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

2018 Annual Results Presentation 4 & 5 March 2019

TOWARDS

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WHAT ARE WE BUSY WITH?

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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

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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

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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 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 Design an efgective organogram for the new STADIO Multiversity

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WHY ARE WE SO MOTIVATED?

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WHY ARE WE SO MOTIVATED?

Number of first year enrolments at public universities has doubled Student numbers: Public vs Private Private enrolments as percentage of total in SA: 15% Our public universities are full The global average is closer to 35%

557 000

2000

1 143 245

2016 PRIVATE VS PRIVATE 167 408 PUBLIC

975 837

Lack of infrastructure Limited subsidies

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

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To reduce unemployment

1.6M

STUDENTS BY 2030

THE RESULTS OF OUR EFFORTS:

Support the aim of the NDP to achieve the goal of 1.6m students by 2030 Contributing to stimulating growth in the economy

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WHERE DO WE GO?

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12 976

STUDENTS

35 000

STUDENTS

56 000

STUDENTS

100 000+

STUDENTS

Graduate School

• f Business

Faculty of Commerce, Management & Law Faculty of Creative Economies Faculty of Education & Humanities Faculty of Engineering & Information Technology Faculty of Agriculture & Environmental Sciences Faculty of Medicine & Health Sciences

*BHAG

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NAVIGATING THE J-CURVE

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2017 2018 2019 2020 2021 2022 2026

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2017 2018 2019 2020 2021 2022 2026

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WHY ARE WE SO POSITIVE ABOUT THE FUTURE?

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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 ofger 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

FROM 2022 - 2030

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

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FINANCIAL HIGHLIGHTS FROM DEC 2017 TO DEC 2018

CHEPS 8,6 cps 0,6 cps HEPS 7,8 cps 1,2 cps EBITDA R129m R0,5m CORE HEADLINE EARNINGS R70m R3,2m REVENUE R633m R122m STUDENT NUMBERS 29 885 12 976

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FINANCIAL INFORMATION

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• 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)

HIGHLIGHTS FOR 2018

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2018 GROUP ORGANOGRAM

100% 87.2% 74%

74%

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CAMPUSES

PTA • JHB • CPT • KZN • PE • Windhoek

100% 100% 100%

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CREATING A MULTIVERSITY

Faculty of Commerce, Management & Law Faculty of Education & Humanities Faculty of Engineering & Information Technology Faculty of Agriculture & Environmental Sciences Faculty of Medicine & Health Sciences

Expansion plan

Faculty of Creative Economies 22

STUDENT NUMBERS

8% TOTAL STUDENTS

840 840 2 913 4 737 4 117 4 737

2 000 4 000 6 000

2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2017 LIKE-FOR-LIKE 2018 ACTUAL

15% CONTACT LEARNING STUDENTS

10 063 25 148 23 467 25 148

5 000 10 000 15 000 20 000 25 000 30 000

2016 ACTUAL 2017 ACTUAL JUN 2018 ACTUAL 2017 LIKE-FOR-LIKE 2018 ACTUAL

7% DISTANCE LEARNING STUDENTS

12 976 29 885 27 584 29 885

10 000 20 000 30 000 40 000

2016 ACTUAL 2017 ACTUAL 2018 ACTUAL 2017 LIKE-FOR-LIKE 2018 ACTUAL

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STUDENT NUMBER & PROGRAMME ANALYSIS

* Like-for-like comparison including student numbers for all underlying HEI’s (including Milpark, LISOFand Prestige Academy)

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STUDENT RETENTION AND GRADUATION RATE

RETENTION GRADUATION RATE * DROPOUT RATE

* Represents graduation rates as a % of total students

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SALIENT FINANCIAL INFORMATION

EBITDA (Rm)

EBITDA MARGIN % 23% 0,4% 20%

R11m R0,5m R60m R129m R46m R122m R297m R633m

BAD DEBT %

REVENUE (Rm)

1,6% 1,5% 3% 3,2% 20%

100 200 300 400 500 600 700

2016 ACTUAL 2017 ACTUAL 2018 INTERIMS 2018 ACTUAL

(20) 20 40 60 80 100 120 140

2016 ACTUAL 2017 ACTUAL 2018 INTERIMS 2018 ACTUAL

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BAD DEBTS AS % OF REVENUE

BAD DEBTS – PRE RECOVERIES BAD DEBTS – POST RECOVERIES

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SALIENT FINANCIAL INFORMATION (CONTINUED)

HEADLINE EARNINGS (Rm) R7m (R7m) R63m R29m (20) 20 40 60 80

2016 ACTUAL 2017 ACTUAL 2018 INTERIMS 2018 ACTUAL

HEPS (CENTS) 1,5 cps

(2) (1) 1 2 3 4 5 6 7 8 2016 ACTUAL 2017 ACTUAL 2018 INTERIMS 2018 ACTUAL

(1,2 cps) 7,8 cps 3,5 cps

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SALIENT FINANCIAL INFORMATION (CONTINUED)

20 40 60 80

2016 ACTUAL 2017 ACTUAL 2018 INTERIMS 2018 ACTUAL

1 2 3 4 5 6 7 8 9

2016 ACTUAL 2017 ACTUAL 2018 INTERIMS 2018 ACTUAL

R3m R32m R8m R70m 1,7 cps 0,6 cps 4,0 cps 8,6cps CORE HEADLINE EARNINGS (Rm) CHEPS (CENTS)

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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

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STATEMENT OF FINANCIAL POSITION SUMMARY

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CAPITAL INVESTED

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CASH UTILISATION

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

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12 976

STUDENTS

35 000

STUDENTS

56 000

STUDENTS

100 000+

STUDENTS

?

Graduate School

• f Business

Faculty of Commerce, Management & Law Faculty of Creative Economies Faculty of Education & Humanities Faculty of Engineering & Information Technology Faculty of Agriculture & Environmental Sciences Faculty of Medicine & Health Sciences

*BHAG

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THANK YOU RE A LEBOGA ENKOSI DANKIE

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CREATING A MULTIVERSITY