Page 205 - ALEF EDUCATION PR REPORT MAY 2024

5/22/24, 2:23 PM Alef Education Holding plc announces its intention to list on the Abu Dhabi Securities Exchange | MENAFN.COM

Alef Education’s in-house research capabilities and proven ability to enhance student

performance have cemented its reputation as a trusted partner for governments and
educational institutions in the markets where it operates.

● In the 2018-2019 academic year, Alef Education conducted a large-scale, controlled
experiment in Abu Dhabi, analysing final exam results from 357 public schools. The study
revealed that students using the Alef Platform demonstrated a 12.1% higher growth in their

grades compared to their peers.

● In the Indonesian market, Alef Education has rolled out its services to approximately
650,000 students across approximately 6,016 schools, offering Math and Arabic in the
Bahasa Indonesia language.

● In Indonesia, Alef Education’s platform has contributed to an increase in student scores by
an average of 8.5% across Arabic and mathematics.

● In Morocco, where Alef Education conducted a six-month pilot program in the 2022-2023
academic year, the Group's platforms contributed to a significant 13.3% increase in Arabic

subject diagnostic test scores, a 22.7% increase in overall final exam test scores for students
and a 27% increase in test scores for Grade 9 English students.

Alef Education’s consistently strong financial performance, high margins, and long-term
contracts provide stability and predictability, enabling it to pursue growth initiatives and deliver

value to shareholders.
● The Group’s revenues reached AED 750 million in the financial year ended 31 December

2023, a 12.4% increase from AED 667 million in 2021, with adjusted EBITDA and adjusted net
profit margins standing at 65% and 61% respectively in 2023.

● Alef Education’s financial stability is bolstered by a long-term contract with ADEK, which
makes provisions for a minimum of 80,000 students and a fixed fee for each student. As of

2024, there are seven years remaining in the contract, and the Group expects to renew it
upon expiry. This contract gives the Group revenue visibility and reliability.

● The Group’s business model, which emphasises embedded technology and data-driven
insights, results in sticky contracts with sound margins.

● In the B2B market, Alef Education operates on a software-as-a-service model, providing
stable recurring revenues.
● The Group has an unleveraged balance sheet, providing it with the flexibility to tap into debt

funding for expansion opportunities in new markets, investment in research and development,
and acquiring complementary businesses.

With a focus on both organic and inorganic growth strategies, Alef Education aims to expand

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