ANNUAL FINANCIAL RESULTS 2016 2016.pdf · HE IIE • DHET (Department of Higher Education and...
Transcript of ANNUAL FINANCIAL RESULTS 2016 2016.pdf · HE IIE • DHET (Department of Higher Education and...
ANNUAL FINANCIAL RESULTSFOR THE YEAR ENDED 31 DECEMBER 2016
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 2
FINANCIAL HIGHLIGHTS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 3
EXCELLENT RESULTSPERFORMANCE DRIVERS
Total enrolment2016: 53 337
13%2015: 47 209
School enrolment2016: 24 199
6%2015: 22 877
Education sites2016: 98
5%2015: 93
Tertiary full qualificationenrolment
2016: 29 138
20%2015: 24 332
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 4
GROUP REVENUE
1 687 1 7661 932
2 708
3 353
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2012 2013 2014 2015 2016
R’m
Axis Title
+24%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 5
GROUP OPERATING MARGIN
11.9%12.6
13.3%
16.6%
18.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2012 2013 2014 2015 2016
R’m
Axis Title
CONTINUED IMPROVEMENT
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 6
TRADING OPERATING PROFIT
200222
256
448
585
0
100
200
300
400
500
600
700
2012 2013 2014 2015 2016
R’m
+30%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 7
HEADLINE EARNINGS PER SHARE
33.637.6
40.3
51.0
71.1
0
10
20
30
40
50
60
70
80
2012 2013 2014 2015 2016
Cen
ts
Axis Title
+39%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 8
SCHOOLS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 9
SCHOOLS REVENUE
739819
915
1 432
1 644
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2012 2013 2014 2015 2016
R’m
Axis Title
+15%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 10
SCHOOLS OPERATING PROFIT
148 157 162
299
345
0
50
100
150
200
250
300
350
400
2012 2013 2014 2015 2016
R’m
Axis Title
+16%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 11
SCHOOLS OPERATING MARGIN
20.0%
19.2%
17.7%
20.9% 21.0%
16%
17%
18%
19%
20%
21%
22%
2012 2013 2014 2015 2016
Axis Title
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 12
TERTIARY
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 13
TERTIARY REVENUE
739 751827
982
1 253
0
200
400
600
800
1,000
1,200
1,400
2012 2013 2014 2015 2016
R’m
Axis Title
+28%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 14
TERTIARY OPERATING PROFIT
3248
84
134
223
0
50
100
150
200
250
2012 2013 2014 2015 2016
R’m
Axis Title
+67%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 15
TERTIARY OPERATING MARGIN
4.4%
6.4%
10.2%
13.7%
17.8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
2012 2013 2014 2015 2016
Axis Title
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 16
RESOURCING
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 17
RESOURCING REVENUE
211 200 194
297
461
0
50
100
150
200
250
300
350
400
450
500
2012 2013 2014 2015 2016
R’m
Axis Title
+55%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 18
RESOURCING OPERATING PROFIT
22
18 18
29
20
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
R’m
Axis Title
-31%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 19
RESOURCING OPERATING MARGIN
10.4%
9.1% 9.4%9.8%
4.4%
0%
2%
4%
6%
8%
10%
12%
2012 2013 2014 2015 2016
Axis Title
9.2%
Exclude effects of acquisitions
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 20
2016
REVENUE CONTRIBUTIONSEGMENTAL OVERVIEW
Schools
Tertiary
Resourcing
2015
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 21
OPERATING PROFIT CONTRIBUTIONSEGMENTAL OVERVIEW
Schools
Tertiary
Resourcing
2016 2015
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 22
CASH FLOW GENERATION
332363
286
556
749
186 200
93
223
302
0
100
200
300
400
500
600
700
800
2012 2013 2014 2015 2016
R’m
Axis Title
Cash generated by operations Cash from operations
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 23
NET CASH POSITION
-62-202
-436
-1 157-1 110
-1,400
-1,200
-1,000
-800
-600
-400
-200
0
2012 2013 2014 2015 2016
R’m
Axis Title
DECREASED BORROWINGS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 24
BORROWING CAPACITY
1.1
1.6
2.6
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Current borrowings Current facilities Borrowing capacity (3.5 xEBITDA)
Axi
s R
’bn
Axis Title
Series 1HeadroomR1.5 billion
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 25
DEBTORS MANAGEMENT
Well managed Strong emphasison collections
Mindful of consumer
• Revenue ↑ 24%• Debtors ↑ 22%• Schools below 1% of revenue• Tertiary average 4% of revenue• Bad debt levels remain
consistent
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 26
MARKET CAP AT YEAR END
2 612 2 768
3 665
7 728
9 347
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2012 2013 2014 2015 2016
R’m
Axis Title
+21%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 27
EXCELLENT RESULTSPERFORMANCE SUMMARY
Revenue
24%
Normalised earnings per share
24%
Trading operating profit
30%
Dividends per share
32.5cents
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 28
STRATEGY
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 29
STRATEGIC IMPERATIVES
Innovation > Business Process> Product / Market
Development
Africa
Customer Focus> Easy to do business with
us> Understanding needs
Academic Excellence> Teaching & Learning> Benchmarking our
performance> Learning analytics> International & Employer
recognition
Growth> Organic and Acquisitive> Channel> Product> Segment> Geographic
RISK MANAGEMENT
REGU
LATI
ONS
TECH
NOLO
GY
ECONOMY
REPUTATION& STAFF
DESTRUCTIVE TAKEOVERBEE
Human &CapitalProductivity
Excellence through Specialisation> Niche market focus> Benchmarking> Database
development
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 30
STRATEGIC IMPERATIVES
Innovation > Business Process> Product / Market
Development
Africa
Customer Focus> Easy to do business with
us> Understanding needs
AcademicExcellence> Teaching & Learning> Benchmarking our
performance> Learning analytics> International & Employer
recognition
Growth> Organic and Acquisitive> Channel> Product> Segment> Geographic
RISK MANAGEMENT
REGU
LATI
ONS
TECH
NOLO
GY
ECONOMY
REPUTATION& STAFF
DESTRUCTIVE TAKEOVERBEE
Human &CapitalProductivity
Excellence through Specialisation> Niche market focus> Benchmarking> Database
development
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 31
ACADEMIC EXCELLENCE
BENCHMARKINGPERFORMANCE
LEARNINGANALYTICS
INTERNATIONAL&
EMPLOYERRECOGNITION
TEACHING & LEARNING
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 32
THE IIE
THE INDEPENDENT INSTITUTE OF EDUCATION
South Africa’s leading, most accredited and largest “private university” or private higher education institute. Established in 2005
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 33
THE IIE
• DHET (Department of Higher Education and Training)
• HEQC (Higher Education Quality Committee)
• SAQA (South African Qualification Authority)
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 34
THE IIE
Private Universities
Naming convention is problematic
Public Universities
Public perception confusion
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 35
THE IIE
Academic experts
StudentSupportServices
Productinnovation
Newqualifications
&development
Research
Senate
Centralisedstudent supportservice
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 36
THE IIE
IIE learn platform
BlackboardLMS
100+academics
GEPwork readiness
13 newqualifications
Focus onteaching &
learning experience
57 registered& accreditedqualifications
Faculties
Commerce
Humanities
HumanitiesSocial Sciences
Information+
communicationtechnologies
Law
Education
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 37
ACADEMIC EXCELLENCE
BENCHMARKINGPERFORMANCE
Matric results
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 38
ACADEMIC EXCELLENCE
MATRICULANTS 1 636
DISTINCTIONS 2 562
1
AVERAGE DISTINCTIONS 1.6Per candidate
2016 MATRIC RESULTS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 39
ACADEMIC EXCELLENCE
6 DISTINCTIONS08
8 DISTINCTIONS
7 DISTINCTIONS
22 STUDENTS
40 STUDENTS
43 STUDENTS
1 STUDENT10 DISTINCTIONS
4 STUDENT9 DISTINCTIONS
