Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q3 FY2021 Earnings Presentation
35 slides from Cl Educate's earnings presentation, February 2021
Slide 1: Q3 FY20-21 Investor Presentation
Excellence In Education. Since 1995 Q3 FY20-21 Investor Presentation © 2015, Christensen Investor Relations (I) Private Limited. All Rights Reserved. 1 Presented by: CL EDUCATE LIMITED
Slide 2: Core Values
Core Values 2 Presented by: CL EDUCATE LIMITED 2
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by CL Educate Limited (the “Company”) solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person. This presentation and its contents are confidential and should not
Slide 4: Contents
Contents Strategic Shift Beyond COVID Business Updates Financial Updates 4
Slide 5: Education Industry: Landscape & Events
Education Industry : Landscape & Events EdTech Funding Amount Revenue FY19 EBITDA FY19 (USD Mn) (USD Mn) (USD Mn) 922.0 193.3 12.5 260.0 3.2 (12.8) 130.0 1.8 (3.7) • Data as per various reports for fundraise in 2020 Byju Acquisitions Unacademy Acquisitions $ 1 Bn $ 300 Mn $ 150 Mn* $ 50Mn $ 5Mn 5 *
Slide 6: Our Strategic View
Our Strategic View • Growth war-chest necessary • Investment Opportunities being explored in: • CL Digital • Kestone • Fund Raise targeted: • CL Digital: $30-40mn • Kestone: $10-15mn • Investment Bankers engaged: • CL Digital: Edelweiss • Kestone: Soma Advisory Partners, LLC - California 6
Slide 7: CL Educate
, Z Career CL Educate (© Launcher
Slide 8: Why will we win?
Why will we win? Digital Innovators 01 - 3 years of incubation by parent. - Proven Unit economics / Scale-up ready - Young Leadership Differentiator 02 - Outcome Delivery - Gross margin 65-94 pc Large Opportunity 03 - 40-60 Million (17-30) India Alone - Not crowded. Significant Moat 8
Slide 9: Career Launcher: Salient Points
Career Launcher: Salient Points Use of Funds: • Prod-Tech (25-30%) • ‘App’ified Learning • Tech-driven Content • Brand & Marketing (40%) Capital Structure: • Move Career Launcher business to a wholly owned subsidiary • Raise funds at Revenue Multiple in this entity 9
Slide 10: Virtual Event Landscape
Virtual Event Landscape Our Clients Globally Virtual Platform Growth - Expected 2500 2339 2000 Amount (in Billion USD) 1500 1300 1000 650 500 77 0 2019 2026 Virtual On Ground Events Annual Growth rate of 35% for Virtual Platforms Virtual will grow from 5% of overall events spend to 20% more than 20%
Slide 11: Kestone VEP
Kestone VEP teri | 25 WORLD WORLD SUSTAINABLE SUSTAINABLE DEVELOPMENT oe , R DEVELOPMENT SUMMIT 2021 { SUMMIT 2021 WORLD SUSTAINABLE DEVELOPMENT SUMMIT 2021 - iifranpuscuae riba
Slide 12: Kestone: Salient Points
Kestone: Salient Points Use of Funds: • Business Expansion • North America & APAC • Domains • Sales & Marketing (30%) • Technology (40%) – App, AR / VR Experience Capital Structure: • Investment most likely in Singapore subsidiary on revenue multiplier • Final decision to be based on discussions wit
Slide 13: Contents
Contents Strategic Shift Beyond COVID Business Updates Financial Updates 13
Slide 14: Thinking Beyond COVID
Thinking Beyond COVID Businesses have started to re-open and students are starting to return to their place of study. Study Centers currently operating as POS, will also soon recommence delivery in States where permission has been granted Digital continues to be critical going forward, now very much
Slide 15: Contents
Contents Strategic Shift Beyond COVID Business Updates Financial Updates 15
Slide 16: Test Prep Business Progression
Test Prep Business Progression • Q3: Volumes up 17% Y-o-Y; Billing up 5% Y-o-Y • Digital Biz grown to nearly 3x in YTD Dec 20 (42.4cr) as compared to YTD Dec 19 (14.8cr) • Sign of recovery in MBA & Law • MBA – Volumes up 19%; • Law – Volumes coming back. Up 12% • Kestone Biz continues recovery in Q3
Slide 17: Our Virtual Universe – A Business of Kestone Group
Our Virtual Universe – A Business of Kestone Group Vision: “Solving experiential business & marketing problems digitally” Solution: • SaaS based platform • Virtual Conference Platform • Virtual Experiential ecommerce platform 17
Slide 18: Virtual Conference Platform
Virtual Conference Platform A gathering of people sharing a common virtual environment on the web platform. Highly interactive and look/feel a lot like their physical counterparts. 3D/Virtual Lobby & Hall Interactive Booth Break Out Sessions Custom Branding Gamification Social Media Video Sharing Ch
Slide 19: Among Top 10 Platforms Globally
Among Top 10 Platforms Globally It is an honor to have Kestone Virtual Event Platform featured alongside top global brands including Microsoft, 6Connex, VFairs and Cisco in this latest report on Virtual Events Market by Grand View Research. https://www.grandviewresearch.com/industry-analysis/virtual
