Announcement PDF ASX Announcement ASX Code: NDO Results for announcement to the market 26 February 2025 In accordance with ASX Listing Rules 4.3A and 4.7, Nido Education Limited (ASX: NDO) attaches the following documents for release: 1. Appendix 4E; and 2. 2024 Annual Report. Shareholders are invited to participate in a conference call briefing in relation to the Company’s 2024 full year financial and operational results. Details of the conference call are as follows: Date and time: Thursday, 27 February 2025 at 11.00am (Sydney Time) Participant Registration Site: Please click here to register https://nidoeducation.edu.au/webinars/WPGqZe-ndo-cy24-results-briefing -EndsThis ASX announcement was authorised for release by the Board of Nido Education Limited. Investor & Media enquiries Mathew Edwards Managing Director P: 02 9712 7444 E: ir@nido.edu.au About Nido Founded in 2021, Nido Education Limited is a national owner, operator and manager of long day early childhood education and care services, operating under the Nido Early School brand. Visit: www.nidoeducation.edu.au ASX Announcement - Nido Education Limited ABN 12 650 967 703 i Nido Education Limited Appendix 4E 2024 Appendix 4E Preliminary final report under ASX Listing Rule 4.3A 1. Company details Name of entity: Nido Education Limited (ABN: 12 650 967 703) (ASX: NDO) Reporting period: For the year ended 31 December 2024 Previous period: For the year ended 31 December 2023 2. Results for announcement to the market Key information UP/ DOWN * MOVEMENT % 2024 $’000 2023 $’000 Revenue from ordinary activities up 75.2% 163,631 93,372 Earnings before interest, tax, depreciation and amortisation (‘EBITDA’) * – 42,267 (2,658) Pre‑AASB 16 EBITDA * – 21,954 (15,441) Pre‑AASB 16 NPAT * – 19,500 (14,947) Profit/(loss) from ordinary activities after tax for the year attributable to Nido Education Limited shareholders * – 14,652 (18,105) Net profit/(loss) for the year attributable to Nido Education Limited shareholders * – 14,652 (18,105) The percentage increase from the prior period has not been included as the movement from profit to loss or loss to profit cannot be expressed as a percentage. 3. Dividend information Final 2024 dividend per share determined AMOUNT PER SHARE (CENTS) FRANKED AMOUNT PER SHARE (CENTS) TAX RATE FOR CREDIT 5.8 2.03 30% On 26 February 2025, a final dividend for the year ended 31 December 2024 of 5.8 cents per ordinary share, partially franked was determined, with a record date of 19 March 2025. The dividend of $13.2 million will be paid on 28 March 2025. The dividend was not provided for in the financial statements. The Company’s Dividend Reinvestment Plan (DRP) will not apply to the FY24 final dividend. ii Nido Education Limited Appendix 4E 2024 Appendix 4E (continued) 4. Reconciliation to pre‑AASB 16 2024 $’000 2023 $’000 EBITDA 42,267 (2,658) Lease rental expense (pre‑AASB 16) (20,313) (12,783) Pre‑AASB 16 EBITDA 21,954 (15,441) 2024 $’000 2023 $’000 NPAT 14,652 (18,105) Lease rental expense (pre‑AASB 16) (20,313) (12,783) Right of use asset depreciation 10,146 6,248 Lease liability interest expense 17,092 11,033 RECONCILIATION TO PRE‑AASB 16 EBITDA RECONCILIATION TO PRE-AASB 16 NPAT Tax impact (2,077) (1,340) Pre-AASB 16 NPAT 19,500 (14,947) 2024 CENTS 2023 CENTS 0.03 (0.74) 5. Net tangible assets per security Net tangible assets per share 6. Control gained over entities During the reporting period Nido Education Limited gained control of Nest 6055 Pty Ltd and Think Childcare 3058 Pty Ltd on 27 September 2024. This Appendix 4E should be read in conjunction with the 2024 Annual Report. Additional information supporting the Appendix 4E disclosure requirements can be found in the Directors’ Report and the consolidated financial statements for the year ended 31 December 2024. The following information required by listing rule 4.3A is disclosed in the accompanying 2024 Annual Report: • The profit and loss statement. • The balance sheet. • The cash flow statement. • A statement of retained earnings. This report is based on the consolidated financial statements for the year ended 31 December 2024 which have been audited by KPMG. Annual Report 2024 Contents 01 About this report 02 About Nido Education Limited 03 Our Guiding Principles 04 Financial Highlights 06 Major Milestones 08 Chair and Managing Director Report 10 Strategy and Operations 12 Nido Early School’s Design Evolution 14 Consistency across Nido Services: Fostering Security and Familiarity 15 Achieving Success is always through our People 17 Corporate Governance 19 Directors’ Report 30 Remuneration Report 45 Lead Auditor’s Independence Declaration 46 Financial Report 90 Consolidated Entity Disclosure Statement 93 Directors’ Declaration 94 Independent Auditor’s Report 99 Security Holder Information 102 Investor Services We acknowledge the Traditional Custodians of the land, waters, and skies where we work and live across Australia. We pay our respect to Elders past, present and emerging. We celebrate the stories, culture, and traditions of Aboriginal and Torres Strait Islanders of all communities, who work and live on this land. Nido Education Limited Annual Report 2024 01 About this report Nido Education Limited presents this Annual Report for the financial year ended 31 December 2024. This report is intended to provide information to security holders about the Group’s activities and financial performance. 