Slide 1: G8 Education – Overview 1H2016
For personal use only G8 Education – Overview 1H2016 G8 Education Limited (ASX:GEM) 16 August 2016
Slide 2: Key Messages HY 2016
Key Messages HY 2016 For personal use only • Revenue up 16.2% driven by fee increases and acquisitions • Underlying EBIT up 8.5% driven by: • Additional ratio related headcount impacting Key Financial Highlights HY16 HY15 Change Q1 wages, with significantly improved performance in Q2 Revenue $361.2m
Slide 3: Portfolio Update
For personal use only Portfolio Update
Slide 4: Group Centre Portfolio
Group Centre Portfolio For personal use only Centre Portfolio Australian centres Singapore centres • The Group settled 9 centres in the period of which 20 18 18 18 6 had been contracted in Q4 2015 18 • As at 30 June 2016 the Group operated 478 centres in Australia and 20 centres in Singapore bringin
Slide 5: Operational Update
For personal use only Operational Update
Slide 6: HY Financial Performance
HY 16 Financial Performance For personal use only Consolidated Half Year Income Statement HY 2016 HY 2015 % Revenue from continuing operations #039;000 357,951 #039;000 304,546 • Operating Revenue increased by $53.4m Other Income 3,200 6,336 (17.5%) in H1 2016 with the increase Total Revenue 361,151 310,8
Slide 7: Like for Like Centre Performance Breakdown
Like for Like Centre Performance Breakdown For personal use only Like for Like Centre Financials QTR 1 HY15 QTR 1 HY16 QTR 2 HY15 QTR 2 HY16 Total Revenue 137,694 147,907 149,772 162,681 • Wage costs increased 10.0% in H1 driven by Revenue Growth 7.42% 8.62% increased ratio related headcount (5.3%),
Slide 8: Head Office Cost per Licensed Place
Head Office Cost per Licensed Place For personal use only 2010 2011 2012 2013 2014 2015 HY16 Number of Places 6,304 9,868 12,661 19,085 32,782 36,200 37,045 Support Office Cost per Licensed $710 $523 $520 $485 $455 $439 $440 Place • Support office costs per Support Office Cost per Licensed Place lic
Slide 9: Group Financial Update
For personal use only Group Financial Update
Slide 10: Balance Sheet
Balance Sheet For personal use only 30 June 2016 31 December 2015 #039;000 #039;000 • $154.0m reduction in Cash mainly relates to ASSETS the repayment of the SGD unsecured note Current assets Cash and cash equivalents 39,827 193,840 associated with Affinity Education acquisition Trade and other receivable
Slide 11: Cash Flow
Cash Flow For personal use only 30 June 2016 30 June 2015 #039;000 #039;000 Cash flows from operating activities Receipts from customers Payments to suppliers and employees 367,704 (304,098) 305,362 (241,934) • Cash conversion remained impressive at 102%, Interest received 1,051 1,537 calculated as operat
Slide 12: Capital Structure
Capital Structure For personal use only G8’s capital structure as at 30 June 2016 consists of the following Debt and Equity instruments: Issuer Class Maturity Principle/Issuance Cost Debt G8 Education Ltd Senior Unsecured Note 7 August 2019 A$70,000,000 7.675% G8 Education Ltd Senior Unsecured Note
Slide 13: Key Ratios
Key Ratios For personal use only Key Financial Ratios HY16 HY15 • Reduced operating margins have flowed through to Fixed Charges Cover 1.92x 2.01x the Group’s ratios Net Debt to Underlying EBITDA (rolling 12 months) 2.28x 2.14x • The Group continues to have significant head room in relation to its f
Slide 14: Second Half 2016 Focus Areas
For personal use only Second Half 2016 Focus Areas
Slide 15: Second Half 2016 Focus Areas
Second Half 2016 Focus Areas For personal use only • Maintain positive Q2 wage momentum • Ensure investments in training and refurbishment are offset by other cost savings • Integrate acquisition pipeline to time and budget • Refinance existing bank debt facilities 15
Slide 16: Thank You
For personal use only THANK YOU Questions?