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ASX RELEASE

29 AUGUST 2024

FY24 RESULTS PRESENTATION

NextEd Group Limited ( ASX:NXD ) ( NextEd ) provides its results presentation for the year ended 30 June 2024 (FY24).

NextEd invites investors to attend a webinar today at 10:30am (AEST) to discuss the results being hosted by NextEd’s Chief Executive Officer, Glenn Elith, and Chief Financial Officer, Michael Fahey.

Webinar registration URL : https://us06web.zoom.us/webinar/register/WN_KROW2UDuTQ69_8v8xjBg-Q

The results presentation webinar will be live streamed via the above URL and will also be recorded and made available shortly after the presentation on:

NextEd Group’s website: https://nexted.com.au/investor centre/

This announcement has been approved by the Board of NextEd Group Limited.

For further information

Glenn Elith Lisa Jones Chief Executive Officer Company Secretary [email protected] [email protected]

Registered Address: Level 2, 7 Kelly Street, Ultimo, NSW, 2007

Phone: 02 8355 3820

ABN: 75 105 012 066

nexted.com.au

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FY24 Results Presentation

29 August 2024

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1.	Financial highlights	3
2.	Operating highlights	6
3.	Macro environment and NextEd responses	10
4.	Financial results	13
5.	Immediate outlook	19
6.	Appendices	22

Financial highlights

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Solid results in difficult market conditions

FY24 financial results

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NPAT(A)
Revenue EBITDA [1]
adjusted [2]
$111.4m $15.0m $0.2m
$9.1m $1.7m $5.8m
vs FY23 vs FY23 vs FY23
Operating Cash position
cash flows at end June 2024
$1.7m $19.3m
$23.5m $20.9m
vs FY23 vs FY23
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Consolidated revenue grew 9% - growth achieved in the International Vocational and Go Study segments
EBITDA impacted by lower number of Technology & Design students - international students switching to cheaper VET colleges (visa hopping now banned under legislative change in late 2023) and increased student visa rejection rates
Operating cashflows turned positive in H2 FY24 ($3.6 million) – driven by improved cash collections and targeted cost reductions in response to changing market conditions
Healthy balance sheet position maintained - $19.3 million cash on hand and no financial debt

1. EBITDA (before impairment) is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the statutory profit under AAS adjusted for specific noncash and significant items

2. NPAT(A) adjusted is calculated as the net profit after tax adjusted for impairment (FY24: $28.9m; FY23: $nil), the after-tax impact of amortisation associated with acquired intangible assets (FY24: $1.3m; FY23: $1.9m) and interest and depreciation costs for leased premises undergoing fit out prior to any revenue generation (FY24: $1.2m; FY23: $0.5m)

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Operational improvements underpin FY24 performance

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More international New courses
vocational students accredited in period
at June 2024
3,146
6
100
Total courses 148
vs June 23
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Cost management[1] $5.0m Annualised savings achieved

International vocational student numbers grew by 3% vs June 2023
Growth in 2H FY24 was circa 800 students driven by Hospitality and Healthcare courses – offsetting some of the fall in English language student numbers
6 new accredited courses (3 vocational health care and 3 vocational IT) approved by regulators in FY24 - demonstrating strong regulatory standing
Cost reductions include exiting leases in Sydney and Brisbane, discontinuing use of short-term licensed classrooms, reducing non-teaching headcount and optimizing discretionary spend
Annualised cost savings achieved from exiting leased premises ($1.7 million) and reductions in non-teaching labour costs ($3.3 million)

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1. Annualised cost savings from early FY25

2 Operating highlights

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FY24 strategic investments

New course development

Launched international student hospitality vocational courses in substantial Melbourne and Sydney markets in September 2023 – impressive growth momentum achieved with 1,158 students at end of July 2024
Launched 3 high demand international student vocational healthcare courses (aged care, individual support and community services) in March 2024 – encouraging growth with 236 students at end of July 2024
Received exclusive regulatory approval for a period of 5 years for internally developed Diploma of e-Commerce and Advanced Diploma of Marketing Automation qualifications in May 2024, with first student intakes planned for October 2024

Campus expansion

Melbourne campus expansion - 12 additional classrooms and a commercial teaching kitchen
Brisbane campus expansion - 13 additional classrooms enabling the exit of 10 remaining lower yield, short term licensed classrooms
Relocated Adelaide campus and launched international student operations in Adelaide in April 2024
Relocated Gold Coast campus in April 2024, including new commercial teaching kitchen and aged care lab facilities - tapping into the attractive Gold Coast market for both domestic and international students

