S Chand And Company Limited · NSE:SCHAND
S Chand And — Q2 FY2021 Earnings Presentation
42 slides from S Chand And's earnings presentation, Nov 11, 2020
Slide 1: Cover letter to stock exchanges
-! =F S Chand And Company Limited Reqistered Office: A-27. 2nd Floor, Mohan Co-Operative Industrial Estate, New Delhi - 110044, India. S.CHAND I I I P:+91 11 4973 1800 F:+91 11 4973 1801 E: info@schandgroup.com www.schand�roup.c om GROUP Date: November 11, 2020 To To Listing Department Listing Depa
Slide 2: Q2 – FY2020-21 Investor Update
S. Chand and Company Limited Q2 – FY2020-21 Investor Update 11th November 2020
Slide 3: Summary
SUMMARY Q2FY21 & H1FY21 1. Highlights 2. Ed-Tech Initiatives 3. Financials 4. Looking Ahead 2
Slide 4: Q2FY21 & H1FY21 Highlights
SUMMARY Q2FY21 & H1FY21 1. Highlights 3
Slide 5: Numbers Speak - Turnaround Strong, Losses Reducing
NUMBERS SPEAK - TURNAROUND STRONG, LOSSES REDUCING, STRATEGY BEARING FRUIT Q2FY21 H1FY21 Revenues from Operations (Rs M) Revenues from Operations (Rs M) 365 1,080 879 UP 23% 266 UP 37% YoY 683 YoY 106 Q2 FY19 Q2 FY20 Q2 FY21 H1 FY19 H1 FY20 H1 FY21 REVENUES REVENUES EBITDA (Rs M) PAT (Rs M) EBITDA (
Slide 6: Key Numbers – Strong Show During Covid Crisis in H1FY21
KEY NUMBERS – STRONG SHOW DURING COVID CRISIS IN H1FY21 23% 69% 71% 41% Revenue from Increase in Reduction Reduction Operations Gross in EBITDA in PAT (YoY %) Margins losses Losses (YoY %) (YoY %) (YoY %) Learnflix – India’s Rs 130m 29% most affordable Learning app Cash flow from operations Reductio
Slide 7: Key Highlights
KEY HIGHLIGHTS • Strong cost control continues – Operating expenses lower by 32% YoY for Q2FY21 and 29% YoY for H1FY21. Q2FY21 Vs. H1FY21 Vs. (In Rs m) Q2FY21 Q2FY20 Q2FY19 H1FY21 H1FY20 H1FY19 FY20 2QFY20 (%) H1FY20 (%) Full benefit of Revenue from Operations 365 266 106 37% 1,080 879 683 23% 4,294
Slide 8: Key Highlights
KEY HIGHLIGHTS • Learnflix – Showing strong growth. India’s most affordable learning app – ‘Learnflix’ showed strong traction during H1FY21. We have currently over 110K downloads and over 19K paid subscribers. As the move to online learning intensifies, we expect Learnflix to grow stronger in coming
Slide 9: Key Highlights
KEY HIGHLIGHTS • Operating Parameters • Trade Receivables reduced to Rs2,365m during Q2FY21 vs. Rs3,349m as of Q4FY20. In terms of receivable days, it stood at 192 days (vs. 285 days in Q4FY20), a reduction of 93 days during H1FY21. • Inventory reduced to Rs1,785m (vs Q4FY20: Rs2,014m) during Q2. Th
Slide 10: Major Ed-Tech Initiatives
Major Ed-Tech Initiatives 2. 2.1 Mylestone 2.2 Learnflix 2.3 Educate 360 9
Slide 11: Learnflix – India's Most Affordable Learning App
LEARNFLIX – S CHAND'S B2C & B2B2C OFFERING - INDIA'S MOST AFFORDABLE LEARNING APP Offering Digital content Adaptive test Self paced learning Analytics and reports Grades 6 to 10 Channel Sales & Marketing Support Revenue model B2B2C: Distributing through schools ➢ A strong sales team that connects wi
Slide 12: Learnflix – Overview
LEARNFLIX – OVERVIEW Takes learning one step Reinforce- Concept ahead by providing ment Revision advanced individualized Concept learning Try Out Practice ➢ Currently available for grades 6th to 10th for maths and science subjects Chapter Video test ➢ The Spiral Learning Pedagogy ensures all concept
Slide 13: Learnflix – Students Can Personalize Their Learning Paths
LEARNFLIX – STUDENTS CAN PERSONALIZE THEIR LEARNING PATHS… Flexibility to choose the time, place and Extremely focused and guided analytics to pace of learning help students, teachers and parents to monitor performance Reinforcement of previous Test level analytics 360° ➢ Score, Accuracy, Questions,
Slide 14: Mylestone – S Chand's B2B Curriculum Offering
MYLESTONE – S CHAND’S B2B CURRICULUM OFFERING Till grade 8 Progress report Teachers hand Student Digital content Training & support Resource kits Teacher/ Student with analytics book with lesson Books app plans Offering Grades 9 to 12 Digital content Adaptive test Self paced learning Analytics and r
Slide 15: Mylestone – S Chand's B2B Curriculum Offering
MYLESTONE – S CHAND’S B2B CURRICULUM OFFERING 14
Slide 16: Mylestone – Process to Assist School Implementation
MYLESTONE – STRONG PROCESS IN PLACE TO ASSIST THE SCHOOL WITH IMPLEMENTATION Pre-implementation Post-implementation School diagnostic Training on School leaders Teachers Lesson Training on time Through survey classroom induction induction observation I management and display on-site visit Create and
Slide 17: Mylestone – Improvement in Schools Post Adoption
MYLESTONE – IMPROVEMENT IN SCHOOLS POST ADOPTION 16
Slide 18: Mylestone – The Business Case
MYLESTONE – THE BUSINESS CASE India is amongst the world’s largest K12 markets with strong preference for private schools K-12 enrolment in India Growth in K12 enrolment (in millions) 300 ➢ With over 245Mn K-12 280 enrollments India is one Millions 260 250 250 250 245 240 of the largest k-12 240 220
