NEXTED GROUP LIMITED — Interim / Quarterly Report 2023

Feb 26, 2023

==> picture [210 x 138] intentionally omitted <==

1H23 Results Presentation

27 February 2023

==> picture [383 x 540] intentionally omitted <==

Contents

==> picture [127 x 97] intentionally omitted <==

----- Start of picture text -----

1. 1H23 results
2. Outlook
3. Appendix
----- End of picture text -----

3 12 23

==> picture [54 x 36] intentionally omitted <==

2

1H23 results

An exceptional 1H23 performance​

Revenue & EBITDA Operating segments Exceptional operating cash flows​ Solid balance sheet positioned for growth 1

3

1H23 financial results

Lead indicators of future performance

Revenue

$43.6m $25.3m vs 1H22

• Record revenues and material profit growth​

International English language Vocational actively studying students new confirmed enrolments

EBITDA[1]

$6.6m $5.0m vs 1H22

Operating cash flows[2]

$14.5m $12.8m vs 1H22

Cash at bank[3]

$38.6m $8.4m vs JUNE 22

Net profit after tax

▪ Revenue of $43.6m was midpoint of AGM guidance range of $43.0m - $44.0m

▪ EBITDA of $6.6m higher than AGM guidance range of $5.5m - $6.5m

351% 1,396% 1H23 vs 1H22 Dec 22 vs Dec 21

Go Study Deferred revenue new international students balance recruited

478% Dec 2022 quarter vs Dec 2021 quarter

131%

Dec 2022 vs June 2022

$0.5m $4.8m vs 1H22

1. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the statutory profit under AAS adjusted for specific non-cash and significant items. Excludes M&A costs in prior corresponding period (1H22: $3.2m, 1H23: nil). 2. Excludes M&A costs in prior corresponding period (1H22: $4.4m, 1H23: nil).

2. Cash at bank includes term deposits securing bank guarantees of $3.1m (1H22: $3.1m).

==> picture [54 x 36] intentionally omitted <==

4

Revenue & EBITDA

Revenue by operating segment

==> picture [400 x 205] intentionally omitted <==

• Outstanding growth driven by continued outperformance in English language student numbers

EBITDA – excluding M&A costs*

==> picture [436 x 188] intentionally omitted <==

==> picture [36 x 50] intentionally omitted <==

----- Start of picture text -----

Increase
Decrease
Total
----- End of picture text -----

• Increased operational costs to support revenue growth

• Operating leverage resulted in EBITDA increasing to 15% of revenue in 1H23, up from 9% in 1H22

==> picture [54 x 36] intentionally omitted <==

5

• Nil M&A costs in 1H23 (1H22: $3.2m).

Segment Results

Go Study Australia – increasing demand

Pro-forma* EBITDA

Pro-forma* revenue

• 1H23 EBITDA impacted by investment in re-opening overseas offices and increasing employee numbers to service growing demand from prospective international students – investing in future growth

==> picture [271 x 180] intentionally omitted <==

----- Start of picture text -----

3,000
2,500
2,000
1,500 $947
$2,462
1,000
500 $1,036
0
1H22 1H23
Pre-acquisition Actual
$000's
----- End of picture text -----

==> picture [215 x 172] intentionally omitted <==

----- Start of picture text -----

250
200
150
100 $186
50
0
-50 ($15)
-100 ($177)
-150
-200
1H22 1H23
Pre-acquisition Actual
$000's
----- End of picture text -----

• Positive EBITDA expected in 2H23 and FY24 as student numbers continue to grow and students in Australia choose to extend their studies

• Australia revenue is generated from students recruited onshore and from students originally recruited overseas who extend their studies after completing their initial course. Australia revenue declined by 20% in 1H23 against pcp, but is expected to recover strongly in FY24 when students choose to extend their studies

Revenue by source country

Revenue by course

==> picture [534 x 116] intentionally omitted <==

----- Start of picture text -----

[3%] 1%
3% [3%]
8% Australia 7% 7% 10%
8% 11% English language
Spain 34%
12% Italy Higher Ed
58% France 46% Vocational
14%
90% Other 74% 10% Other
1H22 1H23 1H22 1H23
----- End of picture text -----**

• Students recruited by Go Study Australia into NextEd courses generated approximately $2.0m of tuition revenue in 1H23 which was recognized in other operating segments – high value students

==> picture [54 x 36] intentionally omitted <==

6

• Pro-forma – Includes 1H22 actual post acquisition results from Oct 2021 to June 2022 and pre-acquisition management results from July 2021 to Sept 2021. ** Other is made up of Colombia and Chile.

