OpenLearning : Preliminary Final Report and Commentary

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ASX Announcement | 28 February 2022

Appendix 4E and Commentary for FY21

OpenLearning grows revenue by 85% and launches new programs in FY21

Financial highlights (all financial amounts are in AUD unless otherwise stated)

• FY21 gross sales increased 45% year-on-year (YoY) to reach $4.16 million
• Group revenue (sales less revenue shared with education providers) for FY21 was up 85.7% YoY to $3.51 million
• Platform revenue, comprising OpenLearning's Platform SaaS and Program Delivery segments, jumped by 170% to $3.045 million in FY21
• Spending and investment in growth initiatives, including new programs, sales and marketing, and platform design and development over FY21 totalled $4.13 million
• OpenLearning's FY21 loss after tax of $6.73m was up 19.6% YoY, as the Company invested in the abovementioned initiatives
• Total registered users reached 3.12 million and enrolments reached 5.12 million by end- FY21, an increase of 14% and 18% YoY respectively
• End-FY21cash and cash equivalents totalled $4.59 million (prior to completion of recent capital raisings, which has so-far secured an additional $1.58 million as of today's date)

Business highlights

• Enhancements to OpenLearning's unique lifelong learning platform has led to new customers and has enabled the Company to capitalise on the continued growth of online education
• Platform SaaS customers increased by 23% to 205 as at end FY21 as the Company focused on signing up education providers to its usage-based SaaS model
• The introduction and subsequent expansion of OpenLearning's Program Delivery product line in FY21, fed the strong uplift in the Company's Platform Revenue over the year
• The Company's push into the Program Delivery segment over FY21 comprised two programs delivered in partnership with top institutions and with large accessible markets:
• • The UNSW Transition Program Online (TPO), a four-month direct entry program for prospective international students delivered in partnership with UNSW Global
  • The CS101 (short for 'computer science 101') micro-credential, specifically designed in collaboration with leading tech companies for working professionals to develop their computational thinking and programming skills
• Revenue from the TPO exceeded investment within its first year of operation
• Alchemy Tribridge Sapphire Pty Ltd, a global investment group experienced in working with technology businesses to drive outsized growth, acquired a 17% stake in OpenLearning via capital raising initiatives undertaken in late FY21

expected to OpenLearning Limited (ASX: OLL)

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ACN 635 890 390 • Phone: [phone] • Web: www.openlearning.com

Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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Sydney, Australia, 28 February 2022: Global lifelong learning platform and technology company OpenLearning Limited ('OpenLearning' or 'the Company') is pleased to provide its Appendix 4E preliminary annual financial statements for the year ended 31 December 2021 (FY21), along with the following update. The Company's fiscal year coincides with the calendar year.

Strong growth in Platform Revenues a FY21 highlight

Platform Subscription revenues rose by 27% in FY21 to $1.43 million, while Program Delivery revenues, which were successfully introduced during OpenLearning's FY21, totalled $1.61 million in the year. These two revenue streams, which are together categorised as 'Platform Revenue,' jumped by 170% to $3.045 million in FY21.

$4.0		Platform Revenue (AUD, $million)
$3.0			+170%	3.045
$2.0
		+56%	1.127
$1.0	0.723
$0.0	2019		2020	2021

OpenLearning's gross sales, which includes value-added services; increased by 45% YoY to $4.16 million. Overall Group revenue, which deducts shared with education providers, jumped by 86% YoY to $3.51 million. OpenLearning's cash receipts increased by 43% YoY to $4.56 million, underpinned by higher upfront payments from learners and SaaS customers.

For

Group Revenue (AUD, $million)

$5.0
$4.0				3.508
$3.0
$2.0	1.603	1.889
$1.0
$0.0
2019	2020	2021

Cash Receipts (AUD, $million)

$5.0				4.555
$4.0
		3.183
$3.0
2.243
$2.0
$1.0
$0.0
2019	2020	2021

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ACN 635 890 390 • Phone: [phone] • Web: www.openlearning.com

Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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An expanded product offering feeds growth in Program Delivery revenue stream

OpenLearning's Program Delivery segment grew in importance over FY21 as the Company launched two programs targeting large accessible markets in partnership with top institutions.

The first of these was the TPO. It is a highly scalable four-month preparation program that provides prospective international students with direct-entry into the University of New South Wales (UNSW), a global top 50 university.

The first intake of the TPO occurred in March 2021. It was highly successful, with 86% of students receiving an offer from UNSW for either a degree or diploma after completing the TPO. The program subsequently completed further intakes in August, September and November 2021. Looking ahead, five further intakes are now scheduled for 2022.

OpenLearning and UNSW Global are now aiming to increase the number of other universities that recognise the program. To this end, six universities across the United Kingdom, New Zealand and Australia, in addition to UNSW, have already recognised the TPO. In a clear pointer to the market demand, revenue from the TPO exceeded investment within its first year of operation.

OpenLearning's second Program Delivery offering, the recently introduced technology upskilling program named Computer Science 101 (CS101), is now also gaining traction. CS101 comprises four short courses that are designed by industry to up-skill working professionals in computational thinking and programming. It brings together industry experts and leading technology companies, including Microsoft, Canva, Chronosphere, Alibaba Cloud and CT4, and is expected to grow further over time.