6 DISTINCTIONS08
4 STUDENTS9 DISTINCTIONS
8 DISTINCTIONS
7 DISTINCTIONS
22 STUDENTS
40 STUDENTS
43 STUDENTS
2016 MATRIC RESULTS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 40
ACADEMIC EXCELLENCE
1.3
MARAVEST BEFORE:
Average Distinctions per candidate
1.7
MARAVEST AFTER 1 Yr:
Average Distinctions per candidate
ADDING VALUE
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 41
ACADEMIC EXCELLENCE
84% 16% 72% 15%
Averagemodule
distinction rate
Average throughput pass
rate
Average dropout rate
Average module pass
rate
TERTIARY
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 42
INTERNATIONAL BENCHMARKING
BENCHMARKINGPERFORMANCE
BENCHMARKINGPERFORMANCE
INTERNATIONAL BENCHMARKING
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 43
INTERNATIONAL AND EMPLOYER RECOGNITIONGRADUATE PLACEMENT
81%Employed
within6 months
International &
Employerrecognition
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 44
INTERNATIONAL AND EMPLOYER RECOGNITION
International &
Employerrecognition
GRADUATE PLACEMENT
3223 of our graduates were placed in first time employment through the Graduate Empowerment Programme (GEP)
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 45
INTERNATIONAL AND EMPLOYER RECOGNITION
INTERNATIONAL MATHEMATICS & SCIENCE OLYMPIAD 2016
13Medals
Jakarta, Indonesia
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 46
CRAWFORDSCHOOLS™INTERNATIONAL AND EMPLOYER RECOGNITION
USA college visits
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 47
INTERNATIONAL AND EMPLOYER RECOGNITION
Loerie Awards
• 4 Silver • 3 Bronze
Pendoring
• 2 Silver
Golden Muse Award
Decorex 2016
• Winner
Nestle Tertiary Media & Creative Choice Award
• Winner
SA Fashion Week
• 2x Finalists
Sappi Goldpack Award
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 48
STRATEGIC IMPERATIVES
Innovation > Business Process> Product / Market
Development
Africa
Customer Focus> Easy to do business with
us> Understanding needs
AcademicExcellence> Teaching & Learning> Benchmarking our
performance> Learning analytics> International & Employer
recognition
Growth> Organic and Acquisitive> Channel> Product> Segment> Geographic
RISK MANAGEMENT
REGU
LATI
ONS
TECH
NOLO
GY
ECONOMY
REPUTATION& STAFF
DESTRUCTIVE TAKEOVERBEE
Human &CapitalProductivity
Excellence through Specialisation> Niche market focus> Benchmarking> Database
development
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 49
GROWTH
ORGANIC & ACQUISITIVE
PRODUCT
SEGMENT
CHANNEL
GEOGRAPHIC
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 50
ORGANIC & ACQUISITIVE GROWTH
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 51
30 190
33 654
47 209
53 337
60 176
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015 2016 2017
Axis Title
Total Full-Time Enrolment History (Feb)
GROWTHTOTAL GROWTH END FEB
Tertiary full qualifications
+13%
Schools
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 52
GROWTH: SCHOOLS DIVISIONEND FEB
12 980 13 541
22 87724 199
26 713
0
5,000
10,000
15,000
20,000
25,000
30,000
2013 2014 2015 2016 2017
Axis Title
Schools Enrolment History (Feb)
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 53
GROWTH: TERTIARY DIVISIONEND FEB
17 21020 113
24 332
29 138
33 463
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2013 2014 2015 2016 2017
Axis Title
Tertiary Full Qualification Enrolment History (Feb)
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 54
GROWTHGROUP
2016 20172015
98
47 209
118
60 176
93
53 337
Students Students Students
Brands
Sites
2015
Sites Sites
BrandsBrands
262523
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 55
Name Status Students Location Positioning
Rosebank College Mega Campus
Higher education +7 400Braamfontein,
GautengAffordable
higher education
Rosebank CollegeConnected Campus
Higher education +400Blended learning,
Polokwane, Limpopo
Affordablehigher education
Founders Hill College(ADvTECH Academies)
Pre-primary,
primary,
high school
+408Modderfontein,
GautengMid-fee
schooling sector
Copperleaf College (2017)(ADvTECH Academies)
