Aptech Limited · NSE:APTECHT
Aptech — Q3 FY2016 Earnings Presentation
32 slides from Aptech's earnings presentation, Feb 4, 2016
Slide 1: Aptech Limited Investor Update – Quarter Ending 31st Dec 2015
APTECH LIMITED Investor Update – Quarter Ending 31st Dec 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward‐looking statements. The risks and unc
Slide 3: MD & CEO's Message
MD & CEO’s Message Dear Friends, Amidst the global turmoil and market volatility, we are happy to announce a reasonably good set of numbers for Q3 FY16, especially on the profitability front (EBITDA margins went up from 13.4% in Q3 FY15 to 16.5%). Revenue growth has been flat mainly on account no ne
Slide 4: Summary
Summary • Operating revenue of Rs. 362.4 million vs. Rs. 362.3 million in Q3 FY15 • Operating EBITDA was Rs. 59.8 million (23.5% Y-o-Y ↑) • PBT was Rs. 40.9 million (17.6% Y-o-Y ↑) • PAT of Rs. 27.6 million (2.4% Y-o-Y ↑) • Higher effective tax rate as compared to Q3 FY15 due to change in compositio
Slide 5: Financial Results Q3 FY16
Q3 FY16 FINANCIAL RESULTS All financial figures in Rs. million 5 www.aptech-worldwide.com
Slide 6: Revenue & Profitability – Q3 FY16
Revenue & Profitability – Q3 FY16 400.0 43% 50% 40% 350.0 23% 18% 30% 300.0 20% 2% 250.0 10% 0% 200.0 0% -10% 150.0 -37% -20% 100.0 -30% 50.0 -40% 362 362 48 60 24 34 11 7 35 41 27 28 - -50% Operating Revenue* Operating EBITDA Operating EBIT Other Income Profit Before Tax Profit After Tax * Operatin
Slide 7: Expenses – Q3 FY16
Expenses – Q3 FY16 140.0 70.1% 80% 70% 120.0 60% 100.0 50% 40% 80.0 30% 25.0% 60.0 9.5% 20% 10% 40.0 4.4% 0% 0.8% -11.3% -10% 20.0 -17.4% -20% 100 101 128 113 21 18 65 71 25 26 0.2 0.3 8 13 - -30% Employees Cost Training & Marketing & Administration Depreciation Interest Income & Wealth Education Ad
Slide 8: Segment Results – Q3 FY16
Segment Results – Q3 FY16 Segment Revenue Segment EBITDA 101 82 -2 10 Retail Non-Retail Unallocable -41 298 273 61 86 -54 Retail Non-Retail Segment EBIT Capital Employed 85 64 -6 7 -58 -46 Retail Non-Retail Unallocable 271 312 110 100 1,884 1,852 Additional unallocable income and expenses of Rs. 16.
Slide 9: Key Balance Sheet Information
Key Balance Sheet Information Liabilities Assets Receivables 0 387 Debt Trade 0 333 Cash & Cash Reserves & Equivalents 1,865 356 Surplus 1,831 379 Net Fixed Assets Share Capital 399 330 399 338 0.00 500.00 1,000.00 1,500.00 2,000.00 300.00 320.00 340.00 360.00 380.00 400.00 9 www.aptech-worldwide.co
Slide 10: Sub-segment Revenue – Q3 FY16
Sub-segment Revenue – Q3 FY16 Retail Non-Retail 43 Others 22 Others 47 21 Animation & Multimedia 151 166 Assessment & Testing 64 IT Training 82 40 89 0.0000 50.0000 100.0000 150.0000 200.0000 0.0000 20.0000 40.0000 60.0000 80.0000 10 www.aptech-worldwide.com
Slide 11: Key Highlights
Key Highlights • Domestic Retail revenue declined by 7.6% (Y-o-Y) – Majority impact from decline in accrual income in MAAC – Other contributing factors are decline in alliance (only for IT Training) income • International Retail revenue dipped by 9.2% vs. Q3 FY15 – No income from new center sign ups
Slide 12: Key Highlights
Key Highlights • Good traction in new center sign-ups in the domestic market – 28 new centers signed in Q3 FY16 in India vs. 19 in Q3 FY15 – IT Training : 13 (incl. 3 Aptech Networking and 3 Project Bharat); Aptech English : 1; Aptech Aviation : 3; Aptech Banking: 2; Arena : 4; MAAC : 5 • Lower inte
