Slide 1: Investor Presentation August 2011
Investor Presentation August 2011
Slide 2: About Educomp
About Educomp Educomp is the largest Education company in India and the only company spread across the entire Education Ecosystem Educomp currently works with ~26,500 schools and serves over 17.1 million learners and educators across the world Educomp owns India’s largest K12 content library w
Slide 3: Presence across entire Educational Life Cycle
Presence across entire Educational Life Cycle Online & Supplemental Education Online & Supplemental Initiatives Assessments & Tutoring E‐learning Admissions Counseling Services Test Preparation Platforms Advisory Services Higher Education Vocational Education Vocational Initiatives Higher & Digital
Slide 4: The only Education Ecosystem Company In India
The only Education Ecosystem Company In India School Learning Solutions Higher Learning Solutions Professional Development: Teacher Training in technology integration, pedagogy and best classroom practices. Trained 1.6million Smart Class: Teacher-led educational content solution that teachers ti
Slide 5: The Education opportunity in India is estimated at $40 billion
The Education opportunity in India is estimated at $40 billion India Education Overall Market estimated at $40bn growing at CAGR 16% FY’09 FY’14 K12 Schools $ 80bn $ 40bn Higher Education $ 39 billion $ 15 billion $ 20 billion $ 7 billion Books/ CD Roms/ $ 4 billion Stationery/ $ 7 billion $ 7 billi
Slide 6: Investment case for Educomp
Investment case for Educomp Educomp benefits from huge cross‐selling opportunities by monetizing students across the education life cycle from age 2 to age 25 years Flawless execution demonstrated across years Demonstrated innovation in products: SmartClass, Millennium Learning System, One‐on‐
Slide 7: Investment case for Educomp (cont'd)
Investment case for Educomp (cont’d) High growth: FY11* consolidated revenues Rs. 1351cr (~$300 million) growing at a 5yr CAGR of 87% FY11* consolidated EBITDA Rs. 539cr (~$120 million) growing at a 5yr CAGR of 81% FY11* consolidated PAT Rs. 337cr (~$75 million) growing at a 5yr CAGR of 85%
Slide 8: Multiple engines of growth & value creation
Multiples engines of growth & value creation Current Mkt Educomp Presence Current Penetration Market Position Value Creation Multimedia <9% (by schools) $1bn SmartClass No. 1 player High Content <3% (by classrooms) ICT $90m EduReach <2% No. 1 player Medium Pre Schools $1bn Roots to Wings, Eurokids <
Slide 9: Educomp – Business Description
Educomp – Business Description
Slide 10: SmartClass: Empowering Teaching, Inspiring Learning
SmartClass: Empowering Teaching, Inspiring Learning Covering 7202 schools and ~4.5 million students What is SmartClass How does it work • Solution designed to assist teachers & enhance • India’s largest Digital Content library of over students’ academic performance 16,000 modules of curriculum‐mappe
Slide 11: SmartClass – Class Transformation System
SmartClass – Class Transformation System Breaking barriers of what digital teaching and learning can be 11
Slide 12: SmartClass – Digital Teaching System
SmartClass – Digital Teaching System™ All equipment integrated as a single modular unit Robust Design for Indian 3 conditions: smartclass 4 DTS is specially designed to work in high ambient temperatures and dusty 1 conditions prevalent in most Indian classrooms, unlike 7 most other imported interact
Slide 13: SmartClass – Digital Teaching System
SmartClass – Digital Teaching System™ A large panel green chalk board seamlessly conjoined Short Throw with digital whiteboard as an integral part of the system. This allows the teacher to continue to use her favorite Overhead Projector 1 chalkboard for any additional instructions besides the 3 inte
