Cl Educate Ltd. · NSE:CLEDUCATE
Cl Educate — Q4 FY2020 Earnings Presentation
32 slides from Cl Educate's earnings presentation, 2020
Slide 1: Q4 FY19-20 Investor Presentation
Excellence In Education. Since 1995 Q4 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
Contents COVID Impact Business Updates Asset Light Model Financial Updates 4 Presented by: CL EDUCATE LIMITED
Slide 5: COVID 19 Impact Observations
COVID 19 • Reduced Industry segment – Touch & Non-Touch; Education (non-Touch) → Premium Education (Touch) • New business development – Consumer & Enterprise – restricted to digital services Impact • Enterprise Biz – Q4 struggles; Consumer Biz – Second half Mar 20 washed out • FY21 to be hugely affe
Slide 6: 3 Opportunities 3 Challenges 3 Outcomes
3 Challenges 3 Opportunities • Growth • Disruptive state • ARPU sharp decline • Basket expansion with no Additional capital • Re-writing - Organization & Mindset • Building Digital Competencies 3 Strategies 3 Outcomes • Defend the defensible – Financial health priority • Revenue Impact ~ 25 Cr • Uni
Slide 7: Product Focus Matrix
Product Focus Matrix A1 B1 C1 Top Tier A2 B2 C2 Mid Tier A3 B3 C3 Sachet Mature Growth Incubation 7 Presented by: CL EDUCATE LIMITED
Slide 8: Contents
Contents COVID Impact Business Updates Asset Light Model Financial Updates 8 Presented by: CL EDUCATE LIMITED
Slide 9: FY20 Consolidated Business Snapshot
FY20 Consolidated Business Snapshot Enrollments 36% ✓ 115,791 – Mar 20 Business EBITDA 12% ✓ 85,272 – Mar 19 37.3 Cr – Mar 20 COVID Impact: 10K 42.5 Cr – Mar 19 COVID Loss: 10 Cr Total Revenue 8% Adjusted Net Profit ✓ 324 Cr – Mar 20 38% ✓ 352 Cr – Mar 19 ✓ 12.8 Cr – Mar 20 COVID Loss: 25 Cr ✓ 20.8
Slide 10: Business Update - Consumer Segment
Business Update - Consumer Segment Digital & Sachet Biz – Powering Growth Consumer KPIs FY20 FY19 No. of Test - Prep Centers 211 203 • Enrolments up ~36%. All products showing +ve growth No. of enrolled TP students 115,791 85,272 • Engg & Medical enrolments up by ~90%; IPM up by ~44% %age of online
Slide 11: Enterprise Segment
Enterprise Segment The Virtual Events Platform (VEP) Enterprise Biz - Snapshot • Corporate: • Biz impact of COVID 19 felt during entire Q4 FY20. ~10 Cr • Singapore Biz doubled. • Digital channels being accessed for delivery of services • VEP looks promising • Institutional: • Advt Biz has been flat.
Slide 12: Contents
Contents COVID Impact Business Updates Asset Light Model Financial Updates Presented by: CL EDUCATE LIMITED 12
Slide 13: Focus on Continuing Business Lines
Focus on Continuing Business Lines • Merger • Consolidation of entities ✓ Acquired businesses ✓ Related entities ✓ Legacy businesses • Discontinued lines of Operation • Write-Offs ✓ Lighter Balance Sheet ✓ Easier to decipher ✓ Financial Statements reflect active business lines Presented by: CL EDUCA
Slide 14: One-time Exceptional Write-Offs FY20
One-time Exceptional Write-Offs FY20 Vocational • Outstanding FY-19 ~24.6 Cr Schools • Impairment Taken: ~41.5 Cr • Write Off Taken: ~5.8 Cr Others • Write Off Taken: ~10.3 Cr • Related Asset Impairments: • BP Balances & Other ~9.1 Cr Receivables: ~1.9 Cr • No new projects since 2015 • Total Impact:
Slide 15: Contents
Contents COVID Impact Business Updates Asset Light Model Financial Updates Presented by: CL EDUCATE LIMITED 15
Slide 16: FY20 Consolidated Financial Snapshot
FY20 Consolidated Financial Snapshot EBITDA ✓ 8.6 Cr – Mar 20 Net Profit ✓ 40.1 Cr – Mar 19 ✓ (52.6) Cr – Mar 20 Adjusted PAT ✓ 20.1 Cr – Mar 19 12.8 Cr– Mar 20 Adjusted EBITDA 37.3 Cr– Mar 20 Total Revenue ROCE ✓ 323.9 Cr – Mar 20 ✓ 352.5 Cr – Mar 19 ✓ (1.8%) – Mar 20 Adjusted ROCE ✓ 8.6% – Mar 19
Slide 17: FY 2020 Business EBITDA & PAT
FY 2020 Business EBITDA & PAT Rs. In Cr. FY20 FY19 ✓ Exceptional items: 41.5 Cr – One-time Business EBITDA 37.3 42.5 impairment write-off Add: SP Revenue 0.1 2.4 Less: Vocational write off 10.3 4.8 ✓ School Related Asset Impairment: 9 Cr Less: One time Write-Offs (NF, BPs, etc.) 18.6 - ✓ Vocational
Slide 18: FY2020 Consolidated Financial Results
FY2020 Consolidated Financial Results FY20 FY19 Y-o-Y (%) Revenue from operations 308.7 339.3 -9.0% Total Income 323.9 352.5 -8.1% Total expenses 337.6 328.1 2.9% EBITDA 8.6 40.1 -78.5% Exceptional items 41.5 - Net Profit (52.6) 20.1 Adjusted Net Profit 12.8 20.8 -38.2% Mar 20 Mar 19 Business EBITDA
Slide 19: FY 2020 Segmental Metrics
FY 2020 Segmental Metrics Rs. In Cr. Particulars FY20 FY19 YoY (%) Total Revenue from Operations^ 308.4 339.0 -9.0% Consumer 173.0 194.5 -11.1% - Test Prep 174.6 182.1 -4.1% Revenue - Publishing* (1.6) 12.5 -112.6% Enterprise 135.4 144.5 -6.3% - Corporate 115.4 126.0 -8.5% - Institutional 20.0 18.4
Slide 20: Consolidated: Cash Position
Consolidated: Cash Position Rs. In Cr. Cash Position Jun 20* Mar 20 Mar 19 MF Investments 37.8 37.2 27.4 Fixed Deposits 21.6 9.4 16.5 Cash & Cash Equivalents 21.1 11.4 10.4 Total 80.5 58.0 54.4 * Management Estimates (Unaudited Figures) Presented by: CL EDUCATE LIMITED 20
Slide 21: Merger Update
Merger Update • Merger process stalled due to COVID ✓ Last 4 Hearings postponed ✓ Next Date is in July • NCLT Chandigarh moving to VC mode, but not hearing Merger matters yet • As things stand: ✓ Best Case Scenario: December ✓ More Realistic: March ’21 Presented by: CL EDUCATE LIMITED 21
Slide 22: 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 23: Annexures
Annexures 23
Slide 24: 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 25: 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 26: 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 27: 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 28: Consumer Vertical: 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 29: Enterprise Vertical
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 30: 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 31: 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 32: Two Big Rocks - Corporate
Two Big Rocks - Corporate Consolidation Realignment 32 Q4 FY20 Investor Presentation