FIN FINANCIAL ANCIAL RESUL RESULTS TS FOR THE SIX MONTHS ENDED - - PowerPoint PPT Presentation

▶
fin financial ancial
SMART_READER_LITE
LIVE PREVIEW

FIN FINANCIAL ANCIAL RESUL RESULTS TS FOR THE SIX MONTHS ENDED - - PowerPoint PPT Presentation

Oct 02, 2022 224 likes •751 views

INTERIM INTERIM FIN FINANCIAL ANCIAL RESUL RESULTS TS FOR THE SIX MONTHS ENDED 30 JUNE 2020 1 CONTENTS 01 04 UNIVERSITY / OVERVIEW TERTIARY DIVISION 02 05 FINANCIAL RESOURCING PERFORMANCE DIVISION 03 06 SCHOOLS DIVISION

slide-1
SLIDE 1

INTERIM INTERIM FIN FINANCIAL ANCIAL RESUL RESULTS TS

FOR THE SIX MONTHS ENDED 30 JUNE 2020

1

slide-2
SLIDE 2

01

OVERVIEW

04

UNIVERSITY / TERTIARY DIVISION

02

FINANCIAL PERFORMANCE

05

RESOURCING DIVISION

03

SCHOOLS DIVISION

06

PROSPECTS

CONTENTS

2

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-3
SLIDE 3

OBSERVATIONS FROM THE PANDEMIC

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

3

Speed, agility and success with which the group responded Robust and resilient

  • rganisation
  • Tertiary
  • Schools
  • Resourcing

Quality of our people

THE MEASURE OF A BUSINESS IS HOW IT RESPONDS TO A CHALLENGE OR CRISIS

slide-4
SLIDE 4

RAPID RESPONSE TO COVID-19

IMMEDIATE PRIORITIES WERE

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

4

Health, safety and well- being of all stakeholders and all that entails (international best practice, government directives and protocols) Critical to continue to deliver quality academic instruction and minimize the impact on students Pay specific attention to the needs of students and parents during this disruptive time including pastoral care Sustainability of the group

  • Cash preservation
  • Capex reduction
slide-5
SLIDE 5

VALUE OF OUR PEOPLE

SOCIAL IMPACT

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

5

Academic Excellence

At core of strategy

Intellectual Capital

Lies with our people and teams

Financial Impact

Continue to pay employees and contractors as far as possible

Benefits

Evident in employee motivation and adaptability

Results

Evident in student retention and joiners

Wellness Programme

Manage anxiety and build employee resilience

slide-6
SLIDE 6

Sc Schoo hools ls

  • Biggest challenge
  • Standardised on Microsoft

platforms

  • Consolidated Central

Academic Team

  • Results: Rapid successful

transition Tertiary

  • Online capability in place

seamless transition

  • Confident in ability to

continue and sustain quality delivery

− LMS implemented since 2015 − Growing online offering − Established digital campuses − Successful blended learning model

  • Scale and scope of online

support

CONTINUED ACADEMIC DELIVERY

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

6

Ov Over erview iew

  • Trained and supported

+5 500 teachers and lecturers to transition from face-to-face delivery to online platforms

  • Ability to continue academic
  • ffering seamlessly
  • Not a single academic day

lost OVERVIEW

slide-7
SLIDE 7

Mental, emotional and physical well-

being of students and educational psychology support

to parents with coping mechanisms

COVID-19 IMPACT – STUDENT SUPPORT

ADDRESSING THE NEEDS OF OUR STUDENTS AND PARENTS

7

Supported 5 386 families with financial assistance – R37 million Supplied ~8 000 students with data support Tertiary boot camps – virtual catch

up sessions

Rosebank College Graduate Empowerment Programme placed

233 graduates during lockdown,

continued coaching sessions and formed 32 new

employer relationships

24/7 service desk support 1000+

calls / week

Virtual interaction: graduation

ceremonies; open days and campus tours; cultural, sport and social activities; pastoral care Student support improved attendance:

