Announcement PDF ASX Announcement ASX Code: NDO 2024 Full Year Financial & Operational Results 26 February 2025 Nido Education Limited (ASX: NDO) (Nido or Company) is pleased to announce its financial and operational results for the year ended 31 December 2024. Group performance summary Nido has delivered $19.5m NPAT and determined a maiden dividend of 5.8c (35% franked) delivering shareholders a 5.8% yield on the issue price and a 7.4% yield on the current trading price1. * Figures are stated pre-AASB 16 1 as at 25 February 2025 ASX Announcement - Nido Education Limited ABN 12 650 967 703 Group performance Nido generated $166.8m of revenue in FY2024 and delivered $22m EBITDA (pre-AASB 16). Performance ($m) FY24 FY23 Service revenue 159.9 88.5 71.4 81% Establishment and management fees 6.9 7.2 (0.3) (4%) Group revenue 166.8 95.7 71.1 74% Service EBITDA 32.4 10.2 22.2 218% Support office costs (net) (10.4) (25.6) 15.2 59% EBITDA* 22.0 (15.4) 37.4 Depreciation (0.7) (0.5) (0.2) 40% Net finance costs (0.5) (1.3) 0.8 (62%) Profit before tax* 20.8 (17.2) 38 Tax (expense)/benefit (1.3) 2.3 (3.6) Net Profit after Tax* 19.5 (14.9) 34.4 1 Change (157%) 1 Support office costs are stated net of management and establishment fees Service Based Performance Services generated $32.4m EBITDA at an average of $611K EBITDA per Service. A healthy performance based on an average occupancy of 78%. This provides Nido with considerable upside. FY2024 fees were an average $164 per day, with a current average fee of $172 per day. ASX Announcement - Nido Education Limited ABN 12 650 967 703 2 1 Service performance ($m) H1 H2 FY24 Service revenue 72.2 84.5 156.7 Other Service revenue 1.5 1.7 3.2 Total Service revenue 73.7 86.2 159.9 Service costs (61.8) (65.7) (127.5) Service EBITDA 11.9 20.5 32.4 Half year EBITDA % 37% 63% 100% Average Service EBITDA ($’000) 229 379 611 Days of learning ('000) 461 496 956 Average daily fee ($) 157 170 164 Wage to revenue ratio 59% 55% 57% Service EBITDA % 16% 24% 20% 2 1 Figures are stated pre-AASB 16 2 Average daily fee is net of discounts FY2024 Overview Economic Context In 2024, families across Australia faced significant cost of living pressures, which impacted their child care arrangements. Many parents opted to reduce their children's enrolment days in child care, while others chose to work from home on days their children were not enrolled. This shift reflects the broader economic challenges affecting household finances, leading to a change in child care needs. Increased Candidate Availability In late December 2023, Nido experienced a notable increase in the availability of candidates for employment. This surge presented a unique opportunity for recruitment, allowing Nido to expand its workforce in anticipation of a seasonal rise in occupancy. ASX Announcement - Nido Education Limited ABN 12 650 967 703 3 Seasonal Growth Expectations Nido has historically observed a significant rise in occupancy rates from April to November. This trend is driven by heightened demand for child care services as families and businesses prepare for the festive season and as children begin to transition to full-time schooling. Many children increase their attendance during this period, adjusting to a routine of attending school five days a week as they leave the Service. Workforce Management Challenges Despite expectations, the anticipated seasonal growth in 2024 did not materialise as strongly as in previous years. This discrepancy led to overstaffing issues within Nido, resulting in both financial and operational challenges for the organisation. The cost to Nido in the first half was in the order of $1.2m. Labour Cost Management To address the overstaffing situation, Nido's operations team managed wages to better align labour costs with actual occupancy levels and then held wages relatively flat as occupancy increased. This strategic decision was critical for maintaining financial stability during a period of reduced demand. Sustained Cost Management The organisation maintained this roster management discipline throughout 2024 and into 2025, demonstrating a commitment to financial responsibility and effective cost management strategies. Employee Recognition Amid these challenges, Nido's team members have displayed exceptional dedication and resilience. Their commitment to providing quality education to children and supporting families, even under pressure, is commendable. In summary Nido has successfully navigated a challenging economic landscape by adapting its workforce strategy to meet fluctuating demand. Through proactive labour management measures, alongside the remarkable efforts