Slide 1: G8 Education - Overview
For personal use only G8 Education - Overview G8 Education Limited (ASX:GEM) 23 May 2012
Slide 2: Overview
Overview For personal use only Following the acquisition of five separate child care groups over the past 22 months G8 Education’s child care portfolio comprises: Australia 142 owned and contracted child care centres Eight brands: Early Learning Services World of Learning Bourne Learning
Slide 3: Significant events in FY11
Significant events in FY11 For personal use only Reported a 115% increase in revenue to $142.9m through a mixture of organic and acquisition growth. Reported a profit after tax of $17.25m in FY11 compared to $3.48m in FY10 which translated into an 80% increase in EPS. Acquired an additional 53
Slide 4: G8's Vision & Mission
G8’s Vision & Mission For personal use only A portfolio of outstanding early childhood education brands Focus on the importance of early childhood education Make good centres great through focusing on outstanding early childhood education management Our mission is to be Australasia’s leading p
Slide 5: Price chart
Price chart For personal use only $1.20 3,000,000 $1.00 2,500,000 $0.80 2,000,000 $0.60 1,500,000 $0.40 1,000,000 $0.20 500,000 $0.00 0 Close Volume Page 5
Slide 6: G8 2011 Audited Results
For personal use only G8 2011 Audited Results Financial year ended 31 December 2011 Page 6
Slide 7: 2011 Audited Results
2011 Audited Results For personal use only Consolidated 2010 2011 Variance Year end 31 December ($’000) Revenue 66,549 142,899 115% Expenses (59,682) (118,017) 98% Earnings Before Interest and Tax 6,867 24,882 262% Interest (1,318) (2,188) 66% Net Profit Before Tax 5,549 22,694 309% Net Profit After
Slide 8: Return on Invested Capital
Return on Invested Capital For personal use only $AUD million Total Equity as at 31 Dec 2011 115.2 Less: Fair Value adj to Equity due to AASB 3: Business 20.6 Combinations (see note below*) Adjusted Equity as at 31 Dec 2011 94.6 Add Net Debt 22.3 Total 116.9 Assumed EBIT for CY12 as per broker estim
Slide 9: Australia
For personal use only Australia Page 9
Slide 10: Australian Centres – owned and contracted
Australian Centres – owned and contracted For personal use only State Total centres Queensland 60 New South Wales 47 Victoria 16 Australian Capital Territory 6 South Australia 13 Total centres 142 Total licence Capacity per day 10,578 Page 10
Slide 11: Australian Group Structure
Australian Group Structure For personal use only Brian Bailison Andrew Kemp Chris Scott Jenny Hutson Susan Forrester Matthew Non‐Executive Non‐Executive Managing Chairperson Non‐Executive Reynolds Board of Directors Director Director Director Director Non‐Executive Director Chris Sacre Chris Scott D
Slide 12: Australian operations
Australian operations For personal use only • The trading environment continues to be buoyant with average 2012 occupancy across centres currently exceeding 2011 levels. • The demand drivers for childcare remain strong: ▫ The 0‐5 year old population has grown by 183,000 since 2006, this increase is
Slide 13: Acquisition Improvements – FY11
Acquisition Improvements – FY11 For personal use only Revenue EBIT EBIT margin ($’000) ($’000) (%) FY10 34,173 5,826 17.05% ELS (settled Dec 2007) FY11 35,574 6,828 19.19% Variance (%) 4.10% 17.20% 12.58% FY10 23,249 3,585 15.42% Payce (settled 25 March FY11 25,362 5,067 19.98% 2010) Variance (%) 9.
Slide 14: Singapore
For personal use only Singapore Page 14
Slide 15: Singapore Centres
Singapore Centres For personal use only State Total centres Owned centres 8 Operated centres 12 Franchised centres 51 Franchisees seeking premises 10 Total centres 81 Total licence capacity per day for owned centres 618 Page 15
Slide 16: Singapore Operations
Singapore Operations For personal use only Chief Operating Officer General Manager, General Manager, General Manager, Franchise & General Manager, IT Operations Finance Marketing Operations Senior Manager, Managers (Centre Account Payable Franchise & based) (7) Marketing Curriculum Training Accounts
Slide 17: Cherie Hearts Update
Cherie Hearts Update For personal use only • The legal proceedings between G8 Education Limited and the Cherie Hearts Group, Sam Yap and Gurchran Singh in relation to various issues involving the contractual arrangements between the parties has been heard in Singapore. • Judgment was handed down on
Slide 18: Looking forward
For personal use only Looking forward Page 18
Slide 19: Looking forward
Looking forward For personal use only G8 Education continues to perform strongly and is well positioned for further growth and additional acquisitions. • An increase in the proposed annual dividend of 50% to 6 cents per share (fully franked), payable quarterly, has been announced. • Strong acquisiti
Slide 20: Capital structure
Capital structure For personal use only Shares on issue 201,627,416 Current Net Debt – National Australia Bank $23.1 million Replacement debt facility with BankWest $50.0 million Dividend Policy Quarterly dividends to 65% cash payout ratio Dividend at 1.5 cents per share per quarter fully franked Pa
Slide 21: Substantial shareholders
Substantial shareholders For personal use only Shareholder Number of Shares Percentage holding Perpetual Nominees Limited and subsidiaries 28.2 million 14.1% Wallace Infrastructure Pty Ltd 24.0 million 12.0% Northcape Capital Pty Ltd 16.7 million 8.34% Paradice Investment Management Pty Ltd 14.8 mil
Slide 22: Board of Directors
Board of Directors For personal use only Jenny Hutson, B.Com, LLB, FAIM, Chairperson Merchant banker and fund manager Experienced corporate adviser and company director Over 20 years experience in capital markets involving listed companies Member of the G8 Education Audit Committee. Chris Scott, B.E
Slide 23: Board of Directors
Board of Directors For personal use only Brian Bailison B.Com, B.Acc (Cum Laude), ACA, Non‐Executive Director Over 15 years experience in finance, corporate finance and operations from senior roles in South Africa and Australia including senior positions at Rand Merchant Bank Limited and the Ivany I
Slide 24: Questions?
For personal use only Questions? Page 24