Learning Technologies Group plc Investor Presentation October 2015 - PowerPoint PPT Presentation

Learning Technologies Group plc Investor Presentation October 2015 Jonathan Satchell Neil Elton Chief Executive Group Finance Director 1

Introducing LTG Learning Technologies Group plc was created and listed in 2013 to  provide a comprehensive and integrated range of e-learning services and technologies to corporate and government clients LTG is a publicly quoted company focused on consolidating the o high growth e-learning sector Global footprint including Europe, US and Latin America o LTG is a dynamic and steadily growing group of specialist learning  technology businesses LTG's portfolio includes: o LEO, a pioneering learning technologies company o gomo learning, LTG owned IP multi-device authoring tool o Preloaded, a games with purpose company o Eukleia, a specialist provider of GRC services to the o financial services sector Our portfolio of brands are well recognised across the e learning o industry Recognised by industry bodies with numerous awards o LTG Mission • Organic growth driven by market share gains and sector growth o Significant expansion by acquisition of complementary businesses, o through the judicious use of our research, and our industry-specific expertise Ambition to build a specialist Group with revenues in excess of o £50m 2

Exposure to a structural high growth market Positive market trend Rated a Strategic Leader by elearnity †  E-learning expenditure is projected to grow at 23% per annum to $255.5bn from 2012 to 2017* Educational corporate market CAGR of 8.0%* o 41.7% of G500 companies already using technology adapted  training* Distribution across apps, mobile devices (phone and tablet),  and different platforms and portals LEO to take advantage of growth in technology, online content  and social media that supports learning January 2015 * IBIS Report, January 2013 3 † Elearnity survey, January 2015

Following the merger of the two leaders in learning technologies and Investment in business to meet the strategic requirements of the e-learning, Epic and LINE, LEO was created in July 2014 and benefits Group from more than 30 years of industry experience  Restructuring of the business in September 2015 to emphasise; LINE brought with it strategic accounts and a strong sector focus  Account management  in defence and security, automotive and corporate. Epic complemented this with a strong focus on professional services, Strategic and consultancy relationships  finance, public sector, retail and travel & leisure Learning and technology expertise   LEO aims to move learning to the heart of business strategy. By making learning a boardroom issue, LEO will secure bigger, Emphasis on cross-selling opportunities between businesses  more complex projects by working with global organisations on a more strategic level  Recruitment of Head of Sales in H1 2015 High profile contract with central government department in  Continuing investment in ERP, finance and HR systems and  partnership with KPMG won in Q1 2015 procedures to improve management information and create a scalable platform for growth Success in renewing contracts in competitive bids (e.g. CSL) and  deepening relationships at the strategic level (e.g. JLR and Sky) Pipeline of large contracts (ranging from £1m to £5m+) is at its  highest ever Industry awards Silver Winner Gold Winner Silver Winner Bronze Winner 2013 E-Learning Age Awards 2014 E-Learning Age Awards 2014 E-Learning Age Awards 2014 Training Journal Awards ‘Excellence in the production ‘Excellence in the production of ‘Best e -learning project – UK private ‘Best use of technology’ of learning content – private sector’ learning content – third sector’ sector’ Silver Winner Bronze Winner Silver Winner Runner up 2014 E-Learning Age Awards 2014 Brandon Hall Group 2013 E-Learning Age Awards 2013 IELA Awards ‘Excellence in the production ‘Excellence Award in Learning and ‘Best use of social media for learning’ ‘Mobile learning – business division’ of learning content – private sector’ Development’ 4

