ASHLEY SERVICES GROUP LIMITED — Capital/Financing Update 2014

Sep 28, 2014

Market Update 29 September 2014

Acquisition of CRICOS Training Business

Key Points

• Acquisition of Perth-based The Cantillon Institute, an established Registered Training Organisation (RTO) focused on the fee for service international student market using its Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) licence

• Provides Ashley Services access to a national CRICOS licence faster than applying for a licence in its own right

• The Cantillon Institute is Perth-based. It now has opportunities to expand into the large Victorian and New South Wales markets using Ashley Services’ national footprint

• The Cantillon Institute has a strong reputation in commercial cookery and hospitality. This creates market opportunity under Ashley Services’ integrated labour hire business model

• The Cantillon Institute offers streamlined visa processing through its association with an Australian University. This is a significant advantage for international students seeking to undertake study in Australia

• The acquisition is forecast to be EPS positive in FY 2016. It has a maximum purchase price of $2.8 million

Sydney, Ashley Services Group Limited (“ Ashley Services ” or “ the Company ”) is pleased to announce that it has acquired 100% ownership of the College of Innovation and Industry Skills Pty Ltd which trades as The Cantillon Institute (“ Cantillon Institute ”), a Perth-based RTO for international students with a CRICOS licence.

Chairman Peter Turner commented: “CRICOS registration was a part of the growth strategy identified during the IPO. I am pleased that the Company has acquired this capability so rapidly. The acquisition of The Cantillon Institute represents an attractive price with major advantages for Ashley Services to expand into the large international student fee for service market”.

The acquisition forms part of Ashley Services’ strategy of diversification of its client and student base. It provides access to the large international student fee for service education market in Australia, estimated to be worth more than $15.6 billion[1] . In the period 1 August 2013 to 31 July 2014, there were 494,625[2] enrolments of full fee paying students in Australia on student visas, a 12% increase over the previous year. More importantly, the vocational education and training ( VET ) component of the total overseas paying students represents 23.9% of total enrolments.

1 (a) Sourced from the Australian Bureau of Statistics’ publication International Trade in Services, by Country, by State and by Detailed Services Category, Calendar Year, 2013 (ABS Catalogue no. 5368.0.55.004) published on 20 May 2014. (b) Includes international students studying onshore on student visas only. (c) ABS revised estimate, up from $14.5 billion published in November 2013. (d) International students from New Zealand and those on usAID/Defence scholarships contributed an additional $134 m and $234 m respectively. (e) Export income does not include income generated by the operations of offshore campuses of Australian institutions.

2 Source: Australian Trade Commission – monthly summary of international student enrolment data – YTD July 2014.

Ashley Services Group Limited

PO > PO BOX 166 T > 02 9672 7777 Blacktown NSW 2148 F > 02 9672 7007 W > ashleyservicesgroup.com.au

A > 11 Holbeche Road

Arndell Park NSW 2148

ABN 92 094 747 510

Since it was established in 2008, The Cantillon Institute has been recognised as a premium provider to the Western Australia hotel and hospitality industries. It has won national and State awards, including a two time finalist for the Western Australian International Training Provider of the Year, Bronze and Silver Medals at the Oceanafest Cooking Competition. One of its commercial cookery students won the Australian Council for Education and Training Student of the Year Award in 2013.

To date, The Cantillon Institute has focused its operations in Perth, with more than 400 graduates from the college. It offers fee for service courses in Commercial Cookery, Hospitality, Small Business Management and Business. It is a business partner with one of Australia’s premier universities which offers “Streamlined Visa Processing” (“ SVP”). This enables international students to participate in eligible university higher education programs. As a result, these students are assessed to be low risk while applying for their student visa. This gives The Cantillon Institute a distinct advantage in attracting students from wider markets. In addition, the Cantillon Institute has from six months to one and a half years advanced standing arrangement (otherwise known as an “ articulation arrangement ”) for its Business and Hospitality courses with certain universities in Australia.

The Cantillon Institute is highly regarded in commercial cookery and hospitality training. It will consequently afford Ashley Services the ability to use its integrated labour hire model for these students.

Ashley Services’ national footprint provides a platform for the growth of The Cantillon Institute. More importantly, it is estimated that more than 60% of the international student market resides in Victoria and New South Wales. Currently The Cantillon Institute has been Perth-centric and through Ashley Services there are opportunities to fast track growth of the business in these States. Ashley Services ability to provide jobs through its labour hire division will be a major enhancement to Cantillon Institute’s international student offering.

Under the terms of the transaction, the founding Chief Executive Officer of The Cantillon Institute, Mr Parampreet Singh, will continue to manage it. An accredited university lecturer, in 2013 Mr Singh was recognised with an Australia/India Young Executive of the Year Award. He brings strong leadership capability and international experience in key markets such as India, Thailand and Vietnam. Mr Singh also has strong ties with Australian universities.

The acquisition is forecast to be earnings per share ( EPS ) positive for the year ending 30 June 2016. Key terms of the transaction are:

• initial consideration of approximately $2 million (subject to final adjustments to be determined post-acquisition); and

• maximum earn out of $0.745 million based on defined revenue targets over a period of 20 months.

The acquisition has been funded from existing cash reserves.

END

Ashley Services Group Limited ABN 92 094 747 510

A > 11 Holbeche Road PO > PO BOX 166 T > 02 9672 7777 Arndell Park NSW 2148 Blacktown NSW 2148 F > 02 9672 7007 W > ashleyservicesgroup.com.au

For further information, please contact:

Ross Shrimpton Managing Director Telephone: +61 2 9672 7777 Email: ross.shrimpton@ashleyservicesgroup.com.au

About Ashley Services Group

Founded in 1968, Ashley Services Group is a company that is listed on the Australian Securities Exchange. It specialises in training and labour hire. In 1999 the Company was acquired by the current owner of Ashley Services and has subsequently grown and diversified. As a Vocational Education Training (VET) provider, the Training business services a wide range of clients in the corporate and public markets, offering training for 103 qualifications in 99 locations across Australia. Ashley Services’ Labour Hire business provides services to large national and multi-national clients. It is a leading labour hire provider to the warehouse and logistics industries, and also has a growing presence as a provider to the horticultural, manufacturing and trades industries.

Ashley Services Group Limited ABN 92 094 747 510

A > 11 Holbeche Road PO > PO BOX 166 T > 02 9672 7777 Arndell Park NSW 2148 Blacktown NSW 2148 F > 02 9672 7007 W > ashleyservicesgroup.com.au