SUCCESS THROUGH DIVERSITY                UBS Emerging Companies                            Conference10 April 2013        ...
Disclaimer      Important Notice and Disclaimer      This document has been prepared by Navitas Limited ABN 69 109 613 309...
Company profile   Navitas (ASX: NVT) is a leading global education provider that offers   an extensive range of educationa...
H1 FY13 Group highlights               Revenue                        EPS                     Total Group revenue up 4% t...
UNIVERSITY PROGRAMS         ENROLMENTS
Australian total enrolment declines cease                                    Equivalent Full Time Students Units          ...
Australian new student recruitment      New student enrolments                                        New Australian cohor...
Trend continues to improve                                           Equivalent Full Time Students Units (EFTSU): Semester...
Continued diversification                    201301 EFTSU by region                                               201201 E...
INTERIM FINANCIAL     PERFORMANCE
Core Divisions perform well in 1st half            EBITDA ($m)                                        H1 FY13     H1 FY12 ...
Long term growth                              REVENUE ($m)                                                     PERIOD MOVE...
Consistent shareholder returns                                EARNINGS (cps)                                              ...
APPENDIX
Global market conditions positive                                   World population by gender                            ...
Corporate snapshot          375.4m                                                                   ASX200               ...
Detailed H1 P&L – 5 years Navitas Ltd                                                                                     ...
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Navitas UBS Emerging Companies conference presentation

  1. 1. SUCCESS THROUGH DIVERSITY UBS Emerging Companies Conference10 April 2013 ASX: NVT
  2. 2. Disclaimer Important Notice and Disclaimer This document has been prepared by Navitas Limited ABN 69 109 613 309 ("Navitas" or the "Company"). Information in this document should be read in conjunction with other Navitas announcements made to ASX. This document has been prepared for information purposes only and does not take into account your individual investment objectives, including the merits and risks involved in an investment in Navitas shares, or your financial situation or particular needs, and is not investment, financial product, legal, tax or accounting advice or opinion. You must not act on the basis of any matter contained in this document, but must make your own independent investigation and assessment of Navitas and its shares and obtain any professional advice you require before making any investment decision based on your investment objectives and financial circumstances. An investment in Navitas shares is subject to investment and other known and unknown risks, some of which are beyond the control of Navitas, including possible delays in repayment and loss of income and principal invested. Navitas does not guarantee any particular rate of return or the performance of Navitas, nor does it guarantee the repayment of capital from Navitas or any particular tax treatment. All information in this document is believed to be reliable, but no representation, warranty or guarantee, express or implied, is made by Navitas, its subsidiaries or their respective directors, officers, employees or agents, nor any other person (the “Beneficiaries”) as to the fairness, accuracy, completeness, reliability or correctness of the information, opinions and conclusions contained in this document (including, without limitation, any estimates, calculations, projections or forward looking statements). No action should be taken on the basis of the information, and no reliance may be placed for any purpose on the accuracy or completeness of the information or opinions contained in this document. To the maximum extent permitted by law, the Beneficiaries shall have no liability, including, without limitation, any liability arising from fault or negligence, for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this document. The distribution of this document in other jurisdictions outside Australia may also be restricted by law and any such restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. This document does not constitute an offer, invitation, solicitation, advice or recommendation with respect to the issue, purchase or sale of any security in any jurisdiction. In particular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any "U.S. person" (as defined in the U.S. Securities Act of 1933 ("U.S. Securities Act")). Shares in Navitas have not been and will not be registered under the U.S. Securities Act, or under the securities laws of any state or other jurisdiction of the United States. Accordingly, shares in Navitas may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons, except in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This document may not be distributed or released in the United States or to, or for the account or benefit of, any U.S. person. All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 2
  3. 3. Company profile Navitas (ASX: NVT) is a leading global education provider that offers an extensive range of educational and training services for students and professionals across Australia and around the world Market cap Annual Staff Students Colleges/ revenue headcount schools $2.0b $702.1m ~5,000 > 80,000 111 University Programs - leading provider of 30 pathway colleges and managed campuses across Australia and in the UK, US, Canada, Singapore, Kenya and Sri Lanka SAE Group - creative media education provider delivering vocational and higher education qualifications in audio, film and multimedia via 53 colleges in Australasia, US, Europe and the Middle East Professional and English Programs – provides quality vocational training, higher education and placement services in areas of key demand across Australia as well as providing English as a second language courses for international students and English language, settlement and work preparation programs for migrants and refugees .NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 3
