G8 Education Limited · ASX:GEM
G8 Education — RBS Morgans 2010 Annual Queensland Conference
27 slides from G8 Education's conference presentation, Sep 20, 2010
Slide 1: G8 Education Limited – RBS Morgans 2010 Annual Queensland Conference
For personal use only G8 Education Limited (ASX:GEM) RBS Morgans 2010 Annual Queensland Conference Craig Chapman, Chief Executive Officer and Chris Sacre, Chief Financial Officer 17 September 2010
Slide 2: Overview | G8 Education
Overview | G8 Education For personal use only Creation of G8 Education Considered early childhood education • Early Learning Services Limited (ASX:ELY) listed in • G8 Education has a board and management 2007 with 38 owned centres team with exceptional credentials • Payce Child Care – an unlisted su
Slide 3: Industry Overview
For personal use only Industry Overview
Slide 4: Industry Overview
Industry Overview For personal use only • Key reason identified for child care is ‘work related’ – increasingly, child care is incorporated with education and vacation care. • Over 800,000 children benefit from government subsidised child care. • The industry produces nearly $7 billion in revenue ea
Slide 5: Industry Overview
Industry Overview For personal use only • Growth in the number of women in the labour force is also expected to increase. • Larger operators and larger centres are in a stronger position to attract qualified staff, to adjust the staff mix and to defray the costs of specialist staff and facilities ov
Slide 6: G8’s vision
For personal use only G8’s vision
Slide 7: G8’s mission
G8’s mission For personal use only Our mission is to be a leading provider of high quality, developmental and educational services, and to achieve this through growth and sustainability: Quality Education & Care Employees • To nurture and develop • To commit to employee children’s minds, social skil
Slide 8: The vision of G8 Education
The vision of G8 Education For personal use only • A portfolio of outstanding early childhood education brands: • Early Learning Services • World of Learning • Bourne Learning • Community Kids • Holiday Club • Kindy Patch • Focus on the importance of early childhood education • Make good centres gre
Slide 9: Centre Overview
For personal use only Centre Overview
Slide 10: Centres
Centres For personal use only Total centres State (assuming completion of all announced acquisitions as at 10 September 2010) Queensland 70 New South Wales 38 Victoria 9 Australian Capital Territory 5 South Australia 15 Western Australia 2 Tasmania 1 Total centres 140 Total licence capacity 9,854
Slide 11: For personal use only
ootmanity IOS _— SSS Kind y Patch = & BOURNE LEARNING =e Ze > Holiday Club “2 World of Learning © y Learning Se s Limited Committed to Child Care
Slide 12: Geographic Diversity
Geographic Diversity For personal use only WA Qld 2 70 SA 15 ACT NSW 5 38 Vic 9 Tas 1
Slide 13: 2010 Acquisitions Update
2010 Acquisitions Update For personal use only 1 April 2010 28 June 2010 acquisitions acquisitions 10 child care 9 child care centres centres 847 licensed places 655 licensed places 27 July 2010 2 August 2010 acquisitions acquisitions 30 child care 2 child care centres centres 2,078 180 licensed pla
Slide 14: Key Statistics
For personal use only Key Statistics
Slide 15: Key Statistics
Key Statistics For personal use only Current share price $0.63 30 day VWAP $0.612996 (at close of trade on 10 September 2010) Shares on issue (as at 10 September 2010) 126,368,723 60 day VWAP $0.613312 Market capitalisation $79,612,295 90 day VWAP $0.611361 (at close of trade on 10 September 2010) S
Slide 16: Key financial results 1H2010
Key financial results 1H2010 For personal use only Forecast 6 months to Actual 6 months to 30 June 2010* 30 June 2010 Revenue 23,585,383 23,282,014 EBIT increase 42.8% on forecast. Expenses (excluding interest) 22,476,352 21,697,921 NPAT increase 108.7% on forecast EBIT 1,109,031 1,584,094 Interest
Slide 17: 2011 Guidance
For personal use only 2011 Guidance
Slide 18: 2011 Guidance
2011 Guidance For personal use only Calendar Year 2011 Guidance Revenue 115,474,615 Expenses 98,191,814 Earnings Before Interest and Tax 17,282,801 Interest 2,110,562 Net Profit Before Tax 15,172,239 Net Profit After Tax 10,620,567 Basic Earning per share (cents per share) 7.6 cents Average Interest
Slide 19: Directors & Senior Management Team
For personal use only Directors & Senior Management Team
Slide 20: Directors and Senior Management
Directors and Senior Management For personal use only Jenny Hutson, Chairperson Chris Scott, Managing Director B.Com, LLB, FAIMM, MAICD B.Econ (Hons) Jenny is an investment banker and Chris graduated with first class honours in fund manager. She is an experienced Economics from Latrobe University in
Slide 21: Directors and Senior Management
Directors and Senior Management For personal use only Brian Bailison, Non-Executive Director Craig Chapman, Chief Executive Officer B.Com., B.Acc (Cum Laude), ACA B. Com., A.S.C.P.A., C.S.A. Brian has over 15 years experience in finance, Craig has had 25 years experience in business corporate financ
Slide 22: Directors and Senior Management
Directors and Senior Management For personal use only Garry Edwards, Financial Controller/Joint Company Secretary Chris Sacre, Chief Financial Officer/Joint Company Secretary MBA, FAICD B.Bus, CA, SA Fin, G Dip AppFin Garry has been Company Chris is the group Chief Financial Officer , Secretary of a
Slide 23: Directors and Senior Management
Directors and Senior Management For personal use only Jae Fraser, General Manager Operations Jae has over 11 years experience in the child care industry. Academic credentials include a Bachelor of Education, Advanced Diploma in Children’s Services and several business management qualifications spann
Slide 24: Balance Sheet as at June 2010
Balance Sheet as at 30 June 2010 For personal use only Proforma Consolidated *G8 Consolidated Balance Sheet ASSETS 30 June 2010 30 June 2010 Current assets Cash and cash equivalents 323,653 953,036 Trade and other receivables 2,121,220 2,822,735 Other current assets 870,672 1,137,663 3,315,545 4,913
Slide 25: Profit and Loss for the half year ended June 2010
Profit and Loss for the half year ended 30 June 2010 For personal use only 30 June 2010 30 June 2009 $ $ Revenue from continuing operations 23,282,014 15,783,751 Expenses Expenses from ordinary activities Employee benefit expense (15,325,208) (10,905,694) Occupancy (2,964,614) (2,000,528) Direct cos
Slide 26: Revenue Seasonality
Revenue Seasonality For personal use only • G8 Education’s actual EBIT for the 6 months was $1.6 million against a forecast of $1.1 million. It is important to note that this result represents the profit from the Early Learning Services centres within the Group for the full 6 months and the acquired
Slide 27: Capital structure
Capital structure For personal use only Shares on issue 126,368,723 Shares to be issued as consideration for announced transactions 13,555,425 Options over unissued shares (250,000 vested in 2010 and 500,000 250,000 vest in 2011) held by Chris Sacre Debt Current debt – National Australia Bank $15,54
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