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Full Year 2018 Analyst Meeting 28 Feb 2019

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Page 1: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

Full Year 2018 Analyst Meeting

28 Feb 2019

Page 2: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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This presentation and the discussion that follows may contain forward-looking statements that involve known and unknown risks, uncertaintiesand other factors that may cause the actual results, performance orachievements of MindChamps PreSchool Limited (the “Company”) and itssubsidiaries or related entities (the “Group”) to be materially different fromany future results, performance or achievements expressed or implied bythese forward-looking statements. None of the Group, its advisers, or itsrepresentatives, is representing or warranting that the Group’s actual futureresults, performance or achievements will be as discussed in such forward-looking statements. Investors are advised that the actual performance,achievements, investment decisions and operations of the Group mayvary significantly from such statements. This presentation is for informationpurposes only and does not constitute or form any part of an offer of, orinvitation or solicitation to purchase or subscribe for, any shares or securitiesin any jurisdiction in the Company. None of the Group, its advisers, or itsrepresentatives, shall be liable whatsoever for any loss arising, whetherdirectly or indirectly, from any use or distribution of this presentation or thecontents herein.

Disclaimer

Page 3: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

Presented by Mr. David Chiem Phu AnFounder Chief Executive Officer and Executive Chairman

Business Updates

Page 4: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

Presented by Mr. Teo Wee JoneChief Financial Officer

Performance Highlights

Page 5: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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Key Financial Highlights (S$Mil)

$22.8

$7.7

$15.1

$10.3

$6.3$5.2 $4.9

$37.0

$14.7

$22.3

$17.7

$8.1$6.8 $6.5

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

$40.0

Revenue COS Gross profit OPEX Operatingprofit

Profit beforetax

Net Profit

2017 2018

Page 6: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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Revenue Trend

$18.4 $22.0

$25.2

$0.8

$11.8

2016 2017 2018

Singapore Australia

+$4.3 (23%)$18.4

+$14.2 (62%)

$22.8

$37.0

68%96%

100%

4%

32%

Total Revenue (S$Mil)

Page 7: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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5 6 74

11

36

43

453

6

11

2016 2017 2018FOFO Centres (Overseas)FOFO Centres (Singapore)COCO Centres (Australia)COCO Centres (Singapore)

44

59

74

Growth of Centres and Students

615 654 757

206 659

2,054

2,358

2,518 52

86

265

2016 2017 2018FOFO Centres (Overseas)FOFO Centres (Singapore)COCO Centres (Australia)COCO Centres (Singapore)

+583 (21%)

2,721

3,304

4,199

+895 (25%)

Total Number of Centres

+15 (34%)

+15 (25%)

Total Number of Students

Page 8: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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AU Education

$11.8 32%

SG Franchise

$10.0 27%

SG Education

$15.2 41%

AU Education$0.8 4%

SG Franchise$8.5 37%

SG Education$13.5 59%

2017 2018Total: $22.8 Total: $37.0

Revenue Mix (S$Mil)

Page 9: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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19.8

32.8

3.0

4.2

2017 2018

Recurring Non-recurring

High Proportion of Recurring Revenue

(1) (2)

37.0

22.8

Notes:1. Comprises school fees, royalty fees, sales of merchandise,

school event income and other income that recurperiodically

2. Comprises franchise income resulting from franchise sales

Page 10: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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Gross Profit Mix

(S$Mil)

FOFO$7.5 50%

COCO$7.6 50%

FOFO$9.2 41%COCO

$13.1 59%

SegmentGP Margin

(%)

COCO56%

COCO49%

FOFO89%

FOFO92%

2017 2018

2017 2018

66% 60%Group GP Margin (%)

15.1 22.3Group GP

(S$mil) 47%

6%

Gross Profit Analysis

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Revenue

Operating profit

Profit after taxation

2018 Financial Performance

62%

47%

29%

31%

33%

Gross profit

Profit before taxation

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Consolidated Income StatementQ4 2018 vs Q4 2017

N.M: Not Meaningful* Variance less than 1%

Q4 2018(S$’000)

Q4 2017(S$’000)

