Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q1 FY2018 Earnings Presentation
31 slides from Cl Educate's earnings presentation, August 2017
Slide 1: CL Educate Ltd. Investor Presentation
CL Educate Ltd. Investor Presentation AUGUST 2017 BSE: 540403 | NSE: CLEDUCATE 1
Slide 2: Safe harbor
Safe harbor This presentation has been prepared by CL Educate Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person. This presentation and its contents are confidential and should not
Slide 3: Contents
Contents Q1 FY 18 Update Annexure Company Overview Business Overview Vision 2020 Corporate Structure 3 Q1FY18 Investor Presentation
Slide 4: Key changes IND-AS and GST
Q1’FY18 Results Review Key changes IND-AS and GST INDAS transition More components of income are deferred over the life of service Deferred revenue has gone up by Rs 5 Cr GST implementation Conservative marketing spends by clients due to less clarity on GST policy Corporate and instituti
Slide 5: Q1'FY18 Consolidated Results Review
Q1’FY18 Consolidated Results Review Test prep billings up 19%, Revenue from operations up 2.8% despite GST impact to enterprise business, Total revenue up 2.3% Consolidated financials, In Rs Cr Total Revenue EBITDA from cont. ops/ Margin PBT from cont. ops/ Margin Revenue Mix* (Q1FY18) 74 75 EBITDA
Slide 6: Operating numbers
Q1’FY18 Results Review Operating numbers Consumer revenue up by 12.8% driven by test prep • Test prep billings have grown 19% due to better price realization in certain products • MBA and Law continue to grow, while Bank SSC volumes declined • Number of centers increased from 157 to 192 YoY • ETEN c
Slide 7: Consumer revenue up by 12.8% driven by test prep
Q1’FY18 Results Review: Consumer Consumer revenue up by 12.8% driven by test prep Consolidated financials, In Rs Cr Consolidated financials, In Rs Cr Operating Revenue Test prep – EBITDA* Publishing – EBITDA* 50 44 EBITDA EBITDA(%) EBITDA EBITDA(%) 6 5 20.9% 20.00% 18.4% 17.8% 18.00% 16.00% 14.00% 1
Slide 8: Enterprise revenue down due to GST impact, expected to pickup in Q2
Q1’FY18 Results Review: Enterprise Enterprise revenue down due to GST impact, expected to pickup in Q2 Consolidated financials, In Rs Cr Revenue Corporate –EBITDA* Institutional – EBITDA* 27 2 26 1 EBITDA EBITDA(%) EBITDA EBITDA(%) 5.1% 24.3% 3.6% 25 24 1.3 0.5 0.9 -2.7% Q1FY17 Q1FY18 Q1FY17 0.0 Q1F
Slide 9: CL Educate increases stake in 361 DM to expand Enterprise offerings
CL Educate increases stake in 361 DM to expand Enterprise offerings CL has committed an additional Rs 8 Cr in research-led edu-tech Strong Synergies company • CL can cross-sell and develop new products to deliver online globally • Expansion in CL’s offerings to corporates and universities • Both com
Slide 10: Key focus areas for next 2-3 years
Key focus areas for next 2-3 years Strengthen core consumer businesses Scaling the Enterprise business Widen and deepen product Widen and deepen Client /channel matrix participation – productise offerings Leverage ETEN to optimise – higher margins delivery cost and increase margin Leveraging
Slide 11: Shareholding pattern
Shareholding pattern Outstanding Shares (June 30, 2017) Key investors > 1% 14,163,278 Non- Institutional, 25.0% Investor Share holding(%) GPE (INDIA) LTD/ GAJA TRUSTEE COMPANY PVT LTD 8.46 SUNDARAM MUTUAL FUND A/C 5.24 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.20 Promoter, DSP BLACKROCK MICR
Slide 12: Consolidated Profit and Loss Report
Financial Statements Consolidated Profit and Loss Report Particulars (Rs Cr) Q1 FY'18 Q1 FY'17 % Chg YoY Q4 FY'17 % Chg QoQ FY'17 FY16 % Chg YoY Net sales 73.0 71.0 2.8% 70.5 3.5% 269.8 273.9 -1.5% Other Income 2.4 2.7 -10.1% 2.9 -16.8% 9.2 8.4 9.3% Total Revenue 75.4 73.7 2.3% 73.40 2.7% 279 282 -1
Slide 13: Consolidated Segmental Analysis
Financial Statements Consolidated Segmental Analysis Particulars (Rs Cr) Q1 FY'18 Q1 FY'17 Segment Revenue Consumer Test Prep 43.9 39.0 Consumer Publishing 5.6 4.8 Enterprise Corporate 24.2 25.5 Enterprise Institutional 1.5 1.8 Others 0.6 2.6 Inter-segment (2.7) (2.8) Total 73.0 71.0 Segment Result
Slide 14: Contents
Contents Q1 FY 18 Update Annexure Company Overview Business Overview Vision 2020 Corporate Structure 14 Q1FY18 Investor Presentation
