ADvTECH Interim Results Analyst Presentation - v18
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`<br />
INTERIM FINANCIAL RESULTS<br />
for the six months ended 30 June 2016<br />
Accelerated growth – ACADEMIC EXCELLENCE<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 1
Financials<br />
Strategy<br />
Acquisitions - Oxbridge and Capsicum<br />
Prospects and Targets<br />
Questions
HEADLINE EARNINGS<br />
`<br />
R’m<br />
200<br />
189,6<br />
150<br />
100<br />
66,5 71,5<br />
81,2<br />
104,4<br />
50<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 3
NORMALISED ` EARNINGS<br />
R’m<br />
200<br />
165,4<br />
150<br />
100<br />
50<br />
67,5 72,2<br />
82,5<br />
109,2<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 4
EXCELLENT RESULTS<br />
`<br />
Performance at a glance<br />
Revenue<br />
28%<br />
Trading<br />
operating profit<br />
33%<br />
Normalised earnings<br />
per share<br />
24%<br />
<strong>Interim</strong> dividends<br />
per share<br />
13.5 cents<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 5
EXCELLENT RESULTS<br />
`<br />
Total enrolment<br />
2016: 54 200<br />
13%<br />
2015: 48 053<br />
School enrolment<br />
2016: 25 062<br />
6%<br />
2015: 23 721<br />
Education sites<br />
2016: 101<br />
5<br />
2015: 96<br />
Tertiary full-time enrolment<br />
2016: 29 138<br />
20%<br />
2015: 24 332<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 6
GROUP REVENUE<br />
`<br />
R’m<br />
1 800<br />
1 200<br />
600<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 7
GROUP TRADING OPERATING<br />
`<br />
PROFIT<br />
R’m<br />
350<br />
300<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 8
GROUP TRADING OPERATING<br />
`<br />
MARGIN<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 9
CASH FLOW `GENERATION<br />
R’m<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
2012 2013 2014 2015 2016<br />
Cash generated from operations<br />
Cash from operations (after working capital)<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 10
SCHOOLS REVENUE<br />
`<br />
R’m<br />
900<br />
800<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
2012 2013 2014 2015 2016<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
11
SCHOOLS OPERATING ` PROFIT<br />
R’m<br />
200<br />
150<br />
100<br />
50<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 12
SCHOOLS OPERATING ` MARGIN<br />
25%<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 13
TERTIARY REVENUE<br />
`<br />
R’m<br />
700<br />
600<br />
500<br />
400<br />
300<br />
200<br />
100<br />
0<br />
2012 2013 2014 2015 2016<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
14
TERTIARY OPERATING ` PROFIT<br />
R’m<br />
120<br />
90<br />
60<br />
30<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 15
TERTIARY OPERATING ` MARGIN<br />
20%<br />
15%<br />
10%<br />
5%<br />
0%<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 16
RESOURCING ` REVENUE<br />
R'm<br />
250<br />
200<br />
150<br />
100<br />
50<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 17
RESOURCING ` OPERATING PROFIT<br />
R'm<br />
15<br />
10<br />
5<br />
0<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 18
RESOURCING ` OPERATING MARGIN<br />
15%<br />
10%<br />
5%<br />
0%<br />
2012 2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 19
REVENUE<br />
`<br />
14%<br />
8%<br />
39%<br />
2015 53%<br />
50% 2016<br />
36%<br />
Schools Tertiary Resourcing<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 20
OPERATING PROFIT<br />
`<br />
3%<br />
37%<br />
31%<br />
6%<br />
2015 2016<br />
63%<br />
60%<br />
Schools Tertiary Resourcing<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 21
`<br />
• Schools below 1% of revenue<br />
• Tertiary average 4% of revenue<br />
• Bad debt levels remain consistent<br />
Well managed<br />
Strong emphasis<br />
- collections<br />
Mindful of consumer<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 22
Financials<br />
Strategy<br />
Acquisitions - Oxbridge and Capsicum<br />
Prospects and Targets<br />
Questions
REGULATIONS<br />
TECHNOLOGY<br />
`<br />
ECONOMY<br />
RISK MANAGEMENT<br />
Excellence through<br />
Specialisation<br />
> Niche market focus<br />
> Benchmarking<br />
> Database<br />
development<br />
Growth<br />
> Organic and Acquisitive<br />
> Channel<br />
> Product<br />
> Segment<br />
> Geographic<br />
Academic Excellence<br />
> Teaching & Learning<br />
> Benchmarking our<br />
performance<br />
