CURRO HOLDINGS LTD
Full year results 2013
HIGHLIGHTS
• Largest for profit private school group in
South Africa
• 31 campuses; 27 263 learners
• Invested more than R...
SOUTH AFRICAN SCHOOL STATISTICS
Assumptions
10% growth rate in private (was 6% over the past 6 years)
3
Curro; 90 000;
1% ...
ACTION IN THE INDUSTRY
• Advtech R1,1bn development program for at
least 10 new schools in the next four years.
• Oppenhei...
OUR BRANDS
Average
R2600 pm
(Primary)
R3700 pm
(High
schools)
Max 25 learners
Academic, sport , culture
Sufficient variety...
2013 ACADEMIC RESULTS
IEB NSC
No of learners 310 631
Pass rate 100% 92%
University exemption 79% 52%
Average A aggregates
...
QUALITY ASSURANCE AND INNOVATION
• Curro Curriculum development
• Teachers College
• International benchmark testing
• Ext...
CURRO DURBANVILLE
First school provided the model
8
1 300 learners
CURRO DURBANVILLE
9
CURRO LANGEBAAN
Confirmed demand and scalability
10
CURRO HAZELDEAN (PRETORIA)
Reached capacity within 4 years
11
CURRO ROODEPLAAT (PRETORIA)
Private schools have a catchment
area of more than 20km
12
CURRO SERENGETI (KEMPTON PARK)
1 000 learners in three years
13
CURRO SERENGETI NURSERY SCHOOL
Estate school convenience
14
CURRO COLLEGE HAZELDEAN (PRETORIA)
Separate high school: the result of fast
developing primary school
15
CURRO BANKENVELD (WITBANK)
14 ha will accommodate 2 000 learners
16
CURRO AURORA (RANDBURG)
Magnificent turnaround in profitability
since acquisition
17
CURRO HELDERWYK (BRAKPAN)
School campus > 1 000 learners:
High barriers to entry
18
CURRO HERMANUS
Demand in remote areas: 440 learners
in 2 years
19
CURRO HEUWELKRUIN (POLOKWANE)
Before Curro: 200 learners in 10 years
Now: 550 learners 2 years later
20
CURRO NELSPRUIT
Significant growth despite nearby
private schools
21
CURRO HILLCREST (DURBAN)
From church school to private school
with Christian ethos
22
WOODHILL COLLEGE (PRETORIA)
Select schools keep their identity
23
ROSEN CASTLE (TYGERVALLEY)
Our nursery schools run a programme
which enhances cognitive
development
24
NORTHERN ACADEMY (POLOKWANE)
4 000 learners, 2 500 boarders
25
50 – 70 learners supported by class
assistants = 100% pass rate
NORTHERN ACADEMY (POLOKWANE)
26
340 learners despite economy and
good government schools
CURRO MOSSEL BAY
27
All the major cities in SA covered
CURRO BLOEMFONTEIN
28
City school – 565 learners year 2
CURRO CENTURY CITY (CAPE TOWN)
29
Fastest growing market in South
Africa -1371 learners (year 2)
CURRO THATCHFIELD (CENTURION)
30
From 350 learners to 550
learners in a year
CURRO KRUGERSDORP
31
Acquisition in 2012 – need to
expand
EMBURY COLLEGE (DURBAN)
32
1st own built Meridian – 1062
learners in year 2
MERIDIAN PINEHURST
33
NEW SCHOOLS OPENED IN 2014
• Curro
– Mount Richmore (Ballito)
– Westbrook (Port Elizabeth)
• Meridian
– Karino (Nelspruit)...
DEVELOPMENTS 2014
• R500m expansion to existing campuses
• 25 sites (R270m) in land banking
• Acquisitions: always in the ...
NEW SCHOOLS CONSTRUCTED IN 2014
• Curro
– Brackenfell (Cape Town)
– Kathu
– Monaghan (Lanseria)
– Secunda
• Meridian
– Cos...
CURRO SCHOOL MODEL (example)
• Capital
– 1000 learners R60m
– 2000 learners R100m
• Open with 250-300 learners
• Break eve...
MANAGEMENT PHILOSOPHY
• Flat, decentralised and shared leadership
• Executive head is wholly responsible for
his school (a...
