2020 INTERIM RESULTS 19 August 2020
AGENDA Background Interim results – 30 June 2020 COVID-19 Business overview Conclusion 2
Background
Background HISTORY SINCE 2011 Curro listed on the JSE – June 2011 End Jan End June 9-year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 CAGR Campuses 12 22 26* 32* 41 48 51 58 70 76 76 23% Schools 24 61 72 80 100 114 127 138 166 175 177 25% Learners 4 200 12 473 21 027 28 737 35 148 42 343 45 870 51 305 57 597 62 698 59 967 34% *Includes Embury Institute for Teacher Education 4
Background STRATEGY BEFORE DECEMBER 2014 Greenfields Focus was on Curro traditional schools. Entered into Meridian venture in 2013 – thereafter developed Curro • Included parallel medium schools – an Afrikaans Academy school model. stream as well as an English stream. • Some campuses were developed in rural areas with The bulk of the acquisitions were realigned to Curro lower learner number growth and has seen an campuses with the biggest acquisitions being Woodhill, economic strain for the previous 3 to 4 years. Northern Academy etc. Prior to 2011, the maximum learners per class was 20. At Lower land prices and limited competition. some schools this was phased out and learners per class increased to 25 . 5
Background STRATEGY AFTER DECEMBER 2014 Competition entered catchment areas of some of our Greenfields were only done in the Western Cape, schools which led to negative effects for two to three years, Gauteng and KwaZulu-Natal . Several acquisitions such as Windhoek Gymnasium, Baobab School etc – IRR of but most of the schools recovered quickly. 25% Aggressive growth in the Curro Academy market Pressure on higher-fee schools (economic and (from 2015). immigration) Only English medium Curro traditional schools Increase in land prices as competition increased have been constructed. The continuous focus on making education more affordable led to the launch of Curro DigiEd in 2019 The education landscape started changing in 2012 with and Curro Online in 2020. competition entering the private school market. To stay competitive, additional unplanned capital spend in Select and traditional Curro schools (construction of Curro traditional schools have 25 learners per class and additional sport facilities such as AstroTurf hockey fields, Curro Academy and Meridian schools have 35 learners swimming pools etc). per class. DigiEd (class dependent). 6
Background STRATEGIC FOCUS – BEFORE AND AFTER 2014 Campuses Campuses 31 76 Before After Schools Schools 2014 2014 177 79 Learners Learners 59 967 27 937 Schools % of Models added since total 2014 Curro schools 35 36% School growth Select schools 21 21% since 2014 Academy and Meridian schools 29 30% DigiEd and NCV schools 5 5% 124% Curro Online 2 2% Assisted learning 2 2% Castles 4 4% Total 98 100% 7
Background NUMBER OF LEARNERS CAGR 12% YOY 4% 70 000 62 698 59 967 57 597 60 000 51 305 45 870 50 000 42 343 40 000 35 148 27 916 30 000 20 000 10 000 0 2014 2015 2016 2017 2018 2019 End Jan 2020 End Jun 2020 Meridian 7 941 9 948 9 798 9 675 9 313 9 193 9 621 9 529 Curro Academy 0 990 2 110 3 810 5 844 8 281 10 757 10 510 Curro Castle 474 572 760 914 1 278 1 535 1 497 1 001 Curro, Curro Select and other 19 501 23 638 29 675 31 471 34 870 38 588 40 823 38 927 8
Background NUMBER OF CAMPUSES 76 177 schools 70 80 166 schools 70 58 138 schools 51 60 48 127 schools 114 schools 41 50 100 schools 31 40 79 schools 30 20 10 0 2014 2015 2016 2017 2018 2019 End Jun 2020 Meridian 2 6 7 7 7 7 7 Curro Academy 0 2 3 5 8 11 13 Curro Castle 2 2 4 4 5 6 6 Curro, Curro Select and other 27 31 34 35 38 46 50 9
Background KEY OPERATIONAL FOCUS AREAS (1) Strong stakeholder Holistic Technology relationships curriculum Accessibility in Growing footprint • Government, • 60 000 devices on a closed network terms of pricing • Digitally-led, future industry bodies • 22TB daily data usage • South Africa focused • Community-driven • Online collaboration at 43 703 • Pricing models to suit • Namibia • Investment in • Committed primary groups on Microsoft Teams • Botswana all income streams Robotics, coding, shareholder performing arts and sport • Grade 12 People examination options Business Ability to utilise scale, expertise (IEB, NSC, • Experienced executive structure to expand the offering Cambridge) team • Academic quality • Ability to add new • Solid schools’ leadership • Adapting to global market needs models quickly ensured across • Continued investment in (i.e. Online, DigiEd, NCV, • Centralisation of non- models (core training and development, assisted learning) core functions curriculum) SETA accreditation 10
