- Navitas reported revenue growth of 19% for the first half of FY14 compared to the prior corresponding period, with revenue reaching $421.9 million. EBITDA increased 6% to $63.2 million. - The University Programs division saw a 20% increase in revenue to $243.2 million and a 12% increase in EBITDA to $58.4 million, with enrolment growth across all key regions. Two new colleges were opened in the period. - SAE revenue increased 22% to $68.1 million due to growth in the US and Germany, while EBITDA declined 29% to $9.0 million due to investments in US operations.

1. Shaping
Shaping
the
the
Future
Future
FY14 INTERIM RESULTS
For the half year ended
31 December 2013
ASX:NVT

2. 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.
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
2

3. Company Profile
Navitas (ASX: NVT) is a leading global education provider offering an
extensive range of educational and training services for students and
professionals across Australia and around the world
Market cap
Annualised
revenue
Staff
headcount
Students
Colleges/
schools
$2.41b
$795.3m
~5,500
> 80,000
115
University Programs - leading provider of 32 pathway colleges and managed campuses across
Australia and in the UK, US, Canada, Singapore, Kenya, New Zealand and Sri Lanka
SAE - creative media education provider delivering vocational and higher education qualifications in
audio, film and multimedia via 58 colleges in Australasia, US, Europe and the Middle East
Professional and English Programs – provides 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
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
3

4. FY14 Interim Result Highlights
Group
•
•
•
•
Revenue up 19% to $421.9m
6% increase in EBITDA to $63.2m
Net profit after tax up 3% to $36.1m
Interim dividend of 9.4 cents per share
University Programs • Revenue up 20% to $243.2m following enrolment
growth in all key regions and significant fee growth
• 12% increase in EBITDA to $58.4m with margins
impacted by sales and marketing enhancements
• Two new colleges opened
SAE
• 22% increase in revenue following improvement in US
and Germany – 11% post favourable FX impact
• EBITDA down to $9.0m due to investment in US
operations, staff capacity, systems and processes
Professional and
English Programs
• Continued growth provides 15% revenue increase to
$108.1m and 134% EBITDA growth to $11.0m
• ACAP increases EBITDA by more than 50%
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
4

5. Financial
Performance
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT

6. Investment in new businesses continues
Group performance summary
H1 FY14
H1 FY13
∆%
419.7
347.9
21
2.2
7.5
(70)
421.9
355.4
19
Continuing business
65.5
62.6
5
New campuses*
(2.3)
(2.7)
(15)
Total
63.2
59.9
6
EBITDA Margin
15.0%
16.9%
NPAT ($m)
36.1
35.1
3
EPS (cents)
9.6
9.3
3
Interim Dividend (cents)
9.4
9.3
1
($m)
Revenue
Continuing business
New campuses*
Total
EBITDA
*H1 FY14: EIC, NIC, UCIC, BCUIC and SAE Chicago and Jakarta (H1 FY13: USA UP market expansion, ICRGU, EIC, NIC and SAE Chicago and Jakarta)
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
6

7. Strong revenue growth across all segments
Core Divisions perform well in 1st half
Revenue($m)
H1 FY14
H1 FY13
∆%
243.2
203.5
20
68.1
55.6
22
UP
Professional and English
Programs
108.1
94.4
15
SAE
Divisional revenue
419.4
353.5
19
PEP
2.5
1.9
32
421.9
355.4
19
University Programs
SAE Group
Other
Group revenue
Divisional
revenue
by region
5%
6%
7%
8%
26%
$419.4m
58%
16%
Australia
7%
UK
Europe
$419.4m
Canada
67%
USA
ROW
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
7

8. EBITDA impacted by investment for the future
Core Divisions perform well in 1st half
EBITDA ($m)
H1 FY14
H1 FY13
∆%
58.4
52.2
12
9.0
12.6
(29)
Professional and English
Programs
11.0
4.7
134
Divisional EBITDA
78.4
69.5
13
Corporate costs
(15.2)
(9.6)
58
Group EBITDA
63.2
59.9
6
University Programs
SAE Group
H1 FY14
Divisional
EBITDA
H1 FY13
Divisional
EBITDA
7%
14%
UP
11%
$78.4m
SAE
18%
$69.5m
PEP
75%
75%
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
8

9. Strong record of consistent growth…
Track record of compound annual growth
(CAGR)
EBITDA ($m)
Revenue ($m)
NPAT ($m)
421.9
35.4
63.2
341.8
36.1
32.6
59.9
355.4
35.1
57.1
27.5
291.4
48.4
270.2
43.4
217.4
19.0
28.5
162.2
30.4
14.1
24.9
137.2
15.1
16.5
22.0
108.0
21.5%
16.3%
14.4%
CAGR
CAGR
CAGR
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
9