Pre-primary,
primary
+180Centurion,
GautengMid-fee
schooling sector
GROWTH: ORGANIC
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 56
Name Status Students Location Positioning Boarding
Summit College
Pre-primary,
primary,
high school
+582Kyalami,
GautengPremium fee Yes
Glenwood House
(2017)
Pre-primary,
primary,
high school
+769
George,
Western
Cape
Premium fee Yes
Elkanah House
(2017)
Pre-primary,
primary,
high school
1 366
Cape Town,
Western
Cape
Premium fee
GROWTH: ACQUISITIVESCHOOLS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 57
Name Status Students Location Positioning
Capsicum Culinary Studio (100%)
Largest chef school SA
Face to face +800National footprint
Hospitality & tourism sector
Oxbridge Group (51%) Distance 21 000 DistanceBroad
spectrum
University of Africa (2017) (51%) Distance 2 000
Distance (sub-Saharan
Africa clientele)
Broadspectrum
GROWTH: ACQUISITIVETERTIARY
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 58
Distance education
Blended learning
CHANNEL
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 59
GROWTH: CHANNELSA DISTANCE EDUCATION MARKET
Source: VitalStats 2014 Public Higher Education
60%
40%
Distance Education Market 2014
Contact Distance
Distance: 370 000
Contact:590 000
Total:960 000
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 60
GROWTH: CHANNELDISTANCE EDUCATION
Distance learningprovider
21 000 students(end 2016)
Oxbridge Academy
51% Acquisition
14 800 15 500
21 000
2014 2015 2016
Axis Title
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 61
GROWTH: CHANNELDISTANCE EDUCATION
University of Africa
Lusaka, Zambia
2 000+ Students
51% Acquisition
Distance learning providerDegree, Honours,Phd LeadershipIn Africa’s development
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 62
GROWTH: CHANNELBLENDED LEARNING
Rosebank College Connected Campus
Connected Campus
– Polokwane (2016)
– Bloemfontein (2018)– Pietermaritzburg (2018)
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 63
13 New qualifications in 2016
16 New qualificationsAccreditation in progress
PRODUCT GROWTH
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 64
PRODUCT GROWTH2016
IIE Qualification Name (offered for the first time in 2016) Degree Certificate
1 Bachelor of Commerce (Distance)
2 Bachelor of Public Administration (Distance)
3Bachelor of Education in Foundation Phase Teaching
4Bachelor of Education in Intermediate Phase Teaching
5 Bachelor of Commerce in Economics
6 Bachelor of Accounting
ACCREDITED QUALIFICATIONS OFFERED FOR THE FIRST TIME IN 2016
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 65
PRODUCT GROWTH2016
IIE Qualification Name (offered for the first time in 2016) Degree Certificate
7Bachelor of Computer and Information Sciences in Network Engineering
8Bachelor of Commerce Honours in Strategic Brand Management
9 Bachelor of Arts Honours in Communication
10Bachelor of Arts Honours in Strategic Brand Communication
11Higher Certificate in Business Management (Contact)
12Higher Certificate in Business Management(Distance)
13 Higher Certificate in Legal Studies
ACCREDITED QUALIFICATIONS OFFERED FOR THE FIRST TIME IN 2016
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 66
PRODUCT GROWTHIN PROGRESS
IIE Qualification Name (offered for the first time in 2016) Degree Certificate
1Bachelor of Business in Logistics and Supply Chain Management (Contact)
2Bachelor of Arts in Strategic Brand Communication (Distance)
3Bachelor of Business Administration in Marketing (Contact)
4Bachelor of Business Administration in Marketing (Distance)
5Bachelor of Commerce in Strategic BrandManagement (Distance)
6 Bachelor of Laws (Contact)
7 Bachelor of Arts in Law (Contact)
8Bachelor of Arts Honours in Psychology (Contact)
PROGRAMMES IN THE PIPELINE FOR 2018
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 67
PRODUCT GROWTHIN PROGRESS
IIE Qualification Name (offered for the first time in 2016) Degree Certificate
9Postgrad Certificate in Education in Senior Phase and Further Education and Training Teaching (Contact)
