NEXTED GROUP LIMITED — Interim / Quarterly Report 2021

Feb 10, 2021

FY2021 HALF YEAR RESULTS PRESENTATION

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(ASX:ICT)

This presentation has been prepared by iCollege Limited ACN 105 012 066 (the company). This presentation contains information about iCollege Limited and its subsidiaries and is current as at 11th of February, 2021.

activities of the company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities. This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating the company. The company and its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation and they do not accept any liability for any statement made in, or omitted from, this presentation.

Prospective investors should make their own independent evaluation of an investment in the company. Nothing in this presentation should be construed as a financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. The company has not considered any of your objectives, financial situation or needs.

This presentation and contents has been made available by way of an update and may not be reproduced or disclosed to third parties or made public in any way without the express written permission of the company.

1

iCollege Limited is a leading vocational training provider that comprises six businesses which deliver accredited and non-accredited vocational education and training solutions.

iCollege currently has:

• four registered training organisations (RTOs) based in Australia:

• 1: Capital Training Institute

• 2: Sero Institute

• 3: Celtic Training

• 4: iCollege International

• an India-based specialist IT Training business focussed on the delivery of intensive Boot Camp style training in coding: The Hacking School * an English language testing business partnered with Cambridge Assessment English: TestEd English

iCollege currently operates 8 training campuses across 5 states and territories in Australia.

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2

*legal transfer pending

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Domestic and international	Domestic	Domestic	Domestic and international	Domestic and international
Hospitality, business,
foundation skills,	Healthcare and	Building and	English language	Information
community services,	community services	construction	testing	technology
English language, IT
Brisbane, Gold Coast and Perth	Adelaide and Gold Coast	Sydney, Brisbane, Gold Coast, Canberra, Adelaide	Online	Online
28	28	10	n/a	4

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*legal transfer pending

Adelaide, South Australia x 1 campus

Brisbane, Queensland x 2 campuses

Canberra, Australian Capital Territory x 1 campus Gold Coast, Queensland x 1 campus

Perth, Western Australia x 2 campuses

Celtic Training holds funding contracts in Queensland and South Australia

Sero Institute holds funding contracts in Queensland and Western Australia

Capital Training Institute holds funding contracts in Queensland, New South Wales and Australian Capital Territory

Sydney, New South Wales x 1 campus

iCollege is the only ASX listed company to have subsidised training funding contracts across 5 states and territories

Pre COVID-19 revenue equally split between international and domestic students

4 campuses accredited to facilitate training for international students

from China representing less than 3% of our student base

With border closures currently in place, ICT had the capability to swiftly pivot to a greater focus on domestic student enrollments

agents – both in Australia and overseas

Sero Institute operates a corrections division delivering training inside 5 of the 11 Correctional facilities in Queensland

The Hacking School addresses the skills shortage in IT professionals by delivering up to the minute training through boot camp style intensive training

Sero Institute is one of the few RTOs that is accredited to deliver the Diploma and Advanced Diploma of Applied Blockchain to students in Australia

iCollege has a preferred partnership agreement with

Cambridge Assessment English (CAE) to market and distribute the Linguaskill English test in Australia

74

Financial Highlights

Record revenue of $8.8m Up 26% on PCP and representing 77% of total FY 2020 revenue

Record operating EBITDA of

$2.07m[*] Up 198% on PCP

oversubscribed $5.5m share placement completed in Novemeber, 2020

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10000000
$8.8m
8000000
$7m
6000000
4000000
$2m
2000000
$673k
0
H1 2020 H1 2021
REVENUE EBITDA
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*Post adoption of AASB 16 leases standard

5

Revenue Breakdown

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By Course Type
Hospitality
Other
42%
23%
Healthcare and
Construction
Community Services
11%
24%
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• Strong enrolment growth continuing in healthcare and community services sector

• Continued steady enrolments across hospitality and building and construction sectors

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By Location
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Other
7%
SA
18%
QLD
49%
WA
26%
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• Strong enrolment growth continuing in WA and SA markets

• The company is actively investigating new training opportunities in VIC and NSW

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Rest of Asia India
20% 21%
Other
3%
Europe Brazil
5% 17%
Columbia
Taiwan
4%
7%
South
Korea
Thailand
12%
11%
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Latin America
22%
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Extensive and experienced, global student recruitment network of over 150 agents

Extensive and experienced, global student recruitment

Less than 3% of current student cohort from China

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Operational Highlights

Record student growth

• Strong enrolment growth across healthcare, community services, hospitality and building and construction courses

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Senator the Hon Michaelia Cash- Minister for Employment, Skills, Small and Family
Business attending iCollege’s new Perth healthcare and community services
campus for the launch of the first infection control training class
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Seamless switching between online and face-to-face delivery models in order to effectively deal with restrictions while ensuring maintenance of quality training and student progression

