Aptech Limited · NSE:APTECHT
Aptech — Investor Presentation (March 2010)
35 slides from Aptech's investor presentation, March 2010
Slide 1: Aptech Limited Investor Presentation March 2010
APTECH LIMITED INVESTOR PRESENTATION March 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward‐looking statements. The risks and unc
Slide 3: Strategic Direction
STRATEGIC DIRECTION 3
Slide 4: Evolution As A Global Career Solutions Brand
Evolution As A Global Career Brand 1992 – 2001 – 2005 2005 – 2009 2001 Dot Learning Limited Solutions com success bust Training Solutions Exponential in non- Invest in existing growth in Slump retail businesses and launch business – Y2K new retail brands boom in IT Diversification - busines indust s
Slide 5: Retail Growth Strategy Distilled
Retail Growth Strategy Distilled Replicate proven business model in IT education across brands Immense potential for profitable growth through newer brands, domestic scaling and international expansion 5
Slide 6: Competition from Formal Sector
Recognitio Competition from Formal Sector Recognitio Recognitio n n n Job Oriented Job Oriented Job Oriented Skills Opportunity In Skills Maturity & Scale SkillsUniversity Offer Emerging Service Achieved by User Aligned Degree Industries Service Industries Courses • Benefits of a recognized degree •
Slide 7: Dominating Position in Animation
Dominating Position in Animation “Pincer” Expand strategy product Anim with two offering brands ation across all Domination value points Threat from Lead and New Players Block influence entry of market potential developme threats Formal nt Sector Other Career Options Acquired MAAC’s Education Busine
Slide 8: Retail & Institutional Inter-play
Retail & Institutional Inter-play Retail and Similar Offerings & Institutional Competency Set Business Inter-play Exposure to Retail Institutio latest Learnin g nal Solutio competency ns needs of Corporates Traini ng Soluti Use of retail ons infrastructure for institutional delivery Rub-off of be
Slide 9: Multi-vocation Career Solutions
Multi-vocation Career Solutions 9
Slide 10: Pan-Continental Presence
Pan-Continental Presence CIS, 23 China, Middle East,270 Africa, 24 India, 608 21 APAC, 65 LA, 8 • 1000+ centers in 40+ countries • Leadership in China, Vietnam & Nigeria • ACCP, AMSP, AAASP, career focus • IWP – Students from Korea, Japan, Nigeria, Maldives • Credit transfer and Top up
Slide 11: China Operations Restructured
China Operations Restructured Started in Jan 2000 as a 50-50 JV between Aptech and Beida Jadebird IT Co. Ltd. (Affiliate of Beijing Univ) Restructuring in Mar 2009 22.4% stake in BJB Career Education Company Limited, holding company of Beida Jadebird IT Co. Ltd. Stake in larger business spre
Slide 12: Growth Drivers
GROWTH DRIVERS 1 2
Slide 13: Focused Play on Career Segment
Focused Play on Career Segment Current Indian market size is US$ 1.55 billion 1 * Focused on services sector ¦¦ + Focused on 1 Takeoff – Private Initiatives in Indian Education, CLSA Asia-Pacific Markets, 14th manufacturing sector March 2008 1 3
Slide 14: Growing Addressable Market
Growing Addressable Market Population Literate Urban 15 - 20 Xth – XIIth Education Market (in $ billion) 1176 776 300 45 14 2010 2020 In millions Bottom Up 2010 Growth 2020 Top Down Approach Approach 14 26 X – XII Addressable Market million million Population CAGR = 1% as % of Education Education Ne
Slide 15: Potential in Existing & New Verticals
Potential in Existing & New Verticals Potenti Service al New Industr Vertical ies s US$150 Size US$72 billion US$12 billion US$14 billion billion CAGR 11% 11% 15% 8.2% (next 3-4 years) High IT services, Animation, Tourism, Growth Enterprise Gaming, Airports Hospitality Segments Networking Internet D
Slide 16: Replicating Success Globally
Replicating Success Globally Aptech in BRIC and N-11 Emerging Economies Banglad Indones Information Brazil China Russia esh Egypt ia Iran GDP (in US$ billion) 1,572.84 4,401.61 1,676.59 81.94 162.16 511.77 344.82 % GDP Growth 5.0% 9.8% 3.0% 6.1% 4.8% 5.5% 2.2% (2010F) Year of Entry 2009 2000 1999 19
Slide 17: Institutional Business Growth
Institutional Business Growth Academics IT/ITES BFSI PSU Catalog Institution al Market for Outsource d Assessmen t Services -Semester-end -Recruitment -IRDA -Recruitment -Microsoft (2009) Current Market -CAT 2009 -Skill -Adobe… certification -Entrance -Recruitment -Skill in INR crore Untapped Un
Slide 18: Business Model & Competitive Advantages
BUSINESS MODEL & COMPETITIVE ADVANTAGES 1 8
Slide 19: Value Chain & Business Model
Value Chain & Business Model VALUE CHAIN 4 PILLARS OF BUSINESS MODEL Operating De- Predictabi Asset Light Leverage risking lity 1 9
Slide 20: Operating Leverage in Value Chain
Operating Leverage in Value Chain Core All brands also share Robust content engine competence in resources for for course upgrades instruction managing delivery and new course launch mode and infrastructure, across all brands pedagogy logistics & QA design 2 0
Slide 21: Asset Light in Value Chain
Asset Light in Value Chain 97% centers are franchised FRANCHISEE International expansion has same format, but different terms 2 1
Slide 22: De-risking in Value Chain
De-risking in Value Chain Offerings across sectors Distinct careers software Varying hardware personality traits Invest in multiple brands Targeted communication Ease of differentiation Independent network for All brands except AVALON have each brand aids brand international presence, hence creation
Slide 23: Predictability in Value Chain
Predictability in Value Chain Flash Presentati PORTAL ons infrastructure for 1 Instructo r Led Stude controlled processes Training nt Blend 2 Guide Digital Computer Based ed Training Learni ng 3 Web Based Practi ce Training Labs Course Assessmen Objective-based course ts delivery 2 3
Slide 24: Competitive Advantages
Competitive Advantages Quickly develop and deploy new/upgraded courses Swift introduction of Airport Management and Ground Staff courses Manage large network of franchisees Only Indian education company with nearly 1000 franchisee centers Scale multiple brands Only Indian education compa
Slide 25: Financial & Operating Results
FINANCIAL & OPERATING RESULTS 2 5
Slide 26: Consolidated P&L Statement
Consolidated P&L Statement* For Period 2009* 2008* % Y-o-Y Operating Income 129.63 155.64 -16.7% Other Income 0.25 4.36 -94.3% Total Income 129.88 160.00 -18.8% Less: Operating 105.36 148.27 -28.9% Expenses Less: Interest (Net) (0.27) 0.19 -245.2% Less: Depreciation 12.86 15.85 -18.9% PBT (before 11
Slide 27: Balance Sheet
Balance Sheet Date 31/1 31/1 31/12/0 Capital Retai Non- Corpor Total 2/09* 2/08 8– Employed l retai ate China JV (2009) l Shareholder’s Funds 208.1 255.7 130.77 Net Fixed 12.05 2.47 27.62 42.14 7 7 Assets Share Capital 46.55 46.50 2.21 Investments 108.13 108.13 Loan Funds 24.10 18.94 - Current Asset
Slide 28: Cash Flow
Cash Flow* (A) Cash Flow From Operating 2009 (B) Cash Flow From Investing 2009* Activities * Activities Net Profit/(Loss) Before Tax 13.5 Purchase of Fixed Assets (5.31) 9 Sale of Fixed Assets 0.38 Employee Stock Compensation Net Charge (2.18) Purchase of Investment (108.1 Depreciation and Amortizat
Slide 29: Segment Results
Segment Results* 2008 2009 * Consolidated excluding China ¦¦ All figures in INR crore 2 9
Slide 30: Brand & Region-wise Revenue
Brand & Region-wise Revenue* 2009 2009 2007 2007 * Consolidated excluding China 3 0
Slide 31: Brand & Region-wise Network
Brand & Region-wise Network 2009 2009 2007 2007 3 1
Slide 32: Closing
CLOSING 3 2
Slide 33: Key Takeaways
Key Takeaways Focussed player with a strong pedigree in a high growth sector Unmatched global reach Capability to penetrate new and emerging markets Presence across multiple industry sectors De-risked, predictable, leveraged and asset-light business model 3 3
Slide 34: Thank You
THANK YOU 3 4
Slide 35: About Aptech
About Aptech Aptech commenced its IT education & training business in 1986 and has trained over 5 million students – globally. Aptech is an ISO 9001:2000 organization and the first IT Training and Education company to get this certification for Education Support Services in 1993. Aptech is a Learnin