Embark Early Education (EVO) Investor Presentation summary

Transaction overview and acquisition rationale

• Announced a takeover bid to acquire 100% of Mayfield Childcare Limited, offering either $0.50 per share in cash or Embark shares valued at the same rate.

• Embark currently owns 19.9% of Mayfield and aims to expand from 39 to 84 centres post-acquisition.

• The acquisition is expected to create a larger, more resourceful company, improving educational outcomes and financial robustness.

• Mayfield operates 45 centres across Victoria, Queensland, and South Australia, generating $88m in FY24 revenue.

• The rationale includes network expansion, operational efficiencies, and enhanced geographic reach in a consolidating sector.

Financial impact and equity raising

• Embark completed a $12 million institutional placement at $0.60 per share, a 5.5% discount to the last closing price.

• Proceeds will partially fund the acquisition and cover transaction costs.

• The combined group is projected to have pro forma centre EBITDA over $20 million and more than 7,000 licensed places.

• The takeover is expected to be accretive in CY26, driven by operational synergies and cost savings.

• Unified Capital Partners Pty Ltd acted as sole lead manager and financial adviser for the offer.

Integration, synergies, and operational strategy

• Integration aims to optimise operations, share best practices, and improve occupancy rates.

• Anticipated cost synergies include reduced public listing and head office costs.

• Mayfield will operate as a wholly owned subsidiary, with no major changes to management or brands.

• Embark’s management has a strong track record in successful acquisitions and integration.