> Learning analytics<br />
> International & Employer<br />
recognition<br />
Africa<br />
REPUTATION & STAFF<br />
Customer Focus<br />
> Easy to do business with<br />
us<br />
> Understanding needs<br />
Innovation<br />
> Business Process<br />
> Product / Market<br />
Development<br />
Human &<br />
Capital<br />
Productivity<br />
BEE<br />
DESTRUCTIVE TAKEOVER<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 24
REGULATIONS<br />
TECHNOLOGY<br />
`<br />
ECONOMY<br />
RISK MANAGEMENT<br />
Excellence through<br />
Specialisation<br />
> Niche market focus<br />
> Benchmarking<br />
> Database<br />
development<br />
Growth<br />
> Organic and Acquisitive<br />
> Channel<br />
> Product<br />
> Segment<br />
> Geographic<br />
Academic Excellence<br />
> Teaching & Learning<br />
> Benchmarking our<br />
performance<br />
> Learning analytics<br />
> International & Employer<br />
recognition<br />
Africa<br />
REPUTATION & STAFF<br />
Customer Focus<br />
> Easy to do business with<br />
us<br />
> Understanding needs<br />
Innovation<br />
> Business Process<br />
> Product / Market<br />
Development<br />
Human &<br />
Capital<br />
Productivity<br />
BEE<br />
DESTRUCTIVE TAKEOVER<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 25
REGULATIONS<br />
TECHNOLOGY<br />
`<br />
ECONOMY<br />
RISK MANAGEMENT<br />
Excellence through<br />
Specialisation<br />
> Niche market focus<br />
> Benchmarking<br />
> Database<br />
development<br />
Growth<br />
> Organic and Acquisitive<br />
> Channel<br />
> Product<br />
> Segment<br />
> Geographic<br />
Academic Excellence<br />
> Teaching & Learning<br />
> Benchmarking our<br />
performance<br />
> Learning analytics<br />
> International & Employer<br />
recognition<br />
Africa<br />
REPUTATION & STAFF<br />
Customer Focus<br />
> Easy to do business with<br />
us<br />
> Understanding needs<br />
Innovation<br />
> Business Process<br />
> Product / Market<br />
Development<br />
Human &<br />
Capital<br />
Productivity<br />
BEE<br />
DESTRUCTIVE TAKEOVER<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 26
REGULATIONS<br />
TECHNOLOGY<br />
`<br />
ECONOMY<br />
RISK MANAGEMENT<br />
Excellence through<br />
Specialisation<br />
> Niche market focus<br />
> Benchmarking<br />
> Database<br />
development<br />
Growth<br />
> Organic and Acquisitive<br />
> Channel<br />
> Product<br />
> Segment<br />
> Geographic<br />
Academic Excellence<br />
> Teaching & Learning<br />
> Benchmarking our<br />
performance<br />
> Learning analytics<br />
> International & Employer<br />
recognition<br />
Africa<br />
REPUTATION & STAFF<br />
Customer Focus<br />
> Easy to do business with<br />
us<br />
> Understanding needs<br />
Innovation<br />
> Business Process<br />
> Product / Market<br />
Development<br />
Human &<br />
Capital<br />
Productivity<br />
BEE<br />
DESTRUCTIVE TAKEOVER<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 27
REGULATIONS<br />
TECHNOLOGY<br />
STRATEGIC IMPERATIVES<br />
`<br />
ECONOMY<br />
RISK MANAGEMENT<br />
Excellence through<br />
Specialisation<br />
> Niche market focus<br />
> Benchmarking<br />
> Database<br />
development<br />
Growth<br />
> Organic and Acquisitive<br />
> Channel<br />
> Product<br />
> Segment<br />
> Geographic<br />
Academic Excellence<br />
> Teaching & Learning<br />
> Benchmarking our<br />
performance<br />
> Learning analytics<br />
> International & Employer<br />
recognition<br />
Africa<br />
REPUTATION & STAFF<br />
Customer Focus<br />
> Easy to do business with<br />
us<br />
> Understanding needs<br />
Innovation<br />
> Business Process<br />
> Product / Market<br />
Development<br />
Human &<br />
Capital<br />
Productivity<br />
BEE<br />
DESTRUCTIVE TAKEOVER<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 28
RESOURCING<br />
TERTIARY<br />
SCHOOLS<br />
OUR BRANDS`<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 29
SCHOOLS DIVISION<br />
20%<br />
Revenue to R822 million<br />
25%<br />
Operating Profit to R164 million
SCHOOLS DIVISION<br />
`<br />
1 728<br />
matrics<br />
3 137<br />
total distinctions<br />
2 average<br />
distinctions/candidate<br />
Government<br />
NSC<br />
<strong>ADvTECH</strong><br />
NSC<br />
IEB<br />
<strong>ADvTECH</strong><br />
IEB<br />
<strong>ADvTECH</strong><br />
Group<br />
Matric pass rate 71% 99% 98% 99% 99%<br />
3<br />
matrics<br />
11<br />
matrics<br />
32<br />
matrics<br />
51<br />
matrics<br />