10Postgrad Certificate in Education in Senior Phase and Further Education and Training Teaching (Distance)
11Higher Certificate in Logistics and Supply Chain Management (Contact)
12Higher Certificate in Early Childhood Care and Education (Contact)
13Higher Certificate in Early Childhood Care and Education (Distance)
14 Higher Certificate in Travel (Contact)
15 Higher Certificate in Travel (Distance)
16Higher Certificate in Human Resource Practices (Distance)
PROGRAMMES IN THE PIPELINE FOR 2018
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 68
Hotel & Tourism Industry sector Mid-Fee Schools Remedial Schools
SEGMENT GROWTH
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 69
SEGMENT GROWTH
Capsicum Culinary Studio
868 students (End 2016)
100% Acquisition
Largest chef school of its kind in SA
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 70
Mid Fee Schools
• Growing market segment• Greenfield developments
• Founders Hill• Copperleaf• Mooikloof
• 100% acquisition• GIS• Kathstan
SEGMENT GROWTH
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 71
Remedial Schools
SEGMENT GROWTH
• Assisted learning• Learning difficulties
• Select period of time for students
• Pre-primary and preparatory;
• Gauteng, Northern suburbs• Opens 2018
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 72
GEOGRAPHIC GROWTH
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 73
GEOGRAPHIC GROWTH: SCHOOLS
Elkanah House
Oxbridge
Glenwood
House
Summit
Capsicum
WESTERN CAPE
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 74
GEOGRAPHIC GROWTH: TERTIARY
University of
Africa
AFRICA
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 75
GEOGRAPHIC GROWTH
Resourcing
AFRICA HR SOLUTIONSCA GLOBAL
Networks in 40+ countries
Payroll niche R160 milliongross revenue
$ based
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 76
STRATEGIC IMPERATIVES
Innovation > Business Process> Product / Market
Development
Academic Excellence> Teaching & Learning> Benchmarking our
performance> Learning analytics> International & Employer
recognition
Growth> Organic and Acquisitive> Channel> Product> Segment> GeographicExcellence through
Specialisation> Niche market focus> Benchmarking> Database
development
RISK MANAGEMENT
REGU
LATI
ONS
TECH
NOLO
GY
ECONOMY
REPUTATION& STAFF
DESTRUCTIVE TAKEOVERBEE
Africa
Human &CapitalProductivity
Customer Focus> Easy to do business with
us> Understanding needs
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 77
INNOVATIONGROUP
• Access• Value
Proposition• App-based
service delivery
Customer Experience
• Constant development and investment in systems and cloud based technologies
IT Systems
Shared Services
Consistent development of our product offering
Product Development
I T S Y S T E M S
P R O D U C T D E V E L O P M E N T
S H A R E DS E R V I C E S
C U S T O M E RE X P E R I E N C E
I N N O V A T I O N
• Streamlining service and knowledge sharing throughout the business
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 78
INNOVATION: SHARED SERVICESSTRATEGY ENABLER
International benchmarkHead Office costs as % of revenue
8-12%
Average 12%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 79
INNOVATION: SHARED SERVICES
0
2
4
6
8
10
12
14
16
18
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
%
Year
H/O Costs as % of Rev
STRATEGY ENABLER
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 80
INNOVATION: SHARED SERVICESSTRATEGY ENABLER
Average 12%ADvTECH target to average 10%
Average 12%
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 81
INNOVATION
PRODUCT INNOVATION
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 82
PRODUCT INNOVATIONBACHELOR IN COMPUTER AND INFORMATION SCIENCE: GAME DESIGN
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 83
STRATEGIC IMPERATIVES
Innovation > Business Process> Product / Market
Development
Academic Excellence> Teaching & Learning> Benchmarking our
performance> Learning analytics> International & Employer
recognition
