ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018 - - PowerPoint PPT Presentation

▶
annual financial results
SMART_READER_LITE
LIVE PREVIEW

ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018 - - PowerPoint PPT Presentation

Mar 22, 2024 173 likes •1.14k views

ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018 Tou ough gh Eco Econo nomic mic Times Times - 2018 2018 GDP growth: SA GDP 2018 Last five years 1.2% grew 0.8%

slide-1
SLIDE 1

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

FOR THE YEAR ENDED 31 DECEMBER 2018

ANNUAL FINANCIAL RESULTS

slide-2
SLIDE 2

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Tou

  • ugh

gh Eco Econo nomic mic Times Times - 2018 2018

ANNUAL FINANCE RESULTS for the year ended 31 December 2018

GDP growth: Last five years 1.2% Last three years 0.9% SA GDP 2018 grew 0.8% IMF World Economic Outlook: SA expected to remain below

1.3% GDP growth

Average South African poorer – income per capita declines 5th year in a row Unemployment Stats SA Q4 2018

27,1%

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Source: STATSSA, IMF, City-Press

slide-3
SLIDE 3

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic imper gic imperativ tives es

Innovation

> Business process > Product/market

development Africa Customerfocus

> Easy to do business with > Understanding needs

Academicexcellence

> Teaching & learning > Benchmarking our

performance

> Learning analytics > International & Employer

recognition Growth

> Organic and Acquisitive > Channel > Product > Segment > Geographic

REGULA TION SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human& capital productivity Excellencethrough specialisation

> Market focus > Benchmarking > Data driven

decisions

slide-4
SLIDE 4

Oper Operating En ting Envir vironmen

  • nment

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

103 000 938 000 149 000 966 000 200 000 400 000 600 000 800 000 1 000 000 1 200 000 Private Higher Education Public Higher Education

Higher Education Enrolment Growth

2011 2016 3% 45%

Source: Centre for Risk Analysis, Socio-Economic Survey of South Africa

Number of students

slide-5
SLIDE 5

Oper Operating En ting Envir vironmen

  • nment

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Source: Centre for Risk Analysis, Socio-Economic Survey of South Africa

480 000 11 800 000 590 000 12 300 000 2 000 000 4 000 000 6 000 000 8 000 000 10 000 000 12 000 000 14 000 000 Independent Schools Public Schools

Schools Enrolment Growth

2011 2016 23% 4%

Number of students

slide-6
SLIDE 6

Oper Operating En ting Envir vironmen

  • nment

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

971 26789 1966 23796 5 000 10 000 15 000 20 000 25 000 30 000 Independent Schools Public Schools

  • Nr. of Schools: Independent vs Public

2000 2017 102%

  • 11%

Source: Centre for Risk Analysis, Socio-Economic Survey of South Africa

Number of students

slide-7
SLIDE 7

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Positiv

  • sitive

e momen momentum continu tum continues es

  • Strong Group performance despite the challenging economic environment
  • Positive growth in operating profit and revenue
  • Schools division – good enrolments at entry levels, off-set by leavers due to

emigration and financial difficulties

  • Despite strong headwinds the schools division has continued to grow scale
  • Tertiary division – continued excellent performance
  • Resourcing division – outstanding performance in a tough market
  • Africa expansion strategy demonstrating good potential
slide-8
SLIDE 8

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Good Good res esults ults

Trading ading perf perfor

  • rmance

mance summar summary

Revenue Operational profit Operating margin

11% 14% 17.4%

slide-9
SLIDE 9

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Se Segmenta gmental l tr trading ading perf perfor

