1. business and industrial
2. company
3. merger and acquisition

BRIGHTPATH
Early Learning Inc.
June 2015
FORWARD-LOOKING STATEMENTS AND NON-IFRS MEASUREMENTS
This presentation contains forward looking statements that reflect management’s expectations regarding the future growth, results of operations, performance (both operational and
financial) and business prospects and opportunities of BrightPath Group, Inc. (the “Corporation”). All statements contained in this presentation other than statements of historical
facts are forward looking statements. Whenever possible, words such as “plans”, “expects” or “does not expect”, “budget”, “scheduled”, “estimate”, “forecast”, “pro forma”,
“anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved, have been used to identify forward-looking statements. Although the forward-looking statements contained in this presentation reflect management’s
current beliefs based upon information currently available to management and based upon what management believes to be reasonable assumptions, the Corporation cannot be
certain that actual results will be consistent with these forward-looking statements. A number of factors could cause actual results, performance, or achievements to differ materially
from the results expressed or implied in the forward-looking statements including those listed in the “Risk Factors” section of the Company’s regulatory filings. These factors should
be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Forward-looking statements necessarily involve significant
known and unknown risks, assumptions and uncertainties that may cause the Corporation’s actual results, performance, prospects and opportunities in future periods to differ
materially from those expressed or implied by such forward-looking statements. Although the Corporation has attempted to identify important risks and factors that could cause
actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors and risks that cause actions, events or results
not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, prospective investors should not place undue reliance on forward-looking statements. These forward-looking
statements are made as of the date of this presentation and, except as required by applicable law, the Corporation assumes no obligation to update or revise them to reflect new
events or circumstances. FFO, AFFO and Adjusted EBITDA (“EBITDA”) are not measures defined by International Financial Reporting Standards (“IFRS”). They are presented because
management believes these non-IFRS measures are relevant and meaningful measures of performance. FFO, AFFO, EBITDA as computed may differ from similar computations as
reported by other issuers and may not be comparable to those reported by such issuers. BrightPath’s MD&A contains a reconciliation of Net Income/Loss to EBITDA, Net Income/Loss
to FFO and the calculation of AFFO.
1
BrightPath: Our Reason, Vision and Mission
Our Model of Care
Will Provide
Because
We Will Be
Children
Deserve the Best
the Leading
Child Development and
Care Provider in Canada
the Best Intellectual,
Social and Physical
Child Development
programs, delivered by
Capable and Nurturing
Staff within the
Best Environments
About BrightPath
Overview
 Largest for-profit provider in Canada; 52 centres with
 Publicly traded on the TSX-V (BPE)
 Founded in 2010 with goal of raising the standard of child
5,300+ spaces
care in Canada
Evolution of BrightPath
Start-up / Early Stage
(2010 – 2012)
 Initial financing
$40.7 million at $0.50 in May 2010
 $25 million at $1.10 in May 2011

 Acquisition focus
 Greenfields launched
 Next generation management
team put in place
3
Performance Plan in Place
(2013)
 Defined three-part strategy:
Brand and product
 Maximize return on invested
capital
 Re-launch external growth

Well-positioned for 2014
Record Results and Ready to Grow
(2014)
 Delivered on three-part strategy:
Product a competitive advantage
 Overhead realignment and ERP tools
yielding significant financial returns
 Strong pipeline of new locations announced
and on-track for opening in 2015 and 2016

