Slide 1: Strong Performance: ADvTECH Financial Results for the year ended 31 December 2022
STRONG PERFORMANCE ADvTECH Financial Results for the year ended 31 December 2022 Good enrolment growth ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 2: ADvTECH continues to deliver strong results
ADvTECH CONTINUES TO DELIVER STRONG RESULTS ACvieCH Group results Divisional performance ay 18% Revenue My 20% Operating profit Schools South Africa Schools rest of Africa Revenue 14% Revenue My 20% Headline earnings per share a 20% Normalised earnings per share 4 60.0 cents Dividend per share \\ op
Slide 3: Good progress on key metrics
GOOD PROGRESS ON KEY METRICS Operating margin Schools South Africa Return on funds employed ACviEeCH —_ GROUP _ Features contributing to our success 2020 2021 Schools rest of Africa * Strong market position through portfolio of brands in both the schools and tertiary divisions Normalised earnings pe
Slide 4: Group enrolments end February
GROUP ENROLMENTS END FEBRUARY 70 456 Feb 2019 GROUP — CAGR 5.9% 88631 84341 77345 79550 49341 39290 Feb 2020 Feb 2021 Feb 2022 Feb 2023 mTertiary Schools ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 5: Continued enrolment growth
CONTINUED ENROLMENT GROWTH ACveCH GROUP Schools Schools Schools Tertiary Total Group South Africa rest of Africa division division enrolment il unl ll 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 ANNUAL FINANCIAL RESULTS
Slide 6: Operating environment
OPERATING ENVIRONMENT ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 7: Subdued economic environment
SUBDUED ECONOMIC ENVIRONMENT Unemployment rate Including discouraged workers 2023 current inflation rate Consumer price index (CPI) >urces: IMF/SARB website/National budget speech 2023/Stats SA/CEIC/ World Ban! tatista.com /African Development Bank Group “Africa set to outperform the rest of the wor
Slide 8: Factors affecting demand for quality education
FACTORS AFFECTING DEMAND FOR QUALITY EDUCATION Public vs private institutions Public institutions continue to experience shortages of critical resources Schools From 2000 - 2022 the number of: + Public schools: Vv 16% + Public schools student enrolments: 49% + Independent schools studentenrolments:
Slide 9: 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. ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 10: Group revenue (R'm)
GROUP REVENUE (R’M) ACvicCH Consistent growth CAGR 11% LAL 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 11: Group operating profit (R'm)
GROUP OPERATING PROFIT (R’M) ACvicCH Continued strong growth CAGR 15% 1108 869 908 XX ) 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 12: Group operating margin (%)
GROUP OPERATING MARGIN (%) ACvicCH Improved due to: + Operating leverage resulting from enrolment growth + Continued focus on efficiency improvements 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 13: Group operating margin
GROUP OPERATING MARGIN ACveCH GROUP Operating leverage and efficiency driven Educational business Resourcing division N ; . 7 “Es 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2021
Slide 14: Improved operating margins (%)
: IMPROVED OPERATING MARGINS (%) ACviE —_ GROUP _ Educational business Schools division Schools South Africa > > _ 2019 2020 2021 2022 2019 2020 2021 2022 Tertiary division Schools rest of Africa > L> 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year e
Slide 15: Segmental overview
SEGMENTAL OVERVIEW 2022 Revenue contribution {Resourcing Attica Operating profit contribution 1% ‘a 2021 - ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 16: Normalised earnings per share
NORMALISED EARNINGS PER SHARE GROUP Compounded growth rate of 20% Cents a CAGR 20% 145,7 126,5 85,2 90,2 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 17: Normalised earnings per share - US$
NORMALISED EARNINGS PER SHARE - US$ ACvieCH US cents — CAGR 12% 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 18: Loadshedding
LOADSHEDDING ADVvTECH is serious about sustainability - Successfully implemented measures to ensure that our ability to deliver high-quality education remains unaffected + Embedded technology, with centralised monitoring, to reduce electricity and water consumption +» Result: despite increase in cos
Slide 19: Strategic objectives
STRATEGIC OBJECTIVES REGULATIONS Growth Organic and acquisitive Channel Product Segment Excellence through specialisation a Geographic + Market fc + Benchmarking: industry & salary + Data driven insights Academic excellence Teaching & learning Learning International & employer re nition Customer foc
Slide 20: Development of the group's competitive advantage
