TAL Education Group · NYSE:TAL
TAL Education — Investor Presentation (July 2020)
16 slides from TAL Education's investor presentation, July 2020
Slide 1: TAL Education Group Investor Presentation
TAL TAL Education Group Investor Presentation July 2020
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by TAL Education Group (the “Company”) solely for informational purposes and does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company in any jurisdiction or an inducement to enter into inv
Slide 3: Mission, Vision and Values of TAL
Mission, Vision and Values of TAL Advancing Education through Science and Mission Technology Vision To be a respectable education institution Customer Orientation, Pragmatism, Innovation, Values Cooperation 2
Slide 4: Company Highlights
Company Highlights Industry Leader in Large and Attractive Market Strong Brand, Recognized for High Quality Teaching, Proprietary Content, and Student Outcomes Significant Scale and Reach Offline and Online Strong Operational Performance with Consistent Growth High Visibility Recurring Revenue Model
Slide 5: What We Do
What We Do Comprehensive Tutoring Service Offering We develop multi-subject, multi-year relationships with our students We Cover Core Subjects in the K-12 School Curriculum 1 Primary School Middle School High School K 1 2 3 4 5 6 7 8 9 10 11 12 Mathematics English Chinese Physics Chemistry Biology P
Slide 6: Reform of College Entrance Examination Creates New Opportunities
Reform of College Entrance Examination Creates New Opportunities Examination-Focused Education System Examination-Focused Education System 1 “3+Comprehensive Exam” to “3+3” Higher College Entrance 3+Comprehensive Exam: Choose Examination Education – “Gao Kao” between Comprehensive Liberal Arts and C
Slide 7: Based Upon High Teaching Quality and Differentiated Proprietary Content
Based Upon High Teaching Quality and Differentiated Proprietary Content Optimized Teacher Management System Selective Hiring Comprehensive Rigorous Evaluation Process Training Process • Top university graduates • Comprehensive new teacher • Continuous evaluation • Rounds of tests and interviews trai
Slide 8: Straightforward Strategy to Expand Scale Both Offline and Online
Straightforward Strategy to Expand Scale Both Offline and Online Growth Strategy 1 Further penetrate existing markets by both online and offline offerings 2 Enter new markets: Target to enter new cities each year 3 Enhance content offering across subjects and grade levels 4 Maintain premium pricing
Slide 9: Online and Mobile Platform Now Covers the Student Lifecycle
Online and Mobile Platform Now Covers the Student Lifecycle Minority Strategic Investment Main portal to TAL Education’s education-related platform Social platform for Preschool, Mathematics, Preparation for Preparation for Preparation for expecting and kindergarten, and competitions, and China's hi
Slide 10: Large Untapped Geographic Expansion Opportunity
Large Untapped Geographic Expansion Opportunity Incremental Center Opportunities # of Small Class Centers # of Small Class Centers # of # of Small Class Centers # of # of # of # of # of Year Year Year # of # of Firstleap One-on- Total # of # of Firstleap One- Total # of # of Firstleap One- Total Cit
Slide 11: Ongoing Progress Since IPO in Fiscal Year 2011
Ongoing Progress Since IPO in Fiscal Year 2011 Expanding Scale Increasing Geographical Footprint # of City Covered # of Learning Centers % of Xueersi Peiyou Small Class Revenue Generated Outside Top Five Cities +1400% +721% 90 936 46% 46% 44% 43% 42% 114 6 Q3 FY2011 Q1 FY2021 Q3 FY2011 Q1 FY2021 Q1
Slide 12: Enrollment Growth Drives Topline Growth
Enrollment Growth Drives Topline Growth Revenue US$MM CAGR: 44% 3,273 2,563 1,715 YoY: +35% 1,043 911 620 673 178 226 314 434 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 1 Q1 Q1 FY2020 FY2021 Student Enrollments of normal priced Revenue Contribution long-term course ’000s YoY: +72
Slide 13: Ongoing Investments to Increase Future Growth
Ongoing Investments to Increase Future Growth Gross Profit US$MM 1805 CAGR: 55% 1399 YoY: 833 +28% 521 481 316 377 162 231 82 110 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 1 Q1 Q1 FY2020 FY2021 Margin: 46.2% 48.8% 51.7% 53.2% 51.0% 49.9% 48.6% 54.6% 55.1% 56.0% 52.8% Operating I
Slide 14: While High Visibility Cash Flows Provide Strength to Balance Sheet
While High Visibility Cash Flows Provide Strength to Balance Sheet Cash, Cash Equivalents, Term Deposits and Short- term Investments Deferred Revenues US$MM 2,914 US$MM 1,495 2,219 1,499 1,516 842 781 700 519 436 199 209 270 492 479 86 103 132 178 289 Feb Feb Feb Feb Feb Feb Feb Feb Feb May Feb Feb
Slide 15: Experienced Management Team and Distinguished Board
Experienced Management Team and Distinguished Board Bangxin Zhang: CEO and Director since our inception Yunfeng Bai: Chairman since Jan 2020, President since Oct 2016, Senior VP of TAL from Apr 2011 to Oct 2016, 15+ years with TAL Jane Jie Sun: Audit Committee Chair, Independent Director since Oct 2
Slide 16: Thank You
Thank You Investor Relations Contact: [email protected] +8610 5292 6658 15/F Danling SOHO, No. 6 Danling Street, Haidian District, Beijing 100080
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