Slide 13: Key Highlights
Key Highlights • Decline in Training & Education expenses by 11.3% due to lower franchisee share on MAAC accrual income and decline in alliance income • 9.5% increase in administration expenses – Increase on account of rentals and repairs & maintenance expenses • Depreciation was Rs. 25.6 million (4
Slide 14: Operating Information Q3 FY16
Q3 FY16 OPERATING INFORMATION All financial figures in Rs. million 14 www.aptech-worldwide.com
Slide 15: Network (# of Centers) By Brand
Network (# of Centers) By Brand Domestic Retail International Retail & Lakme Banking English Aviation MAAC Arena 4 MAAC 26 0 4 29 Aviation 1 31 3 47 45 English 19 96 19 106 41 Arena IT Training 198 73 221 Training 309 124 IT 334 153 0 100 200 300 400 0 50 100 150 200 15 www.aptech-worldwide.com
Slide 16: Regional Distribution International
Regional Distribution International Revenue Network Americas CIS & Americas CIS & 2 2 1 Eastern Europe Europe 1 15 1 33 Middle Middle 8 16 East East 5 28 10 Africa 48 Africa 23 53 99 APAC 108 102 APAC 137 0 20 40 60 80 100 120 0 50 100 150 16 www.aptech-worldwide.com
Slide 17: Employee Data
Employee Data Employee Count as on 31st March 2015 = Employee Count as on 31st December 2015 = 399 384 76 76 110 107 55 54 29 23 129 124 In addition to the above employees, there are 149 non-regular staff as on 31st December 2015 vis-à-vis 72 as on 31st March 2015 17 www.aptech-worldwide.com
Slide 18: Key Business Highlights Q3 FY16
Q3 FY16 KEY BUSINESS HIGHLIGHTS 18 www.aptech-worldwide.com
Slide 19: Business Update
Business Update • Aptech English lead partner appointed for South India at a sign-up fee of Rs. 20 lac • Significant traction in new center sign-ups for domestic retail with 28 new centers signed across all brands • Completed CMAT & GPAT (Jan 2016) registrations with ~93,000 candidates across more t
Slide 20: MAAC's 24FPS 2015 Awards
th MAAC’s 12 24FPS 2015 Awards 20 www.aptech-worldwide.com
Slide 21: Aptech Aviation's Panorama (2nd ed.)
nd Aptech Aviation’s Panorama (2 ed.) 21 www.aptech-worldwide.com
Slide 22: Lakmé Academy – Ahmedabad
Lakmé Academy – Ahmedabad 22 www.aptech-worldwide.com
Slide 23: Lakmé Academy – Ahmedabad
Lakmé Academy – Ahmedabad 23 www.aptech-worldwide.com
Slide 24: MCIT IT Skill Dev Project, Afghanistan
MCIT IT Skill Dev Project, Afghanistan 24 www.aptech-worldwide.com
Slide 25: Career Quest (Pakistan & Qatar)
Career Quest (Pakistan & Qatar) 25 www.aptech-worldwide.com
Slide 26: LATAM CEIT Tender – Panama T3
LATAM CEIT Tender – Panama T3 26 www.aptech-worldwide.com
Slide 27: MAMPU Project Malaysia
MAMPU Project Malaysia 27 www.aptech-worldwide.com
Slide 28: Domestic Campaigns
Domestic Campaigns 28 www.aptech-worldwide.com
Slide 29: Domestic Campaigns
Domestic Campaigns 29 www.aptech-worldwide.com
Slide 30: International Campaigns
International Campaigns 30 www.aptech-worldwide.com
Slide 31: Thank You
THANK YOU 31 www.aptech-worldwide.com
Slide 32: About Aptech
About Aptech Aptech commenced its education and training business in 1986 and has globally trained over 7.2 million students. Aptech has presence in more than 40 emerging countries through its two main streams of businesses – Individual training and Enterprise Business. As a leader in career educati