Page 16 - ALEF EDUCATION PR RPEORT MAY 2025

Q1 2025 Financial Results
Market Announcement

As part of its innovation agenda, Alef Education partnered with MetaMetrics® to develop Miqyas Al
Dhad, the region’s first Arabic reading scale aimed at improving literacy for Grade 1–12 Arabic
speakers. Created in collaboration with regional ministries, the initiative supports Alef Education’s
growth strategy by opening new, sustainable revenue streams in Arabic language proficiency. Now
86% complete, Miqyas Al Dhad has engaged over 110,000 students across nine countries, with
seven MOUs signed to date. The launch is on track for Q3 2025.

Consistent Shareholder Returns and Significant Value Creation

Beyond driving growth, Alef Education’s strong financial foundation allows the Company to deliver
sustained value to shareholders through a transparent and robust dividend policy. In line with its IPO
commitment, Alef Education guarantees a minimum annual dividend payout of AED 135 million to
its 20% free-float investors for FY2024 and FY2025, distributed semi-annually.

Alef Education holds a leading position in the UAE’s K–12 EdTech space, deeply embedded in the
national education framework via ADEK. With guaranteed payments from ADEK, the Company
enjoys stable, predictable cash flows, enabling consistent dividend payouts with an attractive yield
driving long-term shareholder value. Following the Annual General Meeting (‘AGM’) held on 27 March
2025, Alef Education successfully distributed a cash dividend of AED 199.2 million for H2 2024 in
April 2025. This brought the total FY 2024 dividend payout to AED 402.8 million, representing 90% of
the Company’s full-year net profit, reflecting ~ 10% dividend yield with AED 135 million (~ 10 fils per
share) being distributed to free float shareholders, and an equivalent amount is guaranteed for FY
2025, reflecting Alef Education’s disciplined growth strategy.

Outlook

Alef Education enters the remainder of 2025 with a strong outlook, supported by long-term
government contracts, a growing international presence, and continued innovation. Revenue is
expected to witness 3-4% growth in FY 2025 YoY. EBITDA for the year is expected to increase by 8-
9%, generating a higher margin of 70% backed by strict cost optimization efforts coupled with
revenue growth. Similarly, Net Profit is expected to increase by 6-7% resulting in a strong and
consistent margin of 60%.

With predictable cash flows and a proven model, Alef Education is uniquely positioned to fuel
innovation, scale globally, and lead the next era of digital learning, while sustaining attractive
dividends and delivering long-term value to shareholders.

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