Slide 19: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? o Affordable private schools can be defined as schools charging annual fee in the range of 12k to 60k. Schools charging below 12k fees can be termed as low fee schools o According to DICE report, around 79% of private schools charge less than 5000Rs per month. That i
Slide 20: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? Affordable private schools face multiple challenges that negatively impacts learning outcome Lack of proper assessment and reports Poor quality of teachers and high attrition Assessments are based on rote learning and no analytical tool is used to Scarcity of trained
Slide 21: Mylestone – Growth Story So Far
MYLESTONE – GROWTH STORY SO FAR 2020-21E 16 400+ 5000+ 1,60,000+ states schools teachers students 2019-20 15 350+ 4500+t 1,05,000+ states schools eachers students 2018-19 9 165 2000+ 60,000+ states schools teachers students 2017-18 7 67 800+ 20,000+ states schools teachers students 20
Slide 22: Educate – Overview
EDUCATE 360 – OVERVIEW P R O D U C T PA C K A G E E-Book Teacher’s Manual Printed Book Teacher Training Digital Supplements Assessment Integrated Platform Internet Links Concept Videos Ease of Access 21
Slide 23: Educate – Overview
EDUCATE 360 – OVERVIEW In Sync with the National Focusses on developing Education Policy (NEP)2020 2 1 st C e n t u r y S k i l l s Creativity • Art • Digital Digital Education Learning Learning Self- Confidence Communication / Self- Periodic Collaborative Esteem Assessment Learning Integrated Learn
Slide 24: Educate 360 – Product View
EDUCATE 360 — PRODUCT VIEW O- = == S.CHAND GROUP User Name www.schandgroup.com
Slide 25: Educate 360 – Teachers View
EDUCATE 360 – TEACHERS VIEW 24
Slide 26: Educate 360 – Teachers View
EDUCATE 360 – TEACHERS VIEW 25
Slide 27: Educate 360 – Students View
EDUCATE 360 – STUDENTS VIEW 26
Slide 28: Educate 360 – Students View
EDUCATE 360 – STUDENTS VIEW 27
Slide 29: Educate 360 – Students View
EDUCATE 360 – STUDENTS VIEW 28
Slide 30: Financials
— —— S.CHAND GROUP 3. Financials www.schandgroup.com
Slide 31: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE H1FY21 Revenue from Operations: Up 23% Employee Costs: Down 26% YoY S&D Exp: Down 51% YoY PAT Loss: Down by 41% 30
Slide 32: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE (₹ in millions) As of September As of March 31, Particulars 30, 2020 2020 Unaudited Audited Assets Non-current assets Property, plant and equipment 906 959 Intangible assets 4,435 4,301 Right to use asset 537 623 Capital work-in-progress 1 1 Intangible assets under
Slide 33: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE As of September 30, As of September 30, (₹ in millions) 2020 2019 Unaudited Unaudited A. Cash flow from operating activities Loss before tax (621) (1,260) Adjustment to reconcile loss before tax to net cash flows Depreciation and amortisation expenses 193 178 (Gain
Slide 34: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE On back of the ongoing uncertainty around opening of schools and colleges, we expect a shift of working capital cycle between quarters and lumpiness of collections in the 2H of the year. 33
Slide 35: Shareholding Structure
SHAREHOLDING STRUCTURE As of 11th November, Market Data Key Institutional Investors - As Other Institutional Investors holding less 2020 % Holding of Sept 2020 than 1% - As of Sept 2020 Market Capitalization (Rs Mn) 2,180 Price (Rs) 62 Everstone Capital Partners II LLC 9.4% Equity Intelligence India
Slide 36: Result Conference Call Details
RESULT CONFERENCE CALL DETAILS 35
Slide 37: Looking Ahead
4. Looking Ahead 36
Slide 38: S Chand Group Journey
S CHAND GROUP JOURNEY Destination Success - Digital Classroom S Chand Publishing 37
Slide 39: S Chand Group Product Strategy for the Future
S CHAND GROUP PRODUCT STRATEGY FOR THE FUTURE Digital Content • Textbooks • Multimedia Analytics and Insights • Practice Tests • Student 01 • Teacher 05 • School Live Classes • Parent • Video conferencing platform • Calendar scheduling Teacher Connect • Recorded classes • Teacher published content 0
Slide 40: Looking Ahead
LOOKING AHEAD 2. = —— —~—7 S.CHAND GROUP Getting ready for increased adoption of our Ed-Tech solutions in post Covid world FY21 Medium Term Looking forward to a normal sales season for print business. y Strong adoption of Learnflix & Mylestone during FV 225 Post Pilot phase, full roll out of ‘Educat
Slide 41: New Education Policy – Big Positive Going Ahead
NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD • Announcement of Draft New May, 2019 Education Policy (NEP) • The New Education Policy (NEP) was formally adopted by the Union Government in July, 2020. • Adoption of the New Education • Expected release of the New National Curriculum Framework (NCF)
Slide 42: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by S. Chand & Company Limited (“S. Chand” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, fin
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