Student mix shift to higher margin vocational courses

International student mix shift to higher margin vocational courses in Management, Hospitality & Healthcare

Student number mix at end of period

Student numbers at end of period

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2%
7% 7% 623
15%
26% 26% 2,422
488
168
29%
1,021
1,846
1,957
68% 67% 6,325
54%
4,719
3,627
Jun-23 Dec-23 Jun-24 Jun-23 Dec-23 Jun-24
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Growth in higher margin vocational courses, especially the newly launched Hospitality and Healthcare courses has largely offset the decline in English language student numbers since the end of H1 FY24
English language student numbers impacted by higher rates of student visa rejections due to government visa policy
Higher margin vocational students represented 46% of the International Vocational segment student cohort at the end of FY24, up from 33% in December 2023

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Managing campus utilisation

NextEd campus locations at Number of classrooms by end of July 2024 state at end of July 2024

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8
11
74
NSW
59
VIC
QLD
SA
WA
87
8 campuses Total number of classrooms 239
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Average weekday classroom utilisation* in H2 FY24 was 71%

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100
64% 75%
90
80
22
32
70
60
77%
50
12
40
65
30 57
20 41 88%
45%
10 1
6
5 7
0
NSW VIC QLD SA WA
Utilised Unutilised
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Course being delivered in a classroom during the daytime shift
Campuses located in prime CBD locations to tap into large addressable markets – can support significant future revenue growth potential without further property investment
Investments made in specialist teaching facilities to support delivery of high demand hospitality, aged care and IT courses where student numbers are growing
Exited the Thomas Street, Sydney campus (18 classrooms) in July 2024 – delivering annual savings of circa $1.3 million
Current campus utilisation negatively impacted by international student visa policy – increases in visa rejections and delays in visa processing impacting student numbers
Seeking to license or sublease surplus classrooms to improve utilisation

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Macro environment and

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Emerging impacts of government migration policy

The Federal Government has targeted a reduction in international student numbers to assist halving net migration into Australia by 2025
NextEd continues to outperform the industry on international student visa approval rates – but has experienced a significant decrease in approvals since January 2024 despite maintaining reputable recruitment practices and receiving no advice from government about different assessment criteria
The Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 introduced in May 2024 proposes international m m (‘c p ’) f m 2025 - currently subject to a Senate Inquiry
NextEd supports legislative amendments to target unscrupulous operators who service non-genuine students - however, we are concerned proposed international student caps from 2025 will negatively impact quality private providers like NextEd and will damage ’ p
NextEd has experienced significant delays in lodged visa applications being processed since January 2024 – applications historically processed in several days are now in some cases taking many months - causing students to miss course commencement dates

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NextEd student visa approval rates vs.
100% industry
88% 88%
77% 79%
80% 73%
66%
62% 61%
60%
40%
20%
0%
Jul - Sep 2023 Oct - Dec 2023 Jan - Mar 2024 Apr - Jun 2024
NextEd Industry average
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Number of NextEd visas approved
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1800 1660
1600
1400
1200 1102
1000 875
771
800
600
400
200
0
Jul - Sep 2023 Oct - Dec 2023 Jan - Mar 2024 Apr - Jun 2024
Visas approved
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Source: Department of Home Affairs English language visas granted (excluding China) plus total vocational student visas granted

NextEd responses to market conditions

In response to current international student market conditions, NextEd has:

Focused on growing domestic student revenues and profits – not impacted by immigration policy
Prioritised growth in high demand, higher margin vocational courses in Hospitality, Aged Care and IT (including newly accredited diplomas in e-Commerce and Marketing Automation) – where visa approval g g w F v m ’ D c m 2023 g g critical skilled workforce needs
E c g p ck g E g g g w N x E ’ v c courses in their visa applications to demonstrate genuine educational intentions – and achieve higher lifetime student value
Implemented annualised cost base reductions (in addition to variable teaching and agent commission costs) of approximately $5.0 million from early FY25
Ceased campus footprint expansion and ended the lease over the Thomas Street campus in Sydney (18 classrooms) in July 2024
Planned total investing cashflows to be under $1.0 million in FY25
Completed a $10.0 million contingent liability facility with Commonwealth Bank of Australia to release approximately $9.0 million of cash that was previously used to secure bank guarantees
Monitored opportunities to recruit and service students who become displaced by other financially distressed colleges as a direct result of visa policy – approximately 60 displaced English language students were enrolled in Adelaide in August

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Financial results

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Revenue growth driven by vocational course demand