 EBITDA doubled from $3MM to $6MM
2013 to 2014
Regional Profile
British Columbia
Alberta
Ontario
(7% of Portfolio Centre Margin)(1)
(76% of Portfolio Centre Margin)(1)
(17% of Portfolio Centre Margin)(1)
City
City
Centres Capacity
Vancouver area
6
582
Kelowna
2
205
Total (1)
8
787
British
Columbia
Centres Capacity
Calgary
Edmonton
Red Deer
Total – Current (1)
22
5
3
30
2,293
724
167
3,184
2015/16 developments
+4
+870
City
Greater Toronto
Windsor
Ottawa
Total (1)
Ontario
Alberta
West Henday
Edmonton (4)
Windermere
Red Deer (3)
Cochrane
Airdrie
Kelowna (2)
Creekside
Vancouver Area (6)
Calgary (23)
Ontario
Ottawa (5)
Greater Toronto (6)
Planned Centres
4
Existing Centres
Note: Geographic information as at March 31, 2015
1. Based on LTM period ended March 31, 2015
Expansion
Windsor (3)
Centres Capacity
6
723
3
416
5
268
14
1.407
Capitalization and Share Price Performance
Equity
BrightPath Early Learning, Inc. (BPE-V) (C$)
Trading Symbol
BPE-V
Recent Share Price
$0.38
$0.28 - $0.46
1.40
Market Capitalization
$46.1MM
1.20
Shares Outstanding (1)
121.4MM
52-Week Range
1.00
Options Outstanding (1)
5.0MM
DSU’s Outstanding (1)
2.1MM
0.80
Conv. Debenture (shares) (1)
4.5MM
0.60
Cash & Debt Financing(1)
Credit facility
Conv. Debenture
Remaining credit capacity
Cash
1.
$42.0MM
Reported March 31, 2015
0.40
$4.5MM
0.20
$21.0MM
0.00
$4.2MM
Cash & remaining credit
5
1.60
$25.2MM
Investment Highlights
Strong Growth in Revenue and Cash Flow
Business Optimization Initiatives Driving Operating Performance
Product Leadership to Support Demand and Premium Price
Shortage of Childcare Spaces in Fragmented Market
16% increase in Capacity Opening in 2015/16 and That Much More in Pipeline
Share Valuation at Discount to Net Asset Value
Management Team to Execute
6
Significant Growth in all Metrics
EBITDA ($MM)
Revenue ($MM)
6.2
51.8
46.8
36.4
3.0
1.8
18.2
0.2
Average Capacity and Average Enrollment
Average Monthly Revenue (AMR) (1) ($)
4,734
989
916
3,891
5,056
5,274
4,259
4,361
2,315
889
863
1,900
Avg. Enrollment
7
1.
2011 and 2012 restated to reflect current methodology.
Add'l Capacity
2014 Achievements Set Stage for Significant Growth
Focus Now:
Scale and Shareholder Value
Record 2014 Performance:
EBITDA doubled: $3 to $6MM
Product enhancements drive
competitive advantage
 Combined 2-year tuition fee increase
of >12%; occupancy held at >90%
in Alberta and increased in BC
 Overhead structure, ERP and
procurement programs in place
 On track for significant new centre
openings in 2015 and 2016



8
870 spaces (16% capacity increase)
$1.6MM pro forma EBITDA growth
Aggressively build scale and grow
EBITDA
 Open and fill announced 870 spaces
through 2015 and early 2016
 Advance further acquisitions and
developments representing 850
additional spaces
 Pursue other avenues to surface
shareholder value

BrightPath’s Three-Part Strategy:
Positioned to Grow and Drive Shareholder Value
1. PRODUCT ALIGNMENT to Optimize Performance
Product Leadership
and Alignment
Evolve Core and
Core-Plus elements
and offer them
appropriately
2. Leverage In-place Structure to
GROW
• Add significant capacity without any
notable increase in overhead
• Significant EBITDA and Cash Flow
growth with no equity dilution
9
Performance
Management
Tightly manage
key performance
drivers and
overheads
3. Pursue Additional Initiatives to
INCREASE SHAREHOLDER VALUE
• Shares trading at discount to
Net Asset Value
• Reviewing several options
specifically directed at surfacing
value
Performance Management:
In-Place Structure Delivering Strong Results and Scalable for Growth
Optimize Labour and
Other Costs
Build Occupancy and
Waitlists
Manage G&A
2014
Improved occupancy by 2% in each
of AB and BC
 Waitlists at many AB centres
 Reconfigurations in ON to address
FDK implementation

Improved labour by 30 bps;
reinvested into training and wages
 Food purchasing and other
procurement programs
implemented

Realized $1.1MM savings
 Payback < two years
(restructuring costs $1.7 million)