OpenLearning started development of CS101 in Q2 FY21, a task that also extended across the Company's Q3 FY21. The first CS101 intake occurred in OpenLearning's H2 FY21 and new cohorts will run throughout 2022. OpenLearning is targeting the corporate and higher education sectors in its key markets of Australia, Malaysia and Singapore.

OpenLearning continues to implement its stated growth strategy

OpenLearning is focused on leveraging its market-leading lifelong learning platform to generate revenue through its Platform SaaS and Program Delivery product offering.

OpenLearning's multi-faceted growth strategy encompasses:

• The provision of an end-to-end platform for education providers to move online and capitalise on demand for lifelong learning;
• Investment in product-driven growth to increase sales and marketing efficiency;
• Expansion of its SaaS model's addressable market by targeting new sectors and geographies, in particular the United States, and registered training organisations and private education providers in Australia and Malaysia;
• Increasing enrolments and university partners for the UNSW Transition Program Online; and
• Entry into the corporate up-skilling and higher education markets with Computer Science 101 (CS101) and Technology-focused OpenCreds.

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ACN 635 890 390 • Phone: [phone] • Web: www.openlearning.com

Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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OpenLearning bolsters capital base and gains a new major shareholder

In late FY21, OpenLearning announced global investment group Alchemy Tribridge Sapphire Pty Ltd (ATL) had taken an approximate 17% stake in the Company. ATL also now has options to acquire a further circa 3%, making it OpenLearning's largest shareholder. ATL initially invested $2.9 million in OpenLearning via a placement (31,182,796 new shares at an issue price of $0.093 per share). It subsequently participated in the recent rights issue to eligible shareholders, taking its total investment in OpenLearning to around $3.4 million.

The transaction provides OpenLearning a lot more than just additional capital. ATL is a global investment group comprised of principals experienced in working with technology businesses to drive outsized growth. OpenLearning will leverage off the ATL team's world-class capabilities as the next phase of the Company's growth strategy is developed. ATL's Founding Partners, Venture Partners and Thematic Partners work across Australia, the United States, China, the Middle East and Brazil.

OpenLearning's cash on hand as at 31 December 2021 was $4.59 million, inclusive of the proceeds of the placement to ATL. Post year end, OpenLearning's cash holdings were further boosted by $1.58 million received from a rights issue to eligible existing OpenLearning shareholders. The Company now intends to place the remainder of the latter issue - around $1.48 million - within three months of the closing date of the rights issue but it has not yet done so as of the date of this announcement.

OpenLearning Group CEO & Managing Director Adam Brimo said: "We are pleased with the revenue growth our team delivered in FY21. The Company focused on growing Platform Revenue, resulting in strong gains in both the Platform Subscription and Program Delivery segments. The contribution by Program Delivery was especially important. Just 12 months ago we were preparing for the first intake of the UNSW Transition Program Online. Now it has successfully completed four intakes. More recently, the CS101 program introduced just several months ago is already showing tangible signs of traction amongst paying customers.

We are grateful for the continued commitment of OpenLearning's staff and the excellent support provided by our partners, which ensured the Company executed against a number of key contracts during FY21. These efforts included continued investment in sales and marketing capabilities, adoption of the OpenCreds micro-credentialling framework by our partners and the expanding capability of the OpenLearning platform, including Biomedical Education Skills and Training (BEST) Network.

We thank all our shareholders for their support in FY21 and welcome new major shareholder Alchemy Tribridge Sapphire to the fold. The Company looks forward to announcing new initiatives over the course of FY22 as they are developed that will see it continuing to leverage off the accelerated shift towards online education - a phenomenon that will remain in place with or without a still lingering COVID-19 pandemic."

Ends.

Authorised by:

Adam Brimo

Group CEO & Managing Director

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ACN 635 890 390 • Phone: [phone] • Web: www.openlearning.com

Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia

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Stay up to date with OpenLearning news as it happens:

Visit the Investor section of the OpenLearning website at: https://solutions.openlearning.com/investor- home/. There you can download the Company's Prospectus and see recent ASX Announcements and press coverage.

In addition to signing up for OpenLearning news directly from the Company, we also encourage shareholders to register to receive electronic communications from our share registry, Automic. To sign up for e-communications from Automic, please visit https://www.automicgroup.com.au/.

Thanks for your ongoing support. We look forward to sharing OpenLearning news with you.

For further information, please contact:

Investor Relations

Julia Maguire

The Capital Network

P: [phone]

E: [e-mail]

About OpenLearning

OpenLearning Limited is a higher education technology company that provides a scalable online learning platform to education providers and a global marketplace of world-class courses for learners of all levels.

OpenLearning's platform enables the delivery of project-based, social learning to encourage interaction among users and foster a community of collaborative learners. The Company's unique service provides a complete learning environment for all types of online education - from short courses through to micro- credentials and online degrees.

With more than 3 million learners worldwide across over thousands of courses provided by over 200 education providers, OpenLearning is at the forefront of a new wave of online education delivery.

To learn more, please visit:https://solutions.openlearning.com/

expected to OpenLearning Limited (ASX: OLL)

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ACN 635 890 390 • Phone: [phone] • Web: www.openlearning.com

Address: Level 2, 235 Commonwealth Street, Surry Hills NSW 2010, Australia