Macquarie Australia Conference 4 May 2017 About Navitas Navitas - PowerPoint PPT Presentation

Macquarie Australia Conference 4 May 2017

About Navitas Navitas (ASX: NVT) is a leading global education provider with over 120 colleges and campuses across 31 countries offering an extensive range of educational services to more than 80,000 students, clients and professionals. Navitas operates across three Divisions and is an ASX100 company. Navitas University Careers & Ventures Partnerships I ndustry FY1 6 Founded FY17 $635.4m $368.4m Revenue FY1 6 3 7 % 6 3 % 0 % Revenue The University Partnerships Navitas Ventures scales ideas The Careers and Industry Division is a leading provider and grows teams that will Division provides industry of pre-university and unleash human potential and focused vocational and Overview university pathway transform the way the world higher education programs programs with 33 colleges learns across the Creative, Health, across Australia, US, UK, Human Services and Canada, NZ and Sri Lanka Government Services segments 2 Macquarie Australia conference – 4 May 2017

Strategy update

Education is changing Middle Class Youth Explosion 2 billion youth in 2016 Competition for Jobs Falling Productivity Challenging job market Falling workforce output Generational Shifts Constrained Funding Changing behaviours and preferences Public sector funding challenges Technology Shifts Accelerating tech changes 4 Macquarie Australia conference – 4 May 2017

Higher Education in 2 0 2 5 Navitas’ view on the most probable scenario for the future of higher education 1.1B borderless learner opportunity available to the right providers Larger, more diverse international student market, with an over-supply of study options Method of learning will fundamentally change – blended, self-paced, personalised Employment outcomes and RoI will become the decision-making factor for most students Education providers will need to find their place within the lifetime learning journey Universities expected to remain dominant HE destination, but will be economically challenged Public-private partnerships will increase across the whole value chain, and play a key role in university reform Other parts of the value chain – especially recruitment - will experience more radical disruption 5 Macquarie Australia conference – 4 May 2017

W e have a m edium term plan to reposition Navitas HORIZON 3 FY20+ HORIZON 2 ENDURANCE • Repositioned University Partnerships working on internationalisation, digitisation and supporting agendas FY18 – FY20 HORIZON 1 • Long-term industry partnerships EXPANSION developed with multiple offerings • Build strong Australasian position • Ventures delivering new core offerings • Secure NA and EU markets for growth and diversification, driving FY16 – FY17 • Build beyond pathways with innovation and mitigating disruption SIMPLIFICATION University Partners on multiple • Continue to focus on student agendas outcomes and experience • Consolidate industry focused offerings • Establish global integrated structure • Growth and innovation through new • Prioritise projects and initiatives Ventures • Establish new capabilities, both people and operationally 6 Macquarie Australia conference – 4 May 2017

Clear strategic direction aligned w ith operational goals PURPOS OSE Transform lives by increasing student access to quality tertiary education Convic icti tion Drive A Adventurous Rigour Ge Genuine Respect VISION VIS To be universally recognised as one of the world’s most trusted learning organisation NAVITAS VENTURES UNIVERSITY PARTNERSHIP (UP) CAREERS AND INDUSTRY (CI) BUSINESSES BUSINESSES Scaling ideas and growing teams that unleash The preferred transformation partner to Providing students with a quality, valued human potential and transform the way the universities around the world education in segments with strong world learns employment prospects North Govt. Human Australasia Europe Creative Health Incubation Investment Partnerships America Programs Services MEASU ASURES O S OF SUCCESS SS WORLD C CLAS LASS LEAD LE ADING SUSTAI AINAB ABLE LE QUALI ALITY EFFICI CIENCY CY GROWTH TH Partner Contract Student Employee Senior EBITDA Student EFTSU New partners EBITDA EVA NPS renewal progression engagement retention Margin commencements 7 Macquarie Australia conference – 4 May 2017

