Kip Mcgrath Education Centres Limited · ASX:KME
Kip Mcgrath Education Centres — Investor Presentation (March 2015)
14 slides from Kip Mcgrath Education Centres's investor presentation, Mar 23, 2015
Slide 1: Investor Presentation
For personal use only Investor Presentation 23 March 2015
Slide 2: Agenda
Agenda For personal use only • Business Overview • Results Snapshot • Growth Opportunity • KipOnline™ • Outlook • Questions
Slide 3: Kip McGrath Overview
Kip McGrath Overview For personal use only • Started in 1974 in Maitland NSW in the Family Garage. • First tutoring company to use computers to help with the drill work for students (1980) • Kip McGrath Education Centres is currently the largest international provider of face to face tuition for sch
Slide 4: Kip McGrath Leaders In Learning
Ki | MiGrath L Leaders In Learning
Slide 5: Key Metrics
Key Metrics For personal use only • Market Cap $16M • 45M shares including options • 40% shares held by McGrath Family • Current global revenue at franchise level $80M
Slide 6: Current Growth Drivers
Current Growth Drivers For personal use only • Over the Last 5 years we have been changing existing franchisees from fixed fee to percentage of revenue. (10% model - 130 outlets globally) • We also have a new business model which includes centralised back office, payroll, marketing and IT support (2
Slide 7: Results Snapshot
Results Snapshot NPAT EPS For personal use only 1.2 2 1 1.5 0.8 0.6 1st half 1 0.4 2nd half 0.5 0.2 0 0 2013 2014 2015 2012 2013 2014 • Record 1HFY15 Result, NPAT up 237% • Strong skew to the second half as most franchisee sales occur at the beginning of the calendar year and holidays in the Norther
Slide 8: Results Commentary
Results Commentary For personal use only • Record first half profit • Paying a dividend for the first time in 5 years • Cash position $1.5M • Debt $1.6M
Slide 9: Market/Growth Opportunity
Market/Growth Opportunity For personal use only • According to Forbes the global tuition market will surpass $102.8 Billion by 2018 • Number of school children in Australia is 3,000,000 and according to a survey conducted by the ATA around 20% receive tuition. • KME currently teaches 12,000 a week i
Slide 10: Gold Partners
Gold Partners For personal use only 160 140 120 100 80 60 40 20 0 2011 2012 2013 2014 Current
Slide 11: KipOnline™
KipOnline™ For personal use only • Children are taught via a web cam with real teachers • Allows tutoring to be done anywhere and anytime • Allows greater scale in the business • All retailers must have an online option or they will be irrelevant • Fees for online 30% of revenue to pay for the techn
Slide 12: Outlook
Outlook For personal use only • Continued growth in profit and dividends • Continued growth in gold partners • Increased focus on online • Centralised marketing to further drive online
Slide 13: Questions
For personal use only Questions
Slide 14: Disclaimer
Disclaimer For personal use only The presentation includes certain forward looking statements which are not historical facts but are based on KME’s current expectations, estimates and projections about the industry which KME operates, and beliefs and assumptions regarding KME’s future performance. W
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