Academies Australasia Group Limited · ASX:AKG
Academies Australasia — Investor Presentation (September 2018)
18 slides from Academies Australasia's investor presentation, Sep 5, 2018
Slide 1: For personal use only
For personal use only 5.9.2018
Slide 2: Disclaimer
This presentation has been prepared by Academies Australasia Group Limited (ACN 000 003 725) (‘AKG’ or ‘the Company’). ASX Code: AKG. It contains information about AKG and its subsidiaries and is dated 5 September 2018. It is prepared for information purposes only and is not financial product or inv
Slide 3: 110-year history and key facts
For personal use only 110-year history - Established in May 1908 40 years on ASX – Since June 1977 18 separately licensed colleges - 17 in Australia, one in Singapore More than 10,000 enrolments (30 June 2018) Domestic and international students 78% of revenue comes from international st
Slide 4: Group structure and colleges
For personal use only Notes: 1. All wholly owned except for College of Sports & Fitness (67.54%), RuralBiz Training (75%) and Language Links International (75%). 2. QLD schools are trading names of Academies Australasia Hair & Beauty Pty Limited 5.9.2018 4
Slide 5: Significant footprint across the education sector
AKG has a significant footprint across the education sector with particular expertise in vocational education and training For personal use only Vocational Education Secondary Higher Education Industry and Training (VET) Post-initial Doctorate In-house training with vocational courses Master Degree
Slide 6: Colleges by state, sector and funding
State Govt VSL – For personal use only Main College Sector CRICOS Funding Approved Campus contract provider NSW Academy of English (AOE) English Yes - - NSW Australian International High School (AIHS) Senior High School Yes - - NSW Academies Australasia Institute (AAI) Vocational Yes Yes - NSW Austr
Slide 7: Board of directors and management
Dr John Lewis Schlederer Appointed in August 2009. Chairman since January 2014. Also Chairman of the Remuneration Non-Executive Director Committee. Member, Audit and Risk Committee. Chairman More than 20 years’ teaching experience at University of New South Wales and TAFE NSW and many For person
Slide 8: A. Sound growth
A. Sound growth For personal use only Revenue $m EBIT $m EBITDA $m 4.8 4.3 5.5 5.0 3.4 3.9 2.5 2.3 2.8 2.6 FY13 FY09 FY10 FY11 FY12 FY10 FY09 FY11 FY12 FY13 Earnings (cps) Dividends (cps) Cumulative Annual Growth Rate 6.8 5.0 Revenue 17% 4.0 4.0 EBIT 14% 5.4 5.3 EBITDA 14% 4.3 3.0 3.6 2.0 FY11 FY09
Slide 9: B.1. Disappointing FY15 and FY16
B.1. Disappointing FY15 and FY16 For personal use only Revenue $m EBIT $m EBITDA $m 7.5 61.1 6.5 6.6 6.4 56.8 58.3 5.8 55.0 4.9 38.0 2.0 0.5 -5.0 -3.1 FY18 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 FY18 FY15 FY14 FY16 FY17 FY18 • From 2015, the domestic market suffered from news about the abuse of the
Slide 10: B.2. Normalised for restructure and non-recurring costs
B.2. Normalised for restructure and non-recurring costs, and gain (or loss) from investment For personal use only EBITDA $m 7.0 6.2 4.5 2.0 1.6 FY16 FY14 FY15 FY17 FY18 $m FY14 FY15 FY16 FY17 FY18 Restructure and non-recurring costs 0.0 0.6 3.6 0.8 1.0 Gain(loss) from investment 2.1 0.6 -1.1 1.0 1.5
Slide 11: Borrowings and cash
For personal use only 18.00 16.00 15.50 $m 14.00 14.00 13.00 12.00 10.00 10.50 7.80 Borrowings 8.00 Cash 8.10 6.00 7.10 6.00 4.00 4.00 2.00 1.30 - FY14 FY15 FY16 FY17 FY18 5.9.2018 11
Slide 12: Best results in 110-year history
For personal use only BEST RESULTS IN 110-YEAR HISTORY! EBITDA: $7.46 million Earnings before tax: $6.12 million 5.9.2018 12
Slide 13: Dividends, shares and EPS
FY14 FY15 FY16 FY17 FY18 For personal use only Dividends (cents) b 5.5 1.5 0.0 0.5 2.5 c Total Dividend Amount ($) 3,266,000 931,000 0 634,000 3,252,000 Dividend Payout (%) 58.9 - - 20.8 73.0 Shares (end of Financial year) 56,157,234 62,063,484 75,362,979 126,754,079 131,754,079 a Contracted to be i
Slide 14: International students and revenue
For personal use only Students Revenue ($m) 8,000 50.00 47.92 7,500 7,542 45.00 7,000 +45% +46% 6,813 39.32 6,500 40.00 6,000 33.56 35.00 32.79 5,500 5,188 5,138 5,000 30.00 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 FY17 to FY18 revenue growth: AKG +22% (Sector +14%*) Notes: International students inc
Slide 15: Students by country of origin
AKG colleges have taught more than 100,000 students from 129 countries For personal use only Other Australia 21% 23% Italy 2% Sri Lanka 2% Thailand 2% India Colombia 13% 5% China 6% Vietnam Brazil 7% 10% Nepal 9% Notes: a. Australia percentage includes Australian permanent residents. Current student
Slide 16: Enrolments by course type
For personal use only 30 June 30 June 2013 2018 Higher Education a 879 1,582 Vocational b 3,597 7,098 English c 1,233 1,432 Other d 254 205 Total e 5,963 10,317 Notes: a. In the Higher Education row, AAPoly had 1 degree at 30 June 2013, 2 degrees at 30 June 2018. All other degrees are taught by AAPo
Slide 17: Focus for FY19 and FY20
For personal use only Focus for FY19 and FY20: Further growth of international operations Further improving financial discipline and implementing cost savings initiatives Paying off existing borrowings No immediate plans to pursue any acquisitions Intention to adopt dividend payout ratio of 75
Slide 18: Glossary of abbreviations
AAC Academies Australasia College Pte. Limited DE Discover English Pty Limited AAHB Academies Australasia Hair & Beauty Pty Limited Directors Board of Directors of AKG For personal use only AAI Academies Australasia Institute Pty Limited EBITDA Earnings before interest, taxation, depreciation and AA
Academies Australasia Group — Investor Presentation (September 2018) on 6ix