  • nline 98% vs 95% in face-to-face

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-8
SLIDE 8

COVID-19

4 187 3 871 13 190 13 098 9 016 8 992 26 393 25 961 3% 1% 2% 2%

  • 11%
  • 2%
  • 2%
  • 3%

Feb 20 Jun 20 Feb 20 Jun 20 Feb 20 Jun 20 Feb 20 Jun 20

Leavers Joiners Pre-Primary Primary High Total

IMPACT ON SA SCHOOL STUDENT NUMBERS

8

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-9
SLIDE 9

COVID-19

5 977 5 976

2%

  • 3%

Feb 20 Jun 20

Leavers Joiners Schools Africa

IMPACT ON SCHOOLS REST OF AFRICA STUDENT NUMBERS

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

9

slide-10
SLIDE 10

* Statistically higher attrition rate than normal

COVID-19

44 975 46 620 9%

  • 5%

Feb 20 Jun 20

Leavers Joiners Tertiary

TERTIARY STUDENT NUMBERS

10

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-11
SLIDE 11

IMPACT ON STUDENT NUMBERS

32 370 31 937 44 975 46 620 77 345 78 557 2% 9% 6%

  • 3%
  • 5%
  • 4%

Feb 20 Jun 20 Feb 20 Jun 20 Feb 20 Jun 20

Leavers Joiners Schools Group Tertiary

GROUP IMPACT ON STUDENT NUMBERS

11

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

2%

Group

slide-12
SLIDE 12

FINANCIAL PERFORMANCE

02

slide-13
SLIDE 13

SOUND FINANCIAL PERFORMANCE

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

13

REVENUE FREE OPERATING CASH FLOW BEFORE CAPEX NEPS

32%

  • 2%

13% 4%

OPERATING PROFIT CASH GENERATED BY OPERATING ACTIVITIES

27%

slide-14
SLIDE 14

CONTINUED GROWTH

1 572 1 929 2 175 2 499 2 829 H1 16 H1 17 H1 18 H1 19 H1 20

16%

293 344 404 428 444 H1 16 H1 17 H1 18 H1 19 H1 20

11%

Group revenue (R’m) Operating profit (R’m)

14

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

4% 13%

CAGR

slide-15
SLIDE 15

ESTIMATED DIVISIONAL IMPACT OF COVID-19

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

15

R’m Schools – South Africa Schools – Rest of Africa Tertiary Resourcing – South Africa Resourcing – Rest of Africa Total

Lost revenue (26.3) (19.5) (16.8) (25.7)

  • (88.3)

Cost savings related to lost revenue 10.9 6.1 3.6 5.5

  • 26.1

Net effect of lost revenue (15.4) (13.4) (13.2) (20.2)

  • (62.2)

COVID-19 related costs (7.9) (2.3) (4.2) (0.3) (0.7) (15.4) Doubtful debtors expense* (15.1) (9.1) (47.2) (0.6) (0/5) (72.5) Other cost savings 12.1 1.2 8.4 5.3

  • 27.0

Estimated impact on operating profit (26.3) (23.6) (56.2) (15.8) (1.2) (123.1)

* 80% of the increase in bad debts written-off and the provision for doubtful debtors is considered to be COVID-19 related

slide-16
SLIDE 16

4% 32% 17% 13%

2 917 H1 20 excluding COVID-19 impact 293 344 404 428 444 H1 16 H1 17 H1 18 H1 19 H1 20 1 572 1 929 2 175 2 499 2 829 H1 16 H1 17 H1 18 H1 19 H1 20 567 H1 20 excluding COVID-19 impact

EXCLUDING COVID-19 IMPACT

16

Revenue (R’m) Operating profit (R’m)

