Slide 1: Nido Education Limited 2024 Half-year results
NIDO EDUCATION LIMITED (ASX: NDO) 2024 Half-year results 15 August 2024 Presented by Mathew Edwards - Managing Director Tom Herring - Chief Financial Officer Cumberland Park SA
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Nido Education Limited ACN 650 967 703 (Group) (ASX code: NDO) and is for personal use only. Information presented in the presentation is on an aggregate basis, reflecting the Group’s structure. It contains general information in summary form which i
Slide 3: Our Purpose
OUR PURPOSE To support teachers to rise and make a positive impact on the lives of children
Slide 4: Overview
OVERVIEW $7.5m first half • Consistent week on week revenue growth EBITDA* • Wage efficiencies due to disciplined rostering in the second quarter $23.2m full year • Underlying Centre performance in line with Prospectus forecast EBITDA* • $3.5m establishment fees delayed to CY25 • Up to 4 Centres for
Slide 5: Agenda
AGENDA 01 Half-year results 02 Business update 03 CY24 forecast 04 Incubation
Slide 6: 01 Half-Year Results
01 HALF-YEAR RESULTS Riverton WA
Slide 7: Group Performance
GROUP PERFORMANCE Performance ($m)1 CY24 H1 CY23 H1 Change Centre revenue 73.7 32.4 41.3 Centre EBITDA 11.9 1.1 10.8 Net support office costs2 (5.2) (3.5) (1.7) Establishment fees 0.8 0.5 0.3 EBITDA* 7.5 (1.9) 9.4 Depreciation (0.3) (0.3) - Net finance costs (0.2) (0.2) - Profit / (loss) before tax
Slide 8: Centre Performance
CENTRE PERFORMANCE Centre performance1 ($m) CY24 H1 CY23 H1 Change Centre revenue 72.3 31.3 131% Other Centre revenue 1.4 1.1 27% Total Centre revenue 73.7 32.4 127% Centre wage costs (43.4) (21.5) (102%) Other Centre costs (18.4) (9.8) (9%) Centre EBITDA 11.9 1.1 980% Days of learning ('000) 461 22
Slide 9: Funding Capacity
FUNDING CAPACITY Key metrics ($m) Jun 24 Available debt is expected to fund at least Cash (3.8) 45 acquisitions ($30m+ Centre EBITDA) Drawn debt 5.0 Debt available ($m) Net debt 1.2 Net Leverage Ratio (NLR)1 0.05x 50 Facility limits Jun 24 NAB – Facility A 25.0 4.6 NAB – Accordion2 30.0 30 June 31 D
Slide 10: 02 Business Update
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Slide 11: Operating Profile
OPERATING PROFILE1 89 Average licenced places 26 $171 Average daily fee 2 11 1 70% (CCS) rate for families Average child care subsidy 14 64% through CCS of childcare revenue received 1 Information as at 2 August 2024 for Nido’s 52 owned centres Nido also manages 13 centres in incubation, and 34 cent
Slide 12: Revenue Growth and Wage Efficiencies
REVENUE GROWTH and WAGE EFFICIENCIES1 Weekly revenue and wage costs 3,500,000 120% July fee increase and discount changes 110% 3,000,000 Revenue has increased 100% steadily week on week 2,500,000 Q1 recruitment of 90% educators ahead of 3.75% award increase and Wages were flat due to 2,000,000 expec
Slide 13: People
PEOPLE1 Job vacancies vs applications Nido has continued to manage ongoing sector wide challenges with recruitment and retention 1,637 1,700 to minimise the impact on quality and 1600 1,398 1,500 performance 1400 1,300 1200 1,821 Employees 1,100 1000 900 800 71% Permanent employees 805 700 600 500 4
Slide 14: 03 CY24 Forecast
03 CY24 FORECAST Treeby South WA
Slide 15: CY24 Forecast
CY24 FORECAST Performance ($m)1,2 CY24F Prospectus Change Centre revenue 160.9 161.2 (0.3) (0%) Forecast full year Centre Centre EBITDA 33.1 33.6 (0.5) (1%) EBITDA of $33.1m is consistent with Prospectus Net support office costs (11.8) (12.3) 0.5 4% Establishment fees 1.9 5.4 (3.5) (65%) Developer-l
Slide 16: Centre Performance Half-Yearly Phasing
CENTRE PERFORMANCE HALF-YEARLY PHASING Centre performance ($m)1 CY24F H1 H2 Change Centre EBITDA is forecast to increase in the second half Centre revenue 158.0 72.3 85.7 19% • 9% increase in days of learning Other Centre revenue 2.9 1.4 1.5 7% (seasonal growth trends) Total Centre revenue 160.9 73.
