to 30 June F Y 18 F Y 17 ‘000s / $ % Grow th ( %) * • 25% growth in IELTS volumes a highlight of the result Vol umes ( 000s) •
Slide 15: Student Placement Volumes
Student Placement Volumes 15% increase in student placement volumes Number of course enrolments by source country (FY18) Number of course enrolments by destination country (FY18) NZ, 3% Rest of World, 6% USA, 3% ↑ 31% ↑ 24% ↑ 11% India, 28% Canada, 13% Rest of Asia, 15% ↑ 60% ↑ 126% ↑ 3% Singapore,
Slide 16: English Language Testing
English Language Testing Continued growth in IELTS as it maintains its high-stakes testing leadership position Total Global IELTS Volumes IELTS test volumes by party (FY18) 4.0 3.4 million 3.5 China and JVs IDP Total IELTS tests (all parties) Millions 23% 33% 3.0 2.5 2.0 3.4 mill 1.5 Up 14% v FY17 1
Slide 17: Segmental Earnings
Segmental Earnings Asia the main engine of growth Revenue and EBIT by Geographic Segment F ul l Y ear Ac tual s Grow th T w l eve Months to 30 June F Y 18 F Y 17 $m % • Asia represents 62% of revenue and 67% of EBIT (ex corporate overheads) Revenue • Indian IELTS volumes returned to strong growth fo
Slide 18: Cashflow
Cashflow Business model generates strong operating cashflow 30.7 17.7 Summary Cash Movements (A$m) 8.0 • Another strong year of cash generation 28.5 • Capex included investments in SP Digital Platform, Office, test centre and ELT campus refurbishments 74.5 and expansion, CD IELTS systems and HCMS im
Slide 19: Summary
04 Summary 19 | FY18 Financial Results | 23 August 2018
Slide 20: Summary
Summary Strong result highlights strength of business model and strategic direction Financial Performance • Double-digit growth driving strong top-line and bottom-line performance Unique Global Footprint • Strong organic growth in IELTS and SP reflects leading global market position Product Innovati
Slide 21: Appendices
A Appendices 21 | FY18 Financial Results | 23 August 2018
Slide 22: Product Category Summary
Product Category Summary Slight margin expansion in each product category Revenue and GP by Product Segment F ul l Y ear Ac tual s Grow th Constant Currenc y T w l eve Months to 30 June F Y 18 F Y 17 $m % Grow th ( %) * • Incremental GP margin expansion in each product category Revenue • IELTS margi
Slide 23: Expenses
Expenses Employee expenses represent 65% of overheads Expenses Summary F ul l Y ear Ac tual s Grow th Constant Currenc y T w l eve Months to 30 June F Y 18 F Y 17 $m % Grow th ( %) * • Investments made in headcount and occupancy in FY18 include seven new Indian offices and new offices in Bangladesh,
Slide 24: Cash Flow
Cash Flow Strong Cash generation with GOCG/EBITDA = 113% Summary Cash Flow F ul l Y ear Ac tual s Grow th T w el ve Months to 30 June F Y 18 F Y 17 $m % EBITDA 89.0 68.4 20.7 30% • GOCF* of $101m up 31% and reflects 113% conversion from Non-cash items 3.7 6.0 -2.3 -38% reported EBITDA reflecting str
Slide 25: Foreign Exchange
Foreign Exchange Strong underlying operational performance with foreign exchange movements a headwind in FY18 Revenue (A$m) EBITDA (A$m) 19.7 89.0 96.1 487.2 1.0 394.2 3.2 68.4 391.0 69.3 FY17 Foreign currency FY17 restated at Underlying FY18 FY17 Foreign currency FY17 restated at Underlying FY18 im
Slide 26: Balance Sheet
Balance Sheet $15.1m net debt position at 30 June 2018 Consolidated historical balance sheet As at 30 June, A$ mil l ion 30-Jun-18 31-Dec -17 Change • Drawn borrowings balance as at 30 June A$63.9m Current assets Cash and cash equivalents 48.8 42.0 6.8 • Debt facilities include ˗ £36.0m Hotcourses G
Slide 27: Issued Capital
Issued Capital Share Capital Summary Sec urities as at 30 June 2018 Numb er Comment Shares on Issue 250,294,968 Unchanged since Nov 15 IPO • In anticipation of 4.15 million options granted to the Company’s CEO in August 2015 vesting on 31 August 2018, the Board has Options 4,150,000 Exercisable from