Idp Education : Chairman's Address to Shareholders Opens in a new Window

IDP EDUCATION LIMITED ANNUAL GENERAL MEETING OF SHAREHOLDERS

CHAIRMAN'S ADDRESS BY PETER POLSON

TUESDAY 23 OCTOBER

Good morning and thank you for joining us today for our Annual General Meeting.

My name is Peter Polson, I am Chairman of your company.

I will shortly hand over to Andrew Barkla, your CEO, to present the operating highlights of the 2018 financial year.

Before I do, I would like to share an update on our progress towards achieving our ambitious vision.

FY18 was an outstanding year for our company.

We set ourselves the bold target of delivering three transformative projects that would greatly improve our customers' international study and career journeys.

These were:

• • To introduce a computer-delivered option of our leading English test, IELTS

• • To begin the rollout of our global digital platform and connected community

• • And finally, to integrate the newly acquired Hotcourses Group into our wider business

I am pleased to report that thanks to the hard work, expertise and passion of our teams all around the world, we have achieved these three goals.

Andrew will discuss each of these in more detail shortly.

I would like to highlight that we reached these milestones while simultaneously delivering:

• • $487 million in revenue for the financial year

• • Strong growth across all four of our product lines

• • And an expanded physical network of student placement offices, language schools and test centres.

Importantly for you, our shareholders, we recorded total net profit after tax of $51.5 m.

This strong profitability allowed us to declare total dividends of 14 cents per share for the financial year which represented a payout ratio of 68 per cent.

In terms of capital growth our share price has performed strongly during the year. The closing price as at 30 June of $10.51 represents a 106 per cent increase from the closing price on 30 June 2017.

This result demonstrates the power of a coordinated, globally leading enterprise that is making appropriate investments in building digital capability.

It reflects customers who are, more than ever, striving for the immense opportunities that come with a global education, despite a global environment of uncertainty and disruption.

It also reinforces that IDP is an Australian success story.

We have been able to commit to the necessary investment that comes with delivering change on this scale because of the strength of our diverse business strategy.

Over the last year our project teams worked side-by-side with our customers to develop, test and refine these new products.

At the same time, our education experts across more than 30 countries continued to deliver our core service, which is assisting students find the right course, in the right city, in the right country.

This skilled team of advisors is critical to the achievement of our vision.

It is their expertise and compassion that students rely on and trust as they navigate the complex decisions that come with an international education. For these students, particularly those from developing markets, this is a life-changing investment.

Central to our successful transformation is empowering this team of experts to have greater visibility of the needs, behaviours and aspirations of our customers.

We also knew we must take the essence of our counsellors' trust and expertise and apply this across all our customer touch points.

While it is only in its initial stages, this is what our global platform and our related human capital management programs are enabling.

The change and growth we have delivered this year requires teams that are united with a clear, shared vision.

I would like to commend Andrew Barkla and IDP's management team for their leadership.

IDP is a business made up of exceptional people who are committed to helping our ambitious students. However, the benefits of international education are not confined to these students.

Wider communities and industries benefit from this exchange of ideas, professional skill sets, cultures and experiences.

On the eve of our 50th anniversary, IDP has reaffirmed its pioneering spirit as we lay the foundations to transform our organisation, and in turn, the wider international education services sector.

We are proud of the achievements of our teams and genuinely excited for the year ahead.

I would now like to hand over to Andrew to discuss our operational review.