Slide 1: Annual Financial Results for the Year Ended 31 December 2016
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016
Slide 2: Financial Highlights
FINANCIAL HIGHLIGHTS ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 2
Slide 3: Excellent Results: Performance Drivers
EXCELLENT RESULTS PERFORMANCE DRIVERS Total enrolment School enrolment 2016: 53 337 2016: 24 199 13% 6% 2015: 47 209 2015: 22 877 Education sites Tertiary full qualification 2016: 98 enrolment 2016: 29 138 5% 20% 2015: 93 2015: 24 332 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE
Slide 4: Group Revenue
GROUP REVENUE 4,000 3,500 3 353 +24% 3,000 2 708 2,500 1 932 R’m 2,000 1 766 1 687 1,500 1,000 500 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 4
Slide 5: Group Operating Margin
GROUP OPERATING MARGIN CONTINUED IMPROVEMENT 20% 18.1% 18% 16.6% 16% 14% 13.3% 12.6 11.9% 12% R’m 10% 8% 6% 4% 2% 0% 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 5
Slide 6: Trading Operating Profit
TRADING OPERATING PROFIT 700 +30% 600 585 500 448 400 R’m 300 256 222 200 200 100 0 2012 2013 2014 2015 2016 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 6
Slide 7: Headline Earnings Per Share
HEADLINE EARNINGS PER SHARE 80 71.1 70 +39% 60 51.0 50 40.3 Cents 40 37.6 33.6 30 20 10 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 7
Slide 8: Schools
SCHOOLS ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 8
Slide 9: Schools Revenue
SCHOOLS REVENUE 1,800 1 644 1,600 1,400 1 432 +15% 1,200 1,000 915 R’m 819 800 739 600 400 200 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 9
Slide 10: Schools Operating Profit
SCHOOLS OPERATING PROFIT 400 345 350 299 +16% 300 250 R’m 200 157 162 148 150 100 50 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 10
Slide 11: Schools Operating Margin
SCHOOLS OPERATING MARGIN 22% 20.9% 21.0% 21% 20.0% 20% 19.2% 19% 18% 17.7% 17% 16% 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 11
Slide 12: Tertiary
TERTIARY ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 12
Slide 13: Tertiary Revenue
TERTIARY REVENUE 1,400 1 253 1,200 +28% 982 1,000 827 800 739 751 R’m 600 400 200 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 13
Slide 14: Tertiary Operating Profit
TERTIARY OPERATING PROFIT 250 223 200 +67% 150 134 R’m 100 84 48 50 32 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 14
Slide 15: Tertiary Operating Margin
TERTIARY OPERATING MARGIN 20% 17.8% 18% 16% 13.7% 14% 12% 10.2% 10% 8% 6.4% 6% 4.4% 4% 2% 0% 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 15
Slide 16: Resourcing
RESOURCING ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 16
Slide 17: Resourcing Revenue
RESOURCING REVENUE 500 461 450 400 +55% 350 297 300 R’m 250 211 200 194 200 150 100 50 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 17
Slide 18: Resourcing Operating Profit
RESOURCING OPERATING PROFIT 35 29 30 -31% 25 22 20 20 18 18 R’m 15 10 5 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 18
Slide 19: Resourcing Operating Margin
RESOURCING OPERATING MARGIN 12% 10.4% 9.8% 10% 9.1% 9.4% 9.2% Exclude 8% effects of acquisitions 6% 4.4% 4% 2% 0% 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 19
Slide 20: Revenue Contribution
REVENUE CONTRIBUTION SEGMENTAL OVERVIEW Schools Tertiary 2016 2015 Resourcing ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 20
Slide 21: Operating Profit Contribution
OPERATING PROFIT CONTRIBUTION SEGMENTAL OVERVIEW Schools Tertiary 2016 2015 Resourcing ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 21
Slide 22: Cash Flow Generation
CASH FLOW GENERATION 800 749 700 600 556 500 R’m 400 363 332 286 302 300 223 186 200 200 93 100 0 2012 2013 2014 2015 2016 Axis Title Cash generated by operations Cash from operations ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 22
Slide 23: Net Cash Position