02 Nido Education Limited Annual Report 2024 About Nido Education Limited Nido Education Limited is a national owner, operator and manager of long day early childhood education and care services. Nido owns 56 Services across Australia with the graph highlighting where these 56 owned Services are in our portfolio. In addition to these owned Services, Nido manages 34 Services, with a further 12 Services in incubation (as at 31 December 2024). 28 11 The total number of Nido owned, operated and managed Services as at 31 December was 102, with over 10,000 children per day being immersed in Nido education, delivered by over 3,500 dedicated and passionate Teachers. 1 16 Our purpose Our mission Our vision To create an environment that supports teachers to rise and make a positive impact on the lives of children. To create an environment where people feel happy and fulfilled in their roles, with all our schools delivering quality education that meets or exceeds, in the Nido way, the National Quality Standard (“NQS”). To build the capacity of the world’s teachers so they can deliver quality early education to children in all places and in all circumstances. Nido Education Limited Annual Report 2024 03 Our Guiding Principles Nido’s Guiding Principles showcase the heart of Nido and how we seek to treat every individual as competent and capable. Our belief is that success is driven through the success of others, and only through everyone succeeding will Nido truly succeed. Our Guiding Principles unite Nido across communities, cultures and the different locations of each Service. These serve as a guide that every employee can base taking action on, and when making decisions, both big and small. Our people are competent and capable I am Nido, I am being Nido Our people are competent and capable; we do it with them and never for them or to them. Our success is through the success of others, and only through us all succeeding do I truly succeed. The way you treat an individual will reflect in how they see themselves and treat others. We advocate for ourselves, for each other, for children, families, and community. When we treat a person as “competent and capable”, we actively create an environment that encourages and supports people to empower themselves. The standard we walk past is the standard we accept. No matter who, in what role and how uncomfortable we may feel in raising the issue, we absolutely must. If you allow it you teach it. We encourage and support our people to have agency. Agency is recognising and supporting people’s right to make choices and decisions to initiate their own development, role execution and the freedom to rise. We actively seek the opportunity to be led, only ever taking the lead when the need exists. We invite questions, and answer in a way that re-enforces people are capable and competent of solving the problem with the appropriate amount of input. We are not afraid for our people to not succeed or make mistakes. We support people to rise and grow. We focus on what is the minimum that we can do for them to ensure success or near success. We always strive to do those one percenters because we know the little things do matter. We expect to be needed, we expect to need others, we expect to make a difference. We hold ourselves and each other accountable in an honest and respectful way. We are focused on the best ideas, and these may not always be the most popular ideas. We face problems head-on, we own the decisions made, we never say “I told you so”, we all own the result. We don’t accept that just because it has always been done that way that it should be done that way, we look to find a better way. It is ok to take it personally because you care, but we are always emotionally respectful and professional. We do it with them and never for them or to them. We know we aren’t perfect, but we strive to improve. Rise. 04 Nido Education Limited Annual Report 2024 Financial Highlights Operational Highlights 956,292 96% 1,770 4,963 Days of Learning delivered in 2024 Number of Educators as at 31 December 2024 12 opened Meet or Exceed Rating as at 31 December 2024 Licensed Places across the 56 owned Services Number of Services in Incubation as at 31 December 2024 Nido Education Limited Annual Report 2024 Group Performance Revenue Dividend 74% from FY23 per share $166.8m EBITDA* $22.0m from $15.4m loss in FY23 NPAT* $19.5m from a loss $14.9m in FY23 National Quality