ACADEMIES AUSTRALASIA GROUP LIMITED — Capital/Financing Update 2014

Nov 19, 2014

Thursday, 20 November 2014

Companies Announcements Office Australian Securities Exchange Level 4, 20 Bridge Street Sydney NSW 2000 (Via ASX Online)

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SKILLS TRAINING AUSTRALIA

Academies Australasia (‘AKG’) today completed the acquisition of ‘Transformations – Pathways to Competence and Developing Excellence Pty Ltd’ trading as ‘Skills Training Australia’ (‘STA’).

STA was founded in 1999. It is a registered training organisation that specialises in the delivery of high quality training programs in Nursing, Disability Services, Community Services, Health and Aged Care.

STA’s campus is in Knox, 30km east of Melbourne. It also undertakes workplace based training delivery for clients around Victoria. STA is regulated by ASQA and has a 3-year State Funding Contract in Victoria.

The acquisition of STA continues a strategic objective of diversifying into the Health and Community Services sectors with a differentiated, high quality service offering.

These sectors exhibit strong growth characteristics and are increasingly important to the Australian economy. The intention is to expand the STA business nationally and to offer selected programs to international students, utilising AKG’s existing networks and facilities.

The acquisition is expected to be earnings accretive in FY15.

STA’s revenue for the 12 months to 30 June 2014 (FY14) was approximately $3.65m and normalised Earnings Before Interest and Tax (EBIT) was approximately $1.0m (27%).

The purchase price will be paid in cash, in three tranches, as follows:

Tranche 1: 1.25 times FY14 EBIT ($1.25m. Paid today) Tranche 2: 1.5 times FY15 EBIT (By 31 August 2015) Tranche 3: 1.0 times FY16 EBIT (By 31 August 2016).

The first tranche payment was funded by via a drawdown on an established AKG debt facility and cash reserves. The second and third tranche payments are expected to be funded internally.

The Vendor, Melinda Burgess, will continue to lead the company during the earn-out period.

Christopher Campbell, AKG’s Group Managing Director, said: We have been seeking a high quality entry position into the Health and Community Services training sector and are now delighted to welcome STA into the AKG Group. STA has an excellent reputation for quality and also brings us additional management depth and experience. Our group now comprises 18 separately licensed colleges offering 240 qualifications.

Stephanie Noble Company Secretary

For further information call Christopher Campbell on +61 412 087 088 or +61 2 9224 5555. Academies Australasia has been operating for 106 years and listed on the Australian Securities Exchange for 37 years. The group’s education business now comprises 18 separately licensed colleges operating in New South Wales, Victoria, South Australia, West Australia and Queensland in Australia, and in Singapore. Over the years, Academies Australasia colleges have taught tens of thousands of students from 119 countries.