  4. 4. H1 FY13 Group highlights Revenue EPS  Total Group revenue up 4% to $355.4m $355.4m 9.3¢  EBITDA up 5% to $59.9m  Net profit after tax $35.1m NPAT DPS  Earnings per share 9.3¢ 35.1m 9.3¢  Fully franked interim dividend of 9.3¢ Operational  Return to growth in University Programs enrolments  SAE earnings growth below expectations  English earnings bounce back strongly  Professional and Student Recruitment record earnings losses  Strategic and structural review of Navitas completed and implementation underwayNAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 4
  5. 5. UNIVERSITY PROGRAMS ENROLMENTS
  6. 6. Australian total enrolment declines cease Equivalent Full Time Students Units (EFTSU) enrolments - variance against pcp 8% 5% -0.5% -4% -8% -9% -12% -13% -14% -21% 1001 1002 1003 1101 1102 1103 1201 1202 1203 1301 SemesterNAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 6
  7. 7. Australian new student recruitment New student enrolments New Australian cohort has three components  International students recruited offshore – 201301 >30% + + increase 7% 12% 1103 1201  International students recruited 201203 201301 onshore – 201301 decrease  Australian domestic students – 201301 ~10% increase • Key factors for international offshore growth  Stabilisation of Australian regulatory and policy environment  Knight Review changes now being understood by markets  SVP – commenced March 2012  Post Study Work Rights – commenced March 2013, available to students who commenced HE study after 5 November 2011NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 7
  8. 8. Trend continues to improve Equivalent Full Time Students Units (EFTSU): Semester enrolments 20,000 40% 18,000 35% Equivalent Full Time Students 30% 17,811 16,000 17,149 17,071 % Enrolment growth 16,422 25% 15,724 15,419 14,000 14,675 20% 14,601 14,529 14,306 14,097 13,602 (EFTSU) 13,320 12,000 15% 12,268 12,025 11,573 10,000 10% 5% 9,210 8,000 9,020 0% 6,000 -5% 4,000 -10% 2,000 -15% 0702 0703 0801 0802 0803 0901 0902 0903 1001 1002 1003 1101 1102 1103 1201 1202 1203 1301 Semester Semester 1 2013 EFTSU - 4% growth against pcpNAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 8
  9. 9. Continued diversification 201301 EFTSU by region 201201 EFTSU by region Rest of Rest of World World 13% 15% NorthAmerica 16% North America 13% UK UK Australia 12% 13% 58% Australia 60% Growth by region on pcp • North America up 24% • UK up 12% • Australia down 0.5% • Asia/Africa down 3%NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 9
  10. 10. INTERIM FINANCIAL PERFORMANCE
  11. 11. Core Divisions perform well in 1st half EBITDA ($m) H1 FY13 H1 FY12 Δ% University Programs 52.3 49.9 5 SAE Group 12.6 11.8 7 Professional and English 4.6 3.7 24 Programs Divisional EBITDA 69.5 65.4 6 Corporate costs (9.6) (8.3) 16 EBITDA by Division 7% Group EBITDA 59.9 57.1 5 18% 69.5m 75%NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 11
  12. 12. Long term growth REVENUE ($m) PERIOD MOVEMENT 341.8 355.4 50.4 13.6 270.2 291.4 21.2 217.4 52.8 55.2 13% CAGR H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 EBITDA ($m) 8.7 2.8 57.1 59.9 5.0 13.0 48.4 18% 43.4 1.9 30.4 CAGR H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 NPAT ($m) 35.4 35.1 2.8 (0.3) 32.6 5.1 19.0 27.5 17% 2.5 8.5 CAGR H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 12
  13. 13. Consistent shareholder returns EARNINGS (cps) PERIOD MOVEMENT 9.5 9.4 9.3 8.0 1.5 (0.1) (0.1) 2.5 5.5 14% 0.8 CAGR H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 OPERATING CASH FLOW (cps) 4% 4.9 2.5 (2.5 ) 10.1 (1.2 ) 8.6 6.1 5.2 CAGR 0.3 4.9 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 DIVIDENDS (cps) 0.7 (0.1) 9.4 9.3 0.6 14% 8.7 2.6 8.1 5.5 0.5 CAGR H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 13
  14. 14. APPENDIX
  15. 15. Global market conditions positive World population by gender Global tertiary enrolment (m) 90+ 2010:3.45bn 2010: 3.40bn 80-89 2025: 3.99bn 2025:3.95bn Male Female 70-79 98 60-69 50-59 263 Current enrolments 40-49 million by 2025 165 Enrolment growth 30-39 20-29 10-19 0-9 -1,000 -500 0 500 1,000 International student Millions International education market share (%) enrolments (m) 8.2 4.1 3.7 3.5 2.8 3.0 3.1 2.1 2.4 2.6 3.2 2.1 2012 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2025 2011 to 2024 Source: , UNESCO Institute of Statistics, OECD Education at a Glance 2012NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 15
  16. 16. Corporate snapshot 375.4m ASX200 NVT Shares on issue $5.33 $2.0b Share Price 1 April 2013 52 wk range $3.55 - $5.33 Market Capitalisation Annualised dividend 19.4cpsNAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 16
  17. 17. Detailed H1 P&L – 5 years Navitas Ltd PCP Change $000s H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 $000s Index CAGR* Operating Revenue University Programs 140,721 174,681 193,388 190,657 203,506 12,849 107% 10% SAE - - - 57,063 55,594 (1,469) 97% n/a PEP 74,925 93,811 95,215 92,084 94,389 2,305 103% 6% C orporate & consolidation items 793 1,126 2,095 1,863 1,350 (513) 72% 14% Total operating revenue 216,439 269,618 290,698 341,667 354,839 13,172 104% 13% Expenses (186,038) (226,220) (242,321) (284,530) (294,965) (10,435) 104% 12% EBITDA 30,401 43,398 48,377 57,137 59,874 2,737 105% 18% Depreciation (2,415) (3,302) (3,825) (6,233) (7,039) (806) 113% 31% EBITA 27,986 40,096 44,552 50,904 52,835 1,931 104% 17% Amortisation (502) (488) (2,603) (488) (488) - 100% -1% EBIT 27,484 39,608 41,949 50,416 52,347 1,931 104% 17% Net Interest (paid)/received 246 441 390 (4,085) (3,802) 283 93% n/a Net profit before tax 27,730 40,049 42,339 46,331 48,545 2,214 105% 15% Income tax (8,955) (12,807) (10,122) (10,938) (13,242) (2,304) 121% 10% NPAT 18,775 27,242 32,217 35,393 35,303 (90) 100% 17% Outside equity interest 228 272 355 (33) (233) (200) 706% n/a NPAT attributable to members 19,003 27,514 32,572 35,360 35,070 (290) 99% 17% * Cumulative Annual Growth Rate from H1 FY09 to H1 FY13NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013 17

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