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1 ANNUAL RESULTS PRESENTATION FOR YEAR ENDED 31 DECEMBER 2024 24 March 2025
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3 3 QUESTIONS & ANSWERS REFLECTING ON A SOLID YEAR 2024 YEAR-END FINANCIAL RESULTS POSITIONED FOR GROWTH PRESENTATION OVERVIEW
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4 OUR PURPOSE IS TO EMPOWER THE NATION BY WIDENING ACCESS TO QUALITY HIGHER EDUCATION THROUGH OUR 3 DISTINCT PRIVATE HIGHER EDUCATION INSTITUTIONS WE’RE IN THE TOP LARGEST HIGHER EDUCATION PROVIDERS IN SOUTH AFRICA WITH OVER 50 000 STUDENTS
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5 • Strong results despite continuing tough economic times • Student enrolments exceeded 50 000 – student growth strategy is working • Good progress made in debtors’ processes and collections • Operating efficiencies starting to show • Exciting new programmes accredited • Commenced construction of our new comprehensive campus in Durbanville • New CEO of AFDA appointed (Diaan Lawrenson) positioningthis institution for growth REFLECTING ON A SOLID YEAR
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6 OUR SUCCESS IS DEPENDANT ON OUR PEOPLE
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7 { STRONG 2024 FINANCIAL RESULTS GROWTH Investing for future growth Higher Education takes patience Semester 1 student numbers up 10% JUN 2023: 42 874 47 024 DEC 2023: 46 508 Semester 2 student numbers up 8% 50 039 DEC 2023: R1 414m Revenue up 14% R1 612m EBITDA Margin 28.4% DEC 2023: 27.6% Profit after tax up 17% DEC 2023: R236m R276m Earnings per share up 26% DEC 2023: 24.5 cps 30.9cps Core headline earnings per share up 28% DEC 2023: 24.6 cps 31.5cps Cash generated from operations up 29% DEC 2023: R360m R465m Dividend per share up 51% DEC 2023: 10.0cps 15.1cps Return on equity up 16% DEC 2023: 11.7% 13.6% DEC 2023: 27.6%
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8 ISHAK KULA CHIEF FINANCIAL OFFICER 2024 YEAR - END FINANCIAL RESULTS
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9 • We produced solid results, with revenue growth of 14% to R1 612 million, underpinned by good overall student growth of 8% • EBITDA margins improved to 28.4% (2023: 27.6%) • Financial performance supported by good cash generation, with cash generated by operations up 29% to R465 million • Loss allowance margin for the year improved to 8.7% (2023:9.0%) • Key capital and other investments during the year of R106 million. Key items – • R16 million in solar installations • R32 million in Durbanville campus and related sports facilities • R29 million in curriculum and software developments • Sucessfully relocated School of Fashion students from Randburg & Hatfield to the Centurion comprehensive campus. Impairment of R7 million recognised on the Randburg property, which is classified as held for sale at year end. SUMMARY 2024
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10 SUMMARY 2024 CONTINUED • Transactions with Milpark Education non-controlling interest • Acquired an additional 0.76% effective interest for R5.9 million • Paid for the R117.5 million equity interest acquired from Brimstone Investment Corporation in December 2023 Milpark Education minority interest is 16.14% • Share issues and purchases • Purchased and cancelled 3.089 million (R15 million) SDO shares • Utilised 3.7 million shares treated as treasury shares, with a further 872k (R5.3 million) shares issued, towards the settlement of the Group’s share incentive scheme • Group remains committed to avoiding shareholder dilution • A dividend of R84.7 million was paid to shareholders and R11.3 million to minorities • We have a strong balance sheet, with no external debt (other than IFRS 16 leases) • Dividend of 15.1cps (R128 million) declared on 24 March 2025, to be paid on 29 April 2025
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11 √ 26 334 28 280 31 414 35 040 39 167 42 874 47 024 0 10000 20000 30000 40000 50000 JUN 18 JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 EXCLUDING CYCLICAL B2B NEW CONTACT LEARNING STUDENT NUMBER GROWTH 17 % 14 % JUN 18 JUN 24 10% CAGR 10% JUN 23 to JUN 24 GROWTH SEMESTER 1: 30 JUNE TOTAL STUDENT NUMBERS