PRIORITIES / OPPORTUNITIES
•Maximize enrollments by leveraging
product and management tools
•Build occupancy at new centres
•Manage waitlists to be ready to
respond to withdrawals
10
•Reinvest labour savings in people
and product
•Realize on savings from in-place
procurement measures
•Continue to tightly manage costs
•Hold G&A costs level while building
significant scale
Product Leadership:
Alignment with Facility and Demographics
Physical Elements of
the Centre
Preferences of the
Community and
Demographics
Impact ability to offer certain
elements of the product
Impact product appeal and
pricing model





Size
Layout
Flexibility
Outdoor space
Physical appeal





Regional differences
Cultural emphasis
Economic demand
Mature versus developing
Transient versus stable
Facility Type
A, B or C
Product Offering
Core and Core Plus
All centres deliver programming to support BrightPath’s reputation as leader in child development; Further
enhancements offered where supported by physical and demographic elements of the centre.
11
Product Leadership:
BrightPath’s Highly Differentiated Product a Competitive Advantage
Product elements classified and offered based on how
Fundamental they are to Learning and Development
CORE
• Elements fundamental to the development
of the child
• All BrightPath centres make these part of
their offering -- “The BrightPath Way”
• Drives occupancy
• Establish product
leadership
• Supports price
higher than
average
CORE-PLUS
• Elements that further enhance programming
• Vary depending on facility and nuances of
community
• Parents pay more for these enhancements
• Prestige branding
• Commands price
at very top of
band
Curriculum, Nutrition, Staff, Communication
12
•
•
•
•
Differentiated product
offering based on
facilities and demand
from community
Tiered branding
Improved ability to
further evolve and
enhance product
Support higher price
point and occupancy
levels
Product Leadership:
Three Facility Type Strategy
Community Factors
TYPE C:
Facility and community
support premium product
and price
1,230 current /
810 announced spaces
TYPE B:
Flexible facility or
community demand –
support Core product plus
some enhancements
2,330 spaces
TYPE A:
Facility and community
factors support Core
product
1,800 spaces
Facility Features
13
Growing Market with Continuing Shortage in Supply
BrightPath Markets:
Growth in 0-5 Age Group (2009-2012)
BrightPath Markets:
Children in Need of Care (0-12 years) (1)
(000s of Children and Spaces)
5.1%
1,000
900
-1.9%
BRIGHTPATH MARKETS
U.S.
909
800
700
600
% of Mothers in the Workforce
with Children Age 0-5
892
421
542
500
400
69%
300
488
200
65%
350
100
0
CANADA
U.S.
2004
Licensed Spaces
14
Source:, Statistics Canada, U.S. Census Bureau, Childcare Resource and Research Unit
1. Children in need of care based on Statistics Canada survey that reports: approximately 54% of 0-5 year olds and 39% of 6-12 year olds require some form non-parental care of which
64% use regulated child care.
2012
Shortage
Canadian Market Highly Fragmented
Ontario

15%
British Columbia

7%
85%

Alberta
9%
93%

91%
% Share of operators with <10 centres
15
% Share of operators with >10 centres
Source: Management estimates, company websites, and William Blair & Company LLC
Canadian childcare market
comprised primarily of small
independent operators
Consolidation of U.S. market has
not occurred in Canada
Market share of top 5 for-profit
childcare providers: Canada ~2%
vs. U.S. ~12%
Ample opportunity for industry
consolidation
Growth Strategy To Drive Future Value Creation:
Province Specific Strategies Offer Long Growth Runway
Alberta



16
Confident in existing
development projects and
upcoming opportunities
despite cyclical downturn
Certain markets in Calgary
and Edmonton areas continue
to present supply/demand
imbalances
Large-format developments
in growing communities
remain a focus
Ontario

Market is stabilizing

Impact of FDK on
communities clarified

Select business models
present attractive
opportunities post FDK

Pursuing strategic
acquisitions

Development opportunities in
markets with supply /
demand imbalances
British Columbia

