National Co. For Learning & Education · TADAWUL:4291
National Co. For Learning & Education — National Company for Learning and Education — FY2020 Earnings Presentation
24 slides from National Co. For Learning & Education's earnings presentation, Dec 9, 2020
Slide 1: Investors Conference Call 2020 FY Financial Results
INVESTORS CONFERENCE CALL 2020FY - FINANCIAL RESULTS 9/12/2020
Slide 2: Disclaimer
DISCLAIMER Information contained in this document is subject to change without further notice and it may not contain all material information concerning National Company for Learning and Education (the “Company”). The Company is not liable or responsible of accuracy of referenced information from ex
Slide 3: NCLE Overview
NCLE OVERVIEW
Slide 4: NCLE Celebrates 62 Years Since Its Founding to Maintain Its Vision
NCLE CELEBRATES 62 YEARS SINCE ITS FOUNDING TO MAINTAIN ITS VISION K-12 3rd 62 Years 14,525 National & International Ranking in Market Share in of excellent education Enrolled Students Curriculum Riyadh 9 Campuses 24,000 225 Million 58 Million 8 In-operation Student Capacity with FY 2020 Revenues 8,
Slide 5: NCLE Aim to Be a Leading Education Company Through Expansions
NCLE AIM TO BE A LEADING EDUCATION COMPANY THROUGH EXPANSIONS Number of Students at the end of Academic Year 2019-2020 * TNS – Al-Rayyan TNS – Al-Rawabi TNS – Al-Nuzha TNS – Qourtuba TNS – Buridah Al-Khawarzmi Al-Ghad TNS – Qairawan TNS – Tilal Al-Doha 2022 Establishment 1958 2009 2013 2017 2019 201
Slide 6: NCLE Maintain Its Performance with Net Profit Grew by 15% in 2020
NCLE MAINTAIN ITS PERFORMANCE WITH NET PROFIT GREW BY 15% IN 2020 Financial Performance (million SR) Revenue Breakdown (2020) 208 215 218 199 204 198 1.2% 0.2% 97 101 105 88 82 87 64 67 67 58 49 50 98.6% 2015 2016 2017 2018 2019 2020 Revenues Gross Profit Net Profit Tuition Fees Transportation Fee G
Slide 7: Market Overview
MARKET OVERVIEW
Slide 8: Market Overview
MARKET OVERVIEW Total Students Population Private Education Students 422 1351 8.0 1340 265 823 4.4 265 436 147 106 40 Riyadh Mecca Eastern Madina 2017 2023 2017 2023 Province Riyadh is the Largest Private Education Market Size (SAR billion) of Private Enrolment (thousand students) in Market In Saudi
Slide 9: Despite Economic Challenges, NCLE Is Committed to Continue Growing
DESPITE ECONOMIC CHALLENGES, NCLE IS COMMITTED TO CONTINUE GROWING Challenges Financial pressure HRDF subsidy Estimated Total on expenses related decrease going private schools Opportunities to employment forward student population costs (non-Saudi) decrease by ~15% in 2020 due to COVID-19 * NCLE dr
Slide 10: Despite Economic Challenges, NCLE Is Committed to Continue Growing
DESPITE ECONOMIC CHALLENGES, NCLE IS COMMITTED TO CONTINUE GROWING • POPULATION GROWTH WILL ADD 2 MILLION STUDENTS IN 10 YEARS1 Challenges • MOE HAS SET KPIS ON PRIVATE SECTOR TO ACHIEVE PENETRATION OF 25% BY 2030 75% 60% Opportunities 40% 35% 16% UAE QATAR KUWAIT BAHRAIN KSA • High fragmentation al
Slide 11: Despite Economic Challenges, NCLE Is Committed to Continue Growing
DESPITE ECONOMIC CHALLENGES, NCLE IS COMMITTED TO CONTINUE GROWING • NCLE operates 6 campuses in Riyadh with total Challenges capacity of 24,000 students • New campus (Al-Qairawan) opened in September 2020 with total capacity of 5,000 students • NCLE schools are well positioned in high Opportunities
Slide 12: NCLE 2020 Executive Update
NCLE 2020 EXECUTIVE UPDATE
Slide 13: 2020 Executive Update: M&A Transactions