10. …translating into solid returns for shareholders
Earnings (cps)
Operating cashflow (cps)
Dividends (cps)
11.4
9.4
10.1
9.5
9.4
9.3
9.3
9.4
8.7
8.1
9.6
8.6
8.0
6.1
5.5
6.1
5.5
4.9
4.8
4.1
5.2
4.7
4.7
4.3
4.3
1.5
1.6
13.1%
33.7%
10.4%
CAGR
CAGR
CAGR
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
10

11. Strong cash generation continues to reduce debt
Net debt $m
1-Jul-13
 Cash realisation ratio1 of 0.93x
(H1 FY13: 0.88x)
94.9
 Deferred revenue up 30% to
$214.1m
38.3
Dividends Paid
Capex
 Net debt represents only 0.82x
of rolling 12 months EBITDA
($133.3m)
9.9
FX Translation charge
9.2
Operational Cashflows
(42.7)
Other
(0.8)
31-Dec-13
108.8
Debt composition ($m)
1Cash
realisation ratio= Net Operating Cashflow
NPAT plus amtsn and depcn
31Dec-13
31Dec-12
Debt
185.5
178.8
Cash related to the Tuition Protection
Service
(64.6)
(39.5)
Other Cash
(12.1)
(12.7)
31–Dec
108.8
126.7
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
11

12. University Programs
University Programs
Highlights
Financial Performance
Revenue
EBITDA *
$243.2m
20%
EBITDA *
$58.4m
12%
• Underlying revenue up 16% (10% volume
and 6% avg price) after adjusting for FX
movements
• Enrolment growth in all key regions; US
(45%), UK (23%), Canada (21%), Aus (13%)
• US colleges reach operational breakeven
EBITDA $m
53.6
43.5
49.9
52.2
58.4
• UC International College (New Zealand) and
Birmingham City University International
College (UK) opened
• La Trobe University Sydney Campus contract
extended for 10 years
• Outstanding academic outcomes with 95%
progression rates
H1 FY10
H1 FY11
H1 FY12
H1 FY13
H1 FY14
• Discussions with new potential partners
ongoing
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
12

13. SAE
SAE
Highlights
Financial performance)
Revenue
$68.1m
23%
•
EBITDA
$9.0m
Underlying revenue up 11% after adjusting
for FX movements
29%
•
Strong A$ revenue growth led by US (69%)
and German (35%) operations
•
Earnings impacted by investments in US
operations, staff capacity, systems and
processes
•
Australian operations moderate following
period of solid growth
•
New York college relocated
•
New Chicago college opened; recently
granted Title IV funding
•
Strong underlying growth demonstrated by
revenue improvement
EBITDA $m
11.8
12.6
9.0
Pre-Acquisition period
H1 FY10
H1 FY11
H1 FY12
H1 FY13
H1 FY14
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
13

14. Professional and English Programs
Professional (formerly Workforce)
Highlights
Financial performance
Revenue
$108.1m
15%
Record performance with increases in
revenues and earnings boosted by weak
pcp
•
Return to normalised earnings levels
•
EBITDA
$11.0m
•
Improvement largely from ACAP and
English and Foundation Skills (formerly
Government Programs)
134%
EBITDA $m
o
ACAP increases earnings by more than 50%
following significant student growth
o
11.0
English and Foundation Skills increases client
numbers and hours against pcp
9.5
5.0
3.7
H1 FY10
H1 FY11
H1 FY12
4.6
H1 FY13
•
Key government contracts due for renewal
on 1 July 2014, government holds 3 year
extension option
H1 FY14
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
14

15. Corporate costs
Corporate costs
Highlights
EBITDA ($m)
H1 FY10
H1 FY11
H1 FY12
H1 FY13
H1 FY14
•
Corporate costs rise due to investment in
business for future growth
•
Increases in EVA incentive payments as
Group performance improves
•
Increase in lease costs associated with
surplus space at Wynyard Green
-8.3
-9.7
-10.2
-9.6
o
•
Wynyard Green vacancies being
rationalised with Navitas businesses
o
-15.2
Higher capex to be offset by lower lease
costs and operational efficiencies
Charges from the marking to market of
FX hedging book
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
15

16. Outlook
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT

17. Recovery continues to strengthen…
UP enrolment trend continues to improve
University Programs Equivalent Full Time Students Units (EFTSU): Semester enrolments
•
•
•
13% semester 3 2013 EFTSU growth against pcp
All key regions showing good growth
Australian new student enrolments up more than 30% in semester 3 2013
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
17

18. ..supporting solid growth momentum in FY14…
Professional and English Programs
University Programs
• Recent student enrolment increases to
benefit in H2 FY14 and beyond
• H2 FY14 growth vs pcp to exceed H1 FY14
• Impact from investments to continue
throughout FY14
SAE
• Strong revenue growth indicating
improvement trend
• Expecting stronger H2 though FY14 result
will be flat, or lower, than pcp
• US operations expected to record small
profit following H1 EBITDA loss of $2m
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
18

