Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — Shareholder Meeting (June 2022)
48 slides from Stadio Holdings Pty's shareholder meeting presentation, Jun 22, 2022
Slide 1: 2022 Annual General Meeting
2022 Annual General Meeting 22 June 2022
Slide 2: Three Distinct Private Higher Education Institutions
. . . THREE DISTINCT PRIVATE HIGHER EDUCATION INSTITUTIONS
Slide 3: Our Vision and Purpose
3 OUR VISION: To be a leading Higher OUR PURPOSE: Education provider, offering qualifications To empower aligned with the needs of the nation by widening societies, students and the access to world of work higher education
Slide 4: Presentation Overview
44 PRESENTATION OVERVIEW 1 Constitution of the meeting 6 Transformation, social and ethics feedback 2 statements Presentation of the annual financial 7 Questions and answers 3 Ordinary resolutions 8 Voting closes 4 Special resolutions 9 Results of the annual general meeting 5 CEO’s feedback 10 Closu
Slide 5: Constitution of the Meeting
5 CONSTITUTION OF THE MEETING • Our scrutineers, Computershare, confirm a quorum is present and the meeting is properly constituted.
Slide 6: Presentation of Annual Financial Statements
6 PRESENTATION OF ANNUAL FINANCIAL STATEMENTS • 14 March 2022: Annual financial statements for the year ended 31 December 2021 were published • 29 April 2022: Annual integrated report for the year ended 31 December 2021 was published • 29 April 2022: Distributed the Notice of AGM to shareholders inc
Slide 7: Ordinary Resolutions
7 ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 1 To re-elect Dr TV Maphai as an independent non-executive director ORDINARY RESOLUTION NO. 2 To re-elect Ms MG Mokoka as an independent non-executive director ORDINARY RESOLUTION NO. 3 To re-elect Mr PN de Waal as a non-executive director
Slide 8: Ordinary Resolutions
8 ORDINARY RESOLUTIONS 5 To re-appoint Ms MG Mokoka as a ORDINARY RESOLUTION NO. 4 member and chairperson of the Audit and Risk Committee of the Company 56 To re-appoint Dr CB Vilakazi as a ORDINARY RESOLUTION NO. member of the Audit and Risk Committee of the Company ORDINARY RESOLUTION NO. 7 65 To
Slide 9: Ordinary Resolutions
9 ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 85 General authority to issue ordinary shares for cash Non-binding endorsement of ORDINARY RESOLUTION NO. 95 STADIO Holdings’ Remuneration Policy Non-binding endorsement of ORDINARY RESOLUTION NO. 5 10 STADIO Holdings’ Implementation Report on the Remun
Slide 10: Special Resolutions
10 SPECIAL RESOLUTIONS SPECIAL RESOLUTION NO. 1 Remuneration of chairperson of the Board SPECIAL RESOLUTION NO. 2 Remuneration of members of the Board SPECIAL RESOLUTION NO. 3 Remuneration of chairperson of the Audit and Risk Committee SPECIAL RESOLUTION NO. 4 Remuneration of members of the Audit an
Slide 11: Special Resolutions
11 SPECIAL RESOLUTIONS SPECIAL RESOLUTION NO. 5 Remuneration of chairpersons of the Remuneration and Nominations Committee SPECIAL RESOLUTION NO. 6 Remuneration of members of the Remuneration and Nominations Committee SPECIAL RESOLUTION NO. 7 Remuneration of chairperson of the Transformation, Social
Slide 12: Special Resolutions
12 SPECIAL RESOLUTIONS SPECIAL RESOLUTION NO. 9 General authority to provide inter- company financial assistance General authority to provide financial assistance for the subscription for SPECIAL RESOLUTION NO. 10 and/or the acquisition of shares in the Company or a related or inter-related company