Growth> Organic and Acquisitive> Channel> Product> Segment> GeographicExcellence through
Specialisation> Niche market focus> Benchmarking> Database
development
RISK MANAGEMENT
REGU
LATI
ONS
TECH
NOLO
GY
ECONOMY
REPUTATION& STAFF
DESTRUCTIVE TAKEOVERBEE
Africa
Human &CapitalProductivity
Customer Focus> Easy to do business with
us> Understanding needs
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 84
CUSTOMER FOCUS
1 2
EASYTO-DO
BUSINESS WITH US
UNDERSTANDING NEEDS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 85
CUSTOMER FOCUS
MOSAIC APP• Courses and modules• Communication | Lecturers/Students• Collaboration | Students• E-mails• Online library• Ordering and delivery of books• IIE Marque | Qualification verification +
student academic portfolio• Calendars and rosters• Brand news feeds
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 86
CUSTOMER FOCUS
1 Platform
LMS
Cost saving efficiency
Personalised information
Unique branding
Safe & secure
Enhanced student
experience
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 87
STRATEGIC IMPERATIVES
Innovation > Business process> product/market
development
Africa
Customer focus> Easy to do business with
us> Understanding needs
Academicexcellence> Teaching & learning> Benchmarking our
performance> Learning analytics> International & employer
recognition
Growth> Organic and acquisitive> Channel> Product> Segment> Geographic
Excellence through specialisation> Niche market focus> Benchmarking> Database
development
RISK MANAGEMENT
REG
ULA
TIO
NS
TEC
HN
OLO
GY
ECONOMY
REPU
TATION
& STAFF
BEE
Human &capitalproductivity
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 88
HUMAN CAPITAL PRODUCTIVITY
HUMAN CAPITALPRODUCTIVITY
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 89
HUMAN AND CAPITAL PRODUCTIVITY
Management&
LeadershipDevelopment
Deloitte Best
Company to Work For:
from silver to gold
Top Employer:improved
score from 66% to 74%
91% OHS score
PROVIDING A PRODUCTIVE WORKING ENVIRONMENT
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 90
HUMAN CAPITAL PRODUCTIVITY
Head Office - GoldTertiary - SilverSchools - GoldResourcing - Platinum
ATTRACT
Deloitte Survey
RETAIN
Top Employer
BEST EMPLOYEES
Certified for the 2nd
consecutiveyear
RETAINING TALENT
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 91
PROSPECTS
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 92
PROSPECTS
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2014 2015 2016 2017 2018 2019 2020
R’m
Axis Title
Schools Projected Revenue1
TARGET: SCHOOLS DIVISION2020
R3bn
revenue
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 93
PROSPECTS
0
500
1000
1500
2000
2500
2014 2015 2016 2017 2018 2019 2020
R’m
Axis Title
Tertiary projected revenue1
TARGET: TERTIARY DIVISION
2020
R2.2bnrevenue
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 94
PROSPECTS
30 190
33 654
47 209
53 337
60 176
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015 2016 2017
ADvTECH Total Full-Time Enrolments Feb
Dis
tan
ce
21 000
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 95
PROSPECTSGROUP REVENUE
6% of revenue
generated outside
SA’s borders
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 96
PROSPECTSTARGET: REVENUE
30%revenue
2020
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 97
PROSPECTSTARGET: NEPS
100 cps (NEPS)
Stretch target2018
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 98
PROSPECTSADVTECH = GOOD INVESTMENT
Strong performance
Good growth opportunities
Return on investment ahead of cost of capital
Cash generation
Clear focus on academic excellence
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 99
PROSPECTSADVTECH SHARE PRICE
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 100
PROSPECTSDIVIDEND
• Significant investments in pipeline
• Recent fundraising activities
• Retaining cash to support capex pipeline and investments
• Above inflation in dividend
32.5c
DIVIDENDS PER SHARE
ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016 PAGE 101
QUESTIONS
THANK YOU