Slide 1: Investor Presentation: Acquisition of Australian Institute of Education and Training
For personal use only Investor Presentation Acquisition of Australian Institute of Education and Training ReadCloud Limited ASX: RCL, RCLO November 2018
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by ReadCloud Limited (“Readcloud”), based on information available as at the date of this presentation. The For personal use only information in this presentation is provided in summary form and does not contain all information necessary to make an inve
Slide 3: ReadCloud Overview
ReadCloud Overview ASX Code: RCL, RCLO Substantial Shareholders For personal use only Share Price ( 7 November 2018) $0.375 Amity Agency Pty Ltd 16.4% Market capitalisation (@ 37.5 cents) $32.8m Thorney Group* 11.5% Shares on issue (listed) 43.9m Lars Lindstrom 9.8% Escrowed shares 43.6m Hunmar Hold
Slide 4: Acquisition Overview
Acquisition Overview Agreement to acquire 100% of Australian Institute of Education and Training (AIET) for up to $2.95 million For personal use only 1 Leading Registered Training Organisation (“RTO”) with a presence in over 90 Australian secondary schools. Headquartered in Melbourne with school c
Slide 5: Overview of AIET
Overview of AIET • AIET was established as a Registered Training Organisation (“RTO”) in 2003 and is one of the largest RTO’s For personal use only in Victoria in the Secondary School market • The business specialises in providing nationally accredited Vocational Education and Training (“VET”) to se
Slide 6: The Australian Vocational Education Sector
The Australian Vocational Education Sector • VET, as delivered to secondary school students, is a key component of the Australian government’s strategy For personal use only to increase student retention and improve year 12 or equivalent completion rates, by providing options for all students. It al
Slide 7: Transaction Rationale
Transaction Rationale Provides a complimentary (and proprietary) product and relationships with 90+ additional For personal use only schools ▪ Provides immediate entry into the growing Vocational Education Training in schools Entry to the sector VET in Schools Sector ▪ Expands ReadCloud’s product of
Slide 8: Benefits for Schools and Students
Benefits for Schools and Students Students For personal use only • All VET course material in one App • Operates on all hardware/operating systems • Social collaboration and annotations • Social learning – share notes, videos & ideas • Single Login to all content • Offline reading – notes and annota
Slide 9: Acquisition Terms
Acquisition Terms For personal use only • ReadCloud to acquire 100% of AIET • Acquisition consideration will be satisfied by existing cash and the issue of shares to the vendor, with consideration to be paid in up to three tranches based on performance: – $350,000 cash and 250,000 ReadCloud shares p
Slide 10: ReadCloud Business Update
ReadCloud Business Update Direct Sales For personal use only • All existing direct customer school contracts are rolling into the 2019 school year • Although still in the selling season for 2019, several new large direct schools have signed-up for 2019 • Curriculum changes for 2019 occurring in some
Slide 11: ReadCloud Business Update (cont'd)
ReadCloud Business Update (cont’d) New Channel Partners For personal use only • New reseller agreements with a further 3 school stationery / book suppliers (bringing the total number of resellers to 7), including: – Adelaide Direct Stationers – servicing 200+ schools in South Australia – Bennetts Of
Slide 12: Outlook
Outlook • ReadCloud continues to see a record direct sales pipeline, with several new large direct schools For personal use only signed up for 2019 • School purchasing decisions have been delayed by curriculum changes for 2019, which has extended the selling season (decisions on a number of tenders
Slide 13: Key Investment Highlights
Key Investment Highlights • ReadCloud is the leading digital education solution for Australian schools, delivering clear educational For personal use only benefits and saving schools and students money • Large market opportunity in Australia with an immediate target market of 2,700 secondary schools
Slide 14: ReadCloud Limited
For personal use only ReadCloud Limited 1/426 Glenhuntly Rd Elsternwick VIC 3185 Contact: Lars Lindstrom, CEO & Co-Founder, lars@readcloud.com