NET CASH POSITION DECREASED BORROWINGS 0 -200 -62 -202 -400 -436 -600 R’m -800 -1,000 -1,200 -1 110 -1 157 -1,400 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 23
Slide 24: Borrowing Capacity
BORROWING CAPACITY Headroom Series 1 3.0 R1.5 billion 2.6 2.5 2.0 1.6 Axis R’bn 1.5 1.1 1.0 0.5 0.0 Current borrowings Current facilities Borrowing capacity (3.5 x EBITDA) Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 24
Slide 25: Debtors Management
DEBTORS MANAGEMENT • Revenue ↑ 24% • Debtors ↑ 22% • Schools below 1% of revenue • Tertiary average 4% of revenue • Bad debt levels remain consistent Strong emphasis Mindful of Well managed on collections consumer ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 25
Slide 26: Market Cap at Year End
MARKET CAP AT YEAR END 10,000 9 347 9,000 8,000 7 728 +21% 7,000 6,000 R’m 5,000 4,000 3 665 3,000 2 612 2 768 2,000 1,000 0 2012 2013 2014 2015 2016 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 26
Slide 27: Excellent Results: Performance Summary
EXCELLENT RESULTS PERFORMANCE SUMMARY Revenue Trading operating profit 24% 30% Normalised earnings per Dividends per share share 24% 32.5cents ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 27
Slide 28: Strategy
STRATEGY ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 28
Slide 29: Strategic Imperatives
STRATEGIC IMPERATIVES ECONOMY RISK MANAGEMENT Growth > Organic and Acquisitive REGULATIONS > Channel Africa > Product > Segment > Geographic Excellence through Specialisation REPUTATION & STAFF > Niche market focus > Benchmarking Academic Excellence > Database > Teaching & Learning development > Ben
Slide 30: Strategic Imperatives
STRATEGIC IMPERATIVES ECONOMY RISK MANAGEMENT Growth > Organic and Acquisitive REGULATIONS > Channel Africa > Product > Segment > Geographic Excellence through Specialisation REPUTATION & STAFF > Niche market focus > Benchmarking Academic Excellence > Database > Teaching & Learning development > Ben
Slide 31: Academic Excellence
ACADEMIC EXCELLENCE TEACHING & BENCHMARKING LEARNING INTERNATIONAL LEARNING PERFORMANCE ANALYTICS & EMPLOYER RECOGNITION ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 31
Slide 32: The Independent Institute of Education
THE IIE THE INDEPENDENT INSTITUTE OF EDUCATION South Africa’s leading, most accredited and largest “private university” or private higher education institute. Established in 2005 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 32
Slide 33: The IIE
THE IIE • DHET (Department of Higher Education and Training) • HEQC (Higher Education Quality Committee) • SAQA (South African Qualification Authority) ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 33
Slide 34: The IIE
THE IIE Private Public Universities Universities Naming convention is problematic Public perception confusion ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 34
Slide 35: The IIE
THE IIE Academic Student Product experts Support innovation Services New qualifications & development Research Centralised student support service Senate ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 35
Slide 36: The IIE
THE IIE Law Humanities Humanities Education Social Sciences 100+ Faculties academics Information + communication technologies IIE learn platform Commerce Blackboard LMS 57 registered Focus on & accredited GEP teaching & qualifications work readiness learning experience 13 new qualifications ANNUAL F
Slide 37: Academic Excellence: Matric Results
ACADEMIC EXCELLENCE Matric results BENCHMARKING PERFORMANCE ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 37
Slide 38: 2016 Matric Results: Distinctions
ACADEMIC EXCELLENCE 2016 MATRIC RESULTS MATRICULANTS 1 636 DISTINCTIONS 2 562 AVERAGE DISTINCTIONS Per candidate 1.6 1 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 38
