Al Khaleej Training & Education Co. · TADAWUL:4290
Al Khaleej Training & Education — Investor Presentation (September 2020)
51 slides from Al Khaleej Training & Education's investor presentation, Sep 30, 2020
Slide 1: Investor Presentation
Alkhaleej Training and Education Company Investor Presentation For the month ending Sept 30, 2020 CONFIDENTIAL
Slide 2: Contents
Contents 1 Organization Chart 3 2 Training 4 3 Education – Schools 16 SECTIONS 4 Education – Universities 27 5 BPO/Contact Center 35 6 Quarter Results 44 Page - 2
Slide 3: Business Units, Subsidiaries and Investments
Alkhaleej Training and Education Co Business Units, Subsidiaries and Investments UAE KSA Egypt US/UK Franklin Covey Alkhaleej Alkhaleej Linquaphone Middle East Training Training UK 61% 100% 57% 100% Smart Link New Horizon FastLane Jobzella BPO/CC US 80% 60% 100% 15% Schools & ADMS Universities 90% 1
Slide 4: Training Overview
Training Overview
Slide 5: Vision and Mission
Vision and Mission To be the clients’ first choice through VISION their journey of knowledge We are empowered and inspiring leaders who facilitate your journey of knowledge for a better career through the use of innovative training methodologies MISSION Training Division Page - 5
Slide 6: Values
Values Professional conduct in all endeavors (trust, quality, work ethic, honesty) Passion (initiative, drive, empowered) Exceptionally positive attitudes (inspiring, innovative) Teamwork (shared mission, effective communication, mutual respect, caring) Commitment (loyalty, and dedication)
Slide 7: Timeline – Training
Timeline – Training Overview Company foundation & NH – DE IPO – AKTE POST IPO acquisitions 1993 1994 1998 2002 2007 2009 2014 2020/24 Opening and Opening our Exclusive Operating and Placed on the Complete (100 %) Listed on Forbes Open NH CLD starting our 1st centers in franchise rights of managing G
Slide 8: Business Overview
Business Overview • One of the largest independent training company in the Kingdom of Saudi Arabia with a highly qualified team of more than 800 employees • Training Sector has more than 80 branches for ladies and men across KSA, and serves more than 2,500 corporates and over 50,000 individual clien
Slide 9: Services
Services Computer & English Language Training are currently the largest contributors to revenues within the Training Sector, with limited scope for exponential growth. Training Sector aims to extend its service offerings in the Financial & Management Training vertical to tap the next wave of economi
Slide 10: Products
Products Master franchise agreements with international brands for KSA and the Middle East region allows the company to offer training across verticals . Going forward, Training sector plans to leverage on the same business model to expand its products/ service offerings Provides a computer Teach En
Slide 11: Delivery Methodology
Delivery Methodology Currently, Traditional Instructor Led Training (TILT) is the dominant delivery medium. However, given the market potential and increasing acceptance of online/ e-Learning medium, Training Sector is increasingly expanding its offerings in Online Anytime and Online Live to grow it
Slide 12: Our Valued Clients
Our Valued Clients Private 50% Consumer Corporate 55% 45% Govt 50% Smart Link Page - 12
Slide 13: Geographic Markets
Geographic Markets Training Sector offers comprehensive range of product/services with wide geographic spread across the country, and is looking to expand its geographic footprint outside KSA predominantly, in the Middle East region to strengthen its market position Saudi Arabia Outside Saudi Arabia
Slide 14: Competitive Landscape
Competitive Landscape Training Sector does not perceive any of the players operating in Saudi market as its direct competitor due to market leadership position it enjoys and the variety of courses it offers across various verticals. However, below can be considered as the company’s closest peers in
Slide 15: Education – International Schools Overview
Education – International Schools Overview
Slide 16: Vision and Mission
Vision and Mission To be the first choice for K-12 education in the Kingdom of Saudi Arabia VISION To empower students to think creatively, to value diversity, to pursue a passion for learning and to contribute in a positive way to society while continuing to embrace the values of society. MISSION E
Slide 17: Values
Values Collaboration Facilitating team work and open communication Respect Quality Providing an environment Consistency in delivering which fosters respect and quality education embraces diversity Values Commitment Integrity Committed to fulfilling our Upholding principles which responsibility towar
Slide 18: Timeline – Schools
