Academies Australasia Group Limited · ASX:AKG

Academies Australasia — Investor Presentation (August 2013)

26 slides from Academies Australasia's investor presentation, Aug 26, 2013

  1. Slide 1: Company Presentation Announcement

    For personal use only 26 August 2013 Company Announcements Office Australian Stock Exchange Level 4 20 Bridge Street Sydney NSW 2000 Via ASX Online (Page 1 of 26) ANNOUNCEMENT COMPANY PRESENTATION Christopher Campbell Group Managing Director For further information call Christopher Campbell on +61 4

  2. Slide 2: Academies Australasia Group Limited Company Presentation

    For personal use only ACADEMIES AUSTRALASIA GROUP LIMITED COMPANY PRESENTATION ACN 000 003 725 26 August 2013

  3. Slide 3: Important. Please note.

    For personal use only Important. Please note. The information in these slides has been prepared by Academies Australasia Group Limited ACN 000 003 725 (‘AKG’ or ‘the Company’) and is provided solely for information purposes. By viewing, or attending a presentation of this information, you agree to b

  4. Slide 4: For personal use only

    For personal use only 26 August 2013 3

  5. Slide 5: Company snapshot

    For personal use only Established May 1908 Listed on ASX June 1977 ASX Code AKG Shares on issue 53.6m Share h Price i (23 August 2013) 96 cts 52 week Trading range 55 cts – 98 cts Market Capitalisation $51.5m Annual Dividend 5 cps (fully franked) Flagship Business Education 26 August 2013 4

  6. Slide 6: FY2013 results highlights

    For personal use only  Profit attributable to owners of parent entity: $3.3m. 31%  Revenue: R $37.8m. $37 8 12%  EBITDA: $5.5m. 10%  Earnings per share: 6.8 cents. 28%  Net cash flows from operations: $5.4m. 97%  Final dividend: 2.5 cps. Full year dividend: 5 cps. Fully franked  NTA per share

  7. Slide 7: Results by segment: Education and Fasteners

    For personal use only  Education ◦ Turnover: $30 $30.3m. 3m 16% ◦ Contribution: $5.7m. 17%  Fasteners ◦ Turnover: T $7.5m. $7 5 3% ◦ Contribution: $0.7m 22% 26 August 2013 6

  8. Slide 8: Acquisitions during the year

    For personal use only  Acquired Discover English (English Language college in Melbourne)  Acquired 40% interest in College of Sports & Fitness in Sydney  Acquired q all the non-controllingg interests in: ◦ Academies Australasia College (in Singapore) ◦ Academies Australasia Polytechnic y ((in Mel

  9. Slide 9: Five-year financial summary

    For personal use only $m 30 June 30 June 30 June 30 June 30 June 2009 2010 2011 2012 2013 CAGR* Revenue from Education 9.6 10.8 17.8 26.1 30.3 26% Fasteners 7.5 7.4 7.4 7.7 7.5 0% Total Revenue 17.1 18.2 25.2 33.9 37.8 17% Expenses 14.3 15.6 21.3 28.8 32.3 18% EBITDA 2.8 2.6 3.9 5.0 5.5 14% Deprecia

  10. Slide 10: International education market conditions

    For personal use only  Over the past 3 years, years contribution by the international education sector in Australia dropped from $19 billion to less than $15 billion  Market made more difficult by: ◦ Severe S di discounting ti off ttuition iti ffees b by some competitors tit ◦ Apparent discouragem

  11. Slide 11: Revenue, NPAT and EBITDA growth

    For personal use only Cumulative Annual Growth Rate Revenue 17% NPAT* 13% EBITDA 14% Revenue $m NPAT* $m EBITDA $m 37.8 3.3 33.9 55 5.5 5.0 2.5 25.2 2.3 3.9 18.2 1.8 28 2.8 17 1 17.1 16 1.6 2.6 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 * Attributable to shareholders

  12. Slide 12: Earnings, operating cash flows and dividends per share

    For personal use only Earnings Operating Cash Flows Dividends (cps) (cps) (cps) 68 6.8 50 5.0 11.3 5.4 5.3 4.0 4.0 4.3 7.6 3.6 3.0 5.8 5.0 4.5 2.0 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 26 August 2013 11

