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G8 EDUCATION LIMITED 2025 Full Year Results Presentation 23 February 2026 G8 Education | 2025 Full Year Results 1 UPDATE IMAGE For personal use only
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SHADING TEXT Accent Colours DISCLAIMER & NON-IFRS INFORMATION The material in this presentation has been prepared by G8 Education Limited (G8)(ASX:GEM) and is general background information about G8’s activities current as at the date of this presentation. The presentation does not purport to be complete and should be read in conjunction with G8’s other periodic and continuous disclosure announcements which are available via www.asx.com.au. This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire G8 securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. This presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “predict”, “plan” and other similar expressions are intended to identify forward- looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performa nce. Actual results, performance or achievements may vary materially for many projections because events and actual circumstances frequently do not occur as forecast and these differences can be material. This presentation contains such statements that are subject to risk factors associated with the industry in which G8 operates which may materially impact on future performance. Investors should form their own views as to these matters and the assumptions on which any forward-looking statements are based. G8 assumes no obligation to update or revise such information to reflect any change in expectations or assumptions. The inclusion of forward-looking statements in this presentation should not be regarded as a representation, warranty or guarantee with respect to its accuracy or the accuracy of the underlying assumptions or that G8 will achieve, or is likely to achieve, any particular results. Neither G8, not its related bodies corporate, directors, officers, employees, agents, contractors, consultants or advisers ma kes or gives any representation, warranty or guarantee, whether express or implied, that the information contained in this presentation is complete, reliable or accurate or that it has been or will be independently verified, or that reasonable care has been or will be taken by them in compiling, preparing or furnishing this presentation and its context. Non IFRS information G8 results are reported under International Financial Reporting Standard (IFRS). This presentation also includes certain non–IFRS measures including “adjusted”, “operating” and “underlying”. These measures are used internally by management to assess the performance of our business, mak e decisions on the allocation of resources and assess operational management. Non- IFRS measures have not been subject to audit or review. All numbers listed as ‘statutory’ or ‘reported’ comply with IFRS. G8 Education | 2025 Full Year Results | 2 For personal use only
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3G8 Education | 2025 Full Year Results For personal use only
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SHADING TEXT Accent Colours AGENDA SUMMARY AND PROGRESS Pejman Okhovat FINANCIAL PERFORMANCE Steven Becker CURRENT TRADING AND OUTLOOK Pejman Okhovat QUESTIONS Pejman Okhovat and Steven Becker APPENDIX G8 Education | 2025 Full Year Results | 4 For personal use only
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SHADING TEXT Accent Colours SUMMARY AND PROGRESS G8 Education | 2025 Full Year Results | 5 For personal use only
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SHADING TEXT Accent Colours EVERYTHING IN OUR WORLD STARTS WITH CHILDREN G8 Education | 2025 Full Year Results | 6 We are driven by our purpose in “To nurture the greatness in every child to grow, thrive and learn” For personal use only
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SHADING TEXT Accent Colours KEY MESSAGES Strong operational execution and safety focus underpin resilience in a challenging market G8 Education | 2025 Full Year Results | 7 At G8 Education we are committed to providing safe, high-quality care and education that empowers children to thrive SAFETY, REGULATORY AND COMPLIANCE • Performance across the controllable balanced-scorecard metrics remained strong, supported by consistent operational focus and execution • Occupancy continued to be affected by tough market conditions, with birth rates continuing to fall year on year, increased supply, sector trust and confidence impacted by media coverage and families experiencing sustained affordability pressures, • Strong progress in improving network quality, with continued uplift in the Group overall NQS toward all centres rated ‘Meeting’ or above • Team retention continued to strengthen, underpinned by positive engagement and an additional 5% wage uplift for award-based team members through the ECEC Worker Retention Grant • Family engagement continued to improve, with positive momentum across key experience drivers, particularly individual learning, educational programs and safety • Earnings were affected by the challenging operating environment, with prudent