Audited results

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Audited results
For the year ended 31 December 2008
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A small group of passionate people is all it
takes to change the world. In fact, if you look
through the history of humanity, they are the
only ones who have ever changed anything. Mark
Shuttleworth.
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Agenda

• Positioning
• Quality
• Operations
• Financial
• Conclusions

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Strategic positioning
Chairmans letter to shareholders

• our business is advantageously positioned in
  such vital sectors as education, training and
  personnel placement.

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U.S. male unemployment rates
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U.S. male unemployment rates
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Operations

• The path to finding employment lies in acquiring
  a tertiary qualification and not matric alone.
• Econometrix January 2009

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Skills shortage in SA
Source Department of Labour critical skills
list 2008
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Skills, poverty and jobs
For me education and skills acquisition is the
key to BEE and dealing with poverty and
unemployment. President
Kgalema Motlanthe Quoted in the Mail and
Guardian, 2009
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Strategic positioning
Chief Executives report to stakeholders
The enduring worth of the Groups core
operations and the annuity nature of much of the
revenue continues to underpin the sustainability
of the Groups robust business model.
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Balance sheet
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Annuity nature

• 50 of education revenue is returning students
• Students can be with us up to 15 years
• Growth in contract businesses
• Imfundo
• Resourcing

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Sustainability

• Environmental
• Sense of renewal
• Academic experience - quality - enjoyment -
  value
• Enrolments - returning students - word of
  mouth - tenure

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Sustainability (continued)

• Barriers to entry
• Regulatory and governance
• Investment - human resources -
  infrastructure - problem areas - balance sheet

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Ploughing back
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Ploughing back
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Employability

• 90 of degree graduates were employed in less
  than three months after graduation
• In certificate programmes, which are at the lower
  end of our qualifications, more than 65 of
  graduates find employment within the first three
  months after graduation

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Strategic positioning

• Chairmans letter to shareholders
• While the fixed property portfolio is reported
  in the balance sheet at a cost of R531 million,
  management estimate the replacement cost of the
  present infrastructure at more than R2 billion

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Investment
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Capacity
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Quality

• American biologist Peter Agre once said
• Our single greatest defence against scientific
  ignorance is education.
• Chairmans letter to shareholders
• Our product and service delivery values are
  recognised to include an unequivocal commitment
  to superior teaching instruction and academic
  excellence.

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Quality

• IIE and governance
• The introduction of a Higher Certificate in
  Photography
• 35 accredited programmes in the IIE stable
• Work Readiness Programme (WRP)

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Quality

• The launch of IIE Forums which provide
  opportunities for reflection and debate on key
  educational issues with a focus on the role of
  private education
• The launch of the Private Higher Education
  Network (PHEN)

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Quality

• The Academic Advisory Council, comprising leading
  independent educational experts, which advises
  the Group in educational matters and policy

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Quality

• IIE Senate
• Ensures highest academic standards
• that prepare students for careers
• Majority are academics
• Elected representatives of the lecturing and
  teaching body
• Elected student representatives also serve on
  Senate
• Sub committees

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Academic highlights
Schools

• Abbotts College, CrawfordSchools and
  Trinityhouse achieved 100 pass rate
• Our 1043 matric candidates obtained distinctions
  in almost a third of subjects written, 2332 in
  total

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Academic highlights
Schools

• Our schools continue to contribute significantly
  to the national output of key subjects with
  averages per candidate as follows
• Mathematics 75
• Physical Science 66
• English 70

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Academic highlights
Tertiary

• National pass rate for students of Vegas
  Honours degrees was 89
• Final year students in the diploma in Accounting
  and Financial Computing at College Campus
  achieved a pass rate of 78

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Academic highlights
Tertiary

• Varsity College final year UNISA students
  achieved an overall pass rate of above 80,
  including a 95 pass rate in English
• In the UNISA CTA examinations, five Varsity
  College students were placed in the top 20 overall

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Recruitment quality

• Major focus on training 7 hours per month
• Repeat business from 65 of clients in one year
• 12 of client companies used us for the first
  time in 2008

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lets say more or less 25 up across the board
in terms of headlines, profits, revenues,
dividends etc. Good numbers, resilient
business. Classic FM March 2009
Operations
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ADvTECH Education
SCHOOLS
TERTIARY
SKILLS
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ADvTECH Resourcing
RECRUITMENT
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Scale of operations

• Approx 46 500 students (2007 45 000)
• 52 education sites and campuses
• 21 staffing branches
• Approx 4 900 placements (2007 4 300)
• Number of employees 3 643
• 146 Masters degrees
• 24 Doctorates
• 266 Alumni

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Operations
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Operations
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Operations
Investments

• The acquisition of Trinityhouse School in Gauteng
  for R104m
• The acquisitions of staffing companies IT Edge,
  Tech-Pro Personnel and The Working Earth
• Total expenditure on acquisitions R143m

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The chairman said

• The Groups financial performance gives credence
  to our business model, our values and our
  operational framework.
• Our Education division has again made important
  contributions to South Africas academic
  proportion and its transformational progress.
• In the Resourcing division, the focus on key
  niche markets coupled with its professional
  application, service and commitment, served to
  once again generate outstanding results.

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Financial highlights
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Balance sheet
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Cash flow
Cash conversion of earnings
132
128
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FINANCIAL ANALYSIS
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Revenue trend
5-year CAGR in revenue 20
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Group operating margin
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Cash flow generation
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Net cash position
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HEPS
5-year CAGR in HEPS 35
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Segmental analysis Revenue
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Segmental analysis Operating Profit
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Education trends
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Resourcing trends
Revenue
Rm
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Prospects

• Expected that student enrolment and customer
  demand will be maintained
• The Group has a sound balance sheet
• Sufficient resources to optimally manage the
  business
• and to consider acquisition and expansion
  opportunities
• Confident of increased earnings in the year ahead

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5 Year Market Cap Index
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Questions