Slide 1: Annual Analyst Meet - June 2018
ANNUAL ANALYST MEET - JUNE 2018
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue, or any solicitation or any offer to purchase or subscriber for, any securities to any person in any jurisdiction to whom or in which such offer or solicitation
Slide 3: Our Genesis: The Power Behind Zee Learn
GROUP OUR GENESIS THE POWER BEHIND ZEE LEARN
Slide 4: Led by the visionary Dr. Subhash Chandra
Led by the visionary Dr. Subhash Chandra Started in 1976 as a commodity trading and export firm Today we are amongst India’s largest conglomerates with turnover of USD 2.4 bn (FY17) and 10,000+ employees Presence in Media, Packaging, Entertainment, Technology-enabled Services, Infrastructure Develop
Slide 5: The Essel Group - Key offerings
The Essel Group —- Key offerings MEDIA Zee Entertainment Enterprises Ltd 1st Indian satellite channel + 2,500 Crore viewers across 167 countries Zee Learn Ltd India's leading educational organisation, setting benchmark in the education space Zee Media Corporation India’s largest news network with 10
Slide 6: Zee Living Shirpur Gold Refinery
From Mumbai, Ahmedabad, Pune, Jaipur, Bengaluru and Indore. Zee Living Shirpur Gold Refinery Guide to natural living and Asias largest gold refinery wellness.
Slide 7: Sector Overview
Sector Overview
Slide 8: Sector Overview: Indian Education
Sector Overview: Indian Education EDUCATION SPEND 2020 E Learning, 3% Stationery, 3% Test Preparation, 10% Others, 1% Tutoring, 11% K12, 48% Teacher Training, 1% Vocational Training, 2% Higher Education, 18% Preschool, 3% Public and Private spends on education – US$ 100 bn; set to grow to US$ 180 bn
Slide 9: Indian Education Sector
Indian Education Sector India’s education sector is expected to reach US$ 180 bn by 2020. – Growing in double digits over the last 5 years; Expected to grow by CAGR of 16% till 2020. – Age Bracket 0-34 has c. 60% of total population of the country. Current 0.8 Bn people in this segment to become 1.2
Slide 10: Sector Overview: Pre-school
Sector Overview: Pre-school Market – Current Market Size: US$ 2 Bn ; Expected Market size by 2022 - US$ 5 Bn – Expected to grow at a CAGR of 23% by 2022 – Low penetration of pre-schooling in India Gross Enrollment Ratio of 10.9% at all India level as compared to 100% in France or Scotland Only 1
Slide 11: Sector Overview: K-12 Schools
Sector Overview : K-12 Schools Market – Market Size for private player is US$ 13.44 Bn – Expected Market by 2020 would be US$ 31.7 Bn; Expected CAGR 19% – Online learning in Indian education system has changed its scenario, with its reach and economical access. For EduTech , sector is emerging out t
Slide 12: Sector Overview: Vocational Education / Skill development
Sector Overview : Vocational Education / Skill development Market Size • 2014 Market Size US$ 1.35 Bn • Estimated market size in 2020 – US$ 5.1 Bn Growth Drivers – Inefficient public education system lacking employability skills based education – At present, only 10% of the Indian workforce is recei
Slide 13: Sector Overview: Test Preparation and Tutoring
Sector Overview : Test Preparation and Tutoring Market Size • Test preparation market size – 2012 Estimates ranging from US$ 3.75 Bn to US$ 4.8 Bn • Estimated market size in 2020 – US$ 11.27 Bn • Tutoring market size – US$ 3.1 Bn (2012) • Estimated market size in 2020 – US$ 9 Bn Growth Drivers – Low
Slide 14: Sector Overview: Teacher Training / ICT / EPO
Sector Overview : Teacher Training / ICT / Education Process Outsourcing (EPO) Market Size – Current Market Size of teacher training is Negligible – Expected Market by 2020 ~ US$ 406 Mn – Of c.4 million classrooms in India, only 0.15Mn are ICT enabled. – World wide Education Process Outsourcing (EPO