Slide 20: Enterprise: A Brief Snapshot
Enterprise: A Brief Snapshot Corporate Institutional • Virtual Events • Over 100 Events • Leads and Outreach driven Biz • Contributed > $1 Million model developing under new • 50% coming from Intll team • CEP biz also continues to do • Marketing Budgets remain tight well having generated biz > with
Slide 21: Contents
Contents Strategic Shift Beyond COVID Business Updates Financial Updates 21
Slide 22: Financial Snapshot
Financial Snapshot TP Enrollments Kestone Customer Base ✓ 77,063 – Dec 20 ✓ 84,563– Dec19 ✓ 150 – Dec 20 ✓ 95 – Dec 19 Touch Non-Touch ✓ 13,872 – Dec 20 ✓ 63,191 – Dec20 ✓ 43,639 – Dec 19 ✓ 41,014 – Dec 19 Consol Revenue EBITDA Margin ✓ 144.6 Cr – Dec 20 ✓ 262.1 Cr – Dec 19 ✓ 9.1% – Dec 20 ✓ 11.9% –
Slide 23: Consolidated: Cash Position
Consolidated: Cash Position Rs. In Cr. Dec 20 Sep 20 Jun 20 Mar 20 MF Investments 38.2 37.9 37.6 37.2 Fixed Deposits 12.4 19.1 23.1 12.1 Cash & Cash Equivalents 19.3 13.4 13.0 11.6 Gross Cash 69.9 70.5 73.7 61.0 Borrowings (Current & Non-Current) (39.4) (41.3) (41.5) (42.8) Net Cash 30.5 29.2 32.2 1
Slide 24: Merger Update
Merger Update • Merger process continues to be stalled due to COVID ✓ Emergency petition request for early hearing was entertained by the NCLT Bench in October ✓ 2nd Motion petition notices were issued to Statutory and Regulatory Authorities ✓ Listed for hearing on 28th January, which was postponed
Slide 25: Thank You
Thank You For Investor Relations Queries Contact Arjun Wadhwa Amit Kanabar Chief Financial Officer Investor Relations CL Educate Ltd. CL Educate Ltd. Call: +91-98116 17289 Call: +91-88009 76683 E-mail: [email protected] E-mail: [email protected] [email protected]
Slide 26: Annexures
Annexures 26
Slide 27: Merger Scheme
Merger Scheme Pre-Merger Organization Structure Post-Merger Organization Structure Upward merger of CL Educate Limited all the subsidiaries with CL Educate 1A Wholly owned subsidiaries CL Educate CLEIS CL Media GKP Kestone AKMS Consumer Enterprise Segment Segment Composite Scheme: Merger of CLEIS, C
Slide 28: Indian Education Landscape
Indian Education Landscape Operating in sizable @$100 bn+, fast-growing industry Figures in Rs Cr CL’s focus areas JEE GATE Medical MBA Law CA UPSC, SSC, 14,600 1,680 6,400 390 83 2,520 Bank PO A $100 bn+ market 11,500 growing @16% Unregulated/ Education CAGR Informal/ Test-prep/ Industry Entreprene
Slide 29: Comprehensive product portfolio in Knowledge & Career Services
CL’s portfolio Comprehensive product portfolio in Knowledge & Career Services MBA I Law I Bank/SSC I Aptitude Products (AP) International Test-prep Consumer Knowledge Products (KP) GATE I IIT I Medical I CA I Civils Services Publishing CL Group Corporates Integrated Marketing Services (Corporates) E
Slide 30: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 100% 58.95% 100% 100% 100% 100% 4.41% Accendere 361 DM Career Launcher Kestone ICEGATE GK Publications CL Media Knowledge Mgt. CLEIS Foundation Services (Associate) Research Section 8 Integrated Test preparation Content Career Launcher Research & In
Slide 31: Leader in Test-Prep Segment
Consumer Vertical Leader in Test-Prep Segment Growing Brand Equity from Sustainable Strengths Consumer Bouquet of Products (MBA, Most comprehensive product-reach portfolio: 12 Law, Civils, GATE, Engg, etc.) 1 product groups + Network of 212* centers pan India & ~25K online users in FY18 National Tes
Slide 32: Knowledge services for Corporates, Educational Institutions
Enterprise Vertical Knowledge services for Corporates, Educational Institutions Differentiated offerings + One of the best execution capabilities Knowledge Services for Corporates Sales 1 Kestone • Managed Manpower Services • Training & Development 2,500+ Marketing Creative, approachable, • Marketin
Slide 33: Unique Synergies
Unique Synergies Cross-leveraging between consumer & enterprise platforms CONSUMER ENTERPRISE Brand recognition …She then meets us in college for test across learning life CL initial brand contact prep or experiences …And then again in cycle when she is in school…. our research the workplace... serv
Slide 34: Strong team, complete focus on governance & processes
Strong ethos Strong team, complete focus on governance & processes Satya Narayanan R., Gautam Puri, Nikhil Mahajan, Professionally Chairman & Executive Director Vice Chairman & Managing Director Executive Director & CEO Enterprise business qualified, • 19+ years of experience in • 19+ years of exper
Slide 35: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 35 Q3 FY21 Investor Presentation