NEXTED GROUP LIMITED — Investor Presentation 2015

May 14, 2015

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ASX:ICT

Investor Presentation, May 2015

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disclaimer

This Presentation has been prepared by iCollege Limited (“Company”). The material contained in this Presentation has been prepared for information purposes only, and is not an offer, invitation or recommendation for subscription or purchase of securities in the Company

While the information contained in this Presentation has been prepared in good faith, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisers give any representations or warranties (express or limited) as to the accuracy, reliability or completeness of the information in this Presentation, or of any other written or oral information made or to be made available to any interested party or its advisers (all such information being referred to as “Information”) and liability therefore is expressly disclaimed to the full extent permitted by law. Accordingly, to the full extent permitted by law, neither the Company nor any of its directors, officers, agents, employees or advisers take any responsibility for, or will accept any liability, whether direct or indirect, express or limited, contractual, tortious, statutory or otherwise, in respect of the accuracy or completeness of the Information or for any of the opinions contained in this Presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the reliance on or use of this Presentation.

Neither the issue of this Presentation nor any part of its contents is to be taken in any form with any inaccuracies in, or omissions from, this Presentation which may become apparent.

The Company reserves its right to terminate any discussions or negotiations with any person.

In no circumstances will the Company be responsible for any costs, losses or expenses incurred in connection with any commitment on the part of a third party to proceed appraisal or investigation of the Company.

In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any errors.

This Presentation should not be considered as the giving of investment advice by the Company or any of its shareholders, directors, officers, agents, employees or advisers. In particular, any estimates or projections or opinions contained in this Presentation necessarily involve significant elements of subjective judgment, analysis and assumptions and each recipient should satisfy itself in relation to such matters.

The Presentation contains reference to certain intentions, expectations and plans of the Company. These intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ. The performance and operations of the Company may be influenced by a number of factors, many of which are outside of its control. No representation or warranty, express or implied, is made by the Company or any of its respective directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved.

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Business Overview

Our mission - To become Australia’s leading provider of accredited vocational training.

Our business – We currently provide accredited vocational training through 3 registered training organisations (RTOs), across 22 industries and >70 accredited courses.

Our opportunity – Consolidate, corporatize and go online.

Our strategies – Acquisitions, course diversification, “full working life” course offering.

• Selective acquisitions to accelerate our course content diversification strategy.

• Acquisition integration and value-add.

• Provide workers a relevant product offering over their “full working life”.

Our acquisition value-add - We add value through internal sales & marketing capability, revenue cross-sell, online course delivery, selective offering of government funding for students and offering workers relevant courses over their “full working life”.

– Our competitive advantages

• Online education offering.

• Diversified courses to maximise our revenue over workers’ “full working life”.

• Internal sales & marketing capability drives revenue cross-sell.

• Operational best practice.

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Our business

board of directors

capital structure

Victor Hawkins - operational and implementation Ross Cotton - corporate and strategy Phil Re - CA and ASX corporate advisor Hans de Back - chairman

key information (ASX:ICT) of 14 May 2015	key information (ASX:ICT) of 14 May 2015
share price	$0.19
shares on issue	66,724,626
market cap	$12,677,679
listed options	23,756,507
performance shares not issued	10,000,002

executive management

Chris Watts - CFO and auditing background Travis Latter - implementation manager

share register distribution	share register distribution
top 20 Shareholders (excl board)	35%
board	18%
others	47%

for full bios on directors please refer to icollege.net

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Our schools consolidated

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All Schools Consolidated Results FY14

Total	2014 ($)
Sales	9,529,756
COGS	5,634,991
Gross Profit	3,894,765
%	41%
Expenses	1,044,964
EBIT	2,849,801

Our opportunity

State of play

• The registered training organisation sector is currently a “cottage” sector (with many single course RTOs), highly fragmented (approx. 5,000 RTOs nationally) and with a high proportion of classroom-based training.

Our opportunity

• .

• Consolidate a fragmented sector, with ~5,000 RTOs nationally

• Corporatize and introduce best practices into a “cottage” sector.

• Online migration of “face to face” courses where appropriate, to increase efficiencies, improve customer experience and improve margins.

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our consolidation strategy

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Why consolidate? Benefits of consolidation -

• Expand customer offering

• Expand revenue cross-sell opportunities.

• Reduce industry concentration risk.

• Increase operating efficiency, scale and profit margins.

– Our diversification opportunity

• Geographic.

• Industry.

• Skills level.

Our value-add –

• Revenue cross-sell.

• Internal sales & marketing capability.

• Diversified offering.

• Migrate to online training.

• Best practice operating efficiencies (ethical standards, customer outcomes, compliance, head office infrastructure).

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RTO ID: 32219 Head Office : Gold Coast, QLD.

Bookkeeping School was established May 2010.

