Navitas Limited 2010 Annual Report 2010 Limited Navitas Navitas Limited 2010 Annual Report For personal use only Contents Who are We? 4 Highlights and Achievements 6 Board of Directors 8 Group Leadership Team 10 Chairman’s Letter 14 Chief Executive Officer’s Review of Operations 16 Divisional Review of Operations 22 Corporate Governance Statement 38 Financial Statements 50 Corporate Information 122 Additional Information 123 Investor Information 125 Glossary 126 Business Contact Details 128 The Annual General Meeting of Navitas Limited will be For personal use only held at the Jarrah Room, Level 2, Kirin Centre, 15 Ogilvie Road, Mount Pleasant, Western Australia 6153 on Tuesday 23 November 2010 at 11am (Perth time). Vision Navitas is universally recognised as the most trusted global learning organisation in the world. Mission Navitas is passionate about creating opportunities through lifelong learning and being a global leader in delivering better learning solutions. Values We have conviction to our purpose and potential. We demonstrate drive by achieving and advancing together. We are adventurous in mind and spirit. We demonstrate rigour in enhancing our professional reputation and credibility. We are genuine in the way we behave and deliver. We show respect by celebrating, valuing and caring for people and the environment. Core Business For personal use only Anticipating the world’s learning needs, creating and delivering a comprehensive range of learning and exchanges and equipping people with valuable qualifications, essential skills and experiences. 20 19 20 19 14 13 17 15 41 46 9 10 16 18 21 22 23 14 13 17 15 41 46 24 9 10 16 56 18 42 21 22 23 52 50 39 24 45 55 43 56 42 40 48 52 44 50 39 47 45 55 43 40 48 53 44 47 57 53 54 12 8 32 57 5411 51 12 8 32 11 51 7 49 7 49 31 31 26 26 1 25 35 1 25 35 36 30 6 3 36 30 6 3 2 27 33 238 27 33 38 Who are We? 37 29 5 37 29 5 4 28 34 4 28 34 Navitas is a diversified global education provider that offers an extensive range of educational services for students and professionals including university programs, language training, workforce education and student recruitment. Navitas University Programs Navitas English Navitas Student Recruitment Navitas Regional Marketing Offices Education for Navitas University Programs 1. Brisbane 13. CambridgeNavitas English 25. BrisbaneNavitas Student Recruitment38. Sydney Navitas Regional42. Beijing Marketing Offices 2. Sydney 14. Hertfordshire 26. Cairns 39. China 43. Shanghai 1. Brisbane 13. Cambridge 25. Brisbane 38. Sydney 42. Beijing 3. Newcastle 15. London 27. Sydney, Manly and Bondi (Shanghai, Guangzhou, 44. Guangzhou your world 2. Sydney 14. Hertfordshire4. Melbourne 16. Portsmouth26. Cairns 28. Melbourne39. China Nanjing, Tianjin, Changsha, 43. Shanghai 45. Nanjing 3. Newcastle 15. London 5. Adelaide 17. Swansea27. Sydney, Manly and Bondi29. Adelaide (Shanghai, Guangzhou,Chongqing, Wuhan, Hefei, Xian, 44. Guangzhou46. London The Navitas Group is a world leader in the development4. and Melbourne 16. Portsmouth6. Perth 18. Plymouth28. Melbourne 30. Perth Nanjing, Tianjin, Changsha,Guiyang, Chengdu, Jinan, Qingdao,45. Nanjing 47. Hong Kong provision of educational