Enrolments commenced in newly announced $1bn Job Trainer program

New Perth healthcare and community services campus open in August 2020

Development of Infection control training skill set with

• Commitment received from Aegis Aged Care Group to train 3,300 staff in infection control skill set

infection control skill. This customised training has been made available to all 5,800 member pharmacies

Engagement with Government

• various areas including:

• International student return to Australia

Infection control training

• Education industry support and stimulus

• JobTrainer program and other training initiatives

Proven organic growth initiatives

Expansion of course offerings to both domestic and international cohorts

Ongoing training focus in skill shortage, high demand industries

Expansion of geographical footprint and establishment of additional state funded training contracts

Vocational Training Industry engagement and thought leadership

Continued government engagement in order to contribute to positive change and provide input into significant industry issues

Synergistic and complementary expansion program

Innovative expansion of online delivery capabilities

Exploration of accretive acquisition targets that align with company values and goals

Preparation for international student growth

Ongoing engagement and expansion of international student-agent network

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Growth Drivers

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Current Locations:

Queensland and Western Australia

VET-related Occupations[*]

Occupations as a proportion of the Food and Beverage services industry workforce, and the projected employment growth for each occupation to 2024

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Waiters
Kitchen Hands
Bar attendants and Baristas
Chefs
Cafe and Restaurant Managers
Fast Food Cooks
Cafe Workers
0 2 4 6 8 10 12 14 16 18 20
%
Proportion of the total workforce Employment projections to 2024 (%)
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Training provider type

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Certificate I & II in Hospitality
Certificate III & IV in Hospitality
Hospitality ( Diploma & Advanced
Diploma)
Hospitality Management ( Diploma
& Advanced Diploma)
Total qualifications
0 20 40 60 80 100
%
TAFE University
School Community education provider
Enterprise provider Private training provider
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Student Cohorts:

Domestic and International (CRICOS) Certificate II to Advanced Diploma

• The hospitality industry in Australia delivers strong employment outcomes with ongoing growth projected through to 2024

• 60% of all hospitality training is delivered by private providers positioning Sero Institute for

Outcomes:

Immediate employment opportunities and further work visa rights for international students

• continued organic growth

• The Sero Institute brand is well regarded in terms of delivering quality training and employment-ready graduates

• placement rate of 100% with industry including 5 star hotel chains

• https://nationalindustryinsights.aisc.net.au/industries/tourism-travel-and-hospitality/hospitality

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VET-related Occupations[*]

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Current Locations:

Queensland, South Australia and Western Australia

Student Cohorts:

Domestic only – Skill Sets, Certificate III to Diploma

Outcomes:

Occupations as a proportion of the health care and Social Assistance industry workforce and the projected employment growth for each occupation to 2024

Aged and disability support worker

Ranked #3 as the most needed workers in Australia in 2020[**]

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Aged and Disabled Carers
Receptionists
Welfare Support Workers
Practice Managers
0 5 10 15 20 25 30
%
Proportion of the total workforce Employment projections to 2024 (%)
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It is projected that there will be 245,100 workers in the aged care industry by 2023[***]

projected through to 2024

Strong industry partnerships in place to ensure students undertake practical training with reputable aged care providers

Immediate employment opportunities

Expansion of course offerings to include skill sets and short courses designed to increase the knowledge and employability of graduates

• https://nationalindustryinsights.aisc.net.au/industries/health | ** www.seek.com

• *** https://www.joboutlook.gov.au/occupations/aged-and-disabled-carers?occupationCode=4231

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VET-related Occupations[*]

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Current Locations:

Queensland, New South Wales and The Australian Capital Territory

Student Cohorts:

Domestic only –

Outcomes:

Immediate employment opportunities

358,000 Building and Construction businesses in Australia.

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Occupations as a proportion of the Building Structure Services industry workforce,
and the projected employment growth for each occupation to 2024
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Construction Managers
0 5 10
%
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new jobs 118,800 are projected to be added to the industry by May 2023[**]

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Proportion of the total workforce Employment projections to 2024 (%)
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• Building and construction industry growth driven by major infrastructure projects and stimulus initiatives

Employment opportunities are projected to increase exponentially until 2024

• Capital Training Institute is a strong and established brand delivering quality industry relevant short courses as well as Certificate IV through to Advanced Diploma courses in building and construction

• https://nationalindustryinsights.aisc.net.au/industries/construction

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Sero Institute Corrections

• Through its corrections group, Sero Institute delivers foundation skills, business and hospitality training inside 5 of Queensland’s 11 Correctional facilities

• The training assists in the preparation for release of inmates by providing basic job ready skills and nationally accredited qualifications

• Research has proved that the provision of training to incarcerated persons reduces recidivism rates

Infection Control Training Skill Set was released jointly by the Federal and State Governments during the height of the COVID-19 pandemic in 2020. iCollege has begun the rollout of this training providing participants with the tools and knowledge required to undertake their duties in a safe manner.