of the Nido team, the organisation is well-positioned to handle ongoing economic uncertainties. The dedication and professionalism of the team not only fulfils the needs of families but also contributes to delivering value to both the organisation and its stakeholders. ASX Announcement - Nido Education Limited ABN 12 650 967 703 4 The Year Ahead How we started Service-Based EBITDA Growth: Nido has achieved a 40% increase in service-based EBITDA for January compared to the previous year (30% organic and 10% acquisitions). Despite a strong start to the year, February enrolments have been subdued. This trend suggests that families are exercising caution in their decision-making, likely due to ongoing economic pressures, even though enquiries remain robust. Strategic Adaptation Nido has approached 2025 with an on that the operating landscape is changing and Nido recognises that operators need to shift away from previously successful strategies. This adaptability will be essential in navigating the evolving market landscape. Nido anticipates that 2025 will bring significant positive changes to the sector, as both major political parties recognise the necessity for substantial investment into the early education sector. Economic Context Cost of Living Pressures: Families are expected to continue facing cost of living pressures in 2025, despite stabilising inflation and a recent reduction in official interest rates. These economic conditions will influence families' willingness and ability to commit to enrolments, highlighting the importance of Nido's adaptability to meet their needs. Recent Government Announcement on the Activity Test Impact of Changes: The Australian Government's recent announcement regarding amendments to the child care subsidy activity test is expected to significantly benefit families seeking access to child care services. The changes aim to simplify requirements, making it easier for families to qualify for subsidies regardless of their work commitments. This initiative is designed to alleviate some financial burdens associated with accessing child care. Potential Increase in Demand With these changes, families may find it more feasible to enrol their children in child care, which could result in increased demand for services as we head into 2026. Nido is strategically prepared to respond to this anticipated rise in enrolments by enhancing service offerings and providing necessary support to families. ASX Announcement - Nido Education Limited ABN 12 650 967 703 5 Political Landscape The 2025 election is expected to elevate child care as a key topic in political discussions. With child care being central to campaign themes, there is potential for further policies aimed at reducing access costs for families. Such initiatives could significantly alleviate cost-of-living pressures and create pathways for families to enter or re-enter the workforce. These measures are expected to add considerably to demand. Nido's Resilience and Strategy Experienced Team: Nido is equipped with a seasoned, agile, and innovative team of professionals who have successfully navigated various economic and political cycles in the past. This experience positions Nido well to adapt to the evolving landscape and maintain the delivery of quality child care services. Summary Nido's proactive approach and strategic positioning provide a solid foundation for future success. The recent changes to the child care subsidy activity test, along with potential policy shifts, will create new growth opportunities. With a dedicated team at the helm, Nido is well-equipped to meet the needs of families and continue delivering value to its stakeholders. Investor briefing call 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 details All participants must pre-register to join this conference call using the Participant Registration link below. Webcast Participant Registration Site: Please click here to register https://nidoeducation.edu.au/webinars/WPGqZe-ndo-cy24-results-briefing ASX Announcement - Nido Education Limited ABN 12 650 967 703 6 Annual General Meeting The annual general meeting of the Company will be held at 11:00am (Sydney time) on Thursday, 1 May 2025 and is proposed to be held as a hybrid meeting (in-person and online). Details will be set out in the Notice of Meeting. The closing date for receipt of nominations from persons wishing to be considered for election as a director of the Company is Friday, 7 March 2025. Accompanying this announcement is the Nido Investor Presentation in relation to the financial and operational results for the year ended 31 December 2024. -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 