CONTINUE GROWTH

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-17
SLIDE 17

45%

  • 2%

57%

  • 2% 2%

2020

41%

  • 1%

57% 1% 2%

2019

38% 4% 42% 3% 13%

2020

39% 4% 41% 5% 11%

2019

Segmental revenue contribution June Segmental operating profit contribution June

SEGMENTAL OVERVIEW

17

Schools – South Africa Schools – Africa Tertiary Resourcing – South Africa Resourcing – Africa

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-18
SLIDE 18

CASH PRESERVATION

362 424 555 587 606 610 785 890 999 1 268 H1 16 H1 17 H1 18 H1 19 H1 20 Cash generated from operations Cash from operations (after working capital)

20%

Cash flow generation Cash preservation actions HEALTHY LIQUIDITY MAINTAINED

18

  • Curbing non-essential capex

− Capex expected to be ~R300m in FY2020

  • Initiated cost savings in the

business without furloughing

  • ur education employees

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

CAGR

slide-19
SLIDE 19

610 785 890 999 1 268

  • 907
  • 919
  • 1 448
  • 1 805
  • 1 716

H1 16 H1 17 H1 18 H1 19 H1 20

R’m

Cash generated by

  • perations

Net borrowings position

CASH VS NET BORROWINGS POSITION

19

20%

Ratio = Net Borrowing : Cash generation

1.5 1.2 1.6 1.8 1.4

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

BORROWINGS WELL WITHIN COVENANTS

Covenants Net Borrowings: EBITDA Banks: 3,5x Internal: 3,0x Actual: 2,1x

CAGR

slide-20
SLIDE 20

0,0 14,4 24,8 43,9 78,9 15,7 site acquisition 3 completion of campuses

  • f new schools

Student management systems Additions to existing sites Furniture, fittings, IT and vehicles Acquisition

  • f shares in Schole

R’m

Capex Projects

162.0 177.7

CAPEX AND ACQUISITIONS

20

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

SUSTAINABLE CAPEX REDUCTION

slide-21
SLIDE 21

DEBTORS’ PROVISION

74 165

H1 2019 H1 2020

Trade and

  • ther receivables

Credit losses as % of revenue BELOW TARGET COLLECTIONS

21

R’m % increase Unaudited 30 June 2020 30 June 2019 Trade receivables 26% 865 686 Loss allowance 39% (437) (314) 428 372 Coverage of debtors' balance 51% 46%

  • Collections in the period 8% higher than H1 2019,

but 5% below our target

  • Approximately R1bn collected in H2 fees

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020 3% 6%

slide-22
SLIDE 22

SCHOOLS DIVISION

03

  • Agility in offering continued quality education

through adapting modes of delivery

  • Continuing to build scale in the rest of Africa
  • Benefits of restructuring and rationalisation
slide-23
SLIDE 23

153 159 172 175 198 H1 16 H1 17 H1 18 H1 19 H1 20 739 814 945 985 1 072 H1 16 H1 17 H1 18 H1 19 H1 20 1 098 H1 20 excluding COVID-19 impact

10%

225 H1 20 excluding COVID-19 impact

7%

EXCLUDING COVID-19 IMPACT

23

Revenue (R’m) Operating profit (R’m)

SCHOOLS SA

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

CAGR

9% 13% 11% 28%

slide-24
SLIDE 24

39% 18% 39%

127

H1 20 excluding COVID-19 impact 29 31 47 92 108 H1 16 H1 17 H1 18 H1 19 H1 20

12 13 8

  • 5
  • 9

H1 16 H1 17 H1 18 H1 19 H1 20

15

H1 20 excluding COVID-19 impact

EXCLUDING COVID-19 IMPACT

24

Revenue (R’m) Operating profit (R’m)

