Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q4 FY17 Earnings Presentation
35 slides from Cl Educate's earnings presentation, June 2017
Slide 1: Q4 & FY17 Investor Update
Q4 & FY17 Investor Update JUNE 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: Contents
Contents CL Educate : A sustainable education services play 4-11 Financial Performance 13-15 Strong Business Performance 17-28 Annexure 30-34 Corporate Structure 30 Shareholding Pattern 31 Financials 32-34 Q4 & FY17 Investor Update 3
Slide 4: Sizable @$100 bn+, fast-growing with new opportunities
Indian Education Landscape Sizable @$100 bn+, fast-growing with new 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 Entrepren
Slide 5: Well established brand with diversified revenue streams
CL Educate Ltd. Well established brand with diversified revenue streams Balanced Consumer, Enterprise mix in Revenues; Delivering Successful Outcomes 1 2 Consumer National Test-Prep leader: largest Enterprise Unique Learning cum productivity 62% Revenue Share network of 192 centers & ~27K 38% Revenu
Slide 6: Comprehensive product portfolio in Knowledge & Career Services
CL’s portfolio Comprehensive product portfolio in Knowledge & Career Services Aptitude Products (AP) MBA I Law I Bank/SSC I International Test-prep Knowledge Products (KP) IIT I Medical I Tuitions Consumer Services ETEN CA I Civils Publishing CL Educate Integrated Knowledge / training services Corpo
Slide 7: Strong foundation for accelerated growth
Scaled up successfully Strong foundation for accelerated growth 2017 2015 2010 Consolidation Acceleration driven by 1996 - 2005 Diversification + Research Services Digital + Enterprise Cross-leveraging Asset Light Foundation + pan India synergies High ROI Rs 283 Cr Rs 279 Cr Revenues Rs 40 Cr Rs 123
Slide 8: 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 9: Key differentiators
Our USP 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 31% online enrolments 2 decades of test-prep of tota
Slide 10: Well qualified & experienced team steering at the helm
Our Team Well qualified & experienced team steering at the helm Satya Narayanan R., Gautam Puri, Nikhil Mahajan, Chairman & Executive Director Vice Chairman & Managing Director Executive Director & CFO • 19+ years of experience in • 19+ years of experience in the • 18+ years of experience in finance
Slide 11: Focussed on governance & processes
Strong ethos Focussed on governance & processes Independent/ Sridar A. Iyengar, Safir Anand, Viraj Tyagi, Nominee Directors Independent Director, Chairman Independent Director, Chairman CSR Committee Independent Director • Over 21 years of experience in the Audit Committee are a majority on • 35 yea
Slide 12: Contents
Contents CL Educate : A sustainable education services play 4-11 Financial Performance 13-15 Strong Business Performance 17-28 Annexure 30-34 Corporate Structure 30 Shareholding Pattern 31 Financials 32-34 Q4 & FY17 Investor Update 12
Slide 13: Stable financial performance despite planned exit from Govt. Business
FY17 Highlights Stable financial performance despite planned exit from Govt. Business Robust performance of core operations – Adjusted Revenues up 21% YoY Consolidated financials, In Rs Cr FY 15 FY 16 FY 17 Adverse Factors Reported Revenue 283 282 279 External Adjusted Revenue* 214 228 277 • Demonet
Slide 14: Diversified model helps overcome external challenges in H2
FY17 Results Review Diversified model helps overcome external challenges in H2 Consolidated financials, In Rs Cr Revenue EBITDA PAT PAT Margin ROCE 283 282 279 48 47 14% 21 19 11% 14% 14% 44 21 9% 8 11% 13% 6 7% 7% 8% 277 52 53 25 7% * 214 228 24 8% 36 15 -4 -7 -3 FY15 FY16 FY17 FY15 FY16 FY17 FY15
Slide 15: Adjusted revenue up 18% despite impact of demonetisation
Q4’FY17 Results Review Adjusted revenue up 18% despite impact of demonetisation Consolidated financials, In Rs Cr Revenue EBITDA from cont. ops/ Margin PAT from cont. ops/ Margin Revenue Mix EBITDA EBITDA % PAT PAT% Consumer Enterprise 73 69 17.5% 8 8.4% 8.3% 73 15.7% 33% 62 13 6.2 67% 11 5.8 FY16 F
Slide 16: Contents
Contents CL Educate : A sustainable education services play 4-11 Financial Performance 13-15 Strong Business Performance 17-28 Annexure 30-34 Corporate Structure 30 Shareholding Pattern 31 Financials 32-34 Q4 & FY17 Investor Update 16
Slide 17: Consumer & Enterprise deliver growth