Segment Results

International Vocational – rapid growth

• Exceptional growth in English language revenue

• Rapid growth in EBITDA driven by revenue growth and operating leverage from higher campus utilization

• Strong revenue and EBITDA growth is expected in 2H23 and FY24

• Vocational student numbers and revenue (all courses other than English language) declined slightly in 1H23 due to most actively studying English language students not yet being ready to progress into their next course

• Successfully maintained a broad student nationality mix

Pro-forma* EBITDA

Pro-forma* revenue mix

Pro-forma* revenue

==> picture [672 x 155] intentionally omitted <==

----- Start of picture text -----

30,000 7,000
25,000 6,000
15%
20,000 5,000 26%
4,000
15,000 $27,890 3,000 $6,531 21% 9%
10,000 $5,548 64% 65%
2,000
5,000 $7,842 1,000 $1,475
0 0 $509
1H22 1H23 1H22 1H23 1H22 1H23
Actual Pre-acquisition Actual Pre-acquisition English Hospitality Management
language
$000's
$000's
----- End of picture text -----

1H23 international student nationality mix

==> picture [333 x 117] intentionally omitted <==

----- Start of picture text -----

4%
6%
8%
5% 14% 6%
24% 14% 27%
42% 6%
16%
26% 6%
7% 34% 43%
12%
English language Management Hospitality
----- End of picture text -----

Africa & Subcontinent Latin America Excl. Brazil South East Asia Japan Western Europe Brazil Rest of the world

==> picture [54 x 36] intentionally omitted <==

7

• Pro-forma – Includes actual post acquisition results Oct 2021 to Dec 2021 and pre-acquisition management results from July 2021 to Sept 2021

Segment Results

Technology & Design – new courses launched

• International student revenue growth resulting from borders re-opening and students commencing or resuming their studies

• EBITDA improvement driven by revenue growth and operating leverage from higher campus utilization

• Future revenue and EBITDA growth expected from recent launch of 4 new bachelor degrees

• Further positive operating leverage impacts expected in 2H23 and FY24 as Coder Academy continues with a blended online and face-to-face delivery model

Pro-forma* EBITDA

Pro-forma* revenue

==> picture [224 x 161] intentionally omitted <==

----- Start of picture text -----

3,000
2,000
$2,872
$621
1,000
$931
0
1H22 1H23
Actual Pre-acquisition
$000’s
----- End of picture text -----

==> picture [224 x 159] intentionally omitted <==

----- Start of picture text -----

10,000
8,000
6,000
$3,591
$9,060
4,000
2,000 $3,706
0
1H22 1H23
Actual Pre-acquisition
$000’s
----- End of picture text -----

Revenue by brand

Revenue by student market

==> picture [447 x 140] intentionally omitted <==

----- Start of picture text -----

3%
7%
19%
39% 32%
37%
61% 56% 65%
81%
1H22 1H23 1H22 1H23
Domestic International AIT Coder Academy ISCD
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

8

• Pro-forma – Includes actual post acquisition results Oct 2021 to Dec 2021 and pre-acquisition management results from July 2021 to Sept 2021.

Segment Results

Domestic Vocational – positioning for growth

• Revenue declined due to ceasing delivery of unprofitable courses and programs

• EBITDA improved from increased focus on cost management and ceasing delivery of unprofitable courses

• Healthcare revenues grew by 7% - strong demand for graduates

• Challenges with building & construction courses as students choose work over study

Revenue

==> picture [235 x 168] intentionally omitted <==

----- Start of picture text -----

7,000
6,000
5,000
4,000
3,000 $5,809
$4,731
2,000
1,000
0
1H22 1H23
$000’s
----- End of picture text -----

EBITDA

==> picture [234 x 167] intentionally omitted <==

----- Start of picture text -----

1,600
1,400
1,200
1,000
800 $1,523
600 $1,185
400
200
0
1H22 1H23
$000's
----- End of picture text -----

• Confident that demand for hospitality and healthcare courses will remain strong and that there will be future growth in these fields due to available government funding and industry demand for quality graduates

• New senior functional management currently being recruited to harness emerging funding and growth opportunities

Revenue by sector

==> picture [308 x 115] intentionally omitted <==

----- Start of picture text -----

14%
Healthcare
26%
8%
Construction
10%
64%
78%
Correctional facilities
/ Sports / Other
1H22 1H23
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

9

Exceptional operating cash flows

Operating cash flows

==> picture [343 x 173] intentionally omitted <==

----- Start of picture text -----

16,000
14,000
12,000
10,000
8,000
$14,478
6,000
4,000
$1,652
2,000
0
1H22 (1) 1H23
$000’s
----- End of picture text -----

