2018 Annual Results Presentation 4 & 5 March 2019 TOWARDS 1 3 - PowerPoint PPT Presentation

2018 Annual Results Presentation 4 & 5 March 2019

TOWARDS 1

3 WHAT ARE WE BUSY WITH? 2

WHAT ARE WE BUSY WITH? Unbundled to create two focused leadership teams: CURRO & STADIO Acquired quality brands to obtain qualifications in the higher education space Accumulated critical mass in terms of student numbers and revenue in order to qualify as a listed entity Listed in October 2017 with a forecast R11m headline loss 3

WHAT ARE WE BUSY WITH? To progress towards reaching 56 000 students by 2026 To find suitable land for expansion purposes To analyse the needs of existing campuses in order to create capacity for students To find a fitting and best practice IT platform to service 100 000 students To accredit new qualifications to populate faculties such as: Engineering, Information Technology, Architectural Technologies, Agriculture and Environmental Sciences To engage with the CHE and DHET to find the best way to become one STADIO Multiversity PLS forecast: R41m headline earnings 4

WHAT ARE WE BUSY WITH? Implement Unit 4 - Reconfiguration, Testing & Training Continue accrediting additional qualifications Prepare building plans / site development plans Analyse Gauteng and KwaZulu-Natal for opportunities Design an e fg ective organogram for the new STADIO Multiversity Submit the registration of STADIO Multiversity to DHET to register as a private HEI Submit the migration of degrees to STADIO Multiversity to the CHE 5

WHY ARE WE SO MOTIVATED? 6

WHY ARE WE SO MOTIVATED? Number of first year enrolments at public universities has doubled 557 000 2000 1 143 245 2016 Student numbers: Public vs Private PRIVATE 167 408 975 837 VS PRIVATE PUBLIC Private enrolments as percentage of total in SA: 15% The global average is closer to 35% Our public universities are full Lack of infrastructure Limited subsidies 7

WE ARE COMMITTED TO WIDENING ACCESS BY GIVING QUALIFYING GRADE 12s (AND WORKING ADULTS) AN OPPORTUNITY TO OBTAIN A DEGREE 8

THE RESULTS OF OUR EFFORTS: 1.6M To reduce unemployment STUDENTS BY 2030 Support the aim of the NDP to achieve the goal of 1.6m students by 2030 Contributing to stimulating growth in the economy 9

WHERE DO WE GO? 10

Faculty of Commerce, Management & Law STUDENTS 12 976 Graduate School of Business STUDENTS 35 000 Faculty of Creative Economies Faculty of 56 000 STUDENTS Education & Humanities Faculty of Engineering & Information Technology 100 000+ STUDENTS Faculty of Agriculture & Environmental Sciences *BHAG Faculty of Medicine & Health Sciences 11

NAVIGATING THE J-CURVE 12

2017 2018 2019 2020 2021 2022 2026 13

2017 2018 2019 2020 2021 2022 2026 14

WHY ARE WE SO POSITIVE ABOUT THE FUTURE? 15

FROM 2022 - 2030 We will become better known and established with the general public, as it is easier to market one Brand We shall have six faculties, through which we can o fg er more than 100 qualifications By then, our system-driven organisation will be able to serve students beyond the borders of South Africa Three comprehensive campuses plus 14 buildings means we can can easily accommodate 100 000+ students with relatively low CAPEX 16

Institutions are autonomous and have internal QA mechanisms and structures but there is an overarching committee to assure 6392 graduates from academic governance and quality across the brands in the Group 2018; and an average module success rate of 77.7% across the Group 93 sta fg members (FT and PT) with doctorates and 143 sta fg members (FT and PT) with Masters qualifications across the Group. Ongoing sta fg 31 active international development remains a priority partnerships and collaboration agreements across the Although not research Group including intensive, sta fg produced 62 student & sta fg research outputs including exchanges, academic accredited journal articles sharing and research and conference papers 2018 Conference focused on ‘Quality 3 institutional research projects: and the RITE (relevance, innovation, (i) Jobs of the Future; (ii) Social transformation, excellent) Curricula’. Consciousness, Responsible Citizenship, The theme for the 2019 Academic & 21st Century Skills; (iii) Applying Conference is ‘Student Support and an neuroscience to improve study material Excellent Learning Experience’ 17

FINANCIAL HIGHLIGHTS FROM DEC 2017 TO DEC 2018 REVENUE EBITDA STUDENT R633m R129m NUMBERS 29 885 12 976 R122m R0,5m CORE HEPS CHEPS HEADLINE 7,8 cps 8,6 cps EARNINGS R70m 1,2 cps 0,6 cps R3,2m 18

