Embark Early Education Limited · ASX:EVO
Embark Early Education — Investor Presentation (March 2023)
18 slides from Embark Early Education's investor presentation, Mar 1, 2023
Slide 1: 2022 Full Year Results Investor Presentation
2022 Full Year Results Investor Presentation
Slide 2: Disclaimer
Disclaimer The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Embark Education Group Limited (“Embark Education”) for the curre
Slide 3: FY2022 Setting the Path Forward
FY2022 SETTING THE PATH FORWARD • NZ business sold at the end of September • Balance sheet substantially strengthened • Australian business continues to show strong growth
Slide 4: FY22 Overview
FY22 Overview NEW ZEALAND BUSINESS SOLD AT END SEPTEMBER • Challenging operating conditions in New Zealand since Covid-19. Extent and timing of recovery post Covid-19 highly uncertain. • Loss on disposal of $42.7 million. • Cash proceeds of $39.8 million. MEDIUM TERM NOTES (MTNs) FULLY REPAID • A$35
Slide 5: Financial Summary
Financial Summary STRONG PERFORMANCE FROM CONTINUING OPERATIONS Consolidated Statement of Comprehensive Income • 35% revenue increase in 2022 FOR THE YEAR ENDED 31 DECEMBER 2022 YEAR YEAR 31 DECEMBER 2021 31 DECEMBER 2022 (RESTATED) $'000 $'000 • 130% higher profit before net finance Continuing oper
Slide 6: Balance sheet strengthened after sale of NZ business
Balance sheet strengthened after sale of NZ business Consolidated Statement of Financial Position As at 31 December 2021 AS AT AS AT 31 DECEMBER 2022 31 DECEMBER 2021 • No borrowing at 31 December 2022 as ASSETS $'000 $'000 Medium Term Notes fully repaid Current assets Cash and cash equivalents 17,2
Slide 7: Financial Highlights
Financial Highlights AUSTRALIAN CENTRES (FY2022 v FY2021) NZD Million 70 60 50 40 30 20 10 0 Revenue Operating Expenses Underlying Centre EBITDA FY2022 FY2021
Slide 8: Australia
Australia • Average 2022 Centre Occupancy of 80% Monthly Occupancy Wage to Revenue Ratio 90.00% 70.00% 85.00% 60.00% 50.00% 80.00% 40.00% 75.00% 30.00% 70.00% 20.00% 65.00% 10.00% 60.00% 0.00% 2022 2021 2022 2021
Slide 9: Board of Directors
Board of Directors RENITA GARARD JOINS THE BOARD AS INDEPENDENT DIRECTOR Hamish Stevens Chris Scott Renita Garard Independent Director Managing Director Independent Director Chair of the Board Executive Director (Non-Independent) Hamish has held independent directorships on several Chris Scott has o
Slide 10: Board of Directors
Board of Directors Kim Campbell Adrian Fonseca Independent Director Independent Director Chair of Remuneration & People Committee Chair of Audit and Risk Committee Kim Campbell attended the University of Adrian Fonseca attended the University of Melbourne completing a Canterbury completing a Bachelo
Slide 11: Strategy and Outlook
Strategy and Outlook
Slide 12: Encouraging Start to 2023
Encouraging Start to 2023 • 2022 started slowly due to lingering Covid-19 effects • Occupancy in January (74.0%) and February 2023 (78.0%) higher than in January (70.6%) and February 2022 (73.0%) JANUARY FEBRUARY 74.0% 78.0% 70.6% 73.0%
Slide 13: Acquisitions to Ramp Up
Acquisitions to Ramp Up • 24 centres in Australia - one Australian centre acquired in July 2022 • Uncertainty about recovery of NZ operations curtailed expansion in Australia • With NZ business sold, Embark is now able to ramp up acquisitions in Australia
Slide 14: Appendix
Appendix
Slide 15: Statement of Comprehensive Income
Statement of Comprehensive Income (UNAUDITED) YEAR YEAR 31 DECEMBER 2021 31 DECEMBER 2022 (RESTATED) $'000 $'000 Continuing operations Childcare fees 19,807 15,569 Government funding 39,713 28,445 Total revenue 59,520 44,014 Expenses Employee benefits expenses (37,144) (28,956) Building occupancy ex
Slide 16: Statement of Financial Position
Statement of Financial Position (UNAUDITED) AS AT AS AT 31 DECEMBER 2022 31 DECEMBER 2021 $'000 $'000 ASSETS Current assets Cash and cash equivalents 17,299 47,579 Funding receivable 614 - Current tax assets 196 - Trade and other receivables 3,018 3,121 Total current assets 21,127 50,700 Assets clas
Slide 17: Statement of Cash Flows
Statement of Cash Flows (UNAUDITED) YEAR YEAR 31 DECEMBER 2021 31 DECEMBER 2022 (RESTATED) $'000 $'000 Cash flows from operating activities Receipts from childcare fees 48,637 51,754 Receipts from government funding 85,035 109,606 Government grants received (Wage subsidy & JobKeeper) 816 276 Payment
Slide 18: Glossary
Glossary Term Definition EBITDA Earnings before interest, taxation, depreciation and amortisation. Earnings before interest, taxation, depreciation and amortisation less the effects of NZ IFRS 16: Leases, gains and losses on the sale or closure of businesses, acquisition and integration Underlying E
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