Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — H1 FY2019 Earnings Presentation
36 slides from Cl Educate's earnings presentation, Nov 5, 2018
Slide 1: H1 FY18-19 Investor Presentation
H1 FY18-19 Investor Presentation November 05, 2018 H1FY19 Investor BSE: 540403 Presentation | NSE: CLEDUCATE
Slide 2: Safe harbor
Safe harbor This presentation has been prepared by CL Educate Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person. This presentation and its contents are confidential and should not
Slide 3: Glossary
Glossary Bank Banking PO BP Business Partner (Franchisee) BPL Below Poverty Line CA Chartered Accountancy CDC Career Development Center CFE Center for Future Employability Civils Civil Services CRT Campus Recruitment Training GATE Graduate Aptitude Test in Engineering IE International Education IIT
Slide 4: Contents
Contents Key Initiatives H1 FY19 Financial Performance H1 FY19 Operational Performance 4 H1FY19 Investor Presentation
Slide 5: Overview & Key Initiatives
Overview & Key Initiatives Consumer: 3D Enterprise In-Focus: Innovation Corporate Updates • Distribution • Kestone • Aspiration.Ai • Restructuring • Delivery • TEQIP • Alexa • Asset Sale • Digital • Amazon • Biz Tech • WainConnect 5 H1FY19 Investor Presentation
Slide 6: Consumer Biz: 3D
Consumer Biz: 3D Distribution Delivery 1. CoCo to BP 1. Product 2. 10 New Centers Portfolio Exp. added 2. Upskilling 3. CD (Master 3. Fin-school Class) CA-CS, IAS, launched – BDO GATE partnership Digital 1. Aspiration 2. Amicus 3. CAT NC+DC 6 H1FY19 Investor Presentation
Slide 7: Amazon Alexa
Amazon Alexa ALEXA – GK / VOCAB SKILLS SEATTLE DEVELOPER CONFERENCE ALEXA – MBA / LAW SKILLS Career Launcher releases voice enabled educational skills built on Amazon's Alexa platform 7 H1FY19 Investor Presentation
Slide 8: Alexa Skills
Innovation Update Alexa Skills* Word Game Knowledge Game The MBA Skill • Colleges • Exams • Advisories – Best School, Comparisons • Linked to CL Student performance The Law Skill H1FY19 Investor Presentation * All the above mentioned skills are developed by CL & ratified by Amazon 8
Slide 9: The Lex Experience
Innovation Update The Lex Experience Amicus – The Lex Bot Amicus – The Advisor 9 H1FY19 Investor Presentation
Slide 10: Contents
Contents Key Initiatives H1 FY19 Financial Performance H1 FY19 Operational Performance 10 H1FY19 Investor Presentation
Slide 11: Consolidated Financial Results – Brief Snapshot
Consolidated Financial Results – Brief Snapshot Revenue up 28% Y-o-Y EBITDA up 41% Y-o-Y. EBITDA & Net Profit EBITDA Margin up by 116 bps to 12.3% Net Profit Up 61% Y-o-Y. Net Profit Margin up by 134 bps to 6.5% 11 H1FY19 Investor Presentation
Slide 12: Financial Summary
H1 FY 2019 Results Financial Summary Rs. In Crore H1 FY19 H1 FY18 Y-o-Y (%) Q2 FY19 Q2 FY18 Y-o-Y (%) Revenue from operations 189.0 144.5 30.8% 101.9 71.5 42.5% Other income 6.1 8.1 -25.1% 2.4 5.7 -58.1% Total Income 195.1 152.6 27.8% 104.3 77.2 35.1% Total expenses 178.8 142.6 25.4% 94.9 70.9 33.9%
Slide 13: Revenue
H1 FY 2019 Results Review Segmental Metrics Rs. In Crore Particulars H1FY19 H1FY18 YoY (%) Total Revenue from Operations 189.0 144.5 30.8% Consumer ^ 129.8 103.9 24.9% - Test Prep 106.6 84.3 26.6% Revenue - Publishing 23.1 19.7 17.6% Enterprise ^ 78.5 54.2 44.7% - Corporate 67.3 47.5 41.6% - Institu
Slide 14: Contents
Contents Key Initiatives H1 FY19 Financial Performance H1 FY19 Operational Performance 14 H1FY19 Investor Presentation
Slide 15: H1FY19 Operational Performance
H1FY19 Operational Performance Consumer Business Enterprise Business 15 H1FY19 Investor Presentation
Slide 16: Consumer Business Performance
Consumer Business Performance Consumer Operating Metrics `. In Crore Particulars H1FY19 H1FY18 YoY (%) Consumer 129.8 103.9 24.9% Revenue ^ - Test Prep 106.6 84.3 26.6% - Publishing 23.1 19.7 17.6% Consumer KPIs H1 FY19 H1 FY18 No. of Test - Prep Centers 188 200 No. of enrolled TP students 46,250# 4
Slide 17: Consumer Business Performance – Key Highlights
Consumer Business Performance Key Highlights – Business as Usual ▪ New Segments contributed ~19 Cr to topline (vs ~4.9 Cr Sep 17) TEST PREP ▪ Law contribution to test prep biz catches up with MBA program in H1 FY19 ▪ Digital Biz & Test Series showing good growth ▪ Average TP fees realized per studen
Slide 18: H1FY19 Operational Performance
H1FY19 Operational Performance Consumer Business Enterprise Business 18 H1FY19 Investor Presentation
Slide 19: Enterprise Business Performance
Enterprise Business Performance Enterprise Operating Metrics `. In Crore Particulars H1FY19 H1FY18 YoY (%) Enterprise 78.5 54.3 44.7% Revenue^ - Corporate 67.3 47.5 41.6% - Institutional 11.2 6.8 66.3% ^Without Segmental Elimination 19 H1FY19 Investor Presentation
Slide 20: Enterprise Operating Metrics