FINANCIAL INFORMATION 19

HIGHLIGHTS FOR 2018 • Concluded 4 acquisitions • LISOF (100%) – 1 January 2018 • Milpark (87.2%) – 19 March 2018 Business of CA Connect – 12 April 2018 • • Prestige Academy (100%) – 1 November 2018 • Opened 3 new Embury campuses • Montana • Waterfall Musgrave • • Entered into an agreement to acquire land in Durbanville, Western Cape (subject to conditions) • Acquired and accredited a further 53 programmes (81 registered programmes, 64 pipeline programmes) • Achieved international accreditation for Milpark’s contact and online MBA programme from UK based Association of MBA’s (AMBA) 20

2018 GROUP ORGANOGRAM 87.2% 74% 100% 100% 100% 100% 74% 14 PTA • JHB • CPT • KZN • PE • Windhoek CAMPUSES 21

CREATING A MULTIVERSITY Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Commerce, Engineering & Agriculture & Medicine & Creative Education & Management Information Environmental Health Economies Humanities & Law Technology Sciences Sciences Expansion plan 22

STUDENT NUMBERS CONTACT LEARNING STUDENTS DISTANCE LEARNING STUDENTS 15% 7% 6 000 30 000 25 148 25 148 4 737 4 737 23 467 25 000 4 117 4 000 20 000 2 913 15 000 10 063 2 000 10 000 840 5 000 0 0 2016 2017 2018 2017 2018 2016 2017 JUN 2018 2017 2018 ACTUAL ACTUAL ACTUAL LIKE-FOR-LIKE ACTUAL ACTUAL ACTUAL ACTUAL LIKE-FOR-LIKE ACTUAL TOTAL STUDENTS 8% 40 000 29 885 29 885 27 584 30 000 20 000 12 976 10 000 840 0 2016 2017 2018 2017 2018 ACTUAL ACTUAL ACTUAL LIKE-FOR-LIKE ACTUAL 23

STUDENT NUMBER & PROGRAMME ANALYSIS * Like-for-like comparison including student numbers for all underlying HEI’s (including Milpark, LISOFand Prestige Academy) 24

STUDENT RETENTION AND GRADUATION RATE RETENTION GRADUATION RATE * DROPOUT RATE * Represents graduation rates as a % of total students 25

SALIENT FINANCIAL INFORMATION REVENUE (Rm) EBITDA (Rm) BAD DEBT % EBITDA MARGIN % 3,2% 20% R129m 700 140 R633m 120 600 20% 100 500 3% 80 R60m 400 R297m 60 23% 1,5% 300 0,4% 40 1,6% 200 R11m 20 R122m R0,5m 100 R46m 0 0 (20) 2016 2017 2018 2018 2016 2017 2018 2018 ACTUAL ACTUAL INTERIMS ACTUAL ACTUAL ACTUAL INTERIMS ACTUAL 26

BAD DEBTS AS % OF REVENUE BAD DEBTS – PRE RECOVERIES BAD DEBTS – POST RECOVERIES 27

SALIENT FINANCIAL INFORMATION (CONTINUED) HEADLINE EARNINGS (Rm) HEPS (CENTS) 7,8 cps 80 8 R63m 7 60 6 5 3,5 cps 40 4 R29m 3 1,5 cps 20 2 R7m 1 0 0 (1) (R7m) (1,2 cps) (20) (2) 2016 2017 2018 2018 2016 2017 2018 2018 ACTUAL ACTUAL INTERIMS ACTUAL ACTUAL ACTUAL INTERIMS ACTUAL 28

SALIENT FINANCIAL INFORMATION (CONTINUED) CORE HEADLINE EARNINGS (Rm) CHEPS (CENTS) 8,6cps 80 9 R70m 8 7 60 6 5 4,0 cps 40 R32m 4 3 1,7 cps 20 2 R8m 0,6 cps R3m 1 0 0 2016 2017 2018 2018 2016 2017 2018 2018 ACTUAL ACTUAL INTERIMS ACTUAL ACTUAL ACTUAL INTERIMS ACTUAL 29

CURRENT FINANCIAL POSITION VS PRE-LISTING STATEMENT REVENUE (Rm) EBITDA (Rm) HEPS (CENTS) CHEPS (CENTS) * Adjusted to calculate the impact of core headline earnings adjustments 30

STATEMENT OF FINANCIAL POSITION SUMMARY 31

CAPITAL INVESTED 32

CASH UTILISATION • Capital raise from shareholders is not expected in the short term 33

STUDENTS 12 976 Faculty of Commerce, Management & Law STUDENTS 35 000 Graduate School of Business 56 000 STUDENTS Faculty of Creative Economies Faculty of Education & Humanities 100 000+ STUDENTS Faculty of Engineering & Information Technology Faculty of Agriculture & Environmental Sciences ? *BHAG Faculty of Medicine & Health Sciences 34

THANK YOU ENKOSI RE A LEBOGA DANKIE 35

CREATING A MULTIVERSITY