Kip Mcgrath Education Centres Limited · ASX:KME
Kip Mcgrath Education Centres — Shareholder Meeting (November 2020)
13 slides from Kip Mcgrath Education Centres's shareholder meeting presentation, Nov 17, 2020
Slide 1: Presentation to the Annual General Meeting
Presentation to the Annual General Meeting of Kip McGrath Education Centres Ltd 17 November 2020 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Kip McGrath Education Centres Limited (Company). Disclaimer Statements in this presentation are made only as at 17 November 2020 and the information in this To the maximum extent permitted by law, the Company disclaims all responsibility and liabilit
Slide 3: FY2020 Financial Year Highlights - Revenue
FY2020 Financial Year Highlights - Revenue KMEC Ltd Revenue increased by 5.3% to $17.1M Estimated COVID-19 impact on revenue approximately $2.4M Global Network Revenues* fell by 10.4% to $83.9M due to COVID-19 Quick pivot to our already built online tutoring platform was critical for franchisees Rev
Slide 4: Network Revenues FY2020
Network Revenues FY2020 United Kingdom / Europe Network Revenues* Network Revenues of $83.9M in A$41.9M FY2020 FY2020 COVID-19 Recovery 93% Australasia starting to rebound as restrictions ease in key markets Australasia Network Revenues Watching the UK carefully A$35.2M FY2020 as they move into COVI
Slide 5: FY2020 Financial Year Highlights - Profit
FY2020 Financial Year Highlights - Profit EBITDA was stable at $5.2M NPAT fell by 40% to $1.6M Overall COVID-19 impact reduced net profit for the year by $1.4M before government grants Aggressive focus on cost control during pandemic to maintain profitability Well supported Institutional placement i
Slide 6: Technology & IP
Technology & IP Ongoing IT development has been at the core of our DNA for over 40 years The online tutoring platform has been very stable during lesson increase New platform upgrade to be released early in 2021 for multiple devices and browsers No reliance on 3rd party software for core functionali
Slide 7: Technology & IP
Technology & IP Learning Management System has 55,000 questions with over 20 question types All lessons & progress are recorded for future learnings, modifications and development All systems in the cloud - up time 99.95% for the year Senior CTO added to the team in September 7
Slide 8: Online Tutoring Growth
Online Tutoring Growth COVID-19 has changed market Network revenues* from online tutoring have grown significantly in all key markets FY2020 Network revenues from online of $14.3M (up 372%) FY2021 YTD October 2020 Network Revenues from online have exceeded $11M, averaging over 11,000 online lessons
Slide 9: COVID-19 has accelerated consumer acceptance of online tutoring
COVID-19 has accelerated consumer acceptance of online tutoring Step Change in KMEC Investment KipOnline Consumer Behaviour Shift • The step change in online has proven highly • Lockdown has forced a behaviour sustainable shift CY 2019 • In line with consumer feedback, KME ~450 average weekly ‒ Pare
Slide 10: Corporate Centre Performance
Corporate Centre Performance Corporate Centres now operational in 3 major markets: • Australia Newcastle, Canberra & Online Direct • New Zealand Online Direct • UK Online Direct In early negotiations to buy back an additional 5 centres in our key markets 10
Slide 11: Corporate Centre Performance
Corporate Centre Corporate Centres Experiencing Significant Growth and an Performance Increasing Proportion of Online Delivered Lessons Increase of corporate delivered lessons drives incremental revenue growth and increased profitability per lesson delivered Prior 12 months Scheduled Corporate Lesso
Slide 12: Franchise Performance
Franchise Performance Covid-19 lockdowns in some key markets (UK, Victoria) inhibiting face-to-face learning with online tutoring facilitating business continuity 7 buyback transactions in pipeline (5 Centres and 2 Area Developers) – but COVID-19 trading conditions are impacting timing New franchise
Slide 13: Outlook
Outlook Expect Revenue and Profitability Margins to continue to grow Due to continuing COVID-19 impact, no earnings guidance at this time Blended learning model across the entire group is primary focus Online Direct in Australia & UK in non-franchised territories also a key focus Further focus on ex
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