• Continued rapid recovery of international student numbers driving strong increases in operating cashflows ​

Total cash flows

==> picture [380 x 221] intentionally omitted <==

• Strong positive operating cashflows are expected to continue to be generated in 2H23 and FY24

==> picture [54 x 36] intentionally omitted <==

10

1. Excludes M&A costs (1H22: $4.4m, 1H23: nil).

Solid balance sheet positioned for growth

Cash balance

==> picture [253 x 174] intentionally omitted <==

----- Start of picture text -----

40,000
35,000
30,000
25,000
20,000
$35,511
15,000
$27,161
10,000 $19,415
5,000
0
Dec 2021 Jun 2022 Dec 2023
$000's
----- End of picture text -----

Contract liabilities

(Deferred revenues)

==> picture [269 x 165] intentionally omitted <==

----- Start of picture text -----

45,000
40,000
35,000
30,000
25,000
20,000 $40,290
15,000 $30,652
10,000
$14,245
5,000
0
1H22 FY22 1H23
$000's
----- End of picture text -----

Balance sheet summary

Balance sheet summary
$000’s	Jun 2022	Dec 2022
Cash	27,161	35,511
Other assets	107,529	115,229
Total assets	134,690	150,740
Borrowings	138	-
Contract liabilities	30,652	40,290
Other liabilities	42,332	48,338
Total liabilities	73,122	88,628
Equity	61,568	62,112

• NextEd has a solid cash balance, is debt free, and is well positioned to invest in new revenue and profit generating opportunities

• Revenue is recognised evenly over the period courses are delivered, and most of the deferred revenue balance as at December 2022 is expected to be recognised within the next 4 to 6 months, and no longer than within the next 12 months

==> picture [54 x 36] intentionally omitted <==

11

Outlook

Go Study Australia pipeline fueling future growth Rapidly growing international student numbers Exceptional English language student numbers Expanding pipeline to progress from English language Secured future revenues – underpinning growth Higher campus utilisation improving earnings Accelerating investments to support growth Management strengthened with M&A resource NextEd is unleashing potential 2

12

Go Study Australia pipeline fueling future growth

Significant increase in student inquiries and new course sales from Go Study Australia offices in Europe and South America

New student leads per quarter

==> picture [377 x 211] intentionally omitted <==

----- Start of picture text -----

8,000
7,000
6,000
5,000
7%
4,000
3,000
2,000
1,000
0
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Student Numbers
----- End of picture text -----

• Number leads significantly higher than the prior corresponding periods and the quality of those leads is markedly improving

New student sales per quarter

==> picture [365 x 211] intentionally omitted <==

----- Start of picture text -----

600
500
400
300
200
100
0
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Student Numbers
----- End of picture text -----

• Strong growth in sales since re-opening overseas offices and increasing employee numbers

• Strong future revenue opportunities as students choose to extend their studies after completing initial courses

==> picture [54 x 36] intentionally omitted <==

13

Rapidly growing international student numbers

New international student offers of enrolment in each quarter

==> picture [370 x 206] intentionally omitted <==

----- Start of picture text -----

7,000
6,000
5,000
4,000 7%
3,000
2,000
1,000
0
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Student Numbers
----- End of picture text -----

New international student confirmed enrolments in each quarter

==> picture [398 x 206] intentionally omitted <==

----- Start of picture text -----

5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22
Student Numbers
----- End of picture text -----

▪ NextEd has quickly ramped up its marketing and admissions teams to capture growing international student demand

• Rapidly growing new student enrolments to underpin future revenue and EBITDA growth

==> picture [54 x 36] intentionally omitted <==

14

Exceptional English language student numbers

Active English language students at the end of each quarter

• NextEd's high quality brand reputation driving strong support from international recruitments agents across all key markets

• English language student numbers expected to increase further over the balance of FY23

• English language students are a great feeder into other NextEd vocational and higher education courses to deliver higher lifetime value

• The number of competitor colleges in English language segment has reduced by at least 20% and NextEd is winning market share

==> picture [516 x 299] intentionally omitted <==

----- Start of picture text -----

6,000
5,000
4,000
3,000
5,300
4,173
2,000
2,887
1,000 1,922
1,370
965 1,531
560 299 683
0
Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Feb-23
(projected)
Student Numbers
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

15

Expanding pipeline to progress from English language

• The number of international students undertaking vocational courses was relatively flat in 1H23, but strong growth is expected in 2H23 and FY24 as more students progress from English language studies

• Historically approximately 30% of NextEd English language students progressed into other vocational courses within the group – key management focus area

