G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (November 2011)
20 slides from G8 Education's investor presentation, Nov 10, 2011
Slide 1: Institutional Investors Presentation
For personal use only Institutional Investors Presentation G8 Education Limited (ASX:GEM) November 2011
Slide 2: Overview
Overview For personal use only G8 Education’s child care portfolio comprises: Australia 132 owned child care centres 6 centre acquisition in South East Queensland Singapore 56 franchised child care centres 16 franchisees seeking premises 7 owned child care centres 13 operated child c
Slide 3: A portfolio of outstanding child care brands
A portfolio of outstanding child For personal use only care brands: • Early Learning Services • World of Learning • Bourne Learning • Community Kids • Holiday Club • Kindy Patch • Headstart • Kids Corner • Cherie Hearts • Focus on the importance of education in child care • Make good centres great t
Slide 4: Guidance for 2011
For personal use only Guidance for 2011 Financial year ending 31 December 2011 Page 4
Slide 5: 2011 Guidance - reaffirmed
2011 Guidance - reaffirmed For personal use only G8 Education Limited has a calendar financial year. The group’s previous guidance for the 2011 financial year is reaffirmed. 2011 Guidance for 2011 Guidance for 2011 Guidance for the Australia Singapore Group AUD $ million AUD $ million** AUD $ millio
Slide 6: Acquisition Update
Acquisition Update For personal use only • Acquisition of 6 centres in South East Queensland is unconditional with respect to due diligence but remains subject to conditions precedent of an administrative nature (such as licensing) • Financial close: December 2011 • Purchase price: $8.2 million • Ce
Slide 7: Acquisition Improvements
Acquisition Improvements For personal use only Revenue EBIT EBIT margin ($’000) ($’000) (%) 1H10 16,013 2,261 14.1% ELS 1H11 16,545 2,561 15.5% (settled December 2007) Variance (%) 3.3% 13.3% 10.0% 1H10 11,752 1,230 10.5% Payce 1H11 12,941 2,180 16.8% (settled March 2010) Variance (%) 10.1% 77.2% 60
Slide 8: Financial Improvements
Financial Improvements For personal use only Since 30 June 2011 the following key drivers of the business have changed: • Increase in Long Day Care fees effective from July 2011 of 4.3% against a forecast of 3.5% • Increase in Award wages effective from July 2011 of 3.5% against a forecast of 4.0% •
Slide 9: Organisation Chart
For personal use only Organisation Chart Page 9
Slide 10: Group Structure
Group Structure For personal use only Matthew Brian Bailison Andrew Kemp Chris Scott Susan Forrester Jenny Hutson Reynolds Board of Directors Non‐Executive Non‐Executive Managing Chairperson Non‐Executive Non‐Executive Director Director Director Director Director Chris Sacre Chris Scott Currently Re
Slide 11: Australian Operations
Australian Operations For personal use only BOARD OF DIRECTORS Managing Director Chief Financial Chief Operating Officer Officer IT & Marketing Business Support Group Accountant General Manager HR Manager Payroll Manager Communications Manager Manager Manager HR Assistants Marketing Admin & Payroll
Slide 12: Singapore Operations
Singapore Operations For personal use only BOARD OF DIRECTORS Managing Director Chief Operating Officer Deputy Chief Operating Officer General Manager, General Manager, General Manager, Head, Finance & General Manager, Curriculum & Franchise & Operations Acquisitions IT Services Marketing Senior Man
Slide 13: Directors profiles
For personal use only Directors profiles Page 13
Slide 14: Board of Directors
Board of Directors For personal use only Jenny Hutson, B.Com, LLB, FAIM, Chairperson Merchant banker and fund manager Experienced corporate adviser and company director Over 20 years experience in capital markets involving listed companies Member of the G8 Education Audit Committee. Chris Scott, B.E
Slide 15: Board of Directors
Board of Directors For personal use only Brian Bailison B.Com, B.Acc (Cum Laude), ACA, Non‐Executive Director Over 15 years experience in finance, corporate finance and operations from senior roles in South Africa and Australia including senior positions at Rand Merchant Bank Limited and the Ivany I
Slide 16: Singapore Update
For personal use only Singapore Update Page 16
Slide 17: Cherie Hearts
Cherie Hearts For personal use only • The legal proceedings between G8 Education Limited and the Cherie Hearts Group, Sam Yap and Gurchran Singh in relation to various issues involving the contractual arrangements between the parties has been heard before Her Honour Justice Prakash in Singapore. The
Slide 18: Capital structure
Capital structure For personal use only Shares on issue Current shares on issue* 187,418,479 Debt Current debt – National Australia Bank $36.8 million Dividend Policy Quarterly dividends at 50% ‐ 60 % payout ratio Currently 1 cent per share per quarter. Dividends to be fully franked from December 20
Slide 19: Substantial shareholders
Substantial shareholders For personal use only Shareholder Number of Shares Percentage holding Perpetual Nominees Limited and subsidiaries 28.2 million 15.04% Wallace Infrastructure Pty Ltd 24.0 million 12.82% Paradice Investment Management Pty Ltd 14.8 million 7.84% Northcape Capital Pty Ltd 16.5 m
Slide 20: Disclaimer
Disclaimer For personal use only This presentation has been prepared by G8 Education Limited based on the information available to them. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions c