Navitas UBS Emerging Companies conference presentation

10 April 2013 ASX: NVT

SUCCESS THROUGH DIVERSITY UBS Emerging Companies

Conference

2 NAVITAS (NVT) –UBS EMERGING COMPANIES CONFERENCE – 10 APRIL 2013

Disclaimer

Important Notice and Disclaimer

This document has been prepared by Navitas Limited ABN 69 109 613 309 ("Navitas" or the "Company"). Information in this document should be read in conjunction with other Navitas announcements made to ASX.

This document has been prepared for information purposes only and does not take into account your individual investment objectives, including the merits and risks involved in an investment in Navitas shares, or your financial situation or particular needs, and is not investment, financial product, legal, tax or accounting advice or opinion.

You must not act on the basis of any matter contained in this document, but must make your own independent investigation and assessment of Navitas and its shares and obtain any professional advice you require before making any investment decision based on your investment objectives and financial circumstances. An investment in Navitas shares is subject to investment and other known and unknown risks, some of which are beyond the control of Navitas, including possible delays in repayment and loss of income and principal invested. Navitas does not guarantee any particular rate of return or the performance of Navitas, nor does it guarantee the repayment of capital from Navitas or any particular tax treatment.

All information in this document is believed to be reliable, but no representation, warranty or guarantee, express or implied, is made by Navitas, its subsidiaries or their respective directors, officers, employees or agents, nor any other person (the “Beneficiaries”) as to the fairness, accuracy, completeness, reliability or correctness of the information, opinions and conclusions contained in this document (including, without limitation, any estimates, calculations, projections or forward looking statements). No action should be taken on the basis of the information, and no reliance may be placed for any purpose on the accuracy or completeness of the information or opinions contained in this document. To the maximum extent permitted by law, the Beneficiaries shall have no liability, including, without limitation, any liability arising from fault or negligence, for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from this document.

The distribution of this document in other jurisdictions outside Australia may also be restricted by law and any such restrictions should be observed. Any failure to comply with such restrictions may constitute a violation of applicable securities laws.

This document does not constitute an offer, invitation, solicitation, advice or recommendation with respect to the issue, purchase or sale of any security in any jurisdiction. In particular, this document does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any "U.S. person" (as defined in the U.S. Securities Act of 1933 ("U.S. Securities Act")). Shares in Navitas have not been and will not be registered under the U.S. Securities Act, or under the securities laws of any state or other jurisdiction of the United States. Accordingly, shares in Navitas may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, U.S. Persons, except in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This document may not be distributed or released in the United States or to, or for the account or benefit of, any U.S. person.

All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.


Company profile

Navitas (ASX: NVT) is a leading global education provider that offers an extensive range of educational and training services for students and professionals across Australia and around the world

Market cap

$2.0b

Annual revenue

$702.1m

Colleges/ schools

111

Staff headcount

~5,000

Students

> 80,000

University Programs - leading provider of 30 pathway colleges and managed campuses across Australia and in the UK, US, Canada, Singapore, Kenya and Sri Lanka

SAE Group - creative media education provider delivering vocational and higher education qualifications in audio, film and multimedia via 53 colleges in Australasia, US, Europe and the Middle East

Professional and English Programs – provides quality vocational training, higher education and placement services in areas of key demand across Australia as well as providing English as a second language courses for international students and English language, settlement and work preparation programs for migrants and refugees .


Total Group revenue up 4% to $355.4m

EBITDA up 5% to $59.9m

Net profit after tax $35.1m

Earnings per share 9.3¢

Fully franked interim dividend of 9.3¢

H1 FY13 Group highlights

Return to growth in University Programs enrolments

SAE earnings growth below expectations English earnings bounce back strongly Professional and Student Recruitment record

earnings losses Strategic and structural review of Navitas

completed and implementation underway

Operational

Revenue $355.4m

NPAT 35.1m

EPS 9.3¢

DPS 9.3¢

UNIVERSITY PROGRAMS ENROLMENTS


Australian total enrolment declines cease

Semester

8% 5%

-4%

-9%

-14%

-21%

-13% -12%

-8%

-0.5%

10

01

10

02

10

03

11

01

11

02

11

03

12

01

12

02

12

03

13

01

Equivalent Full Time Students Units (EFTSU) enrolments - variance against pcp


Australian new student recruitment

• Key factors for international offshore growth Stabilisation of Australian regulatory and policy environment Knight Review changes now being understood by markets SVP – commenced March 2012 Post Study Work Rights – commenced March 2013, available to

students who commenced HE study after 5 November 2011

+ 12%

201301

+ 7%

201203

New student enrolments

1201 1103

New Australian cohort has three components

International students recruited offshore – 201301 >30% increase

International students recruited onshore – 201301 decrease

Australian domestic students – 201301 ~10% increase


Trend continues to improve

Equivalent Full Time Students Units (EFTSU): Semester enrolments

Semester 1 2013 EFTSU - 4% growth against pcp

9,21

0

9,02

0

12,2

68

11,5

73

12,0

25

15,4

19

14,3

06

14,5

29

17,8

11

15,7

24

14,6

75

17,1

49

14,6

01

13,3

20

16,4

22

14,0

97

13,6

02

17,0

71

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

0702

0703

0801

0802

0803

0901

0902

0903

1001

1002

1003

1101

1102

1103

1201

1202

1203

1301

% E

nrol

men

t gr

owth

Equi

vale

nt F

ull T

ime

Stu

dent

s(E

FTSU

)

Semester


Continued diversification

Australia 60%

UK 12%

North America

13%

Rest of World 15%

201201 EFTSU by region 201301 EFTSU by region

Growth by region on pcp • North America up 24% • UK up 12% • Australia down 0.5% • Asia/Africa down 3%

Australia 58%

UK 13%

North America

16%

Rest of World 13%

INTERIM FINANCIAL PERFORMANCE


Core Divisions perform well in 1st half

EBITDA ($m) H1 FY13 H1 FY12 Δ%

University Programs 52.3 49.9 5

SAE Group 12.6 11.8 7

Professional and English Programs 4.6 3.7 24

Divisional EBITDA 69.5 65.4 6

Corporate costs (9.6) (8.3) 16

Group EBITDA 59.9 57.1 5

75%

18%

7%

69.5m

EBITDA by Division


Long term growth

13% CAGR

18% CAGR

17% CAGR

217.4 270.2 291.4

341.8 355.4

H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13

REVENUE ($m)

30.4

43.4 48.4

57.1 59.9


EBITDA ($m)

19.0

27.5 32.6 35.4 35.1


NPAT ($m)

55.2 52.8 21.2

50.4 13.6


1.9

13.0 5.0

8.7 2.8


2.5

8.5 5.1

2.8 (0.3)


PERIOD MOVEMENT


Consistent shareholder returns

14% CAGR

4% CAGR

14% CAGR

5.5

8.0 9.5 9.4 9.3


EARNINGS (cps)

8.6 6.1 4.9 5.2

10.1


OPERATING CASH FLOW (cps)

5.5

8.1 8.7 9.4 9.3


DIVIDENDS (cps)

0.5

2.6 0.6

0.7 (0.1)


0.8

2.5

1.5 (0.1) (0.1)


PERIOD MOVEMENT

2.5 (2.5 ) (1.2 ) 0.3

4.9


APPENDIX


-1,000 -500 0 500 1,000

0-9

10-19

20-29

30-39

40-49

50-59

60-69

70-79

80-89

90+

Millions

263 million by

2025

Global market conditions positive

2.1 2.1 2.4 2.6 2.8 3.0 3.1 3.2 3.5

3.7 4.1

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

to

2024

2025

International student enrolments (m) 8.2

International education market share (%)

Source: , UNESCO Institute of Statistics, OECD Education at a Glance 2012

World population by gender

2010:3.45bn 2025: 3.99bn

Male Female

2010: 3.40bn 2025:3.95bn

2012

165

98

Current enrolments

Enrolment growth

Global tertiary enrolment (m)


Corporate snapshot

375.4m Shares on issue

$2.0b Market Capitalisation

ASX200

52 wk range

Annualised dividend

$5.33 Share Price

1 April 2013

NVT

$3.55 - $5.33

19.4cps


Detailed H1 P&L – 5 years

Navitas Ltd$000s H1 FY09 H1 FY10 H1 FY11 H1 FY12 H1 FY13 $000s Index CAGR*

Operating RevenueUniversity Programs 140,721 174,681 193,388 190,657 203,506 12,849 107% 10%SAE - - - 57,063 55,594 (1,469) 97% n/aPEP 74,925 93,811 95,215 92,084 94,389 2,305 103% 6%Corporate & consolidation items 793 1,126 2,095 1,863 1,350 (513) 72% 14%

Total operating revenue 216,439 269,618 290,698 341,667 354,839 13,172 104% 13%Expenses (186,038) (226,220) (242,321) (284,530) (294,965) (10,435) 104% 12%EBITDA 30,401 43,398 48,377 57,137 59,874 2,737 105% 18%Depreciation (2,415) (3,302) (3,825) (6,233) (7,039) (806) 113% 31%EBITA 27,986 40,096 44,552 50,904 52,835 1,931 104% 17%Amortisation (502) (488) (2,603) (488) (488) - 100% -1%EBIT 27,484 39,608 41,949 50,416 52,347 1,931 104% 17%Net Interest (paid)/received 246 441 390 (4,085) (3,802) 283 93% n/aNet profit before tax 27,730 40,049 42,339 46,331 48,545 2,214 105% 15%Income tax (8,955) (12,807) (10,122) (10,938) (13,242) (2,304) 121% 10%NPAT 18,775 27,242 32,217 35,393 35,303 (90) 100% 17%Outside equity interest 228 272 355 (33) (233) (200) 706% n/aNPAT attributable to members 19,003 27,514 32,572 35,360 35,070 (290) 99% 17%

* Cumulative Annual Growth Rate from H1 FY09 to H1 FY13

PCP Change