Annual Report 2019

2019 ANNUAL REPORT UOW GLOBAL ENTERPRISES VISION CONTENTS UOW Global Enterprises (UOWGE) is a subsidiary To be a dynamic global education group of the University of Wollongong (UOW). UOWGE provider delivering transformative LOOKING BACK ON A YEAR OF GREAT SUCCESS 4 owns and operates the University of Wollongong in student experiences CHAIRMAN AND GROUP CEO’S STATEMENT 6 Dubai (UOWD), UOW College Australia (UOWCA), UOW College Hong Kong (UOWCHK) and UOW Malaysia KDU FINANCIAL RESULTS 8 (UOWMKDU). Employing more than 1,500 staff globally, MISSION A NEW CORPORATE STRUCTURE TO SUPPORT GROWTH 9 these institutions offer more than 200 programs Delivering on UOW’s ambition to be a SUPPORTING GLOBAL STAFF SUCCESS 10 including higher education, vocational training, English global network through development language and professional development programs to and operation of offshore campuses CONNECTING STUDENTS FROM ACROSS THE GLOBE 13 nearly 18,000 students annually. and pathways to university STRENGTHENING GLOBAL PROGRAM OFFERINGS 14 DELIVERING HIGH-QUALITY LEARNING 16 UOW MALAYSIA KDU 18 UOW COLLEGE AUSTRALIA 20 UOW COLLEGE HONG KONG 21 UOW IN DUBAI 22 BOARD OF DIRECTORS 24 UOWGE GOVERNANCE STRUCTURE 26 UOWCA General Manager Julie Renwick welcomes HIGHLIGHTS OF 2019 attendees at the College’s March graduation ceremony. Ms Renwick retired in 2019, after 24 years of service. $169.8m $39.6m 17,676 239 8,260 Total revenue 183% Net profit before tax Students Programs Graduates growth over five years 204% growth over five years UOW Vice-Chancellor Professor Paul Wellings (right) presents Australia’s $286.6m $10m 1,564 165 0.62 Minister for Education The Hon Dan Tehan MP with a plaque at November’s inauguration ceremony in Kuala Lumpur where UOWGE Net assets 9% growth Dividend to UOW Staff Staff Awards Lost time injury formally welcomed UOW Malaysia KDU to the Group’s global network. over prior year $48.6m paid over frequency rate last five years 2 3 LOOKING BACK ON A YEAR OF GREAT SUCCESS UOW graduate at the November UOW Malaysia Chair Mr Noel Cornish Australia Employee of graduation ceremony in Dubai delivers his speech at the UOW Malaysia the Year Award winner, KDU inauguration ceremony UOWGE Manager Achieved record Graduated 8,260 students UOW in Dubai Regulatory Affairs and Governance Madeleine financial performance across UOW in Dubai, accredited by CAA as Dimitroulis for the Group UOW College Australia, first blended learning UOW College Hong Kong higher education Recognised for the and UOW Malaysia KDU institution in the 18th consecutive year region Inaugurated UOW as an Employer of Malaysia KDU into Choice for Gender Attained record UOW’s global network Equality in the enrolment numbers Workplace Gender Hit an all-time record for UOW College Equality Agency in for new international Australia’s Academic Australia, and achieved academic student Program 0% gender pay gap enrolments at UOW Achieved CAP 320 for UOW Global College Australia, with degree granting status Enterprises a 60% year-on-year by UOW College Hong growth Won AustCham Kong Westpac Australia- Achieved 95% student China Business Award retention rate at UOW Granted successful for consumer services College Hong Kong five-year re-licensure at UOW in Dubai Maintained lost time Achieved 35% increase injury frequency rate of in new student Maintained market 0.62 for the Group enrolments at UOW in share of the associate Dubai degree sector at UOW Introduced 18 new College Hong Kong programs across UOW Reaccreditation of all College Hong Kong, UOW College Hong Launched seven new UOW in Dubai and Kong associate degree programs at UOW UOW College Australia programs Malaysia KDU 4 5 CHAIRMAN AND GROUP CEO’S STATEMENT 2019 saw UOWGE achieve record financial results for the Group and deliver exceptional academic outcomes in line with the organisation’s vision of being a dynamic global education provider delivering transformative student experiences. Thanks to our talented staff of more than 1,500 people, we successfully taught nearly 18,000 students and celebrated more than 8,200 graduates. UOWGE’s corporate structure underwent a significant transformation during 2019 with the aim of supporting our growth ambitions. A new parent company was established in addition to a new Dubai operating company and a Malaysian holding company to enable the acquisition of KDU’s three operating companies in Malaysia. ROBUST The Group remained agile throughout the year as all institutions continued to develop student-centred FINANCIAL educational experiences designed in response to the sector’s ever-changing need to deliver personalised education with a focus on blended learning. GROWTH With the aim of growing global student mobility, each institution delivered and students benefited from international learning opportunities in destinations across AND Asia, Europe, North America and Oceania. When UOW Malaysia KDU joined the Group, it brought strong disciplines in hospitality, tourism, culinary arts, game development and digital media. UOW College Australia achieved record enrolments, with 405 new international academic OPERATIONAL