  • rmance

mance

Schools Tertiary Resourcing

Revenue

15% 10% 4%

Operating profit

5% 23% 22%

Schools The Rest of Africa

131% (89)%

slide-10
SLIDE 10

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

En Enrolment nu

  • lment number

mbers s

24199 26713 27408 30827 29138 33463 36136 39629

10000 20000 30000 40000 50000 60000 70000 80000

2016 2017 2018 2019 Schools Tertiary: Full Qualifications

70 456 53 337 60 176 63 544

Number of students

slide-11
SLIDE 11

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Gr Group

  • up enr

enrolments

  • lments histor

history

Group enrolments end February Feb-16 Feb-17 Feb-18 % Increase Feb-19 % Increase Schools 24 199 26 713 27 408 3% 30 827 12% Tertiary: Full Qualification 29 138 33 463 36 136 8% 39 629 10% Total 53 337 60 176 63 544 6% 70 456 11%

slide-12
SLIDE 12

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Financ Financial ial Ov Over erview view

slide-13
SLIDE 13

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

1 851 2 594 3 224 3 938 4 389

500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 14 15 16 17 18 R'm

Gr Group

  • up R

Revenu enue

slide-14
SLIDE 14

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Oper Operating pr ting profit

  • fit

256 454 560 668 763 100 200 300 400 500 600 700 800 900 14 15 16 17 18

R'm

slide-15
SLIDE 15

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Gr Group

  • up oper
  • perating mar

ting margin gin

13.85% 17.51% 17.37% 16.96% 17.38%

10% 12% 14% 16% 18% 14 15 16 17 18

slide-16
SLIDE 16

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Nor Normalised malised ear earnings pe nings per shar r share

42.3 53.9 63.3 75.3 81.1 10 20 30 40 50 60 70 80 90 14 15 16 17 18 Cents

slide-17
SLIDE 17

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

286 558 738 806 946 93 223 291 394 348 100 200 300 400 500 600 700 800 900 1 000 14 15 16 17 18 R'm Cash generated by operations Cash from operations (after working capital)

Cash Cash flo flow gener w generation tion

slide-18
SLIDE 18

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Free op ee oper erating cas ting cash h flo flow w bef befor

  • re

e ca cape pex

196 338 468 586 563 50 100 150 200 250 300 350 400 450 500 550 600 650 14 15 16 17 18

R'm

  • Reduced in 2018 due to

lower fees received in advance

  • Different payment terms

selected

  • Good post year-end inflows
  • Strong cash conversion at

139% of earnings

slide-19
SLIDE 19

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Net Net cas cash h pos position ition

  • 436
  • 1 157
  • 1 110
  • 1 617
  • 1 915
  • 2 500
  • 2 000
  • 1 500
  • 1 000
  • 500

14 15 16 17 18

R'm

  • Net Borrowings: EBITDA

2.0 times

  • Covenant

3.5 times

  • Borrowing capacity

R3.3 bn

  • Potential head room

R1.4 bn

slide-20
SLIDE 20

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Per ercen centa tage ge revenu enue e con contribution tribution – se segmental o gmental over erview view

46 39 15

Schools Tertiary Resourcing

2018

slide-21
SLIDE 21

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Per ercen centa tage ge revenu enue e con contribution tribution – se segmental o gmental over erview view

45 39 16 46 39 15

Schools Tertiary Resourcing

2018 2017

slide-22
SLIDE 22

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Per ercen centa tage ge ope

  • perating pr

ting profit contribution

  • fit contribution

– se segmental o gmental over erview view

43 52 5

Schools Tertiary Resourcing

2018

slide-23
SLIDE 23

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Per ercen centa tage ge ope

  • perating pr

ting profit contribution

  • fit contribution

– se segmental o gmental over erview view

46 49 5 43 52 5

Schools Tertiary Resourcing

2018 2017

slide-24
SLIDE 24

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Bad de Bad debt bt

As As a per a percenta centage of ge of r revenue enue

Schools 1% Tertiary 3%

  • Tough economic environment
  • Pressure on consumers
  • Well managed and under control
slide-25
SLIDE 25

