Aptech Limited · NSE:APTECHT
Aptech — Q2 FY2016 Earnings Presentation
28 slides from Aptech's earnings presentation, Oct 27, 2015
Slide 1: Aptech Limited Investor Update – Quarter Ending 30th Sep 2015
APTECH LIMITED Investor Update – Quarter Ending 30th Sep 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation concerning our future growth prospects are forward looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward‐looking statements. The risks and unc
Slide 3: MD & CEO's Message
MD & CEO’s Message Dear Friends, The company continued to build on the positives of the first quarter in Q2 FY16 as well. Double digit growth in domestic retail booking especially with the largest segment, Animation & Multimedia, growing much faster than other brands was significant. After successfu
Slide 4: Summary
Summary • Operating revenue of Rs. 368.4 million (16.6% Y-o-Y ↓) • Operating EBITDA was Rs. 46.8 million (34.2% Y-o-Y ↓) • PAT of Rs. 27.5 million vs. Rs. 49.2 million in Q2 FY15 (44.0% ↓) • 80%+ decline in income is on account of external factors and MAAC accounting policy change • Decline in reven
Slide 5: Q2 FY16 Financial Results
Q2 FY16 FINANCIAL RESULTS All financial figures in Rs. million 5 www.aptech-worldwide.com
Slide 6: Revenue & Profitability – Q2 FY16
Revenue & Profitability – Q2 FY16 -8% 500.0 0% 450.0 -10% 400.0 -17% 350.0 -20% 300.0 250.0 -34% -30% 200.0 -44% -45% -40% 150.0 100.0 -56% -50% 50.0 442 368 71 47 47 21 13 12 59 33 49 28 - -60% Operating Revenue* Operating EBITDA Operating EBIT Other Income Profit Before Tax Profit After Tax * Oper
Slide 7: Expenses – Q2 FY16
Expenses – Q2 FY16 160.0 20% 140.0 10.3% 10% 6.9% 5.9% -6.7% 0% 120.0 -10% 100.0 -20% 80.0 -30% -35.3% 60.0 -47.7% -40% -50% 40.0 -60% 20.0 -68.7% -70% 104 110 151 98 35 39 80 75 24 26 1 0 10 5 - -80% Employees Cost Training & Marketing & Administration Depreciation Interest Income & Wealth Educatio
Slide 8: Segment Results – Q2 FY16
Segment Results – Q2 FY16 Segment Revenue Segment EBITDA 112 92 16 4 Retail Non-Retail Unallocable -44 357 303 84 65 -57 Retail Non-Retail Segment EBIT Capital Employed -61 -49 96 75 12 Retail 0 Non-Retail Unallocable 272 274 108 90 1,928 1,918 Additional unallocable income and expenses of Rs. 6.7 R
Slide 9: Key Balance Sheet Information
Key Balance Sheet Information Liabilities Assets Receivables 0 306 Debt Trade 0 333 Cash & Cash Reserves & Equivalents 1,883 375 Surplus 1,831 379 Net Fixed Assets Share Capital 399 339 399 338 0.00 500.00 1,000.00 1,500.00 2,000.00 0.00 100.00 200.00 300.00 400.00 9 www.aptech-worldwide.com
Slide 10: Sub-segment Revenue – Q2 FY16
Sub-segment Revenue – Q2 FY16 Retail Non-Retail 38 Others 26 Others 44 19 Animation & Multimedia 169 187 Assessment & Testing 39 IT Training 96 65 127 0.0000 50.0000 100.0000 150.0000 200.0000 0.0000 20.0000 40.0000 60.0000 80.0000 10 www.aptech-worldwide.com
Slide 11: Key Highlights
Key Highlights • Domestic Retail revenue declined by 15.8% – Apart from MAAC accrual impact, sharp decline of alliance income in IT Training impacted the Domestic Retail segment • Local regulatory issues for students in Africa led to lower income from University enrolment drive in International Reta
Slide 12: Key Highlights
Key Highlights • New centre sign-up and renewal fees up by 15.6% vs. Q2 FY15 – 23 new centres signed in Q2 FY16 (7 international) against 21 in Q2 FY15 (7 international) – 3 new centres out of the 23 sign-ups for the new Lakme Academy Powered by Aptech brand – Y-o-Y increase of 49.9% in renewal inco
Slide 13: Key Highlights
Key Highlights • Increase in manpower expenses by 5.9% mainly on account of increase in long term provisions such as gratuity and leave encashment • Decline in Training & Education expenses by 35.3% due to decline in project-based income and lower franchisee share on MAAC accrual income • Depreciati
Slide 14: Operating Information
Q2 FY16 OPERATING INFORMATION All financial figures in Rs. million 14 www.aptech-worldwide.com
Slide 15: Network (# of Centers) By Brand
Network (# of Centers) By Brand Domestic Retail International Retail & Lakme Banking English Aviation MAAC Arena Center closures have been 4 Center closures have been MAAC 24 0 reflected and previous 4 reflected and previous quarter’s data has been quarter’s data has been 28 Aviation corrected 1 cor
Slide 16: Regional Distribution
Regional Distribution International Revenue Network Americas CIS & Americas CIS & 0.1 2 Center closures have been 1 reflected and previous quarter’s data has been Eastern Europe corrected Europe 1 15 1 33 Middle Middle 4 16 East East 5 28 20 Africa 48 Africa 44 53 86 APAC 108 80 APAC 137 0 20 40 60
Slide 17: Employee Data
Employee Data Employee Count as on 31st March 2015 = Employee Count as on 30th September 2015 399 = 392 76 79 110 114 55 57 29 23 129 119 In addition to the above employees, there are 73 non-regular staff as on 30th September 2015 vis-à-vis 72 as on 31st March 2015 17 www.aptech-worldwide.com
Slide 18: Key Business Highlights
Q2 FY16 KEY BUSINESS HIGHLIGHTS 18 www.aptech-worldwide.com
Slide 19: Business Update
Business Update • Announced Lakme Academy Powered by Aptech, a partnership to establish beauty training academies across India – Planned launch in October/November 2015 – First center of Lakme Academy signed in Ahmedabad. Two more signed in Baroda and Surat • Booking in Domestic Retail grew by 10.8%
Slide 20: Business Update
Business Update • Entered into school segment with ‘Aptech International School’ offering with a partnership model – Brand licensing, consulting and operations support from Aptech against one-time sign-up and recurring royalty fee – MoU signed up for first school in Kabul, Afghanistan – School to be
Slide 21: Business Update
Business Update • Aptech Uganda won the award for Best ICT Training in Uganda the 3rd consecutive year • Successful delivery of 1st order for Professional Examination Board (PEB) exams in Madhya Pradesh – Expecting more orders in the coming quarters • Won the order again in re-tendering of CMAT/GPAT
Slide 22: Vietnam ICT Award
Vietnam ICT Award For 13 consecutive years, top ICT training brand in Vietnam 22 www.aptech-worldwide.com
Slide 23: Domestic Campaigns
Domestic Campaigns 23 www.aptech-worldwide.com
Slide 24: Domestic Campaigns
Domestic Campaigns 24 www.aptech-worldwide.com
Slide 25: International Campaigns
International Campaigns 25 www.aptech-worldwide.com
Slide 26: International Campaigns
International Campaigns 26 www.aptech-worldwide.com
Slide 27: Thank You
THANK YOU 27 www.aptech-worldwide.com
Slide 28: About Aptech
About Aptech Aptech commenced its education and training business in 1986 and has globally trained over 7.2 million students. Aptech has presence in more than 40 emerging countries through its two main streams of businesses – Individual training and Enterprise Business. As a leader in career educati