Slide 1: Investor Presentation
November 2012 Investor Presentation
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by MT Educare Limited (the “Company”) solely for use the purpose of Investor meetings. This presentation (including any information contained herein and any information, whether or not in writing, supplied in connection herewith) is strictly confidentia
Slide 3: Index
Index Business Overview Key Differentiators Growth Strategy Industry in a growth phase Experienced Management Team Financial Overview and Operating Leverage Shareholding Pattern Appendix 3
Slide 4: Business Overview
Business Overview
Slide 5: 'Result oriented' education support and coaching services provider
‘Result oriented’ education support and coaching services provider Coaching services being provided by Mr. Mahesh Shetty since Growing No. of Centres 1988 under the brand name ‘MAHESH TUTORIALS’ Diversified product offering from school tutorial to vocational trainings Network consists of 199 c
Slide 6: Business Overview: A coaching services provider for students
Business Overview A coaching services provider for students… In the Secondary and Higher Secondary School Pursuing graduate degrees Preparing for various competitive examinations Undertaking CA examinations. School Section Science Section Commerce Section Others IXth and Xth standard XIt
Slide 7: Business Overview – Capturing the entire Value Chain
Business Overview – Capturing the entire Value Chain Junior Colleges: Management Contracts CA Strong base ensures enough Capacity for higher end Final, Major Professional Courses courses MBA AIEEE, CA Foundation (CPT, Expanded into the basic IPCC), Other levels of professional professional cou
Slide 8: Key Milestones
Key Milestones —— 2007 1988) 7 2007, Helix Investment provided coaching ~§ 8mn services 0 the Karnataka Centre School Section, jon and Science Secti Commerce Section through yarious partnership firms aaa 7008 - 2009 Centres opened in Gujarat and Tamil Nadu Acquired scholar’s Learning Centre Launch o
Slide 9: Location of Centres
Location of Centres ► Gujarat Secondary and Higher Secondary Education Board - 3 5 ► XI, XII and CET - 2 27 Mumbai, Mah. State Board • English Medium - 55 • Marathi Medium - 14 ICSE - 9 149 Rest of Maharashtra Mah. State Board CBSE - 10 • English Medium - 11 XI, XII and CET - 28 XI, XII and CPT, Gra
Slide 10: Key Differentiators
Key Differentiators
Slide 11: Key Differentiators
Key Differentiators… Corporatized Well Recognized Large Pool of Structure and Result Oriented Organized and Brand & Quality Faculty Experienced Quality Methods Diversified Player Experience Members Management Team of Coaching 1,556 scored ≥ 90% 149 Centres at 94 927 faculty members Increased
Slide 12: Teaching Methodology
…Teaching Methodology Value Added Services Unique Study Material Career Counselling: Prepared by faculty heads from reference material Through seminars and exhibitions Theory and concept of various subjects are addressed in an efficient and simple manner Symphony: Close Monitoring and Intera
Slide 13: Growth Strategy
Growth Strategy
Slide 14: Growth Strategy
Growth Strategy Expand our presence in Intend to offer new Tier II and tier III cities Managing Pre-university Maharashtra, Tamil Nadu, courses like IIT JEE college in Karnataka Sale of Content Gujarat and Karnataka preparation classes, Expansion through Managing Commerce other certifica
Slide 15: Growth Strategy – School Division
Growth Strategy – School Division Focus has been on increasing IX-X Combo admissions by introducing coaching for Std. IX in all centres across Mumbai; Std. IX admissions grew from ~2,000 in FY 09 to ~6,000 in FY 13 Focus on developing the CBSE & ICSE business verticals as a pillar of strength to
Slide 16: Growth Strategy – Science Division
Growth Strategy – Science Division Started coaching for Std. XIth and XIIth in 2001; one of the leading HSC and state engineering & medical entrance examinations test prep providers in Mumbai Keen on expanding the reach in the state of Karnataka via the PU College (Junior College) model; plan is
Slide 17: Growth Strategy – Commerce
Growth Strategy – Commerce Commerce division consists of coaching for Std. XIth , XIIth , CA-CPT, CS-Entrance and coaching for professional courses including CA-IPCC and CA-Final No. 1 in Mumbai in the XI/XII/CPT market and one of the top three in the Higher CA market Planning on expanding to
Slide 18: Growth Strategy – UVA and MBA
Growth Strategy – UVA and MBA Launch of University, Vocational and Affiliated (UVA) programme with focus of creating employable graduates and bridging the gap between skills imparted by basic graduation and skills required by current professions Aimed at students pursuing a graduation degree in
Slide 19: Growth Strategy – INK
Growth Strategy – INK Coaching for students below the IXth is primarily through the internet with some classroom based coaching started in trial run during the last academic year; two-way communication using a web camera enabling face-to-face interaction with the faculty Currently operational fo
