Learning Technologies Group plc

Investor Presentation October 2015

Jonathan Satchell Neil Elton Chief Executive Group Finance Director

1 Introducing LTG

. Learning Technologies Group plc was created and listed in 2013 to provide a comprehensive and integrated range of e-learning services and technologies to corporate and government clients

o LTG is a publicly quoted company focused on consolidating the high growth e-learning sector

o Global footprint including Europe, US and Latin America

. LTG is a dynamic and steadily growing group of specialist learning technology businesses

o LTG's portfolio includes:

o LEO, a pioneering learning technologies company

o gomo learning, LTG owned IP multi-device authoring tool

o Preloaded, a games with purpose company

o Eukleia, a specialist provider of GRC services to the financial services sector

o Our portfolio of brands are well recognised across the e learning industry

o Recognised by industry bodies with numerous awards

• LTG Mission

o Organic growth driven by market share gains and sector growth

o Significant expansion by acquisition of complementary businesses, through the judicious use of our research, and our industry-specific expertise

o Ambition to build a specialist Group with revenues in excess of £50m

2 Exposure to a structural high growth market

Positive market trend Rated a Strategic Leader by elearnity†

. E-learning expenditure is projected to grow at 23% per annum to $255.5bn from 2012 to 2017*

o Educational corporate market CAGR of 8.0%*

. 41.7% of G500 companies already using technology adapted training*

. Distribution across apps, mobile devices (phone and tablet), and different platforms and portals

. LEO to take advantage of growth in technology, online content and social media that supports learning

January 2015

* IBIS Report, January 2013 † Elearnity survey, January 2015 3 Following the merger of the two leaders in learning technologies and Investment in business to meet the strategic requirements of the e-learning, Epic and LINE, LEO was created in July 2014 and benefits Group from more than 30 years of industry experience . Restructuring of the business in September 2015 to emphasise; . LINE brought with it strategic accounts and a strong sector focus in defence and security, automotive and corporate. Epic . Account management complemented this with a strong focus on professional services, . Strategic and consultancy relationships finance, public sector, retail and travel & leisure . Learning and technology expertise . LEO aims to move learning to the of business strategy. By making learning a boardroom issue, LEO will secure bigger, . Emphasis on cross-selling opportunities between businesses more complex projects by working with global organisations on a more strategic level . Recruitment of Head of Sales in H1 2015

. High profile contract with central government department in . Continuing investment in ERP, finance and HR systems and partnership with KPMG won in Q1 2015 procedures to improve management information and create a scalable platform for growth . Success in renewing contracts in competitive bids (e.g. CSL) and deepening relationships at the strategic level (e.g. JLR and Sky)

. Pipeline of large contracts (ranging from £1m to £5m+) is at its highest ever

Industry awards

Gold Winner Silver Winner Bronze Winner Silver Winner 2014 E-Learning Age Awards 2014 E-Learning Age Awards 2014 Training Journal Awards 2013 E-Learning Age Awards ‘Excellence in the production of ‘Best e-learning project – UK private ‘Best use of technology’ ‘Excellence in the production learning content – third sector’ sector’ of learning content – private sector’

Silver Winner Bronze Winner Silver Winner 2014 E-Learning Age Awards 2014 Brandon Hall Group 2013 E-Learning Age Awards Runner up ‘Excellence in the production ‘Excellence Award in Learning and ‘Best use of social media for learning’ 2013 IELA Awards ‘Mobile learning – business division’ of learning content – private sector’ Development’

4 1,200+ hours of blended content

5 Global Induction underway

Business case: 11,000 new employees in next 3 years

6 US and Brazil

LEO opened its first North American office in New York in November LEO Brazil established as 50:50 JV in 2011 to access the emerging 2012. South American e-learning market

. Established its New York office in late 2012 to better deliver its . Office based in Rio de Janeiro services to customers in the US, the world’s largest training and education market. Also gained access to those North American . LEO Brazil operates through a local partner led by Richard companies and public bodies that only procure from within the Vasconcelos (Chief Executive) local market

. Profitability reached within 13 months o The Vasconcelos family previously established one of the largest private universities in Brazil, Estacio Universities in 1970s . Appointed e-learning entrepreneur Bill West as Senior VP, North and bring a wealth of local industry knowledge America in March 2015