Change

Full year actuals

($000’s)	FY24	FY23	%
Revenue	111,367	102,220	9
Gross profit	57,279	56,868	1
Gross profit % to revenue	51%	56%
Operating costs	(42,319)	(40,194)	(5)
EBITDA excluding impairment	14,960	16,674	(10)
Impairment of intangible assets	(28,925)
EBITDA including impairment	(13,965)	16,674	(184)
Depreciation and amortization	(15,052)	(11,986)	(26)
EBIT	(29,017)	4,688	(719)
Net finance expense	(3,533)	(1,772)	(99)
Profit before tax	(32,550)	2,916	(1,216)
Income tax benefit	1,319	692	91
NPAT	(31,231)	3,608	(966)
Impairment of intangible assets	28,925
Amortization of acquired intangibles	1,273	1,857	(31)
Pre-revenue generation lease costs	1,194	548	118
NPAT(A) adjusted*	161	6,013	(97)

Revenue and EBITDA growth driven by International Vocational, Go Study and Domestic Vocational segments
Gross profit reduced as percentage of revenues due to course mix swing away from higher margin bachelor degree courses in the Technology & Design segment and higher teaching costs
2H FY24 operating costs were $1.9 million lower than 1H FY24 – active response to lower student numbers
Non-cash impairments of goodwill and other intangible assets totaling $28.9 million recognised in 2H FY24 as a direct consequence of the uncertainty around Federal Government policies to limit future international student numbers

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NPAT(A) adjusted is calculated as the net profit after tax adjusted for impairment (FY24: $28.9m; FY23: $nil), the after-tax impact of amortisation associated with acquired intangible assets (FY24: $1.3m; FY23: $1.9m) and interest and depreciation costs for leased premises undergoing fit out prior to any revenue generation (FY24: $1.2m; FY23: $0.5m)

Segment results – vocational student strength

($000’s)	International Vocational	Technology & Design	Go Study	Domestic Vocational	Elimination / Corporate	Total	▪	International Vocational segment revenue grew 15% vs pcp - vocational course revenues in 2H FY24 grew 34% vs 1H FY24 as newly launched courses in
Revenue								Hospitality and Healthcare gained traction
FY24	85,849	12,354	5,865	8,647	(1,348)	111,367	▪	Go Study segment revenue grew 14% vs pcp and
FY23	74,720	15,446	5,133	8,218	(1,297)	102,220		EBITDA returned to profitability
Change	11,129	(3,092)	732	429	(51)	9,147	▪	Domestic Vocational segment revenue grew 5.2% vs pcp following including from positive growth following
Variance %	15%	(20)%	14%	5%	4%	9%		the opening of the new Adelaide campus
EBITDA*							▪	Domestic Vocational segment EBITDA was flat vs
								pcp, however 2H FY24 was 198% higher than 1H
FY24	20,645	1,376	600	1,882	(9,543)	14,960		FY23 due to higher revenue and operational
FY23	19,390	3,756	(151)	1,931	(8,252)	16,674		improvements
Change	1,255	(2,380)	751	(49)	(1,291)	(1,714)	▪	Technology & Design segment revenue declined 20% vs pcp as some international students switched to
Variance %	6%	(63)%	497%	(3)%	(16)%	(10)%		cheap vocational courses delivered by other colleges

▪ Technology & Design segment revenue declined 20% vs pcp as some international students switched to cheap vocational courses delivered by other colleges and new international student enrolments were constrained by government visa policy

* EBITDA is defined as earnings before impairment, interest, tax, depreciation and interest

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Cost management update

**Opex* pre-AASB16**

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30,000
25,000
20,000
Q4
15,000
10,000
Q3
5,000
-
H1 FY22 H2 FY22 H1 FY23 H2 FY23 H1 FY24 H2Q3 FY24
$'000s
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Cost reductions were actioned in 2H FY24 - circa $1.5 million lower costs than 1H FY24
Cost reduction actions have been implemented across all functions and departments (non-teaching headcount and property costs) – annualised cost savings of circa $5.0 million from early FY25

* Opex includes all operating costs including rental costs on a pre-AASB16 basis

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Cash flows – strategic expansion investments

Operating cash flows improved in H2 FY24, driven by active debtor management and early benefits from targeted cost reductions
Campus expansion projects are now complete
$10.0 million facility implemented in H2 FY24, freeing up circa $9.0 million of cash previously used to support bank guarantees

($000’s)	FY24	FY23
Operating activities (excl. M&A costs)	1,708	25,180
Investing activities	(11,411)	(6,146)
Financing activities	(1,280)	(15,931)
Net increase in cash and cash equivalents	(10,921)	3,103
Cash and cash equivalents at the beginning of the year	30,264	27,161
Cash and cash equivalents at the end of period	19,343	30,264
Term deposits securing bank guarantees	-	9,931
Total cash balance	19,343	40,195

