Advtech Limited · JSE:ADH

Advtech — H1 2024 Earnings Presentation

68 slides from Advtech's earnings presentation, Aug 27, 2024

  1. Slide 1: Interim Results for the six months ended 30 June 2024

    Group CEO and Executive Director Geoff Whyte Interim Results for the six months ended 30 June 2024

  2. Slide 2: Introducing Some of Our People

    Introducing Some of Our People.. Yusuf Moosa Group Financial Manager Barbara Willard Group Head of Internal Audit ¢ Dr Siza Majola Managing Director Crawford International Steve Miller Group Executive Brand & Strategy Boipelo Mogamisi Group Investor Relations Colin Northmore Executive Head Evolve On

  3. Slide 3: Historic Strategy

    Historic Strategy ~eRouP_ Development of a strong portfolio of carefully positioned brands Investment in superior teaching and learning * People, proprietary systems Significant extension of the qualifications we offer Expansion into selected, higher growth African markets A number of exciting new g

  4. Slide 4: Segmental Overview

    Segmental Overview —~crouP Revenue Contribution Operating Profit Contribution 0% BTertiary Schools SA B Schools Rest of Africa m Resourcing SA w Resourcing Rest of Africa Interim Results for the six months ended 30 June 2024

  5. Slide 5: Strong first half results

    ADvieCH GROUP Strong first half results Analyst Presentation Healthy growth in enrolments Strong financial performance Sound balance sheet

  6. Slide 6: Healthy Enrolment Growth Continues

    Healthy Enrolment Growth Continues GROUP Schools Schools Schools Tertiary Total Group South Africa Rest of Africa Division Division Enrolment a AA | ‘19 '20 '21 '22 '23. '24 19 '20 '21 '22 '23 '24 ‘19 '20 '21 '22 '23 '24 : 24 ‘19 '20 '21 '22 '23 '24 19 '20 '21 '22 '23 —@ acer Interim Results for the

  7. Slide 7: Financial Performance

    Financial Performance The group's strong financial performance, solid cash generation and robust balance sheet are evidence of our sound business model, clear market focus and continued emphasis on effectiveness and efficiencies.

  8. Slide 8: Half Year Performance

    Half Year Performance 9% Revenue R4274 million 15% Operating Profit R865 million 20.2% Operating Margin A A 16% Headline Earnings per share 16% Normalised Earnings per share 27% Interim Dividend per share 38.0 cents ADvicCH GROUP Divisional Performance (year-on-year comparison) Schools South Africa

  9. Slide 9: Group Revenue

    Group Revenue (R’m) —cROUP Consistent growth, driven by enrolments and fee increases in line with inflation - Interim Results for the six months ended 30 June 2024

  10. Slide 10: Divisional Operating Margins

    Divisional Operating Margins (%) —~eRouP_ Education Business Resourcing Division 2021 2022 2023 2024 2021 2022 2023 2024 Interim Results for the six months ended 30 June 2024

  11. Slide 11: Education Margins

    Education Margins (%) —~eROUP_ Education Business Schools Division Schools South Africa > 2021 2022 2023 2024 T 2021 2022 2023 2024 Tertiary Division Schools Rest of Africa > 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 Interim Results for the six months ended 30 June 2024

  12. Slide 12: Group Operating Margin

    Group Operating Margin (%) —~eRouP_ Movement due to: + Operating leverage resulting from enrolment growth + Continued focus on efficiency improvements + Further investment into systems and preparation for University status Interim Results for the six months ended 30 June 2024

  13. Slide 13: Group Operating Profit

    Group Operating Profit (R’m) —erour Interim Results for the six months ended 30 June 2024

  14. Slide 14: Normalised Earnings Per Share (Cents)

    Normalised Earnings Per Share (Cents) ~eROUP Consistent earnings growth demonstrates the successful execution of our strategy Interim Results for the six months ended 30 June 2024

  15. Slide 15: Normalised Earnings Per Share - US$

    Normalised Earnings Per Share - US$ ~eROUP Resilient dollar returns oO Interim Results for the six months ended 30 June 2024

  16. Slide 16: Schools Division

    Schools Division

  17. Slide 17: Schools Division

    Schools Division GROUP A comprehensive brand portfolio comprising 113 schools Progressive/ Traditional/ Mid-Fee Specialised Early Childhood Online/ Modern Holistic , ‘Academic Support Development Homeschooling , and Assisted tommy PINNACLE Learning e 2 9 S anise Crawford TRINITYHOUSE & WY... —— Inte