Group KPI ’s – by 2 0 2 0 Quality Efficiency Grow th 2 % * 5 % pass rates improvement 1 8 % to 84% – revenue CAGR Group EBITDA margin University Partnerships 3 % 5 % retention rate 2 0 % University Partnerships improvement to 90% – SAE EBITDA margin EFTSU CAGR University Partnerships 5 new < $ 2 0 m University Partnerships agreements capex per annum * Note: Based on constant currency and CAGR calculated assuming AMEP revenue reduction excluded from FY17 to FY20. This reduces to 3% CAGR against FY17 Group revenue if AMEP revenue is included Macquarie Australia conference – 4 May 2017 8

Operational update

University Partnerships enrolm ents increase 8 % Sem ester 1 2 0 1 7 enrolm ents University Partnerships EFTSU Division 8% 19,047 17,679 20,000 14% 15,991 14,973 18,000 14,676 14,329 14,036 12% Australia/ NZ 14% 13,546 13,273 16,000 10% 14,000 North America 4% 12,000 8% 10,000 Europe 1% 6% 8,000 6,000 Asia 3% 4% 4,000 2% 2,000 0 0% FY1 7 enrolm ents 1402 1403 1501 1502 1503 1601 1602 1603 1701 EFTSU Growth rate Total EFTSU 5% Prior periods exclude the EFTSU of closed colleges – see prior ASX announcements for more details Price 2-3% 10 Macquarie Australia conference – 4 May 2017

Contract renew al progressing w ell Completed in CY17 In Progress in CY17 New agreement HIC with University of Hertfordshire University of Idaho – July 2017 opens in Sep 17 New agreement ICWS with University of Richard Bland College of Swansea William and Mary (International student Nov 2017 recruitment and support) Renewal CRIC with Anglia Ruskin ICM contract with University University of Manitoba Nov 2017 renewed until 2028 Retender Curtin College with Curtin AMEP contracts University retendered though with a Dec 2017 reduction in regions Deakin College with Deakin University Dec 2017 11 Macquarie Australia conference – 4 May 2017

Evolving the pathw ay m odel in a m ature m arket – W estern Sydney University exam ple W SUI C JV pathw ay • Parramatta based • Pathway college to all Western ~ 8 0 0 Equivalent Full Tim e Student Units Sydney University campuses • Pre-university and 1 st year programs SI BT pathw ay • Partnership established in April • CBD based 2015 • Uses Navitas owned SIBT • University now has three programs which are recognised additional student recruitment by WSU pathways • 1 st year programs only • Enabled by Navitas owned SIBT brand, partner flexibility, CBD location, Navitas marketing W SU Managed Cam pus 1 year pilot • Sydney CBD location • Co-located with SIBT • Full undergrad & postgrad programs • Long term agreement anticipated in H1 FY18 12 Macquarie Australia conference – 4 May 2017

Overview - Richard Bland College of W illiam and Mary University Partnerships Vision To become the preferred transformation partner to universities around the world Adaptation of the standard pathway model that will create value for the partner and Navitas Key details  Richard Bland College is an existing transfer college to + 40 universities and colleges in the state of Virginia  This includes the University of Virginia # 24, William and Mary # 32 and Virginia Tech # 74 *  Navitas has signed a 10 year agreement to recruit, administer and support all international students at Richard Bland College  These students will then have the ability to articulate to the + 40 partnered universities  Strong brand addition to the US partner portfolio * National University Rankings, US News and World , 2017 13 Macquarie Australia conference – 4 May 2017

Careers and I ndustry Division update Division merger progressing well • Due to be largely complete by end of FY17 • Key brands – SAE, ACAP , HSA, AMEP All Careers and Industry businesses approved for new VET Student Loan (VSL) funding regime in April – many providers failed to qualify ACAP reaccredited in April by TEQSA as a Higher Education Provider for the maximum seven years ACAP awarded Self-Accrediting Authority • able to self-accredit courses through to Masters • significantly reduces new course development timeframes SAE Australia launches new series of Diploma programs including Music Production, 3D Animation and Game Development 14 Macquarie Australia conference – 4 May 2017

FY1 7 guidance reaffirm ed FY1 7 EBI TDA result expected to rem ain broadly in line w ith FY1 6 (on a constant currency basis and including the addition of EBITDA from the new ECU Joint Venture) 15 Macquarie Australia conference – 4 May 2017

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