Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (August 2019)
23 slides from Idp Education's investor presentation, Aug 22, 2019
Slide 1: FY19 Results Presentation
IDP Education FY19 Results Presentation 22 August 2019
Slide 2: 2 | FY19 Financial Results | 22 August 2019
2 | FY19 Financial Results | 22 August 2019
Slide 3: Strong operating and financial performance
Strong operating and financial performance Revenue EBITDA NPATA NPAT $598m $115m $68.6m $66.3m Up 23% v FY18 Up 29% v FY18 Up 24% v FY18 Up 29% v FY18 Dividend Student Placement English Language Testing English Language Teaching 19.5cps 49,600 1,283,000 94,200 Full year dividend, up 30% on APFs, up
Slide 4: Student Placement, English Language Testing, Digital Marketing and Events, English Language Teaching
Student Placement English Language Testing Digital Marketing and Events English Language Teaching - Digital transformation - Strong volume - Launched B2B division, IDP - Strong performance by increasing pipeline performance in key Connect ACE Cambodia, - Physical office network offshore markets - De
Slide 5: Delivering the Platform
Delivering the Platform The foundations for growth World’s Leading Global Digitising Virtual Leading Student Career best course office contact student Agency CRM and Essentials support search network centre expos CMS 28 IDP and 12 9 new Live in 18 115,000 students 55,000 2,500 counsellors Almost 20,
Slide 6: Building Capability
Building Capability Chief Digital Marketing Officer Design Global Content Strategy Development Data Analysis Testing Customer Experience Leads Customer Support Multimedia Design Regional Marketing Director Contact Centre Marketing Automation 6 | FY19 Financial Results | 22 August 2019 Content Strate
Slide 7: Platform Engagement
Platform Engagement Increased pipeline and applied leads Connected international Increase in Increase in hot/warm Increase in event websites IDP web traffic student online leads attendance Increase in contact centre Decrease in cost per Increase in leads moving from unqualified hot/warm lead applied
Slide 8: Computer-delivered highlights
• IELTS built on its position as the world’s most trusted English language test for study, work and migration • Record test volumes in FY19 • Organic expansion of IELTS Computer-delivered highlights network to new markets of Poland, Peru, Chile and Ireland • 124 new centres • Available in IDP centre
Slide 9: Innovating the IELTS Customer
Innovating the IELTS Investment in customer experience Customer Experience • Prioritising investment in Evolving improving the customer product experience, leveraging IDP’s new digital and data capability • Focus on personalised experiences, seamless booking and building Digital online support innov
Slide 10: 10 | FY19 Financial Results | 22 August 2019
10 | FY19 Financial Results | 22 August 2019
Slide 11: Strong Earnings growth with EBITDA up 26% (constant currency basis)
Strong Earnings growth with EBITDA up 26% (constant currency basis) Income Summary Statement Constant F ul l Y ear Ac tual s Grow th Currenc y • Revenue growth of 20% (constant currency basis) T w el ve Months to 30 June F Y 19* F Y 18 $m % Grow th ( %) * * English Language Testing 359.6 306.8 52.8
Slide 12: Strong volume growth driving performance
Strong volume growth driving performance Summary of Key Operational Metrics Volumes • 25% growth in SP volumes a highlight of the result • SP volume growth very strong to Canada and strong to the UK, with Australia volumes up 10% • 12% growth in IELTS volumes with significant contributions to the gr
Slide 13: 25% increase in student placement volumes
25% increase in student placement volumes NZ, 3% Rest of World, 3% USA, 3% ↑ 13% ↑ 12% ↑ 51% India, 37% Canada, 18% Rest of Asia, 16% ↑ 63% ↑ 72% ↑ 11% UAE, 3% ↑ 27% Hong Kong, 3% ↓ 13% Up 25% v FY18 Up 25% v FY18 Indonesia, 2% UK, 18% ↓ 2% ↑ 41% Australia, 5% ↑ 8% Australia, 58% Vietnam, 6% ↑ 10% ↓
Slide 14: Continued growth in IELTS as it maintains its high-stakes testing leadership position
Continued growth in IELTS as it maintains its high-stakes testing leadership position China and JVs IDP 23% 34% Up 11% v FY18 BC (ex China) 43% 14 | FY19 Financial Results | 22 August 2019
Slide 15: Strong growth in the key Asian markets
Strong growth in the key Asian markets Revenue and EBIT by Geographic Segment F ul l Y ear Ac tual s Grow th • Asia represents 66% of revenue and 73% of T w el ve Months to 30 June F Y 19 F Y 18 $m % EBIT(excluding corporate overheads) Revenue • India SP and IELTS revenue growth of 39% a major contr
Slide 16: 16 | FY19 Financial Results | 22 August 2019
16 | FY19 Financial Results | 22 August 2019
Slide 17: Record financial performance
• Record financial performance • Growth across all product lines • Successfully transitioning from an analogue to digital operations • Foundations for future growth • Leveraging digital capability across new products 17 | FY19 Financial Results | 22 August 2019
Slide 18: 18 | FY19 Financial Results | 22 August 2019
18 | FY19 Financial Results | 22 August 2019
Slide 19: The impact of AASB15 is not material on the aggregate FY19 financial results
The impact of AASB15 is not material on the aggregate FY19 financial results Summary Income Statement pre and post AASB15 F Y 19 Grow th ( %) P ost P re P ost P re T w el ve Months to 30 June AASB15 AASB15 F Y 18 AASB15 AASB15 • IDP adopted AASB 15 Revenue from Contracts with English Language Testin
Slide 20: Aggregate gross margins up slightly on FY18
Aggregate gross margins up slightly on FY18 Revenue and GP by Product Segment F ul l Y ear Ac tual s Grow th Constant Currenc y T w el ve Months to 30 June F Y 19 F Y 18 $m % • IELTS GP margin expanded as cost reductions realised in Grow th ( %) * paper-based test day activity, price increases taken
Slide 21: Continuing to invest for future growth
Continuing to invest for future growth Expenses Summary F ul l Y ear Ac tual s Grow th Constant Currenc y • Investments made in headcount and occupancy in T w el ve Months to 30 June F Y 19 F Y 18 $m % Grow th ( %) * FY19 include four new Indian student placement offices and new student placement of
Slide 22: Drawn borrowings balance as at 30 June 2019
• Drawn borrowings balance as at 30 June 2019 A$60.5m • Debt facilities include • GBP£30.9m Hotcourses Group acquisition facility (£30.9m drawn) • A$25.0m working capital (A$0m drawn) • A$5.0m HCP investment facility (A$4.8m drawn) • Cash of A$56.1m generates net debt of A$4.4m 22 | FY19 Financial R
Slide 23: Strong cash conversion
Strong cash conversion Summary of Cash Flow • Working capital increase largely reflects a one-off increase of $24.1m in Contract Assets (see page 22) due to revenue recognition changes under AASB15 • GOCF* of $105.1m up 4% reflects 91% conversion from reported EBITDA o Cash conversion is 112% if the