National Co. For Learning & Education · TADAWUL:4291
National Co. For Learning & Education — National Company for Learning and Education — Q1 2024 Earnings Presentation
39 slides from National Co. For Learning & Education's earnings presentation, 2024
Slide 1: Investor Presentation Q1 2024
INVESTOR PRESENTATION Q1 2024
Slide 2: Disclaimer
Disclaimer Information contained in this document is subject to change without further notice and it may not contain all material information concerning National Company for Learning and Education and its subsidiaries (the Company). The Company is not liable or responsible of accuracy of referenced
Slide 3: NCLE Overview
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Slide 4: NCLE is celebrating its 66th anniversary since its inception in 1958
NCLE is celebrating its 66th anniversary since its inception in 1958 1958 66 Years 13 28 k 37.4 k Of Excellence in School Campuses Existing Students Enrolled Students K-12 Education Under Operation Capacity 2.9 K 6 3 14% CAGR Greenfield Schools Upcoming School 5-Year Enrollment Academic Staff Launch
Slide 5: Enrolled students grew to 28k in Q1 2024 compared to 21.6k in Q1 2023
Enrolled students grew to 28 k in Q1 2024 compared to 21.6 k in Q1 2023 TNS – Al- TNS – Al- TNS – Al- TNS – TNS – Al-Khwarizmi Al-Ghad - King Al-Ghad – Al- TNS – Al- TNS – Al-Aridh TNIS – Al- TNIS – Rayyan Rawabi Nozha Qurtubah Buraidah Abdullah Qairwan Qairwan Aridh Dhahran Al-Salam Establishment 1
Slide 6: Enrollments 2023/2024
2023/2024 Enrollments
Slide 7: Al-Rayyan School Campus Highlight
Al-Rayyan School Campus Highlight National 1980 85% 5,250 Founded Curriculum MEIA (Int’l) Utilization Capacity Program contribution 2024 10% (% from total students) YOY student growth National 2024 4,440 MEIA 90% 2023 3,804 +17% 2022 3,263 7
Slide 8: Al-Rawabi School Campus Highlight
Al-Rawabi School Campus Highlight National 95% 4,375 2009 Founded Curriculum International Utilization Capacity Program contribution 2024 (% from total students) YOY student growth 40% National 2024 4,150 International 60% 2023 3,800 +9% 2022 3,374 8
Slide 9: Al-Nozha School Campus Highlight
Al-Nozha School Campus Highlight National 2013 76% 4,375 Founded Curriculum MEIA (Int’l) Utilization Capacity Program contribution 2024 (% from total students) YOY student growth 19% National 2024 3,333 MEIA 81% 2023 2,987 +12% 2022 2,564 9
Slide 10: Qurtubah School Campus Highlight
Qurtubah School Campus Highlight National 99% 1,280 2017 Founded Curriculum International Utilization Capacity Program contribution 2024 (% from total students) YOY student growth 36% National 2024 1,266 International 64% 2023 1,034 +22% 2022 723 10
Slide 11: Buraidah School Campus Highlight
Buraidah School Campus Highlight National 78% 2,625 2019 Founded Curriculum International Utilization Capacity Program contribution 2024 (% from total students) YOY student growth National 49% 2024 2,035 International 51% 2023 1,565 +30% 2022 894 11
Slide 12: Al-Khwarizmi School Campus Highlight
Al-Khwarizmi School Campus Highlight 2010 National 98% 1,220 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth (% from total students) National 2024 1,190 2023 1,174 100% +1% 2022 1,132 12
Slide 13: Al-Ghad (King Abdullah district) School Campus Highlight
Al-Ghad – (King Abdullah district) School Campus Highlight 1990 National 77% 2,200 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth (% from total students) National 2024 1,701 100% 2023 1,686 +1% 2022 1,594 13
Slide 14: Al-Qairwan School Campus Highlight
