G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (November 2010)
21 slides from G8 Education's investor presentation, Nov 24, 2010
Slide 1: Market Briefing
For personal use only Market Briefing G8 Education Limited (ASX:GEM) November 2010
Slide 2: Overview
Overview For personal use only Following the acquisition of Cherie Hearts and the completions of the Kindy Patch transaction, G8 Education’s child care portfolio will comprise: Australia 119 owned child care centres 21 managed child care centres FY11 Revenue: A$115M FY11 EBIT: A$17M Sing
Slide 3: Key Statistics
Key Statistics For personal use only Current share price $0.90 (at close of trade on 22 November 2010) Market capitalisation based on 150.3 million shares on issue $135.3 million (at close of trade on 22 November 2010) Shares on issue during 2010 162.3 million (following issue of announced acquisiti
Slide 4: The vision of G8 Education
The vision of G8 Education For personal use only • A portfolio of outstanding child care brands: • Cherie Hearts • Early Learning Services • World of Learning • Bourne Learning • Community Kids • Holiday Club • Kindy Patch • Focus on the importance of child care • Make good centres great through foc
Slide 5: G8's mission
G8’s mission For personal use only Our mission is to be Australasia’s leading provider of high quality, developmental and educational child care services, and to achieve this through growth and sustainability: Quality Education & Care Employees • To nurture and develop • To commit to employee childr
Slide 6: Singapore Update
For personal use only Singapore Update Page 6
Slide 7: Acquisition Update: Cherie Hearts
Acquisition Update: Cherie Hearts For personal use only • On 28 October 2010, G8 Education announced the acquisition of Cherie Hearts, Singapore’s largest private provider of child care services. • Chris Scott, Managing Director of G8 Education will oversee the Singapore operations, as well as exist
Slide 8: Acquisition consideration
Acquisition consideration For personal use only • The purchase price of Cherie Hearts is A$19.2M*(including the assumption of debt). • The forecast EBIT for Cherie Hearts for the 2011 calendar year is A$4.3M*. This represents: • an EBIT purchase price multiple of 4.47 times; and, • a tax affected mu
Slide 9: Singapore Centres
Singapore Centres For personal use only Location Total centres Owned centres – 100% ownership by Cherie Hearts 18 Franchised centres in operation 48 Franchised centres pending confirmation of licence 23 Enrichment Program & Teacher training company Total centres 89 Total licence capacity 5,208 Page
Slide 10: The anatomy of a child care centre in Australia and Singapore
The anatomy of a child care centre in Australia and Singapore For personal use only Australia % of revenue Singapore % of revenue Licensed places 75 88 Occupancy 80% 90% Fee for service A$65 per day S$720 per month Days 250 days 12 months Revenue per centre A$975,000 S$685,000 Employee costs A$585,0
Slide 11: Supportive environment
Supportive environment For personal use only • The Singaporean Government introduced a Baby Bonus scheme in 2001 • In 2008, the Government announced the enhanced Marriage and Parenthood Package which enhanced the one off baby bonus and the Government matching contribution to bank accounts opened for
Slide 12: Cherie Hearts: Awards
Cherie Hearts: Awards For personal use only • Cherie Hearts Group has received more than 30 national awards over the past 5 years: Page 12
Slide 13: Australia Update
For personal use only Australia Update Page 13
Slide 14: Australian operations
Australian operations For personal use only • The trading environment continues to be buoyant with the Australian centres’ occupancy for the year expected to average 76-80%. • The Kindy Patch transaction will contribute to G8 Education from 1 January 2011, as per our earlier guidance. • The roll-out
Slide 15: Capital structure
Capital structure For personal use only Shares on issue 150,304,537 Shares to be issued as consideration for announced Kindy Patch transaction 12,000,000 (no shares to be issued for Cherie Hearts transaction) Options over unissued shares 250,000 (250,000 vest in 2012) held by Chris Sacre Debt Curren
Slide 16: Australian Centres
Australian Centres For personal use only Total Australian centres State (assuming completion of all announced acquisitions as at 22 November 2010) Queensland 70 New South Wales 38 Victoria 9 Australian Capital Territory 5 South Australia 15 Western Australia 2 Tasmania 1 Total centres (including man
Slide 17: 2011 Guidance
2011 Guidance For personal use only 2010 Guidance 2011 Guidance 2011 2011 Guidance for Australian for Australian Guidance for for the Group centres centres Cherie Hearts AUD$ million AUD$ million AUD$ million AUD$ million Revenue 64.78 115.47 16.70 132.17 Expenses 57.17 98.19 12.40 110.59 Earnings B
Slide 18: Board and Management Team
Board and Management Team For personal use only Jenny Hutson, Chris Scott, Chairperson Managing Director B.Com, LLB, FAIMM, MAICD B.Econ (Hons) Craig Chapman, Sam Yap, Chief Executive Officer Non-Executive Director B. Com., A.S.C.P.A., C.S.A. B. Sc (Hons) Brian Bailison, Gurchran Singh Non-Executive
Slide 19: Substantial shareholders
Substantial shareholders For personal use only Shareholder Number of Shares Percentage holding Wallace Infrastructure Pty Ltd 28.9 million 19.2% Perpetual Nominees Limited and subsidiaries 21.1 million 14.1% Paradice Investment Management Pty Ltd 9.8 million 6.5% *As notified to ASX in Substantial S
Slide 20: Contacts
Contacts For personal use only Jenny Hutson, Chris Scott, Chairperson Managing Director T: 07 3009 9888 T: 07 5581 5306 E: jhutson@wellcap.com.au E: chris.scott@g8education.com Craig Chapman, Chief Executive Officer T: 07 5581 5341 E: craig.chapman@g8 education.com Page 20
Slide 21: 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