Cost of housing driving many
young families to new
communities outside
Vancouver

Pursue opportunistic “first
mover” developments in
rapidly growing communities

New developments larger
than existing with long-term
occupancy rights
Growth Strategy To Drive Future Value Creation:
Announced 870 Licensed Spaces Increasing Capacity by 16%
Creekside
250 spaces
(Calgary)
West Henday
250 spaces
(Edmonton)
Windermere
190 spaces
(Edmonton)
Cochrane
120 spaces
(Calgary)
Airdrie Expansion
60 spaces
(Calgary)
 Trade area of 5,000
 Trade area of 3,300
 Trade area of 2,800
 Trade area of 1,600
 Centre operating at
0-5 year olds
 Spaces in trade area
~300
 Fastest growing
community in
Calgary
 Infant & Toddler sold
out
 Preschool selling
now
17
0-5 year olds

Spaces in trade
area ~700
 Key location
adjacent to public
transit hub and
major arterial route
0-5 year olds
 Spaces in trade area
~300
 Strongest Edmonton
demographics
0-5 year olds
 Spaces in trade area
~450
 Increasingly
attractive
destination for
commuters
100% capacity
 Strong parent
demand with
waitlist
 Market brisk with
new schools and
population growth
Growth Strategy To Drive Future Value Creation:
McKenzie Towne Success a Model for New Developments
Calgary, Alberta
Date opened
Capacity – at opening
Capacity – current
Square feet
Land lease
18
Oct. 2012
247 spaces
286 spaces
23,500
~1 acre
Current Utilization
Waitlist
Development cost
LTM Q1-2015 EBITDA
ROE
98%
~600
$5.8MM
$1.4MM
83%
Growth Strategy To Drive Future Value Creation:
Creekside Large-Format Facility Case Study
Opening:
Fall 2015
Capacity:
250 spaces
Square Feet
20,500
Registration Deposits >100 all FT
Development Cost:
$5.0MM
Pro forma ROE:
35%
Improved Facility Design for Greenfield Developments in Process


19
Re-engineered design for new purpose-built facilities will reduce unutilized square footage and
development cost, while improving building design
Reduced capital cost by approximately $1MM versus previous greenfield developments
Growth Strategy To Drive Future Value Creation:
Capacity to Drive Substantial EBITDA Growth
Spaces
Current stabilized operations (LTM)
EBITDA ($MM)
5,170
6.5
1,080
1.9
850
1.7
7,100
10.1
Announced / Recently Opened:
•
•
•
•
•
•
Clayton Hills (Surrey, open)
Airdrie expansion (Calgary, Q3 2015)
Cochrane leasehold (Calgary, Q3 2015)
Creekside greenfield (Calgary, Q4 2015)
West Henday greenfield (Edmonton, Q1 2016)
Windermere South leasehold (Edmonton, TBD 2016)
210
60
120
250
250
190
Unannounced
• Deploy available capital remaining
Pro forma EBITDA with growth
20
Increasing Shareholder Value:
Current Share Valuation at Significant Discount to Net Asset Value
($MM unless otherwise noted):
Pro forma EBITDA with growth
EBITDA Multiple (1)
Enterprise Value
Less: Pro forma Net Debt
Equity Value
Shares Outstanding
Operations Value per Share
$10.1
11x to 13x
111.1 to 131.3
42.1
69.0 – 89.2
121.4MM
$0.57 – $0.73
Potential Incremental Value from Real Estate Monetization (2)
$0.23 – $0.27
Total NAV (per share)
$0.80 – $1.00
21
1.
2.
Enterprise Value / EBITDA; based on peer group of publicly traded child care operators
Based on illustrative analysis on slide 23
Increasing Shareholder Value Example:
Unrealized Value of Owned Real Estate Portfolio
22
Number of
Properties
Capacity
Square Feet
Estimated Value (1)
($MM)
Calgary
19
2,038
148,731
40.3
Edmonton
1
197
12,000
3.3
Kelowna
1
140
10,635
2.9
Red Deer
3
167
12,204
3.3
TOTAL OWNED
24
2,542
183,570
49.8
1.
Valuation assumes blended $19 psf rent and blended 7% cap rate
Increasing Shareholder Value:
Illustrative Example of Real Estate Monetization and Use of Proceeds(1)


