National Co. For Learning & Education · TADAWUL:4291
National Co. For Learning & Education — National Company for Learning and Education — Q3 2021 Earnings Presentation
22 slides from National Co. For Learning & Education's earnings presentation, August 2021
Slide 1: Investors Conference Call Q3 2021 Financial Results
INVESTORS CONFERENCE CALL Q3, 2021 - FINANCIAL RESULTS AUGUST 2021
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 its 63rd anniversary this year
NCLE celebrates its 63rd anniversary this year … Company Converted to a Acquired Opened a new Opened a new campus Opened a new campus Opened a new campus Established Closed Joint Stock “AlHadhara” school campus in Nuzha in Qurtobah in Qassim in Qairwan 1958 2002 2006 2013 2017 2019 2020 Opened its 1
Slide 5: NCLE aspires to be the market leader in education quality and business growth
NCLE aspires to be the market leader in terms of education quality, and business growth 63 Years K-12 13,3K 3rd National & International Ranking in Market Share in of excellent education Enrolled Students Curriculum Riyadh 9 Campuses ≈ 29,000 225 Million 58 Million 8 In-operation Student Capacity wi
Slide 6: NCLE campuses: capacity, enrollment and utilization
NCLE aspires to be the market leader in terms of education quality, and business growth TNS – Al-Rayyan TNS – Al-Rawabi TNS – Al-Nuzha TNS – Qourtuba TNS – Buridah Al-Khawarzmi Al-Ghad TNS – Qairawan TNS – Al-arid TNS – Tilal Al-Doha 2022 Establishment 1958 2009 2013 2017 2019 2010 1990 2020 2021 Un
Slide 7: Minor decline in number of students in 2021 academic year
Due to the global pandemic, NCLE witnessed a minor decline in the number of students in 2021 academic year Total decline rate in Total Students 2020 14.5 K %8 2021 Total Students 2021 KG and G1 decline % of 13.3 K % 76 the total decline • The total number of students in the current year (2021) decre
Slide 8: Market Overview & Private Education Sector Growth Drivers
MARKET OVERVIEW & PRIVATE EDUCATION SECTOR GROWTH DRIVERS
Slide 9: The private education market is expected to double in the next 10 years
The private education market is expected to double in the next 10 years … Market Size (USD bn) of Private Education in Students distribution in the education Riyadh City is the Largest Private Education KSA* system ** Market In Saudi Arabia*** 1351 1340 9.0 823 436 5.1 265 147 106 40 4.3 Riyadh Mecc
Slide 10: NCLE is committed to continue growing given the growth drivers in place
NCLE is committed to continue growing given the growth drivers in place 40 % of KSA Population < 25 Years old 1 Population growth will add 2M students in 10 years Enrollment rate in private education 74% 60% 2 35% 32% 23% 15% is still the lowest in KSA compared to neighboring countries UAE QATAR KUW
Slide 11: NCLE's new project
NCLE’s new project Riyadh, Al-Arid district
Slide 12: Project TNS - Al-Arid
Project TNS - Al-Arid Project Overview • NCLE is opening a new school on September of the acacemic academic year 2021-2022, through a long-term lease of a school building in north of Riyadh (Al-Arid District) • The new school offer national and international programs for boys and girls in all stages
Slide 13: Project TNS - Al-Arid District rationale
Project TNS - Al-Arid District Project Rational: • Strong projected feasibility study conducted by specialized independent advisor • Strategic location serving districts north of Riyadh which have a rapid growth in population • Competitive advantage of being the first school complex in the district
Slide 14: Market Outlook – Al-Arid District
Market Outlook – Al-Arid District 1 Total Students Population Total number of students enrolled in private schools in the Kingdom of Saudi Arabia is projected to be 1.2 million students (pre-Covid) and Riyadh is considered the highest in terms of number of students in private schools Number of Stude
Slide 15: Market Outlook – Al-Arid District Market Size and Demography
Market Outlook – Al-Arid District 2 Market Size and Demography • Population Al-Arid District Demography one of fastest growing districts with total population of 34,300 people K K • Average Income Avg Income % Saudies % Male Population ranked #25 out of 155 districts as highest income districts with
Slide 16: Market Outlook – Al-Arid District Market comparison
Market Outlook – Al-Arid District 3 Market comparison Students per school ratio of 4,067 suggests that Al-Arid districts is under served compared with other districts being one of the highest in Riyadh Selected Districts Avg Monthly Students Students per Population (0-19 yr) % Private Schools* north
Slide 17: Case Study: TNS Qairawan School
Case Study: TNS Qairawan School • NCLE management have used TNS Qairawan school as a benchmark given location and timing proximity as well as the demographic similarity Qairawan School Students in 1st Academic Year ~ 1000 Capacity 4550 Revenues for 9 months SR 7.5 million Gross Profit for 9 months S
Slide 18: Building Lease Contract
Building Lease Contract • The lease contract amount of 7,950,000 Saudi riyals annually, with an increase of one million Saudi riyals on the annual rent value every five years. (Including extension period) • Contract duration is for ten (10) years binding on both parties starting from 01/09/2021, and
Slide 19: Q3 2021 Financial Results
Q3 2021 FINANCIAL RESULTS
Slide 20: Net profit has improved compared to the previous quarter
NET PROFIT HAS IMPROVED COMPARED TO THE PREVIOUS QUARTER Revenues (million SAR) Government Grants & Subsidies (million SAR) Revenues increased by 3.7 Gov. Grants & Subsidies 55.7 8% compared with 3.4 42.8 45.4 decreased by -8.2% previous quarter and compared to previous decreased 1.5 quarter and inc
Slide 21: Campus Result in 9M-2021
Campus Result in 9M- 2021 Revenue By Campus Gross Margin by Campus %6 %12 %23 58% 56% 50% 52% 44% %6 42% 39% 39% 2% 30% %2 27% 21% 20% 12% %28 %21 1% n/a Al Rayyan Al Rawabi Al Nuzha Qurtuba Buraydah Al Qairawan Alkhowrizmi AlGhad Al Rayyan Al Rawabi Al Nuzha Qurtuba -9% Buraydah AlKhowrizmi AlGhad
Slide 22: Thank You (Q&A)
THANK YOU (Q&A) For more information, please contact us on: investor.relations@edu.com.sa
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