Idp Education Ltd. · ASX:IEL
Idp Education — FY2025 Earnings Presentation
34 slides from Idp Education's earnings presentation, Aug 28, 2025
Slide 1: Full Year Financial Results
Full Year Financial Results IDP Education 2025
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer The material in this presentation has been prepared by IDP Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP Education") and is general background information about IDP Education’s activities current as at the date of this presentation. The information
Slide 3: What we will cover today
What we will cover today 2 1 2 3 FY25 results reflect FY25 strategy Transformation will challenging conditions execution and make IDP a more with industry volumes foundations set for efficient, tech-enabled down significantly transformation and business, positioned cost reduction to outperform 3 | F
Slide 4: FY25 overview
FY25 overview Financial1 Operational Capital Management • Revenue of $882m down 14%; • IDP Student Placement volumes • Strong balance sheet with low outperformed volume trends down 29% reflecting challenging leverage at 1.4x Net Leverage industry conditions • Strong average price growth of • Cash co
Slide 5: 1. FY25 Results
1. FY25 Results Feidp
Slide 6: Summary income statement
1 FY25 Results Summary income statement Constant Revenue down 14% vs pcp Full Year Actuals Growth Currency • Lower Student Placement and English Language Testing volumes, Twelve Months to 30 June FY25 FY24 $m % Growth (%) 4 partially offset by average price growth Student Placement 427.1 508.3 -81.2
Slide 7: Revenue outperformance to volumes
1 FY25 Results Revenue outperformance to volumes Constant Focus on revenue outperformance Full Year Actuals Growth Currency • Revenue outperformed volumes, driven by profitable growth, Twelve Months to 30 June FY25 FY24 ‘000s / $ % Growth (%)3 average price growth, new client wins and value-added st
Slide 8: Disciplined cost management
1 FY25 Results Disciplined cost management Overhead Costs (Adjusted) (A$m)1 Adjusted overheads down 5% vs pcp -5% • Disciplined cost management delivered $20m net reduction in cost base FY24: 372 Employee costs down 6% vs pcp 189 183 FY25: 352 • Headcount ended the year ~660 lower vs 30 June 2024 fr
Slide 9: Contract assets and receivables
1 FY25 Results Contract assets and receivables Student Placement Contract Asset and Receivables Balances 350 90% Combined contract assets + receivables down 17% vs pcp broadly in line with Student Placement revenues down 16% 80% 300 70% Contract assets down 8% vs pcp 250 60% • Reflects student place
Slide 10: Balance sheet
1 FY25 Results Balance sheet Net debt1 Balance sheet leverage Net Debt (A$m) FY25 FY24 Change • Net leverage ratio of 1.4x well within debt covenant of <3.0x Cash and cash equivalents 121.5 107.6 13.9 • Refinancing of debt facilities completed in April 2025 resulting in: Short term investments 0.0 1
Slide 11: Capital management to drive shareholder returns
1 FY25 Results Capital management to drive shareholder returns FREE CASH FLOW Balance sheet strength • Focus on cash collection and working capital optimisation • Invest in business productivity and efficiency • Maintain balance sheet flexibility and remain within debt BALANCE SHEET STRENGTH LONG TE
Slide 12: 2. FY25 Strategy Execution
2. FY25 Strategy Execution Feidp
Slide 13: IDP in large addressable markets with structural growth
2 Strategy Execution IDP in large addressable markets with structural growth… Internationally mobile students globally IDP’s student placement volumes vs. market (all source and destination countries) (all source countries)3 12 500,000 2 10 5% 10.0 8 Year CAGR 400,000 8 1 Millions 6.9 300,000 6 6% 2
Slide 14: Outperforming the sector over the long-term
2 Strategy Execution … and is outperforming the sector over the long-term Student Placement Volumes1 Average Placement Price2 Placement Revenue3 120 5,500 500 450 5,000 100 11% 7% 400 19% 4,500 12 Year CAGR 12 Year CAGR 12 Year CAGR 350 80 Thousands 4,000 300 A$m A$ 60 3,500 250 200 3,000 40 150 2,5
Slide 15: Continuing to execute on IDP's strategy
2 Strategy Execution Continuing to execute on IDP’s strategy 15 | FY25 Financial Results | 28 August 2025
Slide 16: Student Placement FY25 delivery against strategy
2 Strategy Execution Student Placement FY25 delivery against strategy Engaging with more people in As their most trusted partner To deliver exceptional outcomes more places • Welcomed 50 new quality institutions • 94%1 of students surveyed highly trust • 30,000+ FastLane offers delivered with IDP, r
Slide 17: Language Testing FY25 delivery against strategy
2 Strategy Execution Language Testing FY25 delivery against strategy Engaging with more people in As their most trusted partner To deliver exceptional outcomes more places • 2.9 million downloads of IELTS by IDP • IELTS remains the world’s most widely • Refreshed IDP IELTS preparation Language Testi
Slide 18: Proprietary student data asset and trusted counsellor network