SCHOOLS REST OF AFRICA

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

CAGR

GIS GIS GIS & CIS GIS & CIS, Makini Makini impact

slide-25
SLIDE 25

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

25

20,7% 19,6% 18,2% 17,8% 18,8%

H1 16 H1 17 H1 18 H1 19 H1 20

20,5%

H1 20 excluding COVID-19 impact

SCHOOLS SA OPERATING MARGIN

EXCLUDING COVID-19 IMPACT Operating margin (%)

slide-26
SLIDE 26

PORTFOLIO OF CLEARLY DEFINED BRANDS

MEANINGFUL MARKET SEGMENTS Modern, Progressive, Academic focus Traditional, holistic, Christian based Early childhood development Online/ home schooling Mid-fee Academic assisted and support

slide-27
SLIDE 27

PORTFOLIO OF CLEARLY DEFINED BRANDS

HISTORIC WORK DONE

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

27

Acquired: Summit College Opened: Founders Hill PP&P

2016

Acquired: Glenwood House Elkanah House

2017

Acquired: Makini schools Opened: Crawford International School Kenya The Bridge Copperleaf High Rebranded: Summit → Pinnacle College Kyalami, Kathstan → Pinnacle Rynfield Founders Hill & Copperleaf → Pinnacle Colleges

2018

Closed: Trinityhouse Palm Lakes High Abbotts Century City Junior Colleges Tiny Town

2019

Opened:

Trinityhouse Glenvista Pinnacle College Linden Pinnacle College Waterfall Reposition: Maragon Ruimsig → Crawford International Merged: JC Sandton & Crawford Village → Crawford International Bryanston Closed: Trinityhouse Palm Lakes Trinityhouse North-Riding

2020

Open: Evolve Reposition: Pinnacle College Olympus Pinnacle College Mooikloof

2020

slide-28
SLIDE 28

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

28

Closed: Trinityhouse Palm Lakes High Closed: Abbotts College Century City Closed: Junior College Tiny Town

2018 2020

Opened: Pinnacle College Waterfall

2019 2017

&P

2016 2015

Opened: The Bridge Opened: Copperleaf High Rebranded:

  • Summit to Pinnacle College Kyalami
  • Kathstan to Pinnacle College Rynfield
  • Founders Hill to Pinnacle College Founders Hill
  • Copperleaf to Pinnacle College Copperleaf

Acquired: Makini schools Opened: Crawford International School Kenya Open: Evolve Opened: Trinityhouse Glenvista Closed: • Trinityhouse Palm Lakes

  • Trinityhouse North-

Riding Opened: Pinnacle College Linden Rebranded:

  • Maragon Ruimsig as

Crawford International

  • JC Sandton and Crawford

Village as Crawford International Bryanston

PORTFOLIO OF CLEARLY DEFINED BRANDS

CONTINUE TO ENHANCE BRAND VALUE PROPOSITION

Progressive / modern Online / home- schooling Early childhood development Mid-fee Academic assisted and support Traditional/ holistic/ Christian based

  • Trinityhouse
  • Maragon

Abbotts College Junior Colleges

  • Crawford International
  • Centurus Colleges

Acquired: Summit College Opened: Founders Hill PP&P Acquired: • Glenwood House

  • Elkanah House

Acquired: Greenwood Bay College Opened: • Founders Hill High

  • Copperleaf College PP
slide-29
SLIDE 29

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

29

ONLINE MARKET LANDSCAPE

Estimated size of the market segment

200 000 200 000

Long-term goal

10% 10% of

  • f mar

market se et segment gment 20 000 students 20 000 students

Target: Evolve

1.5% 1.5% of

  • f mar

market et se segmen gment 3 000 students 3 000 students

At least 7 offerings currently in this space

slide-30
SLIDE 30
  • Trend-setting curriculum mapping system

developed at MIT

  • Tailored learning experience

‒ Forward looking subjects ‒ Machine learning

  • Strong focus on foundational, social and

emotional learning skills

‒ Home schooling market will change with WFH:

  • Estimated 233 000 in 2017 in Home Schooling in SA

‒ More market players entering during COVID-19 ‒ Each scholar is a potential online customer – Affordability in SA the limiting factor

EVOLVE ONLINE SCHOOL

TAPPING INTO THE HOME-SCHOOLING MARKET

30

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-31
SLIDE 31

* Evolve online school opening 2021 ** Figures are End Feb 2020

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

31

Trinityhouse​

  • Underperforming schools close end 2020:​

− Trinityhouse North Riding​ − Trinityhouse Palm Lakes

OUR CURRENT SCHOOL BRANDS

ENHANCING BRAND VALUE POSITION

31

Repositioning and merging

  • Meaningful positioning that has a

sustainable market proposition.