cost management helping to maintain EBIT margin stability • Ongoing, targeted efforts are supporting greater value and efficiency across our cost base • A conservative balance sheet was maintained, with stable liquidity and low gearing • Maintained a cautious capital management approach, balancing operational needs with shareholder returns in a challenging market • Network optimisation continued with 5 centres divested and 6 leases surrendered or expired PRUDENT CAPITAL MANAGEMENT POSITIVE BALANCED SCORECARD MOMENTUM • Unwavering commitment to continuously strengthening child-safe policies and procedures, aligned with national and state regulation, including the following: • Dedicated safety leaders in every centre, supported by mandatory training and clear accountability • Strong compliance and oversight through enhanced systems, regular reviews and independent assurance • Active engagement with governments and regulators to support reforms that strengthen child safety and transparency • Ongoing oversight and governance provided through the Board Safety Committee For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 8 REPORTED Statutory EBIT ($234.7)m NPAT ($303.3)m EPS (39.2)c DPS 2.0c Revenue $948.2m Key factor of driving our financial performance: • Occupancy in CY25 H2 continued to be constrained by affordability pressures and confidence and trust in the sector, which contributed to reduced enquiry levels across the sector. CY26 has also seen a softer start to occupancy levels • The main difference between operating and reported NPAT relates to the goodwill impairment of c$350m • Operating cost lower than pcp with ongoing cost discipline ensured a well-controlled cost base, consistent with our focus on operational efficiency • Fully franked total dividend of 2c (paid 3rd October 25), representing 34% of reported NPAT excluding goodwill impairment expense. No final dividend will be paid. Note: All measures are relative to the prior corresponding period unless otherwise stated 1. Refer to Note 7 of G8 Financial Report for non-trading items FINANCIAL OVERVIEW Earnings impacted by softer occupancy Operating Costs $853.6m OPERATING Excludes non-trading1 items and includes lease interest expense Revenue $946.9m EBIT (lease adjust) $93.3m NPAT $59.0m GROUP OCCUPANCY 65.8% Current Occupancy - week ended 15 February 2026 54.4% (Spot) All references to occupancy include all centres 57.2% (YTD) % change vs pcp % change vs pcp 7.0% 5.4% 18.9% 18.4% 7.2% 253.6% 548.1% 568.1% 63.6% 7.8% pts vs. PCP 7.5% pts vs. PCP 4.9% pts Vs CY24 Occupancy For personal use only
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SHADING TEXT Accent Colours ENVIRONMENTAL, SOCIAL AND GOVERNANCE HIGHLIGHTS Delivering long term value through disciplined governance, service quality, workforce stability and environmental commitments G8 Education | 2025 Full Year Results | 9 1. Electricity used by 287 homes based on avg. 4,000 kWh per home 2. Does not include any bottled LPG or consumption met by on-site solar generation Nappy Recycling Pilot Exploring waste reduction Emissions 9.4% reduction in Scope 1 and Scope 2 emissions compared to FY24 Solar generation Generated 1,146,365 kWh power, equivalent to offsetting 758.28 tonnes of CO2-e (or 287 homes1) Strong Career Pathways 55% of Centre Manager appointments filled through internal promotion Faster, stronger hiring Average speed to hire improved by 14% yoy, achieved alongside enhanced screening and governance processes Board Diversity >50% female Board ECEC Wage Uplift Additional ECEC Worker Retention Grant uplift totalling 15% wage increase since December 2024 Reconciliation Action Plan 100% of RAP deliverables completed for Reflect RAP CCTV Rollout Finalising scope and implementation for network-wide CCTV program Network Quality 95% of centres are “meeting” or “exceeding” the overall NQS Family Engagement NPS 53 up 3pts vs pcp Established Safety Committee Dedicated Board Committee responsible for oversight of child safety governance, compliance and safeguarding performance Inaugural Climate Disclosure Published first climate-related financial report in compliance with new Australian standard Enterprise Risk Management Comprehensive refresh of enterprise risk management framework and risk registers to strengthen governance and risk oversight Scenario Analysis Completed scenario analysis to assess and respond to climate- related risks and opportunities Climate Risk Framework Developed and implemented a structured framework to identify, assess, manage and report climate- related risks and opportunities Educational Excellence 96% of centres are “meeting” or “exceeding” the NQS Quality Area 1 – Educational program and practice ECT Vacancy Reduction Early Childhood Teacher (ECT) vacancies reduced by 25%, reflecting improved teacher retention For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 10 Strong results in controllable strategic focus areas with occupancy and margin being impacted by market conditions and sector confidence 1. 1. Quality Area 1 – Educational program and practice of NQS. The aim of Quality Area 1 is to ensure that the educational program and practice is stimulating and engaging and enhances children's learning and development. 2. Operating EBIT less lease interest BALANCED SCORECARD Measure Team retention NPS % of centres meeting or exceeding overall National Quality Standard (NQS) % of centres meeting or exceeding Quality Area 1 of NQS1 Occupancy EBIT margin2 CY25 (Actual) 96% 79% 53 65.8% 9.9% 95% Progress CY24 to CY25 2% pts 3 pts 2% pt 2% pt 4.9% pt 1.4% pt Team Operating Model Team Quality Education & Inclusion Financial Sustainability Family Experience Strategic focus area For personal use only