Timeline – Schools The Group operates a series of K-3 and K-12 schools and offers both Arabic and international curriculum Overview Currently, the segment manages and operates following schools chain in Saudi Arabia Rowad Al Khaleej International School Baraem Rowad Al Khaleej International
Slide 19: Service
Service Education Sector operates a chain of Kindergarten, K-3 & K-12 schools which offer a combination of Arabic and American Curriculum Industry Education K-3 schools (for children 4 to 8 years) Current Service Offerings K-12 schools Target Saudi families which fall in middle and high-income brack
Slide 20: Current Business Model
Current Business Model Currently, Education Sector is following Owner-Operator and Land & Building business models Owner - Operator Model Responsible for all activities from Land acquisition to school operations School Operations Land Development of Investment in Al Khaleej (Maintenance of Building
Slide 21: New Business Model
New Business Model Education Sector is leveraging on its brand to explore new business models to further accelerate its growth and penetrate new markets by focusing on its core competency of operating schools Operator Model Land and buildings are owned by a third party and the school operations are
Slide 22: Acquisitions
Acquisitions Alkhaleej Training signs MoU to acquire 60% of Al-Raqi Private Schools in Riyadh AL-ROQI SCHOOLS: Alkhaleej Training and Education Co. extended the non-binding memorandum of understanding (MoU) with Al-Raqi National Schools Co. Ltd to acquire a 60% stake in Al-Raqi Private Schools Compa
Slide 23: Acquisitions
Acquisitions Alkhaleej Training signs MoU with Alkhabeer Capital to acquire 7 schools for cash, share swap Alkhabeer Capital – 7 Schools Alkhaleej Training and Education Co. announced that the non-binding memorandum of understanding (MoU) signed with Alkhabeer Capital expired without reaching any ag
Slide 24: Geographic Markets
Geographic Markets Education Sector is present in three major cities namely, Riyadh, Dammam, & Jeddah, and is mulling to expand its geographic presence in Tier-2 and Tier-3 cities across KSA and other GCC/ regional markets Education Division Page - 24
Slide 25: Competitive Landscape
Competitive Landscape Key Players in K-12 Segment in Saudi Arabia Company Name Overview Curricula Accreditation Operates national & international National Schools: Arabic Ministry of Education, AdvancEd, schools and training centers Curriculum CIS Accredited, Cambridge International schools: IGCSE-A
Slide 26: Education – Universities Overview
Education – Universities Overview
Slide 27: Vision and Mission
Vision and Mission To be the first choice for Universities in their journey of knowledge VISION To promise the benefit of our international educational experience to provide education for life which develops human resources and businesses MISSION University Division Page - 27
Slide 28: Values
Values Team-work Collaboration and open communications amongst departments Customer Satisfaction Accountability Deliver on what Meeting stakeholder we promise expectations Values Commitment Integrity Keeping our Uncompromising quality of promises our services University Division Page - 28
Slide 29: Business Overview
Business Overview University Projects Division has the license to operate only in the Education sector, however, the division is considering opportunities to offer existing services in other sectors as well Universities University Division Page - 29
Slide 30: Service
Service University Projects Division generally provides manpower and staffing services to universities for managing Preparatory Year Programs (PYPs), and is mulling to provide current service offerings to allied and other sectors such as Healthcare Industry Education Services Current Manages and run
Slide 31: Target Customers
Target Customers Focuses on educational projects related to preparatory years in Saudi universities, where it manages and provides universities with professional teaching staff University of Tabuk Qassim University Majmaah University Universities University of Hail Projects King Khalid University Un
Slide 32: Geographic Markets
Geographic Markets University Projects Division provides service offerings to Universities in Saudi Arabia University Division Page - 32
Slide 33: Competitive Landscape
Competitive Landscape As the division operates only in Saudi Arabia, below can be considered as it’s closest peers in the domestic market Education Al Jazeera Academy Quality Education Saudi British Experts Holding Company Center University Division Page - 33
Slide 34: BPO/Contact Center Overview
BPO/Contact Center Overview Page - 34
Slide 35: Vision & Mission
Vision & Mission To lead and dominate the BPO industry at a national, regional and global level, while providing the best working VISION environment for ambitious youth To constantly provide BPO services in an exemplary manner, leading by example & continuously raise the bar towards excellence MISSI
Slide 36: Values
Values Honesty We tell our clients exactly what to expect from us, and what we really are capable of providing them with Smartness Commitment We hire smart people, we provide We do our best to keep our smart training, we implement smart promise to deliver…the best of technology, we follow smart what
Slide 37: Timeline – Contact Center
Timeline – Contact Center 4500 4000 3548 3613 3654 Current 3500 Employees 3000 2396 2500 2413 2003 2000 1780 43% 1500 1431 1107 1000 57% 509 537 500 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Smart Link Page - 37
Slide 38: Service
Service Currently, Contact Center services constitute majority of revenues for Smart Link. Going forward, the Company intends to focus on growing Outsourced Manpower Provision and Business Process Outsourcing Services IT Services: Industry Business Process Outsourcing Current Business Activities Con
Slide 39: Services
Services Customer service Systems & Applications BPO, qualified staff provision, operation development and integration solutions Out-sourced / In-housed contact center & management development, operation and management. IT & Contact Center Enterprise Customer services operation General/Advanced cust
Slide 40: Target Customers
Target Customers Operational Performance Smart Link is a regional pioneer in various contact centre aspects as of technical, administrative, advisory and operations for both government and private business sectors CLIENTS SERVED BPO PROJECTS 47 +84 CLIENTS % CURRENT CLIENTS 53% 60 CLIENTS CC PROJECT
Slide 41: Seats/Geographic Markets
Seats/Geographic Markets Smart Link enjoys wide presence across the Kingdom and plans to expand its reach both in the domestic and international markets Ar’ar 150 Seats Saudi Dammam 600 Seats Arabia Jeddah 520 Seats Riyadh 2,400 Seats Egypt Cairo 100 Seats Seats Total Seats 3,770 Smart L
Slide 42: Competitors
Competitors Smart Link is the largest standalone contact center service provider in Saudi Arabia and the broader Middle East region Local Excellent Solutions SolexPlu Extensya CCC Etisal International Trading Co. Ltd. International Peers TCS BPO WIPRO BPO SERCO Smart Link Page - 42
Slide 43: For month ending Sept 30, 2020 Results & Segment Analysis
For month ending Sept 30, 2020 Results & Segment Analysis
Slide 44: Executive Summary
ALKHALEEJ TRAINING AND EDUCATION COMPANY PO BOX 295300, Riyadh 11351 - Kingdom of Saudi Arabia – www.alkhaleej.com.sa Executive Summary • Total revenue as of Sept 30 2020 amounts to SR 579 million, compared to last year YTD Sept 30 2019 amounts to SR 624 million. • YTD profit before Zakah for Sept 3
Slide 45: Training
ALKHALEEJ TRAINING AND EDUCATION COMPANY PO BOX 295300, Riyadh 11351 - Kingdom of Saudi Arabia – www.alkhaleej.com.sa Training Sept 30 2020 BPO/CC University Schools Total YTD 2020 Revenue Computer Language Fin & Mgst Total Training 18% 23% Revenue 63,054,991 26,742,247 44,847,893 134,645,131 274,34
Slide 46: Training Sector
1 Training Sector This segment provides training in IT, English Language, Soft Skills, and other areas This segment is expected to continue growth at 2 - 3% in 2021 and 4% in 2022. Further positive signs of improvement are expected during the year as new contracts are awarded to the company.
Slide 47: Education Sector - Schools
2 Education Sector - Schools Schools and Kindergartens The company will follow the model of having developers build purpose-built K-12 schools and Al Khaleej Training and Education Company will lease and operate the school on long term basis Year 2020-21 2021-22 2022-2023 2023-2024 2024-2025 Dammam
Slide 48: Education Sector - Schools
2 Education Sector - Schools International Schools and Kindergartens We expect to reach 20% net profit margins by 2024/25. Expected Revenue Year 2020-21 2021-22 2022-2023 2023-2024 2024-2025 Dammam 1 59,111,700 71,750,000 83,600,000 83,600,000 88,000,000 Dammam 2 5,808,000 10,400,000 11,200,000 11,9
Slide 49: Educational Projects - Universities
3 Educational Projects - Universities University Projects:- 18th year, a Preparatory Year Program launched by all Saudi Universities. Alkhaleej is running all or part of these programs (English, IT, and Soft Skills). This sector is showing improvement as we received new projects: 2020 Revenue 95
Slide 50: BPO/Contact Center
4 BPO/Contact Center The sector has managed to achieve required growth in 2020 under the current circumstances and we expect to see sustainable growth over the forecast period As present, we have 3,770 seats and 3,700+ agents A source of Saudization in the Company Expect this Sector to grow
Slide 51: END OF PRESENTATION
END OF PRESENTATION Page - 51
Alkhaleej Training and Education Company — Investor Presentation (September 2020) on 6ix