G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (November 2014)
36 slides from G8 Education's investor presentation, Nov 26, 2014
Slide 1: G8 Education Limited (ASX:GEM) Investor Presentation
For personal use only G8 Education Limited (ASX:GEM) Investor Presentation November 2014
Slide 2: Agenda
Agenda For personal use only 1 Overview 3 2 Brands 16 3 Competitive Strengths 19 4 Business Strategies 21 5 Financial Information 23 6 Appendix: Government Regulation, Funding & Policy 30 2
Slide 3: Overview
For personal use only 3 OVERVIEW
Slide 4: G8 Education's Vision & Mission
G8 Education’s Vision & Mission For personal use only G8 Education’s mission is to be Australasia's leading provider of high quality, developmental and educational child care services. G8 Education aims to achieve this through: A portfolio of outstanding early childhood education brands A focus
Slide 5: Overview
Overview For personal use only G8 Education Limited (‘G8 Education’) is an Australasian childcare services provider that is listed on the Australian Stock Exchange (‘ASX’) under the ticker code ‘GEM’, with a market capitalisation of $1.6 billion. We have a total portfolio of 440 owned childcare and
Slide 6: Australian Corporate Group Structure
Australian Corporate Group Structure For personal use only G8 EDUCATION LIMITED (FORMERLY EARLY LEARNING SERVICES LIMITED) ABN 95 123 828 553 ABN 95 123 828 553 RBWOL HOLDINGS PTY LTD SYDNEY COVE CHILDREN'S SYDNEY COVE CHILDREN'S STERLING EARLY STERLING EARLY SYDNEY COVE PROPERTY CENTRE PTY LTD CENT
Slide 7: Singapore Corporate Group Structure
Singapore Corporate Group Structure For personal use only ABN 95 123 828 553 G8 SINGAPORE PTE LTD 201202281N CHERIE HEARTS CHERIE HEARTS OUR JUNIORS GLOBAL BRIGHT JUNIORS PTE HOLDINGS PTE LTD CORPORATE PTE LTD SCHOOLHOUSE PTE LTD LTD 201022668D 201024092C 2013 05374M 201133819W CHERIE HEARTS @ BRIGH
Slide 8: Significant Events & Milestones
Significant Events & Milestones For personal use only (Mar ‘10) (Sep ‘12) (Nov ‘12) Early Learning Services (Dec ‘10) G8 Education successfully completed Settlement of Pacific Group Limited merges with Payce The Group a placement to institutions of child care acquisition. Child Care Pty Ltd. The f
Slide 9: Significant Events & Milestones
Significant Events & Milestones For personal use only (June ‘13) (Feb ‘13) (Apr ’13) Included in (Oct ‘13) (Aug ’13) Successfully Settlement of Treehouse the S&P/ASX Successful Completion of completed a Geelong and Bellnore Drive 200 Index placement of 26 Unsecured Note Placement of 24 childcare
Slide 10: Significant Events & Milestones
Significant Events & Milestones For personal use only (July ‘14) (Aug ‘14) (October ‘14) (Apr ‘14) (Mar ‘14) The Group The Group The Group The Group The Group announces the announces the announces the announces the announces the acquisition of acquisition of acquisition of acquisition of acquisition
Slide 11: Board of Directors
Board of Directors For personal use only Jennifer Hutson Chris Scott Brian Bailison Andrew Kemp Susan Forrester B.Com, LLB, FAIM B.Econ. (Hons) B.Com., B.Acc (Cum Laude), ACA B.Com., CA BA, LLB(Hons) EMBA, FAICD Chairperson Managing Director Non Executive Director Non Executive Director Non Executiv
Slide 12: G8 Education Childcare and Education Centre Portfolio
G8 Education Childcare and Education Centre Portfolio For personal use only 514 37 18 37 Singapore (Franchised) * Singapore (Owned) 300 40 236 Australia (Contracted and not yet settled) 18 206 61 422 64 8 Australia (Owned) 7 234 88 167 135 88 CY10 CY11 CY12 CY13 CY14* Note: As at 30 November 2014 12
Slide 13: Locations – Australia
Locations – Australia For personal use only 422 centres owned across Australia. 459 37 centres under contract and not yet settled. 81 Queensland 70 Western Australia 24 171 NSW South Australia 10 ACT 102 Victoria 1 Tasmania 13
Slide 14: Locations – Singapore
Locations – Singapore For personal use only 18 centres owned North across Singapore 4 owned 10 franchised West East 37 5 owned 7 owned Central centres franchised 9 franchised 2 owned 9 franchised and operated across Singapore 9 franchised 14
Slide 15: Childcare and Education Centre Occupancy
Childcare and Education Centre Occupancy For personal use only 100% 90% 80% 70% 60% Occupancy 50% 40% 80% 84% 75% 77% 30% 20% 10% 0% CY2010 CY2011 CY2012 CY2013 15
Slide 16: Brands
For personal use only 16 BRANDS
Slide 17: Brands - Singapore
Brands - Singapore For personal use only Owned G8 Education acquired 7 centres in 2011, with a further centre being acquired in 2012. G8 Education took ownership of a further 10 centres in 2013. Currently 18 centres are owned by G8 Education across Singapore. Franchised Centres The model under which