FOCUS …
• Successful delivery of new schools
• Efficiencies
– Personnel
• Management information systems
• Debt funding
39
FINANCIAL RESULTS
Reviewed Results
for the year ended 31 December 2013
Revenue
80%
Net Asset
Value
47%
EBITDA
114%
40
FINANCIAL RESULTS
Statement of comprehensive income
Audited
31 Dec 2012
R’m
Reviewed
31 Dec 2013
R’m
% Change
Revenue 366 ...
HOCKEY STICK
% of
eventual
capacity
Number
of
schools
Learner
numbers
EBITDA
R'000
EBITDA
margin
% of
eventual
capacity
Nu...
First year
Number
of
schools
Learner
numbers
EBITDA
R'000
EBITDA
margin
First year
Number
of
schools
Learner
numbers
EBITD...
31 Dec
2012
31 Dec
2013
ASSETS
Non-current assets 1 426 2 516
Current assets 58 118
Other 1 8
Trade and other receivables ...
EQUITY AND LIABILITIES
31 Dec
2012
31 Dec
2013
EQUITY
Equity attributable to equity holders of parent 861 1 560
Non-contro...
ACTUALS VS PRE-LISTING STATEMENT
2013 (PLS) 2013 % Change
Schools 17 26 53%
Learners 9 594 21 027 119%
Capacity 19 000 35 ...
YESTERDAY, TODAY, TOMORROW
2009 2013 2014 2020
Schools 3 26 31 80
Learners 2 059 21 908 26 463 +- 90 000
Staff 251 2 472 2...
80 @ 20
48
49
0
10
20
30
40
50
60
70
80
90
100
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Schools and Learners
Actua...
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Curro Holdings Ltd FY 2013 financial results presentation

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Curro Holdings Ltd FY 2013 financial results presentation

  1. 1. CURRO HOLDINGS LTD Full year results 2013
  2. 2. HIGHLIGHTS • Largest for profit private school group in South Africa • 31 campuses; 27 263 learners • Invested more than R1billion in 2013 (R2bn since 2011) • Record profits – EBITDA +114%; – HEPS +87 (exceeded PLS guidance) • 3 Acquisitions • Investment grade bond rating (BBB-); Secured credit rating (A-) 2
  3. 3. SOUTH AFRICAN SCHOOL STATISTICS Assumptions 10% growth rate in private (was 6% over the past 6 years) 3 Curro; 90 000; 1% Private ; 965 371 ; 7% Total (Private and Public); 12 428 000 ; 92% 2020 STATS Curro; 21 908; 0% Private ; 495 388; 4% Total (Private and Public); 12 428 000; 96% 2013 STATS
  4. 4. ACTION IN THE INDUSTRY • Advtech R1,1bn development program for at least 10 new schools in the next four years. • Oppenheimers bought into Reddam through Educas. • RMB Corvest Private Equity acquired a 49% stake in Maragon School. 4
  5. 5. OUR BRANDS Average R2600 pm (Primary) R3700 pm (High schools) Max 25 learners Academic, sport , culture Sufficient variety of subjects R5000 – R6500 pm Established campus Convenience Location Wide variety of subjects R1000 – R1600 pm 35 – 70 per class Academic focus Support by class assistants Some extra mural R2000 – R2500 pm Full day care Convenience and safety Cognitive development programs 5
  6. 6. 2013 ACADEMIC RESULTS IEB NSC No of learners 310 631 Pass rate 100% 92% University exemption 79% 52% Average A aggregates per learner 1,14 0,6 Average 65% 55% Average > 60% 67% 49% Maths (taken and average) 56% / 62% 49% / 41% 6
  7. 7. QUALITY ASSURANCE AND INNOVATION • Curro Curriculum development • Teachers College • International benchmark testing • Extensive personnel training • Aggressive introduction of technology as educational aid: laptops, projectors, interactive boards and tablets 7
  8. 8. CURRO DURBANVILLE First school provided the model 8
  9. 9. 1 300 learners CURRO DURBANVILLE 9
  10. 10. CURRO LANGEBAAN Confirmed demand and scalability 10
  11. 11. CURRO HAZELDEAN (PRETORIA) Reached capacity within 4 years 11
  12. 12. CURRO ROODEPLAAT (PRETORIA) Private schools have a catchment area of more than 20km 12
  13. 13. CURRO SERENGETI (KEMPTON PARK) 1 000 learners in three years 13
  14. 14. CURRO SERENGETI NURSERY SCHOOL Estate school convenience 14
  15. 15. CURRO COLLEGE HAZELDEAN (PRETORIA) Separate high school: the result of fast developing primary school 15
  16. 16. CURRO BANKENVELD (WITBANK) 14 ha will accommodate 2 000 learners 16
  17. 17. CURRO AURORA (RANDBURG) Magnificent turnaround in profitability since acquisition 17
  18. 18. CURRO HELDERWYK (BRAKPAN) School campus > 1 000 learners: High barriers to entry 18
  19. 19. CURRO HERMANUS Demand in remote areas: 440 learners in 2 years 19
  20. 20. CURRO HEUWELKRUIN (POLOKWANE) Before Curro: 200 learners in 10 years Now: 550 learners 2 years later 20
  21. 21. CURRO NELSPRUIT Significant growth despite nearby private schools 21
  22. 22. CURRO HILLCREST (DURBAN) From church school to private school with Christian ethos 22
  23. 23. WOODHILL COLLEGE (PRETORIA) Select schools keep their identity 23
  24. 24. ROSEN CASTLE (TYGERVALLEY) Our nursery schools run a programme which enhances cognitive development 24
  25. 25. NORTHERN ACADEMY (POLOKWANE) 4 000 learners, 2 500 boarders 25
  26. 26. 50 – 70 learners supported by class assistants = 100% pass rate NORTHERN ACADEMY (POLOKWANE) 26
  27. 27. 340 learners despite economy and good government schools CURRO MOSSEL BAY 27
  28. 28. All the major cities in SA covered CURRO BLOEMFONTEIN 28
  29. 29. City school – 565 learners year 2 CURRO CENTURY CITY (CAPE TOWN) 29
  30. 30. Fastest growing market in South Africa -1371 learners (year 2) CURRO THATCHFIELD (CENTURION) 30
  31. 31. From 350 learners to 550 learners in a year CURRO KRUGERSDORP 31
  32. 32. Acquisition in 2012 – need to expand EMBURY COLLEGE (DURBAN) 32
  33. 33. 1st own built Meridian – 1062 learners in year 2 MERIDIAN PINEHURST 33
  34. 34. NEW SCHOOLS OPENED IN 2014 • Curro – Mount Richmore (Ballito) – Westbrook (Port Elizabeth) • Meridian – Karino (Nelspruit) – Northern Academy Secondary (Polokwane) • Curro Castle – George 34
  35. 35. DEVELOPMENTS 2014 • R500m expansion to existing campuses • 25 sites (R270m) in land banking • Acquisitions: always in the offing • Total investments of R1,4bn 35
  36. 36. NEW SCHOOLS CONSTRUCTED IN 2014 • Curro – Brackenfell (Cape Town) – Kathu – Monaghan (Lanseria) – Secunda • Meridian – Cosmo City – Newcastle – Mahikeng – Soshanguve (Pretoria) • Curro Castle – Somerset West – Waterfall • Select – Grantleigh 36
  37. 37. CURRO SCHOOL MODEL (example) • Capital – 1000 learners R60m – 2000 learners R100m • Open with 250-300 learners • Break even EBITDA between 350 and 450 learners (2-3 years) • IRR of 20%+ 37
  38. 38. MANAGEMENT PHILOSOPHY • Flat, decentralised and shared leadership • Executive head is wholly responsible for his school (academics, co-curricular, HR and finance) – Well remunerated and incentivised • Head office gives support – Regional Heads / Inspectors of education – Curriculum development and quality assurance – IT 38
  39. 39. FOCUS … • Successful delivery of new schools • Efficiencies – Personnel • Management information systems • Debt funding 39
