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G8 Education Overview

G8 Education Limited (ASX:GEM)February 2012

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OverviewFollowing the acquisition of five separate child care groups over the past 20 months G8 Education’s child care portfolio now comprises:

Australia 135 owned child care centres Eight brands:

Early Learning Services World of Learning Bourne Learning Community Kids Holiday Club Kindy Patch Headstart Ed‐U‐Care

Singapore* 20 owned/operated* child care centres 51 franchised child care centres

* Refer 19 April 2011 announcement in relation to Cherie Hearts. G8 Education manages 12 of these centres while legal proceedings are resolved.

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The vision of G8 Education• A portfolio of outstanding early childhood education brands• Focus on the importance of early childhood education• Make good centres great through focusing on outstanding early

childhood education management

Quality Education & CareTo nurture and develop children’s minds, social skills and confidence

in a safe and stimulating environment.

EmployeesTo commit to employee

development and a rewarding culture which will ensure an

engaged and driven workforce.

CommunityTo be responsive to local families and deliver upon community

expectations.

ProfitabilityTo grow and derive value for

shareholders through innovative services, systems and

management.

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G8 2011 Audited ResultsFinancial year ended 31 December 2011

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2011 Audited Results

Source: Annual Report Lodged 27 February 2012

• Operating cash flow for 2011 was lower than NPAT. This was due to a full week of revenue being received in January 2012 because 31 December 2011 was a Saturday. The cashflow shortfall was a timing issue which corrected itself in January 2012.

Consolidated

Year end 31 December ($’000)2010 2011 Variance

Revenue 66,549 142,899 115%

Expenses (59,682) (118,017) 98%

Earnings Before Interest and Tax 6,867 24,882 262%

Interest (1,318) (2,188) 66%

Net Profit Before Tax 5,549 22,694 309%

Net Profit After Tax 3,480 17,250 396%

Less non‐recurring abnormal transactions:

Write back of Headstart deferred consideration to revenue ‐ (4,299)

Legal Expenses in respect of the Singapore court case (post tax effect) ‐ 956

Share based payment expense 1,040 ‐

Underlying Net Profit After Tax 4,520 13,907 208%

Underlying EPS (cents per share) 4.15 7.48 80%

Gearing ratio 20% 32%

Adjusted Gearing ratio (refer Note 22(f)) 20% 25%

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2011 Audited Results v Guidance

Source: Annual Report Lodged 27 February 2012

• Underlying Return on Equity has increased from 5% in 2010 to 12% in 2011.

• The Net Profit After Tax margin increased from 7% in 2010 to 10% in 2011.

Calendar Year 2011 Guidance $AUD million

Audited Full Year 2011 Results

$AUD million

%Change

Revenue 132.35 142.89 8.0%Expenses (112.09) (118.01) 5.3%Earnings Before Interest and Tax 20.26 24.88 22.8%Interest (1.90) (2.19) 15.3%Net Profit Before Tax 18.36 22.69 23.6%Non‐recurring abnormal transactions ‐ (3.34) ‐Net Profit After Tax 12.79 13.90 8.7%

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Australia

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Australian CentresState Total centres

Queensland 60

New South Wales 47

Victoria 9

Australian Capital Territory 6

South Australia 13

Total centres 135

Total licence Capacity per day 9,868

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Australian operations

• The trading environment continues to be buoyant with average 2012 annual occupancy across centres expected to exceed 2011 occupancies.

• Long Day Care rate increased 2.66% in January 2012 against the budget of 1.50%

• Total centre payroll costs for CY11 was 59% against an industry average of 63.5%*. Further reduction expected in CY12

• Centre EBIT margin for CY11 was 18%

*Source: IBISWorld Industry Report O8710, Childcare Services in Australia, April 2011

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Acquisition Improvements – 1HYRevenue EBIT EBIT margin

($’000) ($’000) (%)

ELS (settled Dec 2007)

1H10 16,013 2,261 14.1%

1H11 16,545 2,561 15.5%

Variance (%) 3.3% 13.3% 10.0%

Payce(settled 25 March 2010)

1H10 11,752 1,230 10.5%

1H11 12,941 2,180 16.8%

Variance (%) 10.1% 77.2% 60.0%

Kindy Patch (settled 14 March 2011)

1H10 11,356 1,056 9.3%

1H11 12,996 1,473 11.3%

Variance (%) 14.4% 39.5% 21.5%

Local Kids (settled 28 June and 10 September 2010)

1H10 Not Available – Private Companies

1H11 10,150 1,477 14.5%

Variance (%) N/A N/A N/A

Note: Due to the seasonality of the Australian child care industry the EBIT margin is stronger in the second half of the calendar year as centre occupancy grows.

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Acquisition Improvements – 2HYRevenue EBIT EBIT margin

($’000) ($’000) (%)

ELS (settled Dec 2007)

2H10 18,160 3,565 19.6%

2H11 19,029 4,267 22.4%

Variance (%) 4.8% 19.7% 14.2%

Payce(settled 25 March 2010)

2H10 11,497 2,355 20.5%

2H11 12,421 2,887 23.3%

Variance (%) 8.0% 22.6% 13.5%

Kindy Patch (settled 14 March 2011)

2H10 13,496 2,134 15.8%

2H11 15,715 3,090 19.7%

Variance (%) 16.4% 44.8% 24.4%

Local Kids (settled 28 June and 10 September 2010)

2H10 10,233 1,679 16.4%

2H11 11,662 2,260 19.4%

Variance (%) 14.0% 34.6% 18.1%

Note: Due to the seasonality of the Australian child care industry the EBIT margin is stronger in the second half of the calendar year as centre occupancy grows.

