Tree House Education & Accessories Limited · NSE:TREEHOUSE
Tree House Education & Accessories — Investor Presentation (November 2015)
34 slides from Tree House Education & Accessories's investor presentation, November 2015
Slide 1: Tree House Education & Accessories Ltd Corporate Presentation
TREE HOUSE EDUCATION & ACCESSORIES LTD Corporate Presentation November 2015
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by and is the sole responsibility of Tree House Education & Accessories Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer o
Slide 3: Our Mission
Our Mission We aim to be one of the top 3 global brands in pre-schooling and daycare on a self- operated basis
Slide 4: Table of Contents
Table of Contents Tree House – Key Strengths Overview of India’s Education Sector About the Company Financial and Operating Performance Platform for Growth Annexures Awards, Shareholding, Organizational Structure & Management Profiles 3
Slide 5: Tree House – Key Strengths
Tree House – Key Strengths Largest self operated pre-school chain in India* • Focus on self-operated pre-schools, enables expansion planning • Supported by franchisee pre-schools, related pre-school brands, daycare centers • Services to K-12 schools provides forward integration opportunities in pre-
Slide 6: Overview of India's Education Sector
Overview of India’s Education Sector
Slide 7: Indian Education Sector
Structure of the Education Industry in India India’s preschool market to double by FY18 (INR bn) 180 164.7 160 138.3 140 116.1 120 97.2 K-12 100 80.4 Indian Education Sector Formal 80 66.4 Education 60 Higher Education 40 20 0 Preschool FY13 FY14 FY15E FY16E FY17E FY18E Break up of Market Size 2012-
Slide 8: Favorable Macro Environment
Favorable Macro Environment India growth story • As India’s economy continues to grow, a larger section of population will want access to quality education India; population & urbanization trend Rising urbanization Population Urban Urban Year (mn) (mn) (%) • Higher level of awareness among parents t
Slide 9: About the Company
About the Company
Slide 10: Who we are
Who we are We are India’s leading educational service provider operating the largest number of branded self-operated pre-schools* 9 Source- CRISIL Industry Report on Pre-schools (Play group and Nursery) in India - August 2013
Slide 11: Our journey so far
Our journey so far • Acquired pre-school business • Successfully raised Rs. 2 bn Global Champs in September through a QIP issue 2012 • Monetized investments in physical assets of K-12 schools • Investments of INR 412 mn worth INR 171 mn and have • Started providing from ON Mauritius and Aditya signe
Slide 12: Our Network
Our Network Pre-schools K-12 schools No. of pre-schools 612 490 schools 379 302 FY12 FY13 FY14 FY15 H1 Present in FY16 Maharashtra, Gujarat and Rajasthan No. of cities Telengana 88 63 37 43 FY12 FY13 FY14 FY15 H1 FY16 11 Numbers in the map indicate the number of pre-schools in each state
Slide 13: Our Business Overview - Pre-schools
Our Business Overview - Pre-schools Pre-school Business Model Self-operated Franchise Pre-schools Pre-schools Self operated Targeting pre-school OFFERINGS India’s non chain targeting discretionary an untapped Playgroup consumption segment: the Nursery Junior KG spending urban Senior KG aspir
Slide 14: Our Advantage
Our Advantage High-Quality Programs • Tree House’s unique curriculum blends the best of Playway and Montessori methods to provide a perfect balance of education and fun • Curriculum content delivered uniformly across the country Holistic Developmental Education • Learning methods develop the child’s
Slide 15: Our Business Strategy (Pre-school)
Our Business Strategy (Pre-school) Tested business model Only scaled up self operated pre- school chain in India * CRISIL Industry Report on Pre-schools (Play group and Nursery) in India (August 2013) Market Penetration Brand Strategy Positioning • Going deep v/s going wide – creating Management • A
Slide 16: Pre-school Economics
Pre-school Economics Particulars INR 100 students * Fees- INR 45,000 per year 4,500,000 Camps / activity classes 1,000,000 Annual revenue: 5,500,000 Rental expense 900,000 7 teachers * INR 7,000 per month 588,000 1 center head 180,000 Maids ( 3* INR 3,000) , security (1* INR 6,000), utilities (2,000
Slide 17: K-12 Overview and Strategy
K-12 Overview and Strategy Provide school management services (annuity income) to K-12 schools in pre- school clusters K-12 Strategy Logical extension of our preschool business – pre-schools as feeders to K-12 schools The company enters into long term contracts to provide school management services
Slide 18: Financial and Operating Performance
Financial and Operating Performance
Slide 19: Financial Trends