Operating cash flows – by half year

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4,000
3,000
2,000
3,600
1,000
1,708
0
(1,000) (1,892)
(2,000)
(3,000)
H1 FY24 H2 FY24 FY24
$000's
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Strong balance sheet position

($000’s)	Jun-23	Dec-23	Jun-24
C urrent assets
Cash and cash equivalent	30,264	16,834	19,343
Trade receivables	7,118	7,597	14,972
Inventories	341	238	110
Prepayments and other assets	12,280	8,585	6,742
T o tal	50,003	33,254	41,167
N o n-current assets Trade receivables	445	712	2,179
Property, plant and equipment Right-of-use asset	9,696 38,665	16,334 45,577	17,628 41,510
Intangible assets Other assets (term deposits for bank guarantees) T o tal	63,330 9,931 122,067	62,068 8,077 132,768	31,800 - 93,117
T o tal assets	172,070	166,022	134,284
C urrent liabilities
Trade and other payables	9,802	9,776	10,367
Contract liabilities	43,101	28,750	30,330
Lease liabilities Employee benefits	5,996 2,179	7,470 2,476	7,472 2,323
Provisions	194	190	203
T o tal	61,272	48,662	50,695
N o n-current liabilities
Contract liabilities	445	712	2,179
Deferred tax liabilities	4,294	3,903	2,965
Employee benefits	207	258	258
Provisions	2,570	2,595	3,164
Lease liabilities	37,844	44,083	40,399
T o tal	45,360	51,551	48,965
T o tal liabilities	106,632	100,213	99,660
Equity	65,438	65,809	34,624

Contract liabilities (deferred revenue)

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80,000
70,000
60,000
28,771
23,865
50,000 35,900
29,023
40,000 21,132
30,000
20,253
17,983
18,363
43,546
20,000 40,290
30,652 29,462 32,509
10,000 16,352 17,988 14,245
-
Dec 19 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24
(pre-COVID) (Proforma)
Paid & due for payment Not yet due for payment
$'000
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Contract liabilities balance grew by $3.0 million in H2 FY24 as the mix of students shifted to higher margin vocational students.
Vocational students generally undertake longer duration courses and are invoiced in advance with bi-monthly payment plans.
Higher mix of vocational students has resulted in both higher contract liabilities and trade receivables

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5 Immediate outlook

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Immediate outlook

Over the longer term, we expect government policy to protect international education export earnings (which also materially impacts the tourism industry and GDP growth) and to support Australia's future workforce requirements and economy

NextEd is positioning itself to capitalise on government changes once clarified and to take advantage of the likely tightened competitive landscape. NextEd will continue to execute on our focused strategy by leveraging its:

Differentiated and unique market position
High demand course range and study pathways for students – including in critical skills areas where there is strong workforce demand
National campus footprint in prime CBD locations with significant future revenue growth potential without further property investment
Track record of successfully adapting to changes to market conditions and regulatory environment in an industry with compelling long-term growth drivers

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Thank You

Appendices

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NextEd’s differentiated market position

Diversified revenue base:

Broad course range in English language, vocational and higher education segments
Domestic and international students – broad nationality mix

Strong compliance record reduces risk and enables new course accreditations:

Swift regulatory approvals for new campuses and courses underscore reputation and regulatory standing
Tuition pricing, source market and governance strategies in place to deter non-genuine international students

National campus footprint complemented by online delivery:

Extensive international student agency relationships and capabilities:

Quality CBD campuses in all major metropolitan Australian cities, including locations classified as regional
Trusted relationships with over 500 international student recruitment agents from a broad range of source countries
Many courses with online delivery or work placement components
Track record of cancelling agent agreements when unscrupulous behaviours are detected

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Government funding and tuition loan flexibility for domestic students:

Vocational funding contracts with 5 State and Territory governments
HELP loans accreditation for certain vocational and higher education courses

Industry relevant curriculums:

Delivering courses in high-demand skills where there is strong and/or growing demand for graduates – and immigration opportunities available
Work closely with industry participants to assist students achieve work experience and job-ready learning outcomes

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Income Statement (pre and post AASB16)

