Idp Education Ltd. · ASX:IEL
Idp Education — Investor Presentation (February 2025)
28 slides from Idp Education's investor presentation, Feb 27, 2025
Slide 1: H1 FY25 Financial Results
H1 FY25 Financial Results IDP Education
Slide 2: Important notice and disclaimer
Important notice and disclaimer Disclaimer The material in this presentation has been prepared by IDP Education Limited (ASX: IEL) ABN 59 117 676 463 (“IDP Education") and is general background information about IDP Education’s activities current as at the date of this presentation. The information
Slide 3: Agenda
Agenda 1 H1 FY25 Highlights 2 H1 FY25 Financial Results 3 Industry and Strategy 4 Summary 5 Appendices 3 | H1 FY25 Financial Results | 27 February 2025
Slide 4: 1. H1 FY25 Highlights
1. H1 FY25 Highlights
Slide 5: Well-placed to navigate challenging market conditions
Well-placed to navigate challenging market conditions Optimising the controllables and Revenue Overhead Costs EBIT (Adjusted)2 GOCF Conversion3 maintaining a disciplined approach to costs aligned to $475.4m $167.8m $92.7m 64% short-term market conditions Focus on quality and innovation e
Slide 6: Optimising the controllables with unwavering focus on quality
Optimising the controllables with unwavering focus on quality Market Cost Average Product and innovation A global thought share growth reductions price increases investments leader in the sector IDP Student Placement Adjusting Overheadcostcosts base downto Maximising the Allocating capital t
Slide 7: 2. H1 FY25 Financial Results
2. H1 FY25 Financial Results
Slide 8: Adjusting costs to align with short-term revenue conditions
Adjusting costs to align with short-term revenue conditions Half Year Actuals Growth Constant Currency • Total revenue of A$475.4m down 16% driven by a decline in Student Placement and English Language Testing volumes, partially offset by price increases across all Six Months to 31 December, A$ mill
Slide 9: Disciplined cost management reduced all overhead cost categories
Disciplined cost management reduced all overhead cost categories Overhead Costs (Adjusted) (A$m)* -9% 189 Overhead Costs 183 • Adjusted overhead costs of A$172m were down 9% • Unadjusted overhead costs of $168m were down 14% 172 172 • The ongoing cost reduction program launched in H2 FY24 in respons
Slide 10: Volume reduction partially offset by average price improvement
Volume reduction partially offset by average price improvement Constant Student Placement Volumes Half Year Actuals Growth Currency • Total Student Placement volumes down 27% driven by recent policy changes Six Months to 31 December FY25 FY24 ‘000s / $ % impacting demand and conversion, and a challe
Slide 11: Student Placement volumes outperforming the market
Student Placement volumes outperforming the market 2024 (CY24) IDP Student Placement volume growth v market growth* Australia Canada UK USA • CY24 IDP decline of 15 per cent outperformed market decline of 28 per cent, demonstrating continued market share growth • Outperformance in market share is be
Slide 12: Our focus on quality is evidenced by our superior visa approval rates
Our focus on quality is evidenced by our superior visa approval rates Average Student Visa Approval Rates (H1 FY25)* Australia Canada 95% 95% 94% 92% 84% 83% 78% 56% All countries India All countries India Industry IDP Industry IDP Average Average Average Average For Australia the industry average v
Slide 13: IELTS volumes impacted by weaker market conditions in India
IELTS volumes impacted by weaker market conditions in India, partially offset by continued growth in other markets India Market Indian IELTS v Indian study visa applications for Australia, UK & Canada • A cyclical decline against a long-term structurally growing market Indian study visa applications
Slide 14: Balancing cost management with ongoing disciplined investment in strategic initiatives
Balancing cost management with ongoing disciplined investment in strategic initiatives to deliver long-term returns Gross Profit Margins EBIT (Adjusted) and NPAT (Adjusted) Margins* 86% 87% 85% 86% 86% 85% 27% 83% 84% 81% 81% 82% 81% 79% 25% 78% 78% 23% 22% 21% 20% 19% 20% 18% 20% 18% 18% 65% 17% 62