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

SCHOOLS SCHOOLS SCHOOLS SCHOOLS

slide-26
SLIDE 26

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls Revenu enue

865 1 350 1 545 1 742 2 009 500 1 000 1 500 2 000 14 15 16 17 18

R'm

slide-27
SLIDE 27

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls ope

  • perating pr

ting profit

  • fit

162 299 321 327 331 100 150 200 250 300 350 400 14 15 16 17 18

R'm

slide-28
SLIDE 28

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls ope

  • perating mar

ting margin gin

18.7% 22.2% 22.4% 18.8% 16.5% 0% 5% 10% 15% 20% 25% 14 15 16 17 18

slide-29
SLIDE 29

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

2017 - 2018

26 751

  • 2 032
  • 979
  • 1 880
  • 1 486

7 009 3 155 30 538

End 2017 End 2018 Matric Leavers Emigration Financial Other Leavers Joiners Acquisitions

23 920

  • 1 636
  • 829
  • 1 230
  • 801

4 803 2 524 26 751

2016 - 2017

AD ADvT vTECH ECH Sc Schoo hools ls enr enrolment w

  • lment waterf

terfall all

Grey comparison to previous year

slide-30
SLIDE 30

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic imper gic imperativ tives es

Innovation

> Business process > Product/market

development Africa Customerfocus

> Easy to do business with > Understanding needs

Academicexcellence

> Teaching & learning > Benchmarking our

performance

> Learning analytics > International & Employer

recognition Growth

> Organic and Acquisitive > Channel > Product > Segment > Geographic

REGULA TION SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human& capital productivity Excellencethrough specialisation

> Market focus > Benchmarking > Data driven

decisions

slide-31
SLIDE 31

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Integration, consolidation, rationalisation

Accelerated growth and acquisitions Nec Necessar essary y chan hanges: ges:

Acquired 49

49 schools past 4

4 year ears

Total 103 schools Doub Doubled led in size

Organisational and management restructure Create a strong portfolio of brands On-board acquisitions Academic standards Shared Services New systems to replace a variety of legacy systems

Single unified systems

  • Simplified
  • Standardised
  • Optimised
  • Automated
  • Time consuming and

complex

  • Making progress
  • Limited impact on

results

slide-32
SLIDE 32

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic gic foc

  • cus

us ar area eas

  • 1. Brand value proposition
  • 2. Academic Development
  • 3. Operational efficiencies:
  • Rationalisation and consolidation of transactional processing
  • Effective and efficient school structures

Benefits:

  • Providing value to our customers
  • Data driven decision making to support student and teacher development
  • Shared services and operational efficiencies
slide-33
SLIDE 33

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic f gic focus

  • cus ar

areas: eas:

Br Brand and value pr value proposit

  • position

ion

slide-34
SLIDE 34

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic gic foc

  • cus

us ar area eas

  • 1. Brand value proposition
  • 2. Academic Development
  • 3. Operational efficiencies:
  • Rationalisation and consolidation of transactional processing
  • Effective and efficient school structures

Benefits:

  • Providing value to our customers
  • Data driven decision making to support student and teacher development
  • Shared services and operational efficiencies
slide-35
SLIDE 35

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Academic Academic De Development elopment

FUTURE FUTURE FOCU FOCUSE SED D EDUCA EDUCATIO TION

IEB, DBE, ISASA, EYFS, Cambridge, International Baccalaureate Future-focused teaching and learning Challenging and engaging curriculum Performance analysis = personalised learning Computational thinking and coding Computer networks and productivity

New age technology spaces

for collaborative problem-based learning

Understanding sustainable global goals and taking action International mindedness Embracing diversity Critical Creative Reflective Inquiring Interpreting Presenting Personal integration Communicating with others Collaboration Leadership Personal behaviour Organisational skills Self reflection Growth mindset EVERY STUDENT IS DEVELOPING INCREMENTALLY, IN AN ENGAGING, INSPIRING AND CHALLENGING LEARNING ENVIRONMENT.

