S Chand And Company Limited · NSE:SCHAND
S Chand And — Q2 FY2022 Earnings Presentation
50 slides from S Chand And's earnings presentation, Nov 13, 2021
Slide 1: Cover letter to stock exchanges on investor presentation
-! =Fe S Chand And Company Limited Registered Office 1-1 '- 7, 2'ld Floor. Mohan Co-Operative : 1dustrial Estate, New Delhi - 1 1 0044, India S.CHAND P:+91 11 4973 i 800 I f;➔ 91 11 4973 1801 I E: info" schandgroup.com I www.schandgroup.com GROUP Date: November 13, 2021 To To Listing Department Lis
Slide 2: Q2 – FY2021-22 Investor Update
S. Chand and Company Limited Q2 – FY2021-22 Investor Update 13th November 2021
Slide 3: Summary
SUMMARY 1. Key Quarterly Highlights 2. Digital Business Update 3. Looking Ahead 4. S. Chand Ed-Tech Initiatives - Annexure 2
Slide 4: Key Quarterly Highlights
Key Quarterly 1. Highlights 3
Slide 5: Key Numbers – Strong Show in Q2FY22
KEY NUMBERS – STRONG SHOW IN Q2FY22 42% 154% 40% 13% Increase in Increase in Reduction Reduction Revenue Gross in EBITDA in PAT from Margins losses Losses Operations (YoY) (YoY) (YoY) (YoY) Launch of S Revamped S Rs122m Rs653m Chand Academy Chand’s E- Commerce website Cash flow from 33% Reduction in
Slide 6: Reopening of Educational Institutes Well Underway, Looking Forward to Normal Sales Season in FY22
REOPENING OF EDUCATIONAL INSTITUTES WELL UNDERWAY, LOOKING FORWARD TO A NORMAL SALES SEASON IN FY22 • Q2 saw strong school openings across all states. We expect primary classes to open during Q3 across the country. The pace of school openings is heartening and increases confidence of a normal sales
Slide 7: Status of Key States - Reopening of Educational Institutes
STATUS OF KEY STATES - REOPENING OF EDUCATIONAL INSTITUTES Uttar Pradesh • Schools have opened since September. Haryana • Schools have opened since September. Punjab • Schools have opened since August. Rajasthan • Schools reopened from Class 6th onwards with certain restrictions from September. Madh
Slide 8: Strong Q2, Look Forward to a Normal Sales Season
STRONG Q2, LOOK FORWARD TO A NORMAL SALES SEASON Q2FY22 Revenues from Operations (Rs M) 518 365 UP 42% 266 YoY 106 Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 EBITDA (Rs M) REVENUES PAT (Rs M) EBITDA Loss lower by PAT Loss lower -211 40% YoY by 13% YoY -349 -412 -473 -627 -571 -758 -603 Q2 FY19 Q2 FY20 Q2 FY21
Slide 9: Moving to a Structurally Lower Debt & Inventory Levels
MOVING TO A STRUCTURALLY LOWER DEBT & INVENTORY LEVELS We have moved to a fundamentally lower debt We are moving to a structurally lower inventory profile for the company. We are looking to reach levels in the company. We are targeting Rs800m- net debt zero levels by Q4FY23 on back of Rs1,000m inven
Slide 10: Improving Working Capital Cycle
IMPROVING WORKING CAPITAL CYCLE • Inventory days - Down 28 days (YoY). • Receivable days - Down 10 days (YoY). • Net Working capital days – Down 16 days (YoY). 9
Slide 11: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 10
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • H1FY22 is not comparable with H1FY21 since H1FY21 had sales overflow from Q4FY20 (which was impacted by the national lockdown on 21st March 2020) • H1FY22 as compared to H1FY20 had equivalent sales but lower EBITDA losses by 58% and lower PAT losses by 26%. This
Slide 13: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 12
Slide 14: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE • Receivables: Strong collection in H1 over comparable period last year in spite of covid Wave 2 represents better quality of sales achieved in FY21. • Inventory: Increase in inventory of Rs99m is on back of raw material addition over March, 21. 13
Slide 15: Improving Working Capital Cycle
IMPROVING WORKING CAPITAL CYCLE • Working Capital Metrics • Trade Receivables reduced to Rs2,017m during Q2FY22 vs. Rs3,221m as of Q4FY21. • In terms of receivable days, it stood at 182 days (vs. 276 days in Q4FY21), a reduction of 94 days during 1H. • Inventory was lower at Rs1,476m (vs Q2FY21: Rs1
Slide 16: Shareholding Structure
SHAREHOLDING STRUCTURE Market Data As of 12th Nov, 2021 Key Institutional Investors - As Other Institutional Investors holding less % Holding of Sept 2021 than 1% - As of Sept 2021 Market Capitalization (Rs Mn) 4,420 International Finance 8.0% Aadi Financial Advisors Corporation Price (Rs) 126 Trust
