Human Soft Holding Co. Kscc · KSE:HUMANSOFT
Human Soft Holding Co. Kscc — Humansoft Holding Company KSCP — Q1 2020 Earnings Presentation
24 slides from Human Soft Holding Co. Kscc's earnings presentation, Jul 27, 2020
Slide 1: Investor Presentation Q1 2020 Results
Humansoft Holding Company KSCP Investor Presentation Q1 2020 Results 27 July 2020 Disclaimer: Nothing in this document constitutes an offer to sell or a solicitation of an offer to buy any securities
Slide 2: Disclaimer
Disclaimer • The information set out in this presentation and provided in the discussion subsequent thereto does not constitute an offer or solicitation of an offer to buy or sell securities. It is solely for use at an investor presentation and is provided as information only. • This presentation do
Slide 3: Table of contents
Table of contents Page Covid-19 4-8 Key highlights 10 We are proud of our achievements 11 Board & Executive Management 12 Share price performance 13 12th largest by market cap 14 Research coverage and IR 15 Q1 2020 financial performance 16 Student enrollment 17 Key financials 18-20 Strong equity sto
Slide 4: Covid-19
Covid-19 • Key government measures • Optional online learning • Revenue recognition • Cash position 4
Slide 5: Covid-19: Key government measures
Covid-19 Key government measures 1 March • Schools and universities closed (on-campus) 12 March • Partial lockdown introduced, work from home 15 March • Kuwait Airport closed (commercial flights) 18 March • CMA decision to delay Q1 2020 financials 22 March • Curfew from 5pm to 4am 10 May • Full lock
Slide 6: Covid-19: Optional online learning
Covid-19 Optional online learning • AUM and ACM launched online learning in March 2020 • Online learning was however discontinued as per government guidelines • Relaunched in April, but optional to students as per government guidelines Online Spring Online Spring Online Summer • April to June 2020 •
Slide 7: Covid-19: Revenue recognition
Covid-19 Revenue recognition • Deferred revenue for Fall 2019/2020 was recognized in January Q1 2020 • Proportionate Spring 2020 revenue was recognized in February revenue • No revenue was recognized in March Q1 2020 7
Slide 8: Covid-19: Cash position
Covid-19 Cash position • On 23 March 2020, the General Assembly voted against distributing Dividends dividends for FY 2019 Board • Board of Directors decided to waive their remuneration for FY 2019 Cash • KD 67.0 million cash as at 31 March 2020 position Q1 2020 8
Slide 9: Table of contents
Table of contents Page Covid-19 4-8 Key highlights 10 We are proud of our achievements 11 Board & Executive Management 12 Share price performance 13 12th largest by market cap 14 Research coverage and IR 15 Q1 2020 financial performance 16 Student enrollment 17 Key financials 18-20 Strong equity sto
Slide 10: Key highlights
Key highlights Leading 20+ 12,3851 University private higher years of operating enrolled students in of choice education company experience AUM and ACM in the GCC for Engineering and Business KD 67.8 KD 37.5 35% Optional online million million 2013-19 EBITDA learning CAGR in revenue2 in EBITDA2 laun
Slide 11: We are proud of our achievements
We are proud of our achievements Over 700 Over 60% Over 70 trees have been female different staff planted in the students nationalities campus Over 100 Over 90 Over 20 community academic sports engagement competitions competitions initiatives since since 2014 since 2017 2014 Q1 2020 11
Slide 12: Board & Executive Management
Board & Executive Management Name Position Dalal Hasan Al Sabti Chairperson Board of Tareq Fahad Al Othman Vice Chairman Directors Mayank Hasmukhlal Baxi Director Hasan Qasim Al Ali Director Abdulrazaq Abdulla Mohammad Ahmed Director Name Position Mayank Hasmukhlal Baxi CEO Executive Rachad Challah
Slide 13: Share price performance
Share price performance Shareholding (31 March 2020) KD Closing price as at 31 March 2020 2.350 Market Cap (KD mn) 1 286 20.1% Al-Othman Market Cap (USD bn) 0.9 6m avg. daily trading volume (% of shares outstanding) 0.18% 5.9% Al Imtiaz Group 52-weeks high 2 3.490 52-weeks low 2 2.248 5.2% Norges Ba
Slide 14: 12th largest by market cap on Boursa Kuwait's Premier Market
12th largest by market cap on Boursa Kuwait’s Premier Market Market Cap Boursa Kuwait Name Description Rank (KD million) segment National Bank of Kuwait Banking 4,890 1 Premier Kuwait Finance House Banking 4,361 2 Premier Zain Telecom 2,233 3 Premier Ahli United Bank AUB (Bahrain) Banking 2,066 4 Pr
Slide 15: Research coverage and IR
Research coverage and IR Broker Target price Date of report Analyst • Alaa Tolba CI Capital 5.000 8 January 2019 • Mirna Mohsen • Hatem Alaa EFG Hermes 4.600 30 April 2020 • Mirna Maher Research coverage • Emad El Hage Arqaam 4.600 5 February 2020 • Mehwish Zafar • Aly Adel Beltone 4.530 24 Septembe
Slide 16: Q1 2020 financial performance
Q1 2020 financial performance • Due to Covid-19, no revenue was Key figures and ratios Q1 2019 Q1 2020 Change recognised in March 2020, which impacted Q1 2020 performance Number of students (Fall) 12,356 12,385 0.2% Revenue (KD mn) 18.4 12.8 -30.1% • Humansoft recorded a drop in revenue of 30.1% in
Slide 17: Student enrollment
Student enrollment Total CAGR 19% AUM CAGR 23% ACM CAGR 8% 11,760 12,356 12,385 Total AUM ACM 10,360 2,127 1,970 8,620 2,286 6,853 2,011 Total students 5,348 1,663 enrolled 3,657 1,477 10,229 10,415 1,426 9,474 (beginning of 6,957 8,349 1,182 the Fall 3,922 5,376 semester) 2,475 2012-13 2013-14 2014
Slide 18: Key financials: Q1 2020 revenues impacted by Covid-19
Key financials Q1 2020 revenues were impacted by Covid-19 Revenue (KD mn) • Humansoft’s revenues grew at a CAGR of 24% CAGR between 2013 and 2019, 24% due to strong student 69.3 73.3 growth in AUM and ACM 61.8 54.5 and tuition increase in 2014 (AUM) and 2015 43.6 -30.1% (ACM) 28.6 20.6 18.4 12.8 • H
Slide 19: Key financials: Margins remain strong despite Covid-19
Key financials Margins remain strong despite Covid-19 • Gross profit grew at a CAGR Gross profit (KD mn) and gross profit margin EBITDA (KD mn) and EBITDA margin of 26% in the period 2013- CAGR CAGR 19. Gross profit margin was 26% 56.7 35% 77% in FY 2019, and 65% in 53.5 43.0 Q1 2020 47.6 38.1 41.8
Slide 20: Key financials: Humansoft has a fortress balance sheet
Key financials Humansoft has a fortress balance sheet • Humansoft has a net cash Total assets (KD mn) and ROAA Total equity (KD mn) and ROAE position of KD 49.7 mn as at 31 March 2020 137.9 83.9 80.4 118.3 109.9 67.0 98.4 • Total equity has increased 85.7 48.3 56.9 to KD 83.9 mn as at 31 70.2 38.2 M
Slide 21: Strong equity story
Strong equity story • Solid track record • Strategic pillars • Long term focus 21
Slide 22: Solid track record
Solid track record Online learning, and state of the art campus Highest number of students among private universities in Kuwait Focus on Engineering & Business majors Solid financial performance, fortress balance sheet One of the largest free floats on Boursa Kuwait Q1 2020 22
Slide 23: Strategic pillars
Strategic pillars 1 2 3 Academic Operating Shareholder excellence efficiency value Q1 2020 23
Slide 24: Long term focus
Long term focus • We are building new capabilities and developing new offerings to secure our long term prospects Academic • This includes widening the undergraduate offering by introducing excellence new majors, offering new masters programs, securing accreditation for the remaining programs, and d
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