NEXTED GROUP LIMITED — Investor Presentation 2014

Sep 14, 2014

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Company Snapshot

• iCollege.net is an ASX listed (ASX: ICT) global provider of online education targeting the non-formal vocational and career training sectors.

• ICT has developed a world-class cloud based technology platform, which integrates LMS, BMS and mobile ready functionality into one consolidated system.

Keyinformation(ASX:ICT)as September 2014	Keyinformation(ASX:ICT)as September 2014
Shareprice	$0.14
Shares on issue	56,020,846
Market cap	$7,842,918
Cash Balance	$2.1 million
Enterprise Value	$5,742,918
52 weeks shareprice range	($0.10 - $0.20)

Share Register Distribution

• commercially competitive model,

• which is ,

• flexible self paced and offers

• students up to 50% more course content .

• compared to its peers

• The company has launched its fully functional platform and initial portfolio of 25 courses in August 2014 and is now targeting

• release of 300 additional courses by June 2015.

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Top 20 Shareholders (exlc. Board)
Board
Others
35%
47%
18%
NOTES:
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•
56,020,846 Total FPO Securites on Issue
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• 37,348,159 Quoted FPO Securities on ASX

• 18,750,007 Escrowed Securites 12/24 months

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1. Experienced Team 2. Market Opportunity 3. Proprietary Technology 4. The iCollege Platform 5. Marketing & Distribution 6. Focused Strategy & Commercialisation Model

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Experienced Team

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Hans de Back Non Executive Chairman

1. Over 14 years of international entrepreneurial experience across multiple high-tech industries

2. Managing Partner of IncubAsia, an early stage technology investment

3. Non-Executive Director and substantial shareholder of Moko Social Media Limited

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Victor Hawkins Managing Director

1. as a 10+ years experience management consultant over 500 companies

2. an Successfully restructured Education academy a cloud based digital management business model: trained over 15.000 students

3. Considered one of Australia’s foremost thinkers in the Online Education market

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Philip Re Non Executive Director

1. Managing Director and NonExecutive Director positions at various ASX-listed companies

2. Successfully raised capital, restructured businesses and undertaken IPO’s during his career

3. Owns a Corporate Advisory business, Regency Corporate, based in WA

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1. Experienced Team 2. Market Opportunity 3. Proprietary Technology 4. The iCollege Platform 5. Marketing & Distribution 6. Focused Strategy & Commercialisation Model

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Online Education Market Segmentation (2013)

72% Certificates Diplomas Short Courses

25% Academic (Universities)

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3% School Education

Market Focus 72%

Professional Vocational Career Technical Middle Skills Short Courses

Source : IBISWorld - EdTechReview

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AUSTRALIA USA

GLOBAL

$5.9Bn Annual Revenue 2013

$68.9Bn Annual Revenue 2013

$139Bn Annual Revenue 2013

17.6% Annual Growth 2014-18

ICT Segment $4.2Bn

21% 24% Annual Growth 2014-18 Annual Growth 2014-18 ICT Segment ICT Segment $49.6Bn $100Bn 7

Global Online Education Market

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Online
University
Platforms
Mobile Optimised
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MOOCS
Career Focused,
Vocational & Skills
Online Platform
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1. Experienced Team 2. Market Opportunity 3. Proprietary Technology 4. The iCollege Platform 5. Marketing & Distribution 6. Focused Strategy & Commercialisation Model

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Proprietary Technology

• ✓ Unique cloud based technology developed in-house over 6 years

• ✓ LMS, BMS and Mobile Ready functionality

• ✓ Customised platform for students, trainers and business management providers

• ✓ Standardised for global roll out

• ✓ Visually smoother , interactive and richer customer experience

• ✓ Superior analytics and easy to operate system

Learning Management Management System System

LMS

BMS

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100% Mobile Ready

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1. Experienced Team 2. Market Opportunity 3. Proprietary Technology 4. The iCollege Platform 5. Marketing & Distribution 6. Focused Strategy & Commercialisation Model

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Proprietary Online Campus

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Trainer view
My Classroom
Manage Manage Students
Courses Assessments Management
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Student view

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My Campus
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Management Dashboard
Manage Students Message
Courses Board Board
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Management view
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The iCollege Advantage Proprietary platform and content ownership provides greater competitive advantages and flexibility

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Up to 50% more Affordability content

Education Mobile Flexibility Education

Student will receive extra units and courses

Courses and Students can Mobile User qualifications are choose the units interface optimised 30 to 50% cheaper they want to learn (for iOS & Android) than on other and the skills they Study anywhere / websites need to acquire anytime

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1. Experienced Team 2. Market Opportunity 3. Proprietary Technology 4. The iCollege Platform 5. Marketing & Distribution 6. Focused Strategy & Commercialisation Model

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Five Initial Target markets Australia, US, Canada, UK and NZ account for over 65% of the world’s total spend on online education in career, vocational and short-courses $100 Billion Online Vocational and Career Sector

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Australia, U.S, Canada, UK and New Zealand account for 65%

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Four Types of Products

Short 1-Day Courses

up to 2 weeks

$99

Unit of Competency / Short Courses

up to 3 months $159 - $299

Short Professional Certificates Qualifications

up to 6 months $599 up to 12 months $999 - $1999

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Marketing and Distribution Focus