• Historically approximately 50% to 60% of international students undertaking NextEd vocational courses enrolled directly into those courses (undertaking English language studies elsewhere)

• NextEd has expanded its course range and delivery locations to offer vocational students – capturing larger market

Studying vocational students at end of month

==> picture [249 x 194] intentionally omitted <==

----- Start of picture text -----

6000
5000 vs Jul-22
-1.4%
4000
3000
2000
3,460
3,412
1000
0
Jul-22 Dec-22
Student Numbers
----- End of picture text -----

Pipeline of future growth in student numbers[1]

==> picture [295 x 319] intentionally omitted <==

----- Start of picture text -----

Historically 30% of
Expanded course Historically 50% to
English language
range & delivery 60% of vocational
students
locations students enrol
progressed into
directly
vocational courses
Future vocational
students
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

16

1. Refer to disclaimer regarding forward-looking statements.

Secured future revenues – underpinning growth

• Deferred revenue 'paid and due for payment' represents tuition fees which have been paid in advance or are due and payable for studies that have not yet been undertaken

• Deferred revenue 'not yet due for payment' represents where students have formally enrolled into courses and there is a contract in place, but the tuition fees associated with that period of study will be invoiced and become payable in a future period ​

Revenues are recognised evenly over the period that courses are delivered, and most of the deferred revenues balance at the end of December 2022 is expected to be recognised within the next 4 to 6 months, and no longer than within the next 12 months

Deferred revenue

==> picture [620 x 279] intentionally omitted <==

----- Start of picture text -----

70,000
60,000
$23,865
50,000
40,000 $21,132
30,000
$20,253
$17,983
$18,363
20,000 $40,290
$30,652
10,000 $16,352 $17,988
$14,245
0
Dec 19 Jun-21 Dec-21 Jun-22 Dec-22
(pre-COVID) (Proforma)
Paid & due for payment Not yet due for payment
$'000
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

17

Higher campus utilisation improving earnings

NextEd campus locations

==> picture [228 x 172] intentionally omitted <==

----- Start of picture text -----

airns
Brisbane
old oast
erth
Adelaide Sydney
elbourne
10 campuses
----- End of picture text -----

Number of classrooms by state at end of December 2022

==> picture [225 x 168] intentionally omitted <==

----- Start of picture text -----

22 NSW
8
59 VIC
8
QLD
23
SA
WA
Licensed rooms
73
Total number of classrooms 193
----- End of picture text -----

Campus daytime utilisation at end of December 2022 and announced expansion

==> picture [275 x 205] intentionally omitted <==

----- Start of picture text -----

100
90
80 16
70 18 7
60
2
50
40
66
30 57 12
20 6
10 17 2
8 6
0
NSW VIC QLD SA WA
Utilised Unutilised Expansion
----- End of picture text -----

• Quality campuses located in Australia’s largest addressable markets

• Actively managing available classrooms to support expected growth in student numbers

• Rapid increase in campus utilisation in 1H23

• Expanding campus facilities in 2H23 to meet expected increases in demand

==> picture [54 x 36] intentionally omitted <==

18

Accelerating investments to support growth

Expanding campus capacity and investing in course development and equipment to support future growth

Investments to support expected increase in student numbers and to expand the course range

1H23 actual capex - $1.4m

2H23 projected capex – circa $7.9m

==> picture [349 x 212] intentionally omitted <==

----- Start of picture text -----

900
800
700
600 Sydney
500
400
300
Vocational
200 Brisbane Equipment
upgrade
Higher
100
education
0
Campus Course IT & other
fit out development equipment
$000’s
----- End of picture text -----

==> picture [378 x 227] intentionally omitted <==

----- Start of picture text -----

7,000
6,000
Sydney
5,000
Gold Coast
4,000
Melbourne
3,000
2,000
1,000
Brisbane Vocational Equipment
0 Higher education upgrade
Campus Course IT & other
fit out development equipment
$000’s
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

19

Management strengthened with M&A resource

• Morgan Sloper appointed as Head of Strategy on 20 February 2023, bringing additional M&A experience to the executive team

• Morgan will focus on supporting and delivering organic and M&A growth opportunities

• Pipeline of M&A opportunities currently under evaluation and other direct approaches expected to be made in coming months

==> picture [111 x 157] intentionally omitted <==

Appealing acquisition targets are likely to feature:

• A substantial curriculum area not being taught by NextEd where there is strong industry engagement and job outcomes

• Opportunities for NextEd to apply its supply chain relationships, accreditations, funding models, campuses and operating capabilities to significantly grow an acquired business