Al-Qairwan School Campus Highlight National 2020 86% 4,550 Founded Curriculum International Utilization Capacity Program contribution 2024 (% from total students) YOY student growth 39% National 2024 3,917 International 61% 2023 3,247 +21% 2022 2,310 14
Slide 15: Al-Aridh National School Campus Highlight
Al-Aridh National School Campus Highlight 2021 National 77% 3,000 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth* (% from total students) National 2024 2,316 100% 2023 1,599 +45% 2022 941 * International curriculu
Slide 16: Al-Dhahran School Campus Highlight
Al-Dhahran School Campus Highlight 2022 International 36% 2,300 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth (% from total students) International 2024 838 100% 2023 394 +113% 16
Slide 17: Al-Salam School Campus Highlight
Al-Salam School Campus Highlight 1984 National 76% 1,950 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth (% from total students) National 2024 1,485 -3.7% 100% 2023 1,543 2022 1,450 17
Slide 18: Al-Ghad - AlQairwan School Campus Highlight
Al-Ghad - AlQairwan School Campus Highlight 2023 National 22% 1,720 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth (% from total students) National 100% 2024 378 18
Slide 19: Al-Aridh International School Campus Highlight
Al-Aridh International School Campus Highlight 2023 International 39% 2,520 Founded Curriculum Utilization Capacity Program contribution 2024 (% from total Program students)2024 contribution YOY student growth* (% from total students) International 2024 977 100% 2023 571 +71% 2022 346 *Aridh 2 was o
Slide 20: Operational Updates
Operational Updates
Slide 21: NCLE students excelled in 2023 academic year
NCLE students excelled in 2023 academic year 8 NCLE students in the world TNS 1st in table tennis among NCLE student won Hamdan NCLE student 2nd in Karate NCLE won the labor award robotic Olympiad KSA schools bin Rashid prize among KSA schools NCLE female students won the NCLE 8th in English Olympic
Slide 22: MEIA has played a pivotal role in championing the growth strategy
MEIA has played a pivotal role in championing the growth strategy for Al-Nozha and Al-Rayyan Contributed to utilization growth over the years 85% 76% 62% 59% 72% 68% 60% 55% NCLE introduced MEIA in Al-Rayyan and Al- 01. Nozha in academic year 2021/2022. 2021 2022 2023 2024 Al-Rayyan utilization Al-N
Slide 23: Al-Salam School flourished financially within a year post-acquisition
Al-Salam School flourished financially within a year post-acquisition Average tuition fees was increased in 23/24 20,700 Annual average 01. NCLE acquired Al-Salam school in Q2 of 2023. tuition (SAR) 18,500 2022 2024 Efficiency improved as student to staff ration increased 7.8 6.3 02. The school made
Slide 24: Strategic tuition and capacity adjustment has driven Qurtubah 1 growth
Strategic tuition and capacity adjustment has driven Qurtubah 1 growth trajectory Average tuition fees was increased in 23/24 Annual average tuition (SAR) 19,250 NCLE injected minimal capital of SAR 450 K to 17,250 01. add 10 additional classrooms in the school. 2023 2024 Optimal capacity increased
Slide 25: Al-Aridh 1 School remained unaffected after relocating international students
Al-Aridh 1 School remained unaffected even after relocating international curriculum students to the new facility Al-Aridh 2 Enrollment 2,170 3,293 NCLE leased a new building in Al-Aridh district 01. (Aridh 2) which was opened in 23/24 academic year. 571 2,316 977 1,599 The strategic operating model
Slide 26: Financial Outlook
Financial Outlook
Slide 27: NCLE recorded its highest earning in Q1 2024