2 Strategy Execution Comprehensive proprietary student data asset and trusted counsellor network driving competitive advantage AI Advisor (Navi) AI-enabled Recommendation Engine FastLane Propose AI-powered chat advisor that qualifies leads, AI tool that equips counsellors with real-time, Leverages A
Slide 19: 94% of global students highly trust IDP
2 Strategy Execution 94% of global students highly trust IDP Students Client Partners 70+ +701 94%1,2 100% +50 +60 Global student NPS, of global students Client Retention New clients FY25 Upsell or contract +23 since FY20 highly trust IDP FY25 inclusions FY25 “IDP is a leader in international higher
Slide 20: Quality evidenced by superior visa approval rates
2 Strategy Execution Quality evidenced by superior visa approval rates Average Student Visa Approval Rates (FY25)1 Australia Canada 96% 86% 95% 84% 92% 59% 41% 84% All Countries India All Countries India Industry IDP Industry IDP Average Average Average Average 1. For Australia the industry average
Slide 21: 3. Transforming IDP
3. Transforming IDP Feidp
Slide 22: Embarking on a multi-year transformation to capture profitable growth
3 Transforming IDP Embarking on a multi-year transformation to position IDP to capture profitable growth Phase one: Future phase: Future phase: Simplify, reduce Reinvest Expand and cost, strengthen for growth and diversify revenue foundations productivity streams • Reset cost base to improve efficie
Slide 23: Transformation phase one to deliver $25 million net cost reduction in FY26
3 Transforming IDP Transformation phase one to deliver $25 million net reduction in cost base in FY26 FY26 Adjusted overhead cost movement FY26 Phase phase one: one FY26 outcomes outcomes -$25 million $25 million net reduction in cost base1 One-off restructuring costs of $35 million - $45 million FY
Slide 24: Outlook
3 Transforming IDP Outlook IDP expects FY26 Adjusted EBIT of $115 million - $125 million Underlying assumptions: • Continued challenging industry conditions, planning for FY26 market volumes1 down 20% - 30% versus FY25 • Within this context IDP expects revenue outperformance driven by a focus on pro
Slide 25: IDP is well positioned to drive growth and improve profitability
IDP is well positioned to drive growth and improve profitability Strategy and Leading position Material technology, Strong balance Winning in transformation in large, long-term AI and data sheet and quality and trust plan to drive growing markets opportunity cash generation profitable growth • Clear
Slide 26: 4. Appendices
4. Appendices Faidp
Slide 27: EBIT and NPAT adjustments
Appendices EBIT and NPAT adjustments FY25 FY24 Growth (Adjusted) Adjustments Adjustments Reported Company Adjusted Reported Company Adjusted Twelve Months to 30 June, Unrealised FX Intangible Credit Loss Unrealised FX Intangible Credit Loss M&A Costs Restructure M&A Costs Restructure $m % A$ million
Slide 28: Foreign exchange
Appendices Foreign exchange FX Gains/Losses over time (A$m) Foreign Exchange (FX) Related Gains/Losses • IDP earns revenues and incurs expenses in approximately 50 currencies. The largest net exposures are to INR, CAD, GBP, USD, and CNY but material FY22 FY23 FY24 FY25 exposures also exist against E
Slide 29: Cash flow
Appendices Cash flow Full Year Actuals Growth • GOCF* of $218.8m reflects conversion from reported EBITDA of 143% (an improvement over the 80% recorded for FY24) Twelve Months to 30 June, A$ million FY25 FY24 $m % EBITDA 153.5 265.8 -112.3 -42% • The improvement in GOCF is due to lower expenses, low
Slide 30: Segmental earnings
Appendices Segmental earnings Revenue and EBIT by Geographic Segment1 • IDP manages its business on a geographic basis. Country and regional Full Actuals Growth management are responsible for all activities in their geographic region across Twelve Months to 30 June, A$ million FY25 FY24 $m % each of
Slide 31: Balance sheet
Appendices Balance sheet Cash & Debt A$ million 30-Jun-25 30-Jun-24 Change • Cash and cash equivalents of $122m, drawn debt of $289m and out-of-the-money Current assets hedged currency contracts delivering net debt of $166m as at 30 June 2025 Cash and cash equivalents 121.5 107.6 13.9 • Net debt of
Slide 32: Uncertain policy environment
Appendices Uncertain policy environment Australia UK Canada USA policy developments • Labor majority government • Immigration White Paper (May • Liberal minority government • Republican government elected 2025), recommended: elected elected • Proposed student cap • Increased salary thresholds • Post
Slide 33: Market conditions remain challenging; IDP focused on profitable growth
Appendices Market conditions remain challenging; IDP focused on profitable growth FY25 IDP Student Placement volume growth v Market growth1 Source country mix shift impacting all destinations following policy changes • Higher market volumes from China (IDP relatively low share) • Lower market volume
Slide 34: Student Placement volume geographic distribution
Appendices Student Placement volume geographic distribution IDP Course Enrolments by Destination (FY25) IDP Course Enrolments by Source Country (FY25) 70,076 70,076 down 29% v FY24 down 29% v FY24 Australia 45% Australia India 44% India China 14% China United Kingdom 27% United Kingdom Vietnam 5% Vi