CURRO HOLDINGS LTD

JSE SHOWCASE

SEPT 2011

1

2

Users are advised that to the extent that any statement in this presentation constitutes a

profit forecast, same has not been reviewed nor reported on by the company’s auditors.

DISCLAIMER

3

CURRO IS THE MARKET LEADER IN THE PROVISION OF AFFORDABLE,

QUALITY PRIVATE SCHOOL EDUCATION IN SOUTH AFRICA

4WHY DID WE LIST?

• Scalable business model

• Preparing for growth - Expansion and re-

gearing of balance sheet

• Credibility/sustainability

• Debt financiers

• Clients

5CURRO’S PROFILE

• 13 year operating history

• 12 Campuses across SA• Durbanville, Langebaan, Pta (x3), Jhb (3), Witbank, Polokwane,

Hermanus, Mossel Bay.

• Growing company in a growing sector

• Non-cyclical business

• Shareholder of reference in PSG (63%)

• Operationally profitable

6SCHOOL EDUCATION IN SOUTH AFRICA

• Government schools are overcrowded

• Ex-model C schools are good, but increasingly

under pressure

• No new schools built in affluent areas

• Elite and expensive private schools

• Smaller Private schools with limited facilities and

expansion potential

• Curro

7SCHOOL MARKET SIZE AND POTENTIAL

2.7

3.2

15.0

SA: Population of Age 0-19 (m)

LSM 9-10 LSM 7-8 Other

Predominant private school market

Other potential private school market

NetherlandsAustralia

IndiaGlobal average

USAUnited Kingdom

South Africa

0% 10% 20% 30% 40% 50% 60% 70% 80%

72%30%

17%13%

11%5%

4% Private school learners(% Private school)

South Africa Learners

Public Schools: 11 900 000

Private Schools:

455 000

8THE CURRO MODEL

• English or Parallel medium/Dual medium

• Small Classes (<20 per class, max 25)

• Disciplined environment, Christian Ethos

• Balance between academic, sport & cultural activities

• Curro Centre for Educational Excellence (“CCEE”):

External benchmarking and quality assurance

• Emphasis on Computer Technology

• Personal developmental plan

9CURRO LEARNER NUMBERS

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 -

2,000

4,000

6,000

8,000

10,000

12,000

28 145 310 400 450 575 751 775 910

1,107

1,642 2,059

3,088

5,410

7,457

9,594

Number of schools and learners

12

7

43

21

14

17Estimate

CURRO CAMPUSES

10

11

12

13

14CURRENT PROJECTS / FUTURE VENTURESMajor developments at existing campusesNew campus at Nelspruit 2011New building projects 2012

• Port Elizabeth• Krugersdorp• Heidelberg

Beyond 2012• Cape Town (2 sites)• KZN (2 Sites)• Johannesburg (3 sites)• Centurion• Lepalale/Ellisras (Limpopo)

15

FINANCIALS

16

INCOME STATEMENT

1H10 1H11 FY2010R'000 R'000 R'000

Revenue 36 527 79 271 74 028EBITDA 6 347 5 659 12 800Depreciation and amortisation (1 177) (3 407) (3 014)Earnings before interest and tax 5 170 2 252 9 786Net interest expense (2 424) (13 226) (5 106)Profit before taxation 2 746 (10 974) 4 680Taxation (391) 3 278 553Total comprehensive (loss) / profit for the period 2 355 (7 696) 5 233

Earnings per share (basic and diluted) (cents) 2.9 (9.6) 6.5

• Rights issue - Interest will not repeat in 2nd half.

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EBITDA PERSPECTIVE

1H10 1H11   YOY Change

2yr CAGR

R'000 R'000      EBITDA 6 347 5 659 (11%) 17%

Schools > 2years 8 125 9 575 18% 25%

Schools <2 years 907 (522)    

Aurora - 4 237    

Head office (2 684) (7 632) 184% 100%

• Fixed costs component of new schools has negatively affected EBITDA

• Margins are proven for schools >2 years

EBITDA Margin 17.4% 7.1%

Schools > 2years 28.4% 28.7%

Schools <2 years 11.0% (2.3%)

Aurora 18.4%

18

BALANCE SHEETAudited

31 December 2010

  Unaudited30 June 2011

  Unaudited30 June 2011

Pro forma

ASSETS

Non-current assets 236 889 410 291 410 291

Current assets 6 422 12 304 104 055

Trade and other receivables 2 285 6 772 6 772

Cash and cash equivalents 4 137 5 532 97 283

Total assets 243 311   422 595 514 346

EQUITY AND LIABILITIES

Equity 57 686 49 842 372 242

Non-current liabilities 99 787 109 001 109 001

Current liabilities 85 838 263 752 37 103

Intercompany loan 54 440 226 649

Other financial liabilities 10 861 10 197 10 197

Trade and other payables 17 251 27 103 27 103

Bank overdrafts 3 223 - -

Total equity and liabilities 243 311   422 595 518 346

Net asset value per share (cents) 71.7 61.8 230.9

19SUMMARY – PRE LISTING STATEMENT

31 DECEMBER 2009 2010 2011 2012 2013All amounts Rm Actual Actual Forecast Forecast Forecast

Audited Audited Unaudited Unaudited Unaudited

Number of schools 3 5 12 14 17

Number of learners 2 000 3 000 5 500 7 500 9 500

INCOME STATEMENT

Gross Income 49 76 162 222 300

EBITDA 9 13 16 37 59

PAT 2 5 1 14 16

Weighted average shares in issue 80 80 114 161 161.2

Headline Earnings Per Share 2.3 6.5 0.7 8.7 10.0

SUMMARY

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21PROSPECTS

• On track in terms of organic growth

• 2 to 4 schools per year

• Enrolment numbers are looking

promising for 2012

• Acquisitive growth – a number of targets

22BUSINESS OBJECTIVE

2020

40 SCHOOLS

45 000 LEARNERS

R450m PAT