G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (February 2025)
30 slides from G8 Education's investor presentation, Feb 25, 2025
Slide 1: ASX Announcement
ASX Announcement G8 Education Limited (ASX:GEM) 25 February 2025 The Manager Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Dear Sir / Madam I enclose the Investor Presentation for the full year ended 31 December 2024 for G8 Education Limited. Yours faithfully Josie King Co
Slide 2: G8 Education Limited 2024 Full Year Results Presentation
G8 EDUCATION LIMITED 2024 Full Year Results Presentation UPDATE IMAGE 25 February 2025 2023 Full Year results 1
Slide 3: Disclaimer & Non-IFRS Information
DISCLAIMER & NON-IFRS INFORMATION The material in this presentation has been prepared by G8 Education Limited (G8)(ASX:GEM) and is general background information about G8’s activities current as at the date of this presentation. The presentation does not purport to be complete and should be read in
Slide 4: Acknowledgement of Country
Slide 5: Agenda
AGENDA SUMMARY AND PROGRESS Pejman Okhovat FINANCIAL PERFORMANCE Steven Becker CURRENT TRADING AND OUTLOOK Pejman Okhovat QUESTIONS Pejman Okhovat and Steven Becker APPENDIX G8 Education | 2024 Full Year Results | 4
Slide 6: Summary and Progress
SUMMARY AND PROGRESS 2023 Full Year results | 5
Slide 7: Everything in Our World Starts with Children
EVERYTHING IN OUR WORLD STARTS WITH CHILDREN We are driven by our purpose in “Creating the foundations for learning for life” Our values Dedication Compassion Passion Integrity Innovation TEAM QUALITY Having a capable and confident team, Delivering a high-quality environment that motivated by their
Slide 8: Key Messages
KEY MESSAGES Delivering a "fit core" has enabled G8 group to build momentum and deliver another year of great results SUBSTANTIAL STRIDES MADE IN STRONG EARNINGS GROWTH BALANCE SHEET REMAINS CONSERVATIVE GROWING AND SUPPORTING OUR TEAM • Team retention increased along with improved • CY24 H2 continu
Slide 9: Financial Overview
FINANCIAL OVERVIEW Strong financial management of our activities resulting in solid earnings and dividend growth OPERATING REPORTED GROUP OCCUPANCY Excludes non-trading1 items and includes lease interest expense Statutory All references to occupancy include all centres Revenue % change vs pcp Revenu
Slide 10: Environmental, Social and Governance Highlights
ENVIRONMENTAL, SOCIAL AND GOVERNANCE HIGHLIGHTS Shaping a resilient, inclusive and sustainable future for all stakeholders Materiality Assessment Completed Quality Centres Team Engagement Emissions Materiality Assessment refresh and 93% of centres are “meeting” or Engagement score of 78% which is Mo
Slide 11: Balanced Scorecard
BALANCED SCORECARD Delivering strong results across all our strategic focus areas Strategic focus area Measure CY24 (Actual) Progress CY23 to CY24 Team Team Team retention 77% 3% pts Family NPS 50 6 pts Experience % of centres meeting or Quality exceeding National 93% 3% pt Quality Standard (NQS) %
Slide 12: Team
TEAM Successfully enhanced workforce engagement and capability through key people and culture initiatives ATTRACTING TEAM RETAINING TEAM GROWING OUR OWN TALENT • Effective recruitment initiatives continue to deliver • Successfully bargained as the only large provider • Targeted approach to student e
Slide 13: Family Experience
FAMILY EXPERIENCE Targeted improvements in family experience have led to improved NPS NPS FREQUENCY1 FAMILIES – NEW AND EXISTING • Targeted focus on key drivers of family experience • Frequency continues to perform above pcp • Enquiries across the sector were lower than pcp, has continually improved
Slide 14: Quality, Education and Inclusion
QUALITY, EDUCATION AND INCLUSION Strengthening teacher proficiency and implementing digital compliance system driving improved quality results QUALITY EDUCATION INCLUSION • Quality ratings remain above sector with focus on: • Increasing teachers in the network to support • Reconciliation Action Plan
Slide 15: Operating Model
OPERATING MODEL Occupancy performed well in a challenging market OPERATING MODEL OCCUPANCY Group Occupancy 80.0% • Play books driving consistency and accountability • Occupancy for CY24 was 70.7%, 0.3% pts above through the network CY23 75.0% • Introduced performance dashboard to centre • CY24 H2 sa
