Slide 1: Investor Presentation
INVESTOR For personal use only PRESENTATION OPENLEARNING LIMITED (ASX:OLL) 28 OCTOBER 2020
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by OpenLearning (The Company). It does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. You should not treat the contents of this presentation, or any informat
Slide 3: I. A leader in online education
For personal use only I. A leader in online education 3
Slide 4: OpenLearning's all-in-one solution enables education providers to move online
OPENLEARNING’S ALL-IN-ONE SOLUTION ENABLES EDUCATION PROVIDERS TO MOVE ONLINE For personal use only GLOBAL LEARNING PLATFORM Scalable cloud platform for education MARKETPLACE providers to create, sell and deliver Global high-traffic website for learners high quality courses and degrees to discover n
Slide 5: OpenLearning is focused on being the leader in Australia and Southeast Asia
OPENLEARNING IS FOCUSED ON BEING THE LEADER IN AUSTRALIA AND SOUTHEAST ASIA For personal use only FUTURELEARN (UK) COURSERA (US) • Since 2013 • Since 2011 • 10M users • 40M users • 83 education providers • 201 institutions OPENLEARNING (AU) • Since 2012 • 2.6M users • 143 education providers EDX (US
Slide 6: Transformative partnership with UNSW Global to deliver online pathway program
TRANSFORMATIVE PARTNERSHIP WITH UNSW GLOBAL TO DELIVER ONLINE PATHWAY PROGRAM For personal use only TOP 10 UNIVERSITIES BY TOTAL THE UNSW TRANSITION PROGRAM (ONLINE) SIGNIFICANT MARKET OPPORTUNITY INTERNATIONAL INTERNATIONAL STUDENTS NUMBERS4 STUDENTS → Five-year license agreement with the → 442k in
Slide 7: Creating and leading the new Australian micro-credential market with OpenCreds
CREATING AND LEADING THE NEW AUSTRALIAN MICRO-CREDENTIAL MARKET WITH OPENCREDS For personal use only OPENCREDS BY OPENLEARNING ENABLING CREDIT TRANSFER BETWEEN INDUSTRY AND THE HIGHER EDUCATION SECTOR → Enables education providers and industry to create stackable courses that lead towards credit → D
Slide 8: Our blue-chip clients in multi-billion dollar markets
OUR BLUE-CHIP CLIENTS IN MULTI-BILLION DOLLAR MARKETS For personal use only $67.9B TOTAL EDUCATION EXPENDITURE IN AUSTRALIA AND MALAYSIA* $6.0B $46.9B $10.0B CORPORATE TRAINING $5.0B UNIVERSITY AND OTHER TECHNICAL AND AND PROFESSIONAL INDUSTRY HIGHER EDUCATION VOCATIONAL EDUCATION DEVELOPMENT ASSOCI
Slide 9: II. Background
For personal use only II. Background 9
Slide 10: Skills shortages and technological change are driving demand for education globally
SKILLS SHORTAGES AND TECHNOLOGICAL CHANGE ARE DRIVING DEMAND FOR EDUCATION GLOBALLY For personal use only 70% 74% 50% Semi-skilled jobs in Australian workers are ready World economy affected if Malaysia are at a high risk to completely retrain to current automation of automation remain employable te
Slide 11: Cutting-edge platform designed for the future of education
CUTTING-EDGE PLATFORM DESIGNED FOR THE FUTURE OF EDUCATION For personal use only → Research-backed approach → Outcome-based education → High student engagement → Soft skills and practical skills → Innovative assessment system → Automatically generated portfolios ASX:OLL | 11
Slide 12: Experienced board of directors
EXPERIENCED BOARD OF DIRECTORS For personal use only KEVIN BARRY ADAM BRIMO DAVID BUCKINGHAM NON-EXECUTIVE CHAIRMAN EXECUTIVE DIRECTOR NON-EXECUTIVE DIRECTOR Kevin has over 24 years’ experience in Adam left Macquarie Group to found David has had an impressive career OpenLearning with fellow UNSW whi