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12 √ 29 885 32 053 35 271 38 527 42 463 46 508 50 039 0 10000 20000 30000 40000 50000 60000 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 EXCLUDING CYCLICAL B2B NEW CONTACT LEARNING STUDENT NUMBER GROWTH 13 % 14% DEC 18 DEC 24 9% CAGR 8% DEC 23 to DEC 24 GROWTH SEMESTER 2: 31 DECEMBER TOTAL STUDENT NUMBERS
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13 • Contact learning growth driven by: o Site extensions and growth in new qualificationscoming through and contributing togrowth o Poor enrolments in prior yearsstarting to work its way out of the system STUDENT NUMBERS CONTACT LEARNING - SEMESTER 1 JUN 23 to JUN 24 5 402 6 081 6 269 5 921 5 662 5 807 6 322 0 1000 2000 3000 4000 5000 6000 7000 8000 JUN 18 JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 SEMESTER 1: 30 JUNE JUN 18 JUN 24 3% CAGR GROWTH 9%
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14 • Contact learning growth driven by: o Site extensions and growth in new qualificationscoming through and contributing togrowth o Poor enrolments in prior yearsstarting to work its way out of the system STUDENT NUMBERS CONTACT LEARNING - SEMESTER 2 DEC 23 to DEC 24 5 500 6 197 6 367 5 942 5 699 5 819 6 264 0 1000 2000 3000 4000 5000 6000 7000 8000 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 SEMESTER 2: 31 DECEMBER DEC 18 DEC 24 2% CAGR GROWTH 8%
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15 • Distance learning impacted by: o 17% growth excluding legacy business-to-business (B2B) Milpark Education business offerings o Growth in new qualificationscoming through and contributing togrowth STUDENT NUMBERS DISTANCE LEARNING – SEMESTER 1 GROWTH 10% JUN 23 to JUN 24 20 932 22 199 25 145 29 119 33 505 37 067 40 702 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 JUN 18 JUN 19 JUN 20 JUN 21 JUN 22 JUN 23 JUN 24 SEMESTER 1: 30 JUNE 12% CAGR JUN 18 JUN 24
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16 • Distance learning growth impacted by: o 13% growth excluding legacy business-to-business (B2B) Milpark Education business offerings o Growth in new qualificationscoming through and contributing togrowth STUDENT NUMBERS DISTANCE LEARNING – SEMESTER 2 DEC 23 to DEC 24 24 385 25 856 28 904 32 585 36 764 40 689 43 775 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 SEMESTER 2: 31 DECEMBER 11% CAGR DEC 18 DEC 24 GROWTH 8%
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17 √ 633 815 933 1 098 1 214 1 414 1 612 0 200 400 600 800 1000 1200 1400 1600 1800 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 DEC 18 DEC 2417% CAGR REVENUE (R millions) • 14% revenue growth made up as follows - o 12% growth on contact learning to R511 million o 16% growth on distance learning to R1.1 billion 14% DEC 23 to DEC 24 GROWTH
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18 (R millions) 129 180 46 309 351 391 458 129 196 253 310 357 387 458 0 50 100 150 200 250 300 350 400 450 500 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Actual EBITDA Adjusted EBITDA 24% 27% 28% 29% 20% 27% EBITDA AND ADJUSTED EBITDA Adjusted EBITDA margin28%28%(R millions) Adjusted EBITDA margin • No significant difference between EBITDA and adjusted EBITDA for the year • Adjusted EBITDA margins increased to 28.4% (2023:27.4%)
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19 • Employee cost margin in line with prior year despite continued investment for future growth • Operating expense margin improved to 22.5% but influenced by strategic investments in: • Marketing and advertising • Software licensing and computer costs • Staff development through increased staff training • Loss allowance margin decreased from the prior year EXPENSE ANALYSIS (R millions) DEC 23 DEC 24 % CHANGE Revenue 1 414 1 612 14% Employee costs 586 665 14% Employee costs as % of revenue 41.4% 41.3% Other operating expenses 325 363 11% Other operating expenses as % of revenue 23.0% 22.5% Loss allowance expense – net of recoveries 127 141 11% Loss allowance expense – net of recoveries as % of revenue 9.0% 8.7% MARGIN ANALYSIS
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20 • New collection processes introduced starting to yield benefits. • Operational changes introduced in Semester 2 prevented students from registering if their account balances were not up to date • The loss allowance margin of 8.7% (Dec 2023: 9.0%) is better than the prior year comparative 6.5% 7.7% 9.0% 8.3% 8.7% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% DEC 22 JUN 23 DEC 23 JUN 24 DEC 24 Loss allowance margin (loss allowance as % of revenue) TRADE RECEIVABLE & LOSS ALLOWANCE
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21 • Good collections on current period debtors resulted in debtors for the current period only growing by 15% when compared to the comparative year growth of 27% • Coverage on debtors relating to the prior year at 97% TRADE DEBTORS (R millions) DEC 22 DEC 23 DEC 24 % GROWTH DEC 22 TO DEC 23 % GROWTH DEC 23 TO DEC 24 Gross debtors 260 330 381 27% 15% Debtors related to prior academic years (36) (49) (58) 36% 16% Debtors related to current year 224 281 323 25% 15% Revenue growth 16% 14% DEBTORS RELATING TO PRIOR YEAR (R millions) DEC 22 DEC 23 DEC 24 % GROWTH DEC 22 TO DEC 23 % GROWTH DEC 23 TO DEC 24 Gross debtors 36 49 58 36% 16% Loss allowance (33) (45) (56) 37% 25% Net debtors 3 4 2 29% (68%) Loss allowance coverage (%) (90%) (91%) (97%) TRADE RECEIVABLE & LOSS ALLOWANCE
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22 • Strong 17% growth in Profit after tax impacted by: o Organic growth in EBITDA o Reduced depreciation and amortization o Impairment recognised in respect of the Ranburg campus o Continued investment for future growth (increases in marketing and advertising costs, staff training and computer/license costs) o Net decrease in loss allowance margin (R millions) 77 84 (78) 137 186 236 276 -200 -150 -100 -50 0 50 100 150 200 250 300 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 PROFIT/(LOSS) FOR THE PERIOD GROWTH 17%(R millions) DEC 23 to DEC 24
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23 7.8 8.5 (14.5) 14.9 19.5 24.5 30.9 -20 -15 -10 -5 0 5 10 15 20 25 30 35 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 EPS (cps) DEC 18 DEC 24 26% CAGR GROWTH 28% GROWTH 26% 7.8 8.5 (8.5) 17.0 20.0 24.5 31.4 -10 -5 0 5 10 15 20 25 30 35 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 HEPS (cps) HEPS DEC 23 to DEC 24 DEC 23 to DEC 24 EARNINGS PER SHARE (EPS) AND HEADLINE EARNINGS PER SHARE (HEPS)
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24 z CORE HEADLINE EARNINGS 70 88 117 149 176 209 267 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Core Headline Earnings (R millions) DEC 18 DEC 24 8.6 10.8 14.2 17.6 20.7 24.6 31.5 DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Core HEPS (cps) Core HEPS DEC 23 to DEC 24 DEC 23 to DEC 24 26% CAGR GROWTH 28% GROWTH 28% 300 250 200 150 100 50 0 35 30 25 20 15 10 5 0
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25 (R millions)CORE HEADLINE EARNINGS MOVEMENT 209 57 ( 9) 13 ( 3) 267 DEC 23 ORGANIC GROWTH NET LOSS ALLOWANCE MILPARK INTEREST CHANGE RCF INTEREST DEC 24 0 50 100 150 200 250 300 27% % change(R millions) (4%) 6% (1)% 28% Organic growth on prior year - 23% • Core headline earnings growth of 28%, made up as follows: • Organic growth due to underlying institutional growth of 23% • Net impact of additional Milpark interest acquired of 5% Net impact of additional Milpark interest acquired – 5% * RCF = rolling credit facility *
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26 SUMMARISED STATEMENT OF FINANCIAL POSITION DEC 23 R millions DEC 24 R millions Total assets 2 316 2 389 Property, plant and equipment 872 889 Right-of-use assets 65 62 Intangibles (incl Goodwill) 903 923 Other assets 128 289 Trade and other receivables 217 207 Cash and cash equivalents 130 19 Total equity 1 862 2 024 Attributable to equity holders 1 795 1 957 Non-controlling interests 68 67 Total liabilities 454 366 Borrowings 0 0 Lease liabilities 115 112 Other liabilities 338 253 Number of shares in issue (m) 847 848 NAV per share (cents) 212 231 Gearing ratio 6% 6% Gearing ratio (excl IFRS16: lease liability) 0% 0% • Invested R106m on capital expenditure including: • solar projects (R16m) • software development (R9m) • curriculum development (R20m) • building projects (R32m) • recurring capex (R29m) • R132m of cash on hand • Gearing ratio 6% (0% excluding IFRS 16 lease liability) • Debt facility of R100m – unutilised at the end of the year STATEMENT OF FINANCIAL POSITION
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27 (R millions)CASH FLOW FROM OPERATIONS CASH FLOW FROM OPERATIONS (R millions) DEC 19 DEC 20 DEC 21* DEC 22* DEC 23 DEC 24 Net cash flow from operations (before working capital) 202 263 323 361 404 470 Working capital changes (12) 11 (9) (20) (44) (5) Net cash generated from operations 190 274 314 341 360 465 Cash generated from operations (as % of normalised EBITDA) 97% 108% 101% 96% 93% 102% Free cash flow less recurring capex 133 206 218 308 217 327 133 206 218 308 217 327 0 50 100 150 200 250 300 350 DEC 19 DEC 20 DEC 21* DEC 22* DEC 23 DEC 24 Free cash flow less recurring capex (R millions) *Adjusted for CA Connect settlements
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28 (R millions)CAPITAL INVESTED CAPITAL INVESTED (R millions) DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Acquisitions 156 - 10 - 15 123* Infrastructure development and capital assets 168 98 181 87 44 86 Programme development 10 7 - 7 15 20 Total 334 105 191 94 74 229 Cumulative investment 1 777 1 882 2 073 2 167 2 241 2 470 * Additional interest acquired in Milpark Education
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29 130 355 ( 32) ( 29) ( 16) ( 28) ( 28) 102 ( 102) ( 85) ( 11) ( 12) ( 123) 12 132 -200 -100 0 100 200 300 400 500 600 (R millions) CASH UTILISATION
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30 2025 CAPITAL EXPENDITURE (R millions) 2025 Curriculum and intangible development 46 Durbanville property 203 Existing campuses 48 Total Capital Projects 297 2025 CAPITAL EXPENDITURE: CAPITAL PROJECTS
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31 (R millions)7 YEAR FINANCIAL OVERVIEW DEC 18 DEC 19 DEC 20 DEC 21 DEC 22 DEC 23 DEC 24 Student numbers 29 885 32 053 35 271 38 527 42 463 46 508 50 039 Revenue (R millions) 633 815 933 1 098 1 214 1 414 1 612 EBITDA (R millions) 129 180 46 309 351 391 458 EBITDA (R millions)- normalised 129 196 253 310 357 387 458 Headline earnings/(loss) (HE) (R millions) 63 70 (70) 144 170 208 266 Core headline earnings (CHE) (R millions) 70 88 117 149 176 209 267 HEPS (cents) 7.8 8.5 (8.5) 17.0 20.0 24.5 31.4 Core HEPS (cents) 8.6 10.5 14.2 17.6 20.7 24.6 31.5 Dividend per share (cents) 0.0 0.0 0.0 4.7 8.9 10.0 15.1 ROE (%) 0.2 5.6 7.9 9.0 9.9 11.7 13.6 Net asset value (NAV) per share (cps) 176 192 178 195 208 212 231
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32 CHRIS VORSTER CHIEF EXECUTIVE OFFICER POSITIONED FOR GROWTH
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33 • Launch of STADIO Higher Education (4 brands into 1) • New Milpark strategy implemented – online distance learning • Invest in distance learning logistics centre, infrastructure, systems, processes, policies • Accreditation of new programmes • Centurion comprehensive campus opened in 2021 • Optimisation of campuses & staff (incl consolidation of smaller campuses) • Enhance academic quality • Durbanville campus construction completed and opens • Efficiencies starting to show • Focus on student experience • Positioned for university status • 56 000 students by 2026 • 80 000 students in 2030 • Recognised as first-choice institutions • 20% + sustainable ROE • 100 000+ students in time • Started with 840 students • Listed on the JSE • Acquired quality brands • Purchased land in Centurion and Durbanville to build comprehensive campuses WE'VE LAID THE FOUNDATIONS
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35 OUR FOOTPRINT BELLVILLE (CPT) CENTURION (PTA)KRUGERSDORP (JHB) Distance Learning Campus MUSGRAVE (DBN) WATERFALL (MIDRAND) WINDHOEK (NAMIBIA) Distance Learning Support Centre ONGWEDIVA (NAMIBIA) Distance Learning Support Centre GEORGE Distance Learning Support Centre POLOKWANE Distance Learning Support Centre MILPARK Distance Learning Support Centre AFDA (JHB) AFDA CAPE TOWN AFDA DURBAN AFDA GQEBERHA AFDA MILPARK EDUCATION STADIO HIGHER EDUCATION AFDA HATFIELD (COMING) DURBANVILLE (COMING)
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36 WE'VE INVESTED IN OUR CAMPUSES - OFFERING A HOLISITIC STUDENT EXPERIENCE
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37 ATTRACTING TOP-ACADEMIC INDIVIDUALS CREATING CAMPUSES THAT ARE CONDUCIVE TO HIGHER EDUCATION IN A NEW WORLD EMBRACING TECHNOLOGY TO SUPPORT THE QUALITY OF OUR OFFERING INVITE INDUSTRY INTO OUR INSTITUTIONS AND INTO THE STADIO COMMUNITY ACHIEVING UNIVERSITY STATUS WHEN REGULATIONS ALLOW INTERNATIONALISATION AND PARTNERSHIPS QUALITY REMAINS OUR FOCUS AND WILL BE OUR DIFFERENTIATOR
