Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q4 FY2018 Earnings Presentation
31 slides from Cl Educate's earnings presentation, May 24, 2018
Slide 1: Q4FY18 Investor Presentation
Q4FY18 Investor Presentation May 24, 2018 Q2FY18 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 Q4 & FY18 Financial Performance Q4 & FY18 Operational Performance Corporate Summary 4 Q4FY18 Investor Presentation
Slide 5: Key Financial Highlights
Financial Performance Key Financial Highlights Rs. In Crore Consolidated Total Income Q1 FY Q2 FY Q3 FY Q4 FY FY FY 2017 73.7 78.1 50.7 71.4 273.9 FY 2018 75.4 77.2 69.5 79.6 301.8 Growth (%) 2.3% -1.0% 37.0% 11.5% 10.2% Quarterly Income Distribution Q1 Q2 Q3 Q4 FY 2017 27% 28% 19% 26% FY 2018 25% 2
Slide 6: Financial Summary
Q4 & FY 2018 Results Financial Summary Rs. In Crore 31-Mar-17 31-Mar-18 YoY YoY Particulars Q4 FY17 Q4 FY18 Growth FY17 FY18 Growth Total Income 71.4 79.6 11.5% 273.9 301.8 10.2% Revenue ` Net Revenue 68.3 79.5 16.4% 263.3 288.9 9.7% EBITDA 11.43 2.26 -80.2% 34.2 22.8 -33.5% Profit PBT 7.37 -1.46 -1
Slide 7: Adjusted EBITDA
Q4 & FY 2018 Results ADJUSTED EBITDA Rs. In Crore FY 17 FY 18 EBITDA 34.2 22.7 Less: Other Income 10.6 12.9 Add back: Operating Income Component of Other Income 2.1 2.1 Operating EBITDA 25.7 11.9 Decline Contributed by: - ETEN - (3.5) - Vista Mind - (1.0) - Vocational (Additional Provision & ECL) -
Slide 8: Revenue
Q4 FY 2018 Results Review Segmental Metrics Rs. In Crore Particulars Q4FY17 Q4FY18 YoY (%) FY17 FY18 YoY (%) Total Revenue* 68.3 79.5 16.4% 263.3 288.9 9.7% Consumer 53.3 61.9 16.1% 185.9 202.1 8.7% - Test Prep 36.2 45.1 24.6% 140.5 158.3 12.7% Revenue - Publishing 17.1 16.8 -1.8% 45.4 43.8 -3.5% En
Slide 9: Contents
Contents Q4 & FY18 Financial Performance Q4 & FY18 Operational Performance Corporate Summary 9 Q4FY18 Investor Presentation
Slide 10: Q4FY18 Operational Performance
Q4FY18 Operational Performance Consumer Business Enterprise Business 10 Q4FY18 Investor Presentation
Slide 11: Consumer Business Performance: Revenue
Consumer Business Performance Consumer Operating Metrics Rs. In Crore Particulars Q4FY17 Q4FY18 YoY (%) FY17 FY18 YoY (%) Consumer 53.3 61.9 16.1% 185.9 202.1 8.7% Revenue - Test Prep 36.2 45.1 24.6% 140.5 158.3 12.7% - Publishing 17.1 16.8 -1.8% 45.4 43.8 -3.5% Consumer 10.8 13.0 20.5% 32.6 25.5 -2
Slide 12: Key Highlights – Business as Usual
Consumer Business Performance Key Highlights – Business as Usual For year ended FY 2018, Billing grew by 13% from Rs 154 crs to Rs 174.5 crs TP centres as on Mar 31, 2018 were 212 vs 162 as on Mar 31, 2017 TEST PREP TP enrollments grew by 2% from 81,665 to 82,997 ^ MBA & IE volumes up 7% f
Slide 13: New Products
Consumer Business Performance New Products THEME Civils/ CA GATE Campus Training IX-XII (Maha) Continue to focus on our Acquired in April 17 Partially acquired Business Collaboration in Jan Core strengths - outcome Consolidated with (50.7%) in Oct 17 Collaboration in Aug 2018 driven serv
Slide 14: Q4FY18 Operational Performance
Q4FY18 Operational Performance Consumer Business Enterprise Business 14 Q4FY18 Investor Presentation
Slide 15: Enterprise Business Performance: Revenue
Enterprise Business Performance Enterprise Operating Metrics Rs. In Crore Particulars Q4FY17 Q4FY18 YoY (%) FY17 FY18 YoY (%) Enterprise 28.0 32.3 15.5% 104.8 119.6 14.1% Revenue - Corporate 22.9 26.5 15.7% 94.0 101.9 8.4% - Institutional 5.1 5.8 14.8% 10.7 17.7 64.8% Enterprise 1.2 0.2 -78.8% 5.5 5
Slide 16: Enterprise Operating Metrics
Enterprise Business Performance Enterprise Operating Metrics Enterprise KPIs FY 2017 FY 2018 # of Students touched 600,000 1,000,000 Clients billed 146 214 # of Corporates billed 64 82 # of Universities billed 82 132 Services for Institutions comprise: Services for Corporates comprise: Integrated
Slide 17: Enterprise Corporate - Highlights
Key Business ENTERPRISE Pillars BUSINESS - CORPORATE ENTERPRISE CORPORATE - HIGHLIGHTS Integrated Sales & International Business Intellectual Property Marketing Business • Consulting: Business team • Resources hired in Mumbai to scale up • Inquizitive Minds transition to Marketing/ Cloud internation
Slide 18: Contents
Contents Q4 & FY18 Financial Performance Q4 & FY18 Operational Performance Corporate Summary 18 Q4FY18 Investor Presentation
Slide 19: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 19 Q4FY18 Investor Presentation
Slide 20: 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 20 Q4FY18 Invest
Slide 21: 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 22: Contact Us
CONTACT US For any Investor Relations queries, please contact: Amit Kanabar – Finance & Strategy Sudhir Bhargava, 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
Slide 23: Annexures
Annexures 23
Slide 24: 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 25: 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 Educate Corporates Integrated Marketing Services (Corporates)
Slide 26: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 50.7% 100% 100% 100% 100% Accendere 44% Kestone ICEGATE GK Publications CL Media Knowledge Mgt. CLEIS Eduvisors Services Content Research Integrated Test preparation Incubation & Career Launcher Specialist K-12 development, focused education Busines
Slide 27: 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 28: 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 Enterprise Unique Learning cum productivity Sales DNA in Corporate services 1 Kestone • Managed Manpower Services • Trai
Slide 29: 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 30: 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 31: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Mar 31, 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 5.56 23.3% HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.19 ASHOKA PTE LTD 3.77 D