  40. 40. FINANCIAL RESULTS Reviewed Results for the year ended 31 December 2013 Revenue 80% Net Asset Value 47% EBITDA 114% 40
  41. 41. FINANCIAL RESULTS Statement of comprehensive income Audited 31 Dec 2012 R’m Reviewed 31 Dec 2013 R’m % Change Revenue 366 659 80% EBITDA 53 114 114% Attributable PAT 15 37 145% EBITDA Margin 15% 18% 20% HEPS (cents) 7.0 13.1 87% 41
  42. 42. HOCKEY STICK % of eventual capacity Number of schools Learner numbers EBITDA R'000 EBITDA margin % of eventual capacity Number of schools Learner numbers EBITDA R'000 EBITDA margin 0-25 5 1 316 (6 234) (20%) 0-25 7 2 668 (2 653) (4%) 25-50 6 3 107 9 510 12% 25-50 6 4 017 24 094 21% 50-75 5 3 590 32 465 27% 50-75 8 6 119 43 553 21% 75-100 6 4 460 43 129 35% 75-100 5 8 223 89 994 38% 22 12 473 78 870 22% 26 21 027 154 987 25% Brands Number of schools Learner numbers EBITDA R'000 EBITDA margin Brands Number of schools Learner numbers EBITDA R'000 EBITDA margin Curro 19 11 072 72 899 20% Curro 22 14 638 120 732 22% Meridian 3 1 401 5 970 35% Meridian 4 6 389 34 255 32% 22 12 473 78 870 22% - 26 21 027 154 987 25% 2012 2013 42
  43. 43. First year Number of schools Learner numbers EBITDA R'000 EBITDA margin First year Number of schools Learner numbers EBITDA R'000 EBITDA margin 2013 2013 4 2 016 10 944 19% 2012 2 582 (699) (5%) 2012 2 1 002 2 034 7% 2011 6 2 164 (2 788) (5%) 2011 6 2 962 6 848 8% 2010 2 1 290 5 366 15% 2010 2 1 636 8 152 17% 2009 and 12 8 437 76 404 31% 2009 and 12 13 411 127 010 32% 22 12 473 78 282 22% 26 21 027 154 987 25% Origin Number of schools Learner numbers EBITDA R'000 EBITDA margin Origin Number of schools Learner numbers EBITDA R'000 EBITDA margin Acquired 10 5 125 54 744 34% Acquired 10 10 300 103 044 35% Developed 12 7 348 24 125 12% Developed 16 10 727 51 944 16% 22 12 473 78 870 22% 26 21 027 154 987 25% 2012 2013 HOCKEY STICK 43
  44. 44. 31 Dec 2012 31 Dec 2013 ASSETS Non-current assets 1 426 2 516 Current assets 58 118 Other 1 8 Trade and other receivables 28 30 Cash and cash equivalents 29 79 Total assets 1 484 2 634 ASSETS 44
  45. 45. EQUITY AND LIABILITIES 31 Dec 2012 31 Dec 2013 EQUITY Equity attributable to equity holders of parent 861 1 560 Non-controlling interest 1 3 Total equity 862 1 563 LIABILITIES Non-current liabilities 321 874 Loans and other financial liabilities 236 755 Deferred tax 84 119 Current liabilities 301 196 Loans and other financial liabilities 125 70 Trade and other payables 21 48 Prepaid school fees and deposits 36 61 Other 44 16 Bank overdraft 75 Total liabilities 622 1 070 Total equity and liabilities 1 484 2 634 45
  46. 46. ACTUALS VS PRE-LISTING STATEMENT 2013 (PLS) 2013 % Change Schools 17 26 53% Learners 9 594 21 027 119% Capacity 19 000 35 000 84% Revenue (R million) 299 659 120% EBITDA (R million) 59 114 93% Attributable PAT (R million) 16 37 131% EPS (cents) 10 13,1 31% Assets 722 2 633 265% Equity 410 1 561 281% Debt 312 1 070 243% Gearing 76% 68% 46
  47. 47. YESTERDAY, TODAY, TOMORROW 2009 2013 2014 2020 Schools 3 26 31 80 Learners 2 059 21 908 26 463 +- 90 000 Staff 251 2 472 2 829 +- 8 000 Learner/Educator ratio 10 16 20 +- 25 Revenue (R million) 48 659 EBITDA 9 114 PAT (R million) 2 37 EPS (cents) 2.5 13.1 ‫٭٭٭‬ 47
  48. 48. 80 @ 20 48
  49. 49. 49 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Schools and Learners Actual Schools Actual Learners ('000) Projected Schools Projected Learners ('000)

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