56<br />
matrics<br />
10 distinctions<br />
9 distinctions<br />
8 distinctions<br />
7 distinctions<br />
6 distinctions<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 31
SCHOOLS DIVISION<br />
`<br />
CrawfordSchoolsTM<br />
Every child a masterpiece<br />
• Outstanding academic reputation<br />
• Contemporary education<br />
• Extensive subject choice<br />
• International benchmarking<br />
• Ivy league alumni<br />
20<br />
schools<br />
89%<br />
existing<br />
built capacity utilised<br />
84%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
32
SCHOOLS DIVISION<br />
`<br />
CrawfordSchoolsTM<br />
USA College Visits<br />
Tuesday 13 September 2016<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
33
SCHOOLS DIVISION<br />
`<br />
Trinityhouse<br />
An education beyond expectation<br />
• Christian ethos<br />
• Traditional values<br />
• Excellent growth<br />
• Focus on academics, sports & culture<br />
13<br />
schools<br />
78%<br />
existing<br />
built capacity utilised<br />
44%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
34
SCHOOLS DIVISION<br />
`<br />
Abbotts College<br />
Your Future, Our Passion<br />
• Recognise individual needs<br />
• Specialised methodology<br />
• A unique solution for students who struggle in a<br />
traditional environment<br />
• Incredible results, not previously anticipated<br />
6<br />
schools<br />
75%<br />
existing<br />
built capacity utilised<br />
68%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
35
SCHOOLS DIVISION<br />
`<br />
Junior Colleges<br />
Building the world, one child at a time<br />
• Early childhood development<br />
• International curriculum<br />
• Safe, secure, stimulating environment<br />
8<br />
schools<br />
70%<br />
existing<br />
built capacity utilised<br />
67%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
36
SCHOOLS DIVISION<br />
`<br />
Centurus Colleges<br />
Preparing enlightened minds for life<br />
• Holistic educational experience<br />
• Strong academics, sport and culture<br />
• Development of weekly boarding concept<br />
9<br />
schools<br />
87%<br />
existing<br />
built capacity utilised<br />
70%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
37
SCHOOLS DIVISION<br />
`<br />
Maravest<br />
Investing in the Education of our future (Maragon)<br />
Building the life of a child (Charterhouse)<br />
• Strong Christian focus<br />
• Traditional values<br />
• Varied curriculum<br />
• Focus on academics, sports & culture<br />
14<br />
schools<br />
81%<br />
existing<br />
built capacity utilised<br />
61%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
38
SCHOOLS DIVISION<br />
`<br />
<strong>ADvTECH</strong> Academies<br />
• Community based schools<br />
• Affordable education<br />
• Core academic offering<br />
11<br />
schools<br />
84%<br />
existing<br />
built capacity utilised<br />
59%<br />
ultimate<br />
capacity utilised<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
39
TERTIARY DIVISION<br />
20%<br />
Revenue to R593 million<br />
57%<br />
Operating Profit to R100 million
CONTACT HIGHER ` EDUCATION<br />
VALUE PREMIUM NICHE<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 41
HIGHER EDUCATION<br />
`<br />
Distance education<br />
Higher education<br />
Contact<br />
VALUE PREMIUM NICHE<br />
Training<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 42
TERTIARY DIVISION<br />
`<br />
End Feb 2016<br />
7<br />
brands<br />
20<br />
registered sites<br />
29 138<br />
Full-time students<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 43
TERTIARY DIVISION<br />
`<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 44
TERTIARY DIVISION<br />
`<br />
South Africa's leading private higher<br />
education institute<br />
Our registered academic authority:<br />
• Develop & submit qualifications for accreditation<br />
• Assess, monitor and develop academic and<br />
lecturing staff<br />
• Oversee assessment<br />
• Confer degrees<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 45
TERTIARY DIVISION<br />
`<br />
The IIE<br />
• Curricula relevant to the modern world of<br />
work<br />
• Innovative and supportive teaching<br />
methodologies<br />
• We focus on building student careers<br />
THE IIE IS THE ONLY<br />
SOUTH AFRICAN EDUCATIONAL<br />
INSTITUTION<br />
ACCREDITED BY<br />
THE BRITISH ACCREDITATION<br />
COUNCIL (BAC)<br />
• 4 faculties<br />
• 60 + accredited qualifications<br />
• 11 accredited distance qualifications<br />
