Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — H1 2018 Earnings Presentation
48 slides from Stadio Holdings Pty's earnings presentation, Sep 3, 2018
Slide 1: Interim Results Presentation for the six months ended 30 June 2018
TADI — HOLDINGS — Interim Results Presentation for the six months ended 30 June 2018 3 & 4 September 2018
Slide 2: STADIO Multiversity
STADIO MULTIVERSITY
Slide 3: Why is there a market for STADIO in South Africa?
WHY IS THERE A MARKET FOR STADIO IN SOUTH AFRICA?
Slide 4: SA Growth in Student Enrolment
SA GROWTH IN STUDENT ENROLMENT 2000 557 000 2016 1 143 245 INCREASED DEMAND FOR HIGHER EDUCATION WITH THE NUMBER OF STUDENTS ENROLLED IN HIGHER EDUCATION FROM 2000 TO 2016. MORE THAN DOUBLING.
Slide 5: SA Total Higher Education Market
SA TOTAL HIGHER EDUCATION MARKET 15% • 167 408 123 PRIVATE 26 PUBLIC 85% • 975 837 1 143 245 STUDENTS ENROLLED AT 149 HIGHER EDUCATION INSTITUTES ACROSS SOUTH AFRICA IN 2016.
Slide 6: SA & Global Private Participation
SA & GLOBAL PRIVATE PARTICIPATION SA (2016)15% OECD (2013) 31% BRAZIL (2012) 71% CHILE (2013) 84% % OF STUDENTS AT PRIVATE HIGHER EDUCATION INSTITUTIONS.
Slide 7: SA Growth in First Year Student Enrolment at Public Universities
SA GROWTH IN FIRST YEAR STUDENT ENROLMENT AT PUBLIC UNIVERSITIES 2000 98 095 2015 171 930 2016 158 891
Slide 8: Business Rationale of STADIO
BUSINESS RATIONALE OF STADIO
Slide 9: Current Unemployment
CURRENT UNEMPLOYMENT RATE IN SOUTH AFRICA REMAINS CRITICALLY HIGH AT 27.7%
Slide 10: Research Further Indicates
RESEARCH FURTHER INDICATES THAT IN SOUTH AFRICA, THE GRADUATE UNEMPLOYMENT RATE IS AT ABOUT 5%, IMPLYING THAT A DEGREE QUALIFICATION DRAMATICALLY INCREASES THE PROBABILITY OF SECURING A JOB AND THEREFORE ECONOMIC SECURITY AND STABILITY.
Slide 11: The NDP Requires
THE NDP REQUIRES 1.6 MILLION TERTIARY STUDENTS BY 2030.
Slide 12: Looking at the Current Challenges
LOOKING AT THE CURRENT CHALLENGES IN HIGHER EDUCATION, THE TIMING IS PERFECT TO DO SOMETHING GREAT FOR SOUTH AFRICA.
Slide 13: Where Do We Go?
WHERE DO WE GO?
Slide 14: Growing Student Numbers over Contact & Distance Learning
@ 100 000 - STADIO will 12 976 35 000 56 000 100 000+ only be 5 % STUDENTS STUDENTS STUDENTS STUDENTS of total higher education market GROWING STUDENT NUMBERS OVER CONTACT & DISTANCE LEARNING
Slide 15: What Will This Look Like?
WHAT WILL THIS LOOK LIKE?
Slide 16: Faculties
Faculty of Business & Commerce Faculty of Creative Industries Faculty of Education & Training Faculty of Law, Security & Political Sciences Faculty of Information Technology Faculty of Engineering & Manufacturing Faculty of Agriculture & Nature Conservation Faculty of Architecture & the Built Enviro
Slide 17: What Are the Advantages?
WHAT ARE THE ADVANTAGES?
Slide 18: Students Can Study Wherever They Are
STUDENTS CAN STUDY WHEREVER THEY ARE.
Slide 19: Students Can Transfer
STUDENTS CAN TRANSFER EFFORTLESSLY BETWEEN PROVINCES, WHERE COURSES ARE AVAILABLE.
Slide 20: Maximum Recognition of Prior Learning
MAXIMUM RECOGNITION OF PRIOR LEARNING.