Slide 39: 2016 Matric Results: Distinctions per Student
ACADEMIC EXCELLENCE 2016 MATRIC RESULTS 10 DISTINCTIONS 1 STUDENT 9 DISTINCTIONS 44STUDENTS STUDENT 8 DISTINCTIONS 22 STUDENTS 7 DISTINCTIONS 40 STUDENTS 6 DISTINCTIONS 43 STUDENTS 08 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 39
Slide 40: Academic Excellence: Adding Value
ACADEMIC EXCELLENCE ADDING VALUE MARAVEST BEFORE: MARAVEST AFTER 1 Yr: 1.3 1.7 Average Average Distinctions per candidate Distinctions per candidate ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 40
Slide 41: Academic Excellence: Tertiary
ACADEMIC EXCELLENCE TERTIARY 84% 16% 72% 15% Average Average Average Average module pass module throughput pass dropout rate rate distinction rate rate ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 41
Slide 42: International Benchmarking
INTERNATIONAL BENCHMARKING INTERNATIONAL BENCHMARKING BENCHMARKING PERFORMANCE BENCHMARKING PERFORMANCE ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 42
Slide 43: International and Employer Recognition
INTERNATIONAL AND EMPLOYER RECOGNITION GRADUATE PLACEMENT International & Employer Employed 81% within recognition 6 months ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 43
Slide 44: International and Employer Recognition
INTERNATIONAL AND EMPLOYER RECOGNITION GRADUATE PLACEMENT International & Employer recognition 3223 of our graduates were placed in first time employment through the Graduate Empowerment Programme (GEP) ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 44
Slide 45: International and Employer Recognition
INTERNATIONAL AND EMPLOYER RECOGNITION INTERNATIONAL MATHEMATICS & SCIENCE OLYMPIAD 2016 13 Medals Jakarta, Indonesia ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 45
Slide 46: International and Employer Recognition
INTERNATIONAL AND EMPLOYER RECOGNITION CRAWFORDSCHOOLS™ USA college visits ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 46
Slide 47: International and Employer Recognition
INTERNATIONAL AND EMPLOYER RECOGNITION Loerie Awards • 4 Silver • 3 Bronze Pendoring • 2 Silver Golden Muse Award Decorex 2016 • Winner Nestle Tertiary Media & Creative Choice Award • Winner SA Fashion Week • 2x Finalists Sappi Goldpack Award ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2
Slide 48: Strategic Imperatives
STRATEGIC IMPERATIVES ECONOMY RISK MANAGEMENT Growth > Organic and Acquisitive REGULATIONS > Channel Africa > Product > Segment > Geographic Excellence through Specialisation REPUTATION & STAFF > Niche market focus > Benchmarking Academic Excellence > Database > Teaching & Learning development > Ben
Slide 49: Growth
GROWTH ORGANIC & ACQUISITIVE CHANNEL PRODUCT SEGMENT GEOGRAPHIC ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 49
Slide 50: Organic & Acquisitive Growth
ORGANIC & ACQUISITIVE GROWTH ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 50
Slide 51: Growth: Total Enrolment
GROWTH TOTAL GROWTH END FEB Total Full-Time Enrolment History (Feb) 70,000 60 176 60,000 53 337 +13% 50,000 47 209 40,000 33 654 30 190 30,000 20,000 10,000 0 2013 2014 2015 2016 2017 Axis Title Tertiary full qualifications Schools ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 51
Slide 52: Growth: Schools Division
GROWTH: SCHOOLS DIVISION END FEB Schools Enrolment History (Feb) 30,000 26 713 25,000 24 199 22 877 20,000 15,000 12 980 13 541 10,000 5,000 0 2013 2014 2015 2016 2017 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 52
Slide 53: Growth: Tertiary Division
GROWTH: TERTIARY DIVISION END FEB Tertiary Full Qualification Enrolment History (Feb) 40,000 35,000 33 463 29 138 30,000 24 332 25,000 20 113 20,000 17 210 15,000 10,000 5,000 0 2013 2014 2015 2016 2017 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 53
Slide 54: Growth