Slide 13: CEO's Feedback
CEO’S FEEDBACK Mr Chris Vorster, Chief Executive Officer
Slide 14: CEO's Overview
14 CEO’S OVERVIEW 1 Implementation of strategy 6 Why are we excited? 2 2021 financial highlights 7 2022 semester 1 student update 3 Maiden dividend 8 Other 2022 areas of note 4 2021 academic achievements 9 Conclusion 5 Size of the market “An investment in knowledge pays the best interest.” - Benjami
Slide 15: Our Strategy Is Underpinned by Our WWS
1515 OUR STRATEGY IS UNDERPINNED BY OUR WWS 1. WIDENING ACCESS 2. WORLD OF WORK 3. STUDENT CENTREDNESS Operational Excellence , Product Leadership, Customer Intimacy
Slide 16: Successfully Executed Our Strategy to Date
16 SUCCESSFULLY EXECUTED OUR STRATEGY TO DATE CONSOLIDATION PHASE YEAR OF • Launch of STADIO Higher Education ESTABLISHMENT – first comprehensive institution – multiple schools and offerings 2016 2020 • Group owns 3 distinct private higher education 2022 institutions – unique offerings • Acquired 7
Slide 17: We've Entered the Growth Phase
17 WE’VE ENTERED THE GROWTH PHASE • STADIO Centurion campus opens – first comprehensive campus – multiple-schools – equivalent to university campuses • Successful accreditation of new programmes, including accreditation of existing programmes to new sites of delivery – evidenced through good new stu
Slide 18: 3 Distinct Institutions – Differing Strategies
18 3 DISTINCT INSTITUTIONS – DIFFERING STRATEGIES HIGHER EDUCATION Operational Excellence - Product leadership – Product leadership – “providing customers with reliable products “offering customers leading-edge products “offering customers leading-edge products or services at competitive prices and
Slide 19: We Have a Far-Reaching Footprint
ONGWEDIVA (NAMIBIA) Distance Learning Campus WE HAVE A FAR- WINDHOEK (NAMIBIA) REACHING Distance Learning Campus HATFIELD (PTA) CENTURION (PTA) FOOTPRINT KRUGERSDORP (JHB) Distance Learning Campus WATERFALL (MIDRAND) RANDBURG (JHB) AUCKLAND PARK (JHB) DURBAN NORTH (DBN) MUSGRAVE (DBN) AFDA Milpark E
Slide 20: A Vast Range of Offerings in Our Schools
WITH A VAST RANGE OF OFFERINGS IN OUR SCHOOLS OF SCHOOL OF SCHOOLS OF FILM, SCHOOL OF SCHOOLS OF LAW BUSINESS BUSINESS, EDUCATION MEDIA DESIGN, INFORMATION & POLICING SCHOOL COMMERCE & ARCHITECTURE & TECHNOLOGY MANAGEMENT SPATIAL DESIGN, & FASHION STADIO HIGHER STADIO HIGHER STADIO HIGHER STADIO HIG
Slide 21: One of the Top 10 Largest Higher Education Providers
The STADIO Group is one of the TOP 10 largest higher education providers in South Africa with over 38 000 students in South Africa & throughout Africa STADIO, Milpark Education and AFDA are registered with the Department of Higher Education and Training as separate private higher education instituti
Slide 22: 2021 Financial Highlights
22 2021 FINANCIAL HIGHLIGHTS – DEC 2020 TO DEC 2021 STUDENT NUMBERS +9% 35 031 (2020) to 38 262 (2021) Notes REVENUE +18% * Adjusted EBITDA is Earnings R933m (2020) to R1.1bn (2021) before interest, taxation, depreciation, and amortisation adjusted for the once-off CA Connect ADJUSTED EBITDA* +23% f
Slide 23: Consistent Growth Over First 6 Years
23 CONSISTENT GROWTH OVER FIRST 6 YEARS FINANCIAL OVERVIEW
Slide 24: Solid Balance Sheet