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SHADING TEXT Accent Colours TEAM Solid employer brand supporting attraction, higher retention and a robust internal talent pipeline RETAINING TEAM GROWING OUR OWN TALENT G8 Education | 2025 Full Year Results | 11 ATTRACTING TEAM • Strong internal career pathways and succession planning, with 55% of Centre Manager appointments filled through internal promotion • Redesigned talent pathway program to better identify future leaders and develop our own talent • Strengthened employer brand through targeted storytelling and clear career pathways, supported by a strong recruitment process, resulting in: • Effective career website for attraction • Enhanced screening and governance processes • 33% reduction in permanent vacancies vs pcp • Average time to hire rates improving 14% vs pcp • Team Engagement has seen a marginal decrease on CY24 however still well exceeds Australia and Sector Benchmarks Centre Manager (CM) and ECT retention Connecting team to align focus and improve culture Team vacancies continue to reduce further stabilising workforce G8 student enrolments Sector leading professional development to improve workforce capability • Embedded culture and values delivering stronger centre outcomes • The introduction of Employee Lifecycle surveying has strengthened our understanding of the drivers of retention across onboarding and exit points, providing deeper insight into engagement factors such as inclusion, psychological safety and trust in leadership • Additional 5% fully funded ECEC Worker Retention Grant uplift totalling an extra 15% wage increase since Dec 24 Team engagement 86% 72%86% 78% CM Retention ECT Retention 2024 2025 78% 76% CY24 Q4 CY25 Q4 516 592 172 313 549 117 - 200 400 600 Certificate III active students Diploma active students Bachelor active students CY24 CY25 For personal use only
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SHADING TEXT Accent Colours FAMILY EXPERIENCE Improved family sentiment driven by trust, quality education and safety, despite affordability pressures and sector confidence NPS FREQUENCY1 G8 Education | 2025 Full Year Results | 12 FAMILIES – NEW AND EXISTING • NPS reached its highest level since the launch of Voice of Customer program in May 2023 • Family Value Proposition successfully launched and is in the process of being embedded, targeting key family drivers • Key drivers of family experience continue to trend positively, particularly understanding individual child needs and safety • NPS for families with children aged 3–5 years continued to improve, especially with school readiness and quality of educational programs • Affordability has impacted the ability for families to commit to uplift in permanent days • Discounted casual day offer drove increase frequency in CY25 Q4 • CCS hourly cap is impacting family’s frequency as a result of higher out of pocket fees Frequency flat vs pcp with no sustainable change to CCS • Enquiry levels in CY25 H2 softened vs pcp, reflecting affordability challenges for families and competitive market conditions and sector confidence • Marketing spend was comparable to pcp reflecting a consistent approach to enquiry generation • Conversion has remained steady in a tough market Positive family sentiment driving improvements in NPS outcomes Enquiries remain in line with pcp, affordability impacting conversion 1. Frequency refers to average bookings per child per week Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Frequency By Month 2024 2025 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year on Year Enquiries By Month 2024 2025 50 53 2024 2025 All families NPS (Rolling 12 Months) For personal use only
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SHADING TEXT Accent Colours QUALITY, EDUCATION AND INCLUSION G8 Education | 2025 Full Year Results | 13 QUALITY EDUCATION G8 meeting/exceeding1 % vs. sector average2 to date 1. For long day care services 2. Quality Area 1 – Educational program and practice of NQS INCLUSION G8 meeting/exceeding QA12 % vs. sector average to date • 95% Meeting or Exceeding across the G8 network which is 4% pts above the sector average • Monthly learning communities held to support Educational Leaders in driving continuous improvement • Centres rated Working Towards continued to receive additional support and have reduced in numbers % of G8 Network with commenced or published RAP Outperforming the sector with 95% of centres meeting or exceeding NQS 98% 2% Commenced Not commenced • Inclusion support plan templates implemented to support children with additional needs and support team with responsive practices • Interactions with children resource guide developed to support responding to children’s more complex behaviours and co regulation • Reconciliation Action Plans lifted to 98% of all centres commenced or published • Teacher retention improved 6%pts vs pcp underpinned by ECT First Steps and Teach@G8programs. These initiatives continue to support the delivery of funded programs for 3- and 4-year-olds and ensure centres meet the requirement for two ECTs • Digital Literacies @ Play continued to expand in NSW and Victoria as a differentiated program in the year prior to school 95% 96% 95% 90% 91% 92% 93% 94% 95% 96% CY24 CY25 Sector CY25 93% 95% 91% 90% 91% 92% 93% 94% 95% 96% CY24 CY25 Sector CY25 For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 14 OCCUPANCY • Occupancy for CY25 was 65.8%, 4.9% pts below CY24 • Western Australia and Victoria experienced the most significant occupancy pressures with impacts of softening demand more limited in Queensland and NSW • Macros have continued to impact occupancy outcomes: • Affordability pressures contributed to challenging operating conditions • Supply pressures remained evident in Victoria and WA, alongside difficult supply-demand conditions across the rest of the network • LDC childcare participation has been impacted by cost-of-living pressures and declining birth rates • Trust and confidence in the sector has been impacted by recent events and media coverage OCCUPANCY PERFORMANCE Economic headwinds have softened enquiry levels, impacting occupancy 68% 64% 73% 67% 2024 2025 Group Occupancy - Half-on-Half H1 H2 CY24 70.7% CY25 65.8% 55% 60% 65% 70% 75% 80% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Group Occupancy 2024 2025 For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 15 OPERATING MODEL Disciplined execution and focused initiatives to strengthen core operations OPERATING MODEL IMPROVEMENTS Safety • Our Safety Leader Program has been embedded across the network, underpinned by consistent meeting and training rhythms that strengthen safety leadership and ensure centres remain closely connected to support structures. Our CCTV project has gone through a rigorous procurement process and will start to be rolled out in CY26. Agile Network Planning • We have streamlined meeting patterns to better deliver training and initiatives through the network including enhancing centre leadership meetings. Systems and efficiencies • Improved system rollout strengthening insight into centre performance and enabling faster action Enrolment, transitions and growth (ET&G) • Strong cross-functional execution—particularly of the ET&G operational plan—enhanced performance across core occupancy drivers. These improvements were partially offset by softer market conditions that reduced enquiries. Turnaround Program • Program was extended to include 2 new waves focusing on team, capability, family experience and facilities targeting occupancy growth. For personal use only
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SHADING TEXT Accent Colours Capex (excl SaaS) = $45.7m vs $34.6m in pcp FINANCIAL SUSTAINABILITY Disciplined capital and cost management underpinning a strong balance sheet without compromising safety and compliance COST MANAGEMENT • Cost base remained well controlled, supported by ongoing focus on operating discipline and continued benefit from strategic procurement activities • Wages as % revenue was slightly higher yoy with continued wage optimisation supporting additional safety training • Prudent management of support office costs resulted in a 3.6% reduction G8 Education | 2025 Full Year Results | 16 CAPITAL ALLOCATION • Operating cash flow continued to be strong, supported by effective cost management and solid cash conversion • Capex delivered in line with target, supporting strategic centre improvement and uplift in centre based resources • Fully franked total dividend of 2c (paid 3rd October 2025), representing 34% of reported NPAT excluding goodwill impairment expense • Share buyback of 38.4m shares ($42.6m) during the year • Net debt increased as a result of increase capex spend and share buy back NETWORK OPTIMISATION • CY25 network optimisation saw 5 centres divested, 4 surrendered leases and 2 expired leases • Portfolio optimisation activity will continue, assessing underperforming centres to refine and strengthen the network footprint Centre overhead costs (excl wages) year-on-year 5 Centres divested 6 Leases surrendered/expired 0 New centres Network optimisation delivers positive earnings outcomes 33.2 9.0 3.5 Centre Improvements Equipment and Resources Technology (excl SaaS) -10% -5% 0% 5% 10% $90 $95 $100 $105 CY22 CY23 CY24 CY25 $m Centre Other Costs % change For personal use only
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SHADING TEXT Accent Colours FINANCIAL PERFORMANCE G8 Education | 2025 Full Year Results | 17 For personal use only