students; this marks a 60% growth in international new academic student enrolments from last year. 2019 saw UOW College Hong Kong become officially registered as an independent Post-Secondary College and successfully achieve reaccreditation of all 33 associate degree programs. UOW in Dubai implemented a transformation plan that resulted in a 35% increase in EXCELLENCE new student enrolments and major revisions to current programs. In anticipation of further growth, UOWD looks forward to commencing operation at a new state-of-the-art campus in 2020, while UOWMKDU will welcome a new technology-focused campus in Batu Kawan. This year, we bid farewell to long-time staff member UOWCA General Manager Julie Renwick, who retired after 24 years of service. We said goodbye to dedicated board member Dr Stewart Routledge who honoured us with his valued service for 12 years. We celebrated successes like winning the AustCham Westpac Australia China business award for consumer services and we recognised esteemed UOW colleague Chancellor Jillian Broadbent with a University of Wollongong in Dubai Fellowship for her outstanding global leadership. Of course, these milestones and achievements would not be possible without our dedicated and talented team of academic and professional colleagues from across the globe. In particular, we would like to recognise the exceptional team at UOW College Hong Kong for continuing to deliver high quality outcomes despite protests in the region. We would also like to extend our gratitude and thanks to the Group’s global Executive Leadership team members for their ongoing drive and commitment to deliver outstanding results. We are also led by a robust and forward-thinking Board, and we thank each of the Directors for their outstanding contributions and expertise. Finally, the Group’s success would not have occurred without the unwavering support offered by the Council, Vice-Chancellor and Executives of the University of Wollongong. For this, we thank you. PETER ROBSON MARISA MASTROIANNI CHAIR MANAGING DIRECTOR & GROUP CEO UOWGE was the proud winner of the 2019 AustCham Westpac Australia-China Business Award for consumer services. 6 7 FINANCIAL A NEW CORPORATE STRUCTURE RESULTS TO SUPPORT GROWTH 2019 saw the UOW Global Enterprises Group continue six years of financial growth and performance. In 2019, the Group delivered The corporate structure of the UOWGE Group changed significantly in 2019. A new parent company was established in addition a record profit before tax of $39.6m, this being an increase of $13m on the 2018 financial performance. Total revenue for the to a new Dubai operating company and a Malaysian holding company to enable the acquisition of three KDU operating Group was $169.8m, another record result, which grew $34m compared to 2018. Capping six years of growth, these results were companies in Malaysia. UOWGE’s very capable executive team realigned to support the strengthened structure. delivered through the execution of long-term strategies where investment was made in international educational institutions, which provided not only value growth opportunities, but diversification of revenue and assets as well. The business grew over the course of 2019 with the acquisition of the KDU entities in Malaysia which contributed to the financial scale of the Group. More so, UOWGE’s portfolio of investments both in Australia and in Hong Kong provided strong returns that contributed to the Group’s financial performance and position. INSTITUTIONAL LEADERS The financial position of the Group remains strong with the value of net assets increasing to $287m, a growth of $23m since 2018. UOWGE’s balance sheet grew from the acquisition of the Malaysian assets partially funded through a loan facility from UOW, as well as the introduction of the new lease accounting standard IFRS16. The Group continued to invest in the development of campuses with capital expenditure of $10m, primarily in Dubai and the remainder in Hong Kong. Similar to the prior year, in May 2019 a gross dividend of $10m was paid to shareholder UOW. This brings the total gross dividends paid to UOW over the past five years to $49m. 169.8 286.6 141.3 135.8 263.5 126.7 221.5 228.7 205.7 100.3 GENERAL MANAGER PRESIDENT UNIVERSITY OF UOWGE CEO ASIA CHIEF OF STAFF UOW COLLEGE AUSTRALIA WOLLONGONG IN DUBAI JENNIFER NG GLOK-HONG UOW COLLEGE HONG KONG FELIX LANCELEY PROF MOHAMED SALEM VANESSA BOURNE 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 CORPORATE LEADERS TOTAL REVENUE ($M) NET ASSETS ($M) 39.6 36.8 26.5 22.7 20.8 10.0 10.0 10.0 10.0 8.6 CFO / EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR EXECUTIVE DIRECTOR CORPORATE SERVICES BUSINESS TRANSFORMATION PEOPLE AND CULTURE COMMERCIAL AND LEGAL GEOFF DRUMMOND KATH MCCOLLIM JULIE STUART PETER JANU 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 PROFIT BEFORE TAX ($M) GROSS DIVIDEND TO UOW ($M) 8 9 SUPPORTING GLOBAL STAFF SUCCESS 87% UOWGE corporate staff survey Providing a caring and rewarding workplace for staff across all global locations drives everything that UOWGE does.

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