Slide 21: Easy Transfer of Credits
EASY TRANSFER OF CREDITS • BETWEEN RELATED STADIO MULTIVERSITY QUALIFICATIONS. • ACROSS GEOGRAPHICAL FOOTPRINTS. • MID-YEAR CHANGE OF STUDY PROGRAMMES. • SEAMLESS MOVEMENT BETWEEN WIDE RANGE OF STUDY CHOICES.
Slide 22: Single Information Management Platform
SINGLE INFORMATION MANAGEMENT PLATFORM AND BENEFITS OF SHARED SERVICES.
Slide 23: All Our Qualifications
ALL OUR QUALIFICATIONS CAN BE MARKETED FROM ALL OUR LOCATIONS.
Slide 24: STADIO Can Become a University
STADIO CAN BECOME A UNIVERSITY BECAUSE THE DEPTH AND SPREAD OF OUR DEGREES WILL BE SUFFICIENT.
Slide 25: Our First Doctoral Degree and qualifications by faculty
FACULTY OF BUSINESS & FACULTY OF CREATIVE INDUSTRIES FACULTY OF EDUCATION & COMMERCE Bachelor in Computer Technology TRAINING Advanced Certificate in Banking Services Bachelor of Arts (Honours) in Fashion Advanced Diploma in Physical Education and School Sports Advanced Certificate in Financial Plan
Slide 26: DNA of the STADIO Graduate
DNA OF THE STADIO GRADUATE RESPONSIBLE CITIZENSHIP – HOLISTIC DEVELOPMENT AND GLOBAL, CONTINENTAL AND 21st CENTURY SKILLS NATIONAL ARENA Every student will be exposed to an Programmes focus on developing: integrated short module to raise • Discipline-specific knowledge awareness on: • 21st century s
Slide 27: Utilisation of Assets
UTILISATION OF ASSETS
Slide 28: Our Geographic Footprint
OUR GEOGRAPHIC FOOTPRINT
Slide 29: Campuses, students and expansion opportunities
12 Campuses + 2 Support offices 4 904 CL students 22 873 DL students Potential expansion opportunities Montana site – expand to accommodate new AFDA Pretoria campus AFDA JHB & DBN – increase capacity to address demand AFDA CPT site – expand to accommodate Milpark (cancel expensive lease) STADIO cons
Slide 30: 30
30
Slide 31: Malena, STADIO
Malena, STADIO
Slide 32: Our Commitment to Transformation
OUR COMMITMENT TO TRANSFORMATION
Slide 33: Current B-BBEE Shareholding 12,7%
CURRENT B-BBEE SHAREHOLDING 12,7% Our B-BBEE Private Brimstone Placement individuals is our trusted accommodated long term 486 B-BBEE B-BBEE shareholders partner
Slide 34: Financial Highlights from June 2017 to June 2018
FINANCIAL HIGHLIGHTS FROM JUNE 2017 TO JUNE 2018 STUDENT INCOME EBITDA NUMBERS 27 777 R301m R60m 1 112 R35m (R1m) CORE HEADLINE HEPS CHEPS EARNINGS R32m 3,5 cents 4,0 cents (R3m) (0,8 cents) (0,7 cents)
Slide 35: Financial Information
FINANCIAL INFORMATION
Slide 36: Highlights for 2018
HIGHLIGHTS FOR 2018 • Opened 2 new Embury campuses • Montana (Pretoria) • Waterfall (Midrand) • Relocated existing Embury Durban Campus to Musgrave (KZN) • Acquired 100% of LISOF (1 January 2018) • Acquired 87.2% effective interest in Milpark (19 March 2018) • Acquired the business of CA Connect (th
Slide 37: 2018 Group Organogram
2018 GROUP ORGANOGRAM 100% 87.2% 100% 74% 100% 74% 12 • JHB • CPT • KZN • PE • Windhoek • CAMPUSES
Slide 38: Creating a Multiversity
