Aptech Limited · NSE:APTECHT
Aptech — Q4 FY2012 Earnings Presentation
21 slides from Aptech's earnings presentation, 2012
Slide 1: Conference Call Presentation Q4 FY12
YOUR POTENTIAL Conference Call Presentation TEReL ILEASH Q4 FY12
Slide 2: www.aptech-worldwide.com
www.aptech-worldwide.com 2
Slide 3: Revenue and PBT 2006-2008 (ex-China)
Financial numbers in INR million and exclude China business -175, 2006 2007 2008 =183 Revenue -#PBT www.aptech-worldwide.com
Slide 4: Internal Challenges
Internal Challenges Losses in Ex-China business in spite of revenue growth Only ACE and Arena(dom. & intl.) profitable Too many brands in investment phase Government ICT project business losing money Corporate Training business unable to scale-up profitably Response to shift in market www.aptech-wor
Slide 5: External Challenges
External Challenges 2008 Recession— Prolonged Economic Turmoil Over-capacity in Engineering, a direct substitute Slower growth in manpower needs of end verticals Exponential increase in Career options forthe TG Slower adoption of online testing due to CAT debacle Higher competitive intensity; many n
Slide 6: Strategic Response
STRATEGIC RESPONSE www.aptech-worldwide.com 6
Slide 7: Growth and Efficiency
Growth Efficiency / * 1 J Ve Inorganic — Organization Growth Redesign Turnaround & Consolidation Franchising Focus www.aptech-worldwide.com \
Slide 8: Education For All partnerships
= Microsoft wy) Go oogle Middlesex y University » FY12 -4000 om Education For All enrollments 'HE PEOPLE'S Q RMIT FY12 -4800 NIVERSITY UNIVERSITY enrollments | Software Vendors www.aptech-worldwide.com
Slide 9: Inorganic Growth
Inorganic Growth i> hungama oc >> ~~ Acquired 100% in 2010 Leadership position in Animation & Multimedia training with Arena ent express ENGLISH LEARNING ACADEMY Acquired 100% stake in First English in 2009 for a 4 center operation Philippines 40:60 partnership with New Life Group Cash breakeven and
Slide 10: Focus on International
Focus on International Retail Revenue Distribution CY 2007 YE Mar 10 YE Mar 12* 27% 34% ppeeeatl | : ss . | _ Domestic International ¢ Entry into New Country — Aptech Aviation: In Malaysia — Malaysia, Rwanda, Maldives, Japan, — Aptech English: In Pakistan, UAE, Russia, Kyrgyzstan, Poland Saudi Arabi
Slide 11: Scaling Up Testing Business
Scaling Up Testing Business 7.7 5.1 6.2 | YEMar YEMar YEMar YEMar YEMar YEMar 07 08 09 10 11 12 Revenue EBITDA ~22% revenue CAGR over three years through focus on sustained market creation Developed many new large customers such as AICTE, ICFAI, NASSCOM Symbiosis revenue share reduces from 79% in YE
Slide 12: Rebranding
Rebranding Adopted 'Corporate Branding‘ 4 APTECH architecture Applicable to all existing brands and new businesses except Arena & MAAC IS NOW aleael scuroameanee Dynamic, aggressive identity = connecting with youth and Kee csbll AEC scuusone communicating Aptech’s brand idea — — of ‘Shaping Human Ta
Slide 13: Manpower and Senior Management Reduction
Manpower* Senior management reduced from team reduced from 775 to 609 11to7 Common Support Layer Domestic Retail International International Retail Retail Learning Services Enterprise Business Outsourced non- core activities (e.g. ITsupport, Logistics delivery) * Includes members on ralls and on con
Slide 14: Aptech Aviation
Aptech Aviation — Aptech Networking —Training Solutions * Changes in business model — Empanelled trainers vs. Full- time trainers for Training Solutions Aptech Aviation royalty model changed from 40% to 28% Aptech Networking centers cross-sold to Aptech Computer Education centers ¢ Shift from ‘Inves
Slide 15: Reduction in Number of Own Centers
Reductionin number of Own Centers Number of Own Centers from 21 to 9 (excludes MAAC) Closed 6 and franchised 6 own centers Expected further reduction— 4 centers EBITDA Improvement Dec-09 Mar-12 ACE —Networking Mar-09 Mar-12 ACE Networking — English EBIT figuresin INR Lakh www.aptech-worldwide.com
Slide 16: Priority - Bottom-line!
Priority — Bottom-line! Conscious Decisions With Negative Revenue Impact Change in MAAC accounting policy Withdrawal of Internship product Exit from own centers Conversion of Aptech Aviation franchisee model from 40% royalty (faculty provided by Aptech) to 28% royalty (faculty on franchisee’s payrol
Slide 17: Achievements!
ACHIEVEMENTS! www.aptech-worldwide.com 17
Slide 18: Strong Balance Sheet!
Aptech Strong Balance Sheet! 31% Mar FCF from MAAC Buy- Net Amount Operations + out+ 2009 Net km me Cash Pe from China eA Interest = Dividend + JV Rs.95 Rs. 692 Income Investments ssi million Rs. 745 Rs. 499 million million million 31% Mar 2012 Net Cash Rs. 1033 million www.aptech-worldwide.com
Slide 19: Aptech Consolidated Results ex-China
Aptech Consolidated Results ex- China — 6 year Comparative CY06 FY10* FY11 FY12 *FYLO was a15 month period All figuresin INR million www.aptech-worldwide.com
Slide 20: Growth Engines!
Growth Engines! Undisputed market leader inthe Animation & Multimedia training segment with a strategy to expand the industry scope to the growing Media & Entertainment vertical. Uniquely positioned to leverage presence in 40+ emerging markets by expanding presence (Length, Breadth & Depth) and intr
Slide 21: Thank You
THANK YOU www.aptech-worldwide.com 21