Navneet Education Limited · NSE:NAVNETEDUL
Navneet Education — Q3 FY20 Earnings Presentation
37 slides from Navneet Education's earnings presentation, Jan 31, 2020
Slide 1: Submission letter to National Stock Exchange of India
Knowledge is wealth NEL/NSE/14/2020 Date:31~Januar~2020 The Secretary National Stock Exchange of India Ltd. Exchange Plaza, s" Floor, Plot No. C/l, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051. Dear Sirs, Ref: Scrip Code - NAVNETEDUL Sub: Submission of presentation shared with ana
Slide 2: A Premium Education House - Investor Presentation
A Premium Education Investor Presentation House As On 31st December 2019
Slide 3: Table Of Contents
1 Company Overview 03 2 Navneet Group Business Insights 08 3 E-Learning Business Overview 13 Table Of 4 Indiannica Learning 15 Contents 5 K12 – School Management Company 16 6 Industry Insights 18 7 Financial Performance 24 8 Shareholders Information 37
Slide 4: Company Overview
COMPANY OVERVIEW
Slide 5: About Navneet
ABOUT NAVNEET Navneet Education Limited, founded by the Gala Family, is an educational syllabus-based supplementary content provider in Print & Digital medium and a manufacturer of Scholastic Paper stationery for domestic and international markets. New range of text books for students of CBSE and IC
Slide 6: Vision, Mission & Core Values
VISION, MISSION & CORE VALUES Mission Vision Core Values To provide the highest quality of To provide students with best quality Excellence educational products and services supplementary study material and to customers in the language / curriculum text books at affordable Proactive medium of their
Slide 7: 6 Decades of Navneet – A Snapshot
6 DECADES OF NAVNEET – A SNAPSHOT Achieved Milestone Turnover of ₹1,000 Scholastic Stationery crores, Introduction of premium stationery New Stationery brand products under YOUVA launched, brand “HQ” Acquired Indiannica Learning 1993 Pvt. Ltd. (earlier Encyclopaedia Britannica (India) Pvt. Ltd.) Chi
Slide 8: Key Facts
KEY FACTS 25,000+ 2 No. of State Board Presence in States 35 Mn+ Schools visited for Supplementary Students using annually Books Navneet products 8,500+ CBSE / ICSE Schools visited 5,500+ annually 600+ No. of Titles 300+ SKU’s in Stationery No. of Authors 48,000+ 3,000+ Presence in Retail 25+ 350+ N
Slide 9: Navneet Group Business
NAVNEET GROUP BUSINESS
Slide 10: Navneet Group Business Portfolio
NAVNEET GROUP BUSINESS PORTFOLIO Curriculum (Maharashtra & Gujarat) Supplementary Books Non Curriculum PRINT (Pan-India & Exports) Text – Books (ICSE / CBSE) CONTENT E-LEARNING SSC (Adaptive (Maharashtra Learning) & Gujarat) B2B & B2C Domestic (Pan - India) PAPER STATIONERY School Management Exports
Slide 11: Navneet's Presence
NAVNEET’S PRESENCE Supplementary Books Maharashtra & Gujarat Digital Presence Maharashtra & Gujarat Orchid International Mumbai, Pune, Bengaluru, Hyderabad and Kolkata Text Books Andaman & Nicobar, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Prade
Slide 12: Global Presence
GLOBAL PRESENCE 10 11 9 12 1 14 13 15 2 16 5 3 25 6 4 8 7 17 18 21 19 20 22 23 24 1. Canada 6. Puerto Rico 11. Sweden 16. Turkey 21. Zambia 2. U.S. 7. Costa Rica 12. Denmark 17. Ethiopia 22. Madagascar 3. Mexico 8. Panama 13. Germany 18. Kenya 23. South Africa 4. Honduras 9. Ireland 14. U.K. 19. Rwa
Slide 13: Growth Drivers for Navneet
GROWTH DRIVERS FOR NAVNEET Content Stationery Syllabus CBSE Affiliated CBSE Pattern Domestic Exports change Schools Schools Stationery Stationery Syllabus Change in State With the rapid growth of Many English Medium Increasing number of On account of Quality, Board (SSC) Schools is a CBSE schools in
Slide 14: eSense Learning
eSENSE LEARNING 4,000+ 1,20,000+ 150+ 20,000+ Team of authors, Digital Classrooms using Students learning Teachers trained Illustrators and Top Class through Top Class animators 350+ 15,000+ 2,00,000+ Hours of digital content Videos MCQs Earnings Presentation 13
Slide 15: Growth Drivers - E-Learning Education
GROWTH DRIVERS - E-LEARNING EDUCATION EVOLVING BUSINESS MODEL : RISING DISPOSABLE INCOME : Peer to peer learning among students to gain pace also value-added services such as internships and live Disposable income of the country projects along with regular courses to provide hands expected to grow 5
Slide 16: Indiannica Learning (Formerly Encyclopaedia Britannica India)
INDIANNICA LEARNING (Formerly ENCYCLOPAEDIA BRITANNICA INDIA) 1 3 CBSE, ICSE, SSB 220+ 8,500+ Schools Pan-India School Presence 2 4 SCHOOLS VISITED CURRICULUM LOCATIONS EMPLOYEES ANNUALLY TARGET REACH 25,000+ CBSE / ICSE & 20,000+ SSC Schools o Encyclopedia Britannica India (“EB India”) is one of In
Slide 17: K12 Techno Services Shareholding
K12 TECHNO SERVICES Over the last few years, quality Direct Education is in great demand in the Country and hence seen a sudden growth. ORCHIDS – THE INTERNATIONAL SCHOOL 25 5 24,000 34,000 No. of Schools + Locations + (CBSE/ICSE) No. of Capacity Students SHAREHOLDING Locations No. of Schools Bangal
Slide 18: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY o 21,000+ children benefited in 117 classrooms digitalized in o Three charitable hospitals established in Mumbai under the 87 schools in 18 districts through software learning program name Navneet Hospitals installation and hardware equipment o Free books & stationery
Slide 19: Industry Insights
INDUSTRY INSIGHTS
Slide 20: Industry Overview
INDUSTRY OVERVIEW Population Age 0-14 Age 15-59 Employment 1.34 1.39 415 435 845 890 465 534 Bn Bn Mn Mn Mn Mn Mn Mn 2017 2022 2017 2022 2017 2022 2017 2022 Expenditure on Education as a % of GDP 7.1 6.7 6.0 6.0 5.7 5.3 5.3 4.9 4.9 4.1 4.1 3.3 2.9 Finalnad New Zeland Brazil South Africa UK Australia
Slide 21: Industry Overview K-12 Segments
INDUSTRY OVERVIEW K-12 Vocational Education in Manufacturing & Services Higher Education K-12 (School) SEGMENTS Textbooks, e- learning & Allied Services Source: Technopak Analysis Presence in both Schooling & Ancillary Segments Earnings Presentation 20
Slide 22: Industry Insights – School System
INDUSTRY INSIGHTS – SCHOOL SYSTEM NCERT GOVERNMENT OF INDIA MINISTRY OF EDUCATION (National Council of Educational Research and Training) 96 2% 1% 1% % SCERT CBSE ICSE OTHERS State Council of Educational Research Central Board of Indian Certificate for IB and Training Secondary Education Secondary E
Slide 23: India's K-12 Scenario
INDIA’S K-12 SCENARIO No. of Government : 1.1 Mn schools Private : 0.4 Mn 1.5 Mn Additional Capacity Required for Students No. of Students 35 Mn Government : 150 Mn 260 Private : 110 Mn Mn Additional Requirement Additional Resources USD Annual of Teachers Government : 10 Mn Intake 18 Mn Private : 8
Slide 24: Industry Overview – E-Learning
INDUSTRY OVERVIEW – E-Learning India’s Online Education market size to grow by USD 1.96 billion in 2021 It is expected that Online Education sector will witness a growth of 44% CAGR. Userbase will rise to 9.6 million by 2021 The Growth in the market size will be backed by an increase in the number o
Slide 25: Financial Performance Q3FY20
FINANCIAL PERFORMANCE Q3FY20
Slide 26: Segmental Review - Quarterly
SEGMENTAL REVIEW - QUARTERLY (INR in Lacs) Total Revenue EBITDA PBT 1,865 2,819 64 % 51 % 1,134 7 % 1,865 18,455 19,882 Q3FY 19 Q3FY 20 Q3FY 19 Q3FY 20 Q3FY 19 Q3FY 20 Publications Stationery - Domestic Stationery - Exports 19 % 11 % Segmental Revenue 78 % Q3 FY20 8304 3014 4433 Q3 FY19 10312 3392 7
Slide 27: Segmental Review – 9 months
SEGMENTAL REVIEW – 9 months (INR in Lacs) Total Revenue EBITDA PBT 1,25,705 30,786 27,272 11 % 9% 11 % 1,13,22 27,665 25,106 2 9m of FY19 9m of FY20 9m of FY19 9m of FY20 9m of FY19 9m of FY20 Publications Stationery - Domestic Stationery - Exports -1 % Segmental Revenue 0.5 % 41 % 9m of FY20 64287
Slide 28: Standalone Financial Results – Q3 & YTD ended Dec'19
STANDALONE FINANCIAL RESULTS – Q3 & YTD ended Dec’19 of FY 20 (INR in Lacs) Quarter ended Dec ‘19 YTD ended Dec ‘19 (9 months) Particulars Q3 FY20 % of Q3 FY19 % of YTD- FY20 % of YTD FY19 % of (Unaudited) Revenue (Unaudited) Revenue (Unaudited) Revenue (Unaudited) Revenue Income from Operations 19,
Slide 29: Receivables & Inventory Days
RECEIVABLES & INVENTORY DAYS 312 188 164 157 156 131 117 122 99 104 100 81 69 62 59 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Receivable Days FG Inventory Days RM Inventory Days Earnings Presentation 28
Slide 30: Snapshot of Consolidated Financial Results
SNAPSHOT OF CONSOLIDATED FINANCIAL RESULTS (INR in Lacs) Revenue from Ops Summary of EBITDA Summary of PAT 9M of FY'20 9M of FY'19 9M of FY'20 9M of FY'19 9M of FY'20 9M of FY'19 NEL 1,23,458 1,11,501 30,785 27,665 20,317 16,275 eSense 1,515 2,011 (168) 545 (553) 261 Indiannica 1,343 878 (2,294) (4,
Slide 31: Outlook on Business Segments
OUTLOOK ON BUSINESS SEGMENTS Publications eSense (E-Learning) Stationery & Exports Publication Business for current year B2B sales expected to grow with more Focus sales and branding efforts on shall have marginal growth on account schools opting for digital learning. selected States to maximize imp
Slide 32: Outlook on Business
OUTLOOK ON BUSINESS As of March 2019, the Government of India is taking the initiative to encourage colleges to offer online courses in rural areas to ensure education for all 3 With the tutoring in the schooling As of December 2018, internet segment expected to grow from US$ 8 penetration in India
Slide 33: Digitization in Education
DIGITIZATION IN EDUCATION Educational system is getting influenced due to the digitalization era. The educational system is going through rapid transformation due to which, the children of this generation are be limited to traditional textbooks. “Digital India” aims to bridge this gap by connecting
Slide 34: Standalone Financials (Last 5 Years)
STANDALONE FINANCIALS (LAST 5 YEARS) (I in Lakh) Total Revenue & Growth (%) EBITDA & Margins (%) CAGR : 9.4 % CAGR : 6.8 % 16.8% 18.8% 24.4% 24.7% 11.4% 22.2% 1,7 0,000 30. 0% 23.7% 40, 000 26. 0% 4.3% 22.7% 20. 0% -1.1% 1,37,992 24. 0% 1,5 0,000 30,703 10. 0% 35, 000 1,16,145 27,444 22. 0% 1,11,453
Slide 35: Profitability & Ownership Performance
PROFITABILITY & OWNERSHIP PERFORMANCE (I in Lakh) ROCE % Price to Earnings 25.00 1,40,000 33.30% 28.50% 36. 00% 31.30% 30.80% 30.50% 23.80 21.60 20.00 1,20,000 31. 00% 1,00,000 82,358 88,560 18.25 73,972 15.00 63,398 63604 15.80 26. 00% 80,000 60,000 10.00 14.20 21. 00% 40,000 5.00 16. 00% 20,000 0
Slide 36: Shareholding Pattern and Market Cap
SHAREHOLDING PATTERN AND MARKET CAP (Rin Mn) Shareholding as at September 30, 2019 60,000 50,000 16.21 40,000 37,950 34,087 4.37 25,587 30,000 23,640 20,110 17.57 20,000 61.85 10,000 0 FY15 FY16 FY17 FY18 FY19 Promoter & Promoter Group Domestic Institutional Investors Foreign Institutional Investors
Slide 37: Contact Details
CONTACT DETAILS NAVNEET EDUCATION LIMITED Corporate Identity Number L22200MH1984PLC034055 Corporate Office & Regd. Office : Navneet Education Limited, Navneet Bhavan, Bhavani Shankar Road, Dadar-(West), Mumbai – 400028. Website: www.navneet.com E-mail Id: investors@navneet.com Investor Relations Con