Edu Holdings Limited · ASX:EDU
Edu — H1 2022 Earnings Presentation
33 slides from Edu's earnings presentation, Aug 29, 2022
Slide 1: 1H22 Financial Results
1H22 FINANCIAL RESULTS 30 JUNE 2022
Slide 2: 1H22 Key Highlights
1H22 KEY HIGHLIGHTS Ikon student Bachelor of Strong Strategic Completed Acquisition numbers up Early rebound in acquisition – $6m cap facility 41.8%1 Childhood ALG Letters Nurse raise; extended for Education of Offer Training welcomed 3 years gaining Australia Mulpha to traction register 1 In Trimes
Slide 3: Value Proposition Intact
VALUE PROPOSITION INTACT • Skills shortages and high growth in employment underpinning • Aggressive growth plans in demand for education in Healthcare and Community Services place for both businesses • Strong emphasis on employability through practical skills training • Acquisitions remain core and
Slide 4: Half-Year Financial Summary
HALF-YEAR FINANCIAL SUMMARY Statutory result Group 1H22 1H21 Revenue $9.2m $11.6m Cost of sales ($4.8m) ($5.7m) Gross profit $4.4m $5.9m Operating expenses ($5.3m) ($4.6m) EBITDA ($0.9m) $1.3m Net loss after tax before one-off items1 ($2.2m) ($0.4m) Net loss after tax for the period ($2.2m) ($1.1m)
Slide 5: Multi-Year Performance
MULTI-YEAR PERFORMANCE1,2 1 The Company’s financial year ends 31 December. 1H refers to the first half of the financial year, from 1 January to 30 June. 2H refers to the second half of the financial year, from 1 July to 31 December 2 The financial results for 2020 and 2021 included $2.2m and $0.7m r
Slide 6: Operating Business Units
OPERATING BUSINESS UNITS 1H22 1H21 1H22 1H21 Revenue $5.6m $8.9m $3.6m $2.7m EBITDA ($0.1m) $1.7m ($0.1m) $0.2m Education sector Vocational Higher Education Domestic (74%) and Student market International (100%) International (26%) Student numbers1 1,200 594 Student Direct and recruitment Education
Slide 7: Group Overview
GROUP OVERVIEW HEALTH & COMMUNITY MULTI-SECTOR SERVICES FOCUS EDUCATION underpinned by strong PROVIDER AGGRESSIVE CAMPUS domestic employment GROWTH PLANS & ONLINE opportunities vocational and IN PLACE DELIVERY higher education national footprint acquisitions remain key part of strategy QUALITY DIVER
Slide 8: Strategy On Track
STRATEGY ON TRACK Short to medium-term Long-term HE Degrees • New HE courses and online delivery • Significantly expand course offering Typical duration: 3-4 years mode gaining traction – VET and HE Typical price: $54,000 • ALG poised for recovery, capacity in • Extend customer lifetime value place
Slide 9: Operating Highlights
OPERATING HIGHLIGHTS
Slide 10: Student Enrolments
STUDENT ENROLMENTS Trimester 2, 2022 enrolments up 41.8% as Bachelor of Early Childhood Education and online delivery gains traction 1H22 enrolments down 39.0%1, growth expected to return from T4’22 1. 1H22 enrolments are the sum of enrolments in the two academic terms in the half 10
Slide 11: ALG Letters Of Offer – Leading Indicator
ALG LETTERS OF OFFER – LEADING INDICATOR Letters of Offer (LOOs) and New Student Enrolments (NSEs) 1200 Australian border closes, pool of onshore Australian border opens, students starts to decline LOOs and NSEs start to Letters of Offer 1000 rebound recovering highlighting return of student demand
Slide 12: Student Profile
STUDENT PROFILE By Course By Location Average Duration (months)1 Product Geographic Sydney now 41% Duration Ikon HE diversification diversification down from peak - extension offering strategy underway strategy working 56% of enrolments strategy delivering growth paying off, 3 to 4-year now 26 progr
Slide 13: Foundations For Growth
FOUNDATIONS FOR GROWTH Training Rooms Course Offering Room Capacity – By City1 National campus 14 VET 8 HE programs including 2 new ECE Surplus capacity in all states to footprint optimised qualifications accommodate the return of students courses launched in since 1H20, flexibility Underperforming
Slide 14: Financial Results
FINANCIAL RESULTS
Slide 15: ALG
ALG Community Services Programs Supporting Business In Challenging Market Conditions Total enrolments down T4’22 Letters of Offer back to 39.0%, Community over 50% of pre-covid peak Services 61.9% of total for same term enrolments Well positioned for recovery Revenue down 36.5%, in with capacity in