DEVELOPMENT OF THE GROUP’S COMPETITIVE ADVANTAGE Ability to leverage scale (ii) strategy ®) Well positioned Agile and adaptive business model @) Building competitive advantage Confidence in future investments Continued growth in SA: * Comprehensive well established footprint * Established premium br
Slide 21: Phases of development
PHASES OF DEVELOPMENT Building a solid platform — ona journey to a sustainable competitive advantage Bui sustainable competitive advantage through leveragi unique competencies Leader in teaching and learning: Standardise Revised and improved * Structures * Systems * Brand portfolios and value propos
Slide 22: Schools division
La, to Schools division Revenue Operating profit > + All brands, including premium brands have shown growth + Continued to win market share in a tough operating environment » > + Strong enrolment growth with commitment to quality education and efficiency gains +» Confidence for future expansion > AN
Slide 23: School brand portfolio
Progressive / Traditional / Specialised Mid-fee Early childhood Online / Modern Holistic academic development homeschooling support and assisted learning
Slide 24: Schools: student enrolments
SCHOOLS: STUDENT ENROLMENTS ACveCH GROUP Continued growth in enrolment numbers Schools division Schools South Africa Schools rest of Africa AGRE — cAGR5% — cAGR 10% — 6% 10% 31347| 29599 27334 36802 26 393 7203 33.903 _ ones 5977 32370 30827 53 2019 ~~ 2020 2021 2022 2023 2019 = 2020.-~——2021 2022-2
Slide 25: Schools division
SCHOOLS DIVISION Continued growth in enrolment numbers Revenue (R'm) Operating profit (R'm) Operating margin (%) _— cAGRS% _——— cAGR18% — 23% 564 18,7 15,9 2458 460 15,5 2226 2311 wo 344 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 po, ANNUAL FINANCIAL RESULTS for the year ended 31 De
Slide 26: Schools - South Africa
SCHOOLS - SOUTH AFRICA ACveCH GROUP Good enrolment growth and solid financial performance Revenue (R'm) Operating profit (R'm) Operating margin (%) _. __ coat) rN _—— 18,9 484 2492 Fz) 17,7 17,8 2190 2022 2114 = 376 \ \ IN 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 pon, ANNUAL FINAN
Slide 27: Schools - rest of Africa
SCHOOLS - REST OF AFRICA ACveCH Strong growth, commitment to quality education and efficiency gains Revenue (R'm) Operating profit (R'm) Operating margin (%) cAGR 18% _— 69% an 17,7 47 268 a i a (13) (10) (4,8) IN 5) 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULT
Slide 28: Academic results achieved in South Africa
ACADEMIC RESULTS ACHIEVED IN SOUTH AFRICA ACvieCH Outstanding results in line with promise of academic excellence Independent Examination Department of Basic Education ADvTECH Board (IEB) results (DBE) results students Matric pass rate ADVvTECH IEB students 99.5% IEB students 98.4% Matric pass rate
Slide 29: Outstanding academic delivery establishing ADvTECH's credentials
Outstanding academic delivery establishing ADVTECH’s credentials ya aa Gaborone International School = 3 16% of the class achieved full house’ A's distinctions per candidate * Cambridge International students (A/AS Levels) 2 distinctions per candidate ** Ne 7 Pass rate pe) Crawford 1 0 0 % ‘0 Tntern
Slide 30: Gaborone International School
30 GABORONE INTER a NATIONAL SCHOOL
Slide 31: Gaborone International School
— ADvieCH GROUP + State of the art Science and Technology centre Enrolments for high school completed.(projectors in every classroom, laser cutter, and 3D printers). + Sports facilities were upgrade + Development of the next phase brought 2301 2464 forward to meet enrolment growth 1976 2020 2021 202
Slide 32: Pinnacle Raslouw in Centurion
32 PINNACLE RASLOUW IN CENTURION
Slide 33: Pinnacle College Raslouw
= ADvieCH GROUP PINNACLE COLLEGE RASLOUW Enrolments - Enrolments exceeded expectations necessitating the need to bring forward phase two of the project to 2023 Business case Actual year 1 Actual year 1 Year 1 Term1 Term 2 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 34: Schools enrolment movement
SCHOOLS ENROLMENT MOVEMENT ACveCH GROUP 8725 39 290 2 225 ——_— ——— “ (399) a) a (2461) oo rs rn 1 H 1 t Growth in I | tmatric leaverst ! I ! | reflects ' H ' | increase in ' Decrease i ' Decrease i 1 student 1 37%! | i 51%! | 1 numbers | ' H ' H ' i H i 1 1 1 t 1 u Enrolments Matric leavers Emigrati
Slide 35: Schools building capacity
SCHOOLS BUILDING CAPACITY ACveCH Competitive advantage Feb 2019 Feb 2020 Feb 2021 Feb 2022 Feb 2023 (. Students enrolled (‘000) 30.8 32.4 33.9 36.8 39.3 Existing building capacity (‘000) 38.2 41.2 415 44.5 46.7 % Existing building capacity utilised 81% 79% 82% 83% 84% Ultimate capacity 54.8 56.8 56.