Slide 17: 04 Incubation
04 INCUBATION
Slide 18: Potential Acquisitions
POTENTIAL ACQUISITIONS Occupancy1 85% 80% Up to 10 of 13 open centres may reach 79% 78% acquisition metrics by 30 June 2025 77% 70% Up to 4 centres may achieve 68% acquisition metrics prior to December 2024 56% 54% 51% 50% Call options are triggered upon the following acquisition metrics: • average
Slide 19: Pipeline and Growth
PIPELINE and GROWTH Unprecedented delays in construction since the onset of COVID-19 were expected to Number of centres dissipate in 2024 but have continued 70 With the reduction in new homes being built, 61 costs are stabilising, and in some cases, 18 9 reducing and we are seeing increased 47 avail
Slide 20: What Nido Could Look Like in Circa 5 Years
WHAT NIDO COULD LOOK LIKE IN CIRCA 5 YEARS 52 Centres owned by Nido (excluding potential acquisitions) 2024 $635K EBITDA* forecast per Centre $33.1m forecast Centre EBITDA 150 Centres owned by Nido $730K EBITDA* forecast per Centre 2029 $110m forecast Centre EBITDA 20
Slide 21: Questions
QUESTIONS Duncraig WA
Slide 22: Appendices
APPENDICES
Slide 23: Appendix I: Glossary
Appendix I: GLOSSARY Term Definition / Meaning CY24F Latest CY24 Forecast. It does not include the impact of acquisitions that may occur in in the period Prospectus Nido IPO Prospectus Forecast dated 20 September 2023 EBITDA* Total Group Earnings before Interest tax depreciation and amortisation bef
Slide 24: Appendix II: Financial Statements
Appendix II: FINANCIAL STATEMENTS Condensed consolidated half-year statement of profit or loss 30 June 30 June 30 June 30 June and other comprehensive income for the half year ended 30 2024 2023 AASB16 Reconciliations 2024 2023 June 2024 #039;000 #039;000 #039;000 #039;000 Revenue 75,492 34,665 Reported EBITDA
Slide 25: Appendix II: Financial Statements
Appendix II: FINANCIAL STATEMENTS Condensed consolidated half-year statement of financial 30 June 31 December Condensed consolidated half-year statement of 30 June 30 June position as at 30 June 2024 2024 2023 cashflow for the half year ended 30 June 2024 2024 2023 #039;000 #039;000 #039;000 #039;000 ASSETS Cas
Slide 26: Appendix III: Additional Information
Appendix III ADDITIONAL INFORMATION
Slide 27: About Nido
ABOUT NIDO What does Nido do? Nido owns, operates and manages childcare centres (Early Schools) and manages the development of new Early Schools) How does Nido generate revenue? • Childcare fees from operating and owning 52 Early Schools • Various Government funding for Kindergarten and Service base
Slide 28: Nido (ASX:NDO) Italian for Nest
NIDO (ASX:NDO) “KNEE-DOH" ITALIAN FOR NEST “ The world we are building for tomorrow starts with the Teachers of today” Our Purpose Our Mission Our Vision To support teachers To create an environment To build the capacity of the to rise where people feel happy world’s teachers, so and make a and fulf
Slide 29: Nido Early School – Thornlie WA Built 2023
NIDO EARLY SCHOOL – THORNLIE WA BUILT 2023 29
Slide 30: Nido Early School – Coburg North Built 2022
NIDO EARLY SCHOOL – COBURG NORTH BUILT 2022 30
Slide 31: Why is Nido Unique?
WHY IS NIDO UNIQUE? Incubation strategy Purpose built Consistent growth Nido has developed a All Nido’s Early Schools Nido has access to a de- greenfield incubation are designed by Nido and risked acquisition strategy to mitigate risks managed by Nido from pipeline of 110+ Nido associated with the s
Slide 32: Explaining the Benefits of Nido Incubation
EXPLAINING THE BENEFITS OF NIDO INCUBATION The incubator bears the development and trade-up risk Once acquisition metrics are during the incubation phase whilst paying Nido $250K to achieved, Nido can exercise its open the centre and $120K per annum to manage the centre call option to acquire the ce
Slide 33: Nido and NAED Alignment
NIDO AND NAED ALIGNMENT Nido NAED Terms of NAED debt Equity Terms NAED is the primary incubator and funded to • $25m debt ceiling • $30m equity ceiling open 100 centres for Nido to acquire: • 6 years • Any dividend or early • 8% interest (PIK) repayment of debt is 60% • Initially funded by 50% equit
Slide 34: Early Education Is Critical to Building an Educated Nation
EARLY EDUCATION IS CRITICAL TO BUILDING AN EDUCATED NATION AND SUPPORTING WORKFORCE PARTICIPATION The percentage of working-age women reached 62.5% in March 2023. The growing level of female Productivity participation in the labor force (and the significant barrier to working that “caring for childr