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SHADING TEXT Accent Colours 45.7 63.4 72.4 59 80.3 100.6 115 93.3 0 20 40 60 80 100 120 140 CY22 CY23 CY24 CY25 Operating NPAT Operating EBIT G8 Education | 2025 Full Year Results | 18 GROUP PERFORMANCE Group performance impacted by softer occupancy, partially offset by disciplined cost management 1. Includes Leor (ceased operation CY24 Q1) 2. Operating EBIT (adjusted for leases) = Reported EBIT ($234.7m) – Lease Interest (note 21 of the Annual Financial Report $41.5m) + pre-tax non-trading items (note 7 of the Annual Financial Report $369.5m) 3. Excludes interest expense on lease liabilities. 4. Tax before non-trading items. Refer to note 7 of the Annual Financial Report for tax benefit from non-trading items. Operating EBIT & Operating NPAT 3 year trend Operating and statutory NPAT was impacted in challenging market conditions: • Revenue was lower vs pcp as a result of occupancy shortfall vs pcp • Disciplined procurement efforts supported a well-controlled cost base, delivering value for money and savings • Underlying network support office costs reduced yoy • Finance costs decreased as result of improved borrowing rates from debt refinance • Effective tax rate excluding non-trading items remained consistent year-on-year • Non-trading items primarily relate to goodwill impairment expense, portfolio optimisation and SaaS expenses as a result of new systems. The goodwill impairment expense that was recognised in the current year, reflects a prudent re-assessment of underlying performance. $m $m CY25 CY24 Change Group operating revenue 946.9 1017.7 (7.0%) Centre operating EBIT 155.3 179.3 (13.4%) Network support costs1 (62.0) (64.3) (3.6%) Group operating EBIT2 93.3 115.0 (18.9%) Group operating EBIT 2 margin 9.9% 11.3% (1.4%) Net finance costs3 (7.9) (10.6) (25.5%) Tax4 (26.4) (32.0) (17.5%) Operating NPAT 59.0 72.4 (18.4%) Operating NPAT margin 6.2% 7.1% (0.9%) SaaS expense (3.7) (0.7) Net loss on centre exits (2.0) (1.2) Net restructuring, regulatory and legal recovery 2.3 (0.0) Net impairment expense (358.8) (2.8) Total non-trading items (after tax) (362.2) (4.7) Reported Net (Loss) / Profit After Tax (303.3) 67.7 (548.1%) For personal use only
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SHADING TEXT Accent Colours CENTRE PERFORMANCE Consistent centre execution delivering resilient margins despite occupancy pressure • Centre performance was impacted primarily by the occupancy shortfall vs pcp. • Employment costs have decreased vs pcp, driven by lower booking volumes • Wages as % of revenue increased slightly • Operating expenses decreased yoy driven by lower bookings and continued cost discipline • Rent as % of revenue has increased as a result of CPI and market reviews c5% • Depreciation has increased slightly due to the increased investment in capital works completed on centre upgrades and centre-based resources G8 Education | 2025 Full Year Results | 19 Centre costs as a % of operating centre revenue3 Centre performance $m CY25 CY24 Change Group occupancy 65.8% 70.7% -4.9% Revenue 946.7 1014.2 -6.7% Employment costs 537.0 573.2 -6.3% Rent Proxy1 127.3 129.6 -1.7% Depreciation 31.2 31.0 0.4% Other 96.0 101.2 -5.1% Centre Expenses 791.4 834.9 -5.2% Centre operating EBIT2 155.3 179.3 -13.4% Centre EBIT2 Margin 16.4% 17.7% -1.3% % CY25 CY244 Change Employment costs 58.2% 57.9% 0.3% Rent 13.8% 13.1% 0.7% Depreciation 3.4% 3.1% 0.2% Other 10.4% 10.2% 0.2% 1. Proxy for rent expense comprising lease depreciation, lease interest and outgoings 2. Centre Operating EBIT (adjusted for leases) 3. Operating centre revenue excludes centre funding income 4. Based on % of operating centre revenue For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 20 UPDATE IMAGE CURRENT TRADING AND OUTLOOK For personal use only
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SHADING TEXT Accent Colours CHILD SAFETY AND PROTECTION G8 Education | 2025 Full Year Results | 21 • At G8 Education, we remain committed to upholding the highest standards of governance and social responsibility. • A key strategic priority for 2026 is to continue to raise the bar on safety and compliance. • We are working alongside all governments and regulatory authorities to strengthen the protection and wellbeing of children an d our team, and we welcome changes to legislation and regulations that meaningfully improve all aspects of safety, wellbeing and compliance. G8 Education appeared before the NSW Senate Inquiry on 23 September 2025 and will be appearing before both the Federal Senate Inquiry and the Victorian Select Committee Inquiry on Tuesday 24 February 2026. • In the latter part of 2025, our sector has seen significant sector regulatory reforms and strengthened child safety regulatio ns. Heightened compliance expectations of regulators has shaped operational priorities, and we have worked across our network to prepare for, and implement, these changes. We antici pate more reforms to come during 2026. • Reviewing and strengthening our practices and operational procedures is an “always on commitment” to drive transparency, acco untability, and trust. • During 2025 and the early part of 2026, we have continued to review and enhance our child safe policies and procedures. • Key highlights include: • All our policies and procedures align with national and state laws and regulations and have been updated to comply with recent and upcoming changes such as: • Prohibiting personal