  13. Slide 13: Cash and placement

    For personal use only  Cash of $5m at 30 June 2013  $4m raised from placement of 5 5.3m 3m new fpo shares issued at 75 cents per share to fund managers and sophisticated investors (August 2013) 26 August 2013 12

  14. Slide 14: Growth in colleges, students, EPS and dividends

    For personal use only  Flagship education business grew organically and via acquisition ◦ from 6 colleges in Sydney CBD with about 2,000 students ◦ to about 6,000 6 000 students in 10 colleges: 7 in New South Wales Wales, 2 in Victoria and 1 in Singapore  Total shares grew from 40.6m 40 6m in Augu

  15. Slide 15: Profit growth to June 2013

    For personal use only  For the 3 years to 30 June 2013, year-on-year growth in respect to profit attributable to shareholders of AKG averaged 28% 26 August 2013 14

  16. Slide 16: Strategy: expand education, divest fasteners

    For personal use only  To continue to explore opportunities to further expand education operations, in Australia and overseas  To specialise in education. education And therefore divest the fasteners business 26 August 2013 15

  17. Slide 17: For personal use only

    For personal use only 26 August 2013 16

  18. Slide 18: Education revenue and contribution growth

    For personal use only Cumulative Annual Growth Rate Revenue 26% Contribution 15% Revenue $m Contribution $m 5.7 30.3 26.1 4.9 3.9 17.8 2.8 2.3 10.8 9.6 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 26 August 2013 17

  19. Slide 19: Expansion since 2009

    For personal use only  Expansion since 2009 Prior to 2009, AKG owned 6 colleges (AOE, AAI, ACT, AIHS, CBC and SBC).) AKG acquired control of AAC in 2009, AAPoly and BMC in 2011 and DE in 2012. 2012 In 2013, the non-controllingg interests in AAPoly, y AAC and BMC were acquired. Legend AKG Academies

  20. Slide 20: Student enrolment growth 2008-2012

    For personal use only  Students - Growth in group enrolments from (calendar) 2008 to 2012 – one way of counting: 2008 2,915 2009 4,316 2010 5,844 2011 9,335 2012 9 594 9,594 Notes: •Apart from BMC and AAC, the numbers are for international students on student visas who were studying during the year

  21. Slide 21: Students at June 2013

    For personal use only  Students – Another way of counting: At 30 June J 2013, 2013 th the 10 colleges ll g h had d55,963 963 students, calculated as follows: ◦ For the 9 colleges other than BMC: ‘Bums-on-seats’ at 30 June 2013 plus paid enrolments not yet started. ◦ For BMC: Enrolments from 1 July

  22. Slide 22: Students by qualification type

    For personal use only  Qualifications ◦ Breakdown of students by type of qualification 30 June 2008 30 June 2013 Higher Education 0 879 (i) Vocational (ii) 1,300 3,597 Senior High School 333 71 English (Non award) 347 1 233 1,233 Other 0 183 (iii) Total 1,980 5,963 Notes: i. AAPoly degree as well a

  23. Slide 23: Organic growth of Sydney colleges

    For personal use only  Organic Growth: The 6 colleges in Sydney have grown too Students Revenue 30 June 2009 30 June 2013 FY2009 FY2013 2,263 5,963 $9.6m $11.8m +164% +23% 26 August 2013 22

  24. Slide 24: Education contribution by year

    For personal use only FY 2008 $2.6m FY 2009 $2.8m FY 2010 $2.3m FY 2011 $3.9m FY 2012 $4 9 $4.9m FY 2013 $5.7m 26 August 2013 23

  25. Slide 25: Student nationalities

    For personal use only  Over the years, AKG colleges have taught students ffrom 116 countries i  The top 10 nationalities at 30 June 2013 are from the following countries: Australia * 24% China 22% Vietnam 10% Indonesia 6% Brazil 4% Colombia 4% Thailand 3% Nepal 2% Philippines 2% India 2% Other 21%

  26. Slide 26: For personal use only

    For personal use only 26 August 2013 25

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