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2023 Full Year Results Investor Presentation For personal use only
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Disclaimer The information in this presentation is an overview and does not contain all information necessary to make an investment decision. It is intended to constitute a summary of certain information relating to the performance of Embark Early Education Limited (“Embark Education”) for the current period. Please refer to the audited financial statements for the period ended 31 December 2025 that have been simultaneously released with this presentation. The information in this presentation does not purport to be a complete description of Embark Education. In making an investment decision, investors must rely on their own examination of Embark Education, including the merits and risks involved. Investors should consult with their own legal, tax, business and/or financial advisors in connection with any acquisition of financial products. The information contained in this presentation has been prepared in good faith by Embark Education. No representation or warranty, expressed or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation, any of which may change without notice. To the maximum extent permitted by law, Embark Education, its directors, officers, employees and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence on the part of Embark Education, its directors, officers, employees and agents) for any direct or indirect loss or damage which may be suffered by any person through use of or reliance on anything contained in, or omitted from, this presentation. This presentation includes non-GAAP financial measures in various sections. This information has been included on the basis that management and the Board believe that this information assists readers with key drivers of the performance of Embark Education which are not otherwise disclosed as part of the financial statements. Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as it is not an indication of future performance. This presentation is not a product disclosure statement, prospectus, investment statement or disclosure document, or an offer of shares for subscription, or sale, in any jurisdiction. 2 For personal use only
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Highlights For personal use only
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CY25 Overview • 1 Centre Acquisition in June taking portfolio to 39 • Embark became a substantial holder in Mayfield Childcare Limited (Mayfield)(ASX:MFD) on 29 October • Intention to make takeover bid for Mayfield announced on 7 November • Institutional placement completed in December raising $12 million to fund cash consideration of the off-market takeover bid for Mayfield • Bidders statement provided to market in December • Revenue growth of 29% in 2025 to $104.9 million. • Centre EBITDA growth of 16% to $25 million • Underlying EBITDA growth of 18% AUSTRALIAN BUSINESS SEES STRONG GROWTH EVENTS DIVIDENDS PAID • $0.015 dividend paid 19 March • $0.015 dividend paid 19 September • $0.015 dividend paid 17 June • $0.015 dividend paid 17 December 4 4 For personal use only
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Financial Highlights (CY2025 v CY2024) • Revenue growth of 29% to $104.9 million • Centre EBITDA growth of 16% to $25.1 million 0 20 40 60 80 100 120 Revenue Operating Expenses Underlying Centre EBITDA $ Million 2024 2025 5 • Underlying EPS of 9.04c per share • Underlying NPAT of $16.6m For personal use only
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Financial Performance For personal use only
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Financial Summary STRONG PERFORMANCE FROM CONTINUING OPERATIONS • Revenue growth of 29% driven by operational efficiency and new centre acquisition • WRA 54.6% • Support Office Costs 2.5% of revenue 2025 2024 Consolidated Consolidated $'000 $'000 Revenue 104,673 81,611 Centre Wages (57,192) (43,591) Centre Gross Profit 47,481 38,020 Centre Rent (10,346) (7,532) Other Centre Expenses (12,080) (8,851) Centre EBITDA 25,055 21,637 Corporate Costs (1,146) (1,288) Support Office Costs (2,628) (2,305) EBITDA (underlying) 21,281 18,044 Non-statutory accounts (pre AASB16) 7 For personal use only
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Financial Summary STRONG PERFORMANCE FROM CONTINUING OPERATIONS • Revenue of $104.9m 29% increase YoY • Profit before net finance costs and income tax of $26.1m 32% increase YoY • Statutory EPS of 5.81 cents 18% increase YoY • Underlying EPS of 9.04 cents 14% increase YoY 8 2025 2024 Note $'000 $'000 Revenue 5 104,905 81,611 Total revenue 104,905 81,611 Expenses Employee benefits expenses 6a (59,673) (45,754) Building occupancy expenses (1,601) (1,112) Centre operations expenses (9,924) (6,676) Depreciation and amortisation (5,502) (3,759) Acquisition expenses (141) (1,059) Other expenses (1,920) (3,460) Total expenses (78,761) (61,820) Profit before net finance expense and income tax 26,144 19,791 Finance income 6b 405 718 Finance costs 6b (11,202) (7,898) Net finance expense (10,797) (7,180) Profit before income tax 15,347 12,611 Income tax benefit/ (expense) 7a (4,638) (3,575) Profit after income tax attributable to the shareholders of the Company 10,709 9,036 Other comprehensive income Exchange differences on translation of foreign operations - 810 Total comprehensive income attributed to the 10,709 9,846 shareholders of the Company Earnings per share Cents Cents Basic earnings per share 27 5.81 4.92 Diluted earnings per share 27 5.81 4.92 For personal use only
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Balance Sheet Strong To Pursue Growth • $6.4m borrowings at 31 December 2025 • Cash of $20.7m and no term deposits at year end 9 31 December 2025 31 December 2024 Note $'000 $'000 Cash and cash equivalents 8 20,660 13,348 Trade and other receivables 9 4,942 4,813 Total current assets 25,602 18,161 Property, plant and equipment 10 2,430 2,259 Financial assets at fair value through profit or loss 20a 7,280 - Deferred tax asset 7c 8,218 6,190 Right-of-use assets 11 97,292 95,721 Intangible assets 12 103,041 101,065 Total non-current assets 218,261 205,235 Trade and other payables 14 1,958 2,365 Current income tax liabilities 1,132 1,430 Contract liabilities 508 507 Employee entitlements 15 7,048 5,290 Other current liabilities 24c 2,227 2,457 Borrowings - current 16 - 4,260 Lease liabilities - current 17 10,393 9,799 Total current liabilities 23,266 26,108 Borrowings - non-current 16 6,410 - Employee entitlements - non-current 15 558 488 Lease liabilities - non current 17 107,010 101,226 Total non-current liabilities 113,978 101,714 Net Assets 106,619 95,574 Issued share capital 18 271,003 259,656 Retained earnings (175,093) (171,206) Current year earnings 10,709 9,036 Translation reserve - (1,912) Total equity 106,619 95,574 For personal use only
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Appendix For personal use only
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Term Definition EBITDA Earnings before interest, taxation, depreciation and amortisation. Underlying EBITDA Earnings before interest, taxation, depreciation and amortisation less the effects of NZ IFRS 16: Leases, gains and losses on the sale or closure of businesses, acquisition and integration costs, impairment losses (or reversals of impairment losses), restructuring costs and non- operational items. Centre EBITDA EBITDA of centres (before Support Office expenses). Occupancy Number of children attending per period specified as a percentage of the service’s licensed places. Wage to Revenue ratio Employee benefits expense as a percentage of total revenue. Glossary 11 For personal use only