24 24 SOLID BALANCE SHEET 2021 IMPACTED BY: • Invested R181m on capital expenditure • Impairments of R30m • Acquisitions of R10m LIMITED • Settled R68m of consideration GEARING – liability R200 million debt facility • Deemed equity settlement of available R100m of CAC transaction • R15m debt drawn d
Slide 25: 4.7cps Maiden Dividend
Notes: • Final 2021 dividend declared • Return excess cash to shareholders having considered 4.7cps future expected growth projects MAIDEN DIVIDEND DECLARED GROWTH PROJECTS SHAREHOLDER RETURNS QUALITY OFFERING
Slide 26: Academic Achievements
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Slide 27: 2021 Academic Achievements
2021 ACADEMIC ACHIEVEMENTS • Overall module success rates – 81.6% • Overall module drop-out rates – 6.8% • 8 705 students graduated • Milpark student achieved top spot in SAICA ITC Board exam • Fellow of STADIO award introduced • Dr Mathews Phosa • Theo Ngobeni (CEO Mr Slimfit) • 49 research outputs
Slide 28: Programme Growth Strategy
PROGRAMME GROWTH STRATEGY Same regulations as universities CHE SAQA DHET Popular in-demand Regulatory process is a barrier to entry programmes • New programmes developed in both modes (contact learning and distance learning) • New programmes offered on new sites including programmes in: School of
Slide 29: The Market Is Big and Needs Private Higher Education
29 THE MARKET IS BIG AND NEEDS PRIVATE HIGHER EDUCATION OUR UNIVERSITIES HAVE CAPACITY CONSTRAINTS 1 313 839 136% Total students (1) Do not access higher education 557 000 2019 Total students 409 906 Accepted into 1st year at publics Grade 12s qualified 49% 51% for university in 2020 2000 2020 200 3
Slide 30: Why Are We Excited?
WHY ARE WE EXCITED? CURRENT HIGH COMPREHENSIVE LIFELONG IN-DEMAND NEW PRODUCT DISTANCE WELL LEARNING ORGANIC PROGRAMMES ON EXISITING LEARNING PRICED PARTNER GROWTH COMING SITES OFFERING • Good management and • Wide range of programmes • Students return for postgrad • 33 pipeline • Optimisation of •
Slide 31: Semester 1 Student Number Update
2022 SEMESTER 1 STUDENT NUMBER UPDATE
Slide 32: Student Growth to 2026 Target
12 976 38 414 100 000+ STUDENTS STUDENTS STUDENTS JAN OCT JUNE MAY IN THE 2017 2017 2021 2022 2026* FUTURE 840 34 494 56 000 STUDENTS STUDENTS STUDENTS * * As disclosed in the Pre-listing Statement TARGET: 80% DISTANCE LEARNING 20% CONTACT LEARNING
Slide 33: 8% Annual Growth Required to Reach 2026 Target
33 8% ANNUAL GROWTH REQUIRED TO REACH 2026 TARGET 8% ANNUAL GROWTH REQUIRED 38 262 56 000 students students Dec 2021 2026
Slide 34: Update on Semester 1 Student Numbers
UPDATE ON SEMESTER 1 STUDENT NUMBERS DISTANCE LEARNING CONTACT LEARNING 15% 40,000 10,000 -4% 35,000 32,741 30,000 8,000 24,784 28 573 6,081 6,269 5,921 25,000 20,932 22,199 5,402 5,673 18,997 6,000 4,755 20,000 15,000 4,000 10,000 2,000 5,000 0 0 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 31-May-22 Jun-17
Slide 35: Biggest Contributors to Growth
BIGGEST CONTRIBUTORS TO GROWTH The biggest contributors to growth in distance learning: • STADIO Higher Education grew DL numbers by 18% • STADIO School of Education DL grew by 35% • Milpark’s CA Connect business grew by 43% The biggest contributors to growth in contact learning: • Positive new stud
Slide 36: New Student Growth Is Exciting