Slide 17: Result Conference Call Details
RESULT CONFERENCE CALL DETAILS 16
Slide 18: Digital Business Update
Summary 2. Digital Business Update 17
Slide 19: Digital Business Update – Learnflix & Mylestone
DIGITAL BUSINESS UPDATE – LEARNFLIX & MYLESTONE • Learnflix App (Affordable Personalised Student App) targeted to • Mylestone: Digitally enabled School Curriculum Solution for the K-8 the Next Half Billion (NHB) audience has got strong response in segment is now ready to grow exponentially. since la
Slide 20: Digital Business Update – Educate
DIGITAL BUSINESS UPDATE – EDUCATE 360 • Madhubun Educate360 is the newly conceived K-12 Blended learning solution for enabling schools to conduct online classes, student assessments, e-book support etc. as a response to the Covid-19 crisis. This product is NEP 2020 compliant supporting the recommend
Slide 21: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS • Convergia houses Learnflix and Mylestone. Various formalities with regards to Convergia and business transfer are completed. The company is meeting various investors to raise funds for the next leg of growth. • Convergia is a subsidiary of S Chand only to be
Slide 22: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS Launch of “S Chand Academy” channel on Youtube for Test Prep and Engineering segment 21
Slide 23: Digital Business Update – Other Assets
DIGITAL BUSINESS UPDATE – OTHER ASSETS Launch of revamped S Chand website for driving higher E-Commerce sales 22
Slide 24: Investee Companies – Hidden Value in Our Balance Sheet
INVESTEE COMPANIES – HIDDEN VALUE IN OUR BALANCE SHEET Our major investee companies raised capital and did well during these times as well • Testbook was founded in 2014 with focus on online test preparation for government competitive exams like Civil services, Banks, Govt departments like railways,
Slide 25: Looking Ahead
Summary —— —~— S.CHAND GROUP Looking Ahead www.schandgroup.com
Slide 26: Looking Ahead
LOOKING AHEAD —— —~— S.CHAND epnoup Twin Growth Drivers in place -: (1) NEP based new curriculum for print business, (2) Increased adoption of our Ed-Tech solutions ina post Covid world FY22 Medium Term implement a Development neacbiarGanne) aaa of new Increasing the Target over eTocs sled nee Relen
Slide 27: New Education Policy – Big Positive Going Ahead in Short to Medium Term
NEW EDUCATION POLICY – BIG POSITIVE GOING AHEAD IN SHORT TO MEDIUM TERM • Announcement of Draft New Education May, 2019 Policy (NEP) • The New Education Policy (NEP) was formally adopted by the Union Government in July, 2020. • Adoption of the New Education Policy • Expected release of the New Natio
Slide 28: S. Chand Group Journey So Far…
S. CHAND GROUP JOURNEY SO FAR… S. Chand Other Ed-Tech Publishing – Apps and Products – SmartK, S. Chand, Vikas, myStudyGear etc Madhuban, New Saraswati, Chaaya Destination Success - Test Coach – App for Learnflix – Mobile Digital Competition exams Learning App Classroom S. Chand Publishing Destinati
Slide 29: S. Chand Group Product Strategy for the Future
S. CHAND GROUP PRODUCT STRATEGY FOR THE FUTURE Digital Content • Textbooks • Multimedia Analytics and Insights • Practice Tests • Student 01 • Teacher 05 • School Live Classes • Parent • Video conferencing platform • Calendar scheduling Teacher Connect • Recorded classes • Teacher published content
Slide 30: Major Ed-Tech Initiatives - Annexure
Summary Major Ed-Tech Initiatives - Annexure 2.1 Learnflix 4. 2.2 Mylestone 2.3 Educate 360° 29
Slide 31: Learnflix – India's Most Affordable Learning App
LEARNFLIX – S. CHAND'S B2C & B2B2C OFFERING - INDIA'S MOST AFFORDABLE LEARNING APP Offering Digital content Adaptive test Self paced learning Analytics and reports Grades 6 to 10 Channel Sales & Marketing Support Revenue model B2B2C: Distributing through schools ➢ A strong sales team that connects w
Slide 32: Learnflix – Overview
LEARNFLIX – OVERVIEW Takes learning one step Concept ahead by providing Revision advanced individualized learning Try Out Concept Practice ➢ Currently available for grades 6th to 10th for maths and science subjects Chapter Video test ➢ The Spiral Learning Pedagogy ensures all concepts are well learn
Slide 33: Learnflix – Students Can Personalize Their Learning Paths