Slide 16: Financial Sustainability
FINANCIAL SUSTAINABILITY Building financial sustainability through strong operating cashflow, earnings growth and solid balance sheet CAPITAL ALLOCATION COST MANAGEMENT NETWORK OPTIMISATION • Operating cash flow remains strong reflected in low • Cost base has been well managed across group • CY24 ne
Slide 17: Financial Performance
FINANCIAL PERFORMANCE 2023 Full Year results | 16
Slide 18: Group Performance
GROUP PERFORMANCE Strong group performance is a result of improved centre operations and financial management Operating and statutory NPAT growth is a result of revenue growth along with $m CY24 CY23 Change effective cost management across our centres and support office: Group operating revenue 1,01
Slide 19: Centre Performance
CENTRE PERFORMANCE Occupancy growth and well managed cost base driving strong centre performance • Centre performance delivered strong operating and statutory NPAT with Centre performance centre margin improving by 1.1%pt vs pcp driven by: $m CY24 CY23 Change o Revenue growth of 3.4% driven by incre
Slide 20: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK UPDATE IMAGE 2023 Half Year results | 19
Slide 21: Current Trading and Outlook
CURRENT TRADING AND OUTLOOK Family engagement and activity in the sector improving following a later than usual seasonal start TRADING UPDATE OUTLOOK • Group ‘spot’ occupancy 61.8%, 3.5% pts lower than pcp and 65.0% YTD 1.9% Confident of our operational execution in challenging environments, and pts
Slide 22: Questions
QUESTIONS UPDATE IMAGE 2023 Full Year results | 21
Slide 23: Appendix
APPENDIX UPDATE IMAGE 2023 Full Year results | 22
Slide 24: Financial Statements: Consolidated Income Statement
FINANCIAL STATEMENTS Consolidated Income Statement statement $m CY24 CY23 % change Continuing operations Revenue 1,015.3 983.4 3.2% Other income 6.5 3.6 80.6% Total centres and centre team members Total 1,021.8 987.0 3.5% Expenses Employment costs (621.2) (603.0) 3.0% Property, utilities and mainten
Slide 25: Financial Statements: Balance Sheet
FINANCIAL STATEMENTS Balance Sheet Gearing ratio $m 31 December 2024 31 December 2023 $m 31 December 2024 31 December 2023 ASSETS Non-current borrowings 114.0 99.0 Current assets Cash and cash equivalents 47.7 40.3 Cash and cash equivalents 47.7 40.3 Trade and other receivables 20.7 22.4 Government
Slide 26: Cash Flow and Cash Flow Allocation
CASH FLOW CASH FLOW ALLOCATION Cash flow Operating cash flow Strong cash $133m conversion1 $m CY24 CY23 % change Buy- 116% Cash flows from operating activities backs Receipts from customers (inclusive of GST) 1,021.7 989.9 3.2% Capital related outflows Dividend payment Payments to suppliers and empl
Slide 27: Fundamentals Supporting Demand Growth
FUNDAMENTALS SUPPORTING DEMAND GROWTH Female participation continues to increase Net migration trending higher Net supply growth trending at historical % 800,000 rates 64.0 Total growth Natural increase 700,000 Year-on-Year supply change by quarter 63.0 Net overseas migration 600,000 3.8% 62.0 500,0
Slide 28: Macro Dynamic Influencing Affordability
MACRO DYNAMIC INFLUENCING AFFORDABILITY CPI trending downwards 5.0% Cash rate remains high Unemployment remains low 4.5% 8.00% 9.0 4.0% 8.0 3.5% 7.00% 7.0 3.0% 6.00% 6.0 2.5% 5.00% 5.0 2.0% 4.00% 4.0 1.5% 3.0 3.00% 1.0% 2.0 2.00% 1.0 0.5% 0.0% 1.00% 0.0 0.00% May-22 Sep-22 Apr-23 May-23 Feb-23 Mar-2
Slide 29: Finalised Major Inquiries
FINALISED MA JOR INQUIRIES Government remains committed to establishing a universal early learning and care system and to actively engaging with key ECEC stakeholders Government response to ACCC Productivity Commission Child Care Inquiry ECEC Inquiry Productivity Commission ECEC Inquiry • First Inte
Slide 30: Multi-Employer Agreement
MULTI-EMPLOYER AGREEMENT Higher wages now being paid to all centre team members and contributing to improving retention and engagement levels 2023 2024 2025 MAY 2024 AUGUST 2024 Draft Multi- Fee increase in the DECEMBER 2024 G8 voluntarily employer next 12 months A 10% wage Application made to conse