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IDP Education Macquarie Investor Conference

2 May 2016

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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 is given in summary form and does not purport to be complete. In particular you are cautioned not to place undue reliance on any forward looking statements regarding our belief, intent or expectations with respect to IDP Education's businesses, market conditions and/or results of operations, as although due care has been used in the preparation of such statements, actual results may vary in a material manner. Information in this presentation, including forecast financial information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding, purchasing or selling securities. Before acting on any information you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent financial advice.

Non-IFRS Financial Information

IDP Education uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards. These measures are collectively referred to as non-IFRS financial measures. Although IDP Education believes that these measures provide useful information about the financial performance of IDP Education, they should be considered as supplemental to the measures calculated in accordance with Australian Accounting Standards and not as a replacement for them. Because these non-IFRS financial measures are not based on Australian Accounting Standards, they do not have standard definitions, and the way IDP Education calculates these measures may differ from similarly titled measures used by other companies. Readers should therefore not place undue reliance on these non-IFRS financial measures.

Note All financial amounts contained in this presentation are expressed in Australian dollars unless otherwise stated. Any discrepancies between totals and the sum of components in tables contained in this Presentation are due to rounding.

IDP EDUCATION 2

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Agenda
  1. Overview of IDP Education

  2. Industry Trends

  3. Our Digital Future

  4. The Student Journey

Appendix A. Financial Information

IDP EDUCATION 3

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Introduction to IDP Education

IDP Education is a leading provider of international Student Placement services, high-stakes English Language Testing services and operator of English language schools in South-East Asia

English Language Testing

Student Placement1

English Language Teaching

$237.1m

$104.2m

$20.3m

FY16 revenue

% FY16

revenue

Highlights

65%

29%

Leading provider of Student Placement services into Australia with significant growth opportunities in the US, UK, Canada and NZ

6%

Established provider of English Language Teaching in its target markets

One of the leading international providers of high-stakes English Language Testing services

Note: 1 Student Placement revenue on this page includes revenue from events associated with Student Placement, contracted activities for developmental programs initiated by government or semi- government bodies, and other revenue.

IDP EDUCATION 4

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Leading global provider with broad network and diverse business model

For Student Placement, IDP Education sources students through 93 offices across 30 countries, placing them into over 600 education institutions across 5 destination countries…

Student Placement

  • 93 offices

  • 30 source countries

  • 600+ institutions

  • 5 destination countries

    English Language Testing

  • 400+ test locations

  • 50+ countries

    English Language Teaching

    • 10 campuses

    • 3 countries

Destination country (Student Placement) Source region (Student Placement)

IDP Education IELTS testing countries English Language Teaching countries Head office - Melbourne

…as part-owner of IELTS, IDP Education has over 400 IELTS test locations in over 50 countries

IDP EDUCATION 5

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Market Size and Trends

Our business is primarily driven by the flow of international students to the main English Speaking Destination Countries ("MESDC")

TOTAL MESDC

Annual "Higher Ed" Commencements

~120,000 ~230,000 ~300,000 ~100,000 ~20,000 ~770,000

Current Industry Growth Rates

+ 8-10% + 0% - 0-5% + 5-10% + 0-5%

Industry Conditions/ Regulatory Settings

Positive Neutral Negative Positive Neutral

IDP Volumes (FY16) 24,140 4,050 1,580 1,000 590 31,360

IDP Growth Rates (H1 FY17)

+4% +36% -29% +105% +39% +13%

Agent Share Agents in total represent about 40-70% of international HE student commencements depending on source and destination market dynamics. The remainder mainly apply direct as "DIY" students.

Notes: Annual Higher Education Commencements and Growth Rates are IDP Estimates based on official destination country student enrolment, commencement and visa statistics. Definitional differences between countries require adjustments to official data to estimate comparable "higher education" market size and growth rates

IDP EDUCATION 6

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IELTS remains the world's most popular high-stakes English language test

Recognised by over 10,000 organisations and is the only test accepted for work, study and migration by immigration authorities in Australia, United Kingdom, Canada and New Zealand

  -  

Required by

Governments

    

Required by

Education Providers

Total IELTS Global Volumes (IDP Education & the British Council) 2.9m

3.0

2.5

Millions

2.0

1.5

1.0

CY10 CY11 CY12 CY13 CY14 CY15 CY16

IDP EDUCATION 7

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Student Placement Lead Generation

Strong reputation and physical presence with a relatively immature (but growing) digital offer

Lead Source (March 17) Source of leads from the internet

Advertisement

, 8%Other,

4%

30%

via IELTS, 8%

25%

Referral/ Word of Mouth, 47%

20%

15%

12%

14%

15%

17%18%

Internet, 18%

10%

5%

Events, 15%

0%

2013 2014 2015 2016 2017

Source: IDP Education Student Satisfaction semi-annual survey

IDP EDUCATION 8

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Student Placement Customer Engagement

Competition currently driven by reputation (trust and professionalism), counsellor capability, accessibility of office network and client coverage

Study Abroad Event Face to Face Counselling

IDP EDUCATION 9

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Our Digital Future

Investment in digital platform to deliver multi-channel customer engagement with more effective digital marketing, lead nurturing, conversion and support

Value added

services

Online

Chat

Online course search

Save course search

Rich content

Peer reviews, Student alumni

information

Submit application

Virtual Agency

Office Locator

Timely and relevant

notifications

Physical and Digital Events

F2F

counselling

IDP EDUCATION 10

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The student journey

Our digital strategy will enhance our connectivity to our customers and expand our product offering across the entire student journey

The Student Journey

Discover Convert Support

Awareness Research Engage Apply Accept Arrive Retain

Data/Advertising Placement revenue Value-added services Placement, Career

Discover

Search for real

Look for advice

Attend events

Make

Receive offers

Arranges

Settle in

Further study

study abroad

stories via

applications

- Visa

social media

Study English,

O2O engagement

Make decision

- Accommodation

Establish social

Asses career options

prepare for

with IDP through

Take an

- Flights

networks

Research

IELTS

preferred channel

IELTS test

Accept offer

- Insurance

Internships

career and

- Telco

Seek part time work

study options

- Onshore support

Job placement

Alumni/Referral

By servicing our customers across this digital journey we will have the definitive international student database with unrivalled insights into the flow and intentions of international students

IDP EDUCATION 11

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Our long term strategic vision

An increased focus on technology will deliver on the needs of our customers

Connected Community

The IDP Education international student platform will connect all participants in the industry and drive co- creation in a value- adding ecosystem

Technology

Technology will be a key enabler of our business going forward. We will extend our reach and our relevance through the use of customer centric technology

International students

Journey

Our core mission is linked to the ambitions of the international student.

This is aligned to our heritage and our values. IELTS is a key part of the international student journey

We will extend our relevance beyond the enrolment process and connect with the student's needs across their entire journey.

Ultimately this may include connectivity to their career ambitions

IDP EDUCATION | FY16 Results Presentation 12

Idp Education Ltd. published this content on 02 May 2017 and is solely responsible for the information contained herein.
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