Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — FY2018 Earnings Presentation
37 slides from Stadio Holdings Pty's earnings presentation, Mar 5, 2019
Slide 1: 2018 Annual Results Presentation
2018 Annual Results Presentation 4 & 5 March 2019
Slide 2: Towards STADIO Multiversity
TOWARDS STADIO MULTIVERSITY
Slide 3: What are we busy with?
3 WHAT ARE WE BUSY WITH? 2
Slide 4: What are we busy with?
WHAT ARE WE BUSY WITH? Unbundled to create two focused leadership teams: CURRO & STADIO Acquired quality brands to obtain qualifications in the higher education space Accumulated critical mass in terms of student numbers and revenue in order to qualify as a listed entity Listed in October 2017 with
Slide 5: What are we busy with?
WHAT ARE WE BUSY WITH? To progress towards reaching 56 000 students by 2026 To find suitable land for expansion purposes To analyse the needs of existing campuses in order to create capacity for students To find a fitting and best practice IT platform to service 100 000 students To accredit new qual
Slide 6: What are we busy with?
WHAT ARE WE BUSY WITH? Implement Unit 4 - Reconfiguration, Testing & Training Continue accrediting additional qualifications Prepare building plans / site development plans Analyse Gauteng and KwaZulu-Natal for opportunities Design an effective organogram for the new STADIO Multiversity Submit the r
Slide 7: Why are we so motivated?
WHY ARE WE SO MOTIVATED? 6
Slide 8: Why are we so motivated?
WHY ARE WE SO MOTIVATED? Number of first year enrolments at public universities has doubled 2000 557 000 2016 1 143 245 Student numbers: Public vs Private PRIVATE 167 408 VS PRIVATE PUBLIC 975 837 Private enrolments as percentage of total in SA: 15% The global average is closer to 35% Our public uni
Slide 9: Committed to widening access for qualifying Grade 12s
WE ARE COMMITTED TO WIDENING ACCESS BY GIVING QUALIFYING GRADE 12s (AND WORKING ADULTS) AN OPPORTUNITY TO OBTAIN A DEGREE 8
Slide 10: The results of our efforts: 1.6M students
THE RESULTS OF OUR EFFORTS: 1.6M To reduce unemployment STUDENTS Support the aim of the NDP to achieve BY 2030 the goal of 1.6m students by 2030 Contributing to stimulating growth in the economy 9
Slide 11: Where do we go?
WHERE DO WE GO? 10
Slide 12: Faculties and student number targets
Faculty of Commerce, Management & Law Graduate School 12 976 STUDENTS of Business Faculty of Creative Economies 35 000 STUDENTS Faculty of Education & Humanities STUDENTS 56 000 Faculty of Engineering & Information Technology Faculty of Agriculture & Environmental STUDENTS 100 000+ Sciences Faculty
Slide 13: Navigating the J-curve
NAVIGATING THE J-CURVE 12
Slide 14: 2017 to 2026 J-curve
2017 2018 2019 2020 2021 2022 2026 13
Slide 15: 2017 to 2026 J-curve
2017 2018 2019 2020 2021 2022 2026 14
Slide 16: Why are we so positive about the future?
WHY ARE WE SO POSITIVE ABOUT THE FUTURE? 15
Slide 17: From 2022 - 2030
FROM 2022 - 2030 We will become better known and established with the general public, as it is easier to market one Brand We shall have six faculties, through which we can offer more than 100 qualifications By then, our system-driven organisation will be able to serve students beyond the borders of
Slide 18: Academic quality, graduates and research outputs
Institutions are autonomous and have internal QA mechanisms and structures but there is an overarching committee to assure 6392 graduates from academic governance and quality across the brands in the Group 2018; and an average module success rate of 77.7% across the Group 93 staff members (FT and PT
Slide 19: Financial highlights from Dec 2017 to Dec 2018
FINANCIAL HIGHLIGHTS FROM DEC 2017 TO DEC 2018 STUDENT REVENUE EBITDA NUMBERS R633m R129m 29 885 12 976 R122m R0,5m CORE HEPS CHEPS HEADLINE 7,8 cps 8,6 cps EARNINGS R70m 1,2 cps 0,6 cps R3,2m 18
