Slide 1: H1 FY25 Results Presentation
H1 FY25 Results Presentation 26 February 2025
Slide 2: Agenda
Agenda 1. Financial summary 4 2. Operating performance 7 3. Financial results 11 4. Immediate outlook 16 5. Appendices 19
Slide 3: Key Highlights
Key Highlights › Regulatory changes impacting revenue & profitability, down vs pcp Financial › $1.0M positive operating cash flow (+$2.9M vs pcp) › $5M+ annualised savings on track, with additional $2M locked in for FY26 Performance › $13.7M cash (increased to $14.1M at 31 January 2025), no debt › P
Slide 4: Financial summary
1 Financial summary 4
Slide 5: Financial Performance
Financial Performance H1 FY25 financial results ▪ Revenue Decline: Consolidated revenue down NPAT(A) 21% YoY, primarily due to restrictions on new Revenue EBITDA1 international student enrolments adjusted2 ▪ $47.0m $5.8m $(2.2)m EBITDA Impact: Lower revenue affected EBITDA, though partially offset b
Slide 6: Market Conditions & Response
Market Conditions & Response Government policies reducing international student numbers significantly impacted the industry, including NextEd. In response, we prioritised high-margin growth, cost efficiencies, and strategic opportunities ▪ Industry consolidation: Acquired first rights to contact and
Slide 7: Operating performance
2 Operating performance 7
Slide 8: IH Transaction: Rapid Execution, Strong Results
IH Transaction: Rapid Execution, Strong Results ▪ NextEd acquired the right to contact and make offers to displaced students formerly studying at international Re-enrolled Students House House (IH) (in administration) in December 2024 for cash consideration of $0.7 million* 1,900+ Feb 2025 ▪ Project
Slide 9: Growth in Higher Margin Vocational Courses
Growth in Higher Margin Vocational Courses International student mix shift to higher margin vocational courses in Management, Hospitality & Healthcare Student number mix at end of period Student numbers at end of period 2% 7% 7% ▪ English language student numbers -52% impacted by 15% higher rates of
Slide 10: Disciplined Cost Control
Disciplined Cost Control Opex* pre-AASB16 30,000 27,610 26,249 ▪ Operating costs reduced from $27.6M (H1 FY24) to 26,209 24,770 $24.8M (H1 FY25) through disciplined cost 25,000 23,066 management. 19,837 20,000 ▪ Savings achieved across all areas, including property, non-academic staff, and general e
Slide 11: Financial results
4 Financial results 11
Slide 12: Income Statement
Income Statement Full year actuals Change ▪ Revenue declined by 21% vs pcp with growth in Go Study ($000’s) H1 FY25 H1 FY24 $ % (+10%) and Domestic Vocational (+14%) more than offset Revenue 46,970 59,201 (12,231) (21) by declines in International Vocational (-26%) and Gross profit 24,899 30,369 (5,
Slide 13: Segment Performance
Segment Performance ($000’s) International Technology Go Study Domestic Elimination Total Vocational & Design Vocational / Corporate ▪ International Vocational segment revenue declined 26% vs pcp, with English language revenues Revenue declining 46%. Pleasingly, management, hospitality and healthcar
Slide 14: Cash flows
Cash flows ▪ Operating cash flows of $1.0 million driven by active working capital management and benefits from targeted cost reductions ▪ Investing cash flows mostly related to IH transaction ($0.7 million) ▪ $3.5 million of the cash balance allocated to secure bank guarantees ▪ Cash balance at 31
Slide 15: Balance sheet
Balance sheet ($000’s) Dec-23 Jun-24 Dec-24 C urre nt a s s e t s Contract liabilities (deferred revenue) Cash and cash equivalent 16,834 19,343 13,737 Trade receivables 7,597 14,972 18,651 90,000 Invento ries 238 110 115 80,000 P repayments and o ther assets 8,585 6,742 5,046 T o tal 33,254 41,167
Slide 16: Immediate outlook
5 Immediate outlook 16
Slide 17: Building Stability in a Challenging Market
Building Stability in a Challenging Market ▪ Challenging market conditions persist, with government policy changes continuing to impact international student enrolments ▪ IH integration progressing well, reinforcing our ability to consolidate effectively when required ▪ New courses launched, ensurin