Slide 14: First company in the world to launch a full suite of 3D Stereoscopic product
First company in the world to launch a full suite of 3D Stereoscopic product for schools Educomp SmartClass 3D Lab provides a unique and highly immersive experience to view curriculum concepts in life like format in 3D 3D SmartLab is fully equipped with stereoscopic 3D projection system, 3D elec
Slide 15: EduReach: Partnering with Govt. to Bridge the Digital Divide
EduReach: Partnering with Govt. to Bridge the Digital Divide Covering 10,572 schools and ~5.8 million students Overview of ICT Solution • Educomp participates in government initiatives in a ‘Public Private Partnership’ model to IT enable ~1,000,000 government schools in India • Educomp sets up Compu
Slide 16: Pre-Schools – India's largest Pre-School company
Pre-Schools – India’s largest Pre-School company with ~840 Pre-Schools First structured and process driven IP in the Eurokids: India’s leading chain of Pre‐Schools fragmented space for early childhood education (2 to 4 years) 609 pre‐schools franchisee sign‐ups in the country catering to over
Slide 17: Creating core K12 Schools capacity
Creating core K12 Schools capacity Market Scenario Educomp’s Goal Shortage of 200,000 schools in the country Educomp aspires to set up 150 schools in the country Over 100million school‐age children not attending school Currently 59 schools under operation High birth rates in the region, le
Slide 18: Characteristics of K12 Schools business
Characteristics of K12 Schools business Important characteristics of K12 Schools business Assured annuity type revenues till perpetuity and lock‐in of customers for 14 years (2 years in Pre‐School and 12 years in High School) High margins in steady state High return on capital employed upwards
Slide 19: Creating high-quality core K12 Schools capacity
Creating high‐quality core K12 Schools capacity The Millennium School, Lucknow The Millennium School, Mohali PSBB Learning Leadership Academy, Bangalore The Millennium School, Patiala The Millennium School, Noida The Millennium School, Panipat The Millennium School, Amritsar The Millennium School, K
Slide 20: Creating high-quality core K12 Schools capacity
Creating high‐quality core K12 Schools capacity Takshila School, Hoshiarpur PSBB Millennium School, Coimbatore Mussoorie International School The Millennium School, Meerut The Millennium School, Nagpur Le Mont High, Lavasa Chiranjiv Bharti School, Palam Vihar, Gurgaon PSBB Millennium School, Chennai
Slide 21: Creating high-quality core K12 Schools capacity
Creating high‐quality core K12 Schools capacity Takshila School, Ahmednagar Chiranjiv Bharti School, Sushant Lok, Gurgaon Millennium School, Bhatinda The Millennium School, Indore Universal Academy, Dehradun PSBB Millennium School, GST Road, Chennai Shriram Millennium School, Noida Millennium School
Slide 22: Pan India presence
Pan India presence Current Location of Schools (Visibility* of 86 Schools, 59 currently Operational) Hoshiarpur Firozpur Jalandhar Patiala Ludhiana Bhatinda Amritsar Kundli Mohali Narnaul Meerut Dehradun Barnala Noida Kashipur Musoorie Ambala Bazpur Panipat Faridabad Gadarpur Ghaziabad Nai Nagla Kur
Slide 23: Raffles JV – Building International Quality Higher Education Capacity
Raffles JV – Building International Quality Higher Education Capacity Raffles JV: 7 Raffles Millennium International Design colleges currently operational Admissions started for Engineering & PGDM programs in AICTE approved JRE campus in Greater Noida Academic sessions to begin August 2011 onw
Slide 24: JV with Pearson for opportunities in Vocational Education
JV with Pearson for opportunities in Vocational Education An Educomp Pearson Joint Venture Retail Vocational Channel VSAT based Proposition: Industry Retail network of teaching/learning model ready talent Vocational Training Network of 150 centers Distribution Model: Inside centers operati