Business to Consumer

Business to Business

Organic Paid Marketing Marketing Partnership

Corporate Industry Content White Label Partnership Partnership Partners

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End User
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1. Experienced Team 2. Market Opportunity 3. Proprietary Technology 4. The iCollege Platform 5. Marketing & Distribution 6. Focused Strategy & Commercialisation Model

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Focused Growth Strategy

	2014	2014	2014	2014	2015	2015	2015	2015	2015	2015
	Sept	Oct	Nov	Dec	Jan	Feb	March	April	May	June
Course Expansion	Release 300 courses
Partnership Expansion		Key partnership with major media players to bring audience
Geographic Expansion				Expand to new markets : North America, Europe and Asia
Afliate Expansion				Afliate program to access strategic and large corporations to secure long term activity

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Multiple Revenue Streams

Consumers

•

• Course fees directly from end consumers. Paid as a lump sum or under a payment plan

• Per user course fees for organisations using iCollege services, paid for by employees

Businesses

•

• or an annual fee plan

• user businesses, including development of customised interfaces and portals

Partnerships

•

• Revenues from partner organisations acting a as a reselling sales channel for courses

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iCollege Business Model

Low cost Minimal fixed course Scalable Attractive and customer rates acquisition + platform + + + capital costs development

• Low corporate costs

• Highly scalable delivery platform

• Discounted course fees to drive customer growth

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Summary First and only global vocational and career online courses provider Unique cloud based proprietary technology – offering an integrated LMS, BMS and Mobile Ready platform Attractive commercialisation model – multiple revenue streams and highly scalable cost base Focused growth strategy Specialised and experienced management team

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APPENDICES

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Experienced Operational Team

Georges Sabbagh Business Development Manager

Asher Nevins Technology Manager

Andrei Dragut Web Manager

1. Seven-year track record of surpassing million dollar sales quotas.

2. and budget planning on an international scale

3. Has secured contracts with large European and Asian retail companies.

4. Developed and ran his own consulting company, PhpFX with a team of developers operating in the United States.

5. University of Western Australia are using his software to support research and teaching.

6. Technical experience designing systems architecture and managing infrastructure

7. Over 20 years experience working with international brands in a fastpaced and collaborative including

8. Has worked with global leading brands, including: DreamWorks Animation, Disney, Lego, Mattel, Kraft Foods, L’Oreal, Phillips, Renault and Coca Cola.

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• Global shift towards online education and mobile devices (1 of 2)

Online Education Market

Global online education market $139 Bn

40%

of Fortune 500 companies utilize educational technology

US market established and

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Government initiatives
promoting Vocational
Education in Australia
following deregulation of the
Australian University sector
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Forecast to up to grow by 2018 to 50% $255 Bn estimated savings

rapidly growing

Government budgets under pressure accelerating a need for cheaper alternatives

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• Global shift towards online education and mobile devices (2 of 2)

Mobile Devices Market

In the US as January 2014 64% 42% of adults have a of adults have a smartphone tablet

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People in the world accessing internet
daily through a mobile device
1.5Bn
3Bn
in 2014 by 2018
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IBIS predicts a 31%

are rolling out the red growth in carpet for iCollege to Mobile deliver their unique Online Education Education Offering by 2018

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Global Education Market

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Global
Education Market
Vocational
Education sector
$4 Trillion
$215 Billion
Online
Education
$139 Billion
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Online Vocational and Career Sector $100 Billion

iCollege Target Market

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iCollege

• Career orientated

• 100% Completion rate

• • Website Mobile optimised. Student can study anywhere /anytime

• Demand for Professional Education rising (45% of new jobs will require Middle Skills)

• Students pay for the courses at attractive rates

• Certificate / diploma awarded upon completion

MOOC

• Academic and University focused

• Poor completion rates: 95% dropout (less than 5% of graduates)

• Not Mobile optimised and dated systems. Not user-friendly

Demand for MOOCs declining (5% less students in 2013 compared to 2012)

• Courses are free: MOOC’s are philanthropic and generate leads for universities

• No test or measurement of success

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• Corporate Activity in e-Learning sector

Billion dollar corporate activity in the education sector

• In 2012 $1 Billion was raised from 94 raisings (ISIS 2012) and $8.5Bn of M&A deals

• • In the last 2 years 173 e-learning companies successfully raised funds

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$85M raised $285M ASX IPO
$50M raised $60M raised
$150M invested for 70% $230M ASX NXS IPO
NASDAQ Listed $3B M/Cap
acquire interest in Open Colleges
$250M ASX IPO
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iCollege Student Profiles AVERAGE STUDENT AGE : 34

Young Worker Young Experienced Unqualified Single Parent Unemployed Undergraduate Worker Ben Melanie Mike Sarah Patrick 26, single 31, single mom 34, married w 2 kids 21, single, traveling 40, married Telemarketer Hair dresser Unemployed for Backpacking Working corporate for 3 years for 3 years 6 months (worked various around the world for 17 years positions previously) wants to wants a wants to start wants to get a wants a job in manage a small business better job her own business stable quality job design when she comes back

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