services and learning solutions.5. TheAdelaide 17. Swansea 7. Jakarta* 19. Edinburgh29. Adelaide 31. Darwin Chongqing, Wuhan, Hefei,Dalian, Xian, Hangzhou, Zhengshou, 46. London 48. New Delhi For personal use only Navitas Group excels in understanding the world’s learning6. Perth 18. Plymouth 8. Singapore 20. Aberdeen30. Perth 32. Singapore Guiyang, Chengdu, Jinan,Xinjiang, Qingdao, Changchun and Beijing)47. Hong Kong49. Jakarta (2011) 9. Vancouver 40. India 50. Tokyo needs and continually adapts to meet the needs of the7. changing Jakart a* 21. Dartmouth31. Darwin Dalian, Hangzhou, Zhengshou, 48. New Delhi 19. Edinburgh 10. Winnipeg 22. Lowell (New Delhi, Ahmadabad, Bangalore, 51. Nairobi global environment. Each year, thousands of students choose to 8. Singapore 20. Aberdeen 11. Nairobi 23. Boston32. Singapore Navitas WorkforceXinjiang, Changchun andChennai, Beijing) Chandigarh, Coimbatore,49. Jakarta (2011)52. Seoul study with Navitas as their preferred option for learning9. English, Vancouver 21. Dartmouth 12. Colombo 24. Bowling Green, 33. Sydney 40. India Gurgaon, Hyderabad, Kochi, 50. Tokyo 53. Manizales accessing higher education studies, preparing for their10. future Winnipeg 22. Lowell Kentucky 34. Melbourne (New Delhi, Ahmadabad,Mumbai, Bangalore, Indore, Pune and Vizag)51. Nairobi 54. Lagos (2011) careers and broadening their opportunities in life. 11. Nairobi 23. Boston Navitas Workforce 35. Brisbane Chennai, Chandigarh,41. Coimbatore,London 52. Seoul 55. Lahore 12. Colombo 24. Bowling Green,*via a co-operative affiliation and33. services Sydney 36. Perth Gurgaon, Hyderabad, Kochi, 53. Manizales56. Istanbul agreement with MIBT 37. Adelaide 57. Ho Chi Minh City Kentucky 34. Melbourne Mumbai, Indore, Pune and Vizag) 54. Lagos (2011) 35. Brisbane 41. London 55. Lahore *via a co-operative affiliation and services 36. Perth 56. Istanbul agreement with MIBT 37. Adelaide 57. Ho Chi Minh City 4 Navitas Limited Annual Report 2010 20 20 19 19 20 19 14 13 14 13 17 17 15 41 46 15 41 46 9 9 10 10 16 16 18 18 21 22 23 21 22 23 14 13 17 15 41 46 24 24 9 10 16 56 56 18 42 42 21 22 23 52 52 50 50 39 39 24 45 45 55 55 43 43 56 42 40 48 40 48 52 44 44 50 39 47 47 45 55 43 40 48 53 53 44 47 57 57 53 54 54 12 12 8 32 8 32 57 11 51 11 51 54 12 8 32 7 49 11 517 49 31 31 7 49 31 26 26 26 1 25 35 1 25 35 1 25 35 36 30 6 36 30 6 3 3 36 30 6 3 2 27 33 382 27 33 38 2 27 33 38 37 29 5 37 29 5 37 29 5 4 28 34 4 28 34 4 28 34 Navitas University Programs Navitas English Navitas Student Recruitment Navitas Regional Marketing Offices NavitasNavitas University University Programs Programs NavitasNavitas English1. Brisbane English 13. CambridgeNavitasNavitas Student Student Recruitment25. BrisbaneRecruitment Navitas38. SydneyNavitas Regional Regional Marketing Marketing Offices Offices42. Beijing 2. Sydney 14. Hertfordshire 26. Cairns 39. China 43. Shanghai 1. Brisbane1. Brisbane13. Cambridge13. Cambridge 25. Brisbane25. Brisbane 38. Sydney38. Sydney 42. Beijing42. Beijing 3. Newcastle 15. London 27. Sydney, Manly and Bondi (Shanghai, Guangzhou, 44. Guangzhou 2. Sydney2. Sydney 14. Hertfordshire14. Hertfordshire 26. Cairns26.4. Cairns Melbourne 16. Portsmouth39. China39. China 28. Melbourne 43. ShanghaiNanjing,43. ShanghaiTianjin, Changsha, 45. Nanjing 3. Newcastle3. Newcastle15. London15. London 27. Sydney,27. 