Slide 1: Annual Results Presentation
Annual Results Presentation 12 & 13 March 2018
Slide 2: Creating a Multiversity
CREATING A MULTIVERSITY
Slide 3: Global Industry Trends
3 GLOBAL INDUSTRY TRENDS GLOBALLY The number of students enrolled 99,7 MILLION at higher education institutions more than doubled between 2000 and 2015 213,7 MILLION Source: UNESCO 2015
Slide 4: SA: Growth in Student Enrolments
4 SA: GROWTH IN STUDENT ENROLMENTS Increased demand for higher education with the number of students enrolled in higher education from 2000 to 2015 more than doubling 557 000 1 132 422 103%
Slide 5: Reasons for Growth
5 REASONS FOR GROWTH Growing population Increasing number of school leavers WHY? qualifying to participate in post-school education Increase in GTER* of students (typically aged 18-24 years) attending higher education institutions Global average ~ 34% (2014) * GTER – Gross Tertiary Enrolment Rate (d
Slide 6: SA: Total Higher Education Market
6 SA: TOTAL HIGHER EDUCATION MARKET 985 212 STUDENTS AT 26 PUBLIC higher education institutions 147 210 STUDENTS 1 132 422 AT 124 STUDENTS PRIVATE higher education ENROLLED institutions Source: DHET 2017
Slide 7: SA & Global: Private Participation
7 SA & GLOBAL: PRIVATE PARTICIPATION SA students % of students at private higher education institutions 147 210 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 13% SA (2015) 31% OECD (2013) 71% BRAZIL (2012) 84% CHILE (2013)
Slide 8: SA: Growth in Student Enrolments
8 SA: GROWTH IN STUDENT ENROLMENTS First-time student enrolments increased by 75% at PUBLIC higher institutions (the bulk of the growth arising from UNISA) 98 095 171 930
Slide 9: Growth: Increase in School Leavers
9 GROWTH: INCREASE IN SCHOOL LEAVERS Number of school leavers in SA qualifying for post-school education vs first year enrolments in public institutions 442 672 +32% 334 718 164 518 171 930 This shortfall is compounded annually 2009 2009 2016 2015 Qualifying school leavers First year enrolments (Pub
Slide 10: Main Challenges in SA Higher Education
10 MAIN CHALLENGES IN SA HIGHER EDUCATION Future growth of student enrolments in South African public universities is constrained by: The enrolment cap that is applied to public higher education institutions by the DHET This cap dictates the maximum number of students that may be admitted annually t
Slide 11: Opportunity in SA in 2030
11 OPPORTUNITY IN SA IN 2030 The National Development Plan (NDP) has set a target to increase higher education participation to: 1.6 million = 1.6 MILLION
Slide 12: Opportunity in SA in 2030
12 OPPORTUNITY IN SA IN 2030 The National Development Plan (NDP) has set a target to increase higher education participation to: 1.6 million However, with the global Gross Tertiary Enrolment Rate (GTER) at 34% in 2014, we estimate the number of participants should increase to 2 million students to k
Slide 13: Business Rationale of STADIO
13 BUSINESS RATIONALE OF STADIO The current unemployment rate in South Africa remains critically high at 27.7% Education and training remains vitally important to reduce unemployment and promote economic growth Research further indicates that in South Africa, the graduate unemployment rate is at abo
Slide 14: Creating a Multiversity
4 CREATING A MULTIVERSITY STADIO OQ, multive rsity multiversity /malti va:siti/ noun: multiversity; plural noun: multiversities a large and diverse institution of higher learning created to educate for life and for a profession and to grant degrees
Slide 15: Creating a Multiversity
15 CREATING A MULTIVERSITY As a “MULTIVERSITY”, STADIO will own various higher education institutions, which will retain their own brands, campuses and management teams, but will share a common ethos and benefit from the synergies, infrastructure and shared services arising from the STADIO structure
Slide 16: Our Purpose
16 OUR PURPOSE “Empowering the nation by widening access to higher education for all qualifying school leavers and other adults”
Slide 17: Creating a Multiversity: Schools