1,200+ hours of blended content 5

Global Induction underway Business case: 11,000 new employees in next 3 years 6

US and Brazil LEO opened its first North American office in New York in November LEO Brazil established as 50:50 JV in 2011 to access the emerging 2012. South American e-learning market Established its New York office in late 2012 to better deliver its  Office based in Rio de Janeiro  services to customers in the US, the world’s largest training and education market. Also gained access to those North American LEO Brazil operates through a local partner led by Richard  companies and public bodies that only procure from within the Vasconcelos (Chief Executive) local market Profitability reached within 13 months  The Vasconcelos family previously established one of the o largest private universities in Brazil, Estacio Universities in 1970s Appointed e-learning entrepreneur Bill West as Senior VP, North  and bring a wealth of local industry knowledge America in March 2015 After an exceptional 2014, a slow start to 2015, but sales pipeline Already an established track record of winning substantial   contracts, including e-learning for the 2016 Olympics and order book is now increasing Significant opportunity to increase market share  Initial focus on improving quality to UK standards has resulted in  better margins and improved client feedback Focus on increasing margins while maintaining quality levels  H1 2015 sales ahead of target  First profitable month in July 2015  7

Overview  Founded in 2000, Preloaded has a leading reputation as a BAFTA-winning applied games studio Partners with organisations across the education, entertainment, publishing, advertising and  broadcasting sectors with clients including Amplify (a subsidiary of News Corp), Disney, Science Museum Group, Wellcome Trust and the BBC High profile strategic contract won in H1 2015 to create playful learning games at the  centre of a global digital marketing campaign for an international restaurant company; work commenced on next phase which will run into 2016 Successful project completed for Science Museum has been followed by award of  educational project for British Museum Success in cross-selling with other LTG companies – for example, projects won in H2 2015  with British Airways (LEO) and SAP (LEO US) Investment in business – new studio in Finsbury Park, new project management system  implemented and increased recruitment of staff to meet demand Awards and key game statistics Story Cards, Amplify Crafty Cut, Amplify Disney Fairies: Axon, Wellcome Collection Wondermind The End, Channel 4 Serious Play 2014 Serious Play 2014 Lost and Found 1 million+ gameplays Tate Interactive BIMA Education, Silver (2014) Education, Silver (2014) #1 Kids Game in launch week Media Awards Game (2011) iTunes store 3 million gameplays Kids - Best in Class (2012) (December 2012) in first month 8

gomo provides two products that enable you to create, host, update and track multi-device learning, anywhere. Only end-to-end self-authoring solution on the market offering such fast, simple content creation and seamless hosting and analytics. gomo 3.0 launched in April 2015 and has seen significant growth in the UK and particularly the US. Delivers a full end-to-end solution for content creation, distribution and analytics. Ever-growing client base includes Nike, Burberry, Xerox, Santander, United Healthcare, Boots,  Alfred Dunhill, JCB, JP Morgan, NHS and more Allows organisations to derive in depth insights from their e-learning programmes for the first time,  allowing them to tailor and improve their learning outcomes. Will drive new sales from organisations looking for an alternative to an LMS.  Listed by world-recognised e-learning industry guru Craig Weiss as a top 5 authoring tool in the  world The newly launched hosting product creates the potential to increase revenue per customer and  attract new subscribers by offering a complete solution High renewal rates of licences since April 2015 and encouraging migration to Enterprise licences  Increasing cross-referral of work to LEO  Industry awards Silver Winner 2014 Brandon Hall Awards 'Best Advance in Content Authoring Technology' 9

Eukleia Training Limited (‘ Eukleia ’) - specialist in Governance, Risk and Compliance (‘GRC’) Training 2% Expect decline Strong growth drivers for the GRC market place. Three quarters of  600 senior compliance practitioners surveyed by Reuters in 2014/15 expected the focus on managing GRC to increase in the next 12 months. Only 2% expected it to decline. (Source Reuters: Cost of Compliance 2015) Eukleia can meet a broad range of GRC Training needs including  Bespoke E-Learning  Generic E-Learning 75%  Instructor led training  Translation of GRC learning content  Expect increase Learning management systems  Provides GRC training to financial services sectors including • investment banking, retail banking, fund management/private equity, commodity trading, exchanges and regulators Track record of new product development to meet changing  regulatory environment Blue chip client base including HSBC, Barclays, RBS, Lloyds Bank,  Deutsche, Citi all in top 10 customers during 2015 Eukleia is highly respected by its customer base as a leader in the  field of GRC 10