Slide 15: A robust balance sheet with a Net Leverage Ratio of 1.1x
A robust balance sheet with a Net Leverage Ratio of 1.1x* A$ million 31-Dec-24 30-Jun-24 Change Cash & Debt Current assets • Cash and cash equivalents of $157m, drawn debt of $348m and out-of-the- Cash and cash equivalents 156.9 107.6 49.3 money hedged currency contracts delivering net debt of $196m
Slide 16: 3. Industry and Strategy
3. Industry and Strategy
Slide 17: Increasing quality focus in uncertain policy environment
Increasing quality focus in uncertain policy environment Australia UK Canada USA Developments since • Proposed cap legislation failed • Stable policy with government • Post graduate work rights • No change in policy settings to pass in the Senate intention to bring back further restricted • Visa rej
Slide 18: Early signs that policy certainty and communication driving a shift in preferences
Early signs that policy certainty and communication driving a shift in preferences Share of IDP web search traffic (All source countries)* Be in no doubt: international students are 35% “ welcome in the UK. This new government “ values their contribution – to our universities, to our communities, to
Slide 19: Continuing to execute strongly on IDP's Global Strategy
Continuing to execute strongly on IDP’s Global Strategy 19 | H1 FY25 Financial Results | 27 February 2025
Slide 20: Delivering on our strategy in H1 FY25
Delivering on our strategy in H1 FY25 Engaging with more people in more places As their most trusted partner To deliver exceptional outcomes • Opened 4 new offices in key growth markets • Expanded the services we deliver for our • Over 13,000 offers through FastLane with a partners, supporting 14% a
Slide 21: 4. Summary
4. Summary
Slide 22: Positioned to outperform in challenging sector conditions
Positioned to outperform in challenging sector conditions Outperformance in Disciplined cost Financial Industry Compelling challenging market management strength leadership strategy conditions • Expanding market share • Strong track record and • Net Leverage Ratio of • Trusted brand with a • Clear s
Slide 23: 5. Appendices
5. Appendices
Slide 24: EBIT and NPAT Adjustments
EBIT and NPAT Adjustments FY25 FY24 Growth (Adjusted) Adjustments Adjustments Reported Company Adjusted Reported Adjusted Six Months to 31 December, Unrealised FX Intangible Credit Loss Unrealised FX Intangible Credit Loss M&A Costs Restructure M&A Costs $m % A$ million Losses Amortisation Provision
Slide 25: Foreign Exchange
Foreign Exchange FX Gains/Losses over time (A$m) FY22 FY23 FY24 FY25 Foreign Exchange (FX) Related Gains/Losses • IDP earns revenues and incurs expenses in approximately 50 currencies. The largest H1 H2 H1 H2 H1 H2 H1 net exposures are to INR, CAD, GBP, USD, GBP and CNY but material exposures also e
Slide 26: Cashflow improving due to revenue mix shift and collections
Cashflow improving due to revenue mix shift and collections • GOCF* of $79.1m reflects conversion from reported EBITDA of 64% Half Year Actuals Growth (an improvement over 46% for H1 FY24) Six Months to 31 December, A$ million H1 FY25 H1 FY24 $m % EBITDA 124.0 173.3 -49.3 -28% • The improvement in G
Slide 27: Segmental Earnings
Segmental Earnings Revenue and EBIT by Geographic Segment* • IDP manages its business on a geographic basis. Country and regional Half Year Actuals Growth management are responsible for all activities in their geographic region across each of the company’s key products Six Months to 31 December, A$
Slide 28: Student Placement volumes in H2 FY24 and H1 FY25
Student Placement volumes in H2 FY24 and H1 FY25 H2 FY24 IDP Student Placement H1 FY25 IDP Student Placement volume growth v market growth* volume growth v market growth** The outperformance of IDP volume vs market volume growth in H1 FY25 narrowed due to a range of Australia Canada UK USA Australia
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