  18. Slide 18: Schools - South Africa

    Schools - South Africa “~erour— Growth driven by healthy enrolments, improved operating efficiencies and fee increases in line with inflation Revenue (R’m) Operating Profit (R’m) Operating Margin (%) ' 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 @ cacr Interim Results for the six mon

  19. Slide 19: Schools - Rest of Africa

    Schools - Rest of Africa “~erour— Margin improvement driven by leveraging scale and move to Cambridge curriculum Revenue (R’m) Operating Profit (R’m) Operating Margin (%) +11% Co) 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 @ cacr Interim Results for the six months ended 30 June 2024

  20. Slide 20: Pinnacle College Ridgeview High School

    Pinnacle College Ridgeview High School Opening January 2025 New Pinnacle Campus New Pinnacle College campus adjacent to ADVTECH’s Charterhouse Pre-Primary and Preparatory Schools in Roodepoort | Building capacity: First Phase - 392 Second Phase - 980 Interim Results for the six months ended 30 June

  21. Slide 21: Pinnacle College Ridgeview High School

    Pinnacle College Ridgeview High School Opening in January 2025 Interim Results for the six months ended 30 June 2024

  22. Slide 22: Gaborone International School Expansion

    Gaborone International School Expansion Enrolments exceeding expectations + Gaborone International School continues to perform exceptionally well with strong enrolment growth and excellent academic results se Capacity expanded in 2023 to 3 250 students Interim Results for the six months ended 30 Jun

  23. Slide 23: Crawford International, Kenya

    ACvieCH Crawford International, Kenya GROUP Next phase of development begins in Q3, increasing student capacity from 900 to 1300 in response to demand Interim Results for the six months ended 30 June 2024

  24. Slide 24: Pinnacle College Raslouw, Centurion

    &) ~—sADWECH RASLOUW. Pinnacle College Raslouw, Centurion Enrolments exceed expectations . Pinnacle College Raslouw in Centurion, opened in January.2023 + Strong student demand has necessitated the build out of the school several years ahead of plan + 915 students currently enrolled SEES a Interim R

  25. Slide 25: Second school in Morningside, Johannesburg

    HA» Second school in Morningside, ; Johannesburg opened Jan ‘24 | n —= Interim Results for the six months ended 30 June 2024

  26. Slide 26: School Capacity

    School Capacity —~cRoUP_ Eee Students enrolled (‘000) 32.4 33.9 36.8 39.3 41.0 Existing building capacity (000) 41.2 41.5 44.5 46.7 49.4 % Existing building capacity utilised 79% 82% 83% 84% 83% Ultimate capacity (‘000) 56.8 56.8 56.8 59.8 60.3 % Of ultimate capacity utilised 57% 60% 65% 66% 68% Int

  27. Slide 27: Schools Enrolment Movement

    Schools Enrolment Movement GROUP 9741 41010 39 290 (2212) FC (4072) Enrolments Matric Emigrations/ Financial and Joiners Enrolments Feb 2023 leavers relocation other leavers Feb 2024 1. Percent change from 2023 to 2024 Interim Results for the six months ended 30 June 2024

  28. Slide 28: Tertiary Division

    Tertiary Division

  29. Slide 29: • • • • • • • • • • • • • •

    • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

  30. Slide 30: Comprehensive Range of Qualifications

    Comprehensive Range of Qualifications ~eRouP_ eet lock your potential "ZscHooL or a @ capsicum MBevoseraury a service gy MANAGEMENT — 2 COLLEGE = ca Varsity nie] 4 College MSA: Se ES Multi-channel modes of delivery available any time and at any place Pack & Post Online Part-time Blended Fulltime * O

  31. Slide 31: Tertiary: Full Qualification Student Enrolments

    Tertiary: Full Qualification Student Enrolments ~eRouP Benefitting from continued investment in both contact and online -O- 47% Interim Results for the six months ended 30 June 2024

  32. Slide 32: Tertiary Enrolments - Distance

    Tertiary Enrolments - Distance —~eRouP_ Interim Results for the six months ended 30 June 2024

  33. Slide 33: Tertiary Division

    Tertiary Division —~eRoUP Revenue (R'm) Operating Profit (R’m) Operating Margin (%) 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 @ cacr Interim Results for the six months ended 30 June 2024