7 2024 Full Year Results NIDO Education Limited (ASX:NDO) 26 February 2025 Disclaimer This presentation has been prepared by Nido Education Limited ACN 650 967 703 (Nido) (ASX code: NDO) in relation to its financial and operational results for the year ended 31 December 2024 and is for personal use only. Information presented in the presentation is on an aggregate basis, reflecting the Nido group of entities. It contains general information in summary form which is current as of 26 February 2025 and does not purport to be complete and should be read in conjunction with Nido's other periodic and continuous disclosure announcements which are available on Nido's website at nidoeducation.edu.au/announcements. This presentation is not a recommendation or advice in relation to NDO. 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, Nido, its affiliates and related bodies corporate, and their respective officers, Directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or negligence) for any loss arising from any use of this presentation (or its content) or otherwise arising in connection with it. Nido’s forecasts and other forward-looking statements set out in this presentation are based on a number of estimates, assumptions and pro forma adjustments that are subject to business, economic and competitive uncertainties and contingencies, with respect to future NIDO Education Limited (ASX:NDO) 2024 Full Year Results business decisions, which are subject to change and, in many cases, are outside the control of Nido and its Directors. Nido believes that the forecasts have been prepared with due care and attention and considers all best estimate assumptions, when taken as a whole, to be reasonable at the time of preparing this presentation. However, the forecasts presented in this presentation may vary from actual financial results. These variations may be material and, accordingly, neither Nido nor its Directors give any assurance that the forecast performance in the forecasts or any forward-looking statement contained in this presentation will be achieved. This presentation is not and does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. It is not intended to be relied upon as advice to investors or potential investors and does not contain all information relevant or necessary for an investment decision. All references to dollars ($) are to Australian dollars, unless otherwise stated. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written consent of Nido. This presentation is authorised for release by the Board of Nido Education Limited. The Nido Approach The world we are building for tomorrow starts with the Teachers of today Our purpose Our vision Our mission 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, in the Nido way, meets or exceeds the National Quality Standard. 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 (ASX:NDO) 2024 Full Year Results 3 Contents 1 Full year results 2 Business update 3 Incubation 4 Year ahead NIDO Education Limited (ASX:NDO) 2024 Full Year Results Butler, WA Today’s Speakers Mat Edwards Managing Director Adam Lai Chief Executive Officer Tom Herring Chief Financial Officer • • Joined Nido as Chief Executive Officer in February 2025 • Joined Nido as Chief Financial Officer in April 2021 • Brings extensive experience leading customer-focused, people-driven growth and transformation • • Spent 18 years at PwC Australia, most recently serving as the Managing Partner of NSW Previously held CFO and senior Finance roles across a range of publicly listed and private companies and across a diverse range of sectors Founded Nido Education Limited following the privatisation of the listed Think Childcare Limited (TNK) in 2021 NIDO Education Limited (ASX:NDO) 2024 Full Year Results 5 01 Full year Results NIDO Education Limited (ASX:NDO) 2024 Full Year Results Hilbert, WA Group Performance Financial performance Dividend Capital ↑ Revenue Dividend Cash conversion 74% from FY23 Per share $166.8m ↑ EBITDA* $22.0m 5.8c Yield 7.4% from $15.4m loss in FY23 On current share price1 ↑ NPAT* Franking $19.5m from a loss $14.9m in FY23 35% 110% Net Leverage Ratio 0.16x Acquisition facility available $48m Includes $30m Accordion Note - Figures and calculations used in this report exclude the impact of non-cash lease costs under AASB 16 – refer to reconciliation in Appendix II * Figures are stated pre-AASB 16 1. As at 25 February 2025 NIDO Education Limited (ASX:NDO) 2024 Full Year Results 7 Profit and Loss $19.5m NPAT with 7.4% dividend yield1 Change Performance ($m) FY24 FY23 Service revenue 159.9 88.5 71.4 Establishment and management