Idp Education Ltd. · ASX:IEL
Idp Education — Morgan Stanley Asia Pacific Summit 2018
27 slides from Idp Education's conference presentation, Nov 29, 2018
Slide 1: IDP Education – Morgan Stanley Asia Pacific Summit
For personal use only IDP Education Morgan Stanley Asia Pacific Summit 29 November 2018
Slide 2: Important Notice and Disclaimer
Important Notice and Disclaimer For personal use only 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
Slide 3: Contents
Contents For personal use only 01 Company Overview 02 Investment Highlights 03 Strategy 04 Financial Highlights 05 Summary 3 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 4: Company Overview
01 For personal use only Company Overview 4 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 5: Business Overview
Business Overview For personal use only A diversified provider of services to the international education industry English Language Testing Student Placement Digital Marketing and Events English Language Teaching A leading global high-stakes Leading provider of international Online and offline marke
Slide 6: A globally connected community
A globally connected community For personal use only A living network of services to help students and globally mobile people achieve their study, career and migration goals Student English Placement Language Testing • 100+ offices • 450 test locations • 30 source countries • 55 countries • 800+ ins
Slide 7: Investment Highlights
02 For personal use only Investment Highlights 7 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 8: Investment Highlights
Investment Highlights For personal use only Industry Diversification Strategy Financial • Aligned to positive • Unique, quality assets • A bold and • Track record of macro trends in key that are globally transformative strong financial markets for diversified strategy that will performance and inter
Slide 9: Industry Dynamics
Industry Dynamics For personal use only The international education industry continues to be supported by a range of positive structural demand and supply factors Industry Rising middle-class in Asia Dynamics Favourable demographics in key markets Constrained domestic supply of quality education in
Slide 10: Aligned to long term structural growth drivers
Aligned to long term structural growth drivers For personal use only Global International Student Numbers (millions) Total IELTS Tests (millions) 18 Year CAGR 18 Year CAGR 21% 5.4% Source: OECD Education at a Glance, 2018 Source: IDP Education 10 | Morgan Stanley Asia Pacific Summit | 29 November 20
Slide 11: A global network helping students achieve study and career goals
A global network helping students achieve study For personal use only and career goals Student Placement Volumes and Revenue • 30 source countries 14% 21% • 100+ offices Total Volume 5 year CAGR Total Revenue 5 year CAGR • 800+ expert education counsellors • 115 million web visits p.a. • Placing stu
Slide 12: Proud co-owners of the world's leading high-stakes English language test
Proud co-owners of the world’s leading high- For personal use only stakes English language test IDP:IELTS Volumes and Revenue • 2 strategic partners – British 13% 16% Total Volume Total Revenue Council and Cambridge 5 year CAGR 5 year CAGR Assessment English • 55 testing countries • 500 test centres
Slide 13: Strategy
03 For personal use only Strategy 13 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 14: A global platform
A global platform For personal use only We are building a global platform and connected community that will guide international students along their journey to achieve their lifelong learning and career aspirations Deliver world-leading capabilities and services… World’s best Leading Digitising Glob
Slide 15: Progress to date
Progress to date For personal use only 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
Slide 16: Industry leading web sites drive the top of the funnel
Industry leading web sites drive the top For personal use only 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 16 | Morgan Stanley Asia Pacific
Slide 17: Computer-Delivered IELTS
Computer-Delivered IELTS For personal use only A faster, more convenient test Global roll-out Customer convenience Live in 23 countries More test date choice and faster results Positive customer experience Innovation roadmap Increased Google star rating Continual improvements World-leading content W
Slide 18: Financial Results
04 For personal use only Financial Results 18 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 19: FY18 Overview
FY18 Overview For personal use only 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% •
Slide 20: Key Operating Metrics
Key Operating Metrics For personal use only 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 resu
Slide 21: Summary
05 For personal use only Summary 21 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 22: Summary
Summary For personal use only 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 pos
Slide 23: Appendices
A For personal use only Appendices 23 | Morgan Stanley Asia Pacific Summit | 29 November 2018
Slide 24: Our history
Our history For personal use only Introduces on shore support for students in New Zealand Introduces IELTS on Established by Organises the 1st IELTS launched by the Becomes wholly Commences multi- Extends multi- computer the Australian Australian predecessor of IDP Education, owned by 38 destination
Slide 25: Product Category Summary
Product Category Summary For personal use only 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 ( %) * FY18 Highlights Revenue • Incremental GP margin expansion in each product category English Language Testing
Slide 26: Cash Flow
Cash Flow For personal use only 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% FY18 Highlights Non-cash items 3.7 6.0 -2.3 -38% • GOCF* of $101m up 31% and reflects 113% conversi
Slide 27: Balance Sheet
Balance Sheet For personal use only $15.1m net debt position at 30 June 2018 Consolidated historical balance sheet As at 30 June, A$ 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
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