S Chand And Company Limited · NSE:SCHAND
S Chand And — Q1 FY2021-22 Earnings Presentation
47 slides from S Chand And's earnings presentation, Aug 12, 2021
Slide 1: Stock exchange cover letter for investor presentation
-9- y S Chand And Company Limited Registered Office: A-27, 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. S.CHAND P:+91 11 4973 1800 I F:+91 11 4973 1801 I E: info@schandqroup.com I www.schand�roup.com ---• GROUP Date: August 12, 2021 To To Listing Department Listing Dep
Slide 2: Q1 FY2021-22 Investor Update
S. Chand and Company Limited Q1 – FY2021-22 Investor Update 12th August 2021
Slide 3: Summary
SUMMARY 1. Key Quarterly Highlights 2. Digital Business Update 3. Looking Ahead 4. S. Chand Ed-Tech Initiatives - Annexure 2
Slide 4: Key Quarterly Highlights
Key Quarterly 1. Highlights 3
Slide 5: Impact of Covid on Educational Institutions
IMPACT OF COVID ON EDUCATIONAL INSTITUTIONS • India wide lockdown in force during April and May. • Process of reopening starts from June onwards. Q1 FY21 • Schools and Colleges remain firmly closed • Examinations Delayed. • Process of reopening gathers steam across the country. • Covid cases are on
Slide 6: Wave 2 Impacted Q1 Strongly
WAVE 2 IMPACTED Q1 STRONGLY • K-12 Segment • Schools and colleges remain physically shut across the country during April – July, 21. Summer holidays were extended till June 2021 • Many states have announced school reopening for senior classes from August, 21 onwards. We expect school openings to gat
Slide 7: Look Forward to Reopening of Educational Institutes in Q2
LOOK FORWARD TO REOPENING OF EDUCATIONAL INSTITUTES IN Q2 • Q1FY22 saw the full impact of Covid Wave 2 as all educational institutes across India remained closed during the quarter. The impact of Wave 2 was higher across the country even impacting online education. • We have started seeing school op
Slide 8: Status of Key States - Reopening of Educational Institutes in Q2
STATUS OF KEY STATES - REOPENING OF EDUCATIONAL INSTITUTES IN Q2 Uttar Pradesh •The schools will be reopened for intermediate students with 50 per cent capacity from August 16 onwards. Classes at higher educational institutes will commence from September 1. Haryana •The government and private school
Slide 9: Moving to a Structurally Lower Debt & Inventory Levels
MOVING TO A STRUCTURALLY LOWER DEBT & INVENTORY LEVELS We have moved to a fundamentally lower debt We are moving to a structurally lower inventory profile for the company. We are looking to reach levels in the company. We are targeting Rs800m- net debt zero levels by Q4FY23 on back of Rs1,000m inven
Slide 10: Improving Working Capital Cycle
IMPROVING WORKING CAPITAL CYCLE • Inventory days - Down 59 days (YoY). • Receivable days - Down 6 days (YoY). • Net Working capital days – Down 16 days (YoY). 9
Slide 11: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Q1FY22 Sales impacted due to Covid Wave 2 related lockdowns across India and extension of School vacations till June end. We expect shifting of revenues to Q2. • Q1FY22 is not comparable with Q1FY21 since Q1FY21 had sales overflow from Q4FY20 (which was impacted
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 11
Slide 13: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Receivables: Strong collection in Q1 over comparable period last year in spite of covid Wave 2 represents better quality of sales achieved in FY21. • Inventory: Increase in inventory of Rs103m is on back of raw material addition over March, 21 on account of delay
Slide 14: Improving Working Capital Cycle
IMPROVING WORKING CAPITAL CYCLE • Working Capital Metrics • Trade Receivables reduced to Rs2,485m during Q1FY22 vs. Rs3,221m as of Q4FY21. In terms of receivable days, it stood at 233 days (vs. 276 days in Q4FY21), a reduction of 43 days during the quarter. • Inventory reduced to Rs1,480m (vs Q1FY21
Slide 15: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As of 12th Aug, 2021 Key Institutional Investors - As Other Institutional Investors holding less % Holding of June 2021 than 1% - As of June 2021 Market Capitalization (Rs Mn) 4,400 International Finance 8.0% Aadi Financial Advisors Corporation Price (Rs) 126 Trust