  34. Slide 34: Capsicum and Hospitality School - New Areas of Focus

    Capsicum and Hospitality School - New Areas of Focus ~eRouP_ International cruise liner industry 109 e) Capsicum CULINARY STUDIO L£1 RoyalCaribbean Placements in the first six months of 2024 wb Demand in cruise line industry provides opportunity to enhance offering 2025 pipeline Short Learning Progr

  35. Slide 35: Road to University Status

    Road to University Status “~erour— Progress: Policy for the recognition of South African Higher Education institutional types Draft criteria Public Second draft - Public Gazette - End published - comment - April 2024 comment - of 2024? August 2022 September May 2024 2022 * Provided broad * Not signi

  36. Slide 36: Investment in Achieving University Status

    Investment in Achieving University Status —~cRouP_ + 2022 to 2024 Increase in academic staff qualification levels Academic staff with Doctorates: +75% to 154 Academic staff with Masters: +53% to 758 + Fourfold increase in per-capita research output + New postgraduate enrolments have increased by 23%

  37. Slide 37: Rosebank College, Pretoria

    = ADWECH Rosebank College, Pretoria tue —~ceRouP_ Mega campus will increase student capacity by 5,200 to 11,500 ee OSEBANK i. COLLEGE. + Expansion project at campus is currently under way Interim Results for the six months ended 30 June 2024

  38. Slide 38: Rosebank College, Braamfontein

    [i ADTECH COLLEGE GROUP Rosebank College, Braamfontein Mega campus + Adjacent building purchased to create a student precinct + Capex approved to increase capacity and to create a social environment where students can collaborate, learn and experience campus life + Project timeline: Phase 1 + Starts

  39. Slide 39: Rosebank College, Braamfontein

    =m ACwe Rosebank College, Braamfontein tues ~eRrour Mega campus Interim Results for the six months ended 30 June 2024

  40. Slide 40: Blended learning campus, opened January 2024

    ROSEBANK ACweCH COLLEGE GROUP lh Blended learning campus, opened January 2024 - enrolments ahead of target * Student capacity: 1 350 Interim Results for the six months ended 30 June 2024

  41. Slide 41: Rosebank College, Cape Town

    Rosebank College, Cape Town COLLEGE Current Campus (capacity 3000) Interim Results for the six months ended 30 June 2024

  42. Slide 42: Rosebank College, Cape Town relocation

    Sim ACweCcH a A Rosebank College, Cape Town img CE eR OUP Relocation: Aerial view of the move from Buitengracht Street to St George's Mall Interim Results for the six months ended 30 June 2024

  43. Slide 43: Varsity College, Pretoria

    = Varsity ADvieCc H ° . a= Varsity College, Pretoria img College CROUP Campus upgraded in 2023 VF, Interim Results for the six months ended 30 June 2024

  44. Slide 44: Vega, Pretoria

    Vega, Pretoria Relocated to the same development as Varsity College in new premises Interim Results for the six months ended 30 June 2024

  45. Slide 45: New University Site

    New University Site ACvieCH We have secured a prime location fora Capital investment: Approximately new university campus (subject to R400m over the next two years Competition Commission approval) Interim Results for the six months ended 30 June 2024

  46. Slide 46: Resourcing Division

    Resourcing Division

  47. Slide 47: Resourcing Division

    Resourcing Division —~ceRouP_ Revenue (R’m) Operating Profit (R’m) Operating Margin (%) 3% 48% +3% 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 @ cacr Interim Results for the six months ended 30 June 2024

  48. Slide 48: Resourcing South Africa

    Resourcing South Africa —~ceRouP_ Impacted by constrained market Revenue (R’m) Operating Profit (R’m) Operating Margin (%) 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 Interim Results for the six months ended 30 June 2024

  49. Slide 49: Resourcing Rest of Africa

    Resourcing Rest of Africa —~ceRouP_ Successful pivot to Rest of Africa demonstrates our ability to execute outside SA Revenue (R’m) Operating Profit (R’m) Operating Margin (%) 2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024 @ cacr Interim Results for the six months ended 30 June 2024

  50. Slide 50: Group Analysis

    Group Analysis Didier Oesch Group Commercial Director

  51. Slide 51: Debtors Breakdown

    Debtors Breakdown ~eROUP R’m Trade receivables 997.4 195.1 748.9 53.4 906.1 166.7 694.2 45.2 Loss allowance (493.7) (85.2) (404.5) (4.0) (548.6) (86.2) (460.3) (2.1) 503.7 109.9 344.4 49.4 357.5 80.5 233.9 43.1 Coverage of debtors’ balance 49% 44% 54% 7% 61% 52% 66% 5% Credit losses 125.9 40.2 85.0

