Skillful Craftsman Education Technology Limited · NASDAQ:EDTK
Skillful Craftsman Education Technology — IPO Roadshow (July 2020)
28 slides from Skillful Craftsman Education Technology's IPO roadshow presentation, Jul 8, 2020
Slide 1: Skillful Craftsman Education Technology Investor Presentation July 2020
Skillful Craftsman Education China ’ s Vocational E ducation T echnology C ompany Investor Presentation July 2020
Slide 2: Cautionary statements and forward-looking statements
Readers are cautioned that securities of Skillful Craftsman Education Technology Ltd . (the “Company,” “we,” “our” or “us) are highly speculative . No representation or warranty, expressed or implied, is or will be made and, save in the case of intention or fraud, no responsibility or liability is o
Slide 3: Offering and prospectus notice
This presentation highlights basic information about us and the offering . Because it is a summary, it does not contain all of the information that you should consider before investing . You should read carefully the factors described in the "Risk Factors" section of the prospectus contained in the
Slide 4: Offering Summary
Offering Summary Issuer Skillful Craftsman Education Technology Limited Type of Offering IPO Price Range $4.50 - $5.50 Shares Offered 3,000,000 Gross Proceeds $15 million (assuming no exercise of the over - allotment option) Over - Allotment 15% Proposed Listing/Symbol Nasdaq Capital Market / “EDTK”
Slide 5: Our Mission
We are a vocational education technology company providing interactive online learning courses that enable students to acquire vocational skills at their own pace Our Mission 5
Slide 6: Who Are We
• A high - tech vocational education platform company providing online vocational training and virtual simulation experiment training • Founded in June 2013 • A key supporter of China economic development and education reform assisting to expand labor force employment • Registered members * : 59.5 m
Slide 7: Our Virtual Simulation Training
Our Virtual Simulation Training https://drive.google.com/file/d/1j4aCgkQL1s6rkjEX lDCQqFfIKA64gsdI/view?usp=sharing 7
Slide 8: Virtual Simulation Training - Example
Virtual Simulation Training - Example Example: Ship diesel engine dismantling and assembly x Simulates real - live experience x Lower teaching cost x Simplify complex learning Diesel engine final assembly Piston ring disassembly Disintegration of exhaust valve Oil Injector check Connecting rod disas
Slide 9: Why We Are Different – Innovative Virtual Simulation Training Platform
9 Why We Are Different – Innovative Virtual Simulation Training Platform • Provides virtual, simulated training • Hands on learning, similar to the real - live experience • Courses are repeatable, flexible • Lower cost, no physical risk to the students • Highly leverageable: one course - multiple le
Slide 10: China's Online Education Market Has Been Growing Rapidly
China’s Online Education Market Has Been Growing Rapidly China o nline education market size (by transaction volume in RMB) China online vocational education market size (by transaction volume in RMB) Number of fee - paying users of China online education market CAGR 25.7% CAGR 9.2% CAGR 27.8% 95 13
Slide 11: Vocational Education and Skill Training Are Essential to China's Education System
Vocational E ducation and V ocational S kill T raining A re E ssential to C hina ’ s E ducation S ystem Age Informal Education Formal Education 2.5yrs 6yrs 15yrs 9 years compulsory Education Vocational Education 18yrs Basic E ducation Higher E ducation • Skillful Craftsman provides online vocational
Slide 12: Vocational Education Has Strategic Importance to China's Economic Development
Vocational Education Has Strategic Importance to China’s Economic Development and Education Reform ▪ The objective of technical and vocational education and training (TVET) in China is to enhance labor force employability ▪ Ministry of Education ( MOE) promotes development of online vocational train
Slide 13: A Key Player in Vocational Education Sector
A Key Player in Vocational E ducation Sector Higher educatio n Continuing education Vocational education Basic education Types of education in China An education technology company dedicated to vocational education Skillful Craftsman Education Cloud 13 3.1 million accumulated paying members 59.5 mil
Slide 14: Investment Highlights
Investment Highlights A key player in fast - growing market Scalable business model, integrating online and offline education Experienced management team with decades of experience in education industry Superior technology built in cloud Increase fee paying member penetration rate through differenti