			Full year	actuals				Change
		FY24			FY23		$	%	$	%
($000’s)	Post AASB16	Pre AASB16	*Difference*	Post AASB16	Pre AASB16	*Difference*	Post AASB16		Pre AASB16
Revenue	111,367	111,367		102,220	102,220		9,147	9	9,147	9
Agent commissions	(22,044)	(22,044)		(19,527)	(19,527)		(2,517)	(13)	(2,517)	(13)
Education expenses	(32,044)	(32,044)		(25,825)	(25,825)		(6,219)	(24)	(6,219)	(24)
Gross profit	57,279	57,279		56,868	56,868		411	1	411	1
Gross profit % to revenue	51%	51%		56%	56%
Other income	37	37		37	37		-	-	-	-
Employee costs	(26,720)	(26,720)		(24,573)	(24,573)		(2,147)	(9)	(2,147)	(9)
Receivables impairment	(1,266)	(1,266)		(1,860)	(1,860)		594	32	594	32
Property costs	(4,900)	(16,403)	11,503	(4,514)	(13,596)	9,082	(386)	(9)	(2,807)	(21)
Marketing	(3,478)	(3,478)		(3,729)	(3,729)		251	7	251	7
Other expenses/income	(5,992)	(5,992)		(5,555)	(5,555)		(437)	(8)	(437)	(8)
EBITDA excl impairment and M&A	14,960	3,457	11,503	16,674	7,592	9,082	(1,714)	(10)	(4,135)	(54)
Impairment of intangible assets	(28,925)	(28,925)		-	-		-	-	-	-
EBITDA incl impairment	(13,965)	(25,468)	11,503	16,674	7,592	9,082	(30,639)	(184)	(33,060)	(435)
Depreciation and amortization	(15,052)	(6,084)		(11,986)	(5,062)		(3,066)	(26)	(1,022)	(20)
- Lease related	(8,968)	-	(8,968)	(6,924)	-	(6,924)	(2,044)	(30)	-	-
- Other expenses	(6,084)	(6,084)		(5,062)	(5,062)		(1,022)	(20)	(1,022)	(20)
EBIT	(29,017)	(31,552)	2,535	4,688	2,530	2,158	(33,705)	(719)	(34,082)	(1,347)
Net finance expense	(3,533)	850		(1,772)	828		(1,761)	(99)	22	3
- Lease related	(4,383)	-	(4,383)	(2,600)	-	(2,600)	(1,783)	(69)	-	-
- Other expenses/income	850	850		828	828		22	3	22	3
Profit before tax	(32,550)	(30,702)	(1,848)	2,916	3,358	(442)	(35,466)	(1,216)	(34,060)	(1,014)
Income tax benefit	1,319	1,319		692	692		627	91	627	91
NPAT	(31,231)	(29,383)	(1,848)	3,608	4,050	(442)	(34,839)	(966)	(33,433)	(826)
Impairment of acquired intangibles	28,925	28,925		-	-		-	-	-	-
Amortization of acquired intangibles	1,273	1,273		1,857	1,857		(584)	(31)	(584)	(31)
Pre-revenue generation lease costs	1,194	774	420	548	473	75	646	118	301	64
NPAT(A) adjusted*	161	1,589	(1,428)	6,013	6,380	(367)	(5,852)	(97)	(4,791)	(75)

* NPAT(A) adjusted is calculated as the net profit after tax adjusted for impairment (FY24: $28.9m; FY23: $nil), the after-tax impact of amortisation associated with acquired intangible assets (FY24: $1.3m; FY23: $1.9m) and interest and depreciation costs for leased premises undergoing fit out prior to any revenue generation (FY24: $1.2m; FY23: $0.5m)

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Non-IFRS information

▪ The Company uses certain measures to manage and report on its business that are not recognised under cc g (‘ ’). T measures are collectively referred to as non-IFRS financial measures. Although the Company believes that these measures provide useful information about the financial performance of the Company, they should be considered as supplemental to the measures calculated in accordance with AAS and not as a replacement for them. Because these non-IFRS financial measures are not based on AAS, they do not have standard definitions, and the way the Company calculates these measures may differ from similarly titled measures used by other companies.

The non-IFRS measures used by the Company include E ITD j p f f x (‘N T( )’).
EBITDA is earnings before interest, tax, depreciation and interest. NPAT(A) adjusted is calculated as the net profit after tax adjusted for impairment of intangible assets, the after-tax impact of amortisation associated with acquired intangible assets and interest and depreciation costs for leased premises undergoing fit out prior to any revenue generation.

