G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (May 2014)
33 slides from G8 Education's investor presentation, May 5, 2014
Slide 1: G8 Education Limited (ASX:GEM) Investor Presentation May 2014
For personal use only G8 Education Limited (ASX:GEM) Investor Presentation May 2014
Slide 2: Agenda
Agenda For personal use only 1 Overview 3 2 Brands 15 3 Competitive Strengths 18 4 Business Strategies 20 5 Financial Information 22 6 Appendix: Government Regulation, Funding & Policy 27 2
Slide 3: Overview
For personal use only 3 OVERVIEW
Slide 4: G8 Education's Vision & Mission
G8 Education’s Vision & Mission For personal use only G8 Education’s mission is to be Australasia's leading provider of high quality, developmental and educational child care services. G8 Education aims to achieve this through: A portfolio of outstanding early childhood education brands A focus
Slide 5: Overview
Overview For personal use only G8 Education Limited (‘G8 Education’) is an Australasian childcare services provider that is Figure 1: Child care services in listed on the Australian Stock Exchange (‘ASX’) under the ticker code ‘GEM’, with a market Australia - market share capitalisation of $1.5 bill
Slide 6: Australian Corporate Group Structure
Australian Corporate Group Structure For personal use only G8 EDUCATION LIMITED (FORMERLY EARLY LEARNING SERVICES LIMITED) ABN ABN95 95 123 828553 123 828 553 RBWOL HOLDINGS PTY LTD SYDNEY COVE CHILDREN'S SYDNEY COVE CHILDREN'S STERLING EARLY STERLING EARLY SYDNEY COVE PROPERTY CENTRE PTY LTD CENTRE
Slide 7: Singapore Corporate Group Structure
Singapore Corporate Group Structure For personal use only ABN 95 123 828 553 G8 SINGAPORE PTE LTD 201202281N CHERIE HEARTS CHERIE HEARTS OUR JUNIORS GLOBAL BRIGHT JUNIORS PTE HOLDINGS PTE LTD CORPORATE PTE LTD SCHOOLHOUSE PTE LTD LTD 201022668D 201024092C 2013 05374M 201133819W CHERIE HEARTS @ BRIGH
Slide 8: Significant Events & Milestones
Significant Events & Milestones For personal use only 8
Slide 9: Significant Events & Milestones
Significant Events & Milestones For personal use only 9
Slide 10: Board of Directors
Board of Directors For personal use only Jennifer Hutson Chris Scott Brian Bailison Andrew Kemp Susan Forrester B.Com, LLB, FAIMM, MAICD B.Econ. (Hons) B.Com., B.Acc (Cum Laude), ACA B.Com., CA BA, LLB(Hons) EMBA, FAICD Chairperson Managing Director Non Executive Director Non Executive Director Non
Slide 11: G8 Education Childcare and Education Centre Portfolio
G8 Education Childcare and Education Centre Portfolio For personal use only 461 48 18 Australia (Owned) 97 * 300 48 Australia (Contracted and not yet settled) 236 18 206 61 Singapore (Owned) 64 8 298 7 234 88 Singapore (Franchised) 167 135 88 CY10 CY11 CY12 CY13 CY14* Note: As at 30 April 2014. 11
Slide 12: Locations – Australia
Locations – Australia For personal use only 298 centres owned across Australia. 395 97 centres under contract and not yet settled. 86 Queensland 68 Western Australia 17 133 NSW South Australia 11 ACT 78 Victoria 2 Tasmania 12
Slide 13: Locations – Singapore
Locations – Singapore For personal use only 18 centres owned North across Singapore 4 owned 16 franchised West East 48 5 owned 7 owned Central centres franchised 9 franchised 2 owned 14 franchised and operated across Singapore 9 franchised 13
Slide 14: Childcare and Education Centre Occupancy
Childcare and Education Centre Occupancy For personal use only 100% 90% 80% 70% 60% Occupancy 50% 40% 80% 84% 75% 77% 30% 20% 10% 0% CY2010 CY2011 CY2012 CY2013 14
Slide 15: Brands
For personal use only 15 BRANDS
Slide 16: Brands - Singapore
Brands - Singapore For personal use only Owned G8 Education acquired 7 centres in 2011, with a further centre being acquired in 2012. G8 Education took ownership of a further 10 centres in 2013. Currently 18 centres are owned by G8 Education across Singapore. Franchised Centres The model under which
Slide 17: Brands - Australia