CURRICULUM GLOBAL COMPETENCIES DIGITAL LITERACY GLOBAL CITIZENSHIP

THINKING RESEARCHING COMMUNICATING SOCIAL SKILLS SELF-MANAGEMENT

ANNUAL FINANCE RESULTS for the year ended 31 December 2018

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

slide-36
SLIDE 36

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Technological collaborative problem based learning

Computational thinking and coding Computer networks and productivity

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic f gic focu

  • cus

s on

  • n

Academic de Academic development elopment

slide-37
SLIDE 37

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic f gic focu

  • cus

s ar areas eas:

Aca Acade demic de mic develop elopmen ment

  • Bachelor pass rate increased from 81% to 87% - last 4 years
  • Higher education pass of 98% - last 4 years (degree, diploma, higher certificate)
  • Performance of Maragon and Centurus distinction rates per matric

students - improved since acquired

  • Crawford, Trinityhouse, Maragon and Centurus 100% pass rate
slide-38
SLIDE 38

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Schools academic results comparison

NSC IEB NSC 2018 78.2% 34% IEB 2018 98.9% 91% Matric pass rate Bachelor pass rate Average distinctions per candidate Competitor NSC 2018 94.3% 52% 860 ADvTECH NSC Schools 2018 97.0% 68% 0.9 499 Competitor IEB 2018 99.7% 88% 1 196 ADvTECH IEB Schools 2018 100% 95% 2.0 1 145 ADvTECH Group 2018 99% 87% 1.7 1 644 Number of matrics

Str Strate tegic f gic focus

  • cus ar

areas: eas:

Aca Acade demic mic de develop elopmen ment

slide-39
SLIDE 39

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic gic foc

  • cus

us ar area eas

  • 1. Brand value proposition
  • 2. Academic Development
  • 3. Operational efficiencies:
  • Rationalisation and consolidation of transactional processing
  • Effective and efficient school structures

Benefits:

  • Providing value to our customers
  • Data driven decision making to support student and teacher development
  • Shared services and operational efficiencies
slide-40
SLIDE 40

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic f gic focu

  • cus

s ar area: ea:

Oper Operational tional ef efficiencies ficiencies Academic efficiencies

  • School cost structures
  • Optimise teacher timetable:
  • Teacher: Pupil ratios
  • Staff: Pupil ratios

Organisational and management restructure Integrated Facilities Management Group Shared Services

  • Payroll and HR Admin
  • Transactional finance
  • Debtors and creditors
  • Payments
  • Procurement
  • Brand teams supported by Finance,

Marketing, HR and Principals

  • Time consuming and complex
  • Making progress
  • Limited impact on results

Student Information system

  • Enable data driven decisions
slide-41
SLIDE 41

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

  • Transactional processes
  • Debtors and creditors
  • Payroll + HR Admin
  • Procurement
  • Facilities management

Str Strate tegic f gic focu

  • cus

s ar area: ea:

Ope Operation ional ef al effici ficienc encies ies

slide-42
SLIDE 42

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Accountability and centralised service delivery Standardised service delivery Improved responsiveness Reduce invoices, payments and contracts Suppliers

  • No. Contracts

Cleaning 8 50 Hygiene 12 71 Security 17 64 37 185

Single unified systems Simplified Standardised Optimised Automated

Example: Integrated facilities management

Str Strate tegic f gic focu

  • cus

s ar area: ea:

Ope Operation ional ef al effici ficienc encies ies

slide-43
SLIDE 43

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic f gic focu

  • cus

s ar area: ea:

Ope Operational tional ef effectiv ectivene eness ss, ef , effic ficient sc ient schoo hools st ls structur ucture Tough decisions Trinityhouse School Palm Lakes, KZN Abbotts College, Centurion

Success! Increased enrolments

slide-44
SLIDE 44

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Pinnacle College, Rynfield

  • Acquired 2015
  • Originally defined as an “Inclusive” school
  • Repositioning as mid fee
  • Current student numbers: 291
  • Planned capacity: 1 625

Str Strate tegic f gic foc

  • cus

us ar area ea:

Oper Operational tional ef effectiv ectiveness eness, ef , efficient sc ficient schools s hools str tructur ucture

slide-45
SLIDE 45

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Pinnacle College, Kyalami

  • Acquired 2016
  • Confused market positioning
  • Reposition as mid fee
  • Adjusted fee structure
  • Planned capex to realise full potential
  • Current student numbers: 545
  • Phase 1 : 1 800
  • Phase 2 : 3 600

Str Strate tegic f gic focu

  • cus

s ar area: ea:

Oper Operational ef ional effect ectiv ivenes eness, s, ef efficient ficient s schools hools s struct uctur ure

slide-46
SLIDE 46

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic imper gic imperativ tives es

Innovation

> Business process > Product/market

development Africa Customerfocus

> Easy to do business with > Understanding needs

Academicexcellence

> Teaching & learning > Benchmarking our

performance

> Learning analytics > International & Employer

recognition Growth

> Organic and Acquisitive > Channel > Product > Segment > Geographic

REGULA TION SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human& capital productivity Excellencethrough specialisation

> Market focus > Benchmarking > Data driven

decisions

slide-47
SLIDE 47

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic imper gic imperativ tives es

Innovation

> Business process > Product/market

development Africa Customerfocus

> Easy to do business with > Understanding needs

Academicexcellence

> Teaching & learning > Benchmarking our

performance

> Learning analytics > International & Employer

recognition Growth

> Organic and Acquisitive > Channel > Product > Segment > Geographic

REGULA TION SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human& capital productivity Excellencethrough specialisation

> Market focus > Benchmarking > Data driven

decisions

slide-48
SLIDE 48

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Af African rican edu educa cation tion mar market et

6m households

will earn $5 000 - $20 000 by 2025 “Private education proves to be one of the fastest growing sectors in Africa”

Emerging markets education investments increased more than

5 000% between 2001 and 2015 66m scholars in private

education by 2021 Population will double to 2.4bn

by 2050 1.2bn will

need education

Sub-Saharan Africa, largest and fastest growing

Median age 20

Urbanisation will go from

35% (2010)

to 50% by 2030 Currently: 2/5 of population age is

0–14 years

1/5 between

15–24 years

Source: Caerus Capital: The Business of Education in Africa

slide-49
SLIDE 49

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Cr Crawf awfor

  • rd

d Inter Interna national Sc tional Schoo hool, l, Nair Nairobi

  • bi Keny

enya

Fir First st greenf eenfield de ield development elopment outs

  • utside of

ide of South Afri South Africa ca

  • Preparatory, Primary and College
  • Boarding
  • State of the art facilities
  • Ultimate capacity of 1,685 students
  • Africa Finalist for the World

Architecture Festival Global Awards: Education facility design

  • Enrolments exceed expectations
slide-50
SLIDE 50

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Ex Expan pansion sion into the into the rest est of

  • f Afri

Africa ca

Acquis Acquisiti ition:

  • n: Makini Sc

Makini Schools hools – Nair Nairobi &

  • bi & Kis

Kisumu, umu, Keny enya

  • Founded in 1978
  • 3 197 students
  • K12 to Grade 12
  • 7 Schools, 3 campuses
  • Positive enrolments
slide-51
SLIDE 51

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Mid Mid-Fee ee sc schoo hools ls – excellent cellent growth wth

Mooikloof High School

slide-52
SLIDE 52

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls – Gr Growth wth

Mi Mid-fee sect ee sector

  • r
  • Opening 2020
  • Mid Fee School
  • Preparatory, Primary and College (opening grade 000 –

grade 9)

  • Planned capacity: 1 875

Pinnacle College, Waterfall

slide-53
SLIDE 53

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls – Gr Growth wth

Mi Mid-fee sect ee sector

  • r
  • Opening 2020
  • Mid Fee School
  • Preparatory, Primary and College (opening grade 000

– grade 9)

  • Planned capacity: 1 625

Pinnacle College, Linden

slide-54
SLIDE 54

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Cr Crea eate te a str a strong

  • ng por

portf tfolio

  • lio of
  • f br

brand ands

Mi Mid-fee success ee success

Opening in 2020 Success Re-positioning

slide-55
SLIDE 55

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls – Gr Growth wth

Pr Premium sect emium sector

  • r
  • Opening 2020
  • Preparatory, Primary and College

(opening grade 000 – grade 9)

  • Planned capacity: 1 800

Trinityhouse, Glenvista

slide-56
SLIDE 56

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic imper gic imperativ tives es

Innovation

> Business process > Product/market

development Africa Customerfocus

> Easy to do business with > Understanding needs

Academicexcellence

> Teaching & learning > Benchmarking our

performance

> Learning analytics > International & Employer

recognition Growth

> Organic and Acquisitive > Channel > Product > Segment > Geographic

REGULA TION SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human& capital productivity Excellencethrough specialisation

> Market focus > Benchmarking > Data driven

decisions

slide-57
SLIDE 57

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Inno Innova vation tion - New New pr produ

  • duct

ct de developme elopment nt

The Br he Bridge As idge Assis sisted ted Lear Learning Sc ning School hool

  • Grade 0 – 7
  • Northern Suburbs, Gauteng
  • Opened 2018
  • Enrolments ahead of targets
slide-58
SLIDE 58

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls – Gr Growth wth

Str Strong pipeline

  • ng pipeline – Mi

Mid-fee ee focus

  • cus

Schools By phase (end Feb) Pipeline

103 103 112 117 122

Total

103

9 5 5 3

2019 2020 2021 2022 2023

112 117 122 125

slide-59
SLIDE 59

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Sc Schoo hools ls – Gr Growth wth

Sc Schools ca hools capacity pacity Schools capacity - end of February Feb-16 Feb-17 Feb-18 Feb-19 Students enrolled ('000) 24.2 26.7 27.4 30.8 Existing building capacity ('000) 28.6 31.2 33.0 38.2 % Existing building capacity utilised 85% 86% 83% 81%

slide-60
SLIDE 60

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

TE TERTIAR TIARY TER TERTIAR TIARY

slide-61
SLIDE 61

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Ter ertiar tiary y revenu enue

799 954 1228 1556 1719 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 14 15 16 17 18

R'm

slide-62
SLIDE 62

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Ter ertiar tiary y ope

  • perating

ting pr profit

  • fit

84 135 223 321 395 50 100 150 200 250 300 350 400 14 15 16 17 18

R'm

slide-63
SLIDE 63

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Ter ertiar tiary y ope

  • perating

ting mar margin gin

10.5% 14.1% 18.2% 20.7% 23.0% 0% 3% 6% 9% 12% 15% 18% 21% 24% 27% 14 15 16 17 18

slide-64
SLIDE 64

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Ter ertiar tiary y Division Division

  • The IIE – SA’s largest and most accredited ‘private university’
  • The IIE and Central Academic Team have 3 000+ academic staff
  • 6 Established faculties
  • 201 Accredited tertiary courses
  • Comprehensive integrated Student Information System
  • International partnerships and endorsements
  • BAC – British Accreditation Council
  • City and Guilds Institute UK
  • Swiss Education Group
  • World Association of Chefs
  • AHA – American Hospitality Academy
  • Fontys Academy for Creative Industries (Holland)
  • Offenbach University of Art and Design (Germany)
  • Sup de Pub School of Communication (France)
slide-65
SLIDE 65

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Str Strate tegic imper gic imperativ tives es

Innovation

> Business process > Product/market

development Africa Customerfocus

> Easy to do business with > Understanding needs

Academicexcellence

> Teaching & learning > Benchmarking our

performance

> Learning analytics > International & Employer

recognition Growth

> Organic and Acquisitive > Channel > Product > Segment > Geographic

REGULA TION SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human& capital productivity Excellencethrough specialisation

> Market focus > Benchmarking > Data driven

decisions

slide-66
SLIDE 66

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

THE THE IND INDEPEN EPENDE DENT NT INS INSTITU TITUTE TE OF OF EDUC EDUCATION TION

South Africa’s largest and most accredited “private university”/private higher education system

slide-67
SLIDE 67

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

THE THE IIE F IIE FACUL CULTIE TIES

FACU CULTY Y OF F CO COMMERCE CE FACULTY OF INFORMATION & COMMUNICATION TECHNOLOGY FACULTY OF SOCIAL SCIENCES FACULTY OF LAW

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

FACULTY OF EDUCATION FACULTY OF HUMANITIES

slide-68
SLIDE 68

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Academic Academic excellenc cellence

