Stadio Holdings Pty Ltd. · JSE:SDO
Stadio Holdings Pty — H1 2019 Earnings Presentation
39 slides from Stadio Holdings Pty's earnings presentation, Aug 26, 2019
Slide 1: 2019 Interim Results
2019 Interim Results 26 & 27 August 2019
Slide 2: Towards STADIO Multiversity
STADIO MULTIVERSITY
Slide 3: Towards STADIO Multiversity
TOWARDS STADIO MULTIVERSITY Faculty of Education & Humanities Faculty of Engineering & Information Technology Faculty of Medicine & Health Sciences Faculty of Agriculture & Environmental Sciences Faculty of Creative Economies Graduate School of Business Faculty of Commerce, Management & Law
Slide 4: Why are we so motivated?
WHY ARE WE SO MOTIVATED?
Slide 5: Why are we so motivated?
WHY ARE WE SO MOTIVATED? Number of students enrolled at higher education institutions has doubled 2000 557 000 2017 1 222 030 Student numbers: Public vs Private PRIVATE 185 046 VS PRIVATE PUBLIC 1 036 984 Private enrolments as percentage of total in SA: 15% The global average is closer to 35% Our pu
Slide 6: The school leaver market
6 THE SCHOOL LEAVER MARKET Number of NSC school leavers (full time) in SA qualifying for post-school education (HC, diploma and degree) vs first year enrolments in public HEI 442 672 +32% 334 718 56% shortfall is compounded annually 168 388 193 282 2009 2010 2016 2017 Qualifying school leavers First
Slide 7: Where do we go?
WHERE DO WE GO?
Slide 8: Faculties and student targets
Faculty of Education & Humanities Faculty of 12 976 STUDENTS Engineering & Information Technology Faculty of Agriculture & Environmental 35 000 STUDENTS Sciences Faculty of Commerce, Management & Law STUDENTS 56 000 Graduate School of Business Faculty of Creative Economies STUDENTS 100 000+ Faculty
Slide 9: Graduate School of Business
GRADUATE SCHOOL OF BUSINESS. STADIO — HOLDINGS — CREATING A MULTIVERSITY 82 ACCREDITED PROGRAMMES SCHOOL OF LAW FACULTY OF CREATIVE ECONOMIES FACULTY OF EDUCATION & HUMANITIES Master of Business Adriistaton Bachelor of Pocing Practice SCHOOL OF FASHION ‘SCHOOL OF EDUCATION Dips in Barking Bachelor B
Slide 10: Student growth to 56 000 by 2026
AD 2D ee ee ee eee 2017 2018 2019 2020 2021 202257 OD 6 NOTE: In order to reach 56 000 students by 2026, we will need to grow our numbers 9% per annum
Slide 11: Multiple brands, STADIO Multiversity
MULTIPLE BRANDS STADIO MULTIVERSITY POSITIONING ACQUISITIONS DEVELOPMENT OF MULTI-FACULTY • Implement a fitting • Finalising the GREENFIELDS CAMPUSES organisational acquisition of • STADIO is acquiring an exciting • Western Cape (1) structure the remaining semi-complete structure in Centurion • Gaut
Slide 12: Our current status
OUR CURRENT STATUS
Slide 13: Our current status
OUR CURRENT STATUS ! ! ! ! ! ! ! ! ! ! ! • Collection of 7 brands • 28 280 enrolled students during Semester 1 • Moving closer to one STADIO Multiversity • Suitable organogram in place @ STADIO HO • Appointment of Co-Chief Operating Officers • Change management started in 2018: • Single view system
Slide 14: Where we want to be
| / WHERE WE a _ WANT TO BE a, = = a ~ x tae tas 2a * a “ia - 7 " + agi Tas * i oe ie. - 2S. SS 4 . * ri ~~ teas ~ a
Slide 15: Where we want to be
WHERE WE WANT TO BE ! ! ! ! ! ! ! ! ! ! ! • One STADIO Multiversity by July 2020 • Will ignite a marketing campaign in 2020 • Using our first multi-faculty campus as a catalyst to determine the scalability thereof • Aim for a minimum growth rate of 9% in student numbers in pursuit of reaching 56 000
Slide 16: Interpreting our model
INTERPRETING OUR MODEL
Slide 17: Interpreting our model
INTERPRETING OUR MODEL ! ! ! ! ! ! ! ! ! ! ! • As a higher education institution we serve various clients • School leavers (all kinds of schools i.e. state, church, ex model C, private and international) • Adult market • Corporate clients • Unit 4 should enable us to strike a wide market • Historica
Slide 18: Interpreting our model (continued)
INTERPRETING OUR MODEL (CONTINUED) ! ! ! ! ! ! ! ! ! ! ! • About Milpark: • Company acquired to get hold of top commerce and management qualifications (27 registered programmes) – targeting mainly adult market and corporate clients • Aim is to re-position its qualifications to also attract the schoo
Slide 19: Financial highlights from June 2018 to June 2019
FINANCIAL HIGHLIGHTS FROM JUNE 2018 TO JUNE 2019 STUDENT NUMBERS REVENUE EBITDAR 28 280 R409m R111m 25 789 R297m R73m 10% 38% 51% CORE HEADLINE EARNINGS HEPS CHEPS 5.1 cps 5.7 cps R46m 3.5 cps 4.0 cps R32m 46% 43% 46%
Slide 20: Centurion multi-faculty campus
CENTURION MULTI-FACULTY CAMPUS ! ! ! ! ! ! ! ! ! ! !
