Slide 1: Accelerating growth via the acquisition of Southern Solutions
ASX Release 14 October 2022 Accelerating growth via the acquisition of Southern Solutions Highlights • ReadCloud has acquired 100% of Southern Solutions – Training Services Pty Ltd (“Southern Solutions”) which is a leading national provider of training for certificates in Early Childhood Education &
Slide 2: ASX Release continued: deferred payments and company background
Deferred payments of up to $1.8 million are based on FY23 and FY24 EBIT performance and paid with 75% cash and 25% shares at the higher of 20 cents or the share price at the time the earn-out targets are being met. The acquisition will be funded through ReadCloud’s existing cash reserves. The total
Slide 3: ReadCloud eBook platform overview
Students and teachers can share notes, questions, videos and weblinks directly inside the eBooks turning the eBook into a place for discussion, collaboration, and social learning, substantially improving learning outcomes. ReadCloud sources content for its solutions from multiple publishers, deliver
Slide 4: Accelerating growth via the acquisition of Southern Solutions
ReadCloud Limited Accelerating growth via the acquisition of Southern Solutions 14 October 2022
Slide 5: Expanding Growth Opportunities
EXPANDING GROWTH OPPORTUNITIES ReadCloud has acquired 100% of The acquisition broadens The acquisition provides a large Southern Solutions – Training ReadCloud’s total addressable growth opportunity for Services Pty Ltd (“Southern market beyond the school market, ReadCloud in a market that is Soluti
Slide 6: Continuing to Pursue Our Strategy
CONTINUING TO PURSUE OUR STRATEGY • Acquiring Southern Solutions broadens ReadCloud total addressable market, beyond the Broader school market, to 3.9 million Australians who yearly take a Vocational Educational & VET Training course • We are pursuing industry alliances to provide improved alignment
Slide 7: ReadCloud's Market Opportunity
READCLOUD’S MARKET OPPORTUNITY 241,000 3.9 million students 1.7 million students in students in enrolled in VET 2,816 secondary VET-in-school courses with 3,519 schools in Australia2 courses1 training providers in Australia Continued Investment Increased Investment New Investment ReadCloud eBook Rea
Slide 8: Acquisition Overview
ACQUISITION OVERVIEW R eadC l ou d has acqu i red 1 0 0 % of Sou thern Sol u ti ons – T rai ni ng Servi ces Pty Ltd • Registered Training Organisation established in 2014 delivering qualifications nationally Southern • Training is predominantly delivered in Early Childhood Education and Care Solutio
Slide 9: Southern Solutions Overview
SOUTHERN SOLUTIONS OVERVIEW • An approved registered training organisation (RTO) that provides Nationally Accredited Training • The business has developed strong partnerships with industry and earnt a reputation as a provider of innovative, quality and service focused training • It has government fu
Slide 10: Australian Childcare Industry
AUSTRALIAN CHILDCARE INDUSTRY Positive Favourable Staff shortages supply/demand government funding continue to trends in the initiatives, which impact the childcare sector should continue to conversion of support growth in rising demand demand Jobs and Skills Summit – key outcomes with National Skil
Slide 11: Overview of key VET statistics in Australia
Overview of key VET statistics in Australia Government- funded VET in Total VET students VET students and courses Schools and courses Funding 2021 2020 2020 2020 1.25 million 241 200 3.9 million $7.5 billion Government – VET in Schools VET students Government funded vet students spending for VET stu
Slide 12: Transaction Rationale
TRANSACTION RATIONALE Takes ReadCloud Entering an Owners of the ReadCloud already Training provided by Annual Revenue Per into the broader VET industry with state business were has access to Southern Solutions is User (“ARPU”) for market, which has a government funding attracted to the premium cours
Slide 13: Acquisition Terms
ACQUISITION TERMS • ReadCloud to acquire 100% of the issued shares in Southern Solutions – Training Services Pty Ltd • The upfront payment of $1.35m includes $975,000 cash payable on completion and $375,000 in equity (RCL shares) at the higher of 20 cents or the share price at the time of completion
Slide 14: Acquisition Summary
ACQUISITION SUMMARY The new market acquisition broadens ReadCloud’s total addressable market beyond the school market as 3.9 million Australians take a Vocational Educational & Training course yearly The provision of training in the childcare sector will leverage the existing ReadCloud SaaS platform
Slide 15: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Acquisition of Southern Solutions launches ReadCloud into a large market in Broader VET training Investment in platform, compliance and support systems can be scaled and leveraged into new opportunities such as this acquisition Major brand and marketing launch aimed at cros