Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — Shareholder Meeting (June 2024)
38 slides from Stadio Holdings Pty's shareholder meeting presentation, Jun 19, 2024
Slide 1: 2024 Annual General Meeting
2024 Annual General Meeting 19 June 2024 1
Slide 2: Chairperson's Welcome
Dr Vincent Maphai Board chairperson CHAIRPERSON’S WELCOME 22
Slide 3: Presentation Overview
PRESENTATION OVERVIEW 1 CONSTITUTION OF THE MEETING 4 CEO’S FEEDBACK 7 VOTING CLOSES 2 PRESENTATION OF THE ANNUAL FINANCIAL 5 TRANSFORMATION, SOCIAL AND ETHICS 8 RESULTS OF THE ANNUAL GENERAL STATEMENTS FEEDBACK MEETING 3 ORDINARY AND SPECIAL RESOLUTIONS 6 QUESTIONS AND ANSWERS 9 CLOSURE 33
Slide 4: Constitution of the Meeting
CONSTITUTION OF THE MEETING • Our scrutineers, Computershare, confirm a quorum is present and the meeting is properly constituted. 4
Slide 5: Presentation of Annual Financial Statements
PRESENTATION OF ANNUAL FINANCIAL STATEMENTS • 18 March 2024: Annual financial statements for the year ended 31 December 2023 were published • 30 April 2024: Annual integrated report for the year ended 31 December 2023 was published • 30 April 2024: Distributed the Notice of AGM to shareholders inclu
Slide 6: Ordinary Resolutions
ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 1 To confirm Ishak Kula as an executive director ORDINARY RESOLUTION NO. 2 To re-elect Dr Chris van der Merwe as a non-executive director ORDINARY RESOLUTION NO. 3 To re-elect Mr Nico de Waal as a non-executive director ORDINARY RESOLUTION NO. 4 To re-app
Slide 7: Ordinary Resolutions
ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 5 To re-appoint Dr Busisiwe Vilakazi as a member of the Audit and Risk Committee of the Company ORDINARY RESOLUTION NO. 66 To re-appoint Dr Tom Brown as a member of the Audit and Risk Committee of the Company ORDINARY RESOLUTION NO. 77 ToPricewaterhouseCo
Slide 8: Ordinary Resolutions
ORDINARY RESOLUTIONS ORDINARY RESOLUTION NO. 8 General authority to issue ordinary shares for cash - Following discussions with shareholders since issuing the Notice of AGM, the Board has decided to withdraw this resolution, noting it is not the Company’s intention to issue shares for cash ORDINARY
Slide 9: Special Resolutions
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 and R
Slide 10: Special Resolutions
SPECIAL RESOLUTIONS Remuneration of chairpersons of SPECIAL RESOLUTION NO. 5 the Remuneration and Nominations Committee Remuneration of members of the SPECIAL RESOLUTION NO. 6 Remuneration and Nominations Committee Remuneration of chairperson of the SPECIAL RESOLUTION NO. 7 Transformation, Social an
Slide 11: Special Resolutions
SPECIAL RESOLUTIONS SPECIAL RESOLUTION NO. 9 General authority to provide inter- company financial assistance SPECIAL RESOLUTION NO. 10 General authority to provide financial assistance for the subscription for and/or the acquisition of shares in the Company or a related or inter-related company SPE
Slide 12: CEO's Feedback: Our Growth Strategy
CEO’S FEEDBACK OUR GROWTH STRATEGY 12
Slide 13: Our Purpose Is to Empower the Nation by Widening Access to Quality Higher Education
OUR PURPOSE IS TO EMPOWER THE NATION BY WIDENING ACCESS TO QUALITY HIGHER EDUCATION THROUGH OUR 3 DISTINCT PRIVATE HIGHER EDUCATION INSTITUTIONS 13
Slide 14: Our Strategy Is Underpinned by Our WWS
OUR STRATEGY IS UNDERPINNED BY OUR WWS a WIDENING WORLD ACCESS OF WORK STUDENT CENTREDNESS >> Operational Excellence >> Product Leadership >> Customer Intimacy STADIO
Slide 15: 2023 Financial Performance
15 2023 FINANCIAL PERFORMANCE We’re building trust by delivering year-on-year, creating value for all our stakeholders 15