Variance(S$’000)

Variance (%)

Revenue 14,131 8,317 5,814 70%

Cost of Sales (5,297) (1,938) (3,359) N.M

Gross Profit 8,834 6,379 2,455 38%

GP Margin 63% 77% (14%)

Other Income 794 483 311 64%

Operating Expenses (5,417) (3,478) (1,939) (56%)

Operating Profit 4,211 3,384 827 24%

OP Margin 30% 41% (11%)

Foreign Exchange Loss (68) (17) (51) N.M

Non-Operating Expenses (475) (1,057) 582 (55%)

Profit Before Taxation 3,668 2,310 1,358 59%

PBT Margin 26% 28% (2%)

Income Tax Credit / (Expense) 94 (44) 138 N.M

Profit After Tax 3,762 2,266 1,496 66%

PAT Margin 27% 27% (0%)*

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2018(S$’000)

2017(S$’000)

Variance(S$’000)

Variance (%)

Revenue 36,960 22,791 14,169 62%

Cost of Sales (14,639) (7,656) (6,983) (91%)

Gross Profit 22,321 15,135 7,186 47%

GP Margin 60% 66% (6%)

Other Income 3,427 1,442 1,985 N.M

Operating Expenses (17,655) (10,302) (7,353) (71%)

Operating Profit 8,093 6,275 1,818 29%

OP Margin 22% 28% (6%)

Foreign Exchange Loss (198) (13) (185) N.M

Non-Operating Expenses (1,072) (1,060) (12) (1%)

Profit Before Taxation 6,823 5,202 1,621 31%

PBT Margin 18% 23% (5%)

Income Tax Expense (336) (312) (24) (8%)

Profit After Tax 6,487 4,890 1,597 33%

PAT Margin 18% 21% (3%)

Consolidated Income Statement2018 vs 2017

N.M: Not Meaningful

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31.12.18(S$’000)

31.12.17(S$’000)

Variance(S$’000)

Variance (%)

Current Assets 47,584 47,411 173 0%*

Non-Current Assets 46,248 23,792 22,456 94%

Total Assets 93,832 71,203 22,629 32%

Current Liabilities 17,278 9,718 7,560 78%

Non-Current Liabilities 15,868 4,817 11,051 N.M

Total Liabilities 33,146 14,535 18,611 N.M

Net Assets 60,686 56,668 4,018 7%

Capital and Reserves Attributable to Equity Holders of the Company

60,735 56,700 4,035 7%

Non-Controlling Interests (49) (32) (17) N.M

Total Equity 60,686 56,668 4,018 7%

Consolidated Balance Sheet

* Less than 1%N.M: Not Meaningful

Page 15: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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2018(S$’000)

2017(S$’000)

Net Cash Provided by Operating Activities 7,141 5,494

Net Cash Used in Investing Activities (24,320)(18,906)

Net Cash Provided by Financing Activities 13,45148,919

Net (Decrease)/Increase in Cash and Cash Equivalents (3,728) 35,507

Cash and Cash Equivalents at Beginning of Financial Period39,377 3,874

Effects of Currency Translation on Cash and Cash equivalents (212) (4)

Cash and Cash Equivalents at End of Financial Period 35,437 39,377

Consolidated Statement of Cash Flows 2018 vs 2017

Page 16: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

Q&A Session

Page 17: Analyst presentation (v27.02.2019) (Presentation Use)...Microsoft PowerPoint - Analyst presentation (v27.02.2019) (Presentation Use) Author: boonyiplee Created Date: 2/28/2019 6:45:07

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• No. of schools up by 80%, from 10 to 18

• Students up by 25%, from 3,304 to 4,199

• Revenue up by 62%, from $22.8mil to $37.0mil

• Op Profit up by 29%, from $6.3mil to $8.1mil

• PAT up by 33%, from $4.9mil to $6.5mil

• Current Ratio: 2.75• Debt Ratio: 0.35• ROIC: 13%• Recommended

Dividend: 1.34cts / Share (approx. 2.5% yield)

• Operating cashflow: $7.1mil

• Ongoing M&A activities

• Focusing on Australia Franchise