17 CREATING A MULTIVERSITY School of School of School of School of School of School of School of Natural Agriculture School of Health & School of Architecture School of Law, Security Education Business & Engineering & Information Creative & Life & Nature Medical & The Built & Political & Training Co
Slide 18: Our Qualifications
18 OUR QUALIFICATIONS STADIO | HC in Porolegol Studies (DE) hac in Pre-School Education (ce | HC in Pre-School Education (DE) “HC in Investment Administration HC in Financial Planning Diploma in Pre-School & Foundation Phase Teacher Assistant Diploma in Grade R Teaching (CE) B Policing Practice B.Ed
Slide 19: Same Regulator Accredits Public and Private Qualifications
THE SAME REGULATOR ACCREDITS QUALIFICATIONS OF BOTH PUBLIC AND PRIVATE INSTITUTIONS
Slide 20: Group Organogram at December 2017
20 GROUP ORGANOGRAM AT 31 DECEMBER 2017 100% 74% 100% 7% 74% 5 CAMPUSES 3 • Johannesburg CAMPUSES 1 • Cape Town CAMPUS • Musgrave (KZN) • Durban • Waterfall (Midrand) • Krugersdorp • Port Elizabeth • Montana (Pretoria) • Windhoek (support office) • Gaborone
Slide 21: Audited 2017 Results vs PLS
21 AUDITED 2017 RESULTS VS PLS
Slide 22: Audited 2017 Results vs PLS Forecast - Key Assumptions
22 AUDITED 2017 RESULTS VS PLS FORECAST - KEY ASSUMPTIONS KEY ASSUMPTIONS AS PER PLS (2017F) ACTUALS (2017A) • SBS effective 1 October 2017 • SBS effective 8 November 2017 (still subject to Namibian Competition (due to delay in regulatory and other approvals) Commission approval) • EBITDA losses on
Slide 23: Key Balance Sheet Metrics - 2017
23 KEY BALANCE SHEET METRICS - 2017
Slide 24: Cash to be Utilised in 2018
24 CASH TO BE UTILISED IN 2018 Available for further acquisitions and/or organic expansion opportunities
Slide 25: 2018 Organogram: Post Conclusion of Acquisitions
25 2018 ORGANOGRAM: POST CONCLUSION OF ACQUISITIONS 100% 70% 100% 74% 100% 74% 13 • JHB • CPT • KZN • PE • Windhoek • Gaborone CAMPUSES
Slide 26: 2018 - New Acquisitions
ron 2 2018 - NEW ACQUISITIONS STADIO ~15 000 Students Entered into agreement to acquire 70% of MBS (Milpark holding reaskaay es (30% to be acquired by Brimstone Investment Corporation) Transaction subject to Excon approval Primarily a distance learning provider with key commerce, business and financ
Slide 27: STADIO - Current Business (incl New Acquisitions)
27 STADIO – CURRENT BUSINESS (INCL NEW ACQUISITIONS) ** Not constrained by physical infrastructure – distance learning opportunities are scalable businesses with limited investment in infrastructure
Slide 28: Prospects
28 PROSPECTS Growing student numbers over contact & distance learning modes of delivery: PLS AIM (2026)* VISION (long term) @ 100 000 - STADIO will 12 976 STUDENTS 35 000 STUDENTS 56 000 STUDENTS 100 000+ only be 5% of total higher STUDENTS education market PAT - R500 MILLION (Implies an organic CAG
Slide 29: Growth Strategy
29 GROWTH STRATEGY Further acquisitions - to expand product offerings
Slide 30: Growth Strategy
30 GROWTH STRATEGY Further acquisitions - to expand product offerings To optimise utilisation at STADIO’s newly constructed facilities (Musgrave, Montana and Waterfall)
Slide 31: Growth Strategy
31 GROWTH STRATEGY Further acquisitions - to expand product offerings To optimise utilisation at STADIO’s newly constructed facilities (Musgrave, Montana and Waterfall) Promoting the growth of existing brands, i.e. Embury, AFDA, SBS, Milpark and LISOF by: - Expanding distance learning offerings acro
Slide 32: Growth Strategy
32 GROWTH STRATEGY Further acquisitions - to expand product offerings To optimise utilisation at STADIO’s newly constructed facilities (Musgrave, Montana and Waterfall) Promoting the growth of existing brands, i.e. Embury, AFDA, SBS, Milpark and LISOF by: - Expanding distance learning offerings acro
Slide 33: Growth Strategy
33 GROWTH STRATEGY Further acquisitions - to expand product offerings To optimise utilisation at STADIO’s newly constructed facilities (Musgrave, Montana and Waterfall) Promoting the growth of existing brands, i.e. Embury, AFDA, SBS, Milpark and LISOF by: - Expanding distance learning offerings acro
Slide 34: Creating a Multiversity
CREATING A MULTIVERSITY