Slide 16: Financial Performance
FINANCIAL PERFORMANCE STUDENTS SEMESTER 2 REVENUE (R million) 10% 16% 2023 46,508 2023 1,414 2022 42,463 2022 1,214 2021 1,098 2021 38,527 2020 35,271 2020 933 2019 32,053 2019 815 ADJUSTED EBITDA MARGIN (%) -2% PROFIT AFTER TAX (R million) 27% 2023 27 2023 236 2022 29 2022 186 2021 28 2021 137 2020
Slide 17: Financial Performance
FINANCIAL PERFORMANCE EARNINGS PER SHARE (cents) 26% CORE HEADLINE EARNINGS (R million) 19% 2023 24.5 2023 209 2022 19.5 2022 176 2021 14.9 2021 149 ( 14.5) 2020 2020 117 2019 8.5 2019 88 CORE HEPS (cents) DIVIDENDS PER SHARE (cents) 12% 19% 2023 24.6 2023 10.0 2022 20.7 2022 8.9 2021 17.6 2021 4.7
Slide 18: Financial Performance
FINANCIAL PERFORMANCE % RETURN ON EQUITY (%) 18% EXPENSE ANALYSIS DEC 22 DEC 23 CHANGE 1 214 1 414 16% 2023 12 Revenue (R million) Employee costs (R million) 515 585 14% 2022 10 Employee costs as % of revenue 42% 41% 2021 9 Other operating expenses (R million) 274 326 19% Other operating expenses as
Slide 19: We Have a Strong Balance Sheet
WE HAVE A STONG BALANCE SHEET • Good cash position • Debt facility of R100m – unutilised for the year (utilised in January 2024 on acquisition of further shares in Milpark Education) 19
Slide 20: We've Achieved a Lot in Our Short History
WE’VE ACHIEVED A LOT IN OUR SHORT HISTORY • Optimisation of current campuses and staff • Acquired further quality brands • First comprehensive campus opens in Centurion • Opened 3 new campuses • School of IT opens 2017 2018 • 2019 Purchased land in Centurion 2020 2021 • 2026 Milpark Education pivots
Slide 21: And the Future Looks Bright
2121 AND THE FUTURE LOOKS BRIGHT The demand for higher education We are on track to achieve 56 000 continues to outweigh the supply students by 2026 and are positioning and private higher education ourselves for over 100 000 students institutions have a large role to play in time Targeting: The STAD
Slide 22: Our Growth Strategy
OUR GROWTH STRATEGY ALSO EXPLORE OTHER GROWTH OPPORTUNITIES THROUGH EXCITING INTERNATIONAL AND LOCAL PARTNERSHIPS TAKING OPENING NEW EXPLORING ACCREDITING PROGRAMMES OPENING COMPREHENSIVE NEW NEW NEW TO NEW SITES CAMPUS & FACULTIES GEOGRAPHIC IN-DEMAND OF DELIVERY OPTIMISING & SCHOOLS REGIONS PROGRA
Slide 23: New Programme Growth
NEW PROGRAMME GROWTH • In 2024, 14 qualifications already accredited and will be offered from 2025 • As a reminder, same Regulators as public universities. 37 87 pipeline Certificated programmes (in development programmes or awaiting • Continued focus on quality of our offerings – we believe our qua
Slide 24: Academic Quality and Integrity Remains a Priority
ACADEMIC QUALITY AND INTEGRITY REMAINS A PRIORITY • 8 103 students graduated across the Group • Milpark Education’s PGDA once more achieved the highest pass rate of all distance learning institutions in the SAICA ITC Board exam • AFDA celebrates its 30th year of operations with another multi-award w
Slide 25: Offering a Comprehensive and Holistic Student Experience
OFFERING A COMPREHENSIVE AND HOLISTIC STUDENT EXPERIENCE • Sport strategy rolled out at STADIO Higher Education • Running club for mass participation – “Run with Zola” • STADIO Higher Education competed in USSA netball and Sevens rugby tournaments • The STADIO Sabres (Sevens rugby team) won their di
Slide 26: The Time Is Right to Build Durbanville
THE TIME IS RIGHT TO BUILD DURBANVILLE XXXXX • Our contact learning strategy is working - proof of concept with Centurion • Bellville campus is reaching capacity and cannot accommodate the strategy of comprehensiveness in the long-term • Will be STADIO Higher Education’s “showroom” in the Western ca