  • Continued improvement on
  • perational effectiveness and

efficiencies

  • 2021 fee assessments:

0% increase

Maragon Brand​ - impaired

  • Crawford International Maragon Ruimsig

now Crawford International Ruimsig – successful rebranding

  • Remaining Maragon schools to be

integrated with other better-defined brands

slide-32
SLIDE 32

SCHOOLS IN THE REST OF AFRICA

Crawford International School

  • Continue to offer and successfully

completed academic year

  • E-learning success: 98% students

engaged

  • Increase in enrolments due to quality

academic offering and superior online delivery

  • Cambridge international system

‒ Inaugural class IGSE exams: excellent results ‒ First IGCSE exams: excellent results, average 4.2 A’s per student – 3x full house A’s

  • Significant reduction in losses as we

move through the J-Curve

Makini Schools

  • Kenyan government - scrapping of

academic year severely impacted the national Kenyan curriculum schools

  • Designed alternative e-learning

curriculum to support students

  • Parallel: Cambridge international

curriculum – effective September 2020

  • Managing costs
  • Employees impacted by salary

reductions

Kenya Botswana

WE REMAIN CONFIDENT IN THE REST OF AFRICA INVESTMENTS

32

Gaborone International School

  • Continue to perform well
  • Swift and seamless online adoption
  • Increase in enrolments due to quality

academic offering and superior online delivery

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-33
SLIDE 33

UNIVERSITY/ TERTIARY DIVISION

04

  • The IIE SA’s leading “private university”
  • Established flexible offering and delivery methods
  • Resilient performance
slide-34
SLIDE 34

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

34

IIE

Educa ducation tion Faculty

  • f

Commer Commerce ce Faculty

  • f

Inf nfor

  • rma

mation tion & & Communica Communication tion Tec echnolog hnology Faculty

  • f

Law Law Faculty

  • f

Social

  • cial Sciences

ciences Faculty

  • f

Humanities umanities Faculty

  • f

Engineering ngineering Faculty

  • f
  • IIE is SA’s leading “private university”
  • Central academic body: 15-year

track record of Academic leadership

  • 33 Campuses
  • Division has 197 accredited courses from

undergraduate programmes to Masters degrees

  • Most of our qualifications registered and accredited

for face-to-face and distance

  • Multi-channel modes of delivery: full-time
  • r part-time, distance (online) and blended learning
  • Almost 45 000 full qualification students
  • Benchmark against highest local and international

standards

* Stats as at end Feb 2020

TERTIARY DIVISION

TERTIARY DIVISION OVERVIEW

slide-35
SLIDE 35

26% 20%

RESILIENT PERFORMANCE

14% 3% 16% 26%

1 204 H1 20 excluding COVID-19 impact 308 H1 20 excluding COVID-19 impact 581 778 868 1 038 1 187 H1 16 H1 17 H1 18 H1 19 H1 20 100 157 204 245 252 H1 16 H1 17 H1 18 H1 19 H1 20

35

Revenue (R’m) Operating profit (R’m)

UNIVERSITY / TERTIARY

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

CAGR

slide-36
SLIDE 36

25,6% 27,5%

H1 20 (excl. COVID-19 & MSA)

17,3% 20,2% 23,5% 23,6% 21,2% 24,7% 22,8%

H1 16 H1 17 H1 18 H1 19 H1 20

UNIVERSITY / TERTIARY

36

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

IMPACTED BY IIE MSA INTEGRATION Operating margin (%)