Slide 16: Result Conference Call Details
RESULT CONFERENCE CALL DETAILS 15
Slide 17: Digital Business Update
Summary 2. Digital Business Update 16
Slide 18: Digital Business Update – Learnflix & Mylestone
DIGITAL BUSINESS UPDATE – LEARNFLIX & MYLESTONE • Learnflix App (Affordable Personalised Student App) targeted to • Mylestone: Digitally enabled School Curriculum Solution for the K-8 the Next Half Billion (NHB) audience has got strong response in segment is now ready to grow exponentially. past 12
Slide 19: Digital Business Update – Educate
DIGITAL BUSINESS UPDATE – EDUCATE 360 • Madhubun Educate360 is the newly conceived K-12 Blended learning solution for enabling schools to conduct online classes, student assessments, e-book support etc. as a response to the Covid-19 crisis. This product is NEP 2020 compliant supporting the recommend
Slide 20: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS • Convergia houses Learnflix and Mylestone. Various formalities with regards to Convergia and business transfer are completed. The company is meeting various investors to raise US$8-10 Mn for the next leg of growth. • Convergia is a subsidiary of S Chand only t
Slide 21: Investee Companies – Hidden Value in Our Balance Sheet
INVESTEE COMPANIES – HIDDEN VALUE IN OUR BALANCE SHEET Our major investee companies raised capital and did well during these times as well • Testbook was founded in 2014 with focus on online test preparation for government competitive exams like Civil services, Banks, Govt departments like railways,
Slide 22: Looking Ahead
Summary — —— S.CHAND GROUP Looking Ahead www.schandgroup.com
Slide 23: Looking Ahead
LOOKING AHEAD = —~— S.CHAND ePpoup Twin Growth Drivers in place -: (1) NEP based new curriculum for print business, (2) Increased adoption of our Ed-Tech solutions ina post Covid world FY22 Medium Term Looking Implement a Developmen forward toa rice hike Expect RE eW Debt free in Increasing, aera St
Slide 24: New Education Policy – Big Positive Going Ahead
NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD IN SHORT TO MEDIUM TERM • Announcement of Draft New Education May, 2019 Policy (NEP) • The New Education Policy (NEP) was formally adopted by the Union Government in July, 2020. • Adoption of the New Education Policy • Expected release of the New Natio
Slide 25: S. Chand Group Journey So Far
S. CHAND GROUP JOURNEY SO FAR… S. Chand Other Ed-Tech Publishing – Apps and Products – SmartK, S. Chand, Vikas, myStudyGear etc Madhuban, New Saraswati, Chaaya Destination Success - Test Coach – App for Learnflix – Mobile Digital Competition exams Learning App Classroom S. Chand Publishing Destinati
Slide 26: S. Chand Group Product Strategy for the Future
S. CHAND GROUP PRODUCT STRATEGY FOR THE FUTURE Digital Content • Textbooks • Multimedia Analytics and Insights • Practice Tests • Student 01 • Teacher 05 • School Live Classes • Parent • Video conferencing platform • Calendar scheduling Teacher Connect • Recorded classes • Teacher published content
Slide 27: Major Ed-Tech Initiatives - Annexure
Summary Major Ed-Tech Initiatives - Annexure 2.1 Learnflix 4. 2.2 Mylestone 2.3 Educate 360° 26
Slide 28: Learnflix – India's Most Affordable Learning App
LEARNFLIX – S. CHAND'S B2C & B2B2C OFFERING - INDIA'S MOST AFFORDABLE LEARNING APP Offering Digital content Adaptive test Self paced learning Analytics and reports Grades 6 to 10 Channel Sales & Marketing Support Revenue model B2B2C: Distributing through schools ➢ A strong sales team that connects w
Slide 29: Learnflix – Overview
LEARNFLIX – OVERVIEW Takes learning one step Concept ahead by providing Revision advanced individualized learning Try Out Concept Practice ➢ Currently available for grades 6th to 10th for maths and science subjects Chapter Video test ➢ The Spiral Learning Pedagogy ensures all concepts are well learn
Slide 30: Learnflix – Students Can Personalize Their Learning Paths
LEARNFLIX – STUDENTS CAN PERSONALIZE THEIR LEARNING PATHS… Flexibility to choose the time, Extremely focused and guided analytics to place and pace of learning help students, teachers and parents to monitor performance Reinforcement of previous Test level analytics 360° ➢ Score, Accuracy, Questions,