CREATING A MULTIVERSITY Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Law, Security & Faculty of Faculty of Architecture & Health & Faculty of Business & Creative Education & Information Engineering & Agriculture & Natural & Life Political Nature The Built Medical Comm
Slide 39: Student Numbers
STUDENT NUMBERS CONTACT STUDENTS DISTANCE STUDENTS 9% 16% 6 000 30 000 4 904 4 904 22 873 22 873 4 237 25 000 20 936 4 000 20 000 2 913 15 000 10 063 2 000 10 000 840 5 000 0 0 20 16 20 17 JUN 2018 JUN 2017 JUN 2018 20 16 20 17 JUN 2018 JUN 2017 JUN 2018 AC TUA L AC TUA L AC TUA L PROFORMA AC TUA L
Slide 40: Student Numbers Analysis
STUDENT NUMBERS ANALYSIS STUDENT NUMBERS PROGRAMMES Current Year-on-year registered Pipeline FACULTY 30 Jun 2017 30 Jun 2018 growth rate Aug 2018* programmes programmes Business and Commerce 19 719 21 175 7% 22 424 33 11 Creative Industries 2 660 2 783 5% 2 787 15 9 Education and Training 1 112 1 71
Slide 41: Salient Financial Information
SALIENT FINANCIAL INFORMATION INCOME (Rm) BAD DEBT % EBITDA (Rm) EBITDA MARGIN % 3% 20% 400 80 R60m R301m 60 300 1.4% 40 23% 200 0,4% 1.6% R125m 1% 20 R11m R0,5m (2%) 100 R48m R35m 0 (R0,9m) 0 (20) DE C 2016 DE C 2017 JUN 2017 JUN 2018 DE C 2016 DE C 2017 JUN 2017 JUN 2018 FULL YEAR INTERIMS FULL YE
Slide 42: Salient Financial Information
SALIENT FINANCIAL INFORMATION HEADLINE EARNINGS (Rm) HEPS (CENTS) 40 5 R29m 3,5 cps 4 3 20 2 1,5 cps R7m 1 0 0 (R3m) (R7m) (1) (1,2 cps) (0,8 cps) (20) (2) DE C 2016 DE C 2017 JUN 2017 JUN 2018 DE C 2016 DE C 2017 JUN 2017 JUN 2018 FULL YEAR INTERIMS FULL YEAR INTERIMS
Slide 43: Salient Financial Information
SALIENT FINANCIAL INFORMATION CORE HEADLINE EARNINGS CHEPS (CENTS) (Rm) 40 5 R32m 4 4,0 cps 3 20 2 1,7 cps R8m R3m 1 0,6 cps 0 0 (R3m) (1) (0,7 cps) (20) (2) DE C 2016 DE C 2017 JUN 2017 JUN 2018 DE C 2016 DE C 2017 JUN 2017 JUN 2018 FULL YEAR INTERIMS FULL YEAR INTERIMS
Slide 44: Key Balance Sheet Metrics
KEY BALANCE SHEET METRICS NET ASSET VALUE NAV PER SHARE (CENTS) 2 500 197 2 000 176 SHARE CAPITAL NUMBER SHARE R1 608m MOVEMENT OF SHARES CAPITAL 1 500 R1 385m At 1 January 2018 786m R1 367m 1 000 21 Acquisitions 30m R192m 500 R84m At 30 June 2018 816m R1 559m 0 DE C 2016 DE C 2017 JUN 2018
Slide 45: Capital Invested
CAPITAL INVESTED R589m R31m R73m Dec 2016 R12m Dec 2017 R11m R417m Jun 2018 R85m R872m R454m R6m R272m Acquisitions ACQUISITIONS 2017 2018 Infrastructure development and capital assets Net assets acquired R219m R87m Programme development Goodwill R370m R330m Total R589m R417m
Slide 46: Cash Utilisation
CASH UTILISATION 2018 Cash balance at 1 January 2018 R646m Acquisition of subsidiaries (R245m) Capital expenditure and programme development (R36m) Repayment of borrowings (R159m) Net cash flow from operations R97m Cash balance at 30 June 2018 R303m
Slide 47: Thank You
THANK YOU ENKOSI RE A LEBOGA DANKIE
Slide 48: STADIO Multiversity
STADIO MULTIVERSITY