Navneet Education Limited · NSE:NAVNETEDUL
Navneet Education — Investor Presentation (May 2019)
34 slides from Navneet Education's investor presentation, May 15, 2019
Slide 1: Investor Presentation as on 15th May, 2019
INVESTOR PRESENTATION as on 15th May, 2019 A PREMIUM EDUCATION HOUSE
Slide 2: Table Of Contents
1 Company Overview 03 2 Navneet Group Business Insights 08 3 E-Learning Business Overview 13 15 Table Of 4 Indiannica Learning Contents 5 K12 – School Management Company 16 6 Industry Insights 18 7 Financial Performance 24 8 Shareholders Information 33
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: About Navneet
ABOUT NAVNEET Navneet Education Limited, founded by the Gala Family, is an educational syllabus-based supplementary content provider in Print & Digital medium and a manufacturer of Scholastic Paper stationery for domestic and international markets. New range of text books for students of CBSE and IC
Slide 5: Vision, Mission & Core Values
VISION, MISSION & CORE VALUES Mission Vision Core Values To provide the highest quality of To provide students with best quality Excellence educational products and supplementary study material and services to customers in the curriculum text books at affordable Proactive language / medium of their
Slide 6: 6 Decades of Navneet – A Snapshot
6 DECADES OF NAVNEET – A SNAPSHOT Acquired Indian Scholastic Stationery Curriculum text book business from Encyclopedia Britannica & New range of stationery India launched under brand 1993 YOUVA First Educational Publisher to be listed on BSE and NSE Children Books 2017 Introduced First Digest / Gui
Slide 7: Key Facts
KEY FACTS 25,000+ 2 No. of State Board Presence in States 35 Mn+ Schools visited for Supplementary Students using annually Books Navneet products 8,500+ CBSE / ICSE Schools visited 600+ 5,500+ annually 300+ SKU’s in No. of Titles No. of Authors Stationery 48,000+ 3,000+ Presence in Retail 25+ 350+ N
Slide 8: Navneet Group Business
NAVNEET GROUP BUSINESS
Slide 9: Navneet Group Business Portfolio
NAVNEET GROUP BUSINESS PORTFOLIO Curriculum (Maharashtra & Gujarat) Supplementary Books Non Curriculum PRINT (Pan-India & Exports) Text – Books (ICSE / CBSE) CONTENT E-LEARNING SSC (Adaptive (Maharashtra Learning) & Gujarat) B2B & B2C Domestic (Pan - India) PAPER STATIONERY School Management Exports
Slide 10: Navneet's Presence
NAVNEET’S PRESENCE Supplementary Books Maharashtra & Gujarat Digital Presence Maharashtra & Gujarat Orchid International Mumbai, Pune, Bengaluru, Hyderabad and Kolkata Text Books Andaman & Nicobar, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Prade
Slide 11: Global Presence
GLOBAL PRESENCE 10 INTERNATIONAL CUSTOMER PROFILE 11 9 12 1 14 13 15 2 16 3 5 25 6 7 8 4 17 18 19 20 21 22 23 24 1. Canada 5. Jamaica 9. Ireland 13. Germany 17. Ethiopia 21. Zambia 25. UAE 2. U.S. 6. Puerto Rico 10. Norway 14. U.K. 18. Kenya 22. Madagascar 3. Mexico 7. Costa Rica 11. Sweden 15. Spai
Slide 12: Growth Drivers for Navneet
GROWTH DRIVERS FOR NAVNEET Content Stationery Syllabus change CBSE Affiliated CBSE Pattern Domestic Exports Schools Schools Stationery Stationery Syllabus Change in With the rapid growth Many English Medium Increasing number of On account of Quality, State Board (SSC) of CBSE schools in the Private
Slide 13: eSense Learning
eSENSE LEARNING 4,000+ 20,000+ 1,20,000+ 150+ Digital Classrooms using Students learning Team of authors, Teachers trained Top Class through Top Class Illustrators and animators 350+ 15,000+ 2,00,000+ Hours of digital content Videos MCQs INVESTOR PRESENTATION 13
Slide 14: Growth Drivers - E-Learning Education
GROWTH DRIVERS - E-LEARNING EDUCATION EVOLVING BUSINESS MODEL : RISING DISPOSABLE INCOME : Peer to peer learning among students to gain pace also value added services such as internships and live Disposable income of the country projects along with regular courses to provide hands on expected to gro
Slide 15: Indiannica Learning (Formerly Encyclopaedia Britannica India)
INDIANNICA LEARNING (Formerly ENCYCLOPAEDIA BRITANNICA INDIA) 1 3 CBSE, ICSE, 220+ SSB 8,500+ Schools Pan-India School Presence 2 4 SCHOOLS VISITED CURRICULUM LOCATIONS EMPLOYEES ANNUALLY TARGET REACH 25,000+ CBSE / ICSE & 20,000+ SSC Schools o Encyclopedia Britannica India (“EB India”) is one of In
Slide 16: K12 Techno Services – Orchids The International School
K12 TECHNO SERVICES Over the last few years, quality Direct Education is in great demand in the Country and hence seen a sudden growth. ORCHIDS – THE INTERNATIONAL SCHOOL 25 5 24,000+ 34,000+ No. of Schools No. of Locations Capacity (CBSE/ICSE) Students SHAREHOLDING Locations No. of Schools Bangalor
Slide 17: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY o 21,000+ children benefited in 117 classrooms digitalized in 87 o Three charitable hospitals established in Mumbai under the schools in 18 districts through software learning program name Navneet Hospitals installation and hardware equipment o Free books & stationery
Slide 18: Industry Insights
INDUSTRY INSIGHTS
Slide 19: Industry Overview
INDUSTRY OVERVIEW Population Age 0-14 Age 15-59 Employment 1.34 1.39 415 435 845 890 465 534 Bn Bn Mn Mn Mn Mn Mn Mn 2017 2022 2017 2022 2017 2022 2017 2022 Expenditure on Education as a % of GDP 7.1 6.7 6.0 6.0 5.7 5.3 5.3 4.9 4.9 4.1 4.1 3.3 2.9 Finalnad New Brazil South UK Australia Ireland USA G
Slide 20: Industry Overview K-12 Segments
INDUSTRY OVERVIEW K-12 Vocational Education in Manufacturing & Services Higher Education K-12 (School) SEGMENTS Textbooks, e-learning & Allied Services Source: Technopak Analysis Presence in both Schooling & Ancillary Segments INVESTOR PRESENTATION 20
Slide 21: Industry Insights – School System
INDUSTRY INSIGHTS – SCHOOL SYSTEM NCERT GOVERNMENT OF INDIA MINISTRY OF EDUCATION (National Council of Educational Research and Training) 96% 2% 1% 1% SCERT CBSE ICSE OTHERS State Council of Educational Research Central Board of Indian Certificate for IB and Training Secondary Education Secondary Ed
Slide 22: India's K-12 Scenario
INDIA’S K-12 SCENARIO No. of Government : 1.1 Mn schools Private : 0.4 Mn 1.5 Mn Additional Capacity Required for Students No. of 35 Mn Government : 150 Mn Students Private : 110 Mn 260 Mn Additional Requirement Additional Resources USD Annual of Teachers Intake Government : 10 Mn 18 Mn Private : 8
Slide 23: Industry Overview – E-Learning
INDUSTRY OVERVIEW – E-Learning India’s Online Education market size to grow by USD 1.96 billion in 2021 It is expected that Online Education sector will witness a growth of 44% CAGR. Userbase will rise to 9.6 million by 2021 The Growth in the market size will be backed by an increase in the number o