Slide 18: Brands - Australia
Brands - Australia For personal use only BRAND # CENTRES Bambinos 9 Buggles 14 Casa Bambini 3 Creative Garden 5 Community Kids 79 Eclipse 6 Early Learning Services 46 First Grammar 26 Great Beginnings 27 Headstart 19 Jellybeans 22 Kinder Haven 16 Kool Kids 9 Kindy Patch 35 Little Einsteins 4 Learnin
Slide 19: Competitive Strengths
For personal use only COMPETITIVE STRENGTHS 19
Slide 20: Competitive Strengths
Competitive Strengths For personal use only Multi-brand portfolio strategy G8 Education adopts a multi-brand approach, operating across 21 brands in Australia and 3 brands in Singapore to cater to the needs of the local community Revenue underpinned by supportive government * policies Supportive gov
Slide 21: Business Strategies
For personal use only BUSINESS STRATEGIES 21
Slide 22: Business Strategies
Business Strategies For personal use only Quality Care and Acquisition Strategy Employees Community Education G8 Education has a G8 Education believes in G8 Education is G8 Education provided comprehensive continually investing in committed to care and education to methodology in its facilities to p
Slide 23: Financial Information
For personal use only FINANCIAL INFORMATION 23
Slide 24: Track Record of Financial Performance
Track Record of Financial Performance For personal use only Total Revenue (AUD$'m) EBITDA (AUD$'m) 275 53 180 187 32 32 143 27 118 19 67 8 CY10A CY11A CY12A CY13A IH13 IH14 CY10A CY11A CY12A CY13A IH13 IH14 EBITDA Margins (%) Net Profit After Tax (AUD$'m) 31 18.7% 19.2% 17.7% 17.3% 15.8% 19 12.0% 17
Slide 25: Key Balance Sheet Statistics
Key Balance Sheet Statistics For personal use only Total Assets (AUD$'m) Total Debt (AUD$'m) 270 791 482 114 269 188 49 36 115 16 CY10A CY11A CY12A CY13A IH14 CY10A CY11A CY12A CY13A IH14 Cash and Cash Equivalents Total Equity (AUD$'m) (AUD$'m) 431 154 114 305 182 115 84 22 7 11 CY10A CY11A CY12A CY
Slide 26: Prudent Capital Management
Prudent Capital Management For personal use only Net Debt/Total Equity (x) Total Secured Debt/Total Assets (%) 0.27 19.3% 18.3% 0.22 13.5% 0.15 9.5% 0.10 0.0% - 0.00 CY10A CY11A CY12A CY13A IH14 CY10A CY11A CY12A CY13A IH14 Net Debt/EBITDA (x) 1.80 EBITDA/Interest Expenses (x) 12.2 12.6 11.0 1.08 0.
Slide 27: Debt Profile
Debt Profile For personal use only G8 Education has raised $340 million in debt through the issue of bonds. The key commercial terms are summarised as follows: Debt Maturity Date Coupon $70 million 7 August 2019 7.65% pa (fixed) $50 million 17 February 2018 BBSW + 3.90 % pa (variable) SGD $175 milli
Slide 28: Debt Maturity Profile
Debt Maturity Profile For personal use only Million AUD $ 250 200 150 100 50 0 FY14 FY15 FY16 FY17 FY18 FY19 Years 28
Slide 29: Thank You – Questions?
For personal use only THANK YOU Questions? 29
Slide 30: Appendix: Government Regulation, Funding & Policy
For personal use only APPENDIX: GOVERNMENT REGULATION, FUNDING & POLICY 30
Slide 31: Overview - Singapore
Overview - Singapore For personal use only Early Childhood and Development Agency The Early Childhood and Development Agency serves as the regulatory and developmental authority for the early childhood sector in Singapore, overseeing all aspects of children's development below the age of 6, across b
Slide 32: Government Funding - Singapore
Government Funding - Singapore For personal use only Childcare subsidies To enhance the affordability of childcare services in Singapore, the Singaporean Government provides child care subsidies to working and non-working mothers whose children are enrolled in a licensed centre. From 1 April 2013, t
Slide 33: Government Regulation - Australia
Government Regulation - Australia For personal use only National Quality Framework The recent introduction of the National Quality Framework has seen a large change to the regulatory environment of the childcare industry in Australia. Introduced in January 2012, the framework replaces existing State
Slide 34: National Quality Standard
National Quality Standard For personal use only 34
Slide 35: Government Funding - Australia
Government Funding - Australia For personal use only The Commonwealth Government provides fee assistance to families to increase the accessibility of childcare. Government investment in childcare has increased significantly over the last decade (Figure 2) and Commonwealth Government funding is expec
Slide 36: Government Funding - Australia
Government Funding - Australia For personal use only Figure 2: Total Government expenditure including State and Territory Figure 3: Actual and estimated Commonwealth Government Child Care Government funding, 2005-06 to 2011-12 ($’M) Benefit and Child Care Rebate funding, 2003-04 to 2016-17 Source: A