Slide 1: Strong Performance: Interim Financial Results for six months ended 30 June 2023
STRONG PERFORMANCE ADVvTECH Interim Financial Results for the six months ended 30 June 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 2: ADvTECH continues to deliver strong results
ADvTECH CONTINUES TO DELIVER STRONG RESULTS Group results ACviECH GROUP Divisional performance (year-on-year increase) 16% Revenue 23% Operating profit 24% Headline earnings per share 25% Normalised earnings per share 30.0 cents Dividend per share > rmr rm Dr Revenue + 13% ee profit + 20% Schools So
Slide 3: Continued enrolment growth
CONTINUED ENROLMENT GROWTH ACveCH GROUP Full time full qualification Vocational qualifications, short learning programmes and skills training A CAGR 6% 77 345 79550 84341 70 456 44975 45 647 SUSE) ADvTECH reaches 39629 +100 000 students across the education ial ia | _ Feb 2019 Feb 2020 Feb 2021 Feb
Slide 4: Continued enrolment growth by division
CONTINUED ENROLMENT GROWTH ACveCH GROUP Schools Schools Schools Tertiary Total Group South Africa rest of Africa division division enrolment 10) sup wll 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 88631 INTERIM FINANCIA
Slide 5: Good progress on key metrics
GOOD PROGRESS ON KEY METRICS Features contributing to our success Enrolment growth ADviceCcH GROUP Strong growth in all divisions Schools South Africa Schools rest of Africa Schools division + 6% + 10% + 7% Tertiary division + 4% Online enrolments up by 28% Operating margin improvements 9 Schools So
Slide 6: Operating environment
OPERATING ENVIRONMENT INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 7: Subdued economic environment
SUBDUED ECONOMIC ENVIRONMENT Unemployment rate Including discouraged workers 2023 current inflation rate Consumer price index (CPI) - lowest level in 2 years >urces: IMF/SARB website/African Development Bank Group said in Africa's Macroeconomic Performance and Outlook report for the regio! “Africa s
Slide 8: Financial performance
FINANCIAL PERFORMANCE The group's strong financial performance, solid cash generation and robust balance sheet are evidence of our sound business model, clear market focus and continued emphasis on effectiveness and efficiencies. INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 9: Group revenue (R'm)
GROUP REVENUE (R’M) ACvicCH GROUP Consistent growth driven by good enrolments and moderate fee increases in line with inflation —_ 3932 | No price increasedue 1 to impact of COVID-19 1 1 Ne on consumer ' ) 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 10: Group operating profit (R'm)
GROUP OPERATING PROFIT (R’M) ADvieCH Strong profit growth driven by leveraging our scale and operating efficiencies 19% CAGR [423% | 23% LLL 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 11: Group operating margin (%)
GROUP OPERATING MARGIN (%) ACvicCH Sharp focus on business efficiency, delivering consistent profit improvement Improved due to: + Operating leverage resulting from enrolment growth + Continued focus on efficiency improvements 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30
Slide 12: Divisional operating margins
DIVISIONAL OPERATING MARGINS ACvicCH Operating leverage and efficiency driven Educational business Resourcing division 205 23 18,7 N onan © 2020 2021 2022 2023 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 13: Improved operating margins (%)
IMPROVED OPERATING MARGINS (%) All businesses delivered margin improvements Educational business Schools division 2020 2021 2022 Tertiary division 2020 2021 2022 2023 2020 2021 2022 2023 2023 : ACviE —_ GROUP _ Schools South Africa 2020 2021 2022 2023 Schools rest of Africa 2020 2021 2022 2023 INTER
Slide 14: Normalised earnings per share
NORMALISED EARNINGS PER SHARE ADvieCH Consistent earnings growth demonstrates the successful execution of our strategy Cents CAGR 26% 25% 67,3 55,1 41,8 Ne ) 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 15: Normalised earnings per share - US$
NORMALISED EARNINGS PER SHARE - US$ ACvieCH Resilient dollar returns US cents CAGR 23% A8.5% eilil 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 16: Schools division
(2022: 41%) Revenue (2022: R1.4 billion) ay Schools Operating profit division All brands, including premium brands have shown growth + Continued to win market share in a tough operating environment Strong enrolment growth with commitment to quality education and efficiency gains Confidence for futur
Slide 17: School brand positioning
Progressive / Traditional / Specialised Mid-fee Early childhood Online / Modern Holistic academic development homeschooling support and assisted learning
Slide 18: Schools division
SCHOOLS DIVISION (F% enrolment growth _) ACviEeCH 7£CH Delivering sustainable long term competitive advantage balanced with improved operating efficiencies Revenue (R'm) Operating profit (R'm) Operating margin (%) cAGR IV cAGR20% is .:. iin +2) 18,1 18,9 1392 1179 1207 263 219 16,1 190 Xu Xu N 2020
Slide 19: Schools - South Africa
SCHOOLS— SOUTH AFRICA (é% enrolment growth) AL $7744 a —_ GROUP _ Enrolment growth, modest fee increases in line with CPI and improved operating efficiencies delivered good results Revenue (R'm) Operating profit (R'm) Operating margin (%) cAGRO% cAGR12% ———_—" wo —”" 19,0 18,6 1239 235 185 1072 1086
Slide 20: Schools - rest of Africa
SCHOOLS - REST OF AFRICA (0% enroiment growth ) AL 7149 a | —_ GROUP _ Double digit enrolment growth and margin expansion demonstrates successful execution of our growth strategy Revenue (R'm) Operating profit (R'm) Operating margin (%) cAGR21% cAGR 7100% —_—" ON 153 120 108 28 18,1 13,5 16 XR u NN
Slide 21: Schools enrolment movement
SCHOOLS ENROLMENT MOVEMENT ACveCH Impact of emigration 8725 errr | (3 010) alealeiaieneieiaiaiatal sialatalateietanataiaiel slatalaiaieeietaiaiatal ! I ! ! ! ! 1 Growth in matri I I | leavers reflects | | ! increase in ‘ Decrease ‘ Decrease ! ! -37%! ! -32%! ! ! ! ' ' ' I I I ! ! ! t t t b----------
Slide 22: The Bridge Assisted Learning School expansion
THE BRIDGE ASSISTED LEARNING SCHOOL EXPANSION 22 ADvicCcH GROUP + Expanded its offering to a second school in Morningside, Johannesburg + Opening in January 2024
Slide 23: Enrolments exceed expectations
ENROLMENTS EXCEED EXPECTATIONS » Pinnacle Raslouw in Centurion, opened in January 2023 - Enrolments exceeded expectations necessitating the need to bring forward phase two of the project to 2023 Enrolments ‘ase Actual year1 Actual year 1 Term1 Term 2 23
Slide 24: Gaborone International School
24 GABORONE INTERNATIONAL SCHOOL IS TRANSFORMED INTO A MEGA CAMPUS + State of the art Science and Technology centre for high school completed (projectors in every classroom, laser cutter, and 3D printers) + Sports facilities upgrade - Continues to experience strong demand owing to their market leadi
Slide 25: Crawford International School, Kenya
25 CRAWFORD INTERNATIONAL SCHOOL, KENYA ADviceCcH GROUP +» Capacity increased + Development of the next phase brought forward to meet enrolment growth
Slide 26: Schools building capacity
SCHOOLS BUILDING CAPACITY ACveCH Competitive advantage Feb 2019 Feb 2020 Feb 2021 Feb 2022 Feb 2023 (. Students enrolled (‘000) 30.8 32.4 33.9 36.8 39.3 Existing building capacity (‘000) 38.2 41.2 415 44.5 46.7 % Existing building capacity utilised 81% 79% 82% 83% 84% Ultimate capacity 54.8 56.8 56.
Slide 27: Artificial intelligence in teaching and learning
ARTIFICIAL INTELLIGENCE (Al) IN em AbwESt TEACHING AND LEARNING on — & . . & Alin schools and tertiary es ADVLEARN s ES Personalised Adaptive = Leveraging Al in teaching and learning: < © Learning Learning ~ G Personalised learning paths: é <= meeting individual student needs - B&B Chatbot Predictiv
Slide 28: Tracks student homework and usage. Provides personal learning pathways and assessments.