Slide 15: Operating in sizable $100 bn+, fast-growing industry
Indian Education Landscape Operating in sizable @$100 bn+, fast-growing industry 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 Entreprene
Slide 16: CL Educate today
Who we are CL Educate today CL Educate in #s (FY17) Educating learners across significant lifecycle 14 to 24 years – Consumer Vertical Rs 277 Cr Adjusted* Revenue Test-Prep –Multiple products delivered through multiple channels 12 test prep products 21% YoY Adj Revenue Growth 3 Channels of d
Slide 17: Unique Consumer/Enterprise mix
Key differentiators Unique Consumer/Enterprise mix India’s leading Education Services Company Test Prep Deep ‘Moat’ from vast product-geographical portfolio mix Established reputed household brands in Consumer One of the best execution capabilities in Enterprise Students ~87,000 Professional
Slide 18: 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 19: Strong team, complete focus on governance & processes
Strong ethos Strong team, complete focus on governance & processes Satya Narayanan R., Gautam Puri, Nikhil Mahajan, Professionally Chairman & Executive Director Vice Chairman & Managing Director Executive Director & CEO Enterprise business qualified, • 19+ years of experience in • 19+ years of exper
Slide 20: Contents
Contents Q1 FY 18 Update Annexure Company Overview Business Overview Vision 2020 Corporate Structure 20 Q1FY18 Investor Presentation
Slide 21: Comprehensive product portfolio in Knowledge & Career Services
CL’s portfolio Comprehensive product portfolio in Knowledge & Career Services CL Educate Ltd MBA I Law I Bank/SSC I Aptitude Products (AP) International Test-prep Consumer Knowledge Products (KP) IIT I Medical I CA I Civils GK Publications Pvt. Ltd Services Publishing CL Educate Integrated Knowledge
Slide 22: Both Consumer & Enterprise delivering growth
Detailed Business Overview Both Consumer & Enterprise delivering growth Consumer Revenue Segmental Revenues Break-up Test Prep Publishing K-12* 1 Consumer Enterprise 2 20 12 16 17 133 150 105 38% 122 30% 77 share 64 share FY15 FY16 FY17 62% 70% 172 share 150 151 share Enterprise Revenue Corporate Un
Slide 23: Leader in Test-Prep Segment
Consumer Vertical Leader in Test-Prep Segment Growing Brand Equity from Sustainable Strengths Consumer Most comprehensive product-reach portfolio: 12 National Test-Prep leader 1 product groups + Network of 192* centers pan India 62% Revenue Share & ~27K online users in FY17 Strong Publications for t
Slide 24: Test prep is a Rs 37,800cr test prep market
Test prep is a Rs 37,800cr test prep market Number of students served by CL wrt registered students in FY17 22,224 934 36,326 ~2.5 Lakhs ~47 Lakhs ~11 Lakhs 17,640 1,580 ~50K ~11 Lakhs Number of students served by CL (in orange) vs. total registered students (in black) Note:* Have been served CL in
Slide 25: Knowledge based services for Corporates, Educational Institutions
Enterprise Vertical Knowledge based services for Corporates, Educational Institutions Differentiated offerings + One of the best execution capabilities Enterprise Unique Learning cum productivity For Corporates – Knowledge Services, 38% Revenue Share DNA in Corporate services Integrated Marketing Se
Slide 26: 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 27: Contents
Contents Q1 FY 18 Update Annexure Company Overview Business Overview Vision 2020 Corporate Structure 27 Q1FY18 Investor Presentation
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 Q1 FY 18 Update Annexure Company Overview Business Overview Vision 2020 Corporate Structure 29 Q1FY18 Investor Presentation
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 Development Specialist K-12 Test preparation for test prep, publishing Research Incubation Career Launcher focused education Integrated Bus
Slide 31: CONTACT US
CONTACT US For any Investor Relations queries, please contact: Ruchika Govila, AVP – Finance & Strategy Sudhir Bhargava, Chief Financial Officer CL Educate Ltd. CL Educate Ltd. Phone: +91-11-41280800 Phone: +91-11-41280800 Email: investors@careerlauncher.com; Email: investors@careerlauncher.com ruch