. After an exceptional 2014, a slow start to 2015, but sales pipeline . Already an established track record of winning substantial and order book is increasing contracts, including e-learning for the 2016 Olympics

. Significant opportunity to increase market share . Initial focus on improving quality to UK standards has resulted in better margins and improved client feedback

. Focus on increasing margins while maintaining quality levels

. H1 2015 sales ahead of target

. First profitable month in July 2015

7 Overview

. Founded in 2000, Preloaded has a leading reputation as a BAFTA-winning applied games studio

. Partners with organisations across the education, entertainment, publishing, advertising and broadcasting sectors with clients including Amplify (a subsidiary of News Corp), Disney, Science Museum Group, Wellcome Trust and the BBC

. High profile strategic contract won in H1 2015 to create playful learning games at the centre of a global digital marketing campaign for an international restaurant company; work commenced on next phase which will run into 2016

. Successful project completed for Science Museum has been followed by award of educational project for British Museum

. Success in cross-selling with other LTG companies – for example, projects won in 2015 with British Airways (LEO) and SAP (LEO US)

. Investment in business – new studio in Finsbury Park, new project management system implemented and increased recruitment of staff to meet demand

Awards and key game statistics

Story Cards, Amplify Crafty Cut, Amplify Disney Fairies: Axon, Wellcome Collection Wondermind The End, Serious Play 2014 Serious Play 2014 Lost and Found 1 million+ gameplays Tate Interactive BIMA Education, Silver (2014) Education, Silver (2014) #1 Kids Game in launch week Media Awards Game (2011) iTunes store 3 million gameplays Kids - Best in Class (2012) (December 2012) in first month

8 gomo provides two products that enable you to create, host, update and track multi-device learning, anywhere.

Only end-to-end self-authoring solution on the market offering such fast, simple content creation and seamless hosting and analytics. gomo 3.0 launched in April 2015 and has seen significant growth in the UK and particularly the US.

Delivers a full end-to-end solution for content creation, distribution and analytics.

. Ever-growing client base includes Nike, Burberry, Xerox, Santander, United Healthcare, Boots, Alfred Dunhill, JCB, JP Morgan, NHS and more

. Allows organisations to derive in depth insights from their e-learning programmes for the first time, allowing them to tailor and improve their learning outcomes.

. Will drive new sales from organisations looking for an alternative to an LMS.

. Listed by world-recognised e-learning industry guru Craig Weiss as a top 5 authoring tool in the world

. The newly launched hosting product creates the potential to increase revenue per customer and attract new subscribers by offering a complete solution

. High renewal rates of licences since April 2015 and encouraging migration to Enterprise licences

. Increasing cross-referral of work to LEO

Industry awards Silver Winner 2014 Brandon Hall Awards 'Best Advance in Content Authoring Technology'

9 Eukleia Training Limited (‘Eukleia’) - specialist in Governance, Risk and Compliance (‘GRC’) Training 2% Expect decline . Strong growth drivers for the GRC market place. Three quarters of 600 senior compliance practitioners surveyed by in 2014/15 expected the focus on managing GRC to increase in the next 12 months. Only 2% expected it to decline. (Source Reuters: Cost of Compliance 2015)

. Eukleia can meet a broad range of GRC Training needs including . Bespoke E-Learning . Generic E-Learning . Instructor led training . Translation of GRC learning content 75% . Learning management systems Expect increase

• Provides GRC training to financial services sectors including investment banking, retail banking, fund management/private equity, commodity trading, exchanges and regulators

. Track record of new product development to meet changing regulatory environment

. Blue chip client base including HSBC, Barclays, RBS, Lloyds Bank, Deutsche, Citi all in top 10 customers during 2015

. Eukleia is highly respected by its customer base as a leader in the field of GRC

10 Consolidated statement of comprehensive income

6 mths to 30 June 2015 YE to 31 Dec 2014 6 mths to 30 June 2014 £’000 (unaudited) (audited) (unaudited) Revenue 8,390 14,920 6,504 Operating Expenses (8,032) (14,433) (6,382) Share of Losses of Joint Venture (41) (160) (22) Operating profit 317 327 100

Adjusted EBITDA 1,287 2,065 874 Depreciation (90) (171) (69) Amortisation of intangibles (480) (659) (233) Share based payment costs (400) (583) (355) Integration costs - (325) (117) Operating profit 317 327 100 Costs of acquisition - (296) (294) Finance expense (115) (162) (68) Interest receivable 7 4 1