Slide 15: Sector Overview: Training & Manpower
Sector Overview : Training & Manpower Market Size – Rs.20,000 Cr Market, with 2% penetration of the possible employable size in India. Projected to touch Rs. 60,000 Cr by 2018. – Sectors with high demand for skilled manpower • construction, retail, beauty & wellness, textile, tourism & hospitality,
Slide 16: About Zee Learn
About Zee Learn
Slide 17: Zee Learn Ltd: Evolution / Journey
Zee Learn Ltd: Evolution / Journey 2018 2017 Entered into Manpower & Training vertical through 2014 ‘Liberium’ Company owned company 2012 operated Kidzee centers /K- 12 schools 2011 2010 2008 2006 2004 2003 1994
Slide 18: Zee Learn - A diversified entity
Zee Learn – A diversified entity Asia’s largest preschool An international - 1800+ centers standard pre-school - 135,000 + kids at Mumbai -700+ cities India’s fastest growing An IB school of global network standards at BKC Mumbai - 120 + schools - 52,000 + kids - across 110+ cities ZICA is the natio
Slide 19: Investment Rationale in MT Educare
Investment Rationale in MT Educare A strong brand name in coaching vertical with a wide reach A scalable and sustainable model with minimum capex – asset light Includes a modular digital offering (“Robomate”) with strong student pull – Robomate enhances the product offering and facilitates the stude
Slide 20: Business Synergies
Business Synergies Zee Learn Limited – Access to high level digitalised content (through ROBOMATE) for standard IX – XII of MT for Zee Learn’s students – K-12 students of MLZS will have access to quality test prep for professional courses – Entry into the Government business of skill development – A
Slide 21: Consolidated Brands Footprint
Consolidated Brands Footprint Life cycle
Slide 22: Combined Strong Established Brands
Combined Strong Established Brands
Slide 23: Combined Network Strength - Zee Learn and MT Educare
Combined Network Strength – Zee Learn and MT Educare
Slide 24: Addressing the full Student Life Cycle
Addressing the full Student Life Cycle Pre School (2 - 6 yrs) (Asia’s largest chain with 1800 schools in 700+ cities) K-12 (7 – 16 yrs) (Fastest growing K-12 school chain - 115 Tutorial (8- schools in 90 cities) 18 yrs) (Coaching for school Test Prep. children) (14-24 yrs) (Test prep. for Vocational
Slide 25: Zee Learn Ltd: Overview
Zee Learn Ltd: Overview – Revenue grown at a CAGR of 22% from FY13 to FY18 i.e. Rs.101 Cr to Rs. 269 Cr (consolidated) – Consolidated EBITDA for FY18 at Rs.102 Cr, surpassed FY13 consolidated Revenue of FY13 of Rs.101 Cr. – Largest pre school chain in India with 1,800+ operational centers – Kidzee (
Slide 26: Zee Learn Ltd: Business Indicators
Zee Learn Ltd: Business Indicators Number of Kidzee Franchisee Centers Revenue - Kidzee ( Rs.in Mn) 2000 1,400 1,318 1813 1800 1725 1563 1,200 1,125 1600 1,009 1347 1,000 1400 872 1173 1200 800 667 1000 908 600 532 800 600 400 400 200 200 0 - FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY
Slide 27: Zee Learn Ltd: Business segments and strengths
Zee Learn Ltd: Business segments and strengths Business Services Strengths Competition model • Franchise • Pedagogy , Curriculum & Content • R & D team of 60+ members with constant • Euro Kids (c. 900 • COCO • Teacher Training focus on pedagogy , curriculum design, centres) • Marketing & Academic Ce
Slide 28: Zee Learn's Strategic Growth Levers for existing businesses
Zee Learn’s Strategic Growth Levers for existing businesses Best In Class Student Best In Class Product Largest Foot Print experience Portfolio • Average new signups c.350 Pre- • Content is developed on our belief • This helps in Increasing share of Schools and c.16 K-12 YoY that every child is uniq
