Edu Holdings Limited · ASX:EDU

Edu — Investor Presentation (December 2020)

19 slides from Edu's investor presentation, Dec 14, 2020

  1. Slide 1: UCW's Offer for RedHill Education

    UCW’S OFFER FOR REDHILL EDUCATION MEANINGFUL STEP TOWARDS CREATING A LEADING LISTED TERTIARY EDUCATION GROUP

  2. Slide 2: Disclaimer

    DISCLAIMER Disclaimer This presentation has been prepared by UCW Limited (UCW) in relation to its proposed off-market takeover bid to acquire all of the ordinary shares in RedHill Education Limited (RedHill), (the “Offer”) in accordance with Chapter 6 of the Corporations Act 2001 (Cth) (Corporations

  3. Slide 3: Transaction Overview

    TRANSACTION OVERVIEW

  4. Slide 4: Transaction Overview

    TRANSACTION OVERVIEW Combining two high-quality complementary businesses to create one of Australia’s leading listed tertiary education groups  UCW Limited (UCW) today announced an off-market takeover offer for RedHill Education Limited (RedHill)  4.5 fully paid ordinary shares in UCW for each ord

  5. Slide 5: Transaction Parties and Background

    TRANSACTION PARTIES AND BACKGROUND Strong investor support for transaction bringing together two high-quality education groups  ASX-listed tertiary education group, operating in the Vocational Training and Education (VET) and Higher Education (HE) sectors  Operates under the brands: Australian Lea

  6. Slide 6: Offer Premium and Combined Financial Position

    OFFER PREMIUM AND COMBINED FINANCIAL POSITION Delivering immediate value for RedHill shareholders and positioning the Combined Group for future growth Offer price 14.5% 19.1% 52.8% 31.3% 2.9%  The Offer implies a value of $0.79 per RedHill share1 premium and a premium across a range of measures, in

  7. Slide 7: Reasons for RedHill Shareholders to Accept

    REASONS FOR REDHILL SHAREHOLDERS TO ACCEPT Offer represents an immediate premium for RedHill shareholders with further value enhancement potential  Premium across a range of trading measures, including recent capital raise  RedHill shareholders to hold 66% of Combined Group  Immediate and long

  8. Slide 8: Combined Group

    COMBINED GROUP

  9. Slide 9: Becoming a Leading Listed Education Group

    BECOMING A LEADING LISTED EDUCATION GROUP Our vision combines education industry management with a buy-and-build focus 1 2 Product development Operational excellence  Demand-led course development and  Leverage innovation and technology pathways to drive margins and enhance  Geographic and campus

  10. Slide 10: Combining Two High Quality Businesses

    COMBINING TWO HIGH QUALITY BUSINESSES Meaningful step towards creating the leading listed tertiary education provider Strong strategic rationale  Broader course offering to leverage wider student recruitment network Attractive course  VET & HE mix in growth  Student Recruitment,  Ability to exte

  11. Slide 11: Initial Combined Campus Footprint

    INITIAL COMBINED CAMPUS FOOTPRINT Opportunity to improve campus utilisation, rationalise footprint and continue national expansion UCW campuses Location Quantity Sydney (HQ) 3 Melbourne 2 Brisbane 1 Adelaide 1 Perth 2 Total locations 9 Total classrooms 54 Brisbane RedHill campuses Location Quantity

  12. Slide 12: Capitalising on Student Flows

    CAPITALISING ON STUDENT FLOWS Extending lifetime value of Combined Group’s existing and prospective students Recruitment ELICOS Value creation Third party agents – over 500  Wider recruitment network and more diversified source VET countries Pathway post completion of ELICOS  Broader course offeri

  13. Slide 13: Benefits for Students

    BENEFITS FOR STUDENTS Enhanced student experience to drive reputation and reinvestment Broader course Improved campus Strengthened offering and study experience academic and pathways student support Increased target Elevated global Strong market and reputation employment student flows outcomes UCW L

  14. Slide 14: Combination Perspectives

    COMBINATION PERSPECTIVES Strengthened market positioning with broader product offering and reduced concentration Combined Group Europe Domestic Domestic 12% Domestic Domestic 15% 18% 25% 18% Rest of World FY20 revenue 13% by geography LATAM (ex. Brazil) 25% International International Enhanced sourc

  15. Slide 15: Synergy Potential

    SYNERGY POTENTIAL Immediate and longer term cost and revenue synergies to benefit Combined Group Cost synergy opportunities Revenue synergy potential FY20 Expenses Category Description Total  Leverage combined agent network through broader course offering • Public company costs Corporate • Board ex

  16. Slide 16: Increased Market Relevance

    INCREASED MARKET RELEVANCE Leverage increased scale and diversification for improved access to capital markets and growth opportunities  Increased market capitalisation and liquidity  Potential for broader equity broker coverage and valuation uplift  Improved access to capital and attractive a

  17. Slide 17: Strong Long-Term Sector Growth Thematics

    STRONG LONG-TERM SECTOR GROWTH THEMATICS Opportunity to capitalise on large and growing market with structural shift to private providers Education already represents Australia’s 4th Australia is the 3rd most popular Growth in international student numbers largest export including related services d

  18. Slide 18: Additional Detail

    ADDITIONAL DETAIL Offer  An off-market takeover offer to acquire all RedHill shares for consideration of 4.5 UCW shares for each RedHill share description  The offer is subject to conditions including: − 90% minimum acceptance condition − UCW shareholder approval Offer − No significant transaction

  19. Slide 19: LIMITED

    LIMITED

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