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Singapore

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Singapore CentresState Total centres

Owned centres 8

Operated centres* 12

Franchised centres 51

Franchisees seeking premises 10

Total centres 81

Total licence capacity per day for owned centres 618

* Refer 19 April 2011 announcement in relation to Cherie Hearts. G8 Education manages 12 of these centres while legal proceedings are resolved.

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Cherie Hearts Update

• The legal proceedings between G8 Education Limited and the Cherie Hearts Group, Sam Yap and Gurchran Singh in relation to various issues involving the contractual arrangements between the parties has been heard before Her Honour Justice Prakash in Singapore. The hearing commenced in Singapore in September 2011 and is now complete.

• Final submissions in the case were lodged on 16 December 2011. It is anticipated a decision will be made in early 2012.

• The original vendors, namely the Cherie Hearts group is not directly involved in operating the Cherie Hearts childcare centres.

• 12 of the 13 Cherie Hearts corporate centres continue to be operated by G8 Education pending judgment.

• Eight corporate centres in Singapore have been acquired directly and are operating strongly, as are the 51 Cherie Hearts franchised centres which have been operated by G8 Education Limited since 1 December 2010.For

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Looking forward

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Looking forward

G8 Education continues to perform strongly and is well positioned for further growth and additional acquisitions.

• In March 2012 Damien Peters joins G8 Education. Damien is an experienced Chief Financial Officer with more than 15 years experience in senior accounting and finance roles, most recently, as CFO of Retail Food Group, an ASX listed company with a market capitalisation in excess of $290 million.

• An increase in the proposed annual dividend of 50% to 6 cents per share (fully franked), payable quarterly, has been announced.

• Strong acquisition pipeline of over 70 centres with over 5,400 licencedplaces are being considered.

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Australian Group StructureBrian BailisonNon‐Executive

Director

Andrew KempNon‐Executive

Director

Chris ScottManaging Director

Jenny HutsonChairperson

Susan ForresterNon‐Executive

Director

Matthew Reynolds

Non‐Executive Director

Chris SacreChief Operating Officer/Company Secretary

Chris ScottManaging Director

Damien PetersChief Financial Officer

Jae FraserGeneral Manager, Operations

12 operations managers

135 centre directors

More than 2,870 centre staff

Over 9,800 Licenced places

Board of Directors

Senior Management

Operational

Operations Managers

Centre Directors

Childcare PersonnelFor

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Capital structureShares on issue 200,209,010

Cash on hand

Debt

Current Debt – National Australia Bank

Replacement debt facility with BankWest

$14.2 million

$36.4 million

$56.5 million

Dividend Policy

Quarterly dividends to 65% payout ratioDividend to be 1.5 cents per share from March 2012 quarter

Dividends are fully franked.

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Substantial shareholders

Shareholder Number of Shares Percentage holding

Perpetual Nominees Limited and subsidiaries 28.2 million 14.1%

Wallace Infrastructure Pty Ltd 24.0 million 12.0%

Paradice Investment Management Pty Ltd 14.8 million 7.4%

Northcape Capital Pty Ltd 17.5 million 8.7%

Greencape Capital Pty Ltd 10.4 million 5.2%

Source: Substantial shareholder notices lodged with ASX

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Board of Directors

Jenny Hutson, B.Com, LLB, FAIM, ChairpersonMerchant banker and fund managerExperienced corporate adviser and company directorOver 20 years experience in capital markets involving listed companies Member of the G8 Education Audit Committee.

Chris Scott, B.Econ(Hons), Managing Director Over 25 years experience in senior management positions including as founder and managing director of ASX listed S8 Limited which was an integrated travel company that made 36 acquisitions over 5 years and was capitalised at $700 million.More than 20 years business in Singapore where he was involved in a number of successful businessesExceptional operational, analytical and strategic skills critical in selection of potential acquisition.

Susan Forrester BA(Hons), LLB(Hons), EMBA, FAICD, FAIM, Non‐Executive DirectorExperienced company director with diverse portfolio careerKeen focus on strategic development, corporate governance, brand and reputation management and strategic human resourcesCurrently a director of Ergon Energy and a senior consultant to Board Matters Pty Ltd which provides expert advice to listed and unlisted boards on governance.

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Board of Directors

Brian Bailison B.Com, B.Acc (Cum Laude), ACA, Non‐Executive DirectorOver 15 years experience in finance, corporate finance and operations from senior roles in South Africa and Australia including senior positions at Rand Merchant Bank Limited and the Ivany Investment Group.Former director of Payce Child Care Pty Ltd which operated 59 child care centres prior to them becoming part of the G8 Education Group.Member of the G8 Education Audit Committee

Andrew Kemp, B.Com, CA, Non‐Executive DirectorManaging director of Huntington Group, a Queensland based advisory firm that has operated for over 25 yearsHas structured and implemented the ASX listing of over 10 companies in addition to other corporate advisory and investment activities. Mr Kemp joined AIFC, the merchant banking affiliate of the ANZ Banking Group in Sydney prior to establishing Huntington GroupMember of the G8 Education Audit Committee

Matthew Reynolds, BSc(Hons), LLB(Hons), MQLS, Non‐Executive DirectorExtensive experience in ASX Listings, management buy‐outs and mergers and acquisitions. Expert in providing high level advice in a stringently regulated and highly technical marketMr Reynolds is a director of the Thailand based conglomerate Minor International and its subsidiary Delicious Food Holdings. The group recently acquired the Oaks Hotel group in Australia. He has held a number of board positions on emerging companies in the energy and resources and technology sectors.

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Disclaimer

• This presentation has been prepared by G8 Education Limited based on the information available to them. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, neither G8 Education Limited ors its directors, employees or agents, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including, without limitation, any liability arising from fault or negligence on the part of G8 Education Limited or its directors, employees or agents.

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