GROWTH GROUP 2015 2016 2017 2015 Students Students Students 47 209 53 337 60 176 Sites Sites Sites 93 98 118 Brands Brands Brands 23 25 26 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 54
Slide 55: Growth: Organic
GROWTH: ORGANIC Name Status Students Location Positioning Rosebank College Mega Braamfontein, Affordable Higher education +7 400 Campus Gauteng higher education Blended learning, Rosebank College Affordable Higher education +400 Polokwane, Connected Campus higher education Limpopo Pre-primary, Modde
Slide 56: Growth: Acquisitive Schools
GROWTH: ACQUISITIVE SCHOOLS Name Status Students Location Positioning Boarding Pre-primary, Kyalami, Summit College primary, +582 Premium fee Yes Gauteng high school Pre-primary, George, Glenwood House primary, +769 Western Premium fee Yes (2017) high school Cape Pre-primary, Cape Town, Elkanah Hous
Slide 57: Growth: Acquisitive Tertiary
GROWTH: ACQUISITIVE TERTIARY Name Status Students Location Positioning Capsicum Culinary Hospitality & Studio (100%) National Face to face +800 tourism footprint sector Largest chef school SA Broad Oxbridge Group (51%) Distance 21 000 Distance spectrum Distance University of Africa (sub-Saharan Broa
Slide 58: Channel: Distance Education, Blended Learning
CHANNEL Distance education Blended learning ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 58
Slide 59: Growth: Channel, SA Distance Education Market
GROWTH: CHANNEL SA DISTANCE EDUCATION MARKET Distance Education Market 2014 Distance: 370 000 Contact: 40% 590 000 60% Total: 960 000 Contact Distance Source: VitalStats 2014 Public Higher Education ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 59
Slide 60: Distance Education: Oxbridge Academy
GROWTH: CHANNEL DISTANCE EDUCATION Oxbridge Academy Distance learning provider 21 000 students (end 2016) 21 000 14 800 15 500 2014 2015 2016 Axis Title 51% Acquisition ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 60
Slide 61: Distance Education: University of Africa
GROWTH: CHANNEL DISTANCE EDUCATION University of Africa Distance learning provider Degree, Honours, Phd Leadership In Africa’s development Lusaka, Zambia 2 000+ Students 51% Acquisition ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 61
Slide 62: Blended Learning: Rosebank College Connected Campus
GROWTH: CHANNEL BLENDED LEARNING Rosebank College Connected Campus Connected Campus – Polokwane (2016) – Bloemfontein (2018) – Pietermaritzburg (2018) ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 62
Slide 63: Product Growth: New Qualifications
PRODUCT GROWTH 13 New qualifications in 2016 16 New qualifications Accreditation in progress ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 63
Slide 64: Product Growth 2016
PRODUCT GROWTH 2016 IIE Qualification Name (offered for the first time in 2016) Degree Certificate 1 Bachelor of Commerce (Distance) 2 Bachelor of Public Administration (Distance) ACCREDITED Bachelor of Education in Foundation Phase 3 Teaching QUALIFICATIONS OFFERED FOR THE Bachelor of Education in
Slide 65: Product Growth 2016
PRODUCT GROWTH 2016 IIE Qualification Name (offered for the first time in 2016) Degree Certificate Bachelor of Computer and Information 7 Sciences in Network Engineering Bachelor of Commerce Honours in Strategic 8 Brand Management 9 Bachelor of Arts Honours in Communication ACCREDITED QUALIFICATIONS
Slide 66: Product Growth: In Progress
PRODUCT GROWTH IN PROGRESS IIE Qualification Name (offered for the first time in 2016) Degree Certificate Bachelor of Business in Logistics and Supply 1 Chain Management (Contact) Bachelor of Arts in Strategic Brand 2 Communication (Distance) Bachelor of Business Administration in 3 Marketing (Conta
Slide 67: Product Growth: In Progress
PRODUCT GROWTH IN PROGRESS IIE Qualification Name (offered for the first time in 2016) Degree Certificate Postgrad Certificate in Education in Senior 9 Phase and Further Education and Training Teaching (Contact) Postgrad Certificate in Education in Senior 10 Phase and Further Education and Training