Tracks student homework and usage. AI utilises data to build personalised AI provides immediate dashboards assessments. with insights into teaching and Provides personal learning pathways learning habits and trends. and assessments. Provides teacher dashboard to fill gaps.
Slide 29: Data dashboards and insights
DATA DASHBOARDS AND INSIGHTS ADveclt GROUP Helping teachers find the gaps so they can fill them ADYLEARN Assessment Score Heatmap Case Study 2 - Grade 10 Science Non-critical Critical © Chapter 10- Sound and Ultrasound Chapter 16- Electrostatics O Dooeemmnnnnns ‘O Areas of concern proceseneceseeces
Slide 30: Data dashboards and insights
DATA DASHBOARDS AND INSIGHTS ADveclt GROUP Putting vital data into the hands of ADVTECH management ADYLEARN Still in research and development pocemnenene anna ‘© Student Average Nor-critical Critical Gain insights into where OQuereeeeeed EE —rc(i< all lL the gaps are across all Grade 12 Mathematical
Slide 31: Tertiary division
viECH TERTIARY DIVISION AbviECH Revenue contribution are 32 38% R1.5 billion Campuses (2022:32) (2022: 39%) (2022: R1.3 billion) + Continuing the trend of good performance . + Quality academic offering with Revenue Operating profit multi-channel modes of delivery INTERIM FINANCIAL RESULTS for the si
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Slide 33: Tertiary division
TERTIARY DIVISION GROUP Performed well and continue to grow Revenue (R'm) Operating profit (R'm) Operating margin (%) cpcne% _—— caer e— — _—— 1324 29 238 1218 1187 212 315, 280 252 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June
Slide 34: Tertiary: full qualification student enrolments
ACvicCH TERTIARY: a FULL QUALIFICATION STUDENT ENROLMENTS Expanded our academic offering A4% 47539 44975 45 647 39629 2019 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 35: Tertiary enrolments
TERTIARY ENROLMENTS IIE online distance students 2037 1586 3167 4756 3720 2019 2020 2021 2022 2023 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 36: Tertiary division / private university
TERTIARY DIVISION /‘PRIVATE UNIVERSITY’ ACvieCH Faculties = 1HETNDEPENDENT waa INSTITUTE OF (EDUCATION Faculty of Faculty of ( Faculty of Faculty of Faculty of Finance and Accounting Information and Communications Technology Social Sciences Engineering, Science and INTERIM FINANCIAL RESULTS for the
Slide 37: Multi-channel modes of delivery
Multi-channel modes of delivery available any time & at any place • • • • • • • • • • • • • • • •
Slide 38: Qualification pipeline
QUALIFICATION PIPELINE ACvicCH 233 registered and accredited qualifications 7 Faculties Finance and Commerce Information and Humanities and Engineering, Education Accounting Communications Social Sciences Science and Health Technology «, t a Fle N r 233 ; 3 oe | Accredited 26 BS 8 id os cs ° o Progr
Slide 39: Rosebank College - Mbombela
ROSEBANK COLLEGE - MBOMBELA MERBEE WE ROSEBANK COLLEGE + Digitally enabled campus, in a provincial node + Intention to open in January 2024, pending Council of Higher Education (CHE) site accreditation 39 ERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 40: Resourcing division revenue contribution
Revenue contribution 21% RO.8 billion (2022: 20%) (2022: RO.7 billion) + Strong overall performance : 0 lead by outstanding performance in the rest of Revenue Operating profit Africa +» Strategy to expand into the rest of Africa delivers good results + Increased market share in the rest of Africa +
Slide 41: Resourcing division
RESOURCING DIVISION ACveCH GROUP Continuing operations grow by 6% and accelerated growth in rest of Africa Disposal of Contract Accountants during H2 '22 impacting results Revenue (R'm) Operating profit (R'm) Operating margin (%) cncn22% _— enon 158% _— _—— _—_— 837 652 464 5,2 438 3,6 16 ae u J \2