Accr Accredited edited ter tertiar tiary y cour courses ses by by ca cate tegor gory

42 programmes in the accreditation pipeline

201

101

IIE

1 MASTERS 11 HONOURS 28 DEGREES 34 DIPLOMAS 27 HIGHER CERTIFICATES

3

Capsicum

3 NATIONAL CERTIFICATES AND DIPLOMAS

5

The Private Hotel School

1 DEGREE 1 ADVANCED DIPLOMA 1 DIPLOMA 1 HIGHER CERTIFICATE 1 NATIONAL CERTIFICATE AND DIPLOMA (N1-6)

92

Oxbridge

12 DIPLOMAS 80 NATIONAL CERTIFICATES AND DIPLOMAS

total

29

DEGREES

11

HONOURS

1

MASTERS ACCREDITED TERTIARY COURSES

84

NATIONAL CERTIFICATES AND DIPLOMAS (N1 –N6)

1

29 47

DIPLOMAS ADVANCED DIPLOMA

28

HIGHER CERTIFICATES

slide-69
SLIDE 69

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

The he IIE IIE – Pr Prof

  • fess

essional ional qua qualif lifica ications tions

IIE’s Professional Qualifications 2017 2019 Growth Law 1 634 2 686 64% Education 1 783 3 964 122% Accounting 166 607 266% Total 3 583 7 257 103%

slide-70
SLIDE 70

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

29

Campuses

82%

Average module pass rate

+3 000

Academic Staff

40 000

Registered Students for full time qualifications

Ter ertiar tiary y division by division by number numbers

Febr bruar uary y 2019 2019

slide-71
SLIDE 71

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

The he IIE IIE – Trend endsette setters

LLB High C LLB High Cour

  • urt

t ruling succes uling success

  • High Court rules in favour of IIE Varsity College law degree
  • Positive precedent to address the issue of ‘private university’ /

private higher education institutions

  • Confirms to professional bodies in all fields, including law,

engineering, accountancy, teaching, nursing and psychology that the same rules apply across the board, and that students and graduates from public and private universities and institutions must be treated equally

slide-72
SLIDE 72

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

The he IIE IIE – teac teaching hing and and lear learning ning excellenc cellence

 Data-driven decision-making informed by global best practice and local relevance  Investment in technology from business solutions and student learning experience  Superior student support before, during and after studies  Continuous professional development of lecturers and industry collaboration  Unparalleled market insight and response: student needs & regulatory environment

slide-73
SLIDE 73

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

The he IIE IIE – Teac eaching hing and and lear learning e ning excellenc cellence

  • The Independent Journal of Teaching and Learning
  • The only private higher education provider publishing

an accredited research journal

  • Train and develop our own lecturers, set standards

and teaching practices

slide-74
SLIDE 74

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Da Data ta driv driven en dec decision making ision making

Academic int Academic intelligence elligence

Cohort qualifications dashboard

Setting module targets Performance tracking Analysed by:

  • Students
  • Lecturers
  • Campuses
slide-75
SLIDE 75

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Reputation match

  • Academic Excellence
  • Module pass rate
  • Student employability

Add 32 qualifications to portfolio

  • MBA
  • Engineering
  • Public health, etc.

West Rand campus – capacity 6 500 students 4 Student residences

ANNUAL FINANCE RESULTS for the year ended 31 December 2018

Mona Monash S sh SA A (MSA) (MSA)

Expected to be effective April 2019

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

slide-76
SLIDE 76

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Pretoria Johannesburg Durban

slide-77
SLIDE 77

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Pretoria Johannesburg Durban 2018

slide-78
SLIDE 78

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Pretoria Johannesburg Durban 2018 Cape Town 2020

slide-79
SLIDE 79

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Polokwane 2016 Pretoria Johannesburg Durban 2018 Cape Town 2020

slide-80
SLIDE 80

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Polokwane 2016 Pretoria Johannesburg Durban 2018 Pietermaritzburg 2018 Bloemfontein 2018 Cape Town 2020