5.Sydney, ManlyAdelaide and Manly Bondi and17. Bondi Swansea (Shanghai,(Shanghai, Guangzhou,29. Guangzhou, Adelaide 44. GuangzhouChongqing,44. Guangzhou Wuhan, Hefei, Xian, 46. London 4. Melbourne4. Melbourne16. Portsmouth16. Portsmouth 28. Melbourne28.6. Melbourne Perth 18. Plymouth Nanjing,Nanjing, Tianjin, Tianjin,Changsha,30. Perth Changsha, 45. NanjingGuiyang,45. Nanjing Chengdu, Jinan, Qingdao, 47. Hong Kong 5. Adelaide5. Adelaide17. Swansea17. Swansea 29. Adelaide29. 7. Adelaide Jakarta* 19. Edinburgh Chongqing,Chongqing, Wuhan,31. Wuhan,Hefei, Darwin Xian, Hefei, Xian, 46. LondonDalian,46. Hangzhou, London Zhengshou, 48. New Delhi 6. Perth6. Perth 18. Plymouth18. Plymouth 30. Perth30. 8. Perth Singapore 20. Aberdeen Guiyang,For personal use only Guiyang, Chengdu, Chengdu,32. Jinan, Singapore Qingdao, Jinan, Qingdao, 47. HongXinjiang,47. KongHong Changchun Kong and Beijing) 49. Jakarta (2011) 9. Vancouver 40. India 50. Tokyo 7. Jakart7. a*Jakarta* 31. Darwin31. Darwin 21. Dartmouth Dalian, Hangzhou,Dalian, Hangzhou, Zhengshou, Zhengshou, 48. New48. Delhi New Delhi 19. Edinburgh19. Edinburgh 10. Winnipeg 22. Lowell (New Delhi, Ahmadabad, Bangalore, 51. Nairobi 8. Singapore8. Singapore20. Aberdeen20. Aberdeen 32. Singapore32.11. Singapore Nairobi 23. Boston Xinjiang,Xinjiang, Changchun ChangchunNavitas and Beijing)Workforce and Beijing) 49. JakartaChennai,49. Jakarta(2011) Chandigarh, (2011) Coimbatore, 52. Seoul 9. Vancouver9. Vancouver21. Dartmouth21. Dartmouth 12. Colombo 24. Bowling 40.Green, India 40. India 33. Sydney 50. TokyoGurgaon,50. Tokyo Hyderabad, Kochi, 53. Manizales 10. Winnipeg10. Winnipeg22. Lowell22. Lowell Kentucky (New Delhi,(New Ahmadabad, Delhi,34. Ahmadabad, Melbourne Bangalore, Bangalore, 51. NairobiMumbai,51. Nairobi Indore, Pune and Vizag) 54. Lagos (2011) 11. Nairobi11. Nairobi 23. Boston23. Boston NavitasNavitas Workforce Workforce Chennai,Chennai, Chandigarh, Chandigarh,35. BrisbaneCoimbatore, Coimbatore, 52.41. SeoulLondon52. Seoul 55. Lahore 12. Colombo12. Colombo24. Bowling24. Bowling Green, Green, 33. Sydney33.*via Sydney a co-operative affiliation and services Gurgaon,Gurgaon, Hyderabad, Hyderabad,36. Kochi,Perth Kochi, 53. Manizales53. Manizales 56. Istanbul agreement with MIBT 37. Adelaide 57. Ho Chi Minh City Kentucky Kentucky 34. Melbourne34. Melbourne Mumbai,Mumbai, Indore, Indore,Pune and Pune Vizag) and Vizag) 54. Lagos54. (2011)Lagos (2011) 35. Brisbane35. Brisbane 41. London41. London 55. Lahore55. Lahore *via a co-operative*via a co-operative affiliation affiliation and services and services 36. Perth36. Perth 56. Istanbul56. Istanbul agreement agreement with MIBT with MIBT 37. Adelaide37. Adelaide 57. Ho57. Chi MinhHo Chi City Minh City Navitas Limited Annual Report 2010 5 Highlights and Achievements Key Highlights • Total group revenue up 18% to $556.7m • EBITDA up 25% to $96.7m • Net profit after tax up 31% to $64.3m • Earnings per Share up 31% to 18.8 cents • Full year dividend up 31% to 18.8 cents • Increase in Australian market share of new