Standard Assessment and Rating progress Nido’s mission is to create an environment where people feel happy and fulfilled in their roles, with all our schools delivering quality education that meets or exceeds, in the Nido way, the National Quality Standard (NQS). As at 31 December 2024, the percentage of the owned portfolio Services rated Meeting or Exceeding the National Quality Standard, increased two percentage points to 96%. This is 6 percentage points above the national average for National Long Day Care (LDC) Services which stands at 90%. $5.8c Cash conversion 110% Net Leverage Ratio 0.16x 96% Services Rated Meeting or Exceeding the National Quality Standard as of 31 December 2024 94% Services Rated Meeting or Exceeding the National Quality Standard as of 31 December 2023 05 06 Nido Education Limited Annual Report 2024 Major Milestones Nido continues to enhance children’s lives through the investment of our existing shareholders 2014 2017 2019 The Nido story begins with Think Childcare Limited (TNK) in October, when TNK was listed on the ASX at A$1.00 per share, with a portfolio of 30 Services and a Market Cap of $39.6m and Enterprise Value (EV) of $46m. TNK acquired three Services and the ‘Nido Early School’ brand (which was established in Perth in 2014). TNK implemented a stapled security structure, where TNK shares were stapled to shares in Think Childcare Development Limited (“TND”) (“Think Group”). TND was focused on developing leasehold greenfield Services which once ‘traded up’ (meaning Services that had achieved the requisite occupancy and financial performance trade up, were sold to TNK. TND became the primary incubator for TNK, which saw the shift from external incubators to the purpose built, internal incubation model. Nido Education Limited Annual Report 2024 2021 2022 2023 2024 In October, Think (TNK) and TND (and the ‘Nido Early School’ brand) were privatised, with TNK selling for A$3.28 per share (including an $0.08 dividend) for market cap of $201.3m and EV of $251m. A joint venture was established between Alceon and an entity controlled by Mathew Edwards to fund the development of new Services through AES Pty Ltd. Nido acquired 24 Services, bringing the owned portfolio to 52, which included acquiring AES Pty Ltd. Nido acquired four Services from our incubation pipeline in September. TND was acquired by Nido, which was then controlled by Mathew Edwards, consisting of 16 Services in Trade Up, a development pipeline of sites, the support office team, the ‘Nido Early School’ brand, and all subsidiaries of TND, to form the Nido Group of companies. Nido opened 14 new Services in 2023. NAED (100% externally owned) was established as Nido’s primary incubator. In addition, Nido managed 43 Services on behalf of third parties under Service Management Agreements. 07 Nido delivered a $22.0m EBITDA, the first full year performance post-IPO. 08 Nido Education Limited Annual Report 2024 Chair and Managing Director Report On behalf of the Board and Managing Director, I am pleased to present our Annual Report for Nido Education Limited (Nido Education for the period ending 31 December 2024). The disciplined execution of our unique operating and growth model gave rise to earnings before interest tax and depreciation and amortisation (pre-AASB 16 EBITDA) of $22.0 million (2023: $15.4 million loss) and net profit after tax (pre-AASB 16 NPAT) of $19.5 million (2023: $14.9 million loss). Highlights • Our people in the Services, and those supporting them, delivered a quality of education and operated with distinction through a challenged environment for recruitment and in the face of families pulling back on spending to reduce the cost-of-living pressures. • The first four services were acquired from incubation in September 2024, 6 months ahead of expectation. • Refinancing was completed in February 2024, providing Nido Education with a $67 million acquisition facilities. • Continued to develop the incubation pipeline with currently 13 Services in incubation. We extended the management of 34 Services, which will deliver $3.4 million of revenue to 30 June 2026. Our People: The Heart of Nido Nido is a purpose for profit business, whose success is through its people. Great people lead to great quality education, which leads to great outcomes for children and families, leading to their desire to enrol at Nido which drives financial performance. Delivering Quality Education Nido has committed and passionate Educators and Teachers that provide children with innovative, relevant and evidence based educational programmes that seek to exceed the National Quality Standard (NQS). In 2024, 96% of our owned and managed Services met or exceeded the NQS, outperforming the sector average of 90%. Our Journey Toward Sustainability and Fostering Community Connections We are proud of the efforts that our Services make to integrate ESG values into everyday practices, which instils