It is an online Registered Training Organisation (RTO) that delivers:

FNS40211 - Cert IV in Bookkeeping

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FNSBKG404A - Carry out Business Activity and Instalment Activity Statement tasks FNSBKG405A - Establish and Maintain a Payroll System

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MYOB Training - Online & 2 Day Classroom Courses

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Manual Bookkeeping

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BAS + Payroll Compliance Units

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• 1 Bookkeeping School objective is to offer career changing results through training.

Students are mentored, not just trained. With a 75% student return rate, Bookkeeping 2 School prides itself on producing the best Accountants, Bookkeepers and BAS Agents in Australia.

With recent changes to legislation, all Bookkeepers and BAS Agents must now be qualified. This provides the Bookkeeping School with an excellent pipeline of future revenue.

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Historical Results FY14 (unaudited)
BKS 2014 ($)
Sales 170,025
COGS 97,254
Gross Profit 72,771
% 43%
Expenses 48,280
EBIT 24,491
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The next 12 months will see expansion into other regional areas and states, a new website and a marketing drive centred on Accountants. There is significant funding available to students and this is an area that has not been explored in the business to date.

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(English translation of the Greek word – learning) RTO ID: 31946 Head Office : Gold Coast, QLD

MATHISI is a well established QLD based RTO specialising in Business and Retail qualifications, delivering Nationally Recognised Training throughout Queensland. The fully accredited business has been operating for 5 years and has established a respected position in the market through the delivery of high quality training using proven course materials, resulting in a 96% completion rate and excellent student feedback.

MATHISI mission is to provide learning that leads to career advancing outcomes. MATHISI currently train in the following Sectors:

• •

• Business Community

• • • Business – Legal Education Support

• • • Marketing Financial Services

• • • Human Resources Accounting and Bookkeeping

• • • Work, Health and Safety Health Services

• • • Quality Auditing Retail

• • • Aged Care Retail Management

• • • Disability Childcare

MATHISI delivers training under Government funded programs designed to up-skill the community.

MATHISI also has strategic partnerships in place to deliver further courses that results in outcomes for the students.

Historical Results FY14

MATHISI	2014 ($)
Sales	1,282,969
COGS	604,902
Gross Profit	678,067
%	53%
Expenses	93,116
EBIT	584,951

Mathisi is well positioned to take advantage of the variety of Government initiatives whilst increasing their corporate business. The next two years will see continued growth and profitability.

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Management Institute of Australia 1 RTO ID: 91297 Management Institute of Australia 2

RTO ID: 31803 Management Institute of Australia RTO ID: 32441 Head Office : Sydney, NSW. With 18 locations around Australia

Easy RPL Head Office : Liverpool, NSW.

One of Australia’s most diverse RTOs. With a combined scope of 70 accredited Nationally Recognised courses and many more non-accredited courses, MIA has been positioned for national and international expansion.

The company established its RTO operations in 2005.

In 2011 Management Institute of Australia set up a unique model in the Australian VET sector. This model involved developing a sophisticated, systems-driven RTO model which has been adopted by a range of private education business owners. The model is predicated by having a flexible training delivery utilising online platforms and strong compliance systems.

Management Institute of Australia is committed to the continuous development and transfer of knowledge to enhance professional performance for our students, corporate partners and stakeholders.

The 4 strategic directions are:

1 Steady and continuous growth in the number, geographic and key learning areas of franchisees.

2 Maintain a focus on nurturing learner engagement through the education process of franchisees.

3 Develop a sustainable design to take the RTO franchisee model to selected international markets.

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Establish articulated pathways for our VET students into Higher Education.

There are 22 industries covered and range from entry level (Certificate II) through to senior management training (Advanced Diploma).

Industries includes

• •

• Business Commercial cookery

• • • Training Childcare

• • • Warehousing Aged Care

• • • Logistics Disability services

• • • Beauty Tourism and travel

• • • Massage Retail

• • • Fitness Learning management

• • • Automotive Bookepping

• • • Rural Accounting

• • • Hospitality Quality auditing

• • • Project Management Workplace Health and Safety

Management Institute of Australia does not rely on one form of Government funding and this diversity acts to mitigate risk.

Historical Results FY14

MIA	2014 ($)
Sales	8,076,762
COGS	4,932,835
Gross Profit	3,143,927
%	39%
Expenses	903,568
EBIT	2,240,359

The next 12 months will see further growth in senior management training across the industry sectors and the development of Higher Education programs (Bachelor Degree programs).

we offer

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A user-friendly Learning Management System that delivers a better student experience and tablet optimised

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Integration of traditional education businesses with our technology to improve outcomes and efficiencies

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Growth spurred by acquisitions of businesses and portfolio of courses

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A diverse range of accredited and non-accredited courses to be delivered on our online platform worldwide

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ross cotton executive director

ross@icollege.net +61 419 870 363

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