Slide 29: Growth Opportunities for Zee Learn
Growth Opportunities for Zee Learn Kidzee – Average enrollment per Kidzee centre is c.75, against full capacity of c.150 per centre (one and half shift) – With Kidzee as the largest Preschool chain in India spread c.700 cities, ZLL is quite poised to tap on this opportunity MLZS – Average enrollment
Slide 30: Zee Learn Subsidiaries
Zee Learn Subsidiaries
Slide 31: Digital Ventures Pvt. Ltd - 100% subsidiary
Digital Ventures Pvt. Ltd- 100% subsidiary DVPL is engaged in owning, developing and leasing the school infrastructure and ancillary assets required in educational business Sr. Locations Area Peak Student School Status for Facilities No. Capacity Academic Year 2018 1 Bhatinda Spread across 8 acres -
Slide 32: Liberium - A new initiative
Liberium – A new initiative Why How What Pre-industry Training Abundance of employment Prospective employees need ZLL is creating an ecosystem Ongoing Mentoring seekers, but lack of job relevant training to be around training jobseekers to Correct Selection employability. Employers specially skilled
Slide 33: Financial Highlights
Financial Highlights
Slide 34: Financial Overview: FY 2018
Financial Overview : FY 2018 Consol EBITDA crosses Rs.1000 Mn for the first time in FY18 Consol EBITDA for FY18 at Rs. 1021 Mn surpassed FY13 Consol Revenue of Rs. 1008 Mn. FY18 Consol Revenue up by 49% and PBT up by 133% over FY17 Highlights of Q4 FY18 performance on consolidated basis: • Operating
Slide 35: Financial Performance
Financial Performance Rs.Mn 3,000 2,688 2,500 2,000 1,805 1,513 1,500 1,213 1,278 1,008 1,022 1,000 686 431 500 305 (78) 122 - Fy13 Fy14 Fy15 Fy16 Fy17 Fy18 (500) Revenue EBIDTA Over last 4 years - 22 % CAGR in Topline and 70 % CAGR in EBITDA High Operating Leverage at play
Slide 36: Revenue - FY 2018
Revenue –FY 2018 Manpower (Figures in graph in Rs. Mn) and Recruitment (529) 20% Preschool Lease Rentals (1,319) (296) 49% 11% Vocational (39) 1% K12 (385) 19% Total Revenue: Rs. 2,688 mn
Slide 37: Financial Results - Consolidated (Q4 FY 2018)
Financial Results – Consolidated (Q4 FY 2018) Rs in Mn Consolidated Particulars Q4 FY 2018 Q4 FY 2017 Q by Q Growth FY 2018 FY 2017 FY by FY Growth Revenue from Educational Services / Activities 675.6 599.5 13% 1,863.4 1,604.8 16% Revenue from Construction / Leasing Activity (For Education) 86.5 69.
Slide 38: Consolidated P&L - March 2018
Consolidated P&L – March 2018 Rs. in Mn Consolidated P&L – March 2018 IND AS / Con Particulars ZLL DVPL AEPL Liberium Adj Consol Revenue from Operations 1,863 296 535 (6) 2,688 Total Revenue 1,863 296 - 535 (6) 2,688 Total Direct Expenses 451 - 451 Gross Margin 1,413 296 - 535 (6) 2,238 Personnel Co
Slide 39: Growth Potential
Growth Potential
Slide 40: The Quantum Leap
The Quantum Leap
Slide 41: Building Blocks - Preschool Network
Building Blocks - Preschool Network Operational Schools Enrollments 4,000 3,50,000 3,530 3,500 3,00,000 2,86,895 3,000 2,50,000 2,500 2,00,000 2,000 1,824 1,50,000 1,35,272 1,500 1,00,000 1,000 500 50,000 0 0 FY18(A) FY23(P) FY18(A) FY23(P)
Slide 42: Building Blocks - K-12 Franchisee Network
Building Blocks – K-12 Franchisee Network Operational Schools Enrollments 250 4,00,000 3,75,000 204 3,50,000 3,25,000 3,15,327 200 3,00,000 2,75,000 150 2,50,000 122 2,25,000 2,00,000 1,75,000 100 1,50,000 1,25,000 1,00,000 50 75,000 52,237 50,000 25,000 0 0 FY18(A) FY23(P) FY18(A) FY23(P)
Slide 43: Building Blocks - Vocational centres
Building Blocks – Vocational centres Operational ZICA Franchise Centers Enrollments -ZICA Franchise 50 47 Centers 45 7,500 7,175 7,000 40 6,500 35 6,000 5,500 30 5,000 4,500 25 21 4,000 20 3,500 3,000 15 2,500 2,000 10 1,500 5 1,000 562 500 0 0 FY18(A) FY23(P) FY18(A) FY23(P)
