Navitas : Appendix 4D and Financial Report for 31 December 2016

Appendix 4D Half Yearly Report for the half year ended 31 December 2016 Results for announcement to the market

(All comparisons to the half year ended 31 December 2015)

$m

Revenues from ordinary activities 479.0 down 7.7%

Profit after tax from ordinary activities 53.3 up 18.3%

Dividend Information

Amount per share (cents)

Franked amount per share (cents)

Interim 2017 dividend (to be paid 15 March 2017) 9.4 9.4

Important dates for shareholders

Record date 1 March 2017

Payment date 15 March 2017

The company's dividend reinvestment plan (DRP) will apply for the interim dividend. The DRP will again be offered at no discount to market. The last date for receipt of an election notice to participate in the DRP is by 5.00pm (Sydney time) on 2 March 2017.

31 Dec 2016	31 Dec 2015
Net tangible asset backing per ordinary security	(66 cents)	(49 cents)

Additional Appendix 4D disclosure requirements can be found in the directors' report and the 31 December 2016 half yearly financial statements and accompanying notes.

This report is based on the consolidated half yearly financial statements which have been reviewed.

This information, comprising the information required by Listing Rule 4.2A, should be read in conjunction with Navitas Limited's 2016 Annual Report available on Navitas' website, www.navitas.com.

Navitas Limited

ABN 69 109 613 309

Half Year Financial Report 31 December 2016

Contents

Directors' Report 2

Auditor's Independence Declaration 6

Consolidated Financial Report

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 7

Condensed Consolidated Statement of Financial Position 8

Condensed Consolidated Statement of Changes in Equity 9

Condensed Consolidated Statement of Cash Flows 10

Notes to the Condensed Consolidated Financial Statements 11

Directors' Declaration 18

Independent Review Report 19

Directors' Report for the half year ended 31 December 2016

The directors present their report together with the consolidated financial report for the half year ended 31 December 2016 and the review report thereon.

Directors

The directors of the Company at any time during or since the end of the half year are:

Name
Tracey Horton	Chairman
Rodney Jones	Group Chief Executive Officer and Managing Director
Tony Cipa	Director
Harvey Collins	Director
Diana Eilert	Director
James King	Director
Lisa Paul	Director

Review of Operations Financial Summary

A summary of consolidated revenue and results is set out below:

Half year ended 31 December 2016	Half year ended 31 December 2015	Change %
		$m
Revenue	479.0	518.7	(8)
EBITDA*	76.6	82.8	(8)
Share of joint ventures profits/(losses) accounted for using the equity method	(0.1)	(0.4)	300
Net profit after tax	53.6	45.5	18
Net profit after tax attributable to owners	53.3	45.1	18
Earnings per share (cents)	14.5	12.0	21
Dividend per share (cents)	9.4	9.6	(2)

• EBITDA is defined as earnings before impairment, taxes, depreciation, amortisation and non-operating gains or losses. EBITDA excludes the share of results of equity accounted investments in joint ventures.

  Key Operational Highlights

  • Excellent student support and engagement outcomes across all Divisions including University Partnerships pass rates (+80%), retention rates (+85%) and progression to partner university rates (+90%);

  • 6% and 2% underlying growth in semester 2 / 3 University Partnerships enrolments (excluding closed colleges);

  • New US college agreement signed with University of Idaho;

  • Strong SAE growth in Australia and new programs approved in SAE US;

  • Vocational funding reforms underway - marginal impact on H1 result but likely to limit future PEP division growth; and

  • Ongoing restructuring to maintain global leadership progressing well.

2