2020 EXECUTIVE UPDATE M&A Organic E-learning Academic Financial New offerings transactions Expansion success excellence performance Successful completion of acquiring Alkhawarizmi school and Alghad Schools adding ~2900 students to NCLE’s student population
Slide 14: 2020 Executive Update: Organic Expansion
2020 EXECUTIVE UPDATE M&A Organic E-learning Academic Financial New offerings transactions Expansion success excellence performance Successful completion of Al-Qairawan campus construction and enrolling new students for 2020
Slide 15: 2020 Executive Update: New Offerings
2020 EXECUTIVE UPDATE M&A Organic E-learning Academic Financial New offerings transactions Expansion success excellence performance • Opened registration of new grades in Buraydah Campus following a grand opening ceremony • Launched international curriculum in Al-Nuzha Campus • Launched NOA online a
Slide 16: 2020 Executive Update: E-learning Success
2020 EXECUTIVE UPDATE M&A Organic E-learning Academic Financial New offerings transactions Expansion success excellence performance NCLE has ensured continuity of its education programs virtually with blended component: • 91% daily students attendance • 100% teachers’ daily attendance • Produced 36,
Slide 17: 2020 Executive Update: Academic Excellence
2020 EXECUTIVE UPDATE M&A Organic E-learning Academic Financial New offerings transactions Expansion success excellence performance • 1st place in the National Robotics Olympiad (STEM). • 1st place in KSA in the Kangaroos Global Math Competition with 63 medals. • 2nd place in KSA in the global Olymp
Slide 18: 2020 Executive Update: Financial Performance
2020 EXECUTIVE UPDATE M&A Organic E-learning Academic Financial New offerings transactions Expansion success excellence performance • Enhanced collections through new initiatives using effective online payment channels • Full utilization of IPO proceeds effectively • Maintained dividends distributio
Slide 19: 2020 Financial Results
2020 FINANCIAL RESULTS
Slide 20: NCLE Maintain Its Performance with Net Profit Grew by 15% in 2020
NCLE MAINTAIN ITS PERFORMANCE WITH NET PROFIT GREW BY 15% IN 2020 Revenues (million SAR) Government Grants & Subsidies (million SAR) 217.8 15.68 204.3 Gov. Grants & Subsidies 197.9 Revenues increased by 10% 9.39 7.43 decreased by -21% compared with previous compared with previous Year and 7% compare
Slide 21: Campus Result in 2020
Campus Result in 2020 Revenue By Campus Gross Margin by Campus 1% 4% 5% 3% 61.3% 62.2% 29% 53.1% 44.7% 47.3% 40.1% 41.6% 42.2% 25% 28.1% 33% 6.8% 4.4% N/A N/A N/A Al Rayyan Al Rawabi Al Nuzha Qurtuba 2019 2020 Buraydah AlKhowrizmi AlGhad Al Rayyan Al Rawabi Al Nuzha Qurtuba Buraydah Alkhowrizmi AlGh
Slide 22: Board of Directors' Dividends Recommendation
BOARD OF DIRECTORS' DIVIDENDS RECOMMENDATION Dividend per Share Total Payout % of Capital % of Earnings 0.8 SR 34,400,000 SR 8% 60% • NCLE announced the Board of Directors recommendation to distribute cash dividends to its shareholders for the fiscal year ended August 31, 2020 (announced on Nov 22,
Slide 23: Recent Announced Updates on IPO Proceeds
RECENT ANNOUNCED UPDATES ON IPO PROCEEDS The net IPO proceeds after deducting all expenses related to the IPO were (230,985,697) Saudi Riyals. 1) Total amount of (45.7) million Saudi Riyals were allocated to fund the construction and operation of Al-Qassim Educational campus in Buraidah City, Qassim
Slide 24: Thank You
THANK YOU (Q&A) For more information, please contact us on: investor.relations@edu.com.sa
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