devices in rooms in centres (in force) • National register of educators (commencing February 2026) • National mandatory safety training (commencing February 2026) • The best interests of children are paramount in decision making at all levels (commencing February 2026) • Increased transparency regarding compliance history (in force) • Increased training and education of our team in respect of Child Safety and Child Safeguarding • Investment in physical and online environments to secure and promote child safety and wellbeing • Providing parents and carers with greater choice over their child's personal care routines • Investing in dedicated safety leaders in all our centres with protected time to support team and child safety • Implementation of a new compliance system over the last 18 months, providing visibility of safety and compliance matters across our network • We actively encourage the confidential and anonymous reporting of any concerns related to reportable conduct, in accordance w ith our Whistleblower Policy Safety, first and always For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 22 TRADING UPDATE • Group ‘spot’ occupancy 54.4%, 7.5% pts lower than pcp and 57.2% YTD 7.8% pts lower than pcp • A challenging operating environment has impacted occupancy in 2025 driven by: • Ongoing affordability challenges for our families • Continued trend of declining birth rates over the past 5 years • Confidence and trust in sector has been impacted by recent events and media coverage • Supply increasing and female workforce participation decreasing impacting demand • Significant changes to national law and regulatory operating environment requiring additional focus and resources • Changes to CCS activity test showing early signs of increase in frequency particularly in new families, slow uptake likely due to lack of awareness • A cautious approach to capital allocation was taken in response to softer sector conditions balancing operational priorities and shareholder returns • We anticipate CY26 capex to be circa $50m • No final dividend is to be paid in respect to year ended 31 December 2025 • Market buy back is currently paused CURRENT TRADING UPDATE Soft occupancy amid headwinds, disciplined capital response For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 23 Near-term operating conditions remain challenging, with ongoing cost-of-living pressures and no material relief from inflation or interest rates. Factors continuing to impact occupancy and operating environment in near terms; • Female work participation starting to flatten • Softer demand due to lower birthrates with Total Fertility Rate (TFR) declining to historic lows over the past two consecutive years1 • Ongoing significant change to regulation and compliance impacting operating environment and creating complexity • Supply into sector continues (albeit slowing down) • Cost of living issues with increasing inflation and interest rates impacting parents' affordability • Cost base increasing in attracting talent, regulatory compliance and other operating costs Medium to long-term dynamics remain encouraging: • Supporting participation via the three-day guarantee and further investment in kindy programs • State and federal government intention to create a more equitable and affordable early childhood • Current projections indicate the TFR is expected to increase over the medium term2 • Investment in uplifting quality and rebuilding trust in the sector • Supply starting to decline and some operators deciding to exit the sector OUTLOOK Focusing on improving our controllables, whilst prudently adapting to a new operating environment despite ongoing macro headwinds 1. Australia Government – Australian Institute of Family Studies: https://aifs.gov.au/all-research/facts-and-figures/births-australia. 2. Australian Government - Centre for Population, Population Statement 2025 (2026), p. 1: https://population.gov.au/sites/population.gov.au/files/2026 -01/population-statement-2025.pdf. For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 24 Given this backdrop to macro factors and conditions, we are actively adjusting to operate effectively in this new normal. We remain focused on strong execution and continue to further strengthen our core operations with initiatives focused on key safety and occupancy drivers. • Safety remains our top priority, supported by continuous improvement and strong regulatory adjustments • Deliver on family attraction and retention drivers • Continue to promote 3-day guarantee activity test changes • Strengthen team capability and attracting top talent • Positioned for performance resilience with proven ability to deliver cost base and remain diligent to managing costs to occupancy levels • Portfolio optimisation ongoing • Commitment to network efficiency as we navigate the new norm OUTLOOK (CONTINUED) 1. Australia Government – Australian Institute of Family Studies: https://aifs.gov.au/all-research/facts-and-figures/births-australia. 1. Australian Government - Centre for Population, Population Statement 2025 (2026), p. 1: https://population.gov.au/sites/population.gov.au/files/2026 -01/population-statement-2025.pdf. For personal use only
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SHADING TEXT Accent Colours QUESTIONS G8 Education | 2025 Full Year Results | 25 For personal use only
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SHADING TEXT Accent Colours APPENDIX G8 Education | 2025 Full Year Results | 26 UPDATE IMAGE For personal use only
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SHADING TEXT Accent Colours FINANCIAL STATEMENTS Consolidated Income Statement $m CY25 CY24 % change Continuing operations Revenue 946.8 1,015.3 (6.7%) Other income 1.3 6.5 (80.0%) Total 948.2 1,021.8 (7.2%) Expenses Employment costs (578.5) (621.2) (6.9%) Property, utilities and maintenance costs (53.0) (53.1) (0.2%) Direct costs (29.3) (34.2) (14.3%) Software development expenses (5.3) (1.0) 430.0% Depreciation and amortisation (106.5) (104.6) 1.8% Net impairment expense (364.6) (4.0) 9015.0% Other expenses (44.6) (49.6) (10.1%) Finance costs (50.6) (56.5) (10.4%) (Loss) / Profit before income tax (284.2) 97.7 (390.9%) Income tax expense (19.1) (30.0) (36.3%) Reported Net (Loss) / Profit after income tax (303.3) 67.7 (548.1%) G8 Education | 2025 Full Year Results | 27 Total centres and centre team members For personal use only
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SHADING TEXT Accent Colours FINANCIAL STATEMENTS Balance Sheet 1 - leases - leases 2 - non-lease -trading items -trading items3 5 $m 31 December 2025 31 December 2024 Non-current borrowings 155.0 114.0 Cash and cash equivalents 38.1 47.7 Net Debt1 116.9 66.3 Gearing ratio (%)2 18% 7% Gearing ratio 1. Net Debt excludes lease liabilities and current borrowings for insurance premium funding 2. Gearing ratio = Net Debt (excludes lease liabilities) / (Net Debt (excludes lease liability) + Equity). G8 Education | 2025 Full Year Results | 28 $m 31 December 2025 31 December 2024 ASSETS Current assets Cash and cash equivalents 38.1 47.7 Trade and other receivables 11.9 20.7 Government funding receivables 6.6 9.0 Other current assets 15.9 13.5 Total current assets 72.5 90.9 Non-current assets Property plant and equipment 150.6 136.3 Right of use assets 513.9 529.2 Deferred tax assets 103.6 97.5 Intangible assets 699.5 1,048.7 Investment in an associate - 0.9 Other non-current assets 2.7 3.9 Total non-current assets 1,470.3 1,816.5 Total assets 1,542.8 1,907.4 LIABILITIES Current liabilities Trade and other payables 79.6 83.5 Contract liabilities 6.7 6.9 Government funding liabilities 14.6 13.9 Current tax liability 2.2 10.2 Borrowings - 0.6 Lease liabilities 70.2 71.9 Provisions 77.1 75.5 Total current liabilities 250.4 262.5 Non-current liabilities Borrowings 155.0 114.0 Lease liabilities 593.9 597.5 Provisions 17.8 17.1 Total non-current liabilities 766.7 728.6 Total liabilities 1,017.1 991.1 Net assets 525.7 916.3 EQUITY Contributed equity 836.8 879.4 Reserves 116.2 140.0 Retained losses (427.3) (103.1) Total equity 525.7 916.3 For personal use only
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SHADING TEXT Accent Colours 87% 3%5%5% Utilised Borrowing Costs Commitment Fee Bank G'tee CASH FLOW CASH FLOW ALLOCATION G8 Education | 2025 Full Year Results | 29 Cash flow $m CY25 CY24 % change Cash flows from operating activities Receipts from customers (inclusive of GST) 957.1 1,021.7 (6.3%) Payments to suppliers and employees (inclusive of GST) (703.4) (772.8) (9.0%) Interest received 1.2 1.4 (14.3%) Interest paid (non-leases) (8.7) (9.9) (12.1%) Interest paid (leases) (45.1) (44.5) 1.3% Income taxes paid (33.1) (28.8) 14.9% Net cash inflows from operating activities 168.0 167.1 0.5% Cash flows from investing activities Payments for purchase of intangible assets (0.7) (0.6) 16.7% Payments for divestments and surrender fees (12.7) (11.7) 8.5% Payments for property plant and equipment (51.0) (31.9) 59.9% Acquisition of investment in associate - (0.1) Net cash outflows from investing activities (64.4) (44.3) 45.4% Cash flows from financing activities Dividends paid (43.0) (40.5) 6.2% Principal elements of lease payments (66.3) (69.9) (5.2%) Buy back of equity (including transaction costs) (42.6) (18.4) 131.5% Payments for purchase of treasury shares (1.8) - Net proceeds from borrowings 40.4 14.3 182.5% Borrowing costs paid - (0.9) Net cash outflows from financing activities (113.3) (115.4) (1.8%) Net (decrease) / increase in cash and cash equivalents (9.6) 7.4 (229.7%) Cash and cash equivalents at the beginning of the year 47.7 40.3 18.4% Cash and cash equivalents at the end of the year 38.1 47.7 (20.1%) 1. Cashflow non-trading and other adjustments in CY24 H1: wage remediation payments ($0.7m) & SaaS outflows ($4.6m). CY22 H1: CY20 rent relief unwind ($0.3m), wage remediation payments ($3.1m), restructuring costs ($1.3m) and SaaS outflows ($2.3m) 2. Excludes net proceeds from borrowings 3. Cash conversion = (Operating cash flow after lease payments and before interest and tax)/Operating EBITDA adjusted for lease expenses. Refer to slide 27 for cash conversion calculation 4. Free Cash Flow = Operating cash flow after lease payments, interest and tax less capex payments. Buy- backs Operating cash flow $103.8m Capital related outflows $51.7m3 Dividend payment $43.0m Free cash flow 2 $9.1m Investment in growth Divestments and surrenders $12.7m Return excess capital Share buy-backs $42.6m Strong cash conversion1 114% Debt Maturity Profile CY25 interest expense 1. Cash conversion = (Operating cash flow plus SaaS and non operating payments/receipts, and after lease payments and before int erest and tax)/Operating EBIT plus depreciation non-leases. 