For personal use only G8 Education Limited (ASX:GEM) Investor - PowerPoint PPT Presentation

For personal use only G8 Education Limited (ASX:GEM) Investor Presentation November 2014

Agenda For personal use only 1 Overview 3 2 Brands 16 3 Competitive Strengths 19 4 Business Strategies 21 5 Financial Information 23 6 Appendix: Government Regulation, Funding & Policy 30 2

For personal use only OVERVIEW 3

G8 Education’s Vision & Mission For personal use only G8 Education’s mission is to be Australasia's leading provider of high quality, developmental and educational child care services. G8 Education aims to achieve this through:  A portfolio of outstanding early childhood education brands  A focus on the importance of early childhood education  By making good centres great centres through focusing on outstanding early childhood education management G8 Education’s strategy is based around four pillars for growth and sustainability: Quality Education Employees Community Profitability & Care To nurture and develop To commit to employee To be responsive to local To grow and derive value children’s minds, social development and a families and deliver upon for shareholders through skills and confidence in a rewarding culture which community expectations. innovative services, safe and stimulating will ensure an engaged systems and environment. and driven workforce. management. 4

Overview For personal use only G8 Education Limited (‘ G8 Education ’) is an Australasian childcare services provider that is listed on the Australian Stock Exchange (‘ ASX ’) under the ticker code ‘GEM’, with a market capitalisation of $1.6 billion. We have a total portfolio of 440 owned childcare and education centres in Australia and Singapore, and an additional 37 under contract in Australia. Our acquisition strategy has been to buy profitable centres which are in operation and to integrate and manage a number of key operational metrics and performance indicators to improve individual centre performance in line with the overall group performance. Australia G8 Education has a portfolio of 422 childcare and education centres, and an additional 37 contracted and not yet settled in Australia. G8 Education is the largest for-profit operator in Australia. G8 Education estimates that there are 6,500 long day care centres across Australia, resulting in G8 Education currently having approximately 6.5% market share. 4,000 of these centres are within the addressable market. The Australian childcare services industry comprises 11,420 centres (including family day care, occasional care, long day care and outside school care) run by 7,850 operators, employing 122,000 people and generates A$7.8 billion revenue p.a. Singapore G8 Education currently owns 18 childcare and education centres and operates 37 franchised childcare and education centres in Singapore. 5

Australian Corporate Group Structure For personal use only G8 EDUCATION LIMITED (FORMERLY EARLY LEARNING SERVICES LIMITED) ABN 95 123 828 553 ABN 95 123 828 553 RBWOL HOLDINGS PTY LTD SYDNEY COVE CHILDREN'S SYDNEY COVE CHILDREN'S STERLING EARLY STERLING EARLY SYDNEY COVE PROPERTY SYDNEY COVE CHILDREN'S CENTRE PTY LTD CENTRE B PTY LTD TOGALOG PTY LTD G8 KP PTY LTD EDUCATION FINANCE PTY EDUCATION HOLDINGS (FORMERLY PAYCE CHILD CARE PTY HOLDINGS PTY LTD CENTRE C PTY LTD LTD PTY LTD LTD) ATF ATF ACN 110 999 098 ABN 13 145 575 097 ABN 71 130 413 222 ABN 16 120 748 530 ACN 168 103 222 ACN 165 684 819 ABN 89 117 322 531 ABN 25 113 917 025 ABN 12 120 748 512 WOODLAND EDUCATION GRASSHOPPERS EARLY KINDY KIDS OPERATIONS RAMSAY BOURNE WORLD OF LEARNING PTY OPERATIONS PTY LTD LEARNING CENTRES PTY PTY LTD SYDNEY COVE CHILDREN'S SYDNEY COVE CHILDREN'S HOLDINGS PTY LTD LTD KINDY PATCH UNIT TRUST LTD CENTRE TRUST CENTRE B TRUST ACN 167 089 358 ACN 167 089 330 ABN 45 118 031 904 ABN 63 123 390 572 ACN 111 015 055 KOOL KIDS OPERATIONS KINDY KIDS VILLAGE KINDY KIDS LONG THREE LITTLE PIGS CASNIC PTY LTD CG OPERATIONS PTY LTD RAMSAY BOURNE PTY LTD WORLD OF LEARNING PTY LTD DAY CARE AND PTY LTD ACQUISITIONS (NO 1) PTY ACN 166 953 297 LICENCES PTY LTD ACN 152 876 250 PRESCHOOL PTY LTD ACN 142 501 059 ACN 149 795 737 ACN 166 953 742 LTD ABN 34 124 375 855 ACN 143 017 850 SHEMLEX PTY LTD ABN 61 119 249 044 ACN 100 358 165 OORAMA OPERATIONS NORTH SHORE CHILDCARE KINDY KIDS VILLAGE KINDY KIDS DAY PTY LTD PTY LTD RAMSAY BOURNE TRUST CARE AND ACN 167 089 312 WORLD OF LEARNING ACN 167 219 712 SHEMLEX INVESTMENTS ACQUISITIONS (NO 2) PTY PRESCHOOL TRUST ACQUISITIONS PTY LTD UNIT TRUST LTD ABN 23 124 378 678 ABN 68 119 584 048 JACARANDA OPERATIONS HUGGY BEAR OPERATIONS PTY LTD PTY LTD ACN 167 089 401 ACN 167 219 70.3 ES5 PTY LTD SHEMLEX INVESTMENTS MORLEY PERTH UNIT WORLD OF LEARNING RAMSAY BOURNE FREEHOLD TRUST NO 1 TRUST ACQUISITIONS NO. 1 PTY ACN 152 685 580 LICENCES PTY LTD LTD ABN 80 120 265 652 JELLYBEANS OPERATIONS JANES PLACE OPERATIONS ABN 90 128 031 103 PTY LTD PTY LTD ACN 166 954 169 ACN 079 255 977 BOURNE LEARNING PTY LTD WTTS OPERATIONS PTY DERAFI PTY LTD (FORMERLY RAMSAY & LTD BOURNE PTY LTD) ACN 003 384 370 ACN 142 679 347 ABN 16 111 783 450 JOLIMONT PRIVATE EDUCATION BUI INVESTMENTS PTY LTD RBL NO 1 PTY LTD PTY LTD ACN 111 213 775 ABN 32 114 987 147 ACN 152 442 969 ALFOOM INVESTMENTS PTY Ltd ACN 160 542 174 Note: All subsidiaries are 100 per cent owned and have G8 Education Limited as the ultimate holding company. 6

Singapore Corporate Group Structure For personal use only ABN 95 123 828 553 G8 SINGAPORE PTE LTD 201202281N CHERIE HEARTS CHERIE HEARTS OUR JUNIORS GLOBAL BRIGHT JUNIORS PTE HOLDINGS PTE LTD CORPORATE PTE LTD SCHOOLHOUSE PTE LTD LTD 201022668D 201024092C 2013 05374M 201133819W CHERIE HEARTS @ BRIGHT JUNIORS @ BRIGHT JUNIORS @ BRIGHT JUNIORS @ CHERIE HEARTS @ CHERIE HEARTS @ GOMBAK PTE LTD PGL PTE LTD SC PTE LTD YS PTE LTD KK PTE LTD SK PTE LTD 200806695C 201129118E 201129120K 201129123D 201129124N 201129121C Note: All subsidiaries are 100 per cent owned and have G8 Education Limited as the ultimate holding company. 7

Significant Events & Milestones For personal use only (Mar ‘10) (Sep ‘12) (Nov ‘12) Early Learning Services (Dec ‘10)  Settlement of Pacific Group G8 Education successfully completed Limited merges with Payce The Group a placement to institutions of child care acquisition. Child Care Pty Ltd. The finalises the Kindy  Capital raising A$10.5m at 30.790m shares at A$1.15 per share merged group is renamed Patch acquisition. to raise A$35.4m. A$1.15 per share. G8 Education Limited. +10 centres +1 centre +8 centres +8 centres +1 centre +1 centre +5 centres +16 centres +10 centres +30 centres +2 centres +6 centres +1 centre +2 centres +7 centres +1 centre +31 centres September September September November December November December November December 2010 2011 February 2012 February October October October January January August August August March March March April April April May June May June May June July July July (Oct ‘10) (Dec ‘11) (Dec ’12 ) Proposed acquisition of Ended year with 135 (Oct ‘12) Ended the year with 167 owned Cherie Hearts Singapore owned centres (Australia), Settlement of Koala child care, centres in Australia and 8 is announced. Cherie 7 owned centres Kinder Haven child care, Little owned, 10 managed and 51 Hearts comprises 18 (Singapore) and 64 Einstein’s child care acquisitions. franchised centres in Singapore. owned and 51 franchised centres franchised Child Care (Singapore). Centres. 8

Significant Events & Milestones For personal use only (June ‘13)  Included in (Oct ‘13) (Feb ‘13) (Apr ’13) (Aug ’13)  Settlement of Treehouse Successful Successfully the S&P/ASX Completion of placement of 26 completed a Geelong and Bellnore Drive 200 Index Unsecured Note million shares at  Settlement of Placement of 24 childcare and education Offering raising A$3.10 raising million shares at Dolphin centres. A$70m.  Purchase of new Head A$80.6m. A$1.45 to raise childcare and A$35m. Office. education centres. +7 centres +5 centres +31 centres +64 centres +14 centres +11 centres +1 centre +6 centres September November December 2013 February 2014 February October January January August March March April April May June July (Jul ‘13) Settlement of (Sep ‘13) (Mar ‘13) (May ‘13) Mary Poppins, Settlement of Included Settlement of Peppercorn, Smart Jannali and in the Rose Garden Care Childcare and Waterford S&P/ASX and Leaping Roly-Poly childcare West Child 300 Index Learners. and education Care centres. centres. 9