Kip Mcgrath Education Centres Limited · ASX:KME
Kip Mcgrath Education Centres — Shareholder Meeting (November 2024)
23 slides from Kip Mcgrath Education Centres's shareholder meeting presentation, Nov 26, 2024
Slide 1: Investor update November 2024
Kip McGrath Education Centres Ltd For personal use only Investor update November 2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Kip McGrath Education Centres Limited (Company). Disclaimer For personal use only Statements in this presentation are made only as at 26 November 2024 and the information in this To the maximum extent permitted by law, the Company disclaims all respo
Slide 3: Agenda
1 Chairman’s Introduction For personal use only Annual General Meeting 2 CEO’s presentation AGENDA 3 Formal Business of the Meeting 26th November 2024 4 Questions Investor update Nov 24 | 3
Slide 4: Chairman's Introduction
Chairman’s Introduction The past financial year had 2 distinct performance halves, a poor first half followed by a significantly improved second half. The year was also characterized by targeted investments and tactical initiatives. Our corporate centres and expanding For personal use only school pa
Slide 5: Chairman's Introduction (continued)
Chairman’s Introduction (continued) Our US-based Tutorfly brand has also expanded its influence, securing preferred supplier status in multiple states and For personal use only school districts, reinforcing our alignment with current educational needs. This business is not yet performing to the leve
Slide 6: CEO Presentation
For personal use only CEO Presentation
Slide 7: Our Strategic Pathway
Our Strategic Pathway Steadfast in our mission with a strategy to deliver our vision Our mission Our vision For personal use only “We truly believe every child can learn; they just ‘‘To deliver measurable improvement need to be taught properly. By setting meaningful goals and and change the lives of
Slide 8: Our Core Business Drivers: Centre Lesson Numbers
Our Core Business Drivers Key focus areas driving shareholder value For personal use only Core Business Driver – Centre Lesson Numbers Our business strategy prioritizes boosting revenues and margins through tutoring lessons, with lesson quality and centre standards at the core. Growth in lesson numb
Slide 9: Global Centres
475 Global Centres Core Business Driver – For personal use only Centre Numbers Physical centres remain essential to Kip McGrath’s global operations We are committed to equipping all centres with the latest technology for top-quality teaching, highlighted by our global shift toward gold partners and
Slide 10: Average Weekly Lesson Numbers per Centre
Core Business Driver – Average Weekly Lesson numbers per Centre For personal use only Weekly student attendance is crucial for business viability. Franchise centres break even at 50 students, while corporate centres, originally set at 120, now break even at 85 due to technology and hub efficiencies.
Slide 11: Average Lesson Charge
Core Business Driver – For personal use only Average Lesson Charge Average Lesson Charge 70.00 (AUD per week) 56.98 58.57 60.00 54.53 53.21 50.73 49.53 48.36 50.00 To maintain healthy margins, lesson pricing 40.00 must balance competitiveness, customer 30.00 value, and support for quality teachers a
Slide 12: Average Franchise Fees
Core Business Driver – For personal use only Average Franchise Fees Franchise Fees Percentage 20.0% 17.0% 17.5% 18.0% 16.4% 16.2% 16.2% 15.6% 16.0% 14.0% 14.3% Franchise fees remain critical to the financial 12.0% performance of the business. 10.0% 8.0% The shift toward more Gold Partner contracts 6
Slide 13: Contribution Margin per Centre
Oct YTD Total Centre EBT Contribution Margins (Unaudited) (Franchising and Corporate Centres) 10000 $9,132.63 Core Business Driver – 9000 8000 Contribution Margin per For personal use only 7000 $5,708.30 6000 Centre 5000 4000 3000 2000 A critical driver of business profitability is the 1000 contribu
Slide 14: Corporate Centre Contribution Margin per Centre
Corporate Centre Oct YTD Corporate Centre EBT Contribution Contribution Margin per Margins For personal use only (Unaudited) Centre (AUD) 6000 $4,871.79 5000 • Corporate centres continue to contribute solid $3,960.76 margins with focus on productivity improvements 4000 3000 • The UK centre closure i
Slide 15: Update on progress with AI
Update on progress with AI For personal use only Automated lesson notes – Improving retention and reducing fixed Focus 1 cost per centre where we have implemented teacher student reports AI generated curriculum enhancing content creation and accelerating Focus 2 speed to market for new US curriculum
Slide 16: New Revenue Streams: Value Added Products
New Revenue Streams: Value Added Products For personal use only Daily Homework Our inhouse Individualised 2nd lesson delivered by AI tutor developed KipLearn platform now enables us to deliver new learning possibilities Holiday lessons to our existing customer base AI tutor on demand Investor update
Slide 17: Tutorfly growth potential in the US
Tutorfly Boston Win Preferred supplier to deliver tutoring across the Boston area – delayed due to election Continued significant For personal use only growth potential AI Tutoring tendering for new work using AI tutoring platform to provide core components to schools for Tutorfly in the US market R
Slide 18: Months to October 2024 unaudited financials
4 months to 31 October 2024 unaudited financials For personal use only Revenue of $10.1M Franchise Business up 15% Up 5.8% YoY Revenue $5.4M, Up 14.7% YoY EBITDA of $1.9M 1.9x PY Corporate Business up 5% (excl Tutorfly) Revenue $3.5M, Up 5.4% YoY YTD CAPEX $0.5M v $2.1M in PY 589k $30.8M up 4.5% 475
Slide 19: Outlook
Outlook • Enhanced technology is increasing margins depleted over the past 4 years For personal use only • Now looking at value added products and AI to further contribute to margins • CAPEX to reduce significantly with key technology updates now complete • 2 key short-term risks/opportunities remai
Slide 20: Business of Meeting
For personal use only Business of Meeting of Meeting
Slide 21: Business of Meeting: election resolutions
Business of Meeting For personal use only Resolution 1 - Election of Ms. Lynne Lewis For Against Abstain Discretion Excluded Total 21,426,313 44,565 89,175 81,058 - 21,641,111 Resolution 2 – Re-election of Mr Damian Banks For Against Abstain Discretion Excluded Total 21,455,526 15,352 89,175 81,058
Slide 22: Business of Meeting (cont.)
Business of Meeting (cont.) For personal use only Resolution 3 - Adoption of Remuneration Report For Against Abstain Discretion Excluded Total 20,134,264 728,789 700,000 81,058 - 21,641,111 Resolution 4 - Issue of Performance Rights to Mr Storm McGrath For Against Abstain Discretion Excluded Total 2
Slide 23: Thank you and Questions
For personal use only Thank you and Questions
Kip McGrath Education Centres — Shareholder Meeting (November 2024) on 6ix