Slide 21: Centurion multi-faculty campus
CENTURION MULTI-FACULTY CAMPUS ! ! ! ! ! ! ! ! ! ! !
Slide 22: Financial information
FINANCIAL INFORMATION
Slide 23: Highlights for 2019
HIGHLIGHTS FOR 2019 • First year in which all the subsidiaries are included in the results • IFRS 16 applicable from 1 January 2019 • Pursuing the acquisition of land and a semi-complete structure in Centurion (to open in 2021) • Accredited first-of-its-kind fully online Post Graduate Diploma in Acc
Slide 24: 2019 Group organogram
2019 GROUP ORGANOGRAM 100% 87.2% 100% 74% 100% 100% 74% 14 PTA • JHB • CPT • KZN • PE • Windhoek CAMPUSES
Slide 25: Towards STADIO Multiversity
TOWARDS STADIO MULTIVERSITY Faculty of Faculty of Faculty of Faculty of Faculty of Faculty of Graduate Commerce, Engineering & Agriculture & Medicine & Creative Education & School of Management Information Environmental Health Economies Humanities Business & Law Technology Sciences Sciences Expansio
Slide 26: Student numbers
STUDENT NUMBERS STUDENT NUMBERS (ACTUAL) STUDENT NUMBERS - EXCLUDING MILPARK (ACTUAL) STUDENT NUMBERS (LIKE-FOR-LIKE) STUDENT NUMBERS - EXCLUDING MILPARK (LIKE-FOR-LIKE) * Restated to exclude semester 2 enrolments
Slide 27: Student numbers (continued)
STUDENT NUMBERS (CONTINUED) ON CAMPUS STUDENTS (ACTUALS) OFF CAMPUS STUDENTS (ACTUALS) ON CAMPUS STUDENTS (LIKE FOR LIKE) OFF CAMPUS STUDENTS (LIKE FOR LIKE) * Restated to exclude semester 2 enrolments
Slide 28: Student number & programme analysis
STUDENT NUMBER & PROGRAMME ANALYSIS * Restated to exclude semester 2 enrolments and to update faculty allocations
Slide 29: Revenue & bad debt expense
REVENUE & BAD DEBT EXPENSE REVENUE (Rm) BAD DEBT EXPENSE AS A % OF REVENUE BAD DEBTS – PRE RECOVERIES BAD DEBTS – POST RECOVERIES
Slide 30: EBITDAR & EBITDA
EBITDAR & EBITDA EBITDAR (Rm) EBITDAR MARGIN % EBITDA (Rm) EBITDA MARGIN %
Slide 31: Impact of IFRS 16
IMPACT OF IFRS 16 STADIO IFRS16 IMPACT IFRS16 IMPACT CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENT OF FINANCIAL POSITION RSig = IFRSiG IRSIG | IFRS‘G Rm Jun 2019 Jun 2019 Impacto | Rm Jun 2019 Jun 2019 pact of Rental expense (23) (6) 7 TOTAL Assets Depreciation & amortisation
Slide 32: Headline earnings
HEADLINE EARNINGS HEADLINE EARNINGS (Rm) HEPS (cps)
Slide 33: Core headline earnings
CORE HEADLINE EARNINGS CORE HEADLINE EARNINGS (Rm) CHEPS (cps)
Slide 34: Statement of financial position
STATEMENT OF FINANCIAL POSITION
Slide 35: Capital invested
CAPITAL INVESTED STADIO DECEMBER CAPITAL INVESTED (Rm) 2017 2018 Acquisitions - 594 440 . Infrastructure development and capital assets 73 272 26 23 Programme development 12 11 15 "1 Total 85 877 481 34 Cumulative investment 85 962 1443 1477
Slide 36: Cash utilisation
CASH UTILISATION STADIO CASH UTILISATION (Rm) JUNE 2019 Cash balance at 1 January 2019 260 Acquisition of subsidiaries (3) Capital expenditure and programme development (34) Repayment of borrowings (5) Repayment of lease liabilities (IFRS16) (10) R131m operating Net cash flow from operations 141 oe
Slide 37: STADIO Multiversity
“Ga STADIO J sol TivERsITY
Slide 38: Thank you
THANK YOU ENKOSI RE A LEBOGA DANKIE
Slide 39: Towards STADIO Multiversity
TOWARDS STADIO IMUICIE IIOWE SSI Ye