Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q4 FY2019 Earnings Presentation
30 slides from Cl Educate's earnings presentation, 2019
Slide 1: © 2015, Christensen Investor Relations (I) Private Limited. All Rights Reserved.
© 2015, Christensen Investor Relations (I) Private Limited. All Rights Reserved. 1
Slide 2: Core Values
Core Values 0 Risk Taking © OPENNESS OWNERSHIP HONESTY &COMMITMENT INNOVATION Presented by: CL EDUCATE LIMITED 2
Slide 3: Safe Harbor
Safe Harbor i ZC L educate 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
Slide 4: Glossary
Glossary Bank Banking PO IE International Education BP Business Partner (Franchisee) IIT JEE indian Institute of Technology Joint BPL Below Poverty Line Marcomm | Marketing Communication cA Chartered Accountancy MBA Masters in Business Administration coc Career Development Center PDP Personality Dev
Slide 5: Contents
Contents _ | Operational Organizational Performance Updates Presented by: CL EDUCATE LIMITED °
Slide 6: Consolidated Financial Results – Brief Snapshot
Consolidated Financial Results – Brief Snapshot Net Profit EBITDA ✓ 20.1 Cr – Mar 19 ✓ 40.2 Cr – Mar 19 ✓ 5.9 Cr – Mar 18 ✓ 22.8 Cr – Mar 18 ✓ 34.2 Cr – Mar 17 ✓ 16.0 Cr – Mar 17 76.2% EBITDA Margin 16.8% ✓ 11.4% – Mar 19 239.6% ✓ 7.6% – Mar 18 ✓ 12.5% – Mar 17 Total Revenue 380 bps ✓ 352.5 Cr – Mar
Slide 7: Q4 & FY 2019 Consolidated Financial Results
Q4 & FY 2019 Consolidated Financial Results Rs. In Cr. FY19 FY18 Y-o-Y (%) Q4 FY19 Q4 FY18 Y-o-Y (%) Revenue from operations 339.3 288.9 17.4% 80.9 79.5 1.7% Other income 13.2 12.9 2.5% 4.6 0.1 3094.8% Total Income 352.5 301.8 16.8% 85.4 79.6 7.3% Total expenses 328.1 294.0 11.6% 82.4 81.1 1.6% EBIT
Slide 8: FY 2019 Segmental Metrics
FY 2019 Segmental Metrics Particulars FY19 FY18 YoY (%) Total Revenue from Operations 339.3 288.9 17.4% Consumer ^ 221.1 202.1 9.4% - Test Prep 182.1 158.3 15.0% Revenue - Publishing 39.0 43.8 -11.1%* Enterprise ^ 150.9 119.7 26.1% - Corporate 126.0 102.0 23.6% - Institutional 24.9 17.7 40.6% 8
Slide 9: Contents
Content: iw] omens (iT educate ELED == Financial Performance Organizational Updates Presented by: CL EDUCATE LIMITED °
Slide 10: FY 2019 Operational Performance
FY 2019 Operational Performance 10
Slide 11: Consumer Operating Metrics
Consumer Operating Metrics Rs. In Cr. Particulars FY19 FY18 YoY (%) Consumer 221.1 202.1 9.4% Revenue ^ - Test Prep 182.1 158.3 15.0% - Publishing 39.0 43.8 -11.1% Consumer KPIs FY19 FY18 No. of Test - Prep Centers 203 187* No. of enrolled TP students 77,162^ 72,005^ %age of online TP students 31.9%
Slide 12: Key Highlights: Test Prep, Publishing
Key Highlights Test Prep • New Segments (SP, CA-CS, IAS, GATE) contributed 12.2% to billing vs 6.7% LY ( ~ Rs. 25 Cr vs ~Rs 12 Cr) • Digital Biz grew 26% • International Biz > 7 Cr, up by 23% Publishing • UPSC & School Biz show 13% growth • Core BAU Biz: ▪ Technical job market slow down ▪ GATE Test
Slide 13: FY 2019 Operational Performance
FY 2019 Operational Performance 13
Slide 14: Enterprise Operating Metrics
Enterprise Operating Metrics Particulars FY19 FY18 YoY (%) Revenue^ Enterprise 150.9 119.6 26.1% - Corporate 126.0 102.0 23.6% - Institutional 24.9 17.7 40.6% 14
Slide 15: Enterprise Operating Metrics: Institutional and Corporate
Enterprise Operating Metrics FY19 FY18 INSTITUITIONAL Revenue Revenue # Clients # Clients (Rs. in Cr.) (Rs. in Cr.) Media 141* 17.0 120 10.2 Research Incubation 12 4.0 10 3.5 Total 153 21.0 130 13.7 *Including TEQIP FY19 FY18 Revenue Revenue CORPORATE # Clients # Clients (Rs. in Cr.) (Rs. in Cr.) Do
Slide 16: Contents
Contents 4 educate Operational Financial Performance Performance Presented by: CL EDUCATE LIMITED °°
Slide 17: Organizational Updates & New Initiatives
Organizational Updates & New Initiatives Merger Update ✓ BSE & NSE Approval received ✓ SEBI approval awaited ✓ Next Step: NCLT process ✓ Expected Closure: 5-6 Months 17
Slide 18: Thank You
cl Thank — me For Investor Relations Queries Contact Arjun Wadhwa Amit Kanabar Chief Financial Officer Investor Relations CL Educate Ltd. CL Educate Ltd. Call: +91-11-41280800 Call: +91-11-41280800 ==jyi2\|- investors@careerlauncher.com E4'\":' sinvestors@¢Careerlaunchercom arjun.wadhwa@careerlaunch
Slide 19: Annexures
Annexures 19
Slide 20: Indian Education Landscape
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 21: 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 22: 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 23: Consumer Vertical: 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 24: Enterprise Vertical: Knowledge services for Corporates, 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 25: Unique Synergies
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 26: 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 27: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 27 Q3FY19 Investor Presentation
Slide 28: 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 28 Q3FY19 Invest
Slide 29: 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 30: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Mar 31, 2019) Key investors > 1.75% 14,165,678 Investors Shareholding % GPE (INDIA) LTD / GAJA TRUSTEE COMPANY PRIVATE LIMITED 8.45 Non- Institutional, SUNDARAM MUTUAL FUND A/C 6.50 28.2% ARJUNA PTE LTD. 5.01 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.