G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (February 2012)
22 slides from G8 Education's investor presentation, Feb 29, 2012
Slide 1: G8 Education Overview
For personal use only G8 Education Overview G8 Education Limited (ASX:GEM) February 2012
Slide 2: Overview
Overview For personal use only Following the acquisition of five separate child care groups over the past 20 months G8 Education’s child care portfolio now comprises: Australia 135 owned child care centres Eight brands: Early Learning Services World of Learning Bourne Learning Communit
Slide 3: The vision of G8 Education
The vision of G8 Education 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 Quality Education & Care Employees To n
Slide 4: G8 2011 Audited Results
For personal use only G8 2011 Audited Results Financial year ended 31 December 2011 Page 4
Slide 5: 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 6: 2011 Audited Results v Guidance
2011 Audited Results v Guidance For personal use only Calendar Year Audited Full % 2011 Guidance Year 2011 Results Change $AUD million $AUD million Revenue 132.35 142.89 8.0% Expenses (112.09) (118.01) 5.3% Earnings Before Interest and Tax 20.26 24.88 22.8% Interest (1.90) (2.19) 15.3% Net Profi
Slide 7: Australia
For personal use only Australia Page 7
Slide 8: Australian Centres
Australian Centres For personal use only State Total centres Queensland 60 New South Wales 47 Victoria 9 Australian Capital Territory 6 South Australia 13 Total centres 135 Total licence Capacity per day 9,868 Page 8
Slide 9: Australian operations
Australian operations For personal use only • The trading environment continues to be buoyant with average 2012 annual occupancy across centres expected to exceed 2011 occupancies. • Long Day Care rate increased 2.66% in January 2012 against the budget of 1.50% • Total centre payroll costs for CY11
Slide 10: Acquisition Improvements – 1HY
Acquisition Improvements – 1HY For personal use only Revenue EBIT EBIT margin ($’000) ($’000) (%) 1H10 16,013 2,261 14.1% ELS 1H11 16,545 2,561 15.5% (settled Dec 2007) Variance (%) 3.3% 13.3% 10.0% 1H10 11,752 1,230 10.5% Payce 1H11 12,941 2,180 16.8% (settled 25 March 2010) Variance (%) 10.1% 77.2
Slide 11: Acquisition Improvements – 2HY
Acquisition Improvements – 2HY For personal use only Revenue EBIT EBIT margin ($’000) ($’000) (%) 2H10 18,160 3,565 19.6% ELS 2H11 19,029 4,267 22.4% (settled Dec 2007) Variance (%) 4.8% 19.7% 14.2% 2H10 11,497 2,355 20.5% Payce 2H11 12,421 2,887 23.3% (settled 25 March 2010) Variance (%) 8.0% 22.6%
Slide 12: Singapore
For personal use only Singapore Page 12
Slide 13: 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 * Refer 19 April 2011 announcement in relation to Cherie Hearts. G8 Education m
Slide 14: 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 before Her Honour Justice Prakash in Singapo
Slide 15: Looking forward
For personal use only Looking forward Page 15
Slide 16: Looking forward
Looking forward For personal use only G8 Education continues to perform strongly and is well positioned for further growth and additional acquisitions. • In March 2012 Damien Peters joins G8 Education. Damien is an experienced Chief Financial Officer with more than 15 years experience in senior acco
Slide 17: 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 18: Capital structure
Capital structure For personal use only Shares on issue 200,209,010 Cash on hand $14.2 million Debt Current Debt – National Australia Bank $36.4 million Replacement debt facility with BankWest $56.5 million Dividend Policy Quarterly dividends to 65% payout ratio Dividend to be 1.5 cents per share fr
Slide 19: 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% Paradice Investment Management Pty Ltd 14.8 million 7.4% Northcape Capital Pty Ltd 17.5 mill
Slide 20: 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 21: 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 22: Disclaimer
Disclaimer For personal use only • This presentation has been prepared by G8 Education Limited based on the information available to them. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions