edu comp corporate presentation
Post on 10-Apr-2018
221 Views
Preview:
TRANSCRIPT
-
8/8/2019 Edu Comp Corporate Presentation
1/29
EducompSolutions
Limited June/July2009
-
8/8/2019 Edu Comp Corporate Presentation
2/29
-
8/8/2019 Edu Comp Corporate Presentation
3/29
3
Contents
I
IndustryOutlook
4
II CompanyOverview
8
III Financials
24
IV
GrowthStrategy
28
-
8/8/2019 Edu Comp Corporate Presentation
4/29
IndustryOutlook
-
8/8/2019 Edu Comp Corporate Presentation
5/29
5
Stablepopulationbasekeepinggrowth
opportunityaliveLow
literacy
rates
provide
opportunity
Source:Census
2001,
UNESCO
Institute
for
Statistics
database
Good for K-12
Good for highereducation
Chinaover90%
US~100%
Educationspends
in
India
are
highly
disproportionate
vis
vis
population
size
India
Largestmarketopportunityineducationintheworld
-
8/8/2019 Edu Comp Corporate Presentation
6/296
Education
is
the
highest
growing
expense*
Source:Census2001,Economicsurvey200708,DatapublishedbyUGC
*PrivateFinalConsumption
AnnualgrowthandShare(inpercent)
Growingper
capita
income
greater
purchasingpower
Highereducation
penetration
is
increasing However,
still
dominated
by