Slide 25: Educomp Supplemental - A unique Supplemental Education platform
Educomp Supplemental - A unique Supplemental Education platform Assessments Tutoring E‐learning Admissions & Counseling Services Test Preparation Platforms Advisory Services 25
Slide 26: India Education Fund – Partnership with Great Lakes Institute of Management
India Education Fund – Partnership with Great Lakes Institute of Management India Education Fund made an investment in Beacon Learning Private Limited (Beacon) Beacon is a management and services provider for higher education institutions, providing a range of specialized services designed to im
Slide 27: New Joint Venture with Zeebo (a Qualcomm funded company)
New Joint Venture with Zeebo (a Qualcomm funded company) Formed Joint Venture with Zeebo Inc., a Qualcomm funded company, to launch First Wireless Educational Platform for children in India Zeebo India, a JV of Zeebo Inc., to expand reach of digital technology and interactive content in Indian h
Slide 28: Content Leadership in North America & South East Asia
Content Leadership in North America & South East Asia Premier provider of Web‐ delivered K12 curriculum Leading K12 education and assessments company in Singapore Digital Learning Catering to over 230 Environment products educational Reach across 7,700 institutions across schools, 1550 sch
Slide 29: Financials Snapshot (Consolidated basis)
Financials Snapshot (Consolidated basis) Revenue Growth EBITDA Growth Rs.Cr Rs.Cr 1,351 539 1,400 600 481 1,200 1,040 5 Yr CAGR 87% 500 5 Yr CAGR 81% 1,000 400 634 290 800 300 600 286 200 125 400 50 110 200 56 100 26 0 0 FY06 FY07 FY08 FY09 FY10 FY11 FY06 FY07 FY08 FY09 FY10 FY11 PAT Growth EBITDA &
Slide 30: Q1 FY12 – Consolidated Financials
Q1 FY12 – Consolidated Financials Consolidated Financials Q1 FY12 Q1 FY11 YoY Rs Cr Rs Cr % Income Sales & Servic e inc ome 292.4 227.9 28% Other inc ome 6.7 10.0 Total Income 299.2 237.9 26% Expenditure Cost of goods sold 58.3 68.7 Personnel expenses 72.9 51.5 Administration and other expenses 55.8
Slide 31: Q1 FY12 – Standalone Financials
Q1 FY12 – Standalone Financials Standalone Financials Q1 FY12 Q1 FY11 YoY Rs Cr Rs Cr % Income Sales & Service income 185.7 165.8 12% Other income 7.4 7.4 Total Income 193.1 173.2 12% Expenditure Cost of goods sold 45.7 63.6 Personnel expenses 37.9 26.7 Administration and other expenses 20.7 17.9 Fi
Slide 32: Q1FY12 - Segmental Revenue & EBIT (Consolidated)
Q1FY12 ‐ Segmental Revenue & EBIT (Consolidated) Revenue by Segments Q1 FY12 Q1 FY11 YoY Rs Cr Rs Cr % School Learning Solutions 180.7 159.1 14% K12 Schools 44.0 30.5 44% Higher Learning Solutions 23.6 9.0 163% Online, Supplemental & Global 44.2 29.3 51% Total 292.4 227.9 28% EBIT by Segments Q1 FY1
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet As at 30th Jun 2011 As at 31st Mar 2011 Sources of funds Rs Cr Rs Cr Shareholders' funds Share capital 19.2 19.1 Reserves and surplus 2,186.3 2,138.8 ESOP outstanding account 16.2 20.6 Minority interest 240.2 236.5 Loan funds 1,618.3 1,437.3 Defe
Slide 34: Shareholding Pattern – As on June 30, 2011
Shareholding Pattern – As on June 30, 2011 Equity Shares Outstanding‐95,967,980 Public, 8.3% Others, 1.2% Body Corporate, 3.4% Promoters, 49.6% Foreign Institutional Investors/ Foreign Financial Institutions, 34.9% FIs/ Banks/ MFs, 2.6% Company has sub‐divided each of the existing Equity Shares of t
Slide 35: Contact Us
Contact Us For any Investor Relations queries please contact: Ms. Sangeeta Gulati, CFO Educomp Solutions Limited Educomp Towers, 514, Udyog Vihar Phase III Gurgaon – 122 001, Haryana Email: investor.relations@educomp.com Ph: 0124 - 4529000 35