  52. Slide 52: Cash Flow Generation from Operations

    Cash Flow Generation from Operations ~eROUP Demonstrates the inherent cash generating ability of our business Cash generated from operations Cash inflow from operating activities D> Interim Results for the six months ended 30 June 2024

  53. Slide 53: Cash vs Net Borrowings

    Cash vs Net Borrowings ~eROUP Strong cash generation, sound balance sheet and reduced borrowings Cash generated by operations BNet borrowings 1959 189 | 2021 2022 2023 2024 Covenants - net Ratio= borrowings: EBITDA Net borrowing to Banks: 3.25x cash generation 0.8 0.4 0.2 0.1 anks: * Internal: 2.75x

  54. Slide 54: Improving Returns on Funds Employed

    Improving Returns on Funds Employed ~eRouP_ [Capex + Acquisitions «@=ROFE 18.9% 20.7% 9% evce eece 16.6% 9) 14.3% 13.9% 1001 720 669 334 350 278 2019 2020 2021 2022 2023 2024 ‘Acquired: ‘Acquired: ‘Acquired: Opened: Opened: Opened: Opened: Opened: Summit College GlenwoodHouse Makini tutneas| | The B

  55. Slide 55: Capex

    Capex —cGROUP ee ee eee J ee 1 New School Student, Finance and HR Systems Additions to Existing Sites Furniture, Fittings , IT and Vehicles [ ) Capex Projects Interim Results for the six months ended 30 June 2024

  56. Slide 56: Slide 56

  57. Slide 57: Delivering Superior Shareholder Returns

    Delivering Superior Shareholder Returns —~cROoUP Strong cash generation and sound balance sheet * Increased dividend payout 2 7 % * Generating cash in excess of that required to fund investment programme Interim Dividend * Interim Dividend 38.0 cents per share (2023: 30.0 cents) per share (from comp

  58. Slide 58: Interim Dividends Per Share

    Interim Dividends Per Share ~eROUP Cash generative business continues to drive dividend increases > 2021 2022 2023 2024 @ interim cacr Interim Results for the six months ended 30 June 2024

  59. Slide 59: Future Focus

  60. Slide 60: Prospects

    Prospects —~eROUP South African demographic and Strong demand for quality supply and demand tailwinds education persists continue, especially in Tertiary across all our chosen markets Sound balance sheet Good position to maintain our growth trajectory Interim Results for the six months ended 30 June

  61. Slide 61: Forward Vision and Strategic Direction

    Forward Vision and Strategic Direction —~cROoUP We will lead in every market segment in which we choose to operate and be the employer of choice in the Education and Resourcing sectors Focus on growth synergies + Further pursuit of cost synergies through shared services Simplification of brand struc

  62. Slide 62: Share Price Graph

    Share Price Graph CROUP ADvTECH Limited (ADH.JO) 3,330.00 +23.00 (+0.70%) As of 10:49 AM GMT+2. Market Open. 1D 5D 3M 6M YTD wy 5Y All @® KeyEvents 4 Mountain » i Advanced Chart s = 3,000.00 2,500.00 2,000.00 Oct Nov Dec Feb Mar Apr May Jun Jul Aug 2024 Midday 26 August 2024 Interim Results for the

  63. Slide 63: Questions?

    Questions?

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  66. Slide 66: Tertiary Division / University

    Tertiary Division / University GROUP Faculties map THETNDEPENDENT wan INSTITUTEQE EDUCATION Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Finance and Accounting Commerce Information and Communications Technology Humanities and Social Sciences Engineering, Science and H

  67. Slide 67: Qualification Pipeline

    Qualification Pipeline 201 registered and accredited qualifications 7 Faculties Information and Commerce Communications Technology Humanities and Social Sciences Finance and ‘Accounting Engineering, Science and Health Vocational qualifications 201 Accredited Programmes if ge 4 2 g Zs é g = § -— 2 3

  68. Slide 68: Where We Are Today

    Where We Are Today Agile flexible business 8819 employees 93 700 students Competitive advantage Consistent enrolment growth Scale of operations Investing in infrastructure and innovation Appreciating share price over last 5 years Unwavering focus 113 schools 33 tertiary campuses 229 tertiary courses

ADvTECH — H1 2024 Earnings Presentation on 6ix