Slide 36: Tertiary division
TERTIARY DIVISION 32 Campuses (2021: 32) Revenue contribution 39% (2021: 41%) R2.7 billion (2021: R2.4 billion) ADviceCcH GROUP La, Ln Revenue Operating profit Tertiary division - Continuing the trend of good performance * Quality academic offering with multi-channel modes of delivery ANNUAL FINANCI
Slide 37: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 38: Tertiary division
TERTIARY DIVISION ACveCH GROUP Various Capex expansions — margins maintained Revenue (R'm) Operating profit (R'm) Operating margin (%) conte ncn —_—_— A» _—— 2728 680 ay 23,1 23,0 2145 oe “ 609 539 496 \ iN IN 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for t
Slide 39: Rosebank College – Johannesburg
Slide 40: Rosebank College - Johannesburg Mega Campus
ACvicCH ROSEBANK COLLEGE - JOHANNESBURG —22°2"— MEGA CAMPUS q S=nSeean Largest number of enrolled students (+8 900) on a private HEI campus in SA + Purchase of adjacent building to create a student precinct - Planned upgrades to create a social environment where students can collaborate, learn and e
Slide 41: Rosebank College - Pretoria
ROSEBANK COLLEGE - PRETORIA
Slide 42: Rosebank College - Pretoria Mega Campus
ROSEBANK COLLEGE - PRETORIA MEGA CAMPUS , Created through merger of Sunnyside and CBD campuses « Purchase of adjacent building to create a student precinct, with study, entertainment and collaboration spaces to enhance student life
Slide 43: Varsity College
VARSITY COLLEGE 2 z
Slide 44: Varsity College expansion
VARSITY COLLEGE EXPANSION + Expansion of both Pretoria and Waterfall campuses to expand space and provide enhanced student experience + Maintained margin
Slide 45: Tertiary: full qualification student enrolments
ACvicCH TERTIARY: a FULL QUALIFICATION STUDENT ENROLMENTS Expanded our academic offering and multi-mode of delivery _ cAGR 6% 44975 45 647 39629 2019 2020 2021 2022 2023 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2021
Slide 46: Tertiary enrolments
TERTIARY ENROLMENTS ACveCH Full qualification student enrolments IIE online distance students AGRE" CAGR 30% _—_———— 4% _———— Poon 4543 49341 47539 44975 45.647 3720 39629 3167 2037 1586 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 47: Tertiary division / 'Private University'
TERTIARY DIVISION /‘PRIVATE UNIVERSITY’ ACvieCH Faculties = 1HETNDEPENDENT waa INSTITUTE OF (EDUCATION Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of o 2 G £ £ ° is) Finance and Accounting Information and Communications Technology Social Sciences ANNUAL FINANCIAL RESULT
Slide 48: Multi-channel modes of delivery available any time & at any place
Multi-channel modes of delivery available any time & at any place • • • • • • • • • • • • • • •
Slide 49: Qualification pipeline
QUALIFICATION PIPELINE ACvicCH 230 registered and accredited qualifications 7 Faculties Finance and Commerce Information and Humanities and Engineering and Education Accounting Communications Social Sciences Health Sciences Technology «, Tt 2 .as- Fis X cr 230 . Be eBce z 4 Accredited 28 8 os aa § g
Slide 50: Modes of delivery - quality of support
MODES OF DELIVERY - QUALITY OF SUPPORT Advantage of a central academic team Multi-channel modes of delivery: e Face-to-Face/ @ Fulltime on campus @ Blended © Online @ Part-time Distance XX Invested in Learning Management System (LMS) and other enabling technologies Integrated Student Information Sys
Slide 51: Criteria amendment published by Minister of Higher Education and Training
ADviceCcH GROUP THE MINISTER OF HIGHER EDUCATION AND TRAINING PUBLISHED THE CRITERIA AMENDMENT ACT 2016 0 Draft criteria published * Provides broad brand descriptors, lacks detailed criteria * Challenging but positive stepping stone ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 52: Resourcing division revenue and operating profit