Profit / (loss) before taxation 209 (127) (261)

Taxation 144 (35) (42)

Profit / (loss) for the period 353 (162) (303)

11 Consolidated statement of financial position

30 June 2015 31 Dec 2014 30 June 2014 £’000 (unaudited) (audited) (unaudited) ASSETS NON-CURRENT ASSETS Property. Plant and equipment 331 339 382 Intangible assets 11,025 11,364 12,184 Deferred tax 825 618 - Investments - 16 - 12,181 12,337 12,566

CURRENT ASSETS Trade receivables 3,201 2,762 2,535 Other receivables, deposits and prepayments 470 337 427 Amounts recoverable on contracts 2,469 1,806 1,908 Cash and bank balances 2,958 4,358 3,815 9,098 9,263 8,635

TOTAL ASSETS 21,279 21,600 21,251

CURRENT LIABILITIES Trade and other payables 5,560 4,832 5,422 Corporation tax 226 352 115 Provisions - - 30 5,786 5,184 5,567

NON CURRENT LIABILITIES Deferred tax 360 446 398 Other long term liabilities - 1,512 1,523 Provisions 30 49 - 390 2,007 1,921

TOTAL LIABILITIES 6,176 7,191 7,488

Total Equity Attributable to the Owners of the Parent 15,103 14,409 13,763

12 Consolidated Statement of Cash Flows

6 mths to 30 June 2015 YE to 31 Dec 2014 6 mths to 30 June 2014 £’000 (unaudited) (audited) (unaudited)

Profit /(loss) before taxation 209 (127) (261) Adjustments for: Share based payments 400 583 355 Amortisation and depreciation 570 830 302 Others 149 318 41 OPERATING CASH FLOWS BEFORE WORKING CHANGES 1,328 1,604 437 Net Working Capital changes (818) (668) (1,600) Interest received and income tax paid (120) (28) 23 NET CASH FLOWS FROM OPERATING ACTIVITIES 390 908 (1,140)

CASH FLOWS USED IN INVESTING ACTIVITIES Acquisition of subsidiaries net of cash acquired - (4,407) (3,836) Deferred consideration payments (1,337) - - Others (245) (500) (132) NET CASH FLOWS USED IN INVESTING ACTIVITIES (1,582) (4,907) (3,968)

Issue of share capital net of share issue costs 32 7,756 7,753 Dividends paid (248) (107) - Repayment of bank loans - (465) - NET CASH FLOWS FROM/(USED) IN FINANCING ACTIVITIES (216) 7,184 7,753

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS (1,408) 3,185 2,645 Exchange gains on cash 8 3 - CASH AND CASH EQUIVALENTS AT END OF THE YEAR 2,958 4,358 3,815

13 LTG strategy at a glance

Current Target Blended Learning Personalisation e-learning Learner data analytics Games and gamification Augmented reality Platforms and portals Measurement Virtual reality Social Learning Consulting Digital video search Induction, leadership & management, Performance management tools compliance, strategy, product training, Technical training, sector specific customer service learning & compliance Sales training, brand roll-outs Sector specific learning and compliance, specialist sales training.

Current Target Current Target Government Pharma/Health U.K. U.S. (strengthen) Automotive Energy U.S. (New York) Middle East (partner) Defence Aviation South America (Rio) Asia Pacific Finance Retail Europe (Switzerland) Europe (strengthen)

Partner programme: Open University Xerox KPMG Fujitsu SAID Business School General Dynamics Hewlett Packard Atkins

Acquisition target characteristics

1. Strong management: Where owner/founder and management team want to scale 2. New market access: ability for LTG to deliver current services in other regions 3. Complementary products/services: with a focus on non-discretionary spend and leading technologies 4. New business models: with focus on repeat revenues - content and software IP

14 Appendices

15 Highly experienced leadership team

Jonathan Satchell Neil Elton Piers Lea Dale Solomon Chief Executive Group Finance Director Chief Strategy Officer Chief Operating Officer

