Slide 1: 1H22 Results Presentation
(ASX:ICT) 1H22 RESULTS PRESENTATION 23rd February 2022
Slide 2: Contents
Contents ❖ Company portfolio ❖ Integration update ❖ Differentiated market positioning ❖ Results highlights and lead indicators ❖ 1H22 financial results ❖ Future outlook ❖ Investor highlights ❖ Important notice and disclaimer ❖ Appendix
Slide 3: Company portfolio
Company portfolio Student Recruitment Go Study Australia has operations in France, Italy, Spain, Chile, Colombia, Mexico & Australia Broad range of in demand courses ❖ Group offers a broad range of courses and delivery locations, including online Ability to extend the student life cycle ❖ Significan
Slide 4: iCollege integration program
iCollege integration program Integration of the RedHill acquisition is tracking well. We have already delivered on many integration milestones and well ahead of schedule. Despite a very busy period, and the impact of the current pandemic situation, our employees remain positively engaged. Finance In
Slide 5: Differentiated market position
Differentiated market position Diversified earnings base ❖ Diverse course offerings in English language, vocational and higher education segments ❖ International student recruitment agency ❖ Broad domestic and international student mix National campus footprint with online course delivery ❖ Underuti
Slide 6: 1H22 Results highlights
1H22 Results highlights Financials Lead indicators Revenue ❖ Acquisition of RedHill completed Vocational - Higher education - with financial results consolidated international students international students effective from 1 October 2021 confirmed enrolments confirmed enrolments $18.2m 131% ❖ Record
Slide 7: Key metrics
Key metrics $18.2m up 131% vs PCP $19.4m* up $14.9M vs PCP ❖ RedHill contributed $9.5m ❖ RedHill contributed $21.3m post acquisition upon acquisition ❖ Sero / Celtic / CTI ❖ Debt reduction of $0.3m in organic growth of 10% the period. Debt of $1.0m as at 31 Dec 2021 * Excluding term deposits of $3.0
Slide 8: Results & highlights: Greenwich
Results & highlights: Greenwich ❖ ELICOS student numbers and revenues declined as expected as a result of international border closures ❖ Vocational (VET) student numbers and revenues grew as a result of marketing initiatives targeting international students who were already in Australia ❖ Successfu
Slide 9: Results & highlights: Sero / Celtic / CTI
Results & highlights: Sero / Celtic / CTI ❖ Domestic student revenues increased by 38% vs pcp driven by strong growth in Celtic (79%) and Sero domestic (32%) ❖ International student revenues declined 22% vs pcp with lower numbers of active international students as international borders remained clo
Slide 10: Lead indicators supporting future growth: International students (Greenwich & Sero)
Lead indicators supporting future growth: International students (Greenwich & Sero) Lead indicators point towards strong recovery of international student numbers now that borders have re-opened New international student offers of enrolment (the International student confirmed enrolments in step bef
Slide 11: Results & highlights: Technology & Design
Results & highlights: Technology & Design ❖ Student numbers and revenues remained resilient despite all courses being delivered 100% online during 1H22 ❖ An increase in domestic students has largely offset the decline in international students ❖ Broad nationality mix of international students mainta
Slide 12: Lead indicators showing strong growth: Technology & Design
Lead indicators showing strong growth: Technology & Design Strong enrolment for February 2022 intake with strong projected enrolment pipeline for May 2022 intake 7% The average lifetime value of each Bachelor degree student is approximately $60,000 12
Slide 13: Deferred revenue – driver of future revenues
Deferred revenue – driver of future revenues $4.7m increase in deferred revenue in the first month following the opening of international borders ❖ Deferred revenue represents tuition fees paid in advance or due and payable for studies that have not yet been undertaken. Revenues will be recognised o
Slide 14: Results & highlights: Go Study Australia
Results & highlights: Go Study Australia ❖ Revenues were resilient as a result of international students remaining in Australia to continue their studies and targeted marketing to other visa sub-class holders ❖ Offshore offices contributed 10% of revenues which is down from a pre COVID-19 level of a
Slide 15: Lead indicators supporting future growth: Go Study Australia
Lead indicators supporting future growth: Go Study Australia Inquiry level and new student sales have increased significantly since the announcement of the re-opening of Australia's international borders Badri 7% Need a slide on how to show when revenue is being recognized Go Study Australia offshor
Slide 16: 1H22 Financial results
1H22 Financial results
Slide 17: Profit & loss
Profit & loss ❖ Strong growth in revenue and gross profit following the RedHill acquisition, consolidated effective 1 October 2021 ❖ Gross margin 58% dropped slightly from 60% in pcp due to higher education labour costs ❖ Employee costs grew $4.6m, with $3.7m from the RedHill acquisition and $0.9m i
Slide 18: Revenue & profit
Revenue & profit ❖ Greenwich, Technology & Design, Go Study contributed $9.5m of ❖ Higher employment costs due to RedHill acquisition ($3.7m) and the revenue increase in 1H22 Sero / Celtic / CTI of ($0.9m) ❖ Sero / Celtic / CTI contributed $0.7m – growth of 9%. Growth ❖ Other opex increases mostly d
Slide 19: Capex
Capex 1HY22 capex includes preliminary spend on the Brisbane campus (Level 3 Charlotte Street) 2H22 capex spend is expected to include: ❖ Brisbane campus finalisation: $0.5m ❖ IT and student experience upgrades: $0.7m Capex is funded by available cash reserves New iCollege campus in Brisbane - recep
Slide 20: Future outlook
Future outlook ❖ Integration of RedHill acquisition tracking Strong government support for the return well and ahead of schedule, with iCollege of international students to Australia confident of delivering annualised cost synergies of $1m-$1.35m ❖ Australian government announced the reopening of in
Slide 21: Investor Highlights
Investor Highlights ❖ Leading diversified portfolio of education businesses, positioned to invest, innovate and compete in a rapidly growing marketplace ❖ National campus footprint and strong online delivery capabilities 7% ❖ Highly regarded and experienced board and management team with a demonstra
Slide 22: Important notice & disclaimer
Important notice & disclaimer Summary information This Presentation contains summary information about iCollege Limited and its activities which is current only as at the date of this Presentation (unless specified otherwise). The material in this Presentation is general background information and d
Slide 23: Important notice & disclaimer
Important notice & disclaimer Forward looking information This Presentation and any related materials and cross-referenced information contain forward looking statements, which may be identified by the use of terminology including ‘may’, ‘will’, ‘would’, ‘could’, ‘should’, ‘expects’, ‘believes’, ‘ta
Slide 24: Appendix
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Slide 25: Revenue & profit by division
Revenue & profit by division 25
Slide 26: Non-IFRS information
Non-IFRS information The Company reports EBITDA in addition to the Profit after Tax. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the statutory profit under AAS adjusted for specific non-cash and significant items. The company’s dire
Slide 27: Thank you!
Level 2, 7 Kelly Street, Thank you! ULTIMO NSW 2007 www.icollege.edu.au Glenn Elith Michael Fahey Chief Executive Officer Chief Financial Officer glenn.elith@icollege.edu.au michael.fahey@icollege.edu.au