36 36 NEW STUDENT GROWTH IS EXCITING NEW STUDENTS Year-on-year MODE change % JUN 2021 1731 JUN 2022 MAY22 CONTACT LEARNING 2 137 2 355 +2% 16% DISTANCE LEARNING 9 331 11 137 +19% TOTAL 11 648 13 492 +16% New students GROWTH STRATEGY ILLUSTRATED IN BELOW: JUN 21 31 MAY22 6% AFDA new students GOOD PIP
Slide 37: Contact Learning Showing Positive Signs
37 CONTACT LEARNING SHOWING POSITIVE SIGNS 1. COVID-19 impacted contact learning over the last few years – impacting roll- Good new student intake over students 2. Milpark Education change in strategy - no longer offering CL – focused on online distance learning 3. AFDA – high fee product with pleas
Slide 38: Distance Learning Continues to Grow
38 DISTANCE LEARNING CONTINUES TO GROW 1. Good overall growth 2. Distance learning is well established in the STADIO Group 3. Leader in distance learning offering using CANVAS as our virtual learning environment We want 4. Biggest distance learner provider outside of UNISA 5. Semester 2 registration
Slide 39: Other 2022 Updates
39 39 OTHER 2022 UPDATES 1. Commenced construction of Krugersdorp Distance Learning Logistics centre – enable operational excellence and scalability 2. STADIO Khulisa share scheme continues to be rolled out 3. School of IT is developing well 4. Doctoral qualifications oversubscribed with first-rate
Slide 40: I Am Excited to See How Big We Can Get
40 I AM EXCITED TO SEE HOW BIG WE CAN GET WE ARE THE EXPANSION ALTERNATIVE OF DISTANCE TO UNISA LEARNING BLENDED NEW LEARNING PROGRAMMES, TEACHING STREAMS MODEL ??? AND MODES TO BE BIGGEST HOW BIG GROWTH DISTANCE CAN WE PROGRAMME (DUE TO LEARNING 4.9% 27% S NOT YET REGULATORY PROVIDER GET DELAYS) GD
Slide 41: Transformation, Social & Ethics Feedback
TRANSFORMATION, SOCIAL & ETHICS FEEDBACK DR BUSISIWE VILAKAZI TRANSFORMATION, SOCIAL AND ETHICS COMMITTEE - CHAIRPERSON
Slide 42: Committed to Transformation
COMMITTED TO TRANSFORMATION • The Group reassessed its overall B-BBEE strategy and has started working on implementing specific projects, including a staff development plan endorsed for roll-out in 2022 • Milpark achieved a Level 2 B-BBEE rating, with the Group achieving a Level 8 B-BBEE rating. • E
Slide 43: Driving Access to Quality Education
DRIVING ACCESS TO QUALITY EDUCATION • The Group’s main aim is to “empower the nation by widening access to higher education” which speaks directly to “Quality Education” as identified by the Sustainable Developmental Goals • The STADIO Kusasa Foundation (Group’s bursary Trust) received s18a certific
Slide 44: Embedding an Ethical and Socially Aware Culture
EMBEDDING AN ETHICAL AND SOCIALLY AWARE CULTURE • The Board is responsible for promoting an ethical culture within the Group and this is supported by the Transformation, Social and Ethics Committee • Ethics are embedded in the STADIO Ethics Pledge and code of conduct which applies to all employees,
Slide 45: Q & A
Notes: Q&A • Shareholders may ask questions by selecting the Q & A icon in the platform ? and typing your questions into the text box at the bottom of the screen. • Should you have any further questions or would like to arrange a meeting with the company, please contact investorrelations@stadio.co.z
Slide 46: Resolutions Results of Voting
RESOLUTIONS RESULTS OF VOTING DR VINCENT MAPHAI CHAIRPERSON
Slide 47: Thank You
47 THANK YOU ENKOSI RE A LEBOGA DANKIE
Slide 48: STADIO Holdings
STADIO HOLDINGS STADIO Ne —_—_ — EDUCATION @|EMBURY LISOF essai $3