Slide 1: G8 Education – Results Presentation Half Year Ended 30 June 2017
LFL Occupancy For personal use only G8 Education – Results Presentation Half Year Ended 30 June 2017 G8 Education Limited (ASX:GEM) 21 August 2017 1
Slide 2: Highlights
Highlights For personal use only ✓ Strong growth in underlying EBIT (excluding net Key 1H17 performance statistics LDCPDP* Funding) – Guidance for full year maintained – Solid occupancy momentum in 1H17 +19% +6% – Continued disciplined wage control Underlying EBIT Underlying EBIT ✓ New executive lea
Slide 3: Group Financial Performance
Group Financial Performance For personal use only Consolidated Income Statement HY1 2017 HY1 2016 % • Operating Revenue increased by $10.4m (2.9%), made up of #039;000 #039;000 the following: Revenue from continui ng opera tions 368,341 357,951 • Revenue growth from 2016 acquisitions of $17.5m Other Incom
Slide 4: Centre Performance Breakdown
Centre Performance Breakdown For personal use only Change vs • 1H17 LFL EBIT performance was 1.9% higher than pcp with 1H16 1H17 pcp Growth savings in Wages and Childcare costs more than offsetting Organic Group the increase in Rent expense. LFL fee increase of 2.4% was Parent fees 343,500 339,772 (
Slide 5: Operational Update
LFL Occupancy For personal use only Operational Update 5
Slide 6: Occupancy - LFL
Occupancy - LFL For personal use only Rolling 12 month Occupancy • Overall national supply increased by 3.7% over the last 12 months with 7,166 LDC centres operating as at 30 June 2017. Change in This is higher than estimated growth in market demand of State 2017 2016 pcp 2%-2.5% ACT 77.4% 84.0% -6.
Slide 7: Key stakeholders
Key stakeholders For personal use only 37,921 502 Licensed 50,000+ Centres places Families 481 Australia 21 Singapore $1.7bn 23,000+ Market Shareholders cap 9,000+ Team members 7
Slide 8: Support Cost per Licensed Place
Support Cost per Licensed Place For personal use only 2010 2011 2012 2013 2014 2015 2016 HY 2017 Number of Places 6,304 9,868 12,661 19,085 32,782 36,200 38,713 37,921 Support Office Cost per Licensed Place $710 $523 $520 $485 $455 $439 $403 $427 The increase in support office cost per licence place
Slide 9: Financial Update
LFL Occupancy For personal use only Financial Update 9
Slide 10: Balance Sheet
Balance Sheet For personal use only 30 June 2017 31 December 2016 #039;000 #039;000 • $134.2m increase in Cash mainly relates to the equity ASSETS raising ($195m) offset by the repayment of the Current assets Cash and cash equivalents 160,729 26,467 Bankwest facility ($40m) and dividends ($29.2m) Trade an
Slide 11: Cash Flow
Cash Flow For personal use only 30-Jun-17 30-Jun-16 #039;000 #039;000 Cash flows from Operating Activities Receipts from customers (net of GST) 366,175 367,704 Payments to suppliers and employees (net of GST) (309,928) (304,098) • After adjusting for timing of CCB/CCR payments ($5m) Interest received 158
Slide 12: Key Ratios
Key Ratios For personal use only Key Financial Ratios 2017 2016 • The Group continues to have significant head room in relation to its financial covenants Fixed Charges Cover (annualised H2 16 & H1 17) 2.17 2.05 • Net Leverage and Debt to Capital ratios have Net Debt to Reported EBITDA (historical r
Slide 13: Capital Structure
Capital Structure For personal use only G8’s capital structure as at 30 June 2017 consisted of the following Debt and Equity instruments: Class Maturity Cost HY 17 Principle/Issuance FY 16 Principle/Issuance Debt Senior Unsecured Note 7-Aug-19 7.68% A$70m A$70m Senior Unsecured Note 19-May-19 6.54%
Slide 14: 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 15: Trading Update
Trading Update For personal use only • Occupancy growth since 30 June 2017 has continued to track ahead of last year, with a number of initiatives in place to drive occupancy • Cost performance for 2H17 to date has been in line with 1H17 • The Group is forecast to complete 8 acquisitions in 2H17, wi
Slide 16: Capital Management
Capital Management For personal use only As part of its ongoing capital management activities, the Group announces the following changes to its bank debt facilities and dividend policies Bank Facility • On 18 August, the Group finalised and executed a $200m, 3-year club bank facility involving CBA,
Slide 17: Capital Management (continued)
Capital Management (continued) For personal use only Dividend Policy • From January 2018, G8 will pay dividends on a semi-annual basis with those dividends being declared in the full year and half year results announcements • G8 will also transition to a proportionate dividend policy under which the
Slide 18: Thank You – Questions?
For personal use only THANK YOU Questions?