Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — Shareholder Meeting (June 2023)
38 slides from Stadio Holdings Pty's shareholder meeting presentation, Jun 22, 2023
Slide 1: 2023 Annual General Meeting
2023 Annual General Meeting 22 June 2023 1
Slide 2: Chairperson's Welcome
CHAIRPERSON’S WELCOME Dr Vincent Maphai Board chairperson 2
Slide 3: Presentation Overview
PRESENTATION OVERVIEW PRESENTATION OVERVIEW 1 Constitution of the meeting 4 CEO’s feedback 7 Voting closes 2 Presentation of the annual financial statements 5 Transformation, social and ethics feedback 8 Results of the annual general meeting 3 Ordinary and special resolutions 6 Questions and answers
Slide 4: Constitution of the Meeting
4 4 CONSTITUTION OF THE MEETING • Our scrutineers, Computershare, confirm a quorum is present and the meeting is properly constituted. 4
Slide 5: Presentation of Annual Financial Statements
5 5 PRESENTATION OF ANNUAL FINANCIAL STATEMENTS • 15 March 2023: Annual financial statements for the year ended 31 December 2022 were published • 28 April 2023: Annual integrated report for the year ended 31 December 2022 was published • 28 April 2023: Distributed the Notice of AGM to shareholders i
Slide 6: Ordinary Resolutions
6 ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 1 To re-elect Dr Busisiwe Vilakazi as an independent non-executive director ORDINARY RESOLUTION NO. 2 To re-elect Dr Tom Brown as an independent non-executive director ORDINARY RESOLUTION NO. 3 To re-appoint Mathukana Mokoka as a member and chairperson
Slide 7: Ordinary Resolutions
7 ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 4 To re-appoint Dr Busisiwe Vilakazi as a member of the Audit and Risk Committee of the Company ORDINARY RESOLUTION NO. 56 To re-appoint Dr Tom Brown as a member of the Audit and Risk Committee of the Company ORDINARY RESOLUTION NO. 7 6 PricewaterhouseC
Slide 8: Ordinary Resolutions
8 ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 7 General authority to issue ordinary shares for cash - Following discussions with shareholders since issuing the Notice of AGM, the Board has decided to withdraw this resolution, noting it is not the Company’s intention to issue shares for cash ORDINAR
Slide 9: Special Resolutions
9 SPECIAL RESOLUTIONS SPECIAL RESOLUTION NO. 1 Remuneration of chairperson of the Board SPECIAL RESOLUTION NO. 2 Remuneration of members of the Board SPECIAL RESOLUTION NO. 3 Remuneration of chairperson of the Audit and Risk Committee SPECIAL RESOLUTION NO. 4 Remuneration of members of the Audit and
Slide 10: Special Resolutions
10 SPECIAL RESOLUTIONS Remuneration of chairpersons of SPECIAL RESOLUTION NO. 5 the Remuneration and Nominations Committee Remuneration of members of the SPECIAL RESOLUTION NO. 6 Remuneration and Nominations Committee Remuneration of chairperson of the SPECIAL RESOLUTION NO. 7 Transformation, Social
Slide 11: Special Resolutions
11 SPECIAL RESOLUTIONS SPECIAL RESOLUTION NO. 9 General authority to provide inter- company financial assistance SPECIAL RESOLUTION NO. 10 General authority to provide financial assistance for the subscription for and/or the acquisition of shares in the Company or a related or inter-related company
Slide 12: CEO's Feedback
CEO’s FEEDBACK Chris Dr Vorster Vincent Maphai Chief Board Executive chairperson Officer 12
Slide 13: Our Purpose Is to Empower the Nation by Widening Access to Quality Higher Education
OUR PURPOSE IS TO EMPOWER THE NATION BY WIDENING ACCESS TO QUALITY HIGHER EDUCATION THROUGH OUR 3 DISTINCT PRIVATE HIGHER EDUCATION INSTITUTIONS 13
Slide 14: Our Strategy Is Working and Efficiencies Are Starting to Show