Current Locations:

Queensland, Western Australia, South Australia New South Wales, Australian Capital Territory

The Pharmacy Guild of Australia

• Partnership with the Guild to make infection control training available to their 5,800 community pharmacy members

Student Cohorts:

Domestic only – Foundation Skills within Correctional Facilities & Infection Control Skill Set

• Renewed interest in infection control with many states grappling with further COVID-19 outbreaks

• With pharmacies providing essential services infection control remains at the forefront of delivering services in the safest possible manner

Aegis Aged Care:

Outcomes:

Employment opportunities, ensuring safe workplace practices and compliance with statutory requirements

• Sero institute was chosen as the training partner to deliver Infection Control training to all 3,300 staff across 27 quality care facilities

• Both Sero and Aegis have an ongoing commitment to ensuring staff fully understand the risks associated with infection while providing care for one of the most at risk sectors of the population

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JobTrainer
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The Australian Government is partnering with state and territory governments to establish a new $1 billion Job Trainer Fund.

Additional 340,700 training places Free or low fee courses

Targeted at school leavers and job seekers Designed to develop a “job ready” workforce Administered through state funding contracts ICT currently holds funding contracts in 5 of the 8 states and territories

International education is currently[4][th] Australia’s fourth largest export at $39.6 Billion

International Education Value By State

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NT
$126m
QLD
WA $5.3bn
$1.99bn
SA
$1.9bn
NSW
$13.9bn
VIC
$12.5bn
TAS
$618m
ACT
$1.04bn
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International education supports more than 250,000 jobs across the Australian economy

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664,219

International students currently studying in Australia**

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3% 6%
Schools Non-award
44% 46%
Higher ELICOS
Education & VET
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internationaleducation.gov.au**

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Global international student enrolments

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6.0
5.0 GFC
SARS
4.0
9/11
3.0
2.0
1.0
0.0
1998 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Student Enrolment (millions)
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Historically, the International student education sector has proven to be incredibly robust, rebounding extremely well post significant occurrences including 9/11, SARS and the Global Financial Crises (GFC)

Australia is currently ranked as the third most popular education destination for international students behind the USA and UK. Given Australia’s success in containing the pandemic and the relative safety, it is reasonable to expect an increase in international students preferring Australia as their education destination of choice over other countries

on the international education sector. This is expected to be a driver for a planned and safe relaxation of Australia’s borders

Source : UNESCO Institute for statistics

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Future Outlook
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Continued delivery of strong revenues and record EBITDA FY2021 Increase in operating margin as fixed costs remain relatively stable Ongoing growth of new enrolments in HIGH DEMAND SKILL SHORTAGE industries

Expansion of geographical footprint into new and lucrative training markets – current focus on Victoria and New South Wales Delivery and execution of accretive acquisition strategy aligned to growth drivers

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Appendices

Simon Tolhurst

Chairman

• Bachelor of Laws • Master of Laws (Hons)

• Grad Dip Legal Practice

• Solicitor of Supreme Court, Queensland

Ashish Katta

Managing Director

• Bachelor of Technology

• MBA (International Management)

Badri Gosavi

Executive Director & CFO

• Bachelor of Business Accounting & Finance (Hons)

• Solicitor High Court of Australia

Simon is a Partner in HWL Ebsworth’s Brisbane office and has over 25 years of legal practice

Named in The Australian Financial Review’s Best Lawyers[TM] as one of Australia’s best lawyers in the Litigation category

Recognised in Doyle’s Guide as a Leading Commercial Litigation & Dispute Resolution Lawyer

Member of the HWL Ebsworth National

Competition Law and Anti-Trust Group that was recently recognised as a leading firm by both Chambers and Legal 500

Ashish began his career in the education

industry in 2011, growing his experience across

various roles including trainer, training manager,

operations manager and general manager

In 2015, Ashish founded Sero Institute which was acquired by iCollege in 2018 as part of the Manthano acquisition

Ashish brings to iCollege a vast network and extraordinary level of experience in the vocational education sector

Finance specialist & entrepeneur

Accomplished restaurateur having successfully developed multiple restaurant and takeaway business concepts

Mining interests in Zambia in joint venture with MMG & Rio Tinto

Badri has dual qualifications in finance & accounting from Edith Cowan University in Perth

Badri came to Australia as an international student and has walked the pathway to sucess

Experience includes directorships on a number of private companies including those in the transport industry, oil & gas industry and coal industry

A cricket tragic and was a member of the successful Australian Lawyers cricket team that won the Lawyers World Cup cricket tournament in Sri Lanka in 2017

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iCollege Limited

Shareholder Breakdown

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14.7%
85.3%
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Others Board & Management

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Board and
85,980,094 14.7%
Management
Others 495,584,555 85.3%
Total 581,564,649 100%
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10,000,000 options exercisable at $0.05 expiring in July 2023 12,000,000 options exercisable at $0.15 expiring in November 2023

Options

Share price HY 2021 chart

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High : 0.15
0.14
0.10
0.06
0.02
Low : 0.03
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Jul
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Sep
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Dec 2021
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Nov
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Oct

Aug

21

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Thank You

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