2. Free cashflow = (Operating cash flow after lease payments, interest and tax) less capex and dividends. 3. Cash outflow relating to capex including payments for purchase of intangible assets, payments for property, plant and equipment. See cash flow. Other SaaS $5.3m 45,000 55,000 100,000 - 20,000 40,000 60,000 80,000 100,000 Dec-29 Dec-27 Undrawn Drawn For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 30 DEMAND GROWTH DRIVERS Childcare participationFemale participation declining in CY25 Female employment-to-population ratio Source: ABS % Female participation declining along with increased flexible working arrangements Birth rates steadily declining since 2018, with childcare participation also declining Net supply is starting to show signs of slowing 54.0 55.0 56.0 57.0 58.0 59.0 60.0 61.0 62.0 63.0 64.0 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Sep-22 Jan-23 May-23 Sep-2023 Jan-2024 May-2024 Sep-2024 Jan-2025 May-2025 Sep-2025 816,070 825,850 839,140 845,980 836,260 800,000 805,000 810,000 815,000 820,000 825,000 830,000 835,000 840,000 845,000 850,000 2021 2022 2023 2024 2025 Children accessing centre-based care Source: Department of Education Net supply growth slowly declining 3.0% 3.5% 3.6% 3.6% 3.5% 3.3% 3.3% 3.7% 3.9% 3.5% 3.2% 2.7% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% Qtr 1Qtr 2Qtr 3Qtr 4Qtr 1Qtr 2Qtr 3Qtr 4Qtr 1Qtr 2Qtr 3Qtr 4 CY23 CY23 CY23 CY23 CY24 CY24 CY24 CY24 CY25 CY25 CY25 CY25 For personal use only
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SHADING TEXT Accent Colours G8 Education | 2025 Full Year Results | 31 MACRO DYNAMIC INFLUENCING AFFORDABILITY Unemployment remains low Unemployment rate % Source: ABS All groups CPI – Annual change % Source: ABS Cash rate Source: RBA Cash rate increasingCPI trending higher from CY25 H1 CPI increased in CY25 H2 Cash rate remained flat in CY25 Q4 and is continuing to impact family's affordability Unemployment has remained relatively unchanged 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Sep-25 Nov-25 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% Feb-23Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 0% 1% 2% 3% 4% 5% 6% 7% Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 For personal use only
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SHADING TEXT Accent Colours GOVERNMENT REFORMS | 32 Government remains committed to establishing a universal early learning and care system and to strengthening child safety 1. Three-day guarantee • From January 2026, all children will be entitled to at least 3 days’ subsidised ECEC each week, regardless of activity levels • In its first full financial year the 3 Day Guarantee is expected to benefit around 66,700 families 2. Establishment of a “Building early education fund” • A $1 billion fund established to build ECEC centres including in the outer suburbs and regional Australia • $500 million in grants for providers and state and local governments to establish new services. Grants will be targeted to priority and underserved markets 3. Service delivery prices project • A project to gain a data-driven understanding of the reasonable costs for ECEC service delivery • The project will enable Government to make further decisions about the pathway toward universal early childhood education and care • Deloitte Access Economics engaged to support delivering the project • Data to be collected from all services to understand existing costs, quality practices and cost benchmarks during third quarter 2025 • Report and findings to be delivered to Government by end of 2026 Building a universal, affordable ECEC system 1. Enacted changes • The Early Childhood Education and Care (Strengthening Regulation of Early Education) Bill 2025 was recently passed • Key reforms include: o Mandatory 24-hour reporting of allegations, complaints or incidents of physical or sexual abuse (replacing the current seven-day reporting window) o Power to withdraw Child Cares Subsidy (CCS) funding to a childcare centre that operates in a way that places children at risk o Ability for Commonwealth officers to perform spot-checks without prior warning to support earlier detection of fraud or non-compliance 2. Proposed reforms • At the August 2025 Education Ministers’ Meeting, they endorsed: o Creation of a nationwide register of all centre team members, including teachers, educators and cooks o Trial of CCTV cameras in 300 centres o Mandatory child safety training for educators o Banning of use of personal mobile phones • At the August 2025 Standing Council of Attorneys-General meeting, the Attorney-Generals agreed to urgently implement mutual recognition of negative Working with Children Checks by the end of 2025 Strengthening child safety G8 Education | 2025 Full Year Results | 32 For personal use only