($000’s)	FY24	FY23
NPAT(A) adjusted	161	6,013
Less:
Impairment of intangible assets	(28,925)	-
Amortization of acquired intangible assets (tax effected)	(1,273)	(1,857)
Pre-revenue generation lease costs	(1,194)	(548)
Net profit / (loss) after tax	(31,231)	3,608
Less income tax benefit	(1,319)	(692)
Net profit / (loss) before tax	(32,550)	2,916
Add back:
Impairment of intangible assets	28,925	-
Depreciation and amortization	15,052	11,986
Net finance expenses	3,533	1,772
EBITDA	14,960	16,674

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Half year income statements

	Half year	actuals	Change		Half year	actuals	Change
($000’s)	H1 FY24	H2 FY24	$	%	H1 FY23	H2 FY23	$	%
Revenue	59,201	52,166	(7,035)	(12)	43,574	58,646	15,072	35
Agent commissions	(11,262)	(10,782)	480	4	(7,451)	(12,076)	(4,625)	(62)
Education expenses	(17,570)	(14,474)	3,096	18	(10,618)	(15,207)	(4,589)	(43)
Gross profit	30,369	26,910	(3,459)	(11)	25,505	31,363	5,858	23
Gross profit % to revenue	51%	52%			59%	53%
Other income	37	0	(37)	0	37	0	(37)	0
Employee costs	(14,024)	(12,696)	1,328	9	(11,628)	(12,945)	(1,317)	(11)
Receivables impairment	(771)	(495)	276	36	(902)	(958)	(56)	(6)
Property costs	(2,720)	(2,180)	540	20	(1,909)	(2,605)	(696)	(36)
Marketing	(1,749)	(1,729)	20	1	(1,792)	(1,937)	(145)	(8)
Other expenses/income	(2,878)	(3,114)	(236)	(8)	(2,663)	(2,892)	(229)	(9)
EBITDA excl impairment and M&A	8,264	6,696	(1,568)	(19)	6,648	10,026	3,378	51
Impairment of intangible assets	0	(28,925)			0	0
EBITDA incl impairment	8,264	(22,229)	(30,493)	(369)	6,648	10,026	3,378	51
Depreciation and amortization	(7,221)	(7,831)	(610)	(8)	(5,631)	(6,355)	(724)	(13)
- Lease related	(4,334)	(4,634)	(301)	(7)	(3,169)	(3,755)	(586)	(18)
- Other expenses	(2,887)	(3,197)	(309)	(11)	(2,462)	(2,600)	(139)	(6)
EBIT	1,043	(30,060)	(31,103)	(2,982)	1,017	3,671	2,654	261
Net finance expense	(1,643)	(1,890)	(246)	(15)	(915)	(857)	58	6
- Lease related	(2,176)	(2,207)	(31)	(1)	(1,140)	(1,460)	(320)	(28)
- Other expenses/income	533	317	(215)	(40)	225	603	378	168
Profit before tax	(600)	(31,950)	(31,350)	(5,224)	102	2,814	2,712	2,661
Income tax benefit	386	933	547	142	364	328	(36)	(10)
NPAT	(214)	(31,017)	(30,803)	(14,384)	466	3,142	2,676	574
Impairment of intangible assets	0	28,925			0	0
Amortization of acquired intangibles	911	362	(549)	(60)	946	911	(35)	(4)
Pre-revenue generation lease costs	664	530	(135)	(20)	139	409	270	195
NPAT(A) adjusted*	1,361	(1,200)	(2,562)	(188)	1,551	4,462	2,911	188

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Segment Results

Go Study – returns to profitability

Revenue increased 14% vs pcp - growth in onshore Australia, France and Mexico
FY24 EBITDA increased by $0.8m vs pcp - student number growth including from the prior year reopening overseas offices post-pandemic gaining momentum

▪ Go Study is a valuable source of students for the International Vocational segment – representing approximately $4.5m of FY24 tuition revenues for the International Vocational segment with no external agent commission costs – high profit students

Revenue

EBITDA

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$7,000
$6,000
$5,000
$3,019
$4,000
$2,671
$3,000
$2,000
$2,846
$2,462
$1,000
$-
FY23 FY24
H1 H2
Revenue by source country
11% 12%
7% 7% Spain
11% 10% Italy
57% 60%
14% 11%
FY23 FY24
$000's
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$700
$600
$500 $216
$400
$300
$200 $384
$100
$26
$-
FY23 FY24
-$100
-$177
-$200
-$300
H1 H2
$000's
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Revenue by course type

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6% 7%
Australia English language
34%
Spain 38% Higher Ed
Italy
Vocational
47% 45%
France
Other
Other 9% 14%
FY23 FY24
27
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Segment Results

International Vocational – English language impacted by Revenue EBITDA Revenue mix visa policy

Revenue and EBITDA growth against pcp driven by resilient English language and VET performance in highly competitive market
EBITDA growth driven by revenue growth and active management of variable overheads
Targeting broad nationality mix of source countries – but notably zero Subcontinent students into English language courses
Growth in Hospitality and Healthcare student numbers expected in FY25

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100,000 25,000
90,000 1%
80,000 20,000 6% 7%
70,000 19% 14%
$39,688 $9,538
60,000 15,000
50,000 $46,830 $12,859
40,000 10,000 75% 78%
30,000
20,000 $46,161 5,000 $11,107
$27,890 $6,531
10,000
- - FY23 FY24
FY23 FY24 FY23 FY24
H1 H2 H1 H2 English language Management
Hospitality Healthcare
$000's $000's
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FY24 international student nationality mix
Africa & Subcontinent
2% 0% 5% 5% 0%
Brazil
7% 7% 6%
12% 14% 19% Japan
11% 1% 14%
8% 1% 27% 3% 19% 4% Korea
10%
4% 38% 10% 7% 5% Latin America Excl Brazil
28% Rest of the world
8%
50% Southeast Asia
28% 39%
7%
Western Europe
English Language Management Hospitality Health & Care
28
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Segment Results

Domestic Vocational – gaining positive momentum

Revenue and EBITDA growth in H2 FY24 against the previous half year – with positive momentum continuing into FY25
Positive operational efficiencies and student progressions being achieved since restructure undertaken in H1 FY24
Ceased delivery of unprofitable construction courses in H1 FY24
Not impacted by proposed changes to immigration policy

Revenue

EBITDA

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2,500
2,000
408
4,809 1,500
1,219
1,000
1,523
3,838 500
663
-
FY24 FY23 FY24
H1 H2 H1 H2
Revenue by course type
17%
22%
Healthcare
10%
Construction
73% Correctional / Sports / Other
78%
FY23 FY24
$000's
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10,000
9,000
8,000
7,000
6,000 3,487 4,809
5,000
4,000
3,000
4,731
2,000 3,838
1,000
-
FY23 FY24
H1 H2
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Segment Results

Technology & Design – international student decline

▪ FY24 revenue and EBITDA impacted by lower international student numbers as some students dropped out of their course to move to lower priced vocational courses delivered by other colleges (visa hopping now banned by legislation passed in late 2023) and higher visa rejection rates due to government immigration policy

Segment EBITDA is impacted by relatively high campus costs – including specialist facilities to support course delivery
International student revenues are expected to decline in FY25 due to flow-on impacts of recent government visa policy

Revenue

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18,000
16,000
14,000
12,000 6,386
10,000 5,338
8,000
6,000
9,060
4,000
7,016
2,000
-
FY23 FY24
H1 H2
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Revenue by student market
30%
37%
63%
70%
FY23 FY24
Domestic International
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EBITDA

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4,000
$884
3,000
2,000
$2,872
1,000
$1,409
- -$33
FY23 FY24
-1,000
H1 H2
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Revenue by brand

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4% 5%
34% 33%
62% 63%
FY23 FY24
AIT Coder Academy ISCD
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NextEd campus footprint by location

Campus December 2023 June 2024 Change + / (-) Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total	Campus December 2023 June 2024 Change + / (-) Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total	Campus December 2023 June 2024 Change + / (-) Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total	Campus December 2023 June 2024 Change + / (-) Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total Leased premises Licensed classrooms Total

Sydney(1)	92 - 92	74 - 74	(18) - (18)
Melbourne	87 - 87	87 - 87	- - -
Brisbane	24 10 34	38 - 38	14 (10) 4
Gold Coast(2)	10 2 12	21 - 21	11 (2) 9
Perth	8 - 8	8 - 8	- - -
Adelaide	11 - 11	11 - 11	- - -
Total	232 12 244	239 - 239	7 (12) (5)

(1) Thomas St campus exited in May 2024
(2) New Gold Coast campus launched in Q4 FY24

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Average student numbers by segment

International Vocational

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9,000
8,000 108
566 634
7,000
6,000 1,973
2,756
5,000
4,000
3,000
4,980
2,000 4,200
1,000
0
FY23 FY24
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9,000
8,000 441
108
7,000 2,005
828
6,000
5,000 1,941
4,000
3,000 5,848
2,000 4,113
1,000
0
H1 FY24 H2 FY24
English language Management
Hospitality Healthcare
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Technology & Design

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900
800
90
700
69
600 192
139
500
400
300
489 454
200
100
0
FY23 FY24
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800
700
62
600 75
142
500 135
400
300
475
437
200
100
0
H1 FY24 H2 FY24
AIT Coder Academy ISCD
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Domestic Vocational

