Slide 1: G8 Education – Full Year Results Presentation
For personal use only G8 Education – Full Year Results Presentation Year Ended 31 December 2016 G8 Education Limited (ASX:GEM) 20 February 2017
Slide 2: Key Messages 2016
Key Messages 2016 For personal use only • Revenue up 10.2% from prior year driven by fee increases and acquisitions in 2015 and 2016 YOY % Key Financial Highlights FY 2016 FY 2015 Growth • Underlying EBIT up 10.5%, driven by good organic #039;000 #039;000 growth in H2 and acquisitions performing in line w
Slide 3: Operational Update
LFL Occupancy For personal use only Operational Update 3
Slide 4: Group Centre Network
Group Centre Network For personal use only Centre Portfolio Australian centres Singapore centres • As at 31 December 2016 the Group operated 490 centres in Australia and 20 centres in Singapore bringing the total licenced places to 38,713 20 20 18 18 18 • During 2016 G8 Education settled 19 centres
Slide 5: FY 2016 Financial Performance
FY 2016 Financial Performance For personal use only Consolidated Income Statement 2016 2015 % • Operating Revenue increased by $88.2m (12.8%), #039;000 #039;000 driven by growth in LFL parent fee revenue (net of Revenue from continui ng opera tions 774,970 686,747 discounts) of $27.9m and acquisitions. Th
Slide 6: Like for Like Centre Performance Breakdown
Like for Like Centre Performance Breakdown For personal use only Change vs Change vs Change vs • H2 saw a significant improvement in EBIT Like for Like Centre Financials H1 2016 pcp H2 2016 pcp 2016 pcp Parent fees (net of discounts) 299,680 17,983 335,180 9,886 634,860 27,868 performance for LFL ce
Slide 7: Occupancy - LFL
Occupancy - LFL For personal use only Occupancy - Like for Like • Overall national supply increased by 3.1% in 2016, with 7,009 LDC centres operating as at 31 December 2016. No Change in State 2016 2015 This is slightly higher than growth in market demand of Centres pcp 2%-2.5% ACT 9 79.68% 87.91% -
Slide 8: Support Cost per Licensed Place
Support Cost per Licensed Place For personal use only 2010 2011 2012 2013 2014 2015 2016 Number of Places 6,304 9,868 12,661 19,085 32,782 36,200 38,713 Support Office Cost per Licensed Place $710 $523 $520 $485 $455 $439 $403 • The Group continued to generate scale and productivity savings in 2016,
Slide 9: Balance Sheet
Balance Sheet For personal use only 31 December 2016 31 December 2015 #039;000 #039;000 • $167m reduction in Cash mainly relates to the ASSETS repayment of the SGD unsecured note associated Current assets Cash and cash equivalents 26,467 193,840 with the proposed Affinity Education acquisition Trade and o
Slide 10: Cash Flow
Cash Flow For personal use only 31 December 31 December 2016 2015 #039;000 #039;000 Cash flows from operating activities Receipts from customers 769,277 676,870 Payments to suppliers and employees • Cash conversion remained strong at 97%, calculated as (601,491) (516,762) Interest received 1,198 2,861 ope
Slide 11: Key Ratios
Key Ratios For personal use only • There has been a slight deterioration in Fixed Charges Cover, Key Financial Ratios 2016 2015 primarily driven by H1 performance, while ratios related to debt have been impacted by timing of acquisitions in H2 Fixed Charges Cover 2.05 2.19 Net Debt to Underlying EBI
Slide 12: Capital Structure
Capital Structure For personal use only G8’s capital structure as at 31 December 2016 consisted of the following Debt and Equity instruments: Class Maturity Principle/Issuance Cost Debt Senior Unsecured Note 07-Aug-19 A$70m 7.68% Senior Unsecured Note 19-May-19 S$270m 4.75% Senior Unsecured Note 17-
Slide 13: Share Placement – Details of the Issue
Share Placement – Details of the Issue For personal use only • G8 Education Limited has entered into a binding Term Sheet in relation to a share placement with CFCG Investment Partners International (Australia) Pty Ltd (“CIPI”), the Manager of First Capital Australia Education Master Fund. CIPI is a
Slide 14: Share Placement – Use of Proceeds
Share Placement – Use of Proceeds For personal use only • The proceeds of the placement will be used as follows: • Paying down the $50 million A$ bond facility that is due for repayment in February 2018, as well as $40 million of the Bankwest working capital facility that was utilised to fund acquis
Slide 15: Key Ratios
Key Ratios For personal use only Key Financial Ratios HY16 HY15 • Reduced operating margins have flowed through to Fixed Charges Cover the Group’s ratios Net Debt to Underlying EBITDA (rolling 12 months) • The Group continues to have significant head room in relation to its financial covenants Net D
Slide 16: G8 Strategic Framework
G8 Strategic Framework For personal use only Our Purpose Why are we here aside To Provide Engaging Care and Education Services that Add Value to Families of making money? Our Goals Where are we heading? By December 2019 - $1.0bn Revenue, $0.40 EPS, 65% team engagement, 65% customer engagement Our St
Slide 17: 2017 Outlook
2017 Outlook For personal use only • January trading performance was slightly ahead of budget and last year, although occupancy challenges in ACT, North Queensland and WA remain. Overall occupancy is broadly in line with last year • Delivery of the Group’s strategy is on track, with new KPI and Ince
Slide 18: Thank You – Questions?
For personal use only THANK YOU Questions?