Slide 20: Industry in a growth phase
Industry in a growth phase
Slide 21: Large Addressable Market
Large Addressable Market The Indian coaching industry is expected to grow from Rs. 40,187 crore INDIAN EDUCATION SYSTEM in 2010-11 to Rs. 75,629 crore in 2014-15. Market Size - Classroom based coaching industry 17% CAGR Formal Vocational Informal Rs. Cr Education Education Education 13% CAGR 75,629
Slide 22: Comfortably positioned in the industry
Comfortably positioned in the industry India - Bifurcation of Avg. Annual Education Exp. per reporting student Maharashtra Coaching market size and growth Highly competitive organized (Rs. Crs.) market to stabilize price Exam Others fees/ High cost of operation 3% payments Private (especially real e
Slide 23: Experienced Management Team
Experienced Management Team
Slide 24: Board of Directors
Board of Directors Mahesh Shetty He has over 27 years of experience and holds a bachelor’s degree in science and education from the Mumbai University. He was awarded the ‘Pride of (Chairman and MD) the Nation Award’ by the All India Achievers Association in the year 2008 A Non Independent, Non E
Slide 25: Key Management Personnel
Key Management Personnel Anish Thakkar He is a member of the Institute of Chartered Accountants of India. He joined MT Educare in 2003 and has over (Business Head- 16 years of experience. Commerce Section ) Chandresh Fooria He holds a bachelor’s degree in engineering (instrumentation) from the S
Slide 26: Key Management Personnel
Key Management Personnel Vipul Shah He holds a bachelor’s degree in computer engineering University of Mumbai and has completed masters in (Business Head- marketing management. Gujarat ) He also looks after marketing at MT Educare Ltd. Mahtab Khan He holds a bachelor’s degree in science and ed
Slide 27: Financial Overview
Financial Overview
Slide 28: Key Financials
Key Financials Revenue (INR Mn) EBITDA (INR Mn) 1,400 1,306 300 40% 13% 15% 18% 18% 1,200 1,055 200 20% 1,000 832 732 231 800 100 190 0% 600 0 92 125 -20% 400 -36% 200 45 -100 -21 -40% 0 FY 08 FY 09 FY 10 FY 11 FY 12 FY 08 FY 09 FY 10 FY 11 FY 12 FY 09-12: 21% CAGR EBITDA EBITDA Margins PAT (INR Mn)
Slide 29: Quarterly and Half Yearly Financials – Consolidated
QUARTERLY AND HALF YEARLY FINANCIALS – CONSOLIDATED ` in Lakhs For the quarter For the half year For the half year For year ended Particulars ended 30th ended 30th ended 30th 31st March, 2012 September 2012 September 2012 September 2011 Fee Income 4,491.21 8,043.75 7,064.78 12,715.34 Other Operating
Slide 30: Seasonality of Business
Seasonality of Business Strong seasonality in Revenues and Margins due to diverse product offerings across quarters Fees Key Contributors to Fee Income % 21%- IX, X (PY and CY batches), XII + Test Prep (PY Sci. and Q1 Apr - Jun 23% Comm. batches) 32%- IX, X (PY and CY batches), XI + Test Prep (CY Sc
Slide 31: Division Wise Revenue - Consolidated
Division Wise Revenue - Consolidated H1 FY 12-13 FY 11-12 H1 FY 12-13 FY 11-12 Commerce Revenue (` in lakhs) 3,814 6,004 Revenue (` in lakhs) 1,507 2,639 School No. of Students 22,101 31,774 No. of Students 14,828 20,236 Serviced* Serviced* Centres at period end 105 97 Centres at period end 38 37 H1
Slide 32: Key Balance Sheet Trends
Key Balance Sheet Trends Operating at negative working capital Improving Return Ratios - 40% 35% FY 08-09 FY 09-10 FY 10-11 FY 11-12 Q2 FY12-13 (1,000) 30% 28% (2,000) (1,683) ` in Lakhs 17% 25% (3,000) (2,623) 20% (2,778) (2,994) (3,038) (3,263) 11% 18% (4,000) (3,807) (3,870) 10% 12% (5,000) 8% (4
Slide 33: Historical Financials
Historical Financials INR Mn FY09 FY10 FY11 FY12 Total Operating 732 832 1055 1306 Income Total Income 753 858 1076 1346 EBITDA 92 125 190 231 EBITDA Margins 13% 15% 18% 18% Profit Before Tax 37 70 128 192 PBT Margin 5% 8% 12% 15% PAT 26 52 83 132 PAT Margins 4% 6% 8% 10% Networth 363 411 476 571 Gr
Slide 34: Shareholding Pattern
Shareholding Pattern
Slide 35: Shareholding Pattern as of September 30, 2012
Shareholding Pattern as of September 30, 2012 Category No. of Total No. of % Share- Share Shares holding Holders Promoter & Promoter Group 1 16,956,885 42.88 10% 5% 3% Directors/KMP 12 3,891,478 9.84 Mutual Funds / UTI 12 1,307,369 3.31 24% Foreign Institutional Investors 8 1,731,622 4.38 43% Bodies
Slide 36: Thank You
Thank You
Slide 37: Appendix
Appendix
Slide 38: Our Brands
Our Brands e or MAHESH TUTORIALS [ScHOOL SECTION 9 INTERACTIVE NETWORKED KNOWLEDGE THE ACADEMIC PARENTS OF YOUR CHILD! fay/uval M@HESH TUTORIALS NS, a G Discover the new DIMENSION of Commerce Basic Graduation M@HESH TUTORIALS Fenere preer_p © TTT Tears efor Wes CPLC CAT / CET / GMAT M@HESH TUTORIALS
Slide 39: Management Organisation Chart
Management Organisation Chart MD Business Head Business Head Business Head Business Head CFO (Science) (Commerce) (PU College) (New Ventures) Steering Committee Steering Committee Steering Committee (Science) (Commerce) (School) Internet Dubai Based UVA, etc. Coaching Zonal / Regional Head The numbe