Slide 68: Segment Growth
SEGMENT GROWTH Hotel & Tourism Industry sector Mid-Fee Schools Remedial Schools ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 68
Slide 69: Segment Growth: Capsicum Culinary Studio
SEGMENT GROWTH Capsicum Culinary Studio Largest chef school of its kind in SA 868 students (End 2016) 100% Acquisition ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 69
Slide 70: Segment Growth: Mid Fee Schools
SEGMENT GROWTH Mid Fee Schools • Growing market segment • Greenfield developments • Founders Hill • Copperleaf • Mooikloof • 100% acquisition • GIS • Kathstan ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 70
Slide 71: Segment Growth: Remedial Schools
SEGMENT GROWTH Remedial Schools • Assisted learning • Select period of time for • Learning difficulties students • Pre-primary and preparatory; • Gauteng, Northern suburbs • Opens 2018 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 71
Slide 72: Geographic Growth
GEOGRAPHIC GROWTH ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 72
Slide 73: Geographic Growth: Schools
GEOGRAPHIC GROWTH: SCHOOLS WESTERN CAPE Summit Capsicum Elkanah House Oxbridge Glenwood House ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 73
Slide 74: Geographic Growth: Tertiary
GEOGRAPHIC GROWTH: TERTIARY AFRICA University of Africa ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 74
Slide 75: Geographic Growth: Resourcing
GEOGRAPHIC GROWTH Resourcing AFRICA HR SOLUTIONS CA GLOBAL R160 million Payroll niche gross revenue $ based Networks in 40+ countries ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 75
Slide 76: Strategic Imperatives
STRATEGIC IMPERATIVES ECONOMY RISK MANAGEMENT Growth > Organic and Acquisitive REGULATIONS > Channel Africa > Product > Segment > Geographic Excellence through Specialisation REPUTATION & STAFF > Niche market focus > Benchmarking Academic Excellence > Database > Teaching & Learning development > Ben
Slide 77: Innovation
INNOVATION GROUP Product Development Shared Services Consistent • Streamlining development of service and PRODUCT DEVELOPMENT our product knowledge sharing SHARED SERVICES offering throughout the business INNOVATION IT Customer Experience Systems IT SYSTEMS • Constant • Access CUSTOMER development a
Slide 78: Innovation: Shared Services
INNOVATION: SHARED SERVICES STRATEGY ENABLER International benchmark Head Office costs as % of revenue 8-12% Average 12% ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 78
Slide 79: Innovation: Shared Services
INNOVATION: SHARED SERVICES STRATEGY ENABLER H/O Costs as % of Rev 18 16 14 12 10 % 8 6 4 2 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 79
Slide 80: Innovation: Shared Services
INNOVATION: SHARED SERVICES STRATEGY ENABLER Average 12% ADvTECH target to average 10% Average 12% ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 80
Slide 81: Product Innovation
INNOVATION PRODUCT INNOVATION ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 81
Slide 82: Product Innovation: Game Design
PRODUCT INNOVATION BACHELOR IN COMPUTER AND INFORMATION SCIENCE: GAME DESIGN ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 82
Slide 83: Strategic Imperatives
STRATEGIC IMPERATIVES ECONOMY RISK MANAGEMENT Growth > Organic and Acquisitive REGULATIONS > Channel Africa > Product > Segment > Geographic Excellence through Specialisation REPUTATION & STAFF > Niche market focus > Benchmarking Academic Excellence > Database > Teaching & Learning development > Ben
Slide 84: Customer Focus
CUSTOMER FOCUS 1 2 EASY UNDERSTANDING TO-DO NEEDS BUSINESS WITH US ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 84
Slide 85: Customer Focus: Mosaic App