fees 6.9 7.2 Group revenue 166.8 Service EBITDA Dividend FY24 81% Unfranked 3.77c (0.3) (4%) Franked 2.03c 95.7 71.1 74% Total 5.8c 32.4 10.2 22.2 218% Payout ratio 67% (10.4) (25.6) 15.2 59% Yield1 7.4% * EBITDA 22.0 (15.4) 37.4 Depreciation (0.7) (0.5) (0.2) 40% Net finance costs (0.5) (1.3) 0.8 (62%) Profit before tax* 20.8 (17.2) 38 Tax (expense)/benefit (1.3) 2.3 (3.6) Net Profit after Tax* 19.5 (14.9) 34.4 2 Support office costs (net) (157%) Dividend of 5.8 cents per security Franking: 35% franked Ex-dividend: 18 March 2025 Payment: 28 March 2025 1 Based on share price at 25 February 2025 2 Support office costs are stated net of establishment and management fees. FY23 costs included $15.8m of non-underlying IPO costs * Figures are stated pre-AASB 16 NIDO Education Limited (ASX:NDO) 2024 Full Year Results 8 Service EBITDA Average annual EBITDA per Service of $611k 1 2 Service performance1 ($m) H1 H2 FY24 Revenue and average daily fee Service revenue 72.2 84.5 156.7 Other Service revenue 1.5 1.7 3.2 • Days of learning increased by 8% in the second half delivering a peak occupancy of 80% and an average of 78% for the year Total Service revenue 73.7 86.2 159.9 Service costs (61.8) (65.7) (127.5) Service EBITDA 11.9 20.5 32.4 • The average daily fee increased by 8% in the second half to $170 due to the mid year fee review and the lowering of the employee discount from 95% to 50% of gap fee from July Half year EBITDA % 37% 63% 100% Wages cost and wage to revenue ratio Average Service EBITDA ($’000) 229 379 611 Days of learning ('000) 461 496 956 Average daily fee2($) 157 170 164 Wage to revenue ratio 59% 55% 57% Service EBITDA % 16% 24% 20% • First half wages included $1.2m spend on educators recruited ahead of demand to mitigate the risks of capacity constraint • Rostering and wage control initiatives ensured that wages were flat after the first quarter, with higher revenue in the second half resulting in a lower wage to revenue percentage of 55% Figures are stated pre-AASB 16 Average daily fee is net of discounts NIDO Education Limited (ASX:NDO) 2024 Full Year Results 9 Capital management Free cash flow has facilitated acquisitions and debt repayments Cash allocation Net Debt ($m) Operating cashflow $25.3m Capital expenditure $1.2m Free cashflow $24.1m FY24 Acquisitions $11.1m 1 Net debt reduction $1.0m 110% cash conversion Consideration deferred from IPO $8.1m Incubator loans issued $4.0m Dec 24 Cash 3.5 Drawn from Facility A (7.0) Net debt (3.5) Net Leverage Ratio 0.16x Available debt ($m) Dec 24 Available – Facility A 18.0 Available – Accordion1 30.0 Total 48.0 Nido expects to fund acquisitions through debt at long term Net Leverage Ratio of approximately 1.5x The accordion is a debt facility with pre-agreed terms that will be established, subject to credit approval when required NIDO Education Limited (ASX:NDO) 2024 Full Year Results 10 02 Business update NIDO Education Limited (ASX:NDO) 2024 Full Year Results Wandi, WA FY2024 Service (Centre) Performance 56 owned Services Service performance Days sold Places and fees ↑ Service EBITDA* ↑ Days available Licensed places from $10.2m in FY23 from 788k in FY23 average ↑ EBITDA* per service ↑ Days sold Daily fee from $303k in FY23 from 595k in FY23 FY2024 Average, net of discounts ↑ EBITDA* margin ↑ Occupancy Child care subsidy rate from 12% in FY23 from 76% in FY23 Average for Nido families $32.4m $611k 20% 1,231k 956k 78% 89 $164 72% In addition to its 56 owned Services, Nido manages 13 in incubation and 34 for a third party as of 14 February 2025 * Figures are stated pre-AASB 16 NIDO Education Limited (ASX:NDO) 2024 Full Year Results 12 Monthly performance Wages were closely managed delivering wage savings in the second half Revenue versus wage costs 1 ($m) 12.0 12.0 12.2 7.2 7.2 7.5 12.6 7.0 12.8 7.5 12.8 7.3 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 13.6 7.6 Jul-24 Revenue 1 13.8 7.5 13.9 7.3 14.1 14.1 13.0 7.6 7.5 7.2 12.6 7.1 FY24 first quarter wage costs included an additional $1.2m for educators recruited ahead of demand Wages have remained flat since, averaging $7.3m per month despite the mid year wage increase and higher days sold due to rostering and workforce planning processes Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Wages Figures exclude the 4 Services acquired in September 2024, the impact of award increase on leave liabilities, and have been adjusted to reflect an average of 21.8 days per month. NIDO Education Limited (ASX:NDO) 2024 Full Year Results 13 Service EBITDA* Service EBITDA* growth trended up in the second half Monthly EBITDA Jan 2024 –Jan 20251 Service wide operational changes