Slide 42: Resourcing South Africa
RESOURCING SOUTH AFRICA ACviEeCH 7eCH Disposal of Contract Accountants during H2 '22 impacting results Revenue (R'm) Operating profit (R'm) Operating margin (%) | Invested in establishing a presence | |__ inthe skilled contractor market _| 113 99 (8) (8) 2020 2021 2022 2023 2020 2021 2022 2023 2020
Slide 43: Resourcing rest of Africa
RESOURCING REST OF AFRICA Pivot to rest of Africa demonstrates our ability to successfully execute outside SA Revenue (R’m) Operating profit (R’m) caGR25% — CAGR 60% —? — — 536 29 365 324 " 12 2020 2021 2022 2023 2020 2021 2022 2023 Operating margin (%) 5,4 3,7 3,0 2020 2021 2022 2023 INTERIM FINANC
Slide 44: Sound balance sheet
SOUND INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 45: Debtors breakdown
DEBTORS BREAKDOWN R'm 30 June 2023 Group total] Schools | Tertiary {Resourcing Trade receivables Loss allowance Coverage of debtors' balance Credit losses Credit losses as % of revenue Group total | Schools} Tertiary |Resourci 906.1 166.7 694.2 45.2 752,4 131.6 573.0 478 (548.6) (86.2) (460.3) (2.1)
Slide 46: Debtors breakdown
DEBTORS BREAKDOWN ACveCH Normalisation of tertiary division trade receivables Tertiary as at 31 December 2022 R‘m Trade receivables 669.5 Loss allowance (380.2) 289.3 Collections to 30 June 2023 281.0 Net debtors remaining 8.3 INTERIM FINANCIAL RESULTS for the six months ended 30 June 2023
Slide 47: Cash flow generation from operations
CASH FLOW GENERATION FROM OPERATIONS ACvieECcH Demonstrates the inherent cash generating ability of our business 15% E a 798 L aH aes 672 2019 2020 2021 2022 2023 Cash generated from operations = Cash from operations (after working capital) INTERIM FINANCIAL RESULTS for the six months ended 30 June
Slide 48: Cash vs net borrowings
CASH VS NET BORROWINGS Strong cash generation, sound balance sheet and reduced borrowings XK Ratio = 188 1749 1268 1414 999 en (442) Covenants net borrowings: EBITDA Banks: 3.25x Internal: 2,75x . 2019 2020 2021 2022 2023 Net borrowing to Actual: 1,0x 1.8 14 0.8 0.4 0.2 cash generation Cash generate
Slide 49: Acquisitions and openings
Acquired: Acquired: Acquired: Opened: Opened: Opened: Opened: Summit College Glenwood Makini schools The Bridge Assisted Trinityhouse Evolve Online Pinnacle College (Rebranded Pinnacle House Learning School Glenvista School Raslouw College Kyalami) Greenwood Bay Opened: Opened: College Crawford Pinn
Slide 50: Capex
CAPEX ACvieCH GROUP Capex expected between R650 - R750 million os oe os Capex Projects . os oe os os os | 270.3 123,2 co 5,4 as a 1 new school site Student management and finance systems Additions to existing sites Furniture, Fittings, IT and vehicles INTERIM FINANCIAL RESULTS for the six months end
Slide 51: Inherent underlying demand for quality education
Inherent underlying demand for quality education + SAdriven by poor public offerings + Africa: attractive growth prospects eC = uality asset base Well established brand portfolio Significant free cash generation Sound balance sheet Good financial controls INTERIM FINANCIAL RESULTS for the six months
Slide 52: Investment case
INVESTMENT CASE Sound operational base Uniquely positioned with real competitive advantage Resourced with capable competent expertise Built a coherent brand strategy in both schools and tertiary divisions Improved structures, systems and processes INTERIM FINANCIAL RESULTS for the six months ended 3
Slide 53: Delivering superior shareholder returns
DELIVERING SUPERIOR SHAREHOLDER RETURNS ACvieECcH Strong cash generation and sound balance sheet * Confidence in the robustness and sustainability of our * Current performance makes the dividend prudent a 30.00 cents per share * Dividend 430% from comparative period INTERIM FINANCIAL RESULTS for the
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