Slide 15: A Key Player in Fast-growing Market
Technical S upport x Cloud computing technology integrates data into an education cloud database . I mprove Efficiency x E - cloud teaching system reduce s unnecessary operating expenses and integrates resources . Government S upport x China ’s MOE supports development of online education . x COVID
Slide 16: Scalable Business Model, Integrating Online and Offline Education
Scalable Business Model, Integrating Online and Offline Education Basic education Higher education Vocational education Further education Cooperation with top universities in R&D Shared among institutions others Skillful Craftsman Education Cloud (IaaS 、 PaaS 、 SaaS) Software, application and hardwa
Slide 17: Superior Technology Built in Cloud
Superior Technology Built in Cloud • Support data sharing for universities and professional institution s • Offered m ore than 407 courses and 9 experimental programs to accumulated 59 .5 million 1 registered students Self - built state - of - the - art data center Internet C able TV operator T elec
Slide 18: Increase Fee Paying Member Penetration Rate Through Virtual Simulation Training
0.05 0.24 0.58 1.15 1.93 2.88 3.09 0 0.5 1 1.5 2 2.5 3 3.5 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 3/31/2020 VIP Fee Paying Members Million 4 18 Increase Fee Paying Member Penetration Rate Through Differentiated Virtual Simulation Training VIP O nline Education Platform RMB
Slide 19: Experienced Management Team with Decades of Experience
19 Xiaofeng Gao Chairman of the Board of Directors/CEO x More than 20 years of management experience x CEO, Wuxi Kingway Technology Co., Ltd x M.S., Automation x Beijing University of Science and Technology Liu Jun CFO x 20 years of experience in finance and accounting x CFO, Wuxi Kingway Technology
Slide 20: Our Growth Strategies
• Continue to convert registered members (59 million) to fee paying member • Drive higher revenue per member through the development of dynamic and interactive virtual simulation content • Broaden VIP member base and align courses development with key education mandates, including one diploma + mult
Slide 21: Revenues and Net Income
14.9 24.7 28.7 11.1 13.4 0 20 40 2018 FY 2019 FY 2020 FY (E) 9/30/2018 9/30/2019 Revenues 1 In USD Million 6.0 8.7 4.5 5.1 0 5 10 15 2018 FY 2019 FY 9/30/2018 9/30/2019 Net Income 1 In USD Million Demand for online education services driving revenue growth and strong margins ▪ Strong revenues driven
Slide 22: Use of Proceeds
Use of Proceeds 22 Virtual Simulation Program Development Mobile Application Development Vocational Education Interaction Platform and Career Advice Services Platform Development 1+X (one diploma + multiple skills accreditations) online course development
Slide 23: Appendix
Appendix
Slide 24: Company Structure
100% 100% 24 Company Structure Skillful Craftsman Education Technology Limited Wuxi Kingway Technology Co. Ltd. Easy Skills Technology Limited Skillful Craftsman Network Technology (Wuxi) Limited Overseas Domestic
Slide 25: Computer Software Copyrights We Obtained
17 Computer Software Copyrights We Obtained 25 Experimental space virtual simulation experiment teaching platform V1.0 “ iCourse ” Quality Courses open service management platform V1.0 DMP data management platform system V1.0 E - commerce online payment comprehensive management system V1.0 Innovativ
Slide 26: Balance Sheet
Balance Sheet “SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITED, UNAUDTED CONSOLIDATED BALANCE SHEETS ASSETS ‘Cad sca ivalets 3 Ss tgs7s38 Ss 10362288 ‘Aecoutsreetale, ot 4 25736, S132 ‘Prepac a other cane aes 5 sazsit Ieee te econ B Tota current assets Tee Non-current assets ‘ wos 14022240 7 1786440
Slide 27: Income Statement
Income Statement 4S SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITED. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the sx months ended September 30 70 is Revenue Tae T arg Cost of revenue 535036) 6.739.458) Gross profit 8.070.320 7382790 Operating expenses: Selling and
Slide 28: Statement of Cash Flow
Statement of Cash Flow SKILLFUL CRAFTSMAN EDUCATION TECHNOLOGY LIMITED UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Cash lows from operating atvites Netpeosit Ss su3406s $ Adjustments o reconcile net profit tone cash generated fom operating sts 4181058 Depreciation of propery and equipment 1.069
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