Real Estate Monetization
(2)
(2)
 Rent on sale leaseback (SLB”) ~$3.5MM per year
Proceeds from monetization ~49.8MM
Proceeds net of debt and transaction costs ~$27.3MM  All net proceeds deployed to one of options below
Option 2: Reinvest in Growth (MM)
Option 1: Share Buy-back (MM)
56.9
Pro forma EBITDA after SLB (4)
$6.6
# Shares outstanding post buy-back
64.5
Incremental EBITDA (15% ROI)
4.1
Pro forma EBITDA after SLB (4)
$6.6
Pro forma EBITDA
# Shares repurchased
(3)
$10.7
EBITDA multiple
11x – 13x
EBITDA Multiple
11x – 13x
Enterprise value
$72.6 – 85.8
Enterprise value
$117.7 – 139.1
Equity value(5)
$51.5 – 64.7
Equity value(5)
$96.6 – 118.0
NAV (per share)
23
$0.80 – $1.00
1. Example is for illustrative purposes only to reflect value inherent in real estate owned by 3.
the Company
4.
2. Assumes blended $19.00 psf net rent at blended 7% cap rate
5.
NAV (per share)
Assumes shares purchased at $0.48
Pro forma EBITDA with growth less net rent on sale leaseback
Equal to enterprise value less remaining net debt of $21MM
$0.80 – $0.97
Increasing Shareholder Value:
Bringing it all Together…
 Operations value per share based on
existing operations and pro forma EBITDA
growth $0.57 - $0.73
 Further unrecognized value of company
owned real estate
 Illustrative real estate monetization with
Proceeds used to buy-back shares or
reinvest in further growth
 Combined NAV per share range $0.80 $1.00
24
Current common share
valuation is at a
significant discount to
Net Asset Value
per share
BrightPath’s Three-Part Strategy:
Positioned to Grow and Drive Shareholder Value
PRODUCT ALIGNMENT
to Optimize Performance
Leverage
In-place Structure to
GROW
• Outstanding product is a
• Capital in place to deliver
competitive advantage
growth
• Further opportunity in
• Fill opened and announced
aligning product offering
1,080 spaces representing
with physical and community
$1.9MM pro forma EBITDA
elements of each facility
• Advance pipeline of a further
• Disciplined enrollment and
850 spaces with pro forma
cost management to further
EBITDA of $1.6MM
strengthen results
• Scalable overhead structure
and systems to support
growth
25
Pursue Other Initiatives to
INCREASE SHAREHOLDER
VALUE
Pursue opportunities to drive
shareholder value creation
• Options for owned real
estate portfolio
• Share buy-back
• Share consolidation
• TSX graduation
• Employee share purchase
plan
Executive Management Team to Execute:
And Regional Management with 160 Years of Child Care Experience
Mary Ann Curran, CPA.CA, MBA
Chief Executive Officer


Senior level multi discipline executive
with 20+ years in complex operations,
managing functional elements directly
and integrating all
>15 years experience leading consumer
goods businesses to leverage brand,
reputation, quality

Reformatted B2C organizations to drive
sales and optimize

Formerly CEO of Jones Apparel Group
Canada; managed distributed operations
across Canada

Developed and implemented channel
expansion through opening of national
retail chain

Joined BrightPath in July 2012
26
Dale Kearns, CMA
President & Chief Financial Officer

Financial and capital markets expertise
with 20+ years in public and high
growth companies

Launched O+Y Properties in public
markets

Executive roles in Western Canada and
U.S. high growth consumer product
companies focused on acquisition,
development and monetization of
invested capital

Acquired, developed and licensed client
side technology to global OEMs

Joined BrightPath in May 2010
Liz Bradbeer, CPA.CA
Chief Operating Officer

Senior operational executive with 25+
years of operational and financial
leadership in Fortune 500 companies
and large-scale private enterprises

Chief Operating Officer responsible for
350+ retail locations throughout
Canada and the U.S.

Leveraged financial skills and
operational expertise to optimize
operations and improve ROIs

Joined BrightPath in November 2012
Q&A
27