• Assets such as technologies, skills and capabilities, campuses, or other facilities that upon acquisition may be applied across the broader NextEd group

• Bolt-ons that enhance the lifetime revenue and cost synergies of NextEd students or increase their engagement levels

==> picture [54 x 36] intentionally omitted <==

20

==> picture [288 x 540] intentionally omitted <==

NextEd is unleashing potential

• Rapid growth in international student numbers

• Dominant market position in delivering English language courses

• Funneling English language students into other NextEd vocational and higher education courses to maximise student lifetime value

• Strong balance sheet and operating cashflows to invest in growth​

• Geographic and course range expansion initiatives underway

• Delivering operating leverage from increased scale and higher campus utilization

• Increasing focus on M&A opportunities

• Revenue and profit expected to materially increase in 2H23​ and FY24

==> picture [54 x 36] intentionally omitted <==

21

==> picture [141 x 93] intentionally omitted <==

Thank You

Glenn Elith Chief Executive Officer glenn.elith@nexted.com.au

Michael Fahey Chief Financial Officer michael.fahey@nexted.com.au

Level 2, 7 Kelly Street Ultimo NSW 2007 nexted.com.au

==> picture [54 x 36] intentionally omitted <==

22

Appendix

3

23

Differentiated market position

Diversified earnings base

NextEd campus locations 10 NextEd campuses

• Diverse course offerings in English language, vocational and higher education segments

• International student recruitment agency

• Broad domestic and international student mix

National campus footprint with online course delivery

• Underutilised campus capacity provides operating leverage to immediately benefit from an uptick in enrolments as international students recommence their studies in Australia

• Established capabilities to deliver online courses to domestic and international students

Accreditations and funding via Commonwealth and State Governments

==> picture [178 x 115] intentionally omitted <==

----- Start of picture text -----

airns
Brisbane
old oast
erth
Adelaide Sydney
elbourne
----- End of picture text -----

• Underutilised campus capacity provides operating leverage to immediately benefit from an uptick in enrolments as international students recommence their studies in Australia

• Only ASX listed organisation to hold accreditations for funding and subsidised training contracts with the Commonwealth and five State and Territory governments

• Mix of funding accreditations provides greater tuition payment flexibility for prospective students

Extensive international student agency relationships and capabilities

• International students recruited from South America, parts of Asia and Europe and the Indian subcontinent through Go Study Australia division and international student agency relationships

• ▪ Go Study Australia and ELICOS offerings which are heavily reliant on international student recoveries are expected to benefit with early signs emerging of a rebound in Australia as a destination

Industry relevant curriculums

• Delivering courses in specialist in-demand industries where there is growing demand for graduates

• ▪ Actively engaging with industry partners to assist students achieve job outcomes

Go Study Australia locations

==> picture [240 x 117] intentionally omitted <==

==> picture [54 x 36] intentionally omitted <==

24

Financial highlights

Revenue

==> picture [275 x 177] intentionally omitted <==

----- Start of picture text -----

1H23 up 50,000
139% vs PCP
Growth driven by 40,000
exceptional
performance in
30,000
International VET
and T&D
divisions. Results $43,574
20,000
include a full
period of RedHill
results 10,000 $18,237
0
1H22 1H23
$000's
----- End of picture text -----

Cash balance***

==> picture [268 x 164] intentionally omitted <==

----- Start of picture text -----

1H23 up 40,000
$15.8m
35,000
vs PCP
30,000
Growth in
profitability and 25,000
operating cash 20,000
flow resulted in $38,563
higher cash 15,000
balance
10,000 $22,775
5,000
0
Dec 2021 Dec 2022
$000’s
----- End of picture text -----

EBITDA*

==> picture [185 x 168] intentionally omitted <==

----- Start of picture text -----

7,000
6,000
5,000
4,000
$6,648
3,000
2,000
1,000
$1,641
0
1H22 1H23
$000’s
----- End of picture text -----

1H23 up 305% vs PCP

Strong revenue contribution and operating leverage from high campus and fixed costs utilisation

Net profit after tax

==> picture [265 x 164] intentionally omitted <==

----- Start of picture text -----

1H23 up 1,000
$4.8m
$466
vs PCP 0
Strong growth in
(1,000)
revenue and
EBITDA delivered
(2,000)
profitable first half $(4,299)
result
(3,000)
(4,000)
(5,000)
1H22 1H23
$000's
----- End of picture text -----

Operating cash flows**

==> picture [195 x 168] intentionally omitted <==

----- Start of picture text -----

16,000
14,000
12,000
10,000
8,000
$14,478
6,000
4,000
2,000 $1,652
0
1H22 1H23
$000's
----- End of picture text -----

1H23 up 776% vs PCP

==> picture [66 x 70] intentionally omitted <==

----- Start of picture text -----

Exceptional
operating cash
flow growth from
positive EBITDA
and working
capital
management
----- End of picture text -----

• Nil M&A costs in 1H23 (1H22 $3.2m).