Revenue Operating profit + Increase market share in SA in a tough environment ~~ <a Revenue Operating profit + Strong overall performance lead by outstanding performance in the rest of Africa + Strategy to expand into the rest of Africa delivers good results +» Growing additional business segment +
Slide 53: Resourcing division
RESOURCING DIVISION ACveCH GROUP Revenue (Rm) Operating profit (R’m) Operating margin (%) enor none —_—_ 38% —_—_ 66% 1407 6,3 1018 40 848 , 38 741 39 = * iN Xu : u a 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 54: Resourcing South Africa
iN RESOURCING SOUTH AFRICA Revenue (Rm) Operating profit (R'm) Operating margin (%) » | Invested in establishing | ad a presence in the skilled | ‘contractor market 14,2 263 226 u 60 6,4 180 (18,5) 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ende
Slide 55: Resourcing rest of Africa
RESOURCING REST OF AFRICA Revenue (Rm) Operating profit (R’m) Operating margin (%) enon _ «— —_ 16% —_ 519 1155 S2 792 664 478 * 33 21 N Ce 2019 2020 2021 2022 2019 2020 2021 2022 2019 2020 2021 2022 ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 56: Sound balance sheet
SOUND ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 57: Debtors breakdown
DEBTORS BREAKDOWN ACviEeCH 7eCH eee Trade receivables 802.0 90.5 669.5 42.0 564.8 81.8 446.9 36.1 Loss allowance (437.5) (54.4) (380.2) (2.9) (321.0) (46.6) (272.6) (1.8) 364.5 36.1 289.3 39.1 243.8 35.2 174.3 34,3 Coverage of debtors' balance 55% 60% 57% 7% 57% 57% 61% 5% Credit losses 257.1 24.9 2
Slide 58: Cash flow generation from operations
CASH FLOW GENERATION FROM OPERATIONS ACvieECcH Emphasises the inherent cash generating ability of our business cAGR 12% Rm 2018 2019 2020 2021 2022 = Cash generated from operations = Cash from operations (after working capital) ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 59: Cash vs net borrowings
CASH VS NET BORROWINGS ACveCH Strong cash generation and sound balance sheet 1714 1083 ee 1285 ue ) Covenants net borrowings: EBITDA . Banks: 3.5x Ratio = 2018 2019 2020 2021 2022 | I: 3.0 Net borrowing to nternal: -Ox cash generation 1.8 2.1 1.6 1.1 0.8 Actual: 1.4x Cash generated by operations Net
Slide 60: Investment vs ROFE
INVESTMENT VS ROFE ACveCH 18,9% 1001 928 670 443 334 350 2016 2017 2018 2019 2020 2021 2022 Capex + Acquisitions @@=ROFE ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 61: Acquisitions and new school and campus openings
Acquired: Acquired: Acquired: Opened: Opened: Opened: Opened: Summit College Glenwood Makini schools The Bridge Assisted Trinityhouse Evolve Online Pinnacle College (Rebranded Pinnacle House Learning School Glenvista School Raslouw College Kyalami) Greenwood Bay Opened: Opened: College Crawford Pinn
Slide 62: Capex
CAPEX ACvieCH oo oo oo os oa o Capex Projects : + os oa o oo oo aie | 720.3 447,0 74,3 15,4 ee 1 new school site Student management and finance systems Additions to existing sites Furniture, Fittings, IT and vehicles ANNUAL FINANCIAL RESULTS for the year ended 31 December 2022
Slide 63: Inherent underlying demand for quality education
Inherent underlying demand for quality education + SAdriven by poor public offerings Africa: attractive growth prospects eC = uality asset base Well established brand portfolio Significant free cash generation Sound balance sheet Good financial controls ANNUAL FINANCIAL RESULTS for the year ended 31
Slide 64: Investment case
INVESTMENT CASE Sound operational base Uniquely positioned with real competitive advantage Resourced with capable competent expertise Built a coherent brand strategy in both schools and tertiary divisions Improved structures, systems and processes ANNUAL FINANCIAL RESULTS for the year ended 31 Decem
Slide 65: Declaration of dividend
DECLARATION OF DIVIDEND ACveCH Strong cash generation and sound balance sheet * Confidence in the robustness and sustainability of our b * Current performance makes the dividend prudent a 60.0 cents per share * Dividend 420% comparative period ANNUAL FINANCIAL RESULTS for the year ended 31 December
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