Background KEY OPERATIONAL FOCUS AREAS (2) * CLIENT SERVICE * DigiEd, NCV and MARKETING CALL CENTRE ** Curro Online • Enrolments, brand and reputation Continued focus on • Curriculum development management consolidation to: • Digital channel development - focus 2019 • Ensure optimisation and to * DEBT COLLECTION CURRO CREATE and CALL CENTRE unlock efficiencies throughout CURRO SPORT the business • Be poised for growth with a much stronger customer-centric INFORMATION TECHNOLOGY orientation. • Software and hardware SHARE OPTION • SCHEME Centralised cost structures to • 60 000 devices on a closed network lower costs at school level • 22TB daily data usage KEY SERVICES Centralisation of non-core HUMAN RESOURCES functions to ensure school’s • Facility management • Management of approximately focus on core functions • Fleet management 6 325 employees • Safety and security FINANCE CURRICULUM * Started in 2019 • Continuous development and ** Started in 2020 management/control of academic quality (all brands) 11
Background CURRO PRODUCT ROADMAP CURRO DigiEd Innovative, technologically-advanced, 1998 to project-based learning through e-learning 2012 Curro, Select, Curro Castle 2019/ tools and videos, teachers/tutors provide Enriched curriculum, wide variety 2020 one-on-one assistance as needed. of sports, cultural and extramural activities, superior facilities, IEB examination Curro Online 2013 to Alternative to mainstream 2019 2015 schooling, high-quality curriculum, home-based with teacher touchpoints throughout the day, designed for the parent who has limited time to Assisted learning and NCV Meridian and Academy supervise home-schooling. Assisted learning : high-quality academic intervention, Enriched curriculum, focussed teaching styles adapted to suit learner needs, CAPS sports and cultural activities, cost- curriculum, NSC examination sensitive, NSC examination NCV : Runs parallel to Grade 12, high-standard, skills- focussed allowing learners to specialise from a school- going age 12
Background EXPANDING OUR MODELS (as at June 2020) Curro, Curro Select, Assisted learning Curro Academy and Curro DigiEd and Curro Curro Castles and NCV colleges Meridian campuses Online campuses Campuses 6 46 20 4 Learners 1 001 38 121 20 039 806 Average R4 482 R5 269 R2 680 R2 867 monthly fees Maximum learners 25 25 35 Class dependent per class 3 months – 3 months – 18 years 5 – 18 years 7 – 18 years Ages 5 years 13
Background SA EDUCATION LANDSCAPE % of government expenditure • More spending on higher education (due to SA basic 20% #feesmustfall) education budget • R281 billion Budget focus on ECD and special needs programmes • Per pupil spending on average R16 500 • Budget allocation – 79% compensation of 6% of employees, 9% goods and services, 4% buildings and other fixed infrastructure GDP • Capital spend on TVET colleges, therefore decline in number of public schools • Private schools protected by the constitution 2019/2020 https://www.gov.za/speeches/basic-education-budget-vote-speech-17-jul-2019-0000 14
Background MARKET ANALYSIS Education (schools) sector 2000 2018 5% (13%) 16 000 000 30 000 26 789 Learners Schools 14 000 000 12 230 194 25 000 23 289 11 647 172 4.6% of total 12 000 000 learners 20 000 independent 10 000 000 schools (2018) 8 000 000 15 000 6 000 000 92% 10 000 160% 4 000 000 5 000 2 000 000 1 865 589 348 971 226 692 0 0 Public schools Independent schools Public schools Independent schools Source: Centre for Risk Analysis, Socio-Economic survey of South Africa 2020 – Chapter 8: Education 15
Background CURRO PARENT ANALYSIS Analysis of parents/guardians’ employment sectors 33% SMME 21% Government 20% Not specified 11% Multinational 9% Large corporation 4% Mid-tier 1% NGO and religious 1% Curro 0% 5% 10% 15% 20% 25% 30% 35% 16
Recommend
More recommend