CUSTOMER FOCUS MOSAIC APP • Courses and modules • Communication | Lecturers/Students • Collaboration | Students • E-mails • Online library • Ordering and delivery of books • IIE Marque | Qualification verification + student academic portfolio • Calendars and rosters • Brand news feeds ANNUAL FINANCI
Slide 86: Customer Focus
CUSTOMER FOCUS Cost saving efficiency Enhanced Personalised student information experience 1 Platform LMS Safe & Unique secure branding ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 86
Slide 87: Strategic Imperatives
STRATEGIC IMPERATIVES ECONOMY RISK MANAGEMENT Growth REGULATIONS > Organic and acquisitive > Channel Africa > Product > Segment > Geographic Excellence through specialisation REPUTATION & STAFF > Niche market focus > Benchmarking Academic excellence > Database > Teaching & learning development > Ben
Slide 88: Human Capital Productivity
HUMAN CAPITAL PRODUCTIVITY HUMAN CAPITAL PRODUCTIVITY ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 88
Slide 89: Human and Capital Productivity
HUMAN AND CAPITAL PRODUCTIVITY PROVIDING A PRODUCTIVE WORKING ENVIRONMENT 91% Top Employer: Deloitte OHS improved Best Management Company score from score & 66% to 74% to Work For: Leadership from Development silver to gold ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 89
Slide 90: Human Capital Productivity: Retaining Talent
HUMAN CAPITAL PRODUCTIVITY RETAINING TALENT ATTRACT RETAIN BEST EMPLOYEES Deloitte Survey Top Employer Head Office - Gold Certified for the Tertiary - Silver 2nd Schools - Gold consecutive Resourcing - Platinum year ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 90
Slide 91: Prospects
PROSPECTS ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 91
Slide 92: Prospects: Target Schools Division
PROSPECTS TARGET: SCHOOLS DIVISION 2020 Schools Projected Revenue1 R3bn 3,500 revenue 3,000 2,500 2,000 R’m 1,500 1,000 500 0 2014 2015 2016 2017 2018 2019 2020 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 92
Slide 93: Prospects: Target Tertiary Division
PROSPECTS TARGET: TERTIARY DIVISION 2020 Tertiary projected revenue1 R2.2bn 2500 revenue 2000 1500 R’m 1000 500 0 2014 2015 2016 2017 2018 2019 2020 Axis Title ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 93
Slide 94: Prospects: Total Full-Time Enrolments
PROSPECTS ADvTECH Total Full-Time Enrolments Feb 70,000 60 176 60,000 53 337 50,000 47 209 40,000 33 654 30 190 30,000 21 000 20,000 Distance 10,000 0 2013 2014 2015 2016 2017 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 94
Slide 95: Prospects: Group Revenue Outside South Africa
PROSPECTS GROUP REVENUE 6% of revenue generated outside SA’s borders ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 95
Slide 96: Prospects: Target Revenue
PROSPECTS TARGET: REVENUE 30% revenue 2020 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 96
Slide 97: Prospects: Target NEPS
PROSPECTS TARGET: NEPS 100 cps (NEPS) Stretch target 2018 ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 97
Slide 98: ADvTECH = Good Investment
PROSPECTS ADVTECH = GOOD INVESTMENT Strong performance Clear focus on Good growth academic opportunities excellence Cash Return on investment ahead generation of cost of capital ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 98
Slide 99: ADvTECH Share Price
PROSPECTS ADVTECH SHARE PRICE ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 99
Slide 100: Prospects: Dividend
PROSPECTS DIVIDEND DIVIDENDS PER SHARE • Significant investments in pipeline 32.5c • Recent fundraising activities • Retaining cash to support capex pipeline and investments • Above inflation in dividend ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 100
Slide 101: Questions
QUESTIONS ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 101
Slide 102: Thank You
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