Slide 20: Financial information
FINANCIAL INFORMATION 19
Slide 21: Highlights for 2018
HIGHLIGHTS FOR 2018 • Concluded 4 acquisitions • LISOF (100%) – 1 January 2018 • Milpark (87.2%) – 19 March 2018 • Business of CA Connect – 12 April 2018 • Prestige Academy (100%) – 1 November 2018 • Opened 3 new Embury campuses • Montana • Waterfall • Musgrave • Entered into an agreement to acquire
Slide 22: 2018 Group organogram
2018 GROUP ORGANOGRAM 100% 87.2% 100% 74% 100% 100% 74% 14 PTA • JHB • CPT • KZN • PE • Windhoek CAMPUSES 21
Slide 23: Creating a Multiversity
CREATING A MULTIVERSITY Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Commerce, Engineering & Agriculture & Medicine & Creative Education & Management Information Environmental Health Economies Humanities & Law Technology Sciences Sciences Expansion plan 22
Slide 24: Student numbers
STUDENT NUMBERS CONTACT LEARNING STUDENTS DISTANCE LEARNING STUDENTS 15% 7% 6 000 30 000 4 737 4 737 25 148 23 467 25 148 25 000 4 117 4 000 20 000 2 913 15 000 10 063 2 000 10 000 840 5 000 0 0 2016 2017 2018 2017 2018 2016 2017 JUN 2018 2017 2018 ACTUAL ACTUAL ACTUAL LIKE-FOR-LIKE ACTUAL ACTUAL AC
Slide 25: Student number & programme analysis
STUDENT NUMBER & PROGRAMME ANALYSIS * Like-for-like comparison including student numbers for all underlying HEI’s (including Milpark, LISOFand Prestige Academy) 24
Slide 26: Student retention and graduation rate
STUDENT RETENTION AND GRADUATION RATE RETENTION GRADUATION RATE * DROPOUT RATE * Represents graduation rates as a % of total students 25
Slide 27: Salient financial information
SALIENT FINANCIAL INFORMATION REVENUE (Rm) BAD DEBT % EBITDA (Rm) EBITDA MARGIN % 3,2% 20% 700 R633m 140 R129m 600 120 100 20% 500 3% 80 400 R60m R297m 60 23% 300 1,5% 0,4% 1,6% 40 200 R122m 20 R11m R0,5m 100 R46m 0 0 (20) 2016 2017 2018 2018 2016 2017 2018 2018 ACTUAL ACTUAL INTERIMS ACTUAL ACTUAL
Slide 28: Bad debts as % of revenue
BAD DEBTS AS % OF REVENUE BAD DEBTS – PRE RECOVERIES BAD DEBTS – POST RECOVERIES 27
Slide 29: Salient financial information (continued)
SALIENT FINANCIAL INFORMATION (CONTINUED) HEADLINE EARNINGS (Rm) HEPS (CENTS) 7,8 cps 80 8 R63m 7 60 6 5 40 4 3,5 cps R29m 3 20 2 1,5 cps R7m 1 0 0 (R7m) (1) (1,2 cps) (20) (2) 2016 2017 2018 2018 2016 2017 2018 2018 ACTUAL ACTUAL INTERIMS ACTUAL ACTUAL ACTUAL INTERIMS ACTUAL 28
Slide 30: Salient financial information (continued)
SALIENT FINANCIAL INFORMATION (CONTINUED) CORE HEADLINE EARNINGS (Rm) CHEPS (CENTS) 80 9 8,6cps R70m 8 60 7 6 5 4,0 cps 40 R32m 4 3 20 2 1,7 cps R8m 0,6 cps R3m 1 0 0 2016 2017 2018 2018 2016 2017 2018 2018 ACTUAL ACTUAL INTERIMS ACTUAL ACTUAL ACTUAL INTERIMS ACTUAL 29
Slide 31: Current financial position vs pre-listing statement
CURRENT FINANCIAL POSITION VS PRE-LISTING STATEMENT REVENUE (Rm) EBITDA (Rm) HEPS (CENTS) CHEPS (CENTS) * Adjusted to calculate the impact of core headline earnings adjustments 30
Slide 32: Statement of financial position summary
STATEMENT OF FINANCIAL POSITION SUMMARY 31
Slide 33: Capital invested
CAPITAL INVESTED CAPITAL INVESTED (Rm) Acquisitions Infrastructure development and capital assets Programme development Total Cumulative investment STADIO 32
Slide 34: Cash utilisation
CASH UTILISATION • Capital raise from shareholders is not expected in the short term 33
Slide 35: Faculties and student number targets
12 976 STUDENTS Faculty of Commerce, Management & Law Graduate School 35 000 STUDENTS of Business Faculty of Creative Economies STUDENTS 56 000 Faculty of Education & Humanities Faculty of STUDENTS 100 000+ Engineering & Information Technology Faculty of Agriculture & Environmental Sciences ? Facult
Slide 36: Thank you
THANK YOU ENKOSI RE A LEBOGA DANKIE 35
Slide 37: Creating a Multiversity
MULTIVERSITY @) EDUCATION [AFDA] EMBURY ||SOF JJ