Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q2 FY21 Earnings Presentation
29 slides from Cl Educate's earnings presentation, 2020
Slide 1: Q2 FY20-21 Investor Presentation
Excellence In Education. Since 1995 Q2 FY20-21 Investor Presentation © 2015, Christensen Investor Relations (I) Private Limited. All Rights Reserved. 1 Presented by: CL EDUCATE LIMITED
Slide 2: Core Values
Core Values 2 Presented by: CL EDUCATE LIMITED 2
Slide 3: 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 4: Contents
Contents COVID Impact Business Updates Financial Updates & The New Normal 4 Presented by: CL EDUCATE LIMITED
Slide 5: Changing face of Business
Changing face of Business • Digital Transformation • Digital First • Premium-on-Demand • Tumult will continue • Next 2-4 quarters • Costs (offline) Pruned, will be flat • Growth through • Higher EBITDA model in CashCows • Foothold in Jobs segment (UPSC, GATE, NRA/Bank) – focus on market share 5
Slide 6: H1 FY 2021 – A Brief Snapshot
H1 FY 2021 – A Brief Snapshot • Physical :: Digital: 90 – 10 to 10 – 90 trend has continued through Q2 Rs. in Cr Sep 20 Sep 19 Total Income 97.9 192.8 EBITDA 9.2 25.3 PBT 0.8 14.2 PAT 0.6 10.7 6 Presented by: CL EDUCATE LIMITED
Slide 7: Business Focus in H1 Remains Digital Driven
Business Focus in H1 Remains Digital Driven Test Prep Corporate Digital Sales & Marketing Virtual Events Product Innovation Digital Marketing Digital Delivery (inc. BPs) Mar Comm 7
Slide 8: Q-on-Q: Business Progression
Q-on-Q: Business Progression POST COVID • Study-centers in India slowly reopening in Q3 FY21 • Mid-year Digital Biz surpassed LY biz total tally • Sign of slow recovery in MBA & Law • MBA – Volumes up 15%; • Law – Excellent results in CLAT & AILET, strong start to the new season • Enterprise Corpora
Slide 9: Cost Impact
Cost Impact Fixed Variable Sustainable reduction of Fixed Increase in Other Expenses of Costs by ~5.5cr per Qtr ~5.7cr in Q2 • 75% Reduction in Avg Quarterly • Digital Business Support up 1.2cr Rent in H1 (1.6cr) Q-on-Q • 29% Optimization of • Digital Marketing up 0.5 cr Q-on-Q Manpower Expenses (3c
Slide 10: Contents
Contents COVID Impact Business Updates Financial Updates & The New Normal Presented by: CL EDUCATE LIMITED 10
Slide 11: Test Prep Key Business KPIs
Test Prep Key Business KPIs CL Digital Enrollments 89% Daily Active Users ✓ 55,482 – Sep 20 ✓ 29,396 – Sep 19 43% ✓ 68,575 – Sep 20 ✓ 48,086 – Sep 19 Digital Billing Monthly Repeat 450% Users ✓ 62.5 Cr – Sep 20 8% ✓ 11.4 Cr – Sep 19 ✓ 33% – Sep 20 ✓ 25% – Sep19 11
Slide 12: Test Prep KPIs – Lead & Lag Indicators
Test Prep KPIs – Lead & Lag Indicators Lead Indicators Sep 20 Sep 19 Lag Indicators Digital Users 45 Mn 29 Mn 55% Monthly Active Users 2 Mn 1 Mn Digital Enrolments 55K 29K 89% 100% Billing 625 Mn 114 Mn Monthly Repeat Users 33% 25% 32% 450% Daily Active Users 69K 48K 43% Minutes Spent 27 Bn+ 17 Bn+
Slide 13: The Improving Wedge
The Improving Wedge Aptitude Segment MBA, Law, IPM, International Education Revenue (₹ mn) COVID Effect 40000000 35000000 30000000 ‘Revenue – MCAC’ 25000000 20000000 15000000 10000000 5000000 0 MCAC (₹ mn) Seasonality Total - Revenue MCAC (₹ mn) (₹ mn) 13
Slide 14: Enterprise: A Brief Snapshot
Enterprise: A Brief Snapshot Corporate Institutional • Virtual Events • Academic & Admission season • 70 Events in 100 days delayed by 90-120 days • $800,000 confirmed • Cash Crunch at institutions, • Digital Marketing & Marcomm lowers marketing Budgets growing • Delayed payment cycles • FY21 VEP wi
Slide 15: Contents
Contents COVID Impact Business Updates Financial Updates & The New Normal Presented by: CL EDUCATE LIMITED 15
Slide 16: Financial Snapshot
Financial Snapshot Enrollments 16% ✓ 55,482 – Sep 20 EBITDA Margin 370bp ✓ 66,149 – Sep 19 9.4% – Sep 20 Digital 13.1% – Sep 19 Billing ✓ 62.5 Cr – Sep 20 ✓ 55,482 – Sep 20 ✓ 136.4 Cr – Sep 19 ✓ 29,396– Sep 19 Consol Revenue 49% EBITDA ✓ 97.9 Cr – Sep 20 64% ✓ 192.8 Cr – Sep 19 ✓ 9.2 Cr – Sep 20 ✓ 2
Slide 17: Consolidated: Cash Position
Consolidated: Cash Position Rs. In Cr. Sep 20 Jun 20 Mar 20 MF Investments 37.9 37.6 37.2 Fixed Deposits 19.1 23.1 12.1 Cash & Cash Equivalents 13.4 13.0 11.6 Gross Cash 70.5 73.7 61.0 Borrowings (Current & Non-Current) (41.3) (41.5) (42.8) Net Cash 29.2 32.2 18.2 Trade Payable 28.6 37.9 40.7 17
Slide 18: Merger Update
Merger Update • Merger process stalled due to COVID ✓ NCLT Chandigarh moving to VC mode, but not hearing Merger matters yet ✓ Last 5 Hearings postponed ✓ Emergency petition request was entertained by the NCLT Bench in October ✓ Order reserved, expected to be released post Diwali • As things stand: ✓
Slide 19: Thank You
Thank You For Investor Relations Queries Contact Arjun Wadhwa Amit Kanabar Chief Financial Officer Investor Relations CL Educate Ltd. CL Educate Ltd. Call: +91-98116 17289 Call: +91-88009 76683 E-mail: investors@careerlauncher.com E-mail: investors@careerlauncher.com arjun.wadhwa@careerlauncher.com
Slide 20: Annexures
Annexures 20
Slide 21: Merger Scheme
Merger Scheme Pre-Merger Organization Structure Post-Merger Organization Structure Upward merger of CL Educate Limited all the subsidiaries with CL Educate 1A Wholly owned subsidiaries CL Educate CLEIS CL Media GKP Kestone AKMS Consumer Enterprise Segment Segment Composite Scheme: Merger of CLEIS, C
Slide 22: 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 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% 57.85% 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 w
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: 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 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 H1 FY20 Investor Presentation