19. …and reaffirming guidance
Professional and English Programs
Professional and English Programs
• Full year growth anticipated but lower H2
than pcp
• ACAP and English and Foundation Skills to
moderate off higher comparatives
• Key government contracts due for renewal,
government holds 3 year extension options
Navitas
• Corporate costs to rise but remain at ~3%
of revenues
• FY14 EBITDA guidance reaffirmed at $138m
to $148m
• Dividend Reinvestment Plan commencing for
FY14 interim dividend
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
19

20. Appendix
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT

21. Profitable and highly capital efficient model
Financial metrics vs Campus size
•
% of revenue
40%
Established
Campus
Strong operating leverage as
student numbers increase
•
50%
Low capital requirements
o leverage partner universities
infrastructure and spare
teaching capacity
o fees received in advance
drives negative working
capital
30%
Royalty payments (Variable)
20%
Teaching costs
(Semi‐variable)
10%
Agent commissions (Variable)
Marketing & Admin
costs (Semi‐fixed)
New
Campus
1,000
2,000
3,000
Campus size (# of students)
Indicative EBITDA Margin
Navitas FY14 Interim Results Presentation – 31 December 2013 - ASX:NVT
21

22. Global market conditions remain positive
Supply imbalance in key source markets (m)
China
Global tertiary enrolment (m)
9.57
9.33
6.57
98
263
million by
2025
9.15
6.85
6.75
China domestic
university places
Current enrolments
165
*
Gaokao students
Enrolment growth
•
2010
2011
2012
Chinese
university
entrance exam
International education market share (%)
8.2
International student
enrolments (m)
16.5
USA
UK
2.1
2.4
2.6
2.8
3.0
3.1
3.2
3.5
3.7
4.1
4.3
47.2
GER
2011
13.0
France
Australia
6.3
6.2
Canada
ROW
4.7 6.1
Navitas Limited Citi Results Presentation – 31 December 2013 - ASK:NVT
Navitas FY14 Interim Australian Growth Conference 21 May 2013 ASX:NVT
Source: UNESCO Institute of Statistics, OECD Education at a Glance 2013, ICEF
22

23. Section title
to go here
Navitas Limited Citi Results Presentation – 31 December 2013 - ASK:NVT
Navitas FY14 Interim Australian Growth Conference 21 May 2013 ASX:NVT
23

24. Corporate snapshot
Corporate snapshot
375.4m
Shares on issue
$2.41b
Market Capitalisation
ASX100
$6.43
Share Price
52 wk range
NVT
$4.60 - $6.47
31 December 2013
Annualised dividend 19.5cps
Navitas Limited Citi Results Presentation – 31 December 2013 - ASK:NVT
Navitas FY14 Interim Australian Growth Conference 21 May 2013 ASX:NVT
24

25. Detailed P&L – 5 years
Detailed H1 P&L – 5 years
Navitas Ltd
$000s
PCP Change
H1 FY10
H1 FY11
H1 FY12
H1 FY13
H1 FY14
$000s
Index
CAGR*
Operating Revenue
University Programs
174,681
193,388
190,657
203,506
243,208
39,702
120%
9%
-
-
57,063
55,594
68,130
12,536
123%
n/a
93,811
1,126
95,215
2,095
92,084
1,863
94,389
1,350
108,070
1,149
13,681
(201)
114%
85%
4%
1%
269,618
(226,220)
290,698
(242,321)
341,667
(284,530)
354,839
(294,965)
420,557
(357,346)
65,718
(62,381)
119%
121%
12%
12%
EBITDA
Depreciation
43,398
(3,302)
48,377
(3,825)
57,137
(6,233)
59,874
(7,039)
63,211
(9,634)
3,337
(2,595)
106%
137%
10%
31%
EBITA
Amortisation
40,096
(488)
44,552
(2,603)
50,904
(488)
52,835
(488)
53,577
(375)
742
113
101%
77%
8%
-6%
EBIT
Net Interest (paid)/received
39,608
441
41,949
390
50,416
(4,085)
52,347
(3,802)
53,202
(3,509)
855
293
102%
92%
8%
n/a
40,049
(12,807)
42,339
(10,122)
46,331
(10,938)
48,545
(13,242)
49,693
(13,602)
1,148
(360)
102%
103%
6%
2%
NPAT
Outside equity interest
27,242
272
32,217
355
35,393
(33)
35,303
(233)
36,091
(11)
788
222
102%
5%
7%
n/a
NPAT attributable to members
27,514
32,572
35,360
35,070
36,080
1,010
103%
7%
SAE
PEP
C orporate & consolidation items
Total operating revenue
Expenses
Net profit before tax
Income tax
* Cumulative Annual Growth Rate from H1 FY10 to H1 FY14
Navitas Limited Citi Results Presentation – 31 December 2013 - ASK:NVT
Navitas FY14 Interim Australian Growth Conference 21 May 2013 ASX:NVT
25