Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Investor Presentation (May 2017)
25 slides from Cl Educate's investor presentation, May 2017
Slide 1: CL Educate Limited
CL Educate Limited May 2017 BSE: 540403 | NSE: CLEDUCATE
Slide 2: Safe harbor
Safe harbor Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: Indian Education Landscape: Sizable @$100 bn+, fast-growing with newer opportunities
Indian Education Landscape Sizable @$100 bn+, fast-growing with newer opportunities 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 Entrepr
Slide 4: Well-diversified leader in education products & services
CL Educate Ltd. Well-diversified leader in education products & services Balanced Consumer, Enterprise mix in Revenues Accelerated growth ahead post recent IPO and strategic transactions 1 Consumer 2 Enterprise 54% Revenue Share 46% Revenue Share Increased growth capital - Rs 151 Cr • Rs 100 cr. of
Slide 5: CL in numbers – strong foundations
CL in numbers – strong foundations Scaling up steadily, profitable growth Knowledge Deep expertise One of the largest networks High in Assets 20+ years Rich experience of shaping 88,462 22 states Governance education landscape, 192 Test-Prep centers (incl. leadership includes IIT-IIM ETEN),, 4 Kesto
Slide 6: Our strengths: Key differentiators
Our strengths Key differentiators Strong brand equity across businesses Consumer Enterprise 1 2 3 4 5 Technology led Research led Integrated, wide Extensive Relationships Wide coverage delivery Knowledge Repository spectrum of services Pan-India Network • 24,590 online students – • Strong relationsh
Slide 7: Consumer businesses: Strong brand with pan-India presence in Test-Preparation
Consumer businesses Strong brand with pan-India presence in Test-Preparation Scalable & asset-light business Consumer Revenues (Test-prep +Pub+K-12) Market leader in Aptitude Products ( AP) MBA and Law Test prep offering 12% FY12-FY16 CAGR In Revenues 151 test prep centers with 45 owned center
Slide 8: Enterprise Business: Knowledge services for Universities & Corporates
Enterprise Business: Corporates + Universities Knowledge services for Universities & Corporates CL Media facilitate Universities in reaching out to the right student set and improve their quality of intake Enterprise Revenue Business Solutions Benefits extended to the universities 17% FY12-FY16 CA
Slide 9: Enterprise Business: Knowledge services for Corporates
Enterprise Business: Corporates + Universities Knowledge services for Corporates Kestone provides Integrated Business, Marketing & Sales Services for Corporates Knowledge services Integrated marketing services and solutions Manpower management and Training • Corporate research services and IP • Pr
Slide 10: Our Unique Synergies
Our 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...
Slide 11: Successful outcomes: Strong brand equity in both verticals
Successful outcomes Strong brand equity in both verticals Consumer Enterprise CL Students secured ranks in the top 100 successful Key Customers 66 candidates in the CLAT (Law) exam in May 2016 11 11 (out of 20) 100 percentilers in CAT 2016 are from Career Launcher 2129 Students received calls from a
Slide 12: Delivering strong financial performance
Our track record Delivering strong financial performance Consolidated financials, figures in Rs Cr Revenue EBITDA/ Margin EBITDA EBITDA Margin 14% FY12-FY16 CAGR 13.9% 274 283 30% FY12-FY16 CAGR 13.5% 12.7% 11.5% 219 199 166 153 7.6% 5.6% 37 36 25 21 13 11 FY12 FY13 FY14 FY15 FY16 H1FY17 FY12 FY13 F
Slide 13: Acquisition of ETEN business
Acquisition of ETEN business Adds high Growth, High ROE CA + Civils products to CL Portfolio ETEN’s Strong Assets CL emerges as one of the largest pan-India network Well-established & reputed test-prep offering full bouquet of Aptitude-based & brand in CA & IAS Knowledge-based test-prep services
Slide 14: Acquires remaining 49% stake in AKMS
Acquires remaining 49% stake in AKMS Increased focus on fast-growing research incubation services Highlights since initial investment of Rs 13.2 cr for 51% in Sep 2015 Attractive business returns • Revenue increase 2.5x • Targeting 5x revenue increase in 2 years • # of customers increase from 2 univ
Slide 15: Update on K-12 divestment
Update on K-12 divestment ~Rs 85 cr deal for IWS with Eduvisors/ Cerestra Edu-Infra Fund Transaction Details Attractive deal for CL CL receives Rs 51 cr before March 2018 of which Rs Releases Rs 51 cr over next 12 months for core business 42 cr will come before May 31st 2017. Improves return r
Slide 16: Our Strategy
Our Strategy Asset-light multi-faceted strategy for increased returns & shareholder value Strengthen core consumer businesses Outlook 2020 Expand offerings • Revenue Goal – Rs 500 to 520 cr @19-21% CAGR Introduce new courses Grow geographical test prep network • Consumer Business Rs 290-305 cr.