Detailed Business Overview Consumer & Enterprise deliver growth Consumer Revenue Segmental Revenues Break-up Test Prep Publishing K-12* 1 Consumer Enterprise 2 20 12 16 17 133 150 105 122 38% 30% 77 share 64 share FY15 FY16 FY17 62% 70% 172 share 150 151 share Enterprise Revenue Corporate Universiti
Slide 18: Consumer Business
CONSUMER BUSINESS Q4 & FY17 Investor Update 18
Slide 19: High revenue growth (YoY) with stable EBITDA Margins
Consumer Business High revenue growth (YoY) with stable EBITDA Margins Strong brand with pan-India presence in Test- Revenues EBITDA Preparation Revenue EBITDA EBITDA % Scalable & asset-light business 172 46.0 41.0 Market leader in Aptitude Products (AP) MBA and Law 27% 27% Test prep offering 28
Slide 20: Growth fuelled by digital strategy
Consumer Business: Growth fuelled by digital strategy Test-Prep in #s Average Pricing of TP courses Enrolments Digital Share% Online Offline Average 88,462 86,636 30,000 24,206 25,000 21,184 31% 18,923 28% 20,000 17,930 15,927 15,000 77,953 16,910 10,000 13% 3,618 2,306 3,939 5,000 - FY15 FY16 FY17
Slide 21: ETEN Acquisition: High growth, High ROE CA + Civils products
Consumer Business: ETEN Acquisition: High growth, High ROE CA + Civils products 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 Pan India Ne
Slide 22: Future Growth strategy
Consumer Business: Future Growth strategy Expand Offerings New Products Grow geographical test prep network Focus on KP portfolio Franchising Esp. Engg/ Medical VSAT as multiplier for existing products Cross-Sell ETEN KP on Career Launcher Digital Expansion Network Introducing live
Slide 23: Enterprise Business
ENTERPRISE BUSINESS Q4 & FY17 Investor Update 23
Slide 24: Higher profits with planned exit from Govt. vocational Business
Enterprise Business Higher profits* with planned exit from Govt. vocational Business Enterprise Revenues Enterprise EBITDA Revenue Revenue adjusted for GVET & Nokia EBITDA EBITDA adjusted for GVET & Nokia 133 131 18 108 105 77 10 11 64 7 7 1 FY15 FY16 FY17 FY15 FY16 FY17 Overall Kestone (Corporate
Slide 25: Knowledge services for Corporates
Enterprise Business: 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 • Product Launches Services ma
Slide 26: Knowledge services for Universities & Corporates
Enterprise Business: Knowledge services for Universities & Corporates Universities CL Media facilitates universities wrt reaching out to the right student set and improving their quality of intake # of Universities Revenue (Cr) Business Solutions Benefits extended to the universities • Project Con
Slide 27: 3 Year Business Strategy
3 YEAR BUSINESS STRATEGY Q4 & FY17 Investor Update 27
Slide 28: Asset-light multi-faceted strategy for growth and high stakeholder returns
Our Strategy Asset-light multi-faceted strategy for growth and high stakeholder returns 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 29: Contents
Contents CL Educate : A sustainable education services play 4-11 Financial Performance 13-15 Strong Business Performance 17-28 Annexure 30-34 Corporate Structure 30 Shareholding Pattern 31 Financials 32-34 Q4 & FY17 Investor Update 29
Slide 30: 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 31: Shareholding pattern
Shareholding pattern Outstanding Shares (March 31, 2017) Key investors > 1% 14,163,278 Investor % Shareholding Gaja Trustee Company Ltd/ GPE (India) Limited 8.5% Non- Institutional, Housing Development Finance Corporation Ltd. 4.2% 31.3% Ashoka PTE/Macquaire Emerging Markets Asian Trading 3.1% PTE L
Slide 32: Consolidated Profit and Loss Report
Financial Statements Consolidated Profit and Loss Report Particulars (Rs Cr) Q4 FY'17 Q4 FY'16 Q3 FY'17 % Chg YoY % Chg QoQ FY'17 FY16 % Chg YoY Net sales 66.7 58.4 49.4 14.3% 35.0% 258.9 261.3 -0.9% Other Operating Income 3.8 8.2 0.2 -53.7% 2060.6% 10.9 12.6 -13.2% Other Income 2.9 2.6 1.9 15.2% 57
Slide 33: Consolidated Balance-Sheet
Financial Statements Consolidated Balance-Sheet Particulars ( Rs Cr) FY'17 FY16 Share capital 14.2 11.9 Reserves and Surplus 343.9 228.6 Shareholder's funds 358.1 240.6 Long-term Borrowings 8.0 25.5 Deferred Tax Liabilities (net) 2.2 1.5 Other Long-term Liabilities 0.4 0.3 Long-term Provisions 3.8 3
Slide 34: Ratios
Financial Statements Ratios Key P&L Ratios FY17 FY16 Growth (%) on Adjusted* Revenue 21% 7% EBITDA Margin (%) 17% 17% Adjusted EBITDA Margin (%) 19% 23% PAT Margin (%) 7% 8% Adjusted PAT Margins (%) 9% 11% *Figures adjusted for GVET and Nokia Businesses Key Balance-Sheet Ratios Financial Ratios FY17
Slide 35: 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: