G8 Education Limited · ASX:GEM
G8 Education — Merger or Acquisition (October 2010)
20 slides from G8 Education's merger presentation, Oct 28, 2010
Slide 1: Acquisition of Cherie Hearts
For personal use only Acquisition of Cherie Hearts G8 Education Limited (ASX:GEM) 28 October 2010
Slide 2: Overview
Overview For personal use only • Following the acquisition of Cherie Hearts G8 Education’s child care portfolio will comprise: ▫ 140 child care centres in Australia; ▫ 66 child care centres in Singapore; and ▫ a majority interest in a training operation and enrichment school in Singapore. • The acqu
Slide 3: Acquisition Update: Cherie Hearts
Acquisition Update: Cherie Hearts For personal use only • On 28 October 2010, G8 Education announced the acquisition of Cherie Hearts, Singapore’s largest private provider of child care services. • Chris Scott, Managing Director of G8 Education will oversee the Singapore operations, as well as exist
Slide 4: Acquisition consideration
Acquisition consideration For personal use only • The purchase price of Cherie Hearts is AUD19.23 million*(including the assumption of debt). • The forecast EBIT for Cherie Hearts for the 2011 calendar year is AUD4.3 million*. This represents: • an EBIT purchase price multiple of 4.47 times; and • a
Slide 5: Key Statistics
For personal use only Key Statistics Page 5
Slide 6: Key Statistics
Key Statistics For personal use only Current share price $0.78 (at close of trade on 27 October 2010) Market capitalisation $117.24 million (at close of trade on 27 October 2010) Shares on issue during 2010 $162.30 million (following issue of announced acquisitions) Market capitalisation at finalisa
Slide 7: 2011 Guidance
For personal use only 2011 Guidance Page 7
Slide 8: 2011 Guidance
2011 Guidance For personal use only 2011 Guidance 2011 Guidance 2011 Guidance for Australian for Cherie Hearts for the Group centres AUDmillion AUDmillion AUDmillion Revenue 115.47 16.70 132.170 Expenses 98.19 12.40 110.59 Earnings Before Interest and Tax 17.28 4.30 21.58 Interest 2.11 0.30 2.41 Net
Slide 9: Capital structure
Capital structure For personal use only Shares on issue 150,304,537 Shares to be issued as consideration for announced Kindy Patch transaction 12,000,000 (no shares to be issued for Cherie Hearts transaction) Options over unissued shares 250,000 (250,000 vest in 2012) held by Chris Sacre Debt Curren
Slide 10: About Cherie Hearts
About Cherie Hearts For personal use only • Cherie Hearts was founded by Sam Yap and Gurchran Singh in 2001 and is the largest private child care provider in Singapore. • Owns 18 centres in Singapore • Operates 48 franchised centres; and • Has a further 23 franchised centres awaiting completion. • C
Slide 11: Professional Development
Professional Development For personal use only • Cherie Hearts owns 51% of the issued capital in The First Learning and Training Centre Pte Ltd. This centre provides accredited courses to child care professionals at certificate and diploma level in early childhood education. The centre is accredited
Slide 12: Cherie Hearts: Awards
Cherie Hearts: Awards For personal use only • Cherie Hearts Group has received more than 30 national awards over the past 5 years: Page 12
Slide 13: Board and Management Team
Board and Management Team For personal use only Jenny Hutson, Chris Scott, Chairperson Managing Director B.Com, LLB, FAIMM, MAICD B.Econ (Hons) Craig Chapman, Sam Yap, Chief Executive Officer Non-Executive Director B. Com., A.S.C.P.A., C.S.A. B. Sc (Hons) Brian Bailison, Gurchran Singh Non-Executive
Slide 14: G8's vision
For personal use only G8’s vision Page 14
Slide 15: G8's mission
G8’s mission For personal use only Our mission is to be Australasia’s leading provider of high quality, developmental and educational child care services, and to achieve this through growth and sustainability: Quality Education & Care Employees • To nurture and develop • To commit to employee childr
Slide 16: The vision of G8 Education
The vision of G8 Education For personal use only • A portfolio of outstanding child care brands: • Cherie Hearts • Early Learning Services • World of Learning • Bourne Learning • Community Kids • Holiday Club • Kindy Patch • Focus on the importance of child care • Make good centres great through foc
Slide 17: Centre Overview
For personal use only Centre Overview Page 17
Slide 18: For personal use only
7) Community ats -— mMmMuUnN Ktndy Patch 20% ehbl 7 World of Learning he © Early Learning Ser s Limited Committed to Child Car BOURNE LEARNING Page 18
Slide 19: Australian Centres
Australian Centres For personal use only Total Australian centres State (assuming completion of all announced acquisitions as at 27 October 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 licen
Slide 20: Singapore Centres
Singapore Centres For personal use only Location Total centres Owned centres – 100% ownership by Cherie Hearts 18 Franchised centres in operation 48 Franchised centres pending confirmation of licence 23 Enrichment Program Teacher training company Total centres 89 Total licence capacity 5208 Page 20