Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q2 FY2020 Earnings Presentation
33 slides from Cl Educate's earnings presentation, November 2019
Slide 1: Excellence In Education. Since 1995 Q2 FY19-20 Investor Presentation
Excellence In Education. Since 1995 Q2 FY19-20 Investor Presentation © 2015, Christensen Investor Relations (I) Private Limited. All Rights Reserved. 1 Presented by: CL EDUCATE LIMITED
Slide 2: Core Values
Core Values 2 Presented by: CL EDUCATE LIMITED 2
Slide 3: 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 4: Contents: Financial Performance
Contents Financial Operational Organizational Performance Performance Updates 5 Presented by: CL EDUCATE LIMITED
Slide 5: H1 Consolidated Financial Results – Brief Snapshot
H1 Consolidated Financial Results – Brief Snapshot Adjusted EBITDA EBITDA 36.0% 28.46 – Sep 19 ✓ 25.26 Cr – Sep. 19 20.93 – Sep 18 (Margin: 13.1%) 5.3% ✓ 23.99 Cr – Sep. 18 (Margin: 12.3%) Net Profit^ ✓ 9.87 Cr – Sep. 19 -12.1% 43.0% Total Enrollments ✓ 11.22 Cr – Sep. 18 ✓ 66,149 – Sep. 19 ✓ 46,244
Slide 6: H1 FY 2020 Consolidated Financial Results
H1 FY 2020 Consolidated Financial Results Rs. In Cr. H1 FY20 H1 FY19 Y-o-Y (%) Revenue from operations 187.91 189.02 -0.6% Other income 4.86 6.08 -20.0% Total Income 192.77 195.09 -1.2% Total expenses 178.37 178.79 -0.2% EBITDA 25.26 23.99 5.3% PBT (Continued Ops) 14.24 16.29 -12.6% PAT (Continued O
Slide 7: H1 FY 2020 Adjusted EBITDA
H1 FY 2020 Adjusted EBITDA Rs. In Cr. H1 FY20 H1 FY19 % EBITDA 25.26 23.99 5.3% Adjustments Add: IND AS 115 (Net Impact) CL Media 0.33 GKP 0.24 Add: Vocational Write offs 2.75 1.20 Less: SP One-time Revenue 0.11 1.20 Less: Liabilities netted off - 3.07 Adjusted EBITDA 28.46 20.93 36.0% Presented by:
Slide 8: H1 FY 2020 Segmental Metrics
H1 FY 2020 Segmental Metrics Rs. In Cr. Particulars H1 FY20 H1 FY19 YoY (%) Total Revenue from Operations 187.91 189.02 -0.6% Consumer ^ 125.34 129.76 -3.4% - Test Prep 106.32 106.64 -0.3% Revenue - Publishing* 19.02 23.12 -17.7% Enterprise ^ 77.64 78.49 -1.1% - Corporate 67.23 67.26 -0.1% - Institu
Slide 9: Contents: Operational Performance
Contents Financial Operational Organizational Performance Performance Updates Presented by: CL EDUCATE LIMITED 10
Slide 10: FY 2019 Operational Performance Consumer Business
FY 2019 Operational Performance Consumer Enterprise Business Business Presented by: CL EDUCATE LIMITED 11
Slide 11: Consumer Operating Metrics
Consumer Operating Metrics Consumer KPIs H1 FY20 H1 FY19 No. of Test - Prep Centers 182 188 No. of enrolled TP students 66,149 46,244 %age of online TP students 44.4% 30.2% No. of books sold 541,586 612,209 %age of books sold to Online distributors 24.6% 21.4% Rs. In Cr. Particulars H1 FY20 H1 FY19
Slide 12: Digital & Sachet Biz – Powering Growth
Key Highlights Digital & Sachet Biz – Powering Growth • Digital Biz grew 27% (Y-o-Y) • Sachet programs – pilots launched : 21,000+ Students • GATEflix : ~14,000+ products sold in H1 FY20 • AI / ML internships – Intel & AICTE; ~7,500 Students • Growing volumes/Market share, Higher EBITDA, Digital Biz
Slide 13: Publishing - Snapshot
Key Highlights Publishing - Snapshot • Overall market slowdown coupled with IND AS 115 has reduced the topline • Core BAU Biz: ▪ Overall job market indicating a slowdown including Technical Jobs ▪ GATE Test takers down ~36% from 2015 highs • Traditional challenges of the industry on Inventory, Retur
Slide 14: H1 FY 2020 Operational Performance Enterprise Business
H1 FY 2020 Operational Performance Consumer Enterprise Business Business Presented by: CL EDUCATE LIMITED 15
Slide 15: MeltingPot 2020
MeltingPot 2020 16
Slide 16: Enterprise Operating Metrics
Enterprise Operating Metrics Rs. In Cr. Particulars H1 FY20 H1 FY19 YoY (%) Enterprise 77.64 78.49 -1.1% Revenue^ - Corporate 67.23 67.26 -0.1% - Institutional 10.42 11.23 -7.2% ^Without Segmental Elimination ✓ Corporate: ➢ MeltingPot 2020 US edition – Good takeoff ➢ Economic slowdown posing challen
Slide 17: Contents: Organizational Updates
Contents Operational Financial Organizational Performance Performance Updates Presented by: CL EDUCATE LIMITED 18
Slide 18: Organizational Updates
Organizational Updates ✓ Merger: NCLT Filing done. Next hearing scheduled : 14th Nov. 2019 ✓ WAIN Fund: : Board has approved creation of a special vehicle to invest in new business opportunities Read More Presented by: CL EDUCATE LIMITED 19
Slide 19: Merger Scheme
Merger Scheme Pre-Merger Organization Structure Post-Merger Organization Structure Upward merger of CL Educate Limited all the subsidiaries with CL Educate 1A Wholly owned subsidiaries CL Educate CLEIS CL Media GKP Kestone AKMS Consumer Enterprise Segment Segment Composite Scheme: Merger of CLEIS, C
Slide 20: The 3-stage Value Proposition of Wain Fund
The 3-stage Value Proposition of Wain Fund Incubation Capital • 10-25K per Startup Incubation Studio • Part Contribution of CL CVV • 25-30 per year Univ Cloud Incubation • LPs: HNI & CCV • 1 Yr Accelerator Platform & Universities • Mentoring • $5Mn = 200 • Tech Startups • GTM • Focused on University
Slide 21: Thank You
Thank You For Investor Relations Queries Contact Arjun Wadhwa Amit Kanabar Chief Financial Officer Investor Relations CL Educate Ltd. CL Educate Ltd. Call: +91-98116 17289 Call: +91-88009 76683 E-mail: investors@careerlauncher.com E-mail: investors@careerlauncher.com arjun.wadhwa@careerlauncher.com
Slide 22: Annexures
Annexures 23
Slide 23: 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 24: 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 25: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 57.85% 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 w
Slide 26: 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 27: 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 28: 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 29: 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 30: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 31 Q2 FY20 Investor Presentation
Slide 31: 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 32 Q2 FY20 Inves
Slide 32: 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 33: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Sep 30, 2019) Key investors > 1.75% 14,165,678 Investors Shareholding % GPE (INDIA) LTD / GAJA TRUSTEE COMPANY PRIVATE LIMITED 8.45 Non- SUNDARAM MUTUAL FUND A/C 6.42 Institutional, 29.5% ARJUNA PTE LTD. 5.03 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.