Mayfield Childcare Ltd. · ASX:MFD
Mayfield Childcare — Non-Deal Roadshow (May 2018)
22 slides from Mayfield Childcare's roadshow presentation, May 29, 2018
Slide 1: Mayfield Childcare Ltd Investor Roadshow
Mayfield Childcare Ltd (ASX:MFD) Investor Roadshow Igniting your child’s love of learning 30 May 2018 1
Slide 2: Important Information and Disclaimer
Important Information and Disclaimer This Presentation contains summary information about the current activities of Mayfield Childcare Limited (Mayfield). It should be read in conjunction with Mayfield’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exc
Slide 3: Mayfield - Background
Mayfield - Background ➢ Mayfield Childcare Limited (ASX:MFD) - listed on the Australian Securities Exchange (ASX) 30 Nov 2016 @ $1/share ➢ Industry & Location - Mayfield operates long day care child care centres in the greater Melbourne region ➢ Expertise - Mayfield personnel have been in the child
Slide 4: Mayfield - Overview
Mayfield - Overview Operations CY2016* CY2017* Centres 16 19 Licensed places 1,360 1,588 Average centre size 85 84 Centres with funded kindergarten program 15 19 Average daily fee per day $100 $106 Average daily fee Increase (1 July 2017) 5.9% Number of educators 370 481 Wages to revenue ratio (%) 5
Slide 5: Financial Overview
Financial Overview Operations CY2016 Prospectus CY2017 CY2017 Actual Forecast Actual NPAT ($1.25) M $3.48 M $3.42 M Earnings per Share (Cents Per Share (4.2c) 11.6 cps 11.4 cps – CPS) Dividend per Share (100% Franked) n/a 7.65 cps 7.65 cps EBIT Margin (61.3%) 18.3% 18.7% Net Profit Margin (54.5%) 12
Slide 6: Income Statement – CY2017
Income Statement – CY2017 A$ 000’s Actual Prospectus Variance Variance CY2017 Forecast $ 000’s % Revenue (1) 27,117 28,962 (1,845) (6.4%) (1) Occupancy below forecast, particularly in the small and trade-up centres (2) Effective rostering across all centres, allowing Centre Employee (15,070) (15,479
Slide 7: Balance Sheet as at December 31, 2017
Balance Sheet as at December 31, 2017 A$ 000’s CY 2016 CY 2017 Assets (1) Solid cash position with all 2017 acquisitions funded Cash & Cash Equivalents (1) 1,410 1,539 from cash reserves Trade & Other Receivables (2) 1115 715 (2) CY 2017, reflects normal operating levels of receivables associated wi
Slide 8: Cash Flow – CY 2017
Cash Flow – CY 2017 A$ 000’s Actual Actual CY2016 CY2017 Receipts from Customers, inc Govt Funding 1,661 26,193 Payments to Suppliers & Employees 1,405 21,063 Net Cash Inflow from Operating Activities 227 4,766 Net Cash Outflows from Investing (25,066) (4,571) Net Cash (Outflow) / Inflow from Financ
Slide 9: Industry Governance & Business Parameters
Industry Governance & Business Parameters ➢ Industry Governance ➢ Overseen by the Department of Education and Training (“DET”) ➢ Australian Children’s Education and Care Quality Authority (“ACECQA”) ➢ Manage all Regulatory, Compliance, Licencing and Assessment & Rating of childcare services ➢ Indust
Slide 10: Industry - Conditions
Industry - Conditions ➢ 2017 Childcare Sector ➢ Sector impacted by market over-supply and delays to Funding increases ➢ Record new centre openings in Victoria took place in the first quarter CY17 ➢ Diminishing value of stagnant Government funding against rising cost of living ➢ Market over-supply ➢
Slide 11: Industry – Conditions
Industry – Conditions ➢ Government Subsidies ➢ Stagnant Childcare Rebate – Regardless of geographical location or socio-economic background, the diminishing value of the Rebate has seen families defer and/or reduce their childcare requirements ➢ The planned increases to the Rebate in July 1, 2018 wi