. Strong sales and entrepreneurial . Has a proven track record of working with . In 1989, founded LINE Communications . Before joining Epic in 2010 spent 12 years as background, having started his first business and successfully building up a number of fast Holdings Limited, which held a leading both an internal and external learning in 1992 selling subscriptions for Accountancy growing companies reputation in the e-learning marketplace as consultant TV, a JV of the Institute of Chartered a designer of fully-blended learning solutions Accountants in England and Wales and the BBC which created continued . Joins from Sagentia Group plc, a technology . Has extensive experience in learning design, professional development content for research and development company, . Has more than 30 years' experience in development and facilitation methodology, training programmes where he was Group Finance Director from distance learning and communications and analysing training needs and measuring 2010 to 2014 is an acknowledged expert and thought Return on Investment for global organisations leader in e-learning . Involved in the education and training industry ever since, acquiring EBC . Between 2007 and 2010, he was Finance . Also has considerable understanding of in 1997, which he helped to transform from a Director at Concateno plc, Europe’s largest . Joined the Board of LTG as Chief Strategy developing sales strategies and growing provider of training videos to a bespoke e- tester of drugs of abuse Officer to ensure the Group’s long-term sales teams and networks of reseller channels learning company. The Company was sold strategic future and has created a three- and agents to Futuremedia in 2006 year strategy for the creation of an end-to – . Prior to Concateno he was Finance Director end learning technologies agency at Mecom Group plc, an acquisitive AIM . Appointed to the Board following the . Responsible for the overall strategic listed European media group creation of LEO in 2014. Responsible for development of LTG with a particular overseeing all central support functions of focus on innovation and international the Group globally, including Sales, opportunities . Appointed to the Board of LTG in Marketing, Bid, IT & Facilities, Human November 2014. Resources, Quality, Special Projects and International Operations

16 Highly experienced leadership team (continued)

Andrew Brode Harry Hill Leslie-Ann Reed Non-executive Chairman Non-executive Deputy Chairman Non-executive Director

. Chief Executive of Wolters Kluwer (UK) Plc . Served as Chief Executive Officer of . A Chartered Accountant and financial between 1978 and 1990 Countrywide plc for 20 years until 2008. management expert, she has extensive During his tenure at Countrywide, it international experience in the media founded and subsequently sold Chesnara industry having served as Chief Financial . In 1990, led the management buyout of plc and Rightmove plc Officer of PolyGram Film Operations and also Eclipse Group, which was sold to Reed worked at Warner Communications and EMI Elsevier in 2000 . Also responsible for forming Countrywide Property Lawyers, which was established to . Appointed Chief Financial Officer of . In 1995, led the management buy-in take advantage of conveyancing referrals GoIndustry Dovebid plc in 2010 until July 2012 of AIM-listed RWS Group, Europe’s largest from within the estate agency chain when the business was sold to Liquidity technical translations group Services Inc

. Current directorships include Landwood . He acquired Epic together with Jonathan Property Group and Hunters and Clarke . Served as Chief Financial Officer of Metal Satchell in 2008 and has acted as non- Hillyer. He is also a trustee of Launch 22, a Bulletin plc and as an adviser to Marwyn executive Chairman since that time Shoreditch based charity seeking to help Investment Management young entrepreneurs.

. Also a non-executive director of a number . Joined the Board of LTG in 2014 and serves of private-equity backed media companies . Serves on the Remuneration Committee as the Chair of the Audit Committee of LTG

17 Disclaimer

This presentation has been compiled by Learning Technologies Group plc (the “Company”) and is being supplied to: () persons who have professional experience in matters relating to investments (being “investment professionals” within the meaning of Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “FPO”)) or (ii) persons falling within Article 49(2) (“high net worth companies, unincorporated associations etc.”) of the FPO or (iii) persons who are otherwise permitted by law to receive it (all such persons being “relevant persons”).

The presentation contains statements that are, or may be deemed forward-looking statements, which relate, inter alia, to the Company’s proposed strategy, plans and objectives. Such forward looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company (including but not limited to future market conditions, legislative and regulatory changes, the actions of governmental regulators and changes in the political, social or economic framework in which the Company operates) that could cause the actual performance or achievements on the Company to be materially different from such forward-looking statements. No warranty or representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Accordingly, you should not rely on any forward-looking and the Company accepts no obligation to disseminate any updates or revisions to such forward-looking statements whether as a result of new information, future events or results or otherwise.

This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this presentation does not constitute a recommendation by the Company or any of its respective directors, officers, employees, agents or advisors in connection with any purchase of or subscription for securities of the Company.

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