ICOLLEGE : Quarterly cash flow and activity report

ASX / MEDIA RELEASE29 JULY 2022

iCOLLEGE REPORTS RECORD OPERATING CASH FLOWS AND

INCREASED CASH BALANCE FOR Q4 FY22 SUPPORTED BY STRONG

RETURN OF INTERNATIONAL STUDENTS

iCollege Limited (ASX: ICT) (iCollege or the Company) is pleased to provide its quarterly cash flow and activity
onlyreport for the quarter ended 30 June 2022 (Q4 FY22).
Highlights for Q4 FY22 include:
use	• Record quarterly cash receipts of $22.4 million, up 470% over the previous corresponding period (PCP)
(Q4 FY21: $3.9 million);
• Operating Cash Flows of $9.0 million up $9.3 million over the PCP (Q4 FY21: negative $0.3 million) and
better than earlier guidance; and
• Closing cash balance at the end of June 2022 of $30.2 million (including term deposits of $3.1 million),
	an increase of $7.8 million over the balance as at 31 December 2021 and in line with earlier guidance.
There were no significant changes in the activities of iCollege in Q4 FY22.
Update on international student lead indicators
personal

Australia remains a popular destination for international students, known for its quality education, cultural diversity, lifestyle, and working opportunities. iCollege continues to work closely with global international student recruitment agent partners to enrol new students and to maximise lifetime value by packaging students into multiple courses offered by the iCollege group.

Australia's borders re-opened to international student arrivals in late December 2021 and iCollege continues to xperience outstanding lead indicator trends which are expected to deliver significant growth in future international student revenues, including:

• The number of new international student offers of enrolment into English language and vocational courses in the month of June 2022 has grown by over 150% since the month of December 2021;

For

iCollege Limited

Level 2, 7 Kelly Street, Ultimo, NSW, 2007

T [phone] | E [e-mail] | W www.icollege.edu.au

• The number of new international student confirmed enrolments into English language and vocational courses in the month of June 2022 has grown by over 180% since the month of December 2021;

For personal use only

• The number of actively studying English language students is projected to be approximately 3,200 students by the end of September 2022, significantly exceeding pre-COVID pandemic student numbers; and

• An approximate $6.2 million increase in deferred revenue (contract liabilities) in Q4 FY22 against the previous quarter, and an increase by approximately $16.4 million since the end of December 2021.

• June 22 figures are subject to audit confirmation
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Commenting on the results, iCollege CEO, Glenn Elith said:

only

"iCollege's quality brand reputation is driving strong support from our international student recruitment agency partners and is assisting us to achieve outstanding enrolment growth momentum since the 'reopening' of Australia's borders.

Our English language courses play an important role in enabling international students to progress onto our broad range of other courses and services, and we are focusing on initiatives which will maximise student retention and lifetime value.

We're excited by our positive performance momentum and are determined to deliver significant growth."

New capital works

Total capital expenditure was $1.8 million in Q4 FY22, which included:

use	• $0.8 million continued works on fitting out the new substantial iCollege Brisbane campus, which is on
	track to be completed and open to students in late August 2022; and
	• $0.4 million upgrading of computer labs and post-production audio studios at the Sydney and
	Melbourne campuses to enhance student learning experiences.
personaliCollege will use Zoom videoconferencing for the Results Presentation, and participants will be required to

Payments to related parties and their associates

Total payments to executive and non-executive directors during Q4 FY22 amounted to $255,267.00.

HWL Ebsworth Lawyers, of which iCollege's Non-Executive Chairman Simon Tolhurst is a partner, was paid $1,306.00 in relation to general legal services provided to the Company during Q4 FY22.

Notice of FY22 results presentation

iCollege is pleased to invite shareholders to attend a Results Presentation following the release of its FY22 Preliminary Financial Report.

The Results Presentation will be hosted by the iCollege CEO and CFO, Glenn Elith and Michael Fahey, and will be held on Monday 29 August 2022 at 11:00am (AEST).

register to join the call.

ForiCollege invites you to register your attendance using the following Zoom link: https://us02web.zoom.us/webinar/register/WN_lK-HUrH2RnCyHMCm1BZdWA

This announcement has been approved for release by the Board of iCollege.

For further information:
Glenn Elith	Lisa Jones
Chief Executive Officer	Company Secretary
[e-mail]	[e-mail]
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For personal use only

Rule 4.7B

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

iCollege Limited
ABN	Quarter ended ("current quarter")
75 105 012 066	30 June 2022

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	22,452	61,238
1.2	Payments for
	(a)	research and development	-	-
	(b) product manufacturing and operating	(3,981)	(15,692)
		costs
	(c)	advertising and marketing	(887)	(2,881)
	(d)	leased assets	-	-
	(e)	staff costs	(8,399)	(25,810)
	(f) administration and corporate costs	(166)	(947)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	13	16
1.5	Interest and other costs of finance paid	(18)	(103)
1.6	Income taxes paid	-	(149)
1.7	Government grants and tax incentives	-	1,482
1.8	Other (M&A related costs)	-	(5,813)
1.9	Net cash from / (used in) operating	9,014	11,341
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire or for:
	(g)	entities	-	-
	(h)	businesses	-	-
	(i) property, plant and equipment	(1,620)	(2,281)
	(j)	investments	-	-
	(k)	intellectual property	(168)	(644)
	(l)	other non-current assets	-	-

ASX Listing Rules Appendix 4C (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 4C

Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter	Year to date
			$A'000	(12 months)
				$A'000
2.2	Proceeds from disposal of:
	(a)	entities	-	-
	(b)	businesses	-	-
	(c)	property, plant and equipment	-	-
	(d)	investments	-	-
	(e)	intellectual property	-	-
	(f)	other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (cash acquired upon acquisition of	-	21,345
	RedHill Education Limited)
2.6	Net cash from / (used in) investing	(1,788)	18,420
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

	(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of	-	-
	equity securities or convertible debt
	securities
3.5	Proceeds from borrowings	-	95
3.6	Repayment of borrowings	(161)	(563)
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (bank guarantees paid)	-	(448)
3.9	Other (lease liabilities paid)	(2,165)	(6,233)
3.10	Net cash from / (used in) financing	(2,326)	(7,149)
	activities

4. Net increase / (decrease) in cash and cash equivalents for the period

4.1 Cash and cash equivalents at beginning of

	period,	22,261	4,549
4.2	Net cash from / (used in) operating	9,014	11,341
	activities (item 1.9 above)

ASX Listing Rules Appendix 4C (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.