Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q3 FY2018 Earnings Presentation
34 slides from Cl Educate's earnings presentation, Feb 5, 2018
Slide 1: Q3FY18 Investor Presentation
Q3FY18 Investor Presentation February 5, 2018 Q2FY18 Investor BSE: 540403 Presentation | NSE: CLEDUCATE
Slide 2: 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 3: Glossary
Glossary Bank Banking PO BP Business Partner (Franchisee) BPL Below Poverty Line CA Chartered Accountancy CDC Career Development Center CFE Center for Future Employability Civils Civil Services CRT Campus Recruitment Training GATE Graduate Aptitude Test in Engineering IE International Education IIT
Slide 4: Contents
Contents Q3FY18 Financial Performance Q3FY18 Operational Performance Corporate Summary 4 Q3FY18 Investor Presentation
Slide 5: Key Financial Highlights
Financial Performance Key Financial Highlights Consolidated Revenue (in Crs) Q1 FY Q2 FY 6M YTD Q3 FY 9M YTD FY 2017 73.7 78.1 151.8 50.7 202.5 FY 2018 75.4 77.2 152.6 69.5 222.2 Growth (%) 2.3% -1.0% 0.6% 37.0% 9.7% Quarterly Revenue Distribution Q1 Q2 Q3 Q4 FY 2016 27% 29% 20% 24% FY 2017 29% 28%
Slide 6: Financial Summary
Q3 FY 2018 Results Financial Summary 31-Dec-16 31-Dec-17 YoY 31-Dec-17 YoY 31-Dec-16 31-Dec-17 YoY 31-Dec-17 YoY Particulars Q3 FY17 Q3 FY18 Growth Q3 FY18* Growth* 9M FY17 9M FY18 Growth 9M FY18* Growth* Revenue Total Income 50.7 69.5 37.0% 68.1 34.4% 202.5 222.2 9.7% 217.7 7.5% (INR Cr) Net Revenu
Slide 7: Segmental Metrics
Q3 FY 2018 Results Review Segmental Metrics Particulars Q3FY18 Q3FY17 YoY (%) 9MFY18 9MFY17 YoY (%) Total Revenue 64.9 48.5 33.8% 209.4 195.0 7.4% Consumer 39.8 29.1 36.8% 143.7 132.5 8.4% Revenue (INR Crore) - Test Prep 32.5 25.5 27.4% 116.7 104.3 12.0% - Publishing 7.3 3.6 103.2% 27.0 28.3 -4.6% E
Slide 8: Contents
Contents Q3FY18 Financial Performance Q3FY18 Operational Performance Corporate Summary 8 Q3FY18 Investor Presentation
Slide 9: Q3FY18 Operational Performance
Q3FY18 Operational Performance Consumer Business Enterprise Business 9 Q3FY18 Investor Presentation
Slide 10: Consumer Operating Metrics
Consumer Business Performance Consumer Operating Metrics Particulars Q3FY18 Q3FY17 YoY (%) 9MFY18 9MFY17 YoY (%) Consumer 39.8 29.1 36.8% 143.7 132.5 8.4% (INR Crore) Revenue - Test Prep 32.5 25.5 27.4% 116.7 104.3 12.0% - Publishing 7.3 3.6 103.2% 27.0 28.3 -4.6% Consumer KPIs FY 2017 9M FY 2017 9M
Slide 11: Key Highlights – Business as Usual (Test Prep)
Consumer Business Performance Key Highlights – Business as Usual For 9M period ending Dec 31, 2017 Billing grew by 13% from Rs 118 crs to Rs 133 crs Deferred Revenue at Rs 4.1 crs at end of Q3 FY18 vs Rs 0.1 crs at end of Q3 FY17; deflated profitability TP centres as on Dec 31, 2017 were 215
Slide 12: Key Highlights – Business as Usual (Publishing)
Consumer Business Performance Key Highlights – Business as Usual Gross Sales flat till Q3 FY18; 40%+ annual sales happen in Q4 No Major technical vacancies announced in FY 2017-18 BSNL JE, APPSC, BMRCL, DMRC, Coal India, etc. Diversification and risk mitigation strategy has paid off PUBLISHI
Slide 13: New Products
Consumer Business Performance New Products THEME Civils/ CA GATE Campus Training IX-XII (Maha) Continue to focus on our Acquired in April 17 Partially acquired Business Collaboration in Jan Core strengths - outcome Consolidated with (50.7%) in Oct 17 Collaboration in Aug 2018 driven serv
Slide 14: Key Highlights – New & Acquired Business
Consumer Business Performance Key Highlights – New & Acquired Business Civils/ CA (ETEN) - business handover complete; redundancies GATE (ICEGATE) - Acquisition completed in Oct 17; business removed impact to be seen only by Q1 FY 2019; will contribute to topline 1st year – Investment Rs ~4 cr
Slide 15: Q3FY18 Operational Performance
Q3FY18 Operational Performance Consumer Business Enterprise Business 15 Q3FY18 Investor Presentation
Slide 16: Enterprise Operating Metrics
Enterprise Business Performance Enterprise Operating Metrics Revenue (INR Particulars Q3FY18 Q3FY17 YoY (%) 9MFY18 9MFY17 YoY (%) Enterprise 33.1 22.4 47.5% 87.3 78.5 11.2% Crore) - Corporate 28.0 19.9 40.6% 75.5 71.1 6.1% - Institution 5.1 2.5 101.1% 11.8 7.4 60.0% Enterprise KPIs FY 2017 9M FY 201
Slide 17: Enterprise Corporate Business Key Highlights
Enterprise Business Performance – Corporate Business Key Highlights For 9M period ending Dec 31, 2017 International Business Revenue growth of 6% from 71.1 crs to 75.5 crs Focus Territories: Singapore, Dubai, Indonesia Business profitability flat, at 3.7 crs vs 3.4 crs LY Intellectual Pr
Slide 18: Enterprise Institutional Business Key Highlights
Enterprise Business Performance – Institutional Business Key Highlights For 9M period ending Dec 31, 2017 Research Business: Revenue growth from 7.4 crs to 11.8 crs Research business grown by close to 100% Business Profitability up from 0.6 crs to 2 crs Corporate sponsored Research reven
Slide 19: Corporate Sponsored Innovation
Enterprise Business Performance Corporate Sponsored Innovation Journey: So Far A leading Financial Institution: 50 Lakhs Infrastructure Innovations @ 25 technologically advanced Institutions in India A leading Mortgage Institution: Rs 50 REC Project: 2.55 Cr HP Project: 50 Lakhs Lakhs Research and I
Slide 20: Contents
Contents Q3FY18 Financial Performance Q3FY18 Operational Performance Corporate Summary 20 Q3FY18 Investor Presentation
Slide 21: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 21 Q3FY18 Investor Presentation
Slide 22: 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 22 Q3FY18 Invest
Slide 23: 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 24: Contact Us
CONTACT US For any Investor Relations queries, please contact: Ruchika Govila, AVP – Finance & Strategy Sudhir Bhargava, Chief Financial Officer CL Educate Ltd. CL Educate Ltd. Phone: +91-11-41280800 Phone: +91-11-41280800 Email: investors@careerlauncher.com; Email: investors@careerlauncher.com ruch
Slide 25: Annexures
Annexures 25
Slide 26: Operating in sizable $100 bn+, fast-growing industry
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 27: 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 Educate Corporates Integrated Marketing Services (Corporates)
Slide 28: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 50.7% 100% 100% 100% 100% Accendere 44% Kestone ICEGATE GK Publications CL Media Knowledge Mgt. CLEIS Eduvisors Services Content Research Integrated Test preparation Incubation & Career Launcher Specialist K-12 development, focused education Busines
Slide 29: Both Consumer & Enterprise delivering growth
Detailed Business Overview Both Consumer & Enterprise delivering growth Consumer Revenue Segmental Revenues Break-up Test Prep Publishing K-12* 1 Consumer Enterprise 2 20 12 16 17 133 150 105 122 38% 30% 77 share 64 share FY15 FY16 FY17 62% 70% 172 share 150 151 share Enterprise Revenue Corporate Un
Slide 30: 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 192* centers pan India 62% Revenue Share & ~27K online users in
Slide 31: 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 Enterprise Unique Learning cum productivity Sales 38% Revenue Share DNA in Corporate services 1 Kestone • Managed Manpow
Slide 32: 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 33: 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 34: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Dec 31, 2017) Key investors > 1% 14,163,278 Investors Shareholding % GPE (INDIA) LTD / GAJA TRUSTEE COMPANY PRIVATE LIMITED 8.45 Non- Institutional, SUNDARAM MUTUAL FUND A/C 5.87 22.3% HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.19 ASHOKA PTE LTD 3.77 D