Excl IIE MSA

  • 8%

11%

slide-37
SLIDE 37

62 98 701 1 479 2 219 3 457 3 983 4 254 2014 2015 2016 2017 2018 2019 2020 30 June 2020

* End Feb YoY

GROWTH IN IIE ONLINE DISTANCE STUDENTS

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

37

56% 50% 111% 615% 58%

since March

7%

HIGHER EDUCATION FULL-TIME QUALIFICATIONS

15%

slide-38
SLIDE 38

15 898 15 937 16 880

Feb 19 Feb 20 30 June 2020

* End Feb YoY

OXBRIDGE ACADEMY ENROLMENTS

VOCATIONAL AND OTHER STUDY PROGRAMMES

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

38

6%

Rolling enrolment cycle – any time of year

slide-39
SLIDE 39

RESOURCING DIVISION

05

  • Remains profitable despite tough SA market
  • Good performance in the rest of Africa
  • Dual focus on permanent and contract placements
slide-40
SLIDE 40

20% 26%

20 H1 20 excluding COVID-19 impact 9 18 20 13 3 H1 16 H1 17 H1 18 H1 19 H1 20 224 309 321 387 464

H1 16 H1 17 H1 18 H1 19 H1 20

490

H1 20 excluding COVID-19 impact

MITIGATING ACTIONS TO MINIMISE LOSS

40

Revenue (R’m) Operating profit (R’m)

RESOURCING

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-41
SLIDE 41

RESOURCING DIVISION

  • Hiring activity came to a standstill

Mitigating actions:

  • Reduce costs
  • Adjusted our consultant vs support staff ratio
  • Salary cuts, temporary layoffs and retrenchments
  • Cuts were implemented across the board on a

graduated basis to lesson impact on lower earning level employees

  • Negotiated rental discounts and deferments and

large supplier contracts

  • Geographic expansion strategy prevails
  • Good opportunities
  • Active business development to expand African

profit base

  • Dual focus on permanent and contractor

placements contributed to sustainability locally and the rest of Africa

South Africa market – severely impacted Rest of Africa REMAINS PROFITABLE DUE TO A GOOD PERFORMANCE IN THE REST OF AFRICA

41

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-42
SLIDE 42

PROSPECTS

06

42

slide-43
SLIDE 43

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

43

Re-assess the delivery model and introduce more

  • nline and blended

learning options Rosebank College well-positioned to grow online

  • ffering

– the rest of Africa 2021 uncertainties:

  • Public school

calendar delayed

  • Lead generation

access to matriculants and scholars

IMPACT GOING FORWARD

Innovative digital marketing and advertising – virtual open days & virtual tours Continue to improve academic delivery models and student support Oxbridge electronic portal enabled broadening the reach into Zambia, Kenya and Ghana Vega short courses pivot online only

slide-44
SLIDE 44

OUTLOOK

UNCERTAINTY REMAINS

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

44

The pandemic has provided strong evidence of the robustness of our business

Remain cautious - economy will remain weak Healthy brands servicing meaningful market segments Agile capable business with outstanding value proposition Underpinned by an academic body with substance and gravitas Continued streamlining of processes to drive further effectiveness and efficiencies Sound strategy that developed relevant

  • rganisational structures with opportunity to

extract further value Capability to provide quality education through any mode of delivery Strong balance sheet, sustainable cost and capital expenditure containment

slide-45
SLIDE 45

THAN THANK Y K YOU OU

45

slide-46
SLIDE 46

Questions Questions

46

slide-47
SLIDE 47
  • Schools offering:

‒ 109 schools, 55 campuses

  • Tertiary offering:

− 7 faculties − 197 accredited qualifications

  • Portfolio of schools to meet a variety of markets

− Opportunity for internationalisation for our brands

  • World class teaching and learning practices
  • Sound investment in enabling technologies
  • Central academic team: centralised high efficiency enables cost-effective product development &

centralised quality control

  • Multiple modes of delivery:

− Face to face; Online; Hybrid: Blended; Distance

LEADER IN PRIVATE EDUCATION

47

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-48
SLIDE 48

IT INVESTMENT PAYS OFF

Preparedness:

  • Invested in IT’s vision of a digital future

since 2014

  • When COVID-19 struck, we were ready
  • Ensured virtual learning, remote working,

business continuity & sustainability Agility:

  • Able to scale technologies to match

increased demand

  • Staff and students adopted technology to

work remotely Solutions:

  • Virtual learning using Microsoft Teams
  • Connectivity: issued sim cards and reverse

billing

  • Implementation of JIRA helpdesk software

improved customer focus and service delivery

  • Decentralised internal and outsourced IT support

Student support tools:

  • Effectively handled 3200 requests in last 3

months

  • Scaled STASY and Blackboard
  • MS Teams activity increased by 3151% in last

180 days

  • 9522 MS Teams created

48

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-49
SLIDE 49

Educational productivity Optimise organisational processes and structures Rest of Africa Growth in the rest of Africa Customer focus

  • Easy to interface with
  • Understand and respond

to needs

  • Deliver end-to-end

service to our customers Academic excellence

  • Teaching & learning
  • Benchmarking performance
  • Learning analytics
  • International & employer

recognition Growth

  • Organic and acquisitive
  • Channel
  • Product
  • Segment
  • Geographic

REGULA TIONS SOCIO-ECONOMIC ENVIRONMENT REPUT A TION TRANSFORMATION

Human capital productivity

  • Talent management
  • Productivity benchmark
  • High performance culture

Capital productivity

  • Return on investment
  • Optimise cost structures

Innovation Data insights Risk mitigation Technology

Excellence through specialisation

  • Market focus
  • Benchmarking: industry

& salary

  • Data driven insights

STRATEGY PREVAILS

REAPING THE REWARDS OF PAST STRATEGIC DECISIONS

49

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

slide-50
SLIDE 50

Central academic team

ACADEMIC EXCELLENCE

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

50

Forefront of international best practice and developments in pedagogy Evolving best practice in teaching and learning - improve progressive, streamlined and effective – content and activities to better support the student development journey Invested significantly in ensuring future focused education and curricular Teachers, lecturers and academic teams share information and

  • resources. Several research

projects underway. Focus on individual student development through databased learnings – no student left behind

CORE TO ADvTECH STRATEGY

slide-51
SLIDE 51

AGILE DELIVERY

Robust | Resilient | Sustainable INTERIM FINANCIAL RESULTS for the six months ended 30 June 2020

51

Where the teaching takes place How students are taught Where ADvTECH uses this approach

In person Contact / Face2face Students on site attend class with educator They are taught face to face in a room with the educator and peers. Schools and tertiary Blended Classroom supplemented by online​ Combination of face to face and online material presented on platforms like Blackboard (Learn) and MS

  • Teams. The online is supportive and complementary

and supplementary to the face to face. Schools and tertiary Hybrid Classroom or online simultaneously – Student chooses Combination of online material with traditional teaching strategies (Face to Face) happening in a class with some students while being broadcast to students not in the class. Schools and tertiary since start of pandemic Distance Only Distance No physical class attendance ​Students are either engaged through technology or sent their learning material. Assessments are submitted. Tertiary only until 2021 when first school begins. Online Interactive online only engagement – no static PDF Online engagement between the educator and peers using technology. Sometimes includes synchronous (same time) lecturing but often asynchronous (student can engage when suits them). Tertiary only until 2021 when first school begins Pack &Post / Online Materials delivered to student via post or

  • nline portal

Pre-prepared study material. Supplemented with digitally mediated support and engagement. Oxbridge

EDUCATION THROUGH OUR STUDENT’S PREFERRED MODE OF DELIVERY