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39 Graduate unemployment rate reduced in Q4:2024 illustrating the importance of obtaining a qualification 0% 5% 10% 15% 20% 25% 30% 35% 40% SA Official Unemployment rate 31.9% Less than matric Matric Other tertiary Graduates 19.8% 8.7% 38.2% 33.8% THE STADIO GROUP IS MAKING A BIG IMPACT . . . ON THE LIVES OF OVER 50 000 INDIVIDUALS AND ON THE FUTURE OF OUR COUNTRY AS A WHOLE Official Unemployment rate STATS SA Q4: 2024 LABOUR SURVEY
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40 557 000 Total students 258 215 students in private higher education (19%) 2000 2022 67% 33% Do not access public universities Accepted into 1st year at publics 551 289 Grade 12s qualified for university in 2022 356 575 eligible GRADE 12s could NOT access public universities 1 335 983 Total students * STADIO Group accounted for 16% of total private higher education students in 2020 (15% in 2019) Source: (1) - Infographics For Statistics On Post school Education And Training, 2022 - 2024 National Senior Certificate Examinations Report. Department of Basic Education. 2025. - Statistics on Post-school Education and Training in South Africa: 2022. Department of Higher Education and Training. 2024. - Powerheads peer data reports. https://www.heda.co.za/PowerHEDA/dashboard.aspx. Accessed 16 January 2025 Source: (2) : Statistics On Post-school Education And Training in South Africa 2020 THE HIGHER EDUCATION LANDSCAPE THERE ARE CURRENTLY 26 PUBLIC UNIVERSITIES & 137 REGISTERED OR PARTIALLY REGISTERED PRIVATE HIGHER EDUCATION INSTITUTIONS OPERATING IN SOUTH AFRICA It is estimated that this has increased to more than 430 000 in 2025 139%
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41 WE'RE SET FOR GROWTH ACCREDITING NEW IN-DEMAND PROGRAMMES TAKING PROGRAMMES TO NEW SITES OF DELIVERY & TO NEW MODES OPENING NEW FACULTIES & SCHOOLS OPENING NEW COMPREHENSIVE CAMPUS & OPTIMISING EXISTING CAMPUSES EXPLORING NEW OPPORTUNITIES & MARKETS EXPLORING OTHER OPPORTUNITIES THROUGH EXCITING INTERNATIONAL AND LOCAL PARTNERSHIPS
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42 56 00050 039 STUDENTS Dec 2024 2026 CONSISTENTLY GOOD GROWTH – 56 000 STUDENTS IS IN REACH - 80 000 STUDENTS BY 2030 46 508 STUDENTS 100 000 + Oct 2017 Jan 2017 * As disclosed in the Pre-listing Statement STUDENTS * STUDENTS 840 STUDENTS 12 976 STUDENTS Dec 2023 TARGET: 80% DISTANCE LEARNING 20% CONTACT LEARNING 80 000 2030 STUDENTS * 8% annual growth required
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43 • Construction commenced in October 2024 • On track to open for new students in January 2026 • Comprehensive campus housing 7 Faculties, offering multiple qualifications • Sports facilities will be available, offering a holisitic student experience • Expect to open with at least 1 000 students DURBANVILLE CAMPUS
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44 • Prof Stan du Plessis appointed as CEO of STADIO Higher Education, effective 1 August 2025 • Stan is currently the COO of Stellenbosch University and his considerable knowledge in economics and research, coupled with his expertise in contact learning will be of great benefit to STADIO Higher Education, complementing STADIO Higher Education’s strong distance learning capabilities. This will assist in taking STADIO Higher Education to new heights • Current Holdings team doubles up as STADIO Higher Education Leadership team • We’ve built the foundations at STADIO Higher Education • The time is right to start focusing on other expansion opportunities • We will also focus on realising many untapped synergies across the 3 institutions • We will continue to invest in technology and processes to always simplify and improve our offerings, allowing us to scale without losing quality STRUCTURE & PROCESSES
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45 WE CAN BE THE BIGGEST HIGHER EDUCATION PROVIDER IN TIME WE ARE IN A POSITION TO SHIFT GEARS WE ARE IN A POSITION TO EXPLORE OTHER OPPORTUNITIES LOW GEARING ALLOWING SWIFT ACTION
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46 QUESTIONS & ANSWERS