NCLE recorded its highest earning in Q1 2024 28 K SAR 140.7 M SAR 49.7 M Enrolled students Revenue EBITDA +30% Growth +34% Growth +38% Growth From 21.6 k in Q1 2023 Compared to 105 M in Q1 2023 Compared to 36 M Q1 2023 SAR 31.1 M 0.72 SAR 22.1% Net profit EPS Net profit margin +20% Growth +20% Growt
Slide 28: NCLE maintained healthy financial growth in Q1 2024
NCLE maintained healthy financial growth in Q1 2024 28 446.4 23.4 21.6 308.5 17.1 13.3 176 Revenues 140.7 Students Number 105 SAR M Thousands 2021 2022 2023 Q1 2023 Q1 2024 2021 2022 2023 Q1 2023 Q1 2024 15.4 195.9 149.5 11.1 126.5 106.8 101.7 7.1 70.4 71 44.6 59.6 Government Grants & 50 49.8 Gross
Slide 29: NCLE maintained healthy financial growth in Q1 2024
NCLE maintained healthy financial growth in Q1 2024 70.9 58 51.6 34.4 30 34.4 Accounts Receivable 25 25 18 Dividends & Payout Days 60% 141% Ratio 73% 70% 2020 2021 2022 2023 Days 2021 2022 2023 Q1 2023 Q1 2024 Dividendes (M) Payout Ratio (%) 7% 43.9% 42.5% 42.3% 40% 41% 6% 34.6% 34.4% 35.4% 33.5% 5%
Slide 30: NCLE campuses experienced healthy financial growth
NCLE campuses experienced healthy financial growth Revenue By Campus Gross Margin by Campus 4% 5% 16% 59% 4% 55% 54% 55% 47% 51% 49% 50% 8% 42% 43% 44% 43% 43% 15% 38% 34% 33% 36% 34% 32% 33% 15% 1% 15% 14% 6% 12% 3% 5% 4% -31% Al-Rayyan Al-Rawabi Al-Nozha Qurtubah Al-Rayyan Al-Rawabi Al-Nozha Qurtu
Slide 31: NCLE Growth Drivers
NCLE Growth Drivers
Slide 32: External factors / Internal factors
Student population grew by 5% CAGR in Riyadh population is expected to reach the last 5 years in KSA 15 million by 2030 Students (mn) External factors 2023 2030 (EXPECTED) 6.6 5.8 6 Market growth 5.2 4.8 Private school penetration shift 32 mn 40 mn 19/20 20/21 21/22 22/23 23/24 8.6 mn 15 mn Internal
Slide 33: Private school penetration and market growth
Private school penetration rate is the highest in This year, the private education market grew by 13% its history led primarily by national curriculum growth Enrollments (‘000 students) External factors Private schools penetration rate (%) +13% Market growth 15% 16.5% 450 National 420 curriculum Pri
Slide 34: NCLE opened greenfield projects in the last years which are still growing
NCLE opened 6 greenfield projects in the last 5 years which are still growing External factors The third Private Market Tittlepenetration shift growth school TNS – Buraidah TNS–Al-Qairwan TNS – Al-Aridh Internal factors Maturing newly opened schools Establishment : 2019 Establishment : 2020 Establis
Slide 35: Hetteen school campus
Land Area Capacity Opening Date 12,650 sqm 2K Sep 2024 External factors Market growth Private school penetration shift Location CAPEX Land Lease Agreement 20.5 years (including 1.5 year Riyadh, Hetteen District 57 M SAR grace period ) Internal factors SAR 2.46 mn annually and increases of 10% every
Slide 36: Al-Narjis school campus
Land Area Capacity Opening Date 9,991 sqm 2K Sep 2024 External factors Location CAPEX Land Lease Agreement 20 years (Hijri Years) including 2 years Riyadh, Al-Narjis District 49 M SAR grace period Internal factors SAR 2.15 mn annually & an annual increase of 4% starting from 11th year Maturing newly
Slide 37: Qurtubah 2 school campus
Land Area Capacity Opening Date 13,200 sqm 2.5 K Sep 2024 External factors Location CAPEX Land Lease Agreement 27 years (including 2 years grace Riyadh, Qurtubah District 56 M SAR period) Internal factors SAR 1.6 mn annually and increases of 10% every 5 years Maturing newly opened schools Hetteen sc
Slide 38: Q&A
Q&A For more information, please contact us: investor.relations@edu.com.sa 38
Slide 39: Thank You
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National Company for Learning and Education — Q1 2024 Earnings Presentation on 6ix