Slide 16: Ikon
IKON Investing 3-5 Years Ahead Enrolments up 41.8% with growth recorded Bachelor of Early Childhood Significant Growth Opportunity across all programs Education gaining traction with 129 Revenue up 33.7% enrolments in lower than enrolment Trimester 2, growth due to 2022 – now 21.7% of scholarship pr
Slide 17: Group Profit And Loss
GROUP PROFIT AND LOSS Decline in ALG enrolments materially impacting results Diversification across Gross profit and VET and HE, domestic margin impacted by and international lower student student market enrolments and assisted in minimising increased teaching revenue decline costs from smaller clas
Slide 18: Balance Sheet And Cashflow
BALANCE SHEET AND CASHFLOW Balance Sheet Intact 30 Jun 22 30 Jun 22 31 Dec 21 (proforma)3 Cash balance at 30 June 2022 only reflects part of cap raise. $'000 $'000 $'000 Further $3.9m received, net of Cash & cash equivalents 9,993 6,058 6,275 fees in July 2022 (refer proforma) Trade & other receivab
Slide 19: Debt Structure
DEBT STRUCTURE 30 Jun 22 Gearing 30 Jun 22 31 Dec 21 Variance (proforma)2 $'000 $'000 $'000 $'000 $6.1m cash at bank Acquisition facility 2,250 2,250 2,750 (500) Bank guarantee facility1 878 878 1,021 (143) Total gross debt 3,128 3,128 3,771 (643) Acquisition facility Cash and cash equivalents 9,993
Slide 20: 2H22 Priorities & Outlook
2H22 PRIORITIES & OUTLOOK
Slide 21: Strategic Priorities
STRATEGIC PRIORITIES Increased student New program volume to derive scale development benefits Governance, academic Online capability in Disciplined quality and student student recruitment M&A activity experience and delivery 21
Slide 22: 2H22 Outlook
2H22 OUTLOOK GROUP • T3’22 enrolments of 1,069, down • Growth in student numbers, • Completion of acquisition of Nurse 11% on T2’22 unit enrolments and revenue Training Australia (NTA) in 4Q22 or continuing 1Q23 • Student demand returning with T4’22 Letters of Offer back to over • Positive EBITDA in
Slide 23: Appendices
APPENDICES =
Slide 24: Group
GROUP Half on half analysis * Movement in percentage points 24
Slide 25: ALG
ALG Half on half analysis * Movement in percentage points 25
Slide 26: Ikon
IKON Half on half analysis * Movement in percentage points 26
Slide 27: Capital Structure
CAPITAL STRUCTURE Meaningful Shareholder and Board Alignment Number % Diluted Ownership1 Ordinary shares1 165,214,443 95.9% Performance rights2,3.4 5,800,000 4.1% Fully diluted 171,014,443 100.0% $’000 Market capitalisation - $0.14 per share1,5 23,130 Cash (6,058) Debt 2,250 1. As at 18 August 2022
Slide 28: Course Offering
COURSE OFFERING Health and Community Services Focus HE Courses – Ikon Typical Job Outcomes Arts Therapy Counselor or Art Therapist Counselling and Psychotherapy Counselor or Psychotherapist Early Childhood Education Early Childhood Teacher VET Courses – ALG Typical Job Outcomes Ageing Support Reside
Slide 29: ALG International Student Diversity
ALG INTERNATIONAL STUDENT DIVERSITY Highly diverse student Diverse student base with low source country concentration risk population with students from over 65 source countries 40.5% 27.8% 20.9% 10.8% Asia Latin Europe Other Wide student America recruitment network Student enrolments by source coun
Slide 30: Executives And Directors
EXECUTIVES AND DIRECTORS Adam Davis Lyndon Catzel Gary Burg BAppFin (Macquarie University) BEc (Sydney University), CA BAcc (Wits), MBA (Wits) Chief Executive Officer and Chief Financial Officer and Non-Executive Chair Managing Director Company Secretary Adam has extensive experience in the educatio
Slide 31: Contacts
CONTACTS Adam Davis Lyndon Catzel Chief Executive Officer Chief Financial Officer E: adam.davis@eduholdings.com.au E: lyndon.catzel@eduholdings.com.au M: 0408 400 888 M: 0414 907 384 31
Slide 32: Disclaimer
DISCLAIMER This presentation, dated 29 August 2022, provides additional While all reasonable care has been taken in relation to the commentary on the Half-Year Report for the period ended 30 June preparation of this presentation, none of the Company, its 2022 for EDU Holdings Limited (EDU, EDU Holdi
Slide 33: Holdings
L Holdings