Slide 44: Building Blocks - Teacher Training centres
Building Blocks – Teacher Training centres Operational Teacher Training Enrollments - Teacher Training Centers Course 300 283 40,000 35,375 35,000 250 30,000 200 25,000 150 20,000 15,000 100 10,000 50 42 5,000 260 0 0 FY18(A) FY23(P) FY18(A) FY23(P)
Slide 45: Growth Potential: Zee Learn Consolidated
Growth Potential: Zee Learn Consolidated Organic and In-organic Business Rs. Million FY18 FY23 - Projections Particulars Actual Organic In-organic Total Total Revenue 2,688 19,500-19,600 18,350-18,400 37,850-38,000 EBITDA 1,020 7,470-7,530 5,300-5,350 12770-12,880 EBITDA % 38% 37%-38% 28%-29% 33%-34
Slide 46: Awards Recognition
Awards Recognition
Slide 47: Industry Recognition 2017
INDUSTRY RECOGNITION 2017 Preschool Franchisor of the Franchisor of the Brand Excellence Year - Jury’s Choice Year – Preschools Award for Education By by By BusinessWorld Franchise India World Marketing Education Awards Congress India’s Most Attractive Brand - International School Excellence in Omni
Slide 48: Kidzee
KIDZEE IS INDIA’S MOST ATTRACTIVE =p, As per India’s Most Attractive Brand Report 2017 Mount Litera World Preschool
Slide 49: Le@ARN
Le@ARN INDIA’S LEADING EDUCATION BRAND OF THE YEAR - 2017
Slide 50: Marketing & PR Campaign
Marketing & PR Campaign
Slide 51: Print Campaigns
PRINT CAMPAIGNS Mount Litera Zee School DID YOU KNOW... CREATING LEADERS ‘& GOOD PRESCHOOI 7 ACROSS INDIA SHAPES THE REST OF Y WITH OVER CHILD'S LIFE Z 90+ SCHOOLS : AND COUNTING. YG @'O Fee THINK EDUCATION. THINK ZEE LEARN. TO KNOW MORE, CALL 093200 63100 Pn == Visit: WWWMOUNTLITERACOM Z = cur ARN
Slide 52: Print Campaigns
PRINT CAMPAIGNS MLSIIS THE 1° IB SCHOOLINBKC ~& TO GET MYP AUTHORISATION (ded athmphat omer ward prs & lai G i = ae i Py . JUST A GHEF?;> CREATING THE NEXT-GEN OF FILMMAKERS , AND ANIMATORS, NATIONWIDE. ADMISSIONS OPEN 201 9906 41458, 022-62296000|w Zz wee ee GB 8 zim | Zz eer i 2 ~
Slide 53: I Care Outreach 2017-18
I Care Outreach 2017-18 Workshops with parents to create a buzz for an abuse-free society for children Particulars Details No. of Workshops conducted 607 No. of Parent seminars conducted 1390 Parents touched by the initiative 90,350 ‘Beti Bachao Beti Padhao’ and “Sukanya Samridhi Yojana campaign yea
Slide 54: Digital Outreach
DIGITAL OUTREACH Brand building | Lead Generation | SEO | SEM | Website Management | Reputation Management | Social Media Marketing | Content Marketing Content Marketing Website Search- organic &paid Paid media + Affiliate Reputation management Social media marketing
Slide 55: Social Media Connect
SOCIAL MEDIA CONNECT #MyFoodieTale #ParentingTips Branded #BookThatTaughtUs
Slide 56: Rationale for Investment in Zee Learn Ltd
Rationale for Investment in Zee Learn Ltd Asia’s Largest Pre School chain and India’s fastest growing K-12 school chain Post acquisition of MT Educare, Zee Learn would be leading player operating in various domains of Education system in India. i.e. pre-school/K- 12/Vocational/Tutorials/Test Prep in
Slide 57: Way Forward
Way Forward • Hive off asset base of school properties either through REIT or sale. • Launch of Day Care centres and Mother / Toddler programs • New Brands to cater to different demographic segments • To tap corporate pay preschool segment • Increase point of presence through tie-ups with builder, s
Slide 58: Vision statement
“To become India’s largest and most respected Education company serving the full life cycle of educational needs through digital / offline modes and with a strong social commitment and Indian roots.” cy eT on co —