Slide 27: On Track to Reach 56 000 Students Before 2026
ON TRACK TO REACH 56 000 STUDENTS BEFORE 2026 6% annual growth required OCT 2017 2026 840 12 976 46 508 56 000 100 000+ STUDENTS STUDENTS STUDENTS STUDENTS * STUDENTS JAN DEC 2017 2023 TARGET: 80% DISTANCE LEARNING 20% CONTACT LEARNING * In accordance with the Prelisting Statement 27
Slide 28: Update on 2024 Semester 1 Student Numbers
UPDATE ON 2024 SEMESTER 1 STUDENT NUMBERS DISTANCE LEARNING CONTACT LEARNING 16% 8% 8% Excl Milpark B2B 45,000 40,017 8,000 40,000 37,067 33,505 7,000 6,081 6,269 6,283 35,000 5,921 5,662 5,807 29,119 6,000 5,402 30,000 25,145 4,755 25,000 22,199 5,000 18,997 20,932 20,000 4,000 15,000 3,000 10,000
Slide 29: We've Continued to Deliver Over the Past Seven Years
WE’VE CONTINUED TO DELIVER OVER THE PAST SEVEN YEARS… 29
Slide 30: The Future Is Exciting
THE FUTURE IS EXCITING OVER TIME: EBITDA MARGINS > 30% RETURN ON EQUITY = 20% We want to be the Higher Education Institution of CHOICE! We want 100 000 to be the alternative STUDENTS to ALL IS VERY publics ACHIEVABLE 2024 IS FULL OF We want to be the OPPORTUNITIES alternative to UNISA 30
Slide 31: We're a New Vision in Higher Education
WE’REA NEW VISION IN HIGHER EDUCATION Ae o daha slashes Pye ‘“ STADIO
Slide 32: Report of the Transformation, Social and Ethics Committee
Dr Busisiwe Vilakazi Transformation, Social and Ethics chairperson REPORT OF THE TRANSFORMATION, SOCIAL AND ETHICS COMMITTEE 32 32
Slide 33: Fostering an Eco-Conscious Society
FOSTERING AN ECO-CONSCIOUS SOCIETY • ESG framework approved and rolled out • Solar solution project implementation continues across campuses - R5 million spent in 2023 and an additional R5 million to be spent in 2024 • Energy usage down 28% since 2022 • Electricity spend reduced to R8 million in 202
Slide 34: STADIO School of Fashion Embeds Sustainability into Its Curriculum
The STADIO School of Fashion has embedded sustainability into its curriculum, teaching its students to be ethical and to embrace “slow” fashion, i.e. production of fewer products at a higher quality. The STADIO School of Fashion educates its students on the impact that the fashion industry has on th
Slide 35: Contributing to the Sustainable Development Goals Through Quality Education
CONTRIBUTING TO THE SUSTAINABLE DEVELOPMENT GOALS THROUGH QUALITY EDUCATION • The Group’s main aim is to “empower the nation by widening access to quality higher education” STUDENT DEMOGRAPHICS which speaks directly to SDG 4: Education for all and for Future, “Quality Education” RACIAL DIVERSITY • Q
Slide 36: The Group's Gender Pay Gap Was 13%
THE GROUP’S GENDER PAY GAP WAS 13% WHICH, ACCORDING TO INTERNATIONAL LABOUR ORGANISATION, IS BETTER THAN THE INTERNATIONAL AVERAGE OF 20%. WE REMAIN COMMITTED TO EQUAL WORK FOR EQUAL PAY. 36
Slide 37: Promoting an Ethical and Socially Aware Culture
PROMOTING AN ETHICAL AND SOCIALLY AWARE CULTURE • The Board understands the enormous role that the Group must play in society in providing quality affordable higher education to more individuals whilst creating value for all our stakeholders • The Board is responsible for promoting an ethical cultur
Slide 38: Questions & Answers
Notes: • Shareholders may ask questions by selecting the Q & A icon in the platform and typing your questions into QUESTIONS the text box at the bottom of the screen. & ANSWERS • Should you have any further questions or would like to arrange a meeting with the company, please contact investorrelatio