Financial Trends Revenues from Operations (INR mn) EBITDA* (INR mn) & Margins 1400 57% 59% 70% 54% 54% 57% 1,187 1200 60% 2,075 1000 43% 892 50% 1,576 744 1,263 800 40% 1,143 618 600 420 30% 772 400 20% 392 169 200 10% 0 0% FY11 FY12 FY13 FY14 FY15 H1 FY16 FY11 FY12 FY13 FY14 FY15 H1 FY16 PAT (INR m
Slide 20: Q2 & H1 FY16 Performance
Q2 & H1 FY16 Performance Particulars (in Rs. Q2 FY16 Q2 FY15 Growth H1 FY16 H1 FY15 Growth mn) Revenue from 572.5 497.6 15.1% 1,262.8 1,036.7 21.8% Operations Operational EBITDA 301.5 296.9 1.6% 743.5 629.6 18.1% EBITDA Margin 52.7% 59.7% (700)bps 58.9% 60.7% (180)bps PBT 187.4 193.3 (3.1)% 493.8 43
Slide 21: Financial Highlights- Update on Receivables
Financial Highlights- Update on Receivables As the table below explains, nearly 50% of the outstanding receivables as on 30th September 2015 have since been received and we are on track to recover the balance. Debtors mentioned in the unaudited financials can be summarized as follows: Rs. In lacs. P
Slide 22: Q2 FY16 Operational Highlights
Q2 FY16 Operational Highlights Pre Schools net addition of pre-schools in Q2 FY16 centers as on September 30, 2015 • The number of self-operated preschools is 611 • Ratio of self operated preschools to total preschools is 85% • The Company’s initiative to provide low cost quality pre-primary educati
Slide 23: Q2 FY16 Operational Highlights
Q2 FY16 Operational Highlights K-12 School management services • The Company is providing school management services to 24 K-12 schools in 3 states in India Employee Strength • Total staff strength as on September 30, 2015 is 2,576 • Total teacher strength as on September 30, 2015 is 2,453 Day Care
Slide 24: Management Views
Management Views Commenting on the Q2 FY16 results, Mr. Rajesh Bhatia, Managing Director of Tree House, said: Financial Analysis Q2 was another positive quarter for Tree House. We made further progress towards our goal of expanding brand presence nationwide, generating value and above all creating a
Slide 25: Management Views
Management Views Key centers to be Re-branded: Over the next two years, 100 key centers shall be upgraded and re-branded “Tree House i” where i stands for Innovation, Ideation, Imagination and Information. In these centers, Tablets with fully loaded curriculum for students aged 3.5 years to 6 years
Slide 26: Platform for Growth
Platform for Growth Ployoroup & Nursery
Slide 27: Robust Platform to drive mid-long term growth
Robust Platform to drive mid-long term growth Non-discretionary consumption-led business model driven by …a proven & institutionalized framework for expansion Dedicated regional • Team focused on creating high management resources quality education content o Marketing and brand • Programs designed
Slide 28: Growth Initiatives
Growth Initiatives Expansion Continue thrust on expanding self operated pre school center network in new and existing geographies Focus on Training and Development Create a platform to encourage talent growth Sustained investments towards Tree House's in- house training system to deliver quality edu
Slide 29: Annexures
Annexures Playgroup & Nursery
Slide 30: Awards & Recognition
Awards & Recognition • ‘Tree House’ acknowledged as India’s Most Trusted Brand in the Pre-School category in a 2014 study conducted by TRA (formerly Trust Research Advisory) • Best PE/VC backed Education Company – VC Circle (2013) • Amongst top 10 innovative companies in India – Fastcompany.com ( 20
Slide 31: Shareholding pattern
Shareholding pattern Top 10 Shareholders Name Holding Matrix Partners India Investment Holdings 12.05% Others, 8.25% LLC FC VI India Venture Promoters, 6.85% Mauritius Ltd Foreign 29.97% Corporate Bajaj Holdings and Bodies, 5.75% Investment Ltd 22.07% Mondrian Emerging Markets Smallcap Equity 3.28%
Slide 32: Key Management Profiles
Key Management Profiles Sanjay H. Shah – CFO, Chief of Compliance and Rajesh Bhatia – Managing Director Head- Investor Relations • Mr. Bhatia is the Promoter and Managing • Mr. Shah is an FCA, Dip IFRS (UK), MFM Director of the Company (JBIMS), DISA (ICAI) and joined the • Holds a Bachelor of Engine
Slide 33: Education Advisory Committee
Education Advisory Committee Dr. Prerna Mohite – Head of Advisory Board • PhD in Early Child Development • Ex-Dean and Professor of Human Development at MS University, Vadodara • Has 43 years of experience The Advisory Board has over Ms. Shama Kittur 100 years of early childhood related • Diploma fo
Slide 34: Thank You
Thank You For further information please contact: Sanjay H Shah Shiv Muttoo/Urvashi Butani Tree House Education & Accessories Limited CDR India Tel: +91 22 61306130 Tel: +91 22 66451207 / 1219 E-mail: [email protected] Email: [email protected] [email protected] 33
Tree House Education & Accessories — Investor Presentation (November 2015) on 6ix