• ** Nil M&A costs in 1H23 (1H22 $4.4m).

==> picture [54 x 36] intentionally omitted <==

*** includes term deposits securing bank guarantees of $3.1m (Dec-21 $3.1m).

25

Reported profit & loss

	Half year actuals ($000’s)			Change
	1H23	1H22	$000’s		%
Revenue	43,574	18,237	25,337		139
Cost of sales	(18,069)	(7,523)	(10,546)		(140)
Gross profit	25,505	10,714	14,791		138
Gross profit % to revenue	59%	59%
Other income	37	1,475	(1,438)		(97)
Employee costs	(11,628)	(6,144)	(5,484)		(89)
Receivables impairment	(902)	(343)	(559)		(163)
Property costs	(1,909)	(858)	(1,051)		(122)
Marketing	(1,792)	(1,123)	(669)		(60)
Other expenses	(2,663)	(2,080)	(583)		(28)
EBITDA excl M&A	6,648	1,641	5,007		305
Depreciation and amortization	(5,631)	(2,063)	(3,568)		(173)
M&A costs	-	(3,306)	3,306		N/A
EBIT	1,017	(3,728)	4,745		127
Finance costs	(915)	(663)	(252)		(38)
Profit before tax	102	(4,391)	4,493		102
Income tax benefit	364	92	272		296
Net profit / (loss) after tax	466	(4,299)	4,765		111

26

==> picture [288 x 540] intentionally omitted <==

Cash flow statement

	1H23 $000’s	1H22 $000’s
Operating activities (excl. M&A costs)	14,478	1,652
M&A costs	-	(4,393)
Investing activities1	(1,436)	20,426
Financing activities	(4,692)	(2,819)
Net increase in cash and cash equivalents	8,350	14,866
Cash and cash equivalents at the beginning of the year	27,161	4,549
Cash and cash equivalents at the end of period	35,511	19,415
Term deposits securing bank guarantees	3,052	3,360
Total cash balance	38,563	22,775

==> picture [54 x 36] intentionally omitted <==

1. 1H22 includes cash acquired upon the acquisition of RedHill of $21.3m.

27

Non-IFRS information

The Company reports EBITDA in addition to the Profit after Tax. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (‘AAS’) and represents the statutory profit under AAS adjusted for specific non-cash and significant items. The company’s directors consider EBITDA to reflect the core earnings of the consolidated entity. A reconciliation between EBITDA and profit after income tax for the half year ended 31 December 2022 is noted in the accompanying table.

1H23 1H22 $000’s $000’s	1H23 1H22 $000’s $000’s	1H23 1H22 $000’s $000’s
Net profit / (loss) after tax 466 (4,299)
Less income tax benefit (364) (92)
Net profit / loss before tax	102	(4,391)
Add back:
Depreciation and amortization 5,631 2,063
Finance costs 915 663
EBITDA	6,648	(1,665)
Add back abnormal expenses:
Merger and acquisition costs - 3,306
EBITDA excl M&A costs 6,648 1,641

