Idp Education Ltd. · ASX:IEL
Idp Education — H1 FY2019 Earnings Presentation
23 slides from Idp Education's earnings presentation, Feb 7, 2019
Slide 1: IDP Education Half Year Financial Results
IDP Education Half Year Financial Results Six Months to 31 December 2018 1 | H1 FY19 Financial Results | 7 February 2019
Slide 2: Contents
Contents • H1 FY19 Highlights • Summary • Business Update • Appendices • Financial Results 2 | H1 FY19 Financial Results | 7 February 2019
Slide 3: 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 IDP Education uses certain measures to manage and report on its business that (ASX: IEL) ABN 59 117 676 463 (“IDP Education") and is general backgrou
Slide 4: H1 FY19 Highlights
H1 FY19 Highlights 4 | H1 FY19 Financial Results | 7 February 2019
Slide 5: H1 FY19 Highlights
H1 FY19 Highlights Revenue EBITDA • A$304m up 26% • A$66.8m up 33% NPATA* Interim Dividend • A$41.8m up 32% • 12.0 cps up 41% English Language Testing Student Placement • 660,000 IELTS tests up 18% • 27,300 APFs up 23% English Language Teaching Digital Marketing • 45,900 courses up 13% • Hotcourses
Slide 6: Business Update
Business Update 6 | H1 FY19 Financial Results | 7 February 2019
Slide 7: IDP, IELTS and Hotcourses offering
World’s Leading Global Virtual Leading Digitising Student Career best course office contact Agency CRM and student Essentials support search network centre CMS expos (value added services) IDP IELTS Hotcourses Other Partners 7 | H1 FY19 Financial Results | 7 February 2019
Slide 8: All IDP-owned student placement offices live on global platform by H1 FY19
All IDP-owned student placement offices live on global platform by H1 FY19. Platform roll-out highlights • 24 IDP markets now live on global platform • Student events digitised • Customer management system in place Turkey Hong Kong • Integrated marketing automation platform Nepal increasing engageme
Slide 9: Early performance indicating top of the funnel growth
Early performance indicating top of the funnel growth Global and Increase in web Increase in student Increase in student country specific traffic* online leads* placement leads websites (online and offline)* * Percentage increase is for the six months ended 31 December 2018 versus the six months end
Slide 10: With the technology platform in place, our focus shifts to empowering people
With the technology platform in place, our focus shifts to empowering people Standing up the technology platform Global and regional Ways of Working defined New campus in Chennai marketing structure in place across 20 key roles to will drive innovation and with 33 specialist roles enable globally ra
Slide 11: Innovating IELTS
Innovating IELTS As computer-delivered IELTS gains traction, the IELTS partners are delivering regular product releases and enhancements for our customers Record test 55 new CD IELTS Customers Investment in Enhancing volumes test centres in welcoming customer support tools recorded H1 2019 new optio
Slide 12: Financial Results
Financial Results 12 | H1 FY19 Financial Results | 7 February 2019
Slide 13: H1 FY19 Overview: Strong Earnings growth with EBITDA up 33%
H1 FY19 Overview Strong Earnings growth with EBITDA up 33% Income Statement Summary H al f Y ear Ac tual s Grow th Constant Currenc y Six Months to 31 Dec emb er H 1 F Y 19* H 1 F Y 18 $m % Grow th ( %) * * • Total revenue growth of 26% with strong performances in English Language Testing 178.6 148.
Slide 14: Key Operating Metrics
Key Operating Metrics Strong volume growth driving performance Summary of Key Operational Metrics H al f Y ear Ac tual s Grow th Constant Currenc y Volumes Six Months to 31 Dec emb er H 1 F Y 19 * H 1 F Y 18 ‘000s / $ % * Grow th ( %) * * • IELTS volume growth remains strong with broad based growth
Slide 15: Segmental Earnings
Segmental Earnings Strong growth in the key Asian markets Revenue and EBIT by Geographic Segment H al f Y ear Ac tual s Grow th • Asia represents 67% of revenue and 72% of Six Months to 31 Dec emb er H 1 F Y 19 H 1 F Y 18 $m % EBIT (ex corporate overheads) Revenue • India delivered strong growth in
Slide 16: Summary
Summary 16 | H1 FY19 Financial Results | 7 February 2019
Slide 17: Summary
Summary Financial Performance • Overall revenue up 26% with strong growth from each business line Structural Growth • Result driven by structural growth trends in key markets for international education and the use of the English language Digital Transformation • Global technology platform implement
Slide 18: Appendices
Appendices 18 | H1 FY19 Financial Results | 7 February 2019
Slide 19: AASB15
AASB15 The impact of AASB15 is not material on the aggregate H1FY19 financial results Summary Income Statement pre and post AASB15 H 1 F Y 19 Grow th ( %) P ost P re P ost P re • IDP adopted AASB 15 Revenue from Contracts with Six Months to 31 Dec emb er H 1 F Y 18 AASB15 AASB15 AASB15 AASB15 Custom
Slide 20: Product Category Summary
Product Category Summary Aggregate gross margins largely flat v pcp Revenue and GP by Product Segment H al f Y ear Ac tual s Grow th Constant Currenc y Six Months to 31 Dec emb er H 1 F Y 19 H 1 F Y 18 $m % Grow th ( %) * • English Language Testing margin improved in India and Australia as price inc
Slide 21: Expenses: Investing for future growth
Expenses Investing for future growth Expenses Summary H al f Y ear Ac tual s Grow th Constant Currenc y Six Months to 31 Dec emb er H 1 F Y 19 H 1 F Y 18 $m % Grow th ( %) * • Investments made in new offices in H2 FY18 increased headcount and occupancy vs pcp Direct Costs 132.1 105.7 26.4 25% 23% Ov
Slide 22: Balance Sheet
Balance Sheet Strong balance sheet with only A$9.6m of net debt Consolidated historical balance sheet As at 30 June, A$ mil l ion 31-Dec -18 31-Dec -17 Change • Drawn borrowings balance as at 31 Dec 2018 A$64.4m Current assets Cash and cash equivalents 54.8 48.8 6.0 • Debt facilities include Trade a
Slide 23: Cashflow: Solid cash flow conversion
Cashflow Solid cash flow conversion Summary of Cash Flow H al f Y ear Ac tual s Grow th Six Months to 31 Dec emb er H 1 F Y 19 H 1 F Y 18 $m % EBITDA 66.8 50.3 16.5 33% • GOCF* of $45.1m up 38% and reflects 67% conversion Non-cash items 4.6 2.0 2.6 130% from reported EBITDA Change in working capital