Slide 1: FY24 Results Presentation (ASX Release)
ASX RELEASE 29 AUGUST 2024 FY24 RESULTS PRESENTATION NextEd Group Limited (ASX:NXD) (NextEd) provides its results presentation for the year ended 30 June 2024 (FY24). NextEd invites investors to attend a webinar today at 10:30am (AEST) to discuss the results being hosted by NextEd’s Chief Executive
Slide 2: FY24 Results Presentation
FY24 Results Presentation 29 August 2024
Slide 3: Contents
Contents 1. Financial highlights 3 2. Operating highlights 6 3. Macro environment and NextEd responses 10 4. Financial results 13 5. Immediate outlook 19 6. Appendices 22
Slide 4: Financial highlights
1 Financial highlights 3
Slide 5: Solid results in difficult market conditions
Solid results in difficult market conditions FY24 financial results ▪ Consolidated revenue grew 9% - growth achieved in the International Vocational and Go Study NPAT(A) segments Revenue EBITDA1 adjusted2 ▪ EBITDA impacted by lower number of Technology & Design students - international students swit
Slide 6: Operational improvements underpin FY24 performance
Operational improvements underpin FY24 performance ▪ International vocational student numbers grew by 3% vs More international New courses June 2023 vocational students accredited in period ▪ Growth in 2H FY24 was circa 800 students driven by 3,146 at June 2024 6 Hospitality and Healthcare courses –
Slide 7: Operating highlights
4 _— Operating highlights
Slide 8: FY24 strategic investments
FY24 strategic investments New course development ▪ Launched international student hospitality vocational courses in substantial Melbourne and Sydney markets in September 2023 – impressive growth momentum achieved with 1,158 students at end of July 2024 ▪ Launched 3 high demand international student
Slide 9: Student mix shift to higher margin vocational courses
Student mix shift to higher margin vocational courses International student mix shift to higher margin vocational courses in Management, Hospitality & Healthcare Student number mix at end of period Student numbers at end of period 7% 7% 2% 623 ▪ Growth in higher margin vocational courses, 15% especi
Slide 10: Managing campus utilisation
Managing campus utilisation NextEd campus locations at Number of classrooms by Average weekday classroom end of July 2024 state at end of July 2024 utilisation* in H2 FY24 was 71% 8 100 11 64% 75% 90 74 80 32 22 NSW 70 59 VIC 60 77% QLD 50 12 SA 40 WA 30 65 57 20 41 88% 45% 10 6 1 87 7 0 5 8 campuse
Slide 11: Macro environment and NextEd responses
3 Macro environment and NextEd responses 10
Slide 12: Emerging impacts of government migration policy
Emerging impacts of government migration policy NextEd student visa approval rates vs. ▪ The Federal Government has targeted a reduction in international 100% industry 88% 88% student numbers to assist halving net migration into Australia by 2025 77% 79% 80% 73% 66% ▪ NextEd continues to outperform
Slide 13: NextEd responses to market conditions
NextEd responses to market conditions In response to current international student market conditions, NextEd has: ▪ Focused on growing domestic student revenues and profits – not impacted by immigration policy ▪ Prioritised growth in high demand, higher margin vocational courses in Hospitality, Aged
Slide 14: Financial results
4 Financial results 13
Slide 15: Revenue growth driven by vocational course demand
Revenue growth driven by vocational course demand Full year actuals Change ($000’s) FY24 FY23 % Revenue 111,367 102,220 9 ▪ Revenue and EBITDA growth driven by International Gross profit 57,279 56,868 1 Vocational, Go Study and Domestic Vocational Gross profit % to revenue 51% 56% segments Operating
Slide 16: Segment results – vocational student strength
Segment results – vocational student strength ▪ International Vocational segment revenue grew 15% ($000’s) International Technology Go Study Domestic Elimination / Total Vocational & Design Vocational Corporate vs pcp - vocational course revenues in 2H FY24 grew 34% vs 1H FY24 as newly launched cour
Slide 17: Cost management update
Cost management update Opex* pre-AASB16 30,000 ▪ Cost reductions were actioned in 2H FY24 - circa $1.5 million lower costs than 1H FY24 25,000 ▪ Cost reduction actions have been implemented across all functions and departments (non-teaching headcount and 20,000 Q4 property costs) – annualised cost s
Slide 18: Cash flows – strategic expansion investments
Cash flows – strategic expansion investments ▪ Operating cash flows improved in H2 FY24, driven by active debtor management and early benefits from targeted cost reductions ▪ Campus expansion projects are now complete ▪ $10.0 million facility implemented in H2 FY24, freeing up circa $9.0 million of
Slide 19: Strong balance sheet position
