Slide 1: ReadCloud Limited: Acquisition of College of Sound and Music Production
ReadCloud Limited Acquisition of College of Sound and Music Production - a leading Vocational Education and Training provider Investor presentation - 27 October 2020
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 information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision. This
Slide 3: Corporate Snapshot
Corporate Snapshot ASX Code: RCL, RCLO Substantial Shareholders Share Price (23 October 2020) $0.39 Thorney Group* 10.5% Market capitalisation (@ 39 cents) $39.0m Lars Lindstrom 8.5% Shares on issue (listed) 99.9m Hunmar Holdings/Darren Hunter* 7.0% Options on issue (listed) 14.8m Brindle Holdings P
Slide 4: Acquisition Overview
Acquisition Overview Agreement to acquire 100% of College of Sound and Music Production (“COSAMP”) for up to $1.45 million 1 COSAMP’s proprietary product is entirely complimentary to ReadCloud’s current VET offering Acquisition adds an additional 184 schools to ReadCloud’s current 358 secondary
Slide 5: Overview of COSAMP
Overview of COSAMP • An accredited RTO, supplying Auspicing services to schools for the delivery of Certificate II and III in Music Industry and Diploma of Music Industry courses • Produces 85 units in music performance & composition, sound engineering, use of recording software and mixing equipment
Slide 6: The Australian Vocational Education Sector
The Australian Vocational Education Sector • VET is a key component of the Australian government’s strategy to increase secondary school student retention and improve year 12 or equivalent completion rates, by providing broader options for all students • VET courses also help to address skill shorta
Slide 7: Transaction Rationale
Transaction Rationale Provides a complimentary and highly regarded proprietary VET product to 184 schools across Australia ▪ COSAMP provides music industry courses to 184 schools and is the clear market leader in this segment of the VET-in- Expands presence in the schools market VET in Schools Secto
Slide 8: Strategic Fit – Significant Cross-Selling Upside
Strategic Fit – Significant Cross-Selling Upside School Customers • The acquisition of COSAMP improves and expands Pacific Islands ReadCloud’s geographic footprint in Australia 2 • COSAMP adds 184 school relationships to ReadCloud’s 358 school customer network with only 24% cross-over 2 51 4 • Prese
Slide 9: Acquisition Terms
Acquisition Terms • ReadCloud to acquire 100% of the issued capital of PKY Media Pty Ltd trading as COSAMP • The purchase price is up to $1.45 million based on a 2 year earn-out • Acquisition will be funded by existing cash and the issue of shares, with consideration in three tranches based on perfo
Slide 10: Key Investment Highlights
Key Investment Highlights • ReadCloud is the leading digital education solution for Australian schools, delivering clear educational benefits and saving schools and students money • ReadCloud is growing rapidly with over 112,000 users in over 500 school customers with ongoing growth in market share
Slide 11: ReadCloud Limited – Lars Lindstrom
ReadCloud Limited 284 Bay Street Brighton VIC 3186 Lars Lindstrom | CEO lars@readcloud.com 11