Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q3 FY2019 Earnings Presentation
32 slides from Cl Educate's earnings presentation, February 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 4 educate Financial Operational Performance Performance Presented by: CL EDUCATE LIMITED °
Slide 6: Key Initiatives
Key Initiatives C L educate TCS iON: Training & Placement Melting Pot 2020: 2018 Edition = ccQi = 250+ Participants = CL only official TCS Partner = Start-up Zone 30 shortlisted from 80+ = Adding jobs & internships as = YIF, 14 shortlisted from 50+ additional Business lines Presented by:
Slide 7: TCS-iON Partnership
TCS-ION Partnership: CL educate Online Assessment platform * 130+ Corporate partners * 5000+ job offers * Internship Pilot Common Corporate Qualifier Test (CCQT): Evaluate & Benchmark aspiring job-seekers * IInd /lllrd / Vth Yr Students + Fresh Graduates 2 Stage test - Common Test & Video Interview
Slide 8: Melting Pot
MELTINGPOT
Slide 9: Contents
Contents 4 educate Gk begs BY, , Key Operational Initiatives Performance Presented by: CL EDUCATE LIMITED °
Slide 10: Consolidated Financial Results - Brief Snapshot
Consolidated Financial Results - Brief Snapshot wd L EBITDA = 33.2 Cr- YTD Dec 18 Cc = 20.7 Cr- YTD Dec 17 Net Profit = 17.7 Cr- YTD Dec 18 =7.5Cr -YTD Dec 17 ) EBITDA Margin = 12.4% - YTD Dec 18 J "9.3% - YTD Dec 17 Revenue 4 ®) = 267.1 Cr- YTD Dec 18 = 222.2 Cr- YTD Dec 17 Presented by: CL EDUCATE
Slide 11: YTD Q3 FY19 Consolidated Results
Rs. In Lakhs. YTD Q3 FY19 YTD Q3 FY18 Y-o-Y (%) Q3 FY19 Q3 FY18 Y-o-Y (%) Revenue from operations 25,838.4 20,940.2 23.4% 6,936.9 6,486.6 6.9% Other income 866.8 1,276.9 -32.1% 258.9 466.3 -44.5% Total Income 26,705.3 22,217.1 20.2% 7,195.8 6,952.9 3.5% Total expenses 24,568.4 21,290.0 15.4% 6,689.2
Slide 12: YTD Q3 & Q3 FY 2019 Segmental Metrics
YTD Q3 & Q3 FY 2019 Segmental Metrics educa Rs. In Cr. Particulars YTD Q3FY19 YTD Q3FY18 YoY (%) Total Revenue from Operations 258.4 209.4 23.4% Consumer * 170.2 143.7 ( “18.4% | y - Test Prep 140.0 116.7 19.9% 3 - Publishing 30.2 27.0 11.8% “ Enterprise * 113.6 87.3 ( 30.1% 1 - Corporate 96.2 75.5
Slide 13: Contents
CONTENTS iw] (iT educate Key Financial Initiatives Performance Presented by: CL EDUCATE LIMITED **
Slide 14: YTD Q3 FY 2019 Operational Performance: Enterprise Business
YTD Q3 FY 2019 Operational Performance ied C educa ad o—. m8 Enterprise Business Presented by: CLEDUCATE LIMITED ‘4
Slide 15: Rs. In Cr. #Includes Enrollments from ICE-GATE Centers. ^ Adjusted for TCS Mock CLAT
Rs. In Cr. #Includes Enrollments from ICE-GATE Centers. ^ Adjusted for TCS Mock CLAT & discontinued product lines 15
Slide 16: Key Highlights
Key Highlights / e —_ 7" educate Test Prep Janiorenaineer Half ale + New Segments (SP, CA-CS, IAS, GATE) contributed > Rs. 22 Cr to topline Giriéi CBT & TT (vs ~5 Cr Dec 17) Mechanical Engineering Civil Engineering on * Digital & Test Series continues to show good growth * Competition intensifying i
Slide 17: YTD Q3 FY 2019 Operational Performance: Consumer Business
i >) Z C YTD Q3 FY 2019 Operational Performance IL educa Se XK | Consumer Business Presented by: CLEDUCATE LIMITED *’
Slide 18: Enterprise Operating Metrics
Enterprise Operating Metrics LS Particulars YTD Q3FY19 YTD Q3FY18 q Enterprise 113.6 87.3 o 5 - Corporate 96.2 75.5 a - Institutional 17.4 11.8 47.3% Without Segmental Elimination Presented by: CL EDUCATE LIMITED *°
Slide 19: Enterprise Operating Metrics
. . . >) Z ( 5 Enterprise Operating Metrics Ww : YTD Q3FY19 YTD Q3FY18 z . Revenue . Revenue 5 #Clients (pe incr) * Clients (pe incr) 5 Media 90 12.0 95 7.0 5 Research Incubation 41 3.0 6 2.6 Total 101 15.0 104 9.6 YTD Q3FY19 YTD Q3FY18 = # Clients Revenue # Clients Revenue 3 (Rs. in Cr.) (Rs. in Cr
Slide 20: Thank You
cl Thank — = 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@careerlaunche
Slide 21: Annexures
Annexures 21
Slide 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 29 Q3FY19 Investor Presentation
Slide 30: 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 30 Q3FY19 Invest
Slide 31: 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 32: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Dec 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 6.24 28.5% ARJUNA PTE LTD. 4.39 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.19