Strong balance sheet position ($000’s) Jun-23 Dec-23 Jun-24 C urre nt a s s e t s Contract liabilities (deferred revenue) Cash and cash equivalent 30,264 16,834 19,343 Trade receivables 7,118 7,597 14,972 80,000 Invento ries 341 238 110 P repayments and o ther assets 12,280 8,585 6,742 70,000 T o ta
Slide 20: Immediate outlook
5 Immediate outlook 19
Slide 21: Immediate outlook
Immediate outlook Over the longer term, we expect government policy to protect international education export earnings (which also materially impacts the tourism industry and GDP growth) and to support Australia's future workforce requirements and economy NextEd is positioning itself to capitalise o
Slide 22: Thank You
Thank You Glenn Elith Michael Fahey Level 2, 7 Kelly Street Chief Executive Officer Chief Financial Officer Ultimo NSW 2007 glenn.elith@nexted.com.au michael.fahey@nexted.com.au nexted.com.au
Slide 23: Appendices
6 Appendices 22
Slide 24: NextEd’s differentiated market position
NextEd’s differentiated market position Diversified revenue base: Strong compliance record reduces risk and enables ▪ Broad course range in English language, vocational new course accreditations: and higher education segments ▪ Swift regulatory approvals for new campuses and courses ▪ Domestic and i
Slide 25: Income Statement (pre and post AASB16)
Income Statement (pre and post AASB16) Full year actuals Change FY24 FY23 $ % $ % Post Pre Post Pre Post Pre ($000’s) Difference Difference AASB16 AASB16 AASB16 AASB16 AASB16 AASB16 Revenue 111,367 111,367 102,220 102,220 9,147 9 9,147 9 Agent commissions (22,044) (22,044) (19,527) (19,527) (2,517)
Slide 26: Non-IFRS information
Non-IFRS information ▪ The Company uses certain measures to manage and ($000’s) FY24 FY23 report on its business that are not recognised under cc g (‘ ’). T NPAT(A) adjusted 161 6,013 measures are collectively referred to as non-IFRS Less: financial measures. Although the Company believes that these
Slide 27: Half year income statements
Half year income statements Half year actuals Change Half year actuals Change ($000’s) H1 FY24 H2 FY24 $ % H1 FY23 H2 FY23 $ % Revenue 59,201 52,166 (7,035) (12) 43,574 58,646 15,072 35 Agent commissions (11,262) (10,782) 480 4 (7,451) (12,076) (4,625) (62) Education expenses (17,570) (14,474) 3,096
Slide 28: Go Study – returns to profitability
Segment Results Go Study – returns to profitability Revenue EBITDA ▪ Revenue increased 14% vs pcp - $7,000 $700 growth in onshore Australia, $6,000 $600 $5,000 $500 France and Mexico $3,019 $216 $000's $4,000 $2,671 $400 ▪ FY24 EBITDA increased by $3,000 $300 $000's $0.8m vs pcp - student number $2,
Slide 29: International Vocational – English language impacted by visa policy
Segment Results International Vocational – English language impacted by visa policy Revenue EBITDA Revenue mix 100,000 25,000 90,000 1% 80,000 20,000 6% 7% ▪ Revenue and EBITDA growth 70,000 $39,688 $9,538 19% 14% 60,000 15,000 $000's against pcp driven by resilient $000's 50,000 $46,830 $12,859 Eng
Slide 30: Domestic Vocational – gaining positive momentum
Segment Results Domestic Vocational – gaining positive momentum Revenue EBITDA ▪ Revenue and EBITDA growth in 10,000 2,500 H2 FY24 against the previous half 9,000 year – with positive momentum 8,000 2,000 continuing into FY25 7,000 408 3,487 4,809 6,000 1,500 $000's 5,000 1,219 ▪ Positive operationa
Slide 31: Technology & Design – international student decline
Segment Results Technology & Design – international student decline Revenue EBITDA ▪ FY24 revenue and EBITDA 18,000 4,000 impacted by lower international 16,000 $884 student numbers as some 14,000 3,000 students dropped out of their 12,000 6,386 10,000 2,000 course to move to lower priced 5,338 8,00
Slide 32: NextEd campus footprint by location
NextEd campus footprint by location December 2023 June 2024 Change + / (-) Leased Licensed Leased Licensed Leased Licensed Campus premises classrooms Total premises classrooms Total premises classrooms Total Sydney(1) 92 - 92 74 - 74 (18) - (18) Melbourne 87 - 87 87 - 87 - - - Brisbane 24 10 34 38 -
Slide 33: Average student numbers by segment
Average student numbers by segment International Vocational Technology & Design Domestic Vocational 9,000 900 500 8,000 108 800 450 7,000 566 634 700 90 400 69 350 6,000 1,973 600 192 2,756 300 5,000 500 139 250 4,000 400 429 452 200 3,000 300 4,980 489 150 4,200 200 454 2,000 100 1,000 100 50 0 0 0
Slide 34: Important notice & disclaimer
Important notice & disclaimer Summary Information Past Performance This Presentation contains summary information about NextEd Group Limited and its activities which is current The past performance and position of NextEd Group Limited reflected in this Presentation is given for illustrative only as