have underpinned sustainable EBITDA growth 4.1 3.2 2.9 2.6 2.0 1.6 2.4 3.1 2.8 2.2 The current average daily fee after discounts is $172 (14 February 2025) 1.5 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 1 3.3 January 2025 EBITDA* of $2.8m was approximately $800k higher than January 2024 3.5 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Includes contribution from 4 acquisitions completed at the end of September 24 NIDO Education Limited (ASX:NDO) 2024 Full Year Results 14 Historical growth We have a track record of sustainable growth and are well positioned for this to continue Proforma service performance ($m)1 180 60 160 50 140 120 40 100 80 30 60 20 40 20 1 2 Revenue has grown from $18m to $160m and EBITDA has grown to $32.4m in FY24 Future growth is underpinned by increased days of learning and acquisitions 10 0 -20 The current portfolio of owned services has been developed in just 5 years FY20 FY21 FY22 FY23 FY24 Revenue 17.8 53.1 85.5 131.2 159.9 EBITDA* -5.4 -1.3 -2.4 13.3 32.4 Avg Services2 13 28 41 52 53 0 FY20-FY24 show the actual Service performance of Nido Services that formed the IPO portfolio (pre and post Nido ownership) Reflects the average number of Services for the year. The average of 53 Services in FY24 is comprised of 52 owned services to September and 56 from October NIDO Education Limited (ASX:NDO) 2024 Full Year Results 15 03 Incubation NIDO Education Limited (ASX:NDO) 2024 Full Year Results Ellenbrook, WA Incubation Unique model mitigates risks associated with growth through typical roll up or greenfield strategies Summary Phases The typical growth model in child care has been a roll-up, simply acquiring on market from a variety of vendors 1 Internal greenfield development can take time and may be subject to trade-up risk and operating losses 2 Incubation gives Nido the ability to acquire proven profitable Services that are purpose built with all locations approved by Nido Nido’s growth comes at a multiple of 4.5x EBIT with an earn out and claw back of up to 10% of the capital invested, further de-risking the acquisition All the Services are purpose built and managed by Nido from day one, ensuring consistency in the quality and no integration risk postacquisition Nido sources and evaluates the site, presents it to the Incubator for approval and negotiates commercial terms The Incubator assesses and approves site, entering into an agreement for lease and lease agreement – taking on ownership and funding requirements 3 Nido undertakes all the work required to prepare the site for licencing and opens the Service. The Incubator pays Nido $250k establishment fee upon opening 4 Nido manages all operational aspects of the Service day to day for a management fee of $120k per year. Nido reports to the Incubator through business intelligence dashboards, giving it full operational visibility 5 Nido exercises its call option to acquire at 4.5x EBIT once performance metrics are achieved, with earn out or claw back settled twelve months post-acquisition Visit www.nidoeducation.edu.au for more information on Incubation NIDO Education Limited (ASX:NDO) 2024 Full Year Results 17 Incubation model Incubation strategy Purpose built Consistent growth Nido has developed a greenfield incubation strategy to mitigate risks associated with the traditional roll up approach All Nido’s Early Schools are designed by Nido and managed by Nido from site selection through to acquisition Nido has access to a de-risked acquisition pipeline of 100+ Nido Services over the next 5 years • • Services are built to be best in their markets • • The owned portfolio is relatively new with the oldest Services opened in 2019 Proven performance Services acquired at a discounted 4.5x EBIT • Acquiring at circa 80% occupancy allows Nido to maintain an average occupancy of at least 80% • Built with quality and longevity in mind (30+ year leases, including renewal options) • • A third-party incubator initially owns the Service, funds the development and trade up losses Nido manages the development and day-to-day operations Once acquisition performance hurdles are met, Nido has a 12month option to acquire NIDO Education Limited (ASX:NDO) 2024 Full Year Results 18 Trade up of Services in incubation Occupancy is building steadily Services in incubation - Spot occupancy1,2 2025 Acquisitions 80% 74% 69% Following the 4 Services acquired in September 2024, 13 Services are open in incubation and are trading up steadily towards acquisition metrics Acquisition metrics 69% 1. Six-month average occupancy of 80% 60% 55% 54% 48% 47% 2. Six-month EBIT per licenced place of $5,500 45% Incubator funding 42% Nido has issued $10m of loans to the Incubator, with the most recent tranche of $4m being issued in February 2024 1 1 2 2 3 4 5 6 7 8 9 10 20% 19% 11 12 15% 13 Spot occupancy as 14 February 2025 – Seasonal low point for the year Service occupancy not comparable to previous disclosure as 4 Services have been acquired and new ones opened NIDO Education Limited (ASX:NDO) 2024 Full Year Results 19 Incubation Pipeline 100+ sites are being actively managed Number of Services expected to open within 36 months 55 Services are expected to open over the next 36 months Additionally, 50 sites are under Incubator Board review Nido continues to review between 100+ sites per month and has 50+ sites being considered for approval by the Incubator Board 30 10 10 5 Awaiting DA DA approved NIDO Education Limited (ASX:NDO) 2024 Full Year Results Construction within 6 months Under construction 20 04 Year ahead NIDO Education Limited (ASX:NDO) 2024 Full Year Results Hilbert, WA The year ahead Early signs Service EBITDA Growth: Nido has achieved a 40% increase in Service EBITDA* for January compared to the previous year (30% organic and 10% acquisitions). Despite a strong start to the year, February enrolments have been subdued. This trend suggests that families are exercising caution in their decision-making, likely due to ongoing economic pressures, even though enquiries remain robust. Activity Test Impact of Changes: The Australian Government's recent announcement regarding amendments to the child care subsidy activity test is expected to significantly benefit families seeking access to child care services. The changes aim to simplify requirements, making it easier for families to qualify for subsidies regardless of their work commitments. This initiative is designed to alleviate some financial burdens associated with accessing child care with the effect on demand being felt from the start 2026. * Figures are stated pre-AASB 16 NIDO Education Limited (ASX:NDO) 2024 Full Year Results 22 The year ahead Political landscape The 2025 election will elevate child care as a key topic in political discussions. With child care being central to campaign themes, there is potential for further policies aimed at reducing access costs for families. Such initiatives could significantly alleviate cost-of-living pressures and create pathways for families to enter or re-enter the workforce. Nido anticipates that 2025 will bring significant positive changes to the sector, as both major political parties recognise the necessity for substantial investment into early education. Resilience and strategy Nido's proactive approach and strategic positioning provide a solid foundation for future success. The recent changes to the child care subsidy activity test, along with potential policy shifts, will create new growth opportunities. With a dedicated team at the helm, Nido is well-equipped to meet the needs of families and continue delivering value to its stakeholders. NIDO Education Limited (ASX:NDO) 2024 Full Year Results 23 Questions NIDO Education Limited (ASX:NDO) 2024 Full Year Results Butler, WA Appendices I II III Glossary Financial Statements Profit and loss versus Prospectus NIDO Education Limited (ASX:NDO) 2024 Full Year Results Thornlie, WA Appendix I: Glossary Term Definition / Meaning Prospectus Nido IPO Prospectus Forecast dated 20 September 2023 EBITDA* Total Group Earnings before Interest tax depreciation and amortisation before the impact of AASB 16 Service EBITDA* EBITDA* generated from owned Services NPAT* Total Group Net Profit After Tax before the impact of AASB 16 Management fees Fees for managing Services ($120k per year) Establishment fees Fees for opening Services ($250k, recorded upon timing of opening) Net leverage ratio Net leverage ratio calculated by net debt / 12 month EBITDA* Nido Early School Nido branded quality focused long daycare Services Average daily fee Average daily fee net of discounts Incubators Owners of greenfield Early schools until acquisition metrics are achieved NAED NDO’s primary incubator. 100% externally owned by Alceon private equity Occupancy Number of children attending per period specified as a percentage of the Service’s licenced places NIDO Education Limited (ASX:NDO) 2024 Full Year Results 26 Appendix II: Financial Statements Consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2024 Revenue Other income Expenses Employee benefits Occupancy Direct expense of providing services Other Reported EBITDA Depreciation and amortisation Net finance cost Reported Profit/(Loss) before tax Income tax Reported Net Profit/(Loss) after tax Earnings per share Basic Diluted NIDO Educa