Slide 17: Annexures
Annexures 17
Slide 18: Professional Team, World Class Governance
Our A-Team Professional Team, World Class Governance Professionally qualified, experienced & entrepreneurial Management Key Board Members Satya Narayanan R. 19+ years of experience in the education sector Sridar A. Iyengar, Independent Director, Chairman (Audit Committee) Chairman & Executive Dire
Slide 19: Our Story
Our Story From a single-city MBA test prep to diversified & integrated play Asset-Light, tech-driven, multi -product, multi-geography expansion, accelerated growth through 7 acquisitions ~93,000 students across 2017 Test Prep in 192 centres 2015 2011 + CA & IAS 2008 + Higher- 100% education Accender
Slide 20: Shareholding pattern
Shareholding pattern Outstanding Shares (March 31, 2017) Key investors > 1% 14,163,278 Investor % Shareholding Non- Gaja Capital 8.5% Institutional, 31.3% HDFC 4.2% Ashoka PTE/Macquaire 3.1% Ocean Dial 2.9% Promoter, 47.9% Sundaram MF 2.4% HDFC MF 2.3% DSP Blackrock MF 2.0% Canara HSBC Oriental Bank
Slide 21: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 100% 100% 100% Accendere 44% Kestone GK Publications CL Media Knowledge Mgt. CLEIS Eduvisors Services Content Specialist K-12 Development for TP, Career Launcher focused education Integrated Business, Test preparation publishing study Research Incub
Slide 22: Consolidated Profit and Loss Report
Financial Statements Consolidated Profit and Loss Report In Rs Cr FY12 FY13 FY14 FY15 FY16 H1FY17 Key Ratios FY12 FY13 FY14 FY15 FY16 H1FY17 Revenue 166 199 219 274 283 153 EBITDA Margin 7.6% 5.6% 11.5% 13.5% 12.7% 13.9% RM consumption 5 6 7 11 12 5 Pre-tax Margin -4.9% 9.3% 9.3% 10.6% 10.9% 13.4% C
Slide 23: Consolidated Balance-Sheet
Financial Statements Consolidated Balance-Sheet In Rs Cr FY12 FY13 FY14 FY15 FY16 H1FY17 In Rs Cr FY12 FY13 FY14 FY15 FY16 H1FY17 Share capital 9 10 10 12 12 12 Tangible Assets 91 78 76 78 76 75 Reserves and Surplus 96 124 140 198 230 244 Intangible Assets 14 12 11 13 11 11 Shareholder's funds 105 1
Slide 24: Cash Flow Statement, other Ratios
Financial Statements Cash Flow Statement, other Ratios In Rs Cr FY12 FY13 FY14 FY15 FY16 H1FY17 Operating Cash Flows -19 6 10 20 5 6 Investing Cash Flows -5 -5 -1 -124 -17 -0 Financing Cash Flows 17 1 -9 105 14 -9 Net increased/ Decrease in cash -7 2 -1 2 2 -3 Key Ratios FY12 FY13 FY14 FY15 FY16 H1F
Slide 25: Contact Us
CONTACT US For any Investor Relations queries, please contact: Ruchika Govila, AVP – Finance & Strategy CL Educate Ltd. Phone: +91-11-41280800 Email: investors@careerlauncher.com ; ruchika.govila@careerlauncher.com Nikhil Mahajan, Executive Director & CFO CL Educate Ltd. Phone: +91-11-41280800 Email