LEARNFLIX – STUDENTS CAN PERSONALIZE THEIR LEARNING PATHS… Flexibility to choose the time, Extremely focused and guided analytics to place and pace of learning help students, teachers and parents to monitor performance Reinforcement of previous Test level analytics 360° ➢ Score, Accuracy, Questions,
Slide 34: Mylestone – S. Chand's B2B Curriculum Offering
MYLESTONE – S. CHAND’S B2B CURRICULUM OFFERING Till grade 8 Teachers hand Student Digital content Progress report Training & support Resource kits Teacher/ Student book with Books with analytics app lesson plans Offering Grades 9 to 12 Digital content Adaptive test Self paced learning Analytics and
Slide 35: Mylestone – S. Chand's B2B Curriculum Offering
MYLESTONE – S. CHAND’S B2B CURRICULUM OFFERING 34
Slide 36: Mylestone – Features
MYLESTONE – FEATURES • Teacher Handbook • Quiz – MCQ based • Online – MCQ based Live Classes – Course Book • Assignment – • Pen and Paper – Integrated with Zoom, • Practice Book Objective + Objective and MS teams, Google • Mylestone Digital Subjective question Subjective question Meet, Other Resourc
Slide 37: Mylestone – Strong Process in Place to Assist the School with Implementation
MYLESTONE – STRONG PROCESS IN PLACE TO ASSIST THE SCHOOL WITH IMPLEMENTATION Pre-implementation Post-implementation School diagnostic Training on School leaders Teachers Lesson Training on time Through survey classroom induction induction observation I management and display on-site visit Create and
Slide 38: Mylestone App – Features
MYLESTONE APP — FEATURES TEACHER WEB SCHOOL ADMIN GO &)=— &)s= PORTAL PORTAL ti > LIVE classes integrated Web based Admin portal © o% ‘100% ae 0% Se with online platforms Syllabus completion iL] Ean Online Homework report and Assessments with Cee sectiontadee analytics teacher dashboard Mark Attenda
Slide 39: Mylestone App – Features
MYLESTONE APP — FEATURES TOORY UPCOMING ‘COMPLETED Science ° Mots ° Daestion Fractions demogatl demogat Qrsoevaney 1331 w vvearzen 1338 (Qhrsxzoen 21:30 sven 2290 En = ais o™ Py Digestion Deeston emogatt demonatt (@reoaanas wooo w rsyeaaczt 1030 (@)rsavana on v0 veavama veto = Pen 8g beta Lemay om o
Slide 40: Mylestone – The Business Case
MYLESTONE – THE BUSINESS CASE India is amongst the world’s largest K12 markets with strong preference for private schools K-12 enrolment in India Growth in K12 enrolment (in millions) 300 ➢ With over 245Mn K- 280 12 enrollments India Millions 260 250 250 250 245 240 240 is one of the largest 220 k-1
Slide 41: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? • Affordable private schools can be defined as schools charging annual fee in the range of 12k to 60k. Schools charging below 12k fees can be termed as low fee schools • According to DICE report, around 79% of private schools charge less than 5000Rs per month. That i
Slide 42: Mylestone – Why the Need Exists?
MYLESTONE – WHY THE NEED EXISTS? Affordable private schools face multiple challenges that negatively impacts learning outcome Lack of proper assessment and reports Poor quality of teachers and high attrition Assessments are based on rote learning and no analytical tool is used to Scarcity of trained
Slide 43: Educate 360° – An Overview
EDUCATE 360° – AN OVERVIEW P R O D U C T PA C K A G E E-Book Teacher’s Manual Printed Book Teacher Training Digital Supplements Assessment Integrated Platform Internet Links Concept Videos Ease of Access 42
Slide 44: Educate 360° – An Overview
EDUCATE 360 ° – AN OVERVIEW In Sync with the National Focusses on developing Education Policy (NEP)2020 2 1 st C e n t u r y S k i l l s •Art Education •Digital Creativity Digital Learning Learning Self- Confidenc Communicatio Periodic Collaborative e/ Self- n Assessment Learning Integrated Learning
Slide 45: Educate 360° – Product View
EDUCATE 360° – PRODUCT VIEW 44
Slide 46: Educate 360° – Teachers View
EDUCATE 360° – TEACHERS VIEW 45
Slide 47: Educate 360° – Students View
EDUCATE 360 ° – STUDENTS VIEW 46
Slide 48: Educate 360° – Teachers View
EDUCATE 360° – TEACHERS VIEW 47
Slide 49: Educate 360° – Students View
EDUCATE 360° – STUDENTS VIEW 48
Slide 50: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by S. Chand & Company Limited (“S. Chand” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, fin
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