==> picture [54 x 36] intentionally omitted <==

28

Segment restatement – 1H22

Half year actuals ($000’s) Variance 1H22 Previous structure 1H22 Revised structure $000’s Revenue Revenue Greenwich 5,041 International Vocational 7,842 2,801 Technology & Design 3,706 Technology & Design 3,706 - Go Study 947 Go Study 947 - Sero / Celtic / CTI 8,608 Domestic Vocational 5,809 (2,799) Eliminations / Other (65) Eliminations / Other (67) (2) Total Revenue 18,237 Total Revenue 18,237 - EBITDA EBITDA Greenwich 1,538 International Vocational 509 (1,029) Technology & Design 1,048 Technology & Design 931 (117) Go Study 29 Go Study (15) (44) Sero / Celtic / CTI 296 Domestic Vocational 1,185 889 Eliminations / Other (1,270) Eliminations / Other (969) 301 EBITDA 1,641 EBITDA 1,641 - ▪ Operating segments for domestic and international vocational students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ▪ The restructure has enabled the centralisation of student support functions to deliver operational efficiencies ▪ Segment results have been reported under the new organisational structure ▪ Certain corporate costs have been reallocated to operating segments to enhance disclosures ▪ Prior period segment results have been restated to ensure comparability between period ▪ There is no change to the consolidated results	Half year actuals ($000’s) Variance 1H22 Previous structure 1H22 Revised structure $000’s Revenue Revenue Greenwich 5,041 International Vocational 7,842 2,801 Technology & Design 3,706 Technology & Design 3,706 - Go Study 947 Go Study 947 - Sero / Celtic / CTI 8,608 Domestic Vocational 5,809 (2,799) Eliminations / Other (65) Eliminations / Other (67) (2) Total Revenue 18,237 Total Revenue 18,237 - EBITDA EBITDA Greenwich 1,538 International Vocational 509 (1,029) Technology & Design 1,048 Technology & Design 931 (117) Go Study 29 Go Study (15) (44) Sero / Celtic / CTI 296 Domestic Vocational 1,185 889 Eliminations / Other (1,270) Eliminations / Other (969) 301 EBITDA 1,641 EBITDA 1,641 - ▪ Operating segments for domestic and international vocational students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ▪ The restructure has enabled the centralisation of student support functions to deliver operational efficiencies ▪ Segment results have been reported under the new organisational structure ▪ Certain corporate costs have been reallocated to operating segments to enhance disclosures ▪ Prior period segment results have been restated to ensure comparability between period ▪ There is no change to the consolidated results	Half year actuals ($000’s) Variance 1H22 Previous structure 1H22 Revised structure $000’s Revenue Revenue Greenwich 5,041 International Vocational 7,842 2,801 Technology & Design 3,706 Technology & Design 3,706 - Go Study 947 Go Study 947 - Sero / Celtic / CTI 8,608 Domestic Vocational 5,809 (2,799) Eliminations / Other (65) Eliminations / Other (67) (2) Total Revenue 18,237 Total Revenue 18,237 - EBITDA EBITDA Greenwich 1,538 International Vocational 509 (1,029) Technology & Design 1,048 Technology & Design 931 (117) Go Study 29 Go Study (15) (44) Sero / Celtic / CTI 296 Domestic Vocational 1,185 889 Eliminations / Other (1,270) Eliminations / Other (969) 301 EBITDA 1,641 EBITDA 1,641 - ▪ Operating segments for domestic and international vocational students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ▪ The restructure has enabled the centralisation of student support functions to deliver operational efficiencies ▪ Segment results have been reported under the new organisational structure ▪ Certain corporate costs have been reallocated to operating segments to enhance disclosures ▪ Prior period segment results have been restated to ensure comparability between period ▪ There is no change to the consolidated results	Half year actuals ($000’s) Variance 1H22 Previous structure 1H22 Revised structure $000’s Revenue Revenue Greenwich 5,041 International Vocational 7,842 2,801 Technology & Design 3,706 Technology & Design 3,706 - Go Study 947 Go Study 947 - Sero / Celtic / CTI 8,608 Domestic Vocational 5,809 (2,799) Eliminations / Other (65) Eliminations / Other (67) (2) Total Revenue 18,237 Total Revenue 18,237 - EBITDA EBITDA Greenwich 1,538 International Vocational 509 (1,029) Technology & Design 1,048 Technology & Design 931 (117) Go Study 29 Go Study (15) (44) Sero / Celtic / CTI 296 Domestic Vocational 1,185 889 Eliminations / Other (1,270) Eliminations / Other (969) 301 EBITDA 1,641 EBITDA 1,641 - ▪ Operating segments for domestic and international vocational students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ▪ The restructure has enabled the centralisation of student support functions to deliver operational efficiencies ▪ Segment results have been reported under the new organisational structure ▪ Certain corporate costs have been reallocated to operating segments to enhance disclosures ▪ Prior period segment results have been restated to ensure comparability between period ▪ There is no change to the consolidated results	Half year actuals ($000’s) Variance 1H22 Previous structure 1H22 Revised structure $000’s Revenue Revenue Greenwich 5,041 International Vocational 7,842 2,801 Technology & Design 3,706 Technology & Design 3,706 - Go Study 947 Go Study 947 - Sero / Celtic / CTI 8,608 Domestic Vocational 5,809 (2,799) Eliminations / Other (65) Eliminations / Other (67) (2) Total Revenue 18,237 Total Revenue 18,237 - EBITDA EBITDA Greenwich 1,538 International Vocational 509 (1,029) Technology & Design 1,048 Technology & Design 931 (117) Go Study 29 Go Study (15) (44) Sero / Celtic / CTI 296 Domestic Vocational 1,185 889 Eliminations / Other (1,270) Eliminations / Other (969) 301 EBITDA 1,641 EBITDA 1,641 - ▪ Operating segments for domestic and international vocational students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ▪ The restructure has enabled the centralisation of student support functions to deliver operational efficiencies ▪ Segment results have been reported under the new organisational structure ▪ Certain corporate costs have been reallocated to operating segments to enhance disclosures ▪ Prior period segment results have been restated to ensure comparability between period ▪ There is no change to the consolidated results	Half year actuals ($000’s) Variance 1H22 Previous structure 1H22 Revised structure $000’s Revenue Revenue Greenwich 5,041 International Vocational 7,842 2,801 Technology & Design 3,706 Technology & Design 3,706 - Go Study 947 Go Study 947 - Sero / Celtic / CTI 8,608 Domestic Vocational 5,809 (2,799) Eliminations / Other (65) Eliminations / Other (67) (2) Total Revenue 18,237 Total Revenue 18,237 - EBITDA EBITDA Greenwich 1,538 International Vocational 509 (1,029) Technology & Design 1,048 Technology & Design 931 (117) Go Study 29 Go Study (15) (44) Sero / Celtic / CTI 296 Domestic Vocational 1,185 889 Eliminations / Other (1,270) Eliminations / Other (969) 301 EBITDA 1,641 EBITDA 1,641 - ▪ Operating segments for domestic and international vocational students were restructured at the beginning of FY23 to better service student markets and leverage organisational capabilities ▪ The restructure has enabled the centralisation of student support functions to deliver operational efficiencies ▪ Segment results have been reported under the new organisational structure ▪ Certain corporate costs have been reallocated to operating segments to enhance disclosures ▪ Prior period segment results have been restated to ensure comparability between period ▪ There is no change to the consolidated results
EBITDA	1,641		EBITDA	1,641	-

==> picture [54 x 36] intentionally omitted <==

29

Segment Revenue & EBITDA

ent Revenue & EBITDA	ent Revenue & EBITDA	ent Revenue & EBITDA	ent Revenue & EBITDA	ent Revenue & EBITDA
Half year actuals ($000’s) Variance
1H23 1H22 $000’s %
Revenue
International Vocational 27,890 7,842 20,048 256%
Technology & Design 9,060 3,706 5,354 144%
Go Study 2,462 947 1,515 160%
Domestic Vocational 4,731 5,809 (1,078) (19%)
Eliminations / Other (569) (67) (502) 749%
Total Revenue	43,574	18,237	25,337	139%
EBITDA
International Vocational 6,531 509 6,022 1,183%
Technology & Design 2,872 931 1,941 208%
Go Study (177) (15) (162) n/m
Domestic Vocational 1,523 1,185 338 29%
Eliminations / Other (4,101) (969) (3,132) 323%
EBITDA	6,648	1,641	5,007	305%

==> picture [54 x 36] intentionally omitted <==

30

Average student numbers by segment

International Vocational

==> picture [229 x 260] intentionally omitted <==

----- Start of picture text -----

7000
6000 491
5000
4000 574 2,958
3000
2000 3,464
2,722
1000
430
0
1H22 1H23
English language Management Hospitality
----- End of picture text -----

Technology & Design

Domestic Vocational

==> picture [498 x 260] intentionally omitted <==

----- Start of picture text -----

900 600
800 78
500
700 141
202
600 400
203
500
300
400 522
300 557 200 388
200 422
100
100
0 0
1H22 1H23 1H22 1H23
AIT Coder Academy ISCD
----- End of picture text -----

==> picture [54 x 36] intentionally omitted <==

31

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 roup Limited, including future share price performance. ​

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 factors, and consult with their own legal, tax, business and/or financial advisors.​

Financial Information

Certain financial measures included in this Presentation, including Underlying EBITDA, Underlying EBIT, Underlying N AT are ‘non-IFRS financial information’ under ASI Regulatory uide 230: ‘Disclosing non-IFRS financial information’ published by ASI and also ‘non- AA financial measures’ within the meaning of Regulation 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, which may be identified by the use of terminology including ‘may’, ‘will’, ‘would’, ‘could’, ‘should’, ‘expects’, ‘believes’, ‘targets’, ‘likely’, ‘plans’, ‘intends’, ‘aims’, ‘estimates’, ‘continue’, ‘objectives’, ‘outlook’ or similar 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.

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 by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “outlook”, “forecast” and ”guidance”, or other similar words. They may include, without limitation, statements regarding plans, 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 ompany’s good-faith assumptions as to the financial, market, regulatory and other considerations that exist and affect the ompany’s business and operations in the future and there can be no assurance that any of the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and many events are beyond the reasonable control of the Company. The ompany’s actual 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.

==> picture [54 x 36] intentionally omitted <==

32