Enterprise Business Performance Enterprise Operating Metrics H1 FY19 H1 FY18 INSTITUITIONAL Revenue* Revenue* # Clients # Clients (` in Crore) (` in Crore ) Media 49 7.3 53 3.3 Research Incubation 12 2.0 5 1.8 Total 61 9.3 58 5.1 * Excl. Opening Unearned Revenue H1 FY19 H1 FY18 CORPORATE Revenue Rev
Slide 21: Enterprise Business – Beyond Numbers
Enterprise Business – Beyond Numbers New Partnerships Large Projects New Chapter Dell CIO Forum: Michael Dell Show 3 out of 10 pitches are solving strategic problems for our clients. Largest Google Developer Show First ever SMB awards for SAP design, conceptualized and executed New age tech adoption
Slide 22: Enterprise Business – Brief Snapshot
Enterprise Business – Brief Snapshot Business Contributions • # Clients – 52; # New Clients - 23 International biz kicks off • Revenue Mix – • Event & MMS – 66% • Digital, Marcomm & CEP – 31% • Others – 3% Singapore self sustaining. Dubai Biz in early stages • Focus to push Digital, Marcomm & CEP •
Slide 23: Thank You
Thank You 23
Slide 24: Contact Us
CONTACT US For any Investor Relations queries, please contact: Amit Kanabar – Finance & Strategy Arjun Wadhwa, Chief Financial Officer CL Educate Ltd. CL Educate Ltd. Phone: +91-11-41280800 Phone: +91-11-41280800 Email: investors@careerlauncher.com Email: investors@careerlauncher.com amit.kanabar@ca
Slide 25: Annexures
Annexures 25
Slide 26: Operating in sizable $100 bn+, fast-growing industry
Indian Education Landscape Operating in sizable @$100 bn+, fast-growing industry Figures in Rs Cr CL’s focus areas JEE GATE Medical MBA Law CA UPSC, SSC, 14,600 1,680 6,400 390 83 2,520 Bank PO A $100 bn+ market 11,500 growing @16% Unregulated/ Education CAGR Informal/ Test-prep/ Industry Entreprene
Slide 27: Comprehensive product portfolio in Knowledge & Career Services
CL’s portfolio Comprehensive product portfolio in Knowledge & Career Services MBA I Law I Bank/SSC I Aptitude Products (AP) International Test-prep Consumer Knowledge Products (KP) GATE I IIT I Medical I CA I Civils Services Publishing CL Group Corporates Integrated Marketing Services (Corporates) E
Slide 28: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 50.7% 100% 100% 100% 100% Accendere Kestone ICEGATE GK Publications CL Media Knowledge Mgt. CLEIS 44.18% Services Eduvisors Content Research Integrated Test preparation Incubation & Career Launcher development, Business, GATE based Test publisher wi
Slide 29: Leader in Test-Prep Segment
Consumer Vertical Leader in Test-Prep Segment Growing Brand Equity from Sustainable Strengths Consumer Bouquet of Products (MBA, Most comprehensive product-reach portfolio: 12 Law, Civils, GATE, Engg, etc.) 1 product groups + Network of 212* centers pan India & ~25K online users in FY18 National Tes
Slide 30: Knowledge services for Corporates, Educational Institutions
Enterprise Vertical Knowledge services for Corporates, Educational Institutions Differentiated offerings + One of the best execution capabilities Knowledge Services for Corporates Sales 1 Kestone • Managed Manpower Services • Training & Development 2,500+ Marketing Creative, approachable, • Marketin
Slide 31: Cross-leveraging between consumer & enterprise platforms
Unique Synergies Cross-leveraging between consumer & enterprise platforms CONSUMER ENTERPRISE Brand recognition …She then meets us in college for test across learning life CL initial brand contact prep or experiences …And then again in cycle when she is in school…. our research the workplace... serv
Slide 32: Strong team, complete focus on governance & processes
Strong ethos Strong team, complete focus on governance & processes Satya Narayanan R., Gautam Puri, Nikhil Mahajan, Professionally Chairman & Executive Director Vice Chairman & Managing Director Executive Director & CEO Enterprise business qualified, • 19+ years of experience in • 19+ years of exper
Slide 33: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 33 H1FY19 Investor Presentation
Slide 34: Consolidation (Capital Reallocation)
Big Rock 1 Consolidation (Capital Reallocation) K12 ASSETS SALE GREATER NOIDA ASSET SALE ▪ BTA deal did not fructify; fund raising & ▪ Lack of demand – Outright Sale related challenges ▪ Potential Option – to lease out the ▪ Alternate asset sale conversations underway infrastructure 34 H1FY19 Invest
Slide 35: Realignment (Effort and Capital)
Big Rock 2 Realignment (Effort and Capital) GUIDING PRINCIPLES BUSINESS SEGMENT PRODUCTS BRANDS ▪ Strengthen Market Share, Civil Services/ CA growth and profitability ▪ Strategic Entry into large addressable, scalable GATE segments CONSUMER YARDSTICKS IX-XII (Maha) ▪ Return of Investment in 3 – 4 ye
Slide 36: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Sep 30, 2018) Key investors > 1% 14,165,678 Investors Shareholding % GPE (INDIA) LTD / GAJA TRUSTEE COMPANY PRIVATE LIMITED 8.45 Non- Institutional, SUNDARAM MUTUAL FUND A/C 6.24 26.7% HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.19 DSP BLACKROCK MICRO C