a sense of responsibility in children, families and Educators. Our Services align their goals with the UN Sustainable Development Goals, and focus our efforts to support our people to make a positive impact, whether through local excursions to get to know the community or celebrating and embracing the culture, values and languages of all Nido families. While our Board is responsible for overseeing our ESG strategy, it is our passionate Educators and children who drive these efforts from the grassroots. Financial Results – Pre AASB 16 Pre-AASB 16 EBITDA was $22.0 million (2023: $15.4 million loss). Nido Education Limited Annual Report 2024 09 Financial Results – Statutory Thank You Nido recorded a statutory net profit after tax (NPAT) of $14.7 million (2023: $18.1 million loss) and statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of $42.3 million (2023: $2.7 million loss). Nido acknowledges that early childhood and care is critical for lifelong learning and wellbeing, especially during a child’s first five years of brain development where children are wired to learn rapidly. On behalf of the Board and executive team we would like to thank you for your support and thank our Educators and Teachers for the energy and passion they dedicate to this sector and for the positive impact they have on the communities they serve. Capital Management Nido completed its refinancing activities in February 2024. The debt facility comprised a corporate market loan with a $25 million facility limit, an accordion facility with a facility limit of $30 million and a bank guarantee facility with a $12 million facility limit. As at 31 December 2024 Nido Education had net debt of $3.5 million. Dividend Nido has significant potential growth and the capacity to pay dividends ongoing. The Board determined a partially franked dividend of 5.8 cents per share, with a payment date of 28 March 2025. Looking ahead The child care and early learning sector is a critical part of Australia’s economic and social infrastructure. There is a growing awareness and appreciation of the benefits of structured in the early years of childhood rather than traditional ‘day care’ which we expect will lead to higher demand from Australian families. Our Board The annual general meeting of Nido Education Limited will be held at 11:00am (Melbourne time) on Thursday 1 May 2025 and is proposed to be held as a hybrid meeting. Shareholders may attend in person or online. Registration will open from 10.00am on 1 May 2025. Details will be set out in the Notice of Meeting. Mark Kerr Chairman Mathew Edwards Managing Director 10 Nido Education Limited Annual Report 2024 Strategy and Operations Nido Kindergarten Curriculum launched in November 2024 The Nido Kindergarten Curriculum is a thoughtfully developed framework designed to inspire and support the learning journey of Nido children aged 3-6 years. Reflecting the Early Years Learning Framework (EYLF) and guided by the Reggio Emilia approach, the Curriculum reflects Nido’s commitment to providing a nurturing and empowering early education. Shaped by the voices of 990 contributors — children, families, educators, and community members — it represents a shared vision of meaningful learning and growth. At the heart of Nido’s Kindergarten Curriculum are seven learning branches: Community, Confident Learners, Literacy, Numeracy, Healthy Minds and Bodies, Creativity, and STEM. These branches provide a balanced and comprehensive foundation, blending academic and creative learning with a deep focus on children’s holistic wellbeing. The principles of inclusion, sustainability, and relational pedagogy ensure that the curriculum is relevant and responsive to the needs of each child and their community. 990 Contributing Voices comprising: 324 children 259 family members 371 educators 36 community members Nido Education Limited Annual Report 2024 The curriculum aims to equip children with the essential skills and dispositions they need to thrive in school and beyond, such as emergent literacy and numeracy, critical thinking, creativity, and collaboration. By fostering strong relationships and creating secure, supportive environments, the curriculum nurtures children’s natural curiosity and their desire to learn and connect with others. For 3- and 4-year-olds, Nido Kindergarten programs focus on play-based learning, where children build confidence, communication skills, and creativity through exploration and collaboration. Educators take an intentional and flexible approach, tailoring learning experiences to the unique interests, strengths, and needs of every child. These programs also encourage children to engage with diverse perspectives and develop an understanding of their broader community. The curriculum reflects Nido’s dedication to high-quality education by aligning to the EYLF while offering additional clarity on what to teach. This balance allows educators to