Page 58 - ALEF EDUCATION PR REPORT - JULY 2024

Robust top-line performance and effective cost management led to a 4% increase in
Adjusted EBITDA, amounting to AED259 million in the first half of 2024. Meanwhile, costs
decreased by 6% to AED112 million. The adjusted profit before tax margin improved by 4
percentage points to 70%, significantly above industry standards.

The company maintained operational excellence during this period, converting 14% of its
total 1.1 million users into paid users—151,000 across the Alef Education platform. This
growth was driven by new contract wins and a twofold increase in B2B product sales.

The first half of 2024 saw Alef Education enter the Kuwait market for the first time. They
signed a distribution agreement with Aafaq Distribution Co., a leading provider of
educational resources. This move aligns with Alef Education's strategy to target markets
with linguistic, cultural, and pedagogical similarities to its core UAE market.

Alef Education aims to grow significantly in the private school sector by introducing new
subjects and catering to younger students. The company already holds a substantial 58%
market share in the UAE market, serving 232 out of 403 private schools.

Investor Confidence and Future Prospects

The strong demand for Alef Education's initial public offering was evident as it was
oversubscribed by 39 times. This highlights investor confidence in the company's future
growth and its proven track record of improving educational outcomes in various
communities.
Alef Education's strategic growth plan is supported by an unlevered balance sheet and
strong cash flow generation. This enhances its flexibility to pursue attractive inorganic
growth opportunities that drive scale.

The company has a sizeable pipeline of deals for the second half of 2024 and is actively
discussing expansion plans with several governments across high-growth target markets.
Alef Education's consistent financial performance underscores its ability to deliver stable
results backed by long-term contracts and partner confidence. The company's focus on
leveraging advanced technology continues to drive demand for its innovative educational
solutions.

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