G8 Education Limited · ASX:GEM
G8 Education — Investor Presentation (February 2014)
23 slides from G8 Education's investor presentation, Feb 17, 2014
Slide 1: G8 Education – Year End Overview 2013
For personal use only G8 Education – Year End Overview 2013 G8 Education Limited (ASX:GEM) 17 February 2014
Slide 2: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Directors & Senior Management Ful l y Pa i d Ordi na ry Sha res (current) 301.7 mi l l i on Jenny Hutson Chairperson Opti ons Ni l Chris Scott Managing Director Sha res Pri ce (13 Februa ry 2014) $3.65 Andrew Kemp Non-Executive Director Ma r
Slide 3: Corporate Strategy
For personal use only CORPORATE STRATEGY
Slide 4: Our Vision & Mission
Our Vision & Mission For personal use only Our mission is to be Australasia's leading provider of high quality, developmental and educational child care services. We aim to achieve this through: • A portfolio of outstanding early childhood education brands • A focus on the importance of early childh
Slide 5: Australian Corporate Structure – at December 2013
Australian Corporate Structure – at 31 December 2013 For personal use only 5
Slide 6: Our Brands
Our Brands For personal use only • G8 Education currently manages 13 brands as part of our multi-brand strategy. • Three Brands were added to the portfolio in 2013. • No two G8 Education centres are alike. They are based on the needs and wants of the local community. • Our national footprint allows
Slide 7: Financial Information
For personal use only FINANCIAL INFORMATION
Slide 8: Return on Invested Capital
Return on Invested Capital For personal use only CY13 CY12 CY11 Equity as at 31 December as per the Annual Report 304,786,000 182,307,582 115,164,091 • Return on Invested Capital continues to increase year on Fair value adjustments to Equity due to acquisition year and has increased from purchase pr
Slide 9: Organic Growth
Organic Growth For personal use only Like for Like Occupancy Performance - 126 Centres 92.00% 90.00% • Across 126 centres like for like occupancy 88.00% increased from an average of 82.0% throughout CY12 to 83.8% in CY13. 86.00% CY13 • Occupancy levels continue to improve aided 84.00% CY12 by a comb
Slide 10: Organic Growth – Case Study
Organic Growth – Case Study For personal use only • The 25 Ramsay Bourne centres achieved EBIT growth of 14% and 10% for CY12 and CY13. Group Name Ramsay Bourne These results have driven the effective multiple Number of Centres 25 of the acquisition from 2.85 in 2011 to 2.25 in Acquisition Date Mar-
Slide 11: CY13 Audited Income Statement
CY13 Audited Income Statement For personal use only Consolidated 2013 2012 Variance $’000 $’000 % • Strong revenue growth of Revenue 275,165 179,991 53% $95.2m was reported in CY13 Expenses (225,776) (150,584) 50% representing a 53% increase Earnings Before Interest and Tax 49,389 29,407 68% from CY
Slide 12: Balance Sheet
Balance Sheet For personal use only Consolidated 2013 2012 $’000 $’000 • Cash reserves at 31 December 2013 were $114.0m up from Current assets $21.8m at 31 December 2012. Cash and cash equivalents 114,043 21,790 • Other current assets fell from $16.75m to $4.42m. This was a Trade and other receivabl
Slide 13: Cashflow
Cashflow For personal use only Consolidated • Operating cashflow remains strong at $43.0m for 2013 2012 CY13. This represents 120% of underlying $’000 $’000 Earnings Before Depreciation and Amortisation of Cash flows from operating activities $35.8m. Once the timing variance is taken into Receipts f
Slide 14: Group Financial Performance
Group Financial Performance For personal use only Group Underlying NPAT & EPS Underyling NPAT Underlying EPS (cents per share) • The table opposite shows the underlying group NPAT and EPS growth from CY10 to CY13. 35.00 13.0 32.28 • Underlying NPAT has increased by 64% from 12.0 CY12 to CY13 due to
Slide 15: Financial Margin Analysis
Financial Margin Analysis For personal use only Group Margin Analysis - First Half 16% 15% 14% 13% 12% 12% • The EBIT margin is affected by seasonal fluctuations in 10% occupancy from January to June compared with July to 10% 8% December due to the transition of children from Kindergarten to 7% 8% 7
Slide 16: Industry Information
For personal use only INDUSTRY INFORMATION
Slide 17: Group Centre Portfolio
Group Centre Portfolio For personal use only Centre Portfolio Australian centres Singpore centres Occupancy 95% 18 FY13 FY12 FY11 FY10 18 18 18 18 18 90% 234 167 187 132 135 136 77 88 85% 1H10A 2H10A 1H11A 2H11A 1H12A 2H12A 1H13A 2H13A 80% G8 Education has continued to make earnings per share accret
Slide 18: Market Potential
Market Potential For personal use only • Highly Fragmented industry % of sector long day care revenue • Approximately 6500 long day care centres across Australia • G8 Education Limited represents approximately 4% of the market 7.8% • Goodstart represents approximately 12% of the market • Estimated a
Slide 19: Market Potential
Market Potential For personal use only Australian Statistics since 2006 Baby Boom Potential to increase enrolments: Australia ranks 30th against • Current Government support Funding through Child Care Rebate CCR (not OECD means tested, capped at $7,500) and Child Care Benefit CCB (means tested) coun
Slide 20: Operational Update
Operational Update For personal use only Staff : Children Ratio State Age Group Current Proposed Future Date of • Care and education provided for over 24,000 Ratio Ratio change families All States 0-24 months 1:4 No change N/A • Under the National Quality Standards each 24-36 months 1:5 No change N/
Slide 21: Operational Update
Operational Update For personal use only • The group employee retention rate for permanent staff improved by 2.19% when compared to 2012. Retention rates are well above the industry average. • At 31 December 2013 the group had 19,085 licenced places per day and employed 6,288 employees. • In 2013, a
Slide 22: Significant Events Post December 2013
Significant Events Post 31 December 2013 For personal use only • Since 31 December 2013 G8 Education has announced it has contracts to acquire 63 childcare and education centres with a total licence capacity of 4,254. The total purchase price for the 63 centres is $104.67 million with $103.85 millio
Slide 23: Thank You – Questions?
For personal use only THANK YOU Questions?