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IDP Education Macquarie Investor Conference2 May 2016
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Important notice and disclaimerDisclaimer
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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AgendaOverview of IDP Education
Industry Trends
Our Digital Future
The Student Journey
Appendix A. Financial Information
IDP EDUCATION 3
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Introduction to IDP EducationIDP 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 modelFor 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 TrendsOur 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 testRecognised 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 GenerationStrong 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 EngagementCompetition 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 FutureInvestment 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 journeyOur 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 visionAn 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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