Slide 18: Thank You
Thank You Mark Kehoe Michael Fahey Level 2, 7 Kelly Street Chief Executive Officer Chief Financial Officer Ultimo NSW 2007 mark.kehoe@nexted.com.au michael.fahey@nexted.com.au nexted.com.au
Slide 19: Appendices
6 Appendices 19
Slide 20: NextEd's differentiated market position
NextEd’s differentiated market position Diversified revenue base: Strong compliance record reduces risk and enables ▪ Broad course range in English language, vocational new course accreditations: and higher education segments ▪ Swift regulatory approvals for new campuses and courses ▪ Domestic and i
Slide 21: Income Statement (pre and post AASB16)
Income Statement (pre and post AASB16) Half year actuals Change H1 FY25 H1 FY24 $ % $ % Post Pre Post Pre Post Pre ($000’s) Difference Difference AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 Revenue 46,970 46,970 59,201 59,201 (12,231) (21) (12,231) (21) Agent commissions (9,287) (9,287) (11,262) (11,2
Slide 22: Non-IFRS information
Non-IFRS information ▪ The Company uses certain measures to manage and ($000’s) H1 FY25 H1 FY24 report on its business that are not recognised under NPAT(A) adjusted (2,229) 1,361 Australian Accounting Standards (‘AAS’). These measures are collectively referred to as non-IFRS Less: financial measure
Slide 23: Segment restatement – FY25
Segment restatement – FY25 Half year actuals ($000’s) Variance H1 FY24 H1 FY24 $000’s Previous structure Revised structure Revenue Revenue ▪ Operating responsibility for the International School of Colour and International Vocational 46,161 International Vocational 46,161 - Design (ISCD) was transfe
Slide 24: International Vocational
Segment Results International Vocational Revenue EBITDA Revenue mix 50,000 12,000 ▪ English language 45,000 10,000 12% 4% 40,000 revenues declined by 5% 20% 35,000 $18.0 million on 8,000 30,000 $000's $000's government actions to limit 25,000 6,000 46,161 11,107 59% new student numbers. 20,000 83% 1
Slide 25: Go Study
Segment Results Go Study Revenue EBITDA ▪ Revenue increased 14% vs pcp - $3,500 $500 growth driven from onshore $3,000 $450 Australia and Mexico. $400 $2,500 $350 ▪ H1 FY25 EBITDA increased by $300 $000's $2,000 $000's $250 $0.1m vs pcp – with growth from $1,500 $2,846 $3,142 $200 $467 $384 instalme
Slide 26: Domestic Vocational
Segment Results Domestic Vocational Revenue EBITDA ▪ Revenue growth of 14% driven by 5,000 800 higher revenues in the core 4,500 700 healthcare courses 4,000 600 3,500 ▪ Not impacted by ongoing 3,000 500 $000's government changes to 2,500 400 4,760 726 immigration policy 2,000 4,187 300 647 1,500 20
Slide 27: Technology & Design
Segment Results Technology & Design Revenue EBITDA ▪ H1 FY25 revenue in AIT 7,000 2,000 declined 13% vs the pcp with this reduction mostly due to 6,000 lower numbers of new 5,000 international student 4,000 enrolments 6,667 1,000 3,000 5,602 1,425 ▪ Coder Academy revenues 2,000 declined 24% due to l
Slide 28: Average student numbers by segment
Average student numbers by segment International Vocational Technology & Design Domestic Vocational 9,000 700 600 8,000 441 600 500 85 7,000 345 121 2,005 500 135 75 6,000 400 1,267 17 136 5,000 400 300 4,000 2,058 300 458 3,000 5,848 200 395 200 420 362 2,000 2,931 100 100 1,000 0 0 0 H1 FY24 H1 FY
Slide 29: Maximising Campus Efficiency
Maximising Campus Efficiency NextEd campus locations at Number of classrooms by Average weekday classroom end of Dec 2024 state at end of Dec 2024 utilisation* in H1 FY25 was 60% 100 11 8 90 60% 80 55% 74 NSW 70 35 59 64% VIC 60 33 Brisbane QLD 50 21 old Coast SA 40 WA 30 Perth 52 Adelaide S dne 20
Slide 30: Important notice & disclaimer
Important notice & disclaimer Summary Information Past Performance This Presentation contains summary information about NextEd Group Limited and its activities which is current The past performance and position of NextEd Group Limited reflected in this Presentation is given for illustrative only as