• 5 new qualifications<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 46
TERTIARY DIVISION<br />
`<br />
Growth<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 47
TERTIARY DIVISION<br />
`<br />
Student success<br />
3 359<br />
Students graduating<br />
2 924 Graduates placed in 1 st jobs through the<br />
Graduate Placement Programme<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
48
TERTIARY DIVISION<br />
`<br />
Rosebank College<br />
• Affordable<br />
• Quality, high demand qualifications<br />
• Employability<br />
• Digitally enabled<br />
• Blended learning<br />
• Enrolments: 418 students<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 49
TERTIARY DIVISION<br />
`<br />
VEGA<br />
• Vega’s mantra – wisdomwithmagic<br />
• Qualifications in brand building,<br />
creative communication and media<br />
• High industry credibility and<br />
reputation<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 50
TERTIARY DIVISION<br />
`<br />
Varsity College<br />
• Premium brand<br />
• Applying the best of teaching and<br />
learning methodologies<br />
• Student-centric approach<br />
• 4 Schools:<br />
• Humanities<br />
• Commerce<br />
• Social Sciences<br />
• Information Technology<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 51
TERTIARY DIVISION<br />
`<br />
Business School at Varsity College<br />
• Short learning programmes<br />
• Part-time study<br />
• Adult learning – theory and practical<br />
application<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 52
TERTIARY DIVISION<br />
`<br />
Forbes Lever Baker<br />
• Premier tuition support provider for<br />
accounting qualifications<br />
• Superb pass rate<br />
• Top CTA level 2 student in 2015<br />
95%<br />
pass rate for 2015<br />
SAICA ITC board<br />
exam achieved by<br />
CTA students<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 53
TERTIARY DIVISION<br />
`<br />
The Design School of Southern Africa<br />
• Education in design – graphic,<br />
fashion and interior<br />
• Vocational preparedness via<br />
academic excellence and industry<br />
experience<br />
• Inspirational, adaptable and<br />
innovative learning environment<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 54
TERTIARY DIVISION<br />
`<br />
Enrolment Growth: Full Qualifications<br />
35 000<br />
30 000<br />
29 138<br />
25 000<br />
24 332<br />
20 000<br />
17 210<br />
20 113<br />
15 000<br />
10 000<br />
5 000<br />
0<br />
2013 2014 2015 2016<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 55
RESOURCING DIVISION<br />
116%<br />
Revenue to R224 million<br />
<br />
30% Operating Profit to R9 million
RESOURCING ` DIVISION<br />
2016<br />
12<br />
brands<br />
28<br />
branches<br />
3 759<br />
2015 placements<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 57
CALIBRE AND ` QUALITY OF OUR<br />
PEOPLE<br />
Our intellectual capital and our skills are our greatest assets<br />
44%<br />
of staff are<br />
professionally qualified<br />
44<br />
Doctorates<br />
421<br />
Masters degrees<br />
593<br />
Honours degrees<br />
1 334<br />
Degrees<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 58
INTERNATIONAL ` FINANCE CORP<br />
World Bank Group<br />
R320m<br />
Invested in <strong>ADvTECH</strong><br />
=<br />
R190m<br />
+<br />
R130m<br />
Share issue<br />
Acquired in market<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 59
INTERNATIONAL ` FINANCE CORP<br />
World Bank Group<br />
• Support our expansion strategy in Africa<br />
• Their mandate – Invest and develop in Africa<br />
• Benefits:<br />
• Existing footprint in Africa<br />
• Established relationships with private and<br />
government<br />
• Local market knowledge<br />
• Credibility<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 60
Financials<br />
Strategy<br />
Acquisitions - Oxbridge and Capsicum<br />
Prospects and Targets<br />
Questions
SOUTH AFRICAN<br />
DISTANCE EDUCATION `<br />
MARKET<br />
Distance Education growth<br />
420 000<br />
360 000<br />
300 000<br />
2009 2010 2011 2012 2013<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 62
ESTIMATED SIZE OF DISTANCE<br />
EDUCATION IN ` SOUTH AFRICA<br />
938 201 total students in South Africa<br />
Higher Education<br />
Contact<br />
Distance<br />
• Africa and India<br />
– fastest growing<br />
markets for distance<br />
• E-learning trends<br />
– 15,2% growth in Africa<br />