Slide 12: Industry - New Child Care Subsidy (1 July 2018)
Industry - New Child Care Subsidy (1 July 2018) ➢ Childcare Benefit (CCB) and Childcare Rebate (CCR) will cease ➢ All funds combined into single scheme called the Child Care Subsidy (CCS) ➢ Family assessment will be based on Combined Family Income and Activity Levels for Work, Study, Training and Vo
Slide 13: CCS – Activity Test Entitlements
CCS – Activity Test Entitlements Step Hours of activity (per fortnight) Maximum number of hours of subsidy (per fortnight) Less than 8 hours (for a family earning less than 24 hours $65,710) 1 8 hours to 16 hours 36 hours 2 More than 16 hours to 48 hours 72 hours 3 More than 48 hours 100 hours ➢ Can
Slide 14: Industry - National Quality Standard (NQS)
Industry - National Quality Standard (NQS) ➢ Quality is not a business “value” in childcare it’s a measured and rated framework of performance which is governed by ACECQA ➢ In 2012, ACECQA implemented its National Quality Framework, the Standards within, and its process of Assessment and public Rati
Slide 15: Industry Analysis – Victoria - ASX Listed Companies
Industry Analysis – Victoria - ASX Listed Companies Total Victoria Mayfield Childcare Ltd Think G8 Education Ltd (MFD) (TNK) (GEM) Amount % Amount % Amount % Amount % No of Childcare Centres - Long Day Care only 3,919 19 25 120 No of Licenced Places 252,689 1,588 2,220 11,321 Average centre size 64
Slide 16: The Mayfield Journey
The Mayfield Journey ➢ Post ASX-Listing - The first full year for Mayfield has been a demanding, fast paced, though ultimately rewarding year as the board and management have worked tirelessly to deliver against expectation. ➢ Integration - The initial integration proceeded without fault, and the me
Slide 17: The Mayfield Journey
The Mayfield Journey ➢ Administrative Improvements - At an administrative level, we implemented our payroll system, supported via our online rostering and time & attendance systems, allowing for effective control of labour costs relative to occupancy, Additionally a third party payment system was de
Slide 18: 2017 Acquisitions and Managed Services
2017 Acquisitions and Managed Services ➢ Acquisitions - 3 centres were acquired in 2017: ➢ Glen Waverley - Purpose built, 58 place centre ➢ Includes owner-funded, new 120 place centre on adjacent site, offering Mayfield first right of refusal and non-compete protections ➢ Tullamarine - Purpose built
Slide 19: 2018 Acquisition
2018 Acquisition ➢ 22 May 2018 – Mayfield announced acquisition of a child care centre (long day care) in Victoria ➢ Mayfield will continue to seek considered acquisition opportunities consistent with strategic objectives 19
Slide 20: The Mayfield Journey
The Mayfield Journey ➢ Successful delivery of our operational plans have ensured we fulfilled our commitment to shareholders ➢ Extensive marketing and community engagement programs - aimed at attracting new families ➢ Targeted pricing initiatives - to increase participation by existing families ➢ St
Slide 21: Outlook – CY 2018 Growth
Outlook – CY 2018 Growth ➢ Growth will come from: ➢ 2018 forward enrolment strategy - already delivered strong results - 25% growth in funded kindergarten enrolments. ➢ Improved operating market - increases in government rebates will provide a strong stimulus to further occupancy growth ➢ Acquisitio
Slide 22: Thankyou
Thankyou Please direct any further enquiries to: Dean Clarke Glenn Raines Andrew Angus CEO CFO Investor Relations dclarke@mayfieldchildcare.com.au graines@mayfieldchildcare.com.au andrewangus@overlandavisers.com.au +61 3 9576 3156 +61 3 9576 3156 +61 402 823 757 www.mayfieldchildcare.com.au 22