Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q3 FY2020 Earnings Presentation
32 slides from Cl Educate's earnings presentation, February 2020
Slide 1: Q3 FY19-20 Investor Presentation
Excellence In Education. Since 1995 Q3 FY19-20 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: Financial Performance
Contents Financial Operational Organizational Performance Performance Updates 5 Presented by: CL EDUCATE LIMITED
Slide 5: YTD Q3 FY20 Consolidated Financial Results – Brief Snapshot
YTD Q3 FY20 Consolidated Financial Results – Brief Snapshot 36.7% Total Enrollments ✓ 84,563– Dec. 19 ✓ 61,908 – Dec. 18 Adjusted Net Profit^ Revenue from Ops* ✓ 13.17 Cr – Dec. 19 50.9% -1.5% ✓ 254.54 Cr – Dec. 19 ✓ 8.73 Cr – Dec. 18 ✓ 258.38 Cr – Dec. 18 Net Profit^ -41.0% ✓ 9.15 Cr – Dec. 19 ✓ 15
Slide 6: YTD Q3 FY 2020 Adjusted EBITDA & PAT
YTD Q3 FY 2020 Adjusted EBITDA & PAT Rs. In Cr. YTD Q3 YTD Q3 % FY20 FY19 ✓ Complete IND AS 115 impact taken in Q4 EBITDA 31.19 33.15 -5.9% FY19 Adjustments ✓ SP One-time revenue of Rs 20 Lakhs per Add: IND AS 115 (Net Impact) 0.16 - month in FY19 Vocational Reversal (Net) 3.75 (2.13) ✓ FY19 Liabili
Slide 7: YTD Q3 FY 2020 Consolidated Financial Results
YTD Q3 FY 2020 Consolidated Financial Results Rs. In Cr. YTD Q3 FY20 YTD Q3 FY19 Y-o-Y (%) Revenue from operations 254.5 258.4 -1.5% Other income 7.4 8.7 -14.3% Total Income 262.0 267.1 -1.9% Total expenses 248.0 245.7 1.0% EBITDA 31.2 33.2 -5.9% PBT (Continued Ops) 13.8 21.4 -35.6% PAT (Continued O
Slide 8: YTD Q3 FY 2020 Segmental Metrics
YTD Q3 FY 2020 Segmental Metrics Rs. In Cr. Particulars YTD Q3 FY20 YTD Q3 FY19 YoY (%) Total Revenue from Operations 254.54 258.38 -1.5% Consumer ^ 158.61 170.21 -6.8% - Test Prep 137.79 140.03 -1.6% Revenue - Publishing* 20.82 30.18 -31.0% Enterprise ^ 114.33 113.62 0.6% - Corporate 96.10 96.18 -0
Slide 9: Contents: Operational Performance
Contents Financial Operational Organizational Performance Performance Updates Presented by: CL EDUCATE LIMITED 10
Slide 10: FY 2019 Operational Performance
FY 2019 Operational Performance Consumer Enterprise Business Business Presented by: CL EDUCATE LIMITED 11
Slide 11: Consumer Operating Metrics
Consumer Operating Metrics Consumer KPIs YTD Q3 FY20 YTD Q3 FY19 No. of Test - Prep Centers 191 192 No. of enrolled TP students 84,653 61,908 %age of online TP students 48.4% 32.8% No. of books sold 784,499 798,497 %age of books sold to Online distributors 22.3% 21.4% Rs. In Cr. Particulars YTD Q3 F
Slide 12: Digital & Sachet Biz – Powering Growth
Key Highlights Digital & Sachet Biz – Powering Growth • Digital Biz grew 30% (Y-o-Y) • Sachet programs – pilots launched : ~24,000 Students • GATEflix : ~17,000+ products sold in YTD Q3 FY20 • AI / ML internships – Intel & AICTE; ~7,800 Students • Growing volumes/Market share, Higher EBITDA, Digital
Slide 13: Publishing - Snapshot
Key Highlights Publishing - Snapshot • Overall market slowdown coupled with IND AS 115 has reduced the topline • Higher returns taken due to change in e-commerce environmental conditions • Core BAU Biz: ▪ Overall job market indicating a slowdown including Technical Jobs ▪ GATE Test takers down ~36%
Slide 14: YTD Q3 FY 2020 Operational Performance
YTD Q3 FY 2020 Operational Performance Consumer Enterprise Business Business Presented by: CL EDUCATE LIMITED 15
Slide 15: Enterprise Operating Metrics
Enterprise Operating Metrics Rs. In Cr. Particulars YTD Q3 FY20 YTD Q3 FY19 YoY (%) Enterprise 114.33 113.62 0.6% Revenue^ - Corporate 96.10 96.18 -0.1% - Institutional 18.23 17.44 4.5% ^Without Segmental Elimination ✓ Corporate: ➢ International business growth : 2.2x; Domestic revenue flat ➢ Focus
Slide 16: Contents: Organizational Updates
Contents Operational Financial Organizational Performance Performance Updates Presented by: CL EDUCATE LIMITED 17
Slide 17: Melting Pot events
JAN 17, 2019 MAY 03, 2018 FEB 14-15, 2020 OCT 17, 2019 https://www.meltingpot2020.com/ BENGALURU UAE MAURITIUS SILICON VALLEY 18
Slide 18: Organizational Updates
Organizational Updates ✓ Merger: NCLT – Creditors & Shareholders meeting done. ✓ Second motion filing : This week ✓ Second motion hearing: Mid-March ✓ Strengthening International presence in Middle East & Africa through inorganic & organic steps ✓ ICMA – Oman ✓ CL Educate Africa Presented by: CL EDU
Slide 19: 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 20: 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 21: Annexures
Annexures 22
Slide 22: 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 23: 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 24: Corporate Structure
Corporate Structure CL Educate Parent Company 100% 57.85% 100% 100% 100% 100% Accendere Kestone ICEGATE GK Publications CL Media Knowledge Mgt. CLEIS 44.18% Services Eduvisors Content Research Integrated Test preparation Incubation & Career Launcher development, Business, GATE based Test publisher w
Slide 25: 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 26: 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 27: Cross-leveraging between consumer & enterprise platforms
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 28: 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 29: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 30 Q3 FY20 Investor Presentation
Slide 30: Consolidation (Capital Reallocation)
Big Rock 1 Consolidation (Capital Reallocation) K12 ASSETS SALE GREATER NOIDA ASSET SALE ▪ BTA deal did not fructify; fund raising & ▪ Lack of demand – Outright Sale related challenges ▪ Potential Option – to lease out the ▪ Alternate asset sale conversations underway infrastructure 31 Q3 FY20 Inves
Slide 31: Realignment (Effort and Capital)
Big Rock 2 Realignment (Effort and Capital) GUIDING PRINCIPLES BUSINESS SEGMENT PRODUCTS BRANDS ▪ Strengthen Market Share, Civil Services/ CA growth and profitability ▪ Strategic Entry into large addressable, scalable GATE segments CONSUMER YARDSTICKS IX-XII (Maha) ▪ Return of Investment in 3 – 4 ye
Slide 32: Shareholding Pattern
Shareholding Pattern Outstanding Shares (Dec 31, 2019) Key investors 14,165,678 Investors Shareholding % GPE (INDIA) LTD / GAJA TRUSTEE COMPANY PRIVATE LIMITED 8.45 Non- SUNDARAM MUTUAL FUND A/C 6.16 Institutional, ARJUNA PTE LTD. 5.03 32.6% HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED 4.19 Promo