IDP Education : Annual Report to shareholdersOpens in a new Window

Sustainable Futures

IDP Education Annual Report 2020

As the world begins to rebound from the events of this year, international education is needed now more than ever.

IDP's vision of building a connected community takes on extra importance

as we help globally-minded people acquire the skills needed to make the world a safer, more informed and united place.

Contents

1. Highlights
2. Chairman and CEO's Message

4 The year our global platform connected our community

6 The year of vision-led innovation

1. The year our community goals came into focus
2. Board of Directors

12 Financial Report

1. Shareholders Information

1. Corporate Directory

IDP Annual Report 2020

9 in 10

Close to 9 in 10 students would recommend IDP to family and friends

2020 highlights

The year disruption was met with innovation

Growth despite challenges

60,000

students and 7,100 clients attended our virtual events across our global network

900

institutions accepted IELTS Indicator, a temporary online IELTS test, offered at the peak of COVID-19 restrictions

FY19 97.1m

FY20 107.8m

11%

increase in earnings before interest and tax

26,800	35,000
students shifted to online	students and counsellors connected
learning for IDP's English	on IDP's virtual office platform
language teaching schools
across Cambodia and Vietnam

Despite unprecedented external global challenges, IDP's responsible management and innovative services helped deliver a commendable financial outcome

IDP Annual Report 2020

1

A message from our Chairman and

Chief Executive Officer and Managing Director

Peter Polson, Chairman

Andrew Barkla,

Chief Executive Officer

and Managing Director

74%

of students are holding on to their international education goals, according to IDP Connect research

Dear shareholders,

Reflecting on the year the world did not see coming, throughout FY20 IDP demonstrated its strong management, sector leadership and compassion for its customers.

Operating in one of the sectors hardest hit by COVID-19, we are pleased to report an increase of 11% earnings before interest and tax (EBIT) for FY20, leading to a 2% increase in net profit after tax.

The first half of the year saw IDP achieve record growth across all business lines. In aggregate, we reported a 49% increase in EBIT for the first half. Favourable market conditions and an increasing market share helped drive this excellent performance.

Our teams were on track for a record-breaking year as we worked towards our vision of building a global platform and connected community for customers.

In November, we opened our

400-staff Digital Campus in Chennai, which has now become our engine room for digital innovation.

While at the time we knew this was an important step in our ability to get digital products to market, we could not have foreseen how quickly this hub would return benefits for our customers.

When COVID-19 began to impact our global community and economy, IDP's response was guided by three goals: to keep customers at the centre of our decision making; to take fast, decisive actions to shore up the financial position of the company; and to remain focused on our longer term strategic goals.

Whilst our full year financial performance was below our original expectations, we are proud of how our business has responded to events outside of our control.

Putting our customers first

IDP's customer-centric culture shone through this year as teams adapted our product delivery and customer communications.

From a global perspective, this meant rapidly transitioning face-to-face events and counselling to a virtual platform, proactively implementing recommendations from health authorities to adapt our IELTS test day experience and moving our language learning classrooms online.

At an individual customer level, the role of our counsellors as trusted advisors was pivotal. In an environment of fast-changing and conflicting news, our students and families turned to IDP counsellors as a source of information. This was reflected in our recent IDP Connect research that showed our students rated their counsellor as the source of information they trust above all else - including universities, governments and media.

With our analysis showing 74% of students are holding on to their international study goals, this trusted support should position us well to capture pent-up demand when borders reopen and face-to- face teaching resumes.

Taking decisive action to guide the company

The year-end financial result reflected the responsible actions and foresight of our Board and leadership team.

While revenue was down 2% on last year, it was our prudent decisions and cost control measures that saw the company deliver a commendable outcome.

The early move to raise additional equity to shore up our balance sheet was widely applauded and we were met with very strong demand for our capital raising.

2	IDP Annual Report 2020