slide-81
SLIDE 81

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Polokwane 2016 Pietermaritzburg 2018 Bloemfontein 2018 Port Elizabeth 2020 Pretoria Johannesburg Durban 2018 Cape Town 2020

slide-82
SLIDE 82

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Growth

Polokwane 2016 Pietermaritzburg Bloemfontein Port Elizabeth 2020 Mbombela 2021 Pretoria Johannesburg Durban 2018 Pietermaritzburg 2018 Bloemfontein 2018 Cape Town 2020

slide-83
SLIDE 83

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

New hospitality campus in Rosebank 2018

2 CAMPUSES 6 CAMPUSES

ANNUAL FINANCE RESULTS for the year ended 31 December 2018 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Ter ertiar tiary y se segment g gment growth wth

slide-84
SLIDE 84

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Academic Ex Academic Excellenc cellence

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

International and employer recognition

43 760

The IIE graduates

71%

were employed within 6 months after graduation

slide-85
SLIDE 85

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

4 Silver 4 Bronze 2 New Blood Awards 1 student in the top 10 5 Semi- finalists 1 Student admitted to international society 2nd Place 1 Gold 1 Gold Muse

Str Strate tegic Imper gic Imperativ tives es

Inter Interna national and emplo tional and employer ers r s recognition ecognition

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

slide-86
SLIDE 86

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Winner Most Scintillating KWV Brandy Cocktail Top 3 Young Star of the Year Chef Most Promising Chef –Best Starter Purple Ribbon – Best Main Course Young Star – Beverage Student of the Year Reaching for Young Stars Inter-school Challenge InfoChef 2018 2nd and 3rd Place Prawn Festival @ Gold Circle SACA inter-school event 2nd Place Winner

Str Strate tegic Imper gic Imperativ tives es

Inter Interna national and emplo tional and employer ers r s recognition ecognition

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

slide-87
SLIDE 87

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Varsity College have 4 of the top 20 students ITC Certified Board exams 82% Pass rate

Str Strate tegic Imper gic Imperativ tives es

Inter Interna national and emplo tional and employer ers r s recognition ecognition

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

slide-88
SLIDE 88

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

RESOUR RESOURCING CING

slide-89
SLIDE 89

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Reso esour urcing r cing revenu enue

194 297 461 644 670 100 200 300 400 500 600 700 800 14 15 16 17 18

R'm

slide-90
SLIDE 90

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Reso esour urcing op cing oper erating pr ting profit

  • fit

18 29 20 32 39 10 20 30 40 50 14 15 16 17 18

R'm

slide-91
SLIDE 91

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Reso esour urcing op cing oper erating mar ting margin gin

9.4% 9.8% 4.4% 5.0% 5.8% 0% 2% 4% 6% 8% 10% 12% 14 15 16 17 18 Different business model

slide-92
SLIDE 92

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Outstand Outstanding P ing Perf erfor

  • rmance

mance

SA markets

Grew market share in a declining market

Superb growth

Endorses our strategy to diversify and explore alternative markets

Africa revenue

Dollar based

  • Placements increased by

23%

  • Highly cash generative
  • SA markets: grown our

market share in a declining market

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

slide-93
SLIDE 93

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Pr Prosp

  • spects

ects

  • Strong position to explore numerous opportunities in and
  • utside South Africa
  • Tertiary and Resourcing divisions are well positioned and

perform strongly

  • Schools division
  • Continue integration, consolidation and rationalisation

phase

  • Drive operational efficiencies
  • Sharpen market focus
slide-94
SLIDE 94

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Dividend vidend – Prudent dent and resp sponsib

  • nsible

le

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

Dividends per share for the year

30.0 cents

Final Gross Dividend

15.0 cents

  • Significant investment opportunities
  • Balance between preserving cash for development projects and

shareholder returns

  • Capital allocations amount R1.9bn
  • Prudent and responsible management of cash resources
slide-95
SLIDE 95

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

QUESTIONS

slide-96
SLIDE 96

ANNUAL FINANCIAL RESULTS for the year ended 31 December 2018

THANK YOU