14 OUR STRATEGY IS WORKING AND EFFICIENCIES ARE STARTING TO SHOW 14
Slide 15: Looking Back at Our Financial Results for the Year Ended 31 December 2022
LOOKING BACK AT OUR FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022 Semester 2 Semester 1 Revenue EBITDA Student Numbers Student Numbers up 11% margin up up 8% up 11% to to to to R1.2 bn 29% 41 296 38 348 2021: 34 494 2021: 38 262 2021: R1.1 bn 2021: 28% Profit after Tax EPS Core Headline Core
Slide 16: Starting to Return Cash to Shareholders
1616 STARTING TO RETURN CASH TO SHAREHOLDERS Dividend Return on per share Equity up 89% continues to to grow 8.9 cps 10% 2021: 4.7 cps 2021: 9% Work towards 85% free Moving in the right cashflow direction (currently ~44%) (0.2% in 2017) 16
Slide 17: The Proof Is in the Numbers: 6 Years of Consistent Progress
THE PROOF IS IN THE NUMBERS: 6 YEARS OF CONSISTENT PROGRESS 17
Slide 18: Stable and Strong Balance Sheet at 31 December
STABLE AND STRONG BALANCE SHEET AT 31 DECEMBER Notes: • Invested R93m on capital expenditure • Impairments of R6.5m • Settled R33m of contingent consideration liability NO • Disposed of STADIO Montana for GEARING R52m with access to debt facility • Repaid all outstanding debt (R15m) • Refinanced deb
Slide 19: Big Opportunities Exist for Private Higher Education
1919 BIG OPPORTUNITIES EXIST FOR PRIVATE HIGHER EDUCATION • 1 300 961 students in higher education in 2021 (up 25% since 2011)1 Public universities have capacity and funding constraints • 18% of students in private higher education (up from 10% in 2011)1 The adult learner market in • STADIO Group is
Slide 20: We Believe Our Strategy Is Solid
20 20 WE BELIEVE OUR STRATEGY IS SOLID • Our strategy has been refined over time and we believe we have the RIGHT strategy for success • The Group is still in its infancy: − listed in 2017 − acquired 7 brands − Business Migration and launch of STADIO Higher Education was less than 3 years ago (!!) -
Slide 21: Our Growth Strategy
OUR GROWTH STRATEGY TAKING OPENING NEW EXPLORING ACCREDITING PROGRAMMES OPENING COMPREHENSIVE NEW NEW NEW TO NEW SITES CAMPUS & FACULTIES GEOGRAPHIC IN-DEMAND OF DELIVERY OPTIMISING PROGRAMMES & SCHOOLS REGIONS & TO NEW EXISTING MODES CAMPUSES 21
Slide 22: New Programme Growth
NEW PROGRAMME GROWTH • In 2023, there are 12 qualifications that are already accredited by CHE and awaiting SAQA and/or DHET approval. Some of these programmes can be offered in 2023 Semester 2, and others will be offered in 2024 86 Certificated • As a reminder, same Regulators as public universitie
Slide 23: Why Our Growth Strategy Works
WHY OUR GROWTH STRATEGY WORKS • New students generally have a positive impact on the business for the next 3 years 1st YEAR 2nd YEAR 3rd YEAR • Taking programmes to new campuses (or new modes can increase student numbers on the relevant campus as seen in 2022. • An illustrative example based on one
Slide 24: Strategic Comprehensive Campuses in Key Locations
STRATEGIC COMPREHENSIVE CAMPUSES IN KEY LOCATIONS • Our campuses offer a real student experience (conducive to offering quality higher education) • Aim = fewer comprehensive campuses: STADIO Centurion STADIO Waterfall STADIO Musgrave (to take new Schools to this site) STADIO Durbanville (future deve
Slide 25: Krugersdorp Logistics Centre Opens
KRUGERSDORP LOGISITICS CENTRE OPENS • All new buildings consider the environment throughout construction and are built on a “green” basis as far as feasible • Implementation of the Group’s solar plan has commenced on a campus-by- campus basis • Our campuses currently have sufficient alternative powe
Slide 26: Academic Quality and Integrity Remains a Priority
