Idp Education : Appendix 4E and Financial Report for the year 30 June 2017 Opens in a new Window

IDP EDUCATION LIMITED‌ ABN 59 117 676 463 Financial Report For the year ended 30 June 2017 Appendix 4E IDP EDUCATION LIMITED ABN 59 117 676 463 Year ended 30 June 2017 Results for Announcement to the Market

30 June 2017 $'000	30 June 2016 $'000	Movement $'000	Movement %
Revenue from ordinary activities	394,187	361,636	32,551	9%
Net profit for the year attributable to the owners of IDP Education Limited	41,511	39,914	1,597	4%

Additional Information

Net profit for the year ended 30 June 2017 includes research and development incentives relating to prior periods totalling

$0.2m (30 June 2016: $2.2m). Research and development incentives have been recognised in other revenue $0.2m (2016:

$1.4m in income tax expenses and $0.8m in other revenue).

Dividends	Amount per ordinary share cents	Franked amount per ordinary share cents
2016 final dividend paid	5.50	1.93
2017 interim dividend paid	7.00	3.50
2017 final dividend (declared after balance date)	5.50	3.03

Record date for determining entitlements to the dividends 7 September 2017

Dividend payment date 28 September 2017

Net tangible assets per ordinary share	30 June 2017	30 June 2016
cents	cents
Net tangible assets per share	(14.51)	7.94
Net assets per share	35.48	31.69

Net tangible assets are defined as the net assets less intangible assets and capitalised development costs.

A significant proportion of the Group's assets are intangible in nature totalling $115.2m, including software, goodwill and identifiable intangible assets relating to businesses acquired. These assets are excluded from the calculation of net tangible assets per share, which results in the negative net tangible assets.

Other information required by Listing Rule 4.3A

The remainder of information requiring disclosure to comply with Listing Rule 4.3A is contained in the Financial Report (which includes the Directors' report).

Contents

Directors' report 3

Remuneration Report 20

Auditor's independence declaration 37

Financial report 38

Directors' declaration 89

Independent auditor's report 90

Directors' Report Directors' report

The Directors of IDP Education Limited, present the financial report of IDP Education Limited (the Company) and its controlled entities (the Group, IDP or IDP Education) for the financial year ended 30 June 2017.

Operating and financial review

A summary of IDP Education's consolidated financial results for the year ending 30 June 2017 ("FY17") is set out below. The financial performance of the Group during the year was strong with another record year for revenue and earnings.

Summary Financials (A$m)
Growth
Unit	FY17	FY16	$m	%
Revenue	A$m	394.2	361.6	32.6	9.0%
Gross Profit	A$m	212.7	188.4	24.3	12.9%
EBIT	A$m	61.2	53.7	7.5	13.9%
EBIT (Adjusted) *	A$m	62.6	53.9	8.7	16.1%
NPAT	A$m	41.5	39.9	1.6	4.0%
NPAT (Adjusted) *	A$m	42.6	40.1	2.5	6.2%
EPS	cents	16.6	16.0	0.6	3.8%
EPS (Adjusted) *	cents	17.0	16.0	1.0	6.3%
Debt	A$m	39.1	0.0	39.1	100%
* Adjusted EBIT, NPAT and earnings per share excludes acquired intangible amortisation.

The table above includes a measure of "adjusted EBIT", "adjusted" NPAT and "adjusted" Earnings Per Share ("EPS"). These measures exclude amortisation of intangible assets acquired through business combinations from the calculation. This amortisation charge in FY17 relates primarily to the acquisition of Hotcourses which was completed on 31 January 2017.

The Directors believe these adjustments and other non-IFRS measures included in this report are relevant and useful in measuring the financial performance of the Group. Later in the report the Directors also present "underlying" financial measures which remove the impact of foreign exchange movements during the year. The Directors believe that these "adjusted" and "underlying" metrics provide the best measure to assess the performance of the Group by excluding the impact of currency movements, and non-cash intangible asset amortisation generated from business combinations from the reported IFRS measures.

Review of Operations

IDP Education has a global footprint and a diversified business model across its three business lines. As a result the aggregate performance of the Group for any given year is driven by a large number of variables across many countries. This report provides a high level summary of the highlights and key drivers during the year.

The performance of IDP Education in FY17 represents a continuation of the strong organic growth that the Group has been experiencing over the past five years. This growth has been underpinned by the ongoing global growth in the international education industry and the central role of English as a key global language. IDP Education has a global footprint and diversified business model that benefits from both of these global trends.

From an international education perspective the key macro drivers remained supportive during FY17. IDP Education's key destination market for student placement, Australia, remains an attractive destination for international students. Favourable regulatory settings combined with Australia's continued reputation for high quality education and a safe and friendly living environment underpins its appeal for international students.

Similarly, the Canadian market is benefitting from open and inviting regulatory settings with government policies designed to attract international students to the country. IDP Education has benefited from this dynamic with increasing levels of interest from prospective students in our source countries for study in Canada during FY17.