Distance: 381 506 Contact: 556 695<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 63
ACQUISITIONS `<br />
20 000<br />
students (approx.)<br />
distance<br />
education<br />
• Call centre<br />
• Student support<br />
• Logistics<br />
• Marketing<br />
51%<br />
acquired<br />
50+<br />
courses offered<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 64
ACQUISITIONS `<br />
Oxbridge growth<br />
R’000<br />
120 000<br />
25 000<br />
100 000<br />
80 000<br />
20 000<br />
15 000<br />
60 000<br />
40 000<br />
20 000<br />
10 000<br />
5 000<br />
0<br />
2014 2015 2016<br />
0<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 65
HOSPITALITY ` AND TOURISM<br />
• Employment in SA: Direct and indirect jobs in the sector are estimated to be 1.2m.<br />
• World Economic Forum estimates Sub-Saharan Africa will create 3.2m tourism jobs between 2012-<br />
2022.<br />
• WEF expects African tourism employment to grow by 2.3% per annum.<br />
• WEF report: 8m people in Africa are currently employed by tourism.<br />
• Sector has been identified by the SA Government as a key area for job creation.<br />
• The catering industry makes up about 17% of the R43bn expenditure in SA on Food and Beverage.<br />
(Source: South African Tourism 2013 Annual Performance, PWC 2013 industry report, PWC Hospitality<br />
Outlook, STATSSA Food & Beverage Stats 2014, Frontiermarketnework.com; Business Day,<br />
www.howwemadeitinafrica.com)<br />
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2015<br />
66
ACQUISITIONS `<br />
Culinary arts<br />
education<br />
600 Full-Time<br />
600 Part-Time<br />
6 campuses<br />
Endorsements:<br />
City and Guilds,<br />
World Association of<br />
Chef’s Societies<br />
Acquisition status:<br />
100% acquired<br />
by <strong>ADvTECH</strong><br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 67
ACQUISITIONS `<br />
Capsicum historical performance<br />
R’000<br />
70 000<br />
60 000<br />
50 000<br />
40 000<br />
30 000<br />
20 000<br />
10 000<br />
0<br />
2014 2015 2016<br />
700<br />
680<br />
660<br />
640<br />
620<br />
600<br />
580<br />
560<br />
540<br />
520<br />
500<br />
Enrolments<br />
Revenue<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 68
Financials<br />
Strategy<br />
Acquisitions - Oxbridge and Capsicum<br />
Prospects and Targets<br />
Questions
SCHOOLS DIVISION<br />
`<br />
Growth targets<br />
2020<br />
R3bn<br />
revenue<br />
R650m<br />
EBIT<br />
40 000<br />
enrolments<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 70
TERTIARY DIVISION<br />
`<br />
Growth targets<br />
2020<br />
R2.2bn<br />
revenue<br />
R450m<br />
EBIT<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 71
AFRICA<br />
`<br />
30%<br />
Revenue<br />
2020<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 72
NEPS<br />
`<br />
100 cps (NEPS)<br />
Stretch target<br />
2018<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 73
PROSPECTS<br />
`<br />
Total enrolments<br />
HEPS<br />
60 000<br />
55<br />
55 000<br />
54 200<br />
50<br />
51<br />
50 000<br />
48 053<br />
45<br />
45 000<br />
41<br />
40 000<br />
40<br />
39<br />
35 000<br />
33 654<br />
35<br />
35<br />
30 000<br />
2014 2015 2016<br />
30<br />
2012 2013 2014 2015<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 74
DIVIDEND<br />
`<br />
<strong>Interim</strong> dividends<br />
per share<br />
13.5 cents<br />
• Significant investments in pipeline<br />
• Recent fundraising activities<br />
• Retaining cash to support capex<br />
pipeline and investments<br />
• Above inflation in dividend<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 75
DIVIDEND HISTORY<br />
`<br />
Cents<br />
20<br />
15<br />
10<br />
14<br />
15 15<br />
10 10,5 11<br />
12,5<br />
17<br />
13,5<br />
5<br />
0<br />
2012 2013 2014 2015 2016<br />
<strong>Interim</strong><br />
Final<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 76
ADVTECH = GOOD ` INVESTMENT<br />
Strong<br />
performance<br />
Good<br />
Growth<br />
Opportunities<br />
Return on<br />
investment<br />
ahead of cost of<br />
capital<br />
Clear focus on<br />
Academic Excellence<br />
Cash<br />
Generation<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 77
ADVTECH SHARE ` PRICE<br />
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2016 78
Financials<br />
Strategy<br />
Acquisitions - Oxbridge and Capsicum<br />
Prospects and Targets<br />
Questions
Questions
Thank you
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