26 ACADEMIC QUALITY AND INTEGRITY REMAINS A PRIORITY • Artificial Intelligence (AI) is topical and disrupting the higher education landscape • Successfully integrating use of AI into the academic programmes, where relevant, whilst ensuring our academic integrity is protected • Return to venue-based
Slide 27: Our 2023 Agreed Focus Areas
27 OUR 2023 AGREED FOCUS AREAS ARE IMPORTANT IN PAVING THE WAY FOR FUTURE GROWTH AND SUCCESS 1 2 3 4 5 6 Execute agreed Optimisation of Continued On track for Improved student technologies to Student retention staff, campuses and expansion and university status experience enable efficiencies structu
Slide 28: We Have the Right Strategy to Achieve Our 2026 Targets
WE HAVE THE RIGHT STRATEGY TO ACHIEVE OUR 2026 TARGETS 8% ANNUAL GROWTH REQUIRED OCT 2017 2026^ 840 12 976 41 296 56 000 100 000+ STUDENTS STUDENTS STUDENTS STUDENTS * STUDENTS JAN DEC 2017 2022 * As disclosed in the Pre-listing Statement TARGET: 80% DISTANCE LEARNING & 20% CONTACT LEARNING 28
Slide 29: Update on 2023 Semester 1 Student Numbers
29 UPDATE ON 2023 SEMESTER 1 STUDENT NUMBERS DISTANCE LEARNING CONTACT LEARNING 10% 45,000 10,000 2% 40,000 35,822 35,000 32,686 8,000 30,000 28 573 6,081 6,269 24,784 5,402 5,921 5,662 5,762 25,000 20,932 22,199 6,000 4,755 18,997 20,000 15,000 4,000 10,000 2,000 5,000 0 0 Jun-17 Jun-18 Jun-19 Jun-
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Slide 31: We Are Well Placed to Support More Students
WE ARE WELL PLACED TO SUPPORT MORE STUDENTS THE FUTURE IS EXCITING 2023+ We offer quality programmes with quality academic staff and student support Our programmes are affordable, accessible, and relevant Milpark is becoming the leader in accounting and financial offerings AFDA remains the number on
Slide 32: We Want to Be the Higher Education Institution of Choice
3232 We want to be the Higher Education Institution of CHOICE 1 32
Slide 33: We're a New Vision in Higher Education
WE’REA NEW VISION IN HIGHER EDUCATION ney Dy a SO ahi dahil dahl STADIO HOLDINGS:
Slide 34: Transformation, Social & Ethics Feedback
TRANSFORMATION, SOCIAL & ETHICS FEEDBACK Dr Busisiwe Vilakazi Transformation, Social & Ethics Committee chairperson 34
Slide 35: Building a Diverse & Inclusive Workforce
35 BUILDING A DIVERSE & INCLUSIVE WORKFORCE • The Group continues to implement specific projects in its overall commitment to Transformation, including staff development and staff study assistance bursary schemes • Launched the Staff Phantom Share Scheme • Milpark Education maintained its Level 2 B-
Slide 36: Upskilling the Nation Through Widening Access to Quality Education
36 UPSKILLING THE NATION THROUGH WIDENING ACCESS TO QUALITY EDUCATION • The Group’s main aim is to “empower the nation by widening access to higher education” which speaks directly to “Quality Education” as identified by the Sustainable STUDENT DEMOGRAPHICS Developmental Goals • 2023 Q1 unemployment
Slide 37: Embedding an Ethical & Socially Aware Culture
37 EMBEDDING AN ETHICAL & SOCIALLY AWARE CULTURE • The Board is responsible for promoting an ethical culture within the Group and this is supported OUR by the Transformation, Social and Ethics Committee (TSEC) VALUES: • The Group’s Values were revisited and approved laying the foundation for an ethi
Slide 38: Notes: Questions and Voting
Notes: • Shareholders may ask questions by selecting the Q & A icon in the platform and typing your questions into the text box at the bottom of the screen. • Should you have any further questions or would like to arrange a meeting with the company, please contact investorrelations@stadio.co.za VOTI