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500
450
400
350
300
250
452
429
200
150
100
50
0
FY23 FY24
600
500
400
300
509
200 395
100
0
H1 FY24 H2 FY24
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Important notice & disclaimer

Summary Information

This Presentation contains summary information about NextEd Group Limited and its activities which is current only as at the date of this Presentation (unless specified otherwise). The material in this Presentation is general background information and does not purport to be complete. It does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. No representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, NextEd Group Limited, its subsidiaries and their respective directors, officers, employees, agents and advisers disclaim all liability and responsibility for any direct or indirect loss, costs or damage which may be suffered by any recipient through use of or reliance on anything contained in, implied by or omitted from this Presentation. Reliance should not be placed on information or opinions contained in this Presentation and, subject only to any legal obligation to do so, NextEd Group Limited does not have any obligation to correct or update the content of this Presentation.

Past Performance

The past performance and position of NextEd Group Limited reflected in this Presentation is given for illustrative purposes only. Past performance of NextEd Group Limited cannot be relied upon as an indicator of (and provides no guidance as to) the future performance or condition of NextEd Group Limited, including future share price p f m c .

No Offer of Securities

Nothing in this Presentation should be construed as either an offer or a solicitation of an offer to buy or sell NextEd Group Limited securities. Information in this Presentation is not intended to be relied upon as advice to investors or potential investors and does not take into account the financial situation, investment objectives or needs of any particular investor. Before making any investment or other decision, investors should consider these f c , c w w g , x, / f c v .

Forward-Looking Statements

Financial Information

Certain financial measures included in this Presentation, including Underlying EBITDA, Underlying EBIT, U g N T, N T( ) j ‘ -IFR f c f m ’ I R g 230: ‘D c g -IFR f c f m ’ p I ‘ - f c m ’ w meaning of Regulation G under the U.S. Securities Act and are not recognised under AAS and International Financial Reporting Standards (IFRS). Such non-IFRS financial information/non-GAAP financial measures do not have a standardised meaning prescribed by AAS or IFRS. Therefore, the non-IFRS financial information may not be comparable to similarly titled measures presented by other entities and should not be construed as an alternative to other financial measures determined in accordance with AAS or IFRS. Although NextEd Group Limited believes these non-IFRS financial measures provide useful information to investors in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-IFRS financial information/non-GAAP financial measures included in this Presentation. Certain figures, amounts, percentages, estimates, calculations of value and fractions provided in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation. All financial information in this Presentation is in Australian dollars ($ or A$) unless otherwise stated.

Forward-Looking Information

This Presentation and any related materials and cross-referenced information contain forward looking statements, w c m f f m g c g ‘m ’, ‘w ’, ‘w ’, ‘c ’, ‘ ’, ‘ xp c ’, ‘ v ’, ‘ g ’, ‘ k ’, ‘p ’, ‘ ’, ‘ m ’, ‘ m ’, ‘c ’, ‘ j c v ’, ‘ k’ m expressions. Indicators of and guidance on future earnings and financial position are also forward-looking statements. These forward-looking statements are not guarantees or predictions of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of NextEd Group Limited (especially during the global COVID-19 pandemic), and which may cause actual results to differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on forward looking statements.

This announcement may include forward-looking statements that relate to anticipated future events, financial performance, plans, strategies or business developments. Forward-looking statements can generally be identified f w c “m ”, “w ”, “ xp c ”, “ ”, “p ”, “ m ”, “ c p ”, “ k”, “f c ” ”g c ”, m w . T m c , w m , m g g p , strategies and objectives and anticipated business developments. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements are based on the mp ’ g -faith assumptions as to the financial, market, regulatory and other considerations that exist and ff c mp ’ p f c c f assumptions will prove to be correct. There may be other factors that could cause actual results or events not to c p , m v c f mp . T mp ’ c results, performance or achievements may be materially different from those which may be expressed or implied by such statements, and the differences may be adverse. Accordingly, you should not place undue reliance on these forward-looking statements. Any forward-looking statements in this announcement are only made as at the date of this announcement and, to the maximum extent permitted by law, NextEd Group disclaims any obligation or undertaking to update or revise any forward-looking statements or to advise of any change in assumptions on which any such statement is based.

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AI assistant

NEXTED GROUP LIMITED — Earnings Release 2024

65463_rns_2024-08-28_eb92a90c-9daa-426f-8fd8-1ca8f9ab5097.pdf

ASX RELEASE

29 AUGUST 2024