G8 Education Limited · ASX:GEM
G8 Education — H1 2015 Earnings Presentation
21 slides from G8 Education's earnings presentation, Aug 10, 2015
Slide 1: G8 Education – Overview 1H2015
For personal use only G8 Education –Overview 1H2015 G8 Education Limited (ASX:GEM) 10 August 2015
Slide 2: Corporate Snapshot
Corporate Snapshot For personal use only Capital Structure Board of Directors & Key Management Title Personnel Directors & Senior Management Fully Paid Ordinary Shares (current) 367.8 million Jenny Hutson Chairperson Options Nil Chris Scott Managing Director Share Price (as at 3 Aug 2015) $3.50 Matt
Slide 3: Portfolio Update
For personal use only Portfolio Update
Slide 4: Group Centre Portfolio
Group Centre Portfolio For personal use only Centre Portfolio Australian centres Singapore centres 18 18 18 • As at 30 June 2015 the Group owned 457 18 436 457 centres in Australia and 18 centres in 18 18 349 18 18 18 187 234 Singapore. 132 135 136 167 77 88 1H10A 2H10A 1H11A 2H11A 1H12A 2H12A 1H13A
Slide 5: Key performance metrics
For personal use only Key performance metrics
Slide 6: Like for Like Centre EBIT – HY14 on HY15
Like for Like Centre EBIT – HY14 on HY15 For personal use only Like for Like Centre Financials 1H14 1H15 Total revenue 157,742,998 166,540,511 Revenue growth 5.6% • The group had 229 centres which it owned for the full half period in 2014 Total wages 91,250,484 92,972,976 and 2015. Wages growth 1.9%
Slide 7: Like for Like Centre EBIT Growth – By Year of Acquisitions
Like for Like Centre EBIT Growth – By Year of Acquisitions For personal use only Like for Like EBIT Vintage Centres 2011 2012 2013 2014 2015 Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Jul - Dec Jan - Jun Acquired pre 2011 78 6,174,909 9,911,786 6,820,012 10,794,517 8,740,3
Slide 8: Group Pro Forma Returns on Invested Capital
Group Pro Forma Returns on Invested Capital For personal use only • Pro forma adjusted Return on Invested Capital for the period was 26.0% in line with CY14. HY CY15 CY14 HY CY14 CY13 CY12 CY11 Equity as at 31 December as per the Annual/half year Report 558,550,000 542,009,000 431,638,000 304,786,00
Slide 9: Head Office Cost per Licensed Place
Head Office Cost per Licensed Place For personal use only 2010 2011 2012 2013 2014 HY 2015 Number of Places 6,304 9,868 12,661 17,597 32,782 33,402 Head Office Cost per Licensed Place $710 $523 $520 $485 $455 $447 • Head office costs per licensed place decreased to $447 in the period. Head Office Co
Slide 10: Group Financial Update
For personal use only Group Financial Update
Slide 11: Group Revenue and EBIT – 1H on 2H
Group Revenue and EBIT – 1H on 2H For personal use only Group Financial Performance $350.0 $80.0 $294.9 $305.7 $70.0 $300.0 $70.4 $60.0 • Underlying Group Revenue $250.0 and EBIT growth from 1H10 $54.1 $50.0 to 1H15 has continued to be $200.0 $187.2 strong. $157.7 $40.0 $150.0 $30.0 • Underlying EBI
Slide 12: 2014 Financial Margin Analysis
2014 Financial Margin Analysis For personal use only Group Underlying Margins Underlying EBIT margin Underlying NPAT margin • Underlying EBIT margins have increased from 16.6% in 1H14 to 17.7% 24% in 1H15. This is largely 21% due to a combination of 20% 18% organic growth and 18% 17% contributions f
Slide 13: CY Income Statement
CY 14 Income Statement For personal use only 30 June 2015 30 June 2014 Consolidated Half Year 30 June 2015 Notes $'000 $'000 Revenue from continuing operations 305,700 187,245 • Strong underlying Revenue growth of Other Income 5,182 12 $118.5m was reported in 1HY15, an increase Total revenue 310,882
Slide 14: Balance Sheet
Balance Sheet For personal use only 30 June 2015 31 Dec 2014 Consolidated $000 $000 ASSETS • Trade and other receivables remains Current assets consistent at $13.5m as at 30 June 2015 Cash and cash equivalents 83,210 120,804 Trade and other receivables 13,457 14,164 compared to $14.1m at 31 Dec 14.
Slide 15: Cash Flow
Cash Flow For personal use only 30 June 2015 30 June 2014 $000 $000 • Operating cash flow was strong at Cash flows from operating activities $35.4m for the half year. Receipts from customers 305,362 191,172 Payments to suppliers and employees (241,934) (161,728) Interest received 1,537 1,731 • Cash
Slide 16: Capital Structure
Capital Structure For personal use only G8’s current capital structure consists of the following Debt and Equity instruments: Issuer Class Maturity Issuance Cost Borrowings G8 Education Ltd Senior Unsecured Note 7 August 2019 A$70,000,000 7.675% G8 Education Ltd Senior Unsecured Note 17 February 201
Slide 17: Subsequent Events
For personal use only Subsequent Events
Slide 18: Subsequent events post June 2015
Subsequent events post 30 June 2015 For personal use only The following material events have taken place subsequent to 30 June 2015: • Subsequent to 30 June 2015 the Group announced it had acquired 46,051,790 (19.89%) fully paid ordinary shares in Affinity Education Group Limited (Affinity Education
Slide 19: Appendices
For personal use only Appendices
Slide 20: Business Organisation Chart
Business Organisation Chart For personal use only • Relatively flat organisation structure • Clearly defined head office and operational function • Simplicity of structure facilitates rapid scaling • Large resource pool in excess of 10,000 employees aids recruitment and succession planning 20
Slide 21: Thank You
For personal use only THANK YOU Questions?