Brands - Australia For personal use only G8 Education currently operates under more than 13 brands in Australia. BRAND # OF CENTRES (OWNED) Casa Bambini 3 Community Kids 58 Early Learning Services 36 First Grammar 23 Great Beginnings 21 Headstart 10 Kinder Haven 8 Kindy Patch 24 Little Einstein’s
Slide 18: Competitive Strengths
For personal use only COMPETITIVE STRENGTHS 18
Slide 19: Competitive Strengths
Competitive Strengths For personal use only Multi-brand portfolio strategy G8 Education adopts a multi-brand approach, operating across 13 brands in Australia and 3 brands in Singapore to cater to the needs of the local community Revenue underpinned by supportive government * policies Supportive gov
Slide 20: Business Strategies
For personal use only BUSINESS STRATEGIES 20
Slide 21: Business Strategies
Business Strategies For personal use only Quality Care and Acquisition Strategy Employees Community Education G8 Education has a G8 Education believes in G8 Education is G8 Education provided comprehensive continually investing in committed to care and education to methodology in its facilities to p
Slide 22: Financial Information
For personal use only FINANCIAL INFORMATION 22
Slide 23: Track Record of Financial Performance
Track Record of Financial Performance For personal use only Total Revenue (AUD$'m) EBITDA (AUD$'m) 275 53 180 32 143 27 67 8 CY10A CY11A CY12A CY13A CY10A CY11A CY12A CY13A EBITDA Margins (%) Net Profit After Tax (AUD$'m) 31 18.7% 19.2% 17.7% 19 12.0% 17 3 CY10A CY11A CY12A CY13A CY10A CY11A CY12A C
Slide 24: Key Balance Sheet Statistics
Key Balance Sheet Statistics For personal use only Total Assets (AUD$'m) Total Debt (AUD$'m) 114 482 269 49 188 36 115 16 CY10A CY11A CY12A CY13A CY10A CY11A CY12A CY13A Cash and Cash Equivalents Total Equity (AUD$'m) 114 (AUD$'m) 305 182 115 84 22 7 11 CY10A CY11A CY12A CY13A CY10A CY11A CY12A CY13
Slide 25: Prudent Capital Management
Prudent Capital Management For personal use only Net Debt / Total Equity (x) Total Secured Debt / Total Assets (%) 0.22 19.3% 18.3% 0.15 13.5% 0.10 9.5% 0.00 CY10A CY11A CY12A CY13A CY10A CY11A CY12A CY13A Net Debt / EBITDA (x) EBITDA / Interest Expenses (x) 1.08 12.2 12.6 0.94 11.0 0.86 6.1 0.00 CY
Slide 26: Thank You – Questions?
For personal use only THANK YOU Questions? 26
Slide 27: Appendix: Government Regulation, Funding & Policy
For personal use only APPENDIX: GOVERNMENT REGULATION, FUNDING & POLICY 27
Slide 28: Overview - Singapore
Overview - Singapore For personal use only Early Childhood and Development Agency The Early Childhood and Development Agency serves as the regulatory and developmental authority for the early childhood sector in Singapore, overseeing all aspects of children's development below the age of 6, across b
Slide 29: Government Funding - Singapore
Government Funding - Singapore For personal use only Childcare subsidies To enhance the affordability of childcare services in Singapore, the Singaporean Government provides child care subsidies to working and non-working mothers whose children are enrolled in a licensed centre. From 1 April 2013, t
Slide 30: Government Regulation - Australia
Government Regulation - Australia For personal use only National Quality Framework The recent introduction of the National Quality Framework has seen a large change to the regulatory environment of the childcare industry in Australia. Introduced in January 2012, the framework replaces existing State
Slide 31: National Quality Standard
National Quality Standard For personal use only 31
Slide 32: Government Funding - Australia
Government Funding - Australia For personal use only The Commonwealth Government provides fee assistance to families to increase the accessibility of childcare. Government investment in childcare has increased significantly over the last decade (Figure 2) and Commonwealth Government funding is expec
Slide 33: Government Funding - Australia
Government Funding - Australia For personal use only Figure 2: Total Government expenditure including State and Territory Figure 3: Actual and estimated Commonwealth Government Child Care Government funding, 2005-06 to 2011-12 ($’M) Benefit and Child Care Rebate funding, 2003-04 to 2016-17 Source: A