Slide 31: Mylestone – S. Chand's B2B Curriculum Offering
MYLESTONE – S. CHAND’S B2B CURRICULUM OFFERING Till grade 8 Teachers hand Student Digital content Progress report Training & support Resource kits Teacher/ Student book with Books with analytics app lesson plans Offering Grades 9 to 12 Digital content Adaptive test Self paced learning Analytics and
Slide 32: Mylestone – S. Chand's B2B Curriculum Offering
MYLESTONE – S. CHAND’S B2B CURRICULUM OFFERING 31
Slide 33: Mylestone – Features
MYLESTONE – FEATURES • Teacher Handbook • Quiz – MCQ based • Online – MCQ based Live Classes – Course Book • Assignment – • Pen and Paper – Integrated with Zoom, • Practice Book Objective + Objective and MS teams, Google • Mylestone Digital Subjective question Subjective question Meet, Other Resourc
Slide 34: Mylestone – Strong Process in Place to Assist the School
MYLESTONE – STRONG PROCESS IN PLACE TO ASSIST THE SCHOOL WITH IMPLEMENTATION Pre-implementation Post-implementation School diagnostic Training on School leaders Teachers Lesson Training on time Through survey classroom induction induction observation I management and display on-site visit Create and
Slide 35: Mylestone App – Features
MYLESTONE APP — FEATURES TEACHER WEB SCHOOL ADMIN GO &)=— &)s= PORTAL PORTAL ti > LIVE classes integrated Web based Admin portal © o% ‘100% ae 0% Se with online platforms Syllabus completion iL] Ean Online Homework report and Assessments with Cee sectiontadee analytics teacher dashboard Mark Attenda
Slide 36: Mylestone App – Features
MYLESTONE APP — FEATURES ‘TOOAY UPCOMING COMPLETED J 4 Pen 6 Paper | Create Digital Rosources. Setence fo) Mate 0 Noa Upcoming - a Frctions neo . Cepaed ts emogat) derogatt as} Deming Ma CS (© ysvoaanay 13:31 rsvoaaat 1235 (Qrwoaroer 21:30 0 vso8/2m 22:30 carmeiaennaees cana nareeanmence teen terre
Slide 37: Mylestone – The Business Case
MYLESTONE – THE BUSINESS CASE India is amongst the world’s largest K12 markets with strong preference for private schools K-12 enrolment in India Growth in K12 enrolment (in millions) 300 ➢ With over 245Mn K- 280 12 enrollments India Millions 260 250 250 250 245 240 240 is one of the largest 220 k-1
Slide 38: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? • Affordable private schools can be defined as schools charging annual fee in the range of 12k to 60k. Schools charging below 12k fees can be termed as low fee schools • According to DICE report, around 79% of private schools charge less than 5000Rs per month. That i
Slide 39: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? Affordable private schools face multiple challenges that negatively impacts learning outcome Lack of proper assessment and reports Poor quality of teachers and high attrition Assessments are based on rote learning and no analytical tool is used to Scarcity of trained
Slide 40: Educate 360° – An Overview
EDUCATE 360° – AN OVERVIEW P R O D U C T PA C K A G E E-Book Teacher’s Manual Printed Book Teacher Training Digital Supplements Assessment Integrated Platform Internet Links Concept Videos Ease of Access 39
Slide 41: Educate 360° – An Overview
EDUCATE 360 ° – AN OVERVIEW In Sync with the National Focusses on developing Education Policy (NEP)2020 2 1 st C e n t u r y S k i l l s •Art Education •Digital Creativity Digital Learning Learning Self- Confidenc Communicatio Periodic Collaborative e/ Self- n Assessment Learning Integrated Learning
Slide 42: Educate 360° – Product View
EDUCATE 360° – PRODUCT VIEW 41
Slide 43: Educate 360° – Teachers View
EDUCATE 360° – TEACHERS VIEW 42
Slide 44: Educate 360° – Students View
EDUCATE 360 ° – STUDENTS VIEW 43
Slide 45: Educate 360° – Teachers View
EDUCATE 360° – TEACHERS VIEW 44
Slide 46: Educate 360° – Students View
EDUCATE 360° – STUDENTS VIEW 45
Slide 47: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by S. Chand & Company Limited (“S. Chand” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, fin
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