Slide 24: Financial Performance FY 2018-19
FINANCIAL PERFORMANCE FY 2018-19
Slide 25: Standalone Financial Results – Q4 & FY19
STANDALONE FINANCIAL RESULTS – Q4 & FY19 (INR in Lakh) Quarter ended Mar’19 Year ended Mar’19 Particulars Q4FY19 % of Q4FY18 % of YTD % of YTD % of (Audited) Revenue (Audited) Revenue Mar’19 Revenue Mar’18 Revenue Total Income from Operations 24,552 21,262 1,36,054 1,13,224 Other Income 218 788 1,93
Slide 26: Yearly Numbers Overview
YEARLY NUMBERS OVERVIEW (INR in Lakh) 1,40,000 1,37,992 16% 15 % 27,071 1,35,000 30,703 19 % 1,30,000 1,25,000 1,20,000 1,16,145 23,445 1,15,000 26,391 1,10,000 1,05,000 FY18 FY19 FY18 FY19 FY18 FY19 Total Revenue EBIDTA PBT Publications Stationery - Domestic Stationery - Exports Segmental Revenue 1
Slide 27: Segment Results for the Year
SEGMENT RESULTS FOR THE YEAR (INR in Lakh) 25,000 24,668 6,410 26% 24,000 16% 5,071 23,000 22,000 21,293 21,000 20,000 19,000 FY18 FY19 FY18 FY19 Publication EBIT Stationery EBIT INVESTOR PRESENTATION 27
Slide 28: Standalone Balance Sheet Synopsis
STANDALONE BALANCE SHEET SYNOPSIS (INR in Lakh) As at 31st March, As at 31st March, Particulars 2019 2018 ASSETS Non-current assets 43,496 39,169 Current assets (a) Inventories 52,774 41,234 (b) Financial assets - - (i) Trade receivables 21,986 25,139 (ii) Cash and cash equivalents 1,804 558 (iii) O
Slide 29: Receivables & Inventory Days
RECEIVABLES & INVENTORY DAYS 245 220 176 146 156 120 117 108 105 107 99 104 73 69 62 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Receivable Days FG Inventory Days RM Inventory Days INVESTOR PRESENTATION 29
Slide 30: Standalone Financials (Last 5 Years)
STANDALONE FINANCIALS (LAST 5 YEARS) (INR in Lakh) Total Revenue & Growth (%) EBITDA & Margins (%) CAGR :9.4 % CAGR : 6.8 % 16.8% 18.8% 24.4% 24.7% 11.4% 22.2% 1,7 0,000 30. 0% 23.7% 40, 000 26. 0% 22.7% 20. 0% 1,5 0,000 -1.1% 4.3% 1,37,992 24. 0% 30,703 10. 0% 35, 000 1,16,145 27,444 22. 0% 0.0 % 1
Slide 31: Profitability & Ownership Performance
PROFITABILITY & OWNERSHIP PERFORMANCE (INR in Lakh) ROCE % Price to Earnings 1,40,000 21.82% 23. 00% 25.00 20.50% 20.40% 23.80 1,20,000 19.92% 18.20% 21. 00% 20.00 1,00,000 88,737 21.60 82,205 19. 00% 80,000 73,972 15.00 18.25 63,398 63604 17. 00% 15.80 60,000 10.00 14.20 15. 00% 40,000 5.00 13. 00%
Slide 32: Snapshot of Consolidated Financial Results
SNAPSHOT OF CONSOLIDATED FINANCIAL RESULTS (INR in Lakh) Revenue from Operations Summary of EBITDA Summary of PAT 2018-19 2017-18 2018-19 2017-18 2018-19 2017-18 NEL 1,36,054 1,13,224 30,703 26,392 17,747 15,322 eSense 2,330 1,730 291 (251) (113) (510) Indiannica 6,447 5,740 (1,967) (1,062) (2,865)
Slide 33: Shareholding Pattern and Market Cap
SHAREHOLDING PATTERN AND MARKET CAP 60,000 (INR Mn) Shareholding as at Mar 31, 2019 50,000 16.67 40,000 37,950 34,087 5.23 30,000 25,587 23,640 20,110 20,000 16.21 61.89 10,000 0 Promoter & Promoter Group Domestic Institutional Investors FY15 FY16 FY17 FY18 FY19 Foreign Institutional Investors Non-I
Slide 34: Contact Details
CONTACT DETAILS NAVNEET EDUCATION LIMITED Corporate Identity Number L22200MH1984PLC034055 Corporate Office & Regd. Office : Navneet Education Limited, Navneet Bhavan, Bhavani Shankar Road, Dadar-(West), Mumbai – 400028. Website: www.navneet.com E-mail Id: investors@navneet.com Investor Relations Con