G8 Education Limited · ASX:GEM

G8 Education — FY2017 Earnings Presentation

19 slides from G8 Education's earnings presentation, Feb 26, 2018

  1. Slide 1: Results Presentation - Year Ended 31 December 2017

    RESULTS PRESENTATION A Bt ducation eed oO a @) ) = ersona. YEAR ENDED 31 DECEMBER 2017 G8 Education Limited (ASX:GEM)

  2. Slide 2: Highlights

    HIGHLIGHTS PERFORMANCE STATISTICS et Delivered against our 2017 strategic goals to lay the foundation for sustainable growth by: © reducing team turnover ® recruiting the right leaders, starting with the executive e oa the quality of our centres 2 Py 2 Y 1 ® 6 2 D4 Net Leverage aa © strengthening ou

  3. Slide 3: Consolidated Income Statement

    For personal use only Change Vs Consolidated Income Statement 2017 2016 PCP #039;000 #039;000 % Total Revenue 795,759 777,470 2.4% Total Expenses (644,881) (616,779) (4.6%) Reported EBIT 150,878 160,691 (6.1%) Net finance costs (33,097) (46,022) 28.1% Profit before income tax 117,781 114,669 2.7% Income t

  4. Slide 4: Organic and acquisition EBIT bridge

    For personal use only % % Change vs Change 2017 Revenue 2016 Revenue pcp vs pcp Organic Revenue 707,011 716,009 (8,998) (1.3%) Wages 380,438 53.8% 384,997 53.8% (4,558) (1.2%) Rent 82,724 11.7% 79,279 11.1% 3,445 4.3% Other Expenses 71,089 10.1% 74,331 10.4% (3,242) (4.4%) Expenses 534,250 75.6% 538

  5. Slide 5: Developments & Acquisitions

    For personal use only Developments & Acquisitions 70,000,000 19.0% 60,000,000 18.5% 50,000,000 Operating Margin Revenue / EBIT 40,000,000 18.0% 30,000,000 20,000,000 17.5% 10,000,000 0 17.0% FY16 FY17 Revenue EBIT Margin 5

  6. Slide 6: For personal use only

    For personal use only

  7. Slide 7: Centre occupancy by region

    66 CENTRES 28 CENTRES 72 CENTRES 187. Ell 79.9% FY17 Change (3.5%) (4.3%) (2.9%) (3.5%) (1.9%) (3.2%) G8 Education”*

  8. Slide 8: Occupancy drivers: supply and demand

    79.9% — mo (0.9%) (0.7%) FY16 OVERSUPPLY UNDERSUPPLY MACROECONOMIC TURNOVER OTHER ISSUES FY17 Demand - From a market perspective, affordability has been impacted by continued sluggish wage growth as well as current industry settings such as the $7.5k rebate cap. This is expected to be mitigated by t

  9. Slide 9: Support Office Costs as % of Revenue

    For personal use only Support Office Costs as % of Revenue FY11 FY12 FY13 FY14 FY15 FY16 FY17 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 9

  10. Slide 10: Return on Capital Employed

    For personal use only #039;000 FY17 FY16 Underlying EBIT 156,034 160,660 Working Capital 21,023 15,414 Property Plant and equipment 58,826 54,845 Intangible 1,087,969 1,015,002 Current & deferred tax asset 16,472 18,338 Other (570) (8,471) Capital Employed 1,183,720 1,095,128 Return of capital employed

  11. Slide 11: Cash flow

    For personal use only 31-Dec-17 31-Dec-16 #039;000 #039;000 Cash flows from Operating Activities Receipts from customers (net of GST) 777,833 769,277 • Underlying cash conversion was 96% after adjusting for repayment of centre Payments to suppliers and employees (net of GST) (626,525) (601,491) enrolment

  12. Slide 12: Capital Structure

    12 CAPITAL STRUCTURE G8’s capital structure as at 31 December consisted of the following Debt and Equity instruments: 448m March 18 May 19 Dec 20 shares on Issue $50m AUD notes $270m SGD Bonds aoc Club Bank 4 The foreign currency exposure on the $270m corporate notes has been fully hedged The Group

  13. Slide 13: For personal use only

    For personal use only

  14. Slide 14: G8 Australia centres and brands

    Eor Perso NTRES D PLACES G8 AUSTRALIA dt OSL BASE Community ait Kinder Haven Penguin Childcare World of lsecdig rfl ———e ASX LISTED

  15. Slide 15: Strategic Plan

    STRATEGIC PLAN For personal use only Purpose We create spaces that shape generations now and next (Why does G8 exist?) Vision G8 will be known as the people that parents and policy-makers prefer to (What does G8 want to be recognised for, to build and achieve?) partner in nurturing and inspiring the

  16. Slide 16: For personal use only

    16 For personal use only

  17. Slide 17: Jobs for Families

    P= a a. =) uw $ 1S) x JOBS FOR FAMILIES

  18. Slide 18: Summary

    18 IN SUMMARY wo ACHIEVEMENTS e People strategy on track with 1%pt reduction in team turnover * Equity of $200m raised and a bank debt facility of $200m put in place currently drawn to nil * Repayment of $70m corporate note and $40m bank facility reducing gearing levels * Continued selective and dic

  19. Slide 19: For personal use only

    For personal use only

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