Slide 13: Industry-leading management team
INDUSTRY-LEADING MANAGEMENT TEAM For personal use only ADAM BRIMO CHERIE DIAZ MANAGING DIRECTOR & GROUP CEO MANAGING DIRECTOR, AUSTRALIA • B. Engineering (Software)/ B. Arts (Politics) from UNSW • B. Teaching/B. Arts from ACU, M. Arts (History) from Macq Sydney, honours at National ICT Australia Uni
Slide 14: III. Investment Opportunity
For personal use only III. Investment Opportunity 14
Slide 15: A$6M capital raise to fund immediate growth opportunities
A$6M CAPITAL RAISE TO FUND IMMEDIATE GROWTH OPPORTUNITIES For personal use only OPPORTUNITIES TO ACCELERATE GROWTH UNSW TRANSITION → Fundamental disruption to the higher education PROGRAM (ONLINE) sector due to COVID-19 has presented new growth POTENTIAL opportunities ACQUISITION OPENCREDS 1M OPPORT
Slide 16: Strong growth across all key metrics (year to September)
STRONG GROWTH ACROSS ALL KEY METRICS (YEAR TO 30 SEPTEMBER) For personal use only PLATFORM SAAS 51% PLATFORM $1,225 CUSTOMER $2,445 GROSS MARGIN SAAS ARR1 CASH RECEIPTS $790 $1,605 (AUD, ‘000) (AUD, ‘000) 19% +168% +55.1% +52.3% FY19 YTD FY20 YTD FY19 YTD FY20 YTD FY19 YTD FY20 YTD PLATFORM SAAS TOT
Slide 17: Capitalising on fundamental changes in the higher education sector
CAPITALISING ON FUNDAMENTAL CHANGES IN THE HIGHER EDUCATION SECTOR For personal use only PLATFORM OLL provides AVERAGE ANNUAL REVENUE PER platform and funds → Scalable learning platform is the core product; enabling a new ACTIVE USER IN AUSTRALIA BY setup costs for online-first model for higher educ
Slide 18: Executing on strategy to deliver growth
EXECUTING ON STRATEGY TO DELIVER GROWTH For personal use only ACQUISITION CASE STUDY → Increased sales & marketing team INCREASING USAGE AT A TOP TIER UNI LEARNERS DISCOVER → Board appointments: David Buckingham (ex- Australian university grew from 10 courses COURSE & PAY ONLINE Navitas) and Beverle
Slide 19: Rapid recurring revenue and customer growth in multiple markets
RAPID RECURRING REVENUE AND CUSTOMER GROWTH IN MULTIPLE MARKETS For personal use only ANNUALISED RECURRING REVENUE (ARR) AND B2B CUSTOMER GROWTH $1.225M 143 ARR (AUD, '000s) PAYING CUSTOMERS ANNUALISED RECURRING PLATFORM SAAS CLIENTS REVENUE AT 30 SEPT INCL 9 AUS UNIVERSITIES 200 55% YOY GROWTH 1,22
Slide 20: Strong organic growth and repeat usage
STRONG ORGANIC GROWTH AND REPEAT USAGE For personal use only CUMULATIVE REGISTERED USERS AND ENROLMENTS 2.6M 4.2M CUMULATIVE REGISTERED USERS ('000s) CUMULATIVE ENROLMENTS ('000s) UNIQUE REGISTERED AGGREGATE ENROLMENTS 4,238 INCREASING REPEAT USAGE LEARNERS IN COURSES 4,500 3,675 4,000 ACCELERATING
Slide 21: Group financial snapshot (H1 FY20)
GROUP FINANCIAL SNAPSHOT (H1 FY20) For personal use only FOCUSED ON GROWING RECURRING REVENUE1 HISTORICAL PROFIT AND LOSS STATEMENT1 (HALF YEAR, AUD, ‘000s) (HALF YEAR, AUD, ‘000s) $1,250 H1 FY19 H1 FY20 CHANGE 1,143 GROSS SALES/REVENUE $1,000 PLATFORM SAAS 285 517 81.4% SERVICES/MARKETPLACE 706 993
Slide 22: For personal use only
For personal use only Australia Level 2 235-239 Commonwealth Street Surry Hills, NSW 2010 Malaysia ASX:OLL Found8 KL Sentral https://solutions.openlearning.com 5, East Wing, Level 3 investors@openlearning.com KL Sentral, 50470 Kuala Lumpur 22