G8 Education Limited · ASX:GEM

G8 Education — Debt Investor Presentation (July 2013)

17 slides from G8 Education's debt investor presentation, Jul 22, 2013

  1. Slide 1: Management Presentation: Senior Unsecured Notes Offering

    For personal use only G8 Education Limited Management Presentation Senior Unsecured Notes Offering 22 July 2013 Investing in the future of childcare

  2. Slide 2: Agenda

    For personal use only Company Discussion Page 3 Financial Discussion Page 9 Credit Highlights Page 15 Questions Page 17 Investing in the future of childcare

  3. Slide 3: Company Discussion

    Click to edit Master title style For personal use only Company Discussion Page 3

  4. Slide 4: Company History

    Company History  G8 Education Limited (ASX:GEM) is Australia’s largest for profit provider of high quality, For personal use only developmental and educational child care services  G8 Education Limited currently has a portfolio of 201 childcare centres, either owned or contracted, in Australia and

  5. Slide 5: Business Model

    Business Model G8 Education Limited’s business model is as operator and consolidator of childcare centres and maintains a multi-brand strategy. For personal use only Operations  G8 Education Limited is an experienced and focused operator of childcare centres and closely manages the key operational

  6. Slide 6: Business Model (continued): Acquisition Strategy

    Business Model (continued) Acquisition Strategy  Acquire centres which are in operation For personal use only  G8 Education Limited does not acquire greenfield sites, removing significant occupancy and construction risk  Acquisitions immediately deliver cashflow and earnings to the growth  Margi

  7. Slide 7: Industry Overview

    Industry Overview  Fundamentals of the childcare industry remain strong with a demand/supply imbalance For personal use only  Strong demand for childcare services % of population attending child care underpinned by economic and 70 population changes resulting in an 60 increased attendance rate for

  8. Slide 8: Industry Outlook

    Industry Outlook  All major indicators point to a continued For personal use only positive outlook for the sector Proportion of children attending childcare  Government expenditures growing 1,500 39% year-on-year 1,450 37% 1,400 35%  Portion of children attending 33% 1,350 childcare trending up 3

  9. Slide 9: Financial Discussion

    Click to edit Master title style For personal use only Financial Discussion Page 9

  10. Slide 10: Financial Performance - Historical

    Financial Performance - Historical Financial Year 2012 Results For personal use only Consolidated 2012 2011 % Year End December 31 ($000's) ($000's) Change Revenue 179,991 142,899 26% Expenses 148,054 116,114 28% EBITDA 31,937 26,785 19% less: D&A 2,530 1,903 EBIT 29,407 24,882 18% less: Interest Ex

  11. Slide 11: Financial Performance – Historical (continued)

    Financial Performance – Historical (continued)  Underlying Revenues have increased 29% over the last financial year from $138m in 2011 to $179m in 2012 For personal use only  Like for like revenue (across 118 centres) increased 10% in 2012 $m Total Revenue 120  Underlying EBIT increased 39% over

  12. Slide 12: 1HCY13 Guidance

    G8 Education Limited – 1HCY13 Guidance  G8 Education Limited operates on a calendar financial year. In relation to the half year ended 30 June 2013, G8 Education anticipates that its underlying audit reviewed financial For personal use only result will exceed the average guidance anticipated by fou

  13. Slide 13: Cashflow: Sources and Uses of Cashflows

    Cashflow Sources and Uses of Cashflows For personal use only $m 100 $81.1m 3.69 80 13.23 60 $50.5m 19.95 40 20.85 Other investing activities $24.3m CAPEX 11.76 44.24 20 7.35 Net proceeds from borrowings Operating cash flow 16.93 17.91 0 Dividends -11.71 -1.28 Acquisition of businesses -2.73 -0.91 -3

  14. Slide 14: Debt facilities

    Debt facilities  G8 Education Limited has an existing $70m senior secured credit facility (currently For personal use only drawn to $48.5m) with BankWest. The facility will remain in place after the notes have been issued.  Future drawings under the senior secured facility will be governed by fina

  15. Slide 15: Credit Highlights

    Click to edit Master title style For personal use only Credit Highlights Page 15

  16. Slide 16: Credit Highlights

    Credit Highlights  The largest for profit operator of childcare centres in a highly fragmented sector For personal use only  Experienced and profitable operator  Disciplined consolidator  Resilient business model with demonstrated history of organic margin improvement  Strong and stable cashflo

  17. Slide 17: Questions

    Click to edit Master title style For personal use only Questions Page 17

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