deliver meaningful and locally relevant learning experiences to children within their community. By fostering 21st-century skills — Critical Thinking, Creativity, Collaboration, and Communication — the curriculum empowers children to navigate their world with confidence and adaptability. With a clear focus on relationships, community, and a lifelong love of learning, the Nido Kindergarten Curriculum establishes a strong foundation 11 for children to flourish and make meaningful contributions to society. This marks an exciting new chapter in Nido’s educational journey, enhancing our ability to showcase the incredible learning happening in classrooms across Australia. In 2025, we will focus on embedding the curriculum throughout our early schools while developing comprehensive practice guides and professional development programs to empower and support our teachers and educators. 12 Nido Education Limited Annual Report 2024 Nido Early School’s Design Evolution At Nido Early School, our design evolution has embraced to embody a more organic, soft aesthetic, incorporating arches, curves, and natural shapes throughout our environments. These gentle, flowing lines in our cabinetry, new feature lighting elements, custom rug designs, and overall layout help create a calming and harmonious environment from the moment you step into our open plan foyer. The introduction of organic shapes helps to break the rigidity of traditional designs, allowing for a more fluid and open space that encourages exploration and connection. Our colour palette has also evolved, shifting from bright whites to warmer beige tones and natural greens & pops of brass that evoke a sense of comfort and warmth. These earthy hues create a welcoming atmosphere that feels grounded and connected to nature, fostering a sense of security and tranquillity. The thoughtful use of these softer tones, alongside the bespoke design elements, enhances the nurturing environment Nido Early School for which we are known, reinforcing our commitment to providing a space where children can thrive, explore, and grow. At Nido Early School, we believe that the environment acts as the third teacher in supporting children’s learning and development. Our design approach centres around the idea of creating spaces that are not only functional but also nurturing, calming, beautiful, and enriching for the individuals learning and teaching in these spaces. We draw inspiration from natural elements of the world around us — a celebration of simplicity, imperfection, and beauty — we seek to create environments that foster creativity, independence, growth, and most of all inspiration for our young learners. As part of Nido’s nationwide footprint, we combine educational leadership with a ‘best for child’ environment, providing families with a familiar and nurturing atmosphere, no matter where they are located. This approach contributes to creating a sense of continuity and emotional security for children and families across Australia. We believe that the best environments are created through collaboration, informed by a diverse range of expertise. Our construction and design team are comprised of educators, facilitators, and architects, each bringing a unique perspective to the table. This multidisciplinary approach ensures every decision made, is grounded in a deep understanding of child development, educational practices, and architectural principles. Our environments are not only beautiful but safe, practical, and sustainable from a maintenance aspect. We are proud of our capability to design spaces that balance form and function. The team gathers and shares insights into how children learn, play, and interact with their surroundings. Having an educational background within the design team helps to provide a practical context, and hands-on understanding of the needs and behaviours of children, which guides the creation of spaces that promote engagement, creativity, and emotional well-being. Our environments are not only beautiful but safe, practical, and sustainable from a maintenance aspect. We are proud of our capability to design spaces that balance form and function. Our national footprint allows us to provide services that are adaptable and scalable, ensuring that we meet the diverse needs of families. This collaborative approach allows us to create spaces that are truly child-centred — designed not only for safety and comfort but also for fostering learning, independence, joy, and emotional health. Every decision, from the layout to material selection, is made with the well-being and development of the children in mind, ensuring that the environment serves as a supportive “third teacher” in their educational journey. 