IDP Education Half Year Financial Results Six Months to 31 December - PowerPoint PPT Presentation

Pictured: Teams from IDP’s Digital Campus IDP Education Half Year Financial Results Six Months to 31 December 2019

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 background are not recognised under Australian Accounting Standards. These measures are information about IDP Education’s activities current as at the date of this collectively referred to as non-IFRS financial measures. Although IDP Education presentation. The information is given in summary form and does not purport to believes that these measures provide useful information about the financial be complete. In particular you are cautioned not to place undue reliance on any performance of IDP Education, they should be considered as supplemental to the forward looking statements regarding our belief, intent or expectations with measures calculated in accordance with Australian Accounting Standards and respect to IDP Education’s businesses, market conditions and/or results of not as a replacement for them. Because these non-IFRS financial measures are operations, as although due care has been used in the preparation of such not based on Australian Accounting Standards, they do not have standard statements, actual results may vary in a material manner. Information in this definitions, and the way IDP Education calculates these measures may differ from presentation, including forecast financial information, should not be considered similarly titled measures used by other companies. Readers should therefore not as advice or a recommendation to investors or potential investors in relation to place undue reliance on these non-IFRS financial measures. holding, purchasing or selling securities. Before acting on any information you Note: All financial amounts contained in this presentation are expressed in should consider the appropriateness of the information having regard to these Australian dollars unless otherwise stated. Any discrepancies between totals matters, any relevant offer document and in particular, you should seek and the sum of components in tables contained in this Presentation are due independent financial advice. to rounding. 2 | H1 FY20 Financial Results | 12 February 2020

Pictured: Staff from IDP’s Digital Campus Business update 3 | H1 FY20 Financial Results | 12 February 2020

Strong operating and financial performance EBIT NPATA NPAT Revenue $86.9 m $57.7 m $379 m $59.5 m Up 49% Up 42% Up 42% Up 25% English Language Teaching English Language Testing Interim dividend Student Placement 33,800 52,900 736,000 16.5 cps Courses, up 15% IELTS tests, up 11% 11% Up 37% APFs, up 30% 4 | H1 FY20 Financial Results | 12 February 2020

Business highlights Key strategic milestone: New engine room for platform Global platform exceeding Record H1 volumes Record web traffic and build in Chennai launched expectations in terms of event attendance across pipeline growth and Computer-delivered IELTS global network conversion now available in 47 countries across IDP’s Strong growth in digital • Digital Campus launched in Named Global Education network marketing product orders Chennai in November Agency of the Year* from international higher education clients 450 digital, marketing and Digital customer experience • transformation program technical support specialists launched driving rapid product innovation, design, testing and innovation * PIEoneer Awards 2019 5 | H1 FY20 Financial Results | 12 February 2020

Global platform build delivering benefits Unlocking benefits from an investment in technology and people World’s Leading Global Digitising Virtual Leading Student Career best course office contact student Agency CRM and Essentials support search network centre expos CMS 40 40 connected 127 27 Live in 18 59% increase Leads 2,500 500 200% Pilot sites offices countries, in student up 74% counsellors increase in internship across 33 with 4 attendance from India and teams sales v pcp program countries scheduled for virtual connected completed H2 agency Powered by the definitive dataset for the sector Over 3 million unique customers in our connected platform dataset 6 | H1 FY20 Financial Results | 12 February 2020

Nurturing students through their critical decision journey SEO and content Organic driving strong traffic up growth in traffic 35% Early web search and web leads Investment in marketing resources • and automation systems Digitised event format Event attracting record increasing lead conversion attendance up attendance at Event engagement throughout the customer journey 59% roadshows Focus on customer experience Marketing automation and Nurturing Qualified leads up contact centres moving NPS established in 15 markets • 45% customers students through funnel • NPS showing 87% of student placement customers likely or Converting to Students Converting to higher highly likely to recommend IDP applied up applied volumes applied volumes 41% Processes in place to ensure • feedback from unsatisfied customers is captured for continual improvement 7 | H1 FY20 Financial Results | 12 February 2020

Record test volumes in H1 FY20 • IDP market share gains in key • markets Computer-delivered IELTS • available in 167 centres (37 new centres in H1), and in 47 countries Pictured: Computer-delivered IELTS centre Strong growth in the adoption • Innovating the customer experience of computer-delivered IELTS Computer-delivered IELTS • global network now across 70 Program of digital Redesigning booking experience Pilots scheduled for H2 to • • • countries (IDP and British transformation and new test booking experience, Focus on preparation support • capabilities to improve IELTS technology platform and Council) and online communities customer experience global websites • Investing in technology infrastructure 8 | H1 FY20 Financial Results | 12 February 2020

Pictured: Computer-delivered IELTS centre Financial results

H1 FY20 Overview Strong earnings growth with EBIT up 49% Income Summary Statement Constant Half Year Actuals Growth Currency • Revenue growth of 25% Six Months to 31 December H1 FY20* H1 FY19 $m $m % Growth (%)** English Language Testing 215.3 178.6 36.7 21% 15% Strong revenue growth in student placement (34%) • Student Placement 122.6 90.7 31.9 35% 34% underpinned by multi-destination - Australia 54.0 48.7 5.3 11% 11% - Muti-destination 68.7 42.1 26.6 63% 61% English Language Testing volume growth returned to trend • English Language Teaching 16.3 13.3 3.0 23% 15% levels with recovery in India Digital Marketing and Events 22.3 20.1 2.1 11% 9% Other 2.5 1.5 1.0 64% 56% Strong margin expansion at gross profit (+2.0%) and EBIT • Total Revenue 379.0 304.3 74.7 25% 20% (+3.7%) through operational efficiencies and a slower Direct Costs 156.8 132.1 24.7 19% 15% investment in overheads Gross Profit 222.2 172.2 50.0 29% 24% Overhead costs # 116.0 105.4 10.6 10% 6% Increase in depreciation almost entirely driven by impact • Share of Profit/(Loss) of Associate 0.0 0.0 0.1 363% 336% of the AASB16 Leases (see following slide) EBITDA # 106.2 66.8 39.5 59% 53% Depreciation & Amortisation # 17.2 6.8 10.3 151% 146% • NPAT growth of 42% Amortisation of Acquired Intangibles 2.2 1.4 0.7 51% 48% Weaker Australian dollar v pcp a benefit at revenue line EBIT 86.9 58.5 28.4 49% 43% • but partially offset by higher direct costs largely from Net finance expense # -2.8 -0.9 -1.9 -214% -213% IELTS test centre test day activities Profit before tax 84.1 57.6 26.5 46% 40% Income tax expense 26.3 16.9 9.4 56% 53% Final dividend of 16.5cps franked at 17% • NPAT 57.7 40.7 17.1 42% 35% NPATA *** 59.5 41.8 17.7 42% 35% IDP adopted AASB16 Leases from 1 July 2019. The financial information for H1 FY20 has been presented on post AASB16 basis and comparatives have not been restated. The impact of AASB16 on • the aggregate results for H1 FY20 is presented on page 11 # The impact of AASB16 on these line items are shown on page 11 ** “Constant Currency Growth” is calculated by restating the prior comparable period’s financial results using the actual FX rat es that were recorded during the current period *** NPATA is NPAT adjusted by adding back the non-cash post-tax charges relating to the amortisaton of acquired intangible assets. 10 | H1 FY20 Financial Results | 12 February 2020