Janison Education Group Ltd. · ASX:JAN
Janison Education — Investor Presentation (May 2020)
27 slides from Janison Education's investor presentation, May 19, 2020
Slide 1: Acquisition of UNSW Global Educational Assessments
Janison investor presentation Heading here Janison Education Group Limited Acquisition of UNSW Global Educational Assessments 1
Slide 2: Disclaimer
The material in this presentation is general background information about Janison Education Group Limited (JAN) and is current at the date of the presentation. This presentation may contain statements that are, or may be deemed to be, forward looking statements. Such statements can generally be iden
Slide 3: Transaction overview
Transaction overview Notes: 1. Ranked 43rd in the 2020 QS World University Rankings 2. Australian Research Council 3. Headcount prior to acquisition is 49. Janison is assuming responsibility for a core team totalling 32 + 1 internal Janison leadership role The Acquisition is al
Slide 4: Investor highlights
Investor highlights 4
Slide 5: Table of contents
Table of contents 1. 2. 3. 4. 5. 5
Slide 6: Educational Assessments business
Educational Assessments business 6
Slide 7: Business highlights
Business highlights 7 1 “ICAS” = International Competitions and Assessments for Schools
Slide 8: Revenue overview
Revenue overview Total Revenue by Segment Assessment Revenue by Product Assessment Revenue by Geography Services $7.6M Revenue 17% $12.0m HK 9% 2019 IND MY SG 4% Assessment 2% 2% Revenue 83% $1.9M $0.0M $0.1M 71% NZ 9% = product sold region1 = contracted / pending region Product Suite % of EA assess
Slide 9: Products and services overview
Products and services overview Services 9
Slide 10: Key personnel
Key personnel EA Organisational Structure EA Staff Count by Function Group Executive (Janison) Group Exec 1 Assessment Solutions 3 Assessment Projects & Janison Shared Sales Item Development Test Development Projects & Solutions Operations Services Ops 10 Sales 6 3 staff 6 staff 9 staff 8 staff 10 s
Slide 11: Customers
Customers 11 1 Since 2017 EA has delivered tests to a total of 4,614 Australian schools. There are 9,477 schools registered in Australia in 2018, source: Australian Bureau of Statistics
Slide 12: Strategic rationale
Strategic rationale 12
Slide 13: Context
13 Now is the perfect time f janison to acqui Until 2019, assessments revenue was consistent around ~$12m for the past 6-7 years with all tests delivered on paper. In 2019, EA transitioned ICAS to online and created a new product (REACH), both with insufficient school and parent communication, and i
Slide 14: Strategic rationale
Strategic rationale This acquisition will generate significant value for Janison by increasing revenue and enabling scalability 1 2 3 Engine for profitable and sustainable growth over the next five years 14
Slide 15: Synergies
15 Synergies Highly synergistic. Complimentary assets and capabilities together produce revenue uplift. Brings together a globally best-of-breed assessment platform with globally best-of-breed assessment content. Janison remote proctoring functionality can be used to support home delivery of EA test
Slide 16: Integration
Integration 16
Slide 17: The integration
The integration • Janison has invested in a new Group Executive (Amy Barouch) - a dedicated and proven leader to grow and successfully integrate EA into the group • New Project Manager - dedicated to managing the technology, process and data integration • All supported by top-tier Janison leadership
Slide 18: Key people
18 We are investing in talent dedicated to leading, growing and successfully integrating the EA business into Janison. They will be supported by a top tier Janison leadership team. hed Amy Barouch Group Executive, Educational Assessments David Caspari CEO Project Manager, Business Integration & Tran
Slide 19: Functional integration
Functional integration We are have a workplan for the functional integration required from Day 1 25% 50% 75% 100% Functions Day 1 Degree of integration Day 2 Integration plan • Retain Brand • ICAS 2020 campaign Sales & Marketing • Leverage CRM and Parent Payment Portal • Sales optimisation • System
Slide 20: Financials
Financials 20
Slide 21: Trading
Trading 2016-2018 Assessments Revenue & Gross Profit % • Consistent Assessment Revenue of ~$12m through calendars 2016 to 2018, largely from a paper delivery of the ICAS assessment. Revenue ($m) GM% • Robust gross profit despite higher cost of sales associated with printing, postage, logistics. 65.0
Slide 22: FY19 pro-forma pre-synergy financials
FY19 pro-forma pre-synergy financials A$ millions Janison UNSW Global Consolidated Cost Pro Forma (unless otherwise stated) EA1 Synergies Consolidated Recurring Assessment 5.8 10.0 15.8 -- 15.8 Revenue Recurring Learning Revenue 5.7 -- 5.7 -- 5.7 Services Revenue 11.0 2.0 13.0 -- 13.0 Total Revenue
Slide 23: Services revenue
Services revenue Service revenue ($m) Comments 1 Test scanning for 3rd parties (e.g. UNSW, 2.7 University of Wollongong, University of Sydney, Macquarie University) 0.5 2.3 2.2 2 Contracts with ACARA to develop national 0.1 2.0 0.5 1.9 standardised assessments for NAPLAN 0.6 0.0 0.5 5 0.5 3 Other va
Slide 24: COVID-19 impact in 2020
COVID-19 impact in 2020 24 1 “ICAS” = International Competitions and Assessments for Schools
Slide 25: Key Risks
Key Risks 25
Slide 26: Key risks and mitigation strategies
Key risks and mitigation strategies Key Risk Implication Mitigation Strategy Secondary COVID-19 outbreak ICAS needs to be delivered • No paper delivery of ICAS in 2020, with proactive support of schools who used closes schools again at home paper version of ICAS in 2019 • Establish parent as invigil
Slide 27: Thank you
Thank you For more information, contact Investor Relations at IR@janison.com
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