13 Nido Education Limited Annual Report 2024 Here’s how we incorporate these principles into our design approach Nido Early School, Hilbert WA Palette: A Colour Warmth, Calm, Cohesion, & Layout: D Furniture Comfort and Flexibility G Sustainability: Environmental Stewardship The shift toward soft, neutral tones speaks directly to the sensibilities of young children, creating an atmosphere that is both serene and stimulating. Our furniture and layouts are designed with one key principle in mind—creating a space where children feel at ease to explore, create, and learn. We place emphasis on the environment as the third teacher, supporting children’s emotional well-being, growth, and independence. We aim to instil a respect for the environment through our design choices, ensuring sustainability is considered in each aspect of the space. and Natural Harmony & Textures: S Materials Embracing Nature’s Beauty Our material choices reflect a deep respect for the earth and a desire to create tactile, immersive environments that support sensory exploration. By implementing a variety of textures, we ensure the design encourages creativity while being safe and sustainable. for Children Details: F Design Imperfection and Timeless Appeal The smallest design elements are carefully considered to contribute to an overall sense of warmth, tranquillity, and connection to nature. and Longevity 14 Nido Education Limited Annual Report 2024 Consistency across Nido Services: Fostering Security and Familiarity A key aspect of our design philosophy at Nido Early School is the consistent look and aesthetic across all our services. By ensuring that each of our locations share the same design language — characterised by warm, neutral tones, natural materials, and thoughtful, child-centred furniture — we create a sense of continuity and familiarity for the children in our care. The familiar environment ensures children experience a seamless and emotionally secure transition. This consistency also reassures parents that their children are receiving the same high-quality care and educational support across the country. By combining beauty, natural aesthetics, child-centred design, and sustainability considerations, Nido creates environments that not only support children’s development but also provide a calming, inspiring space for both learning and rest. Our custom-designed furniture line, rooted in these same principles, offers a unique and thoughtful solution for families seeking functional, beautiful, and safe spaces for their children. This design approach nurtures growth, fosters creativity, and promotes a deeper connection to the natural world, making it an ideal fit for children’s spaces. Nido Early School, Butler WA 15 Nido Education Limited Annual Report 2024 Achieving Success is always through our People The world we are building for tomorrow starts with the Teachers of today The Rise Up – Nido Leadership Program was developed to support the ongoing professional growth of our People and Quality Leaders and now our Executive Service Managers, enhancing their ability to drive value within their teams and the organisation. Spanning nine months, the program combined in-person and virtual sessions, blending participants’ existing skills and experience with new insights and practical leadership tools. The focus was on building efficiency and effectiveness in leadership through a structured and immersive learning journey. Key areas of development included self-awareness and personal effectiveness, the trust equation, critical communication skills, growth mindset, problem-solving, leading for outcomes, and coaching. Participants engaged in interactive learning experiences that encouraged reflection, skill application, and collaboration. The program concluded with individual presentations, where participants demonstrated the impact of their learning—both personally and for Nido. These final presentations highlighted the program’s success in fostering confident, capable leaders prepared to navigate challenges and drive meaningful outcomes. The Rise Up program has made a lasting impression on all involved, equipping our leaders with the mindset and capabilities to inspire their teams and contribute to the continued success of our organisation. Session 6 CRITICAL REFLECTION Session 5 MINDSET Session7 PROBLEM SOLVING Session 8 LEADING FOR OUTCOMES Session 4 CRITICAL COMMUNICATIONS Session 3 THE TRUST EQUATION Session 9 COACHING Session 2 PERSONAL EFFECTIVENESS Session 1 WELCOME Session 10 BRINGING IT ALL TOGETHER 16 Nido Education Limited Annual Report 2024 Achieving Success is always through our People (continued) We understand that the quality of our educational offering is largely dependent on the skills and experience of our Educators and Teachers delivering the curriculum. We are committed to investing in our Educators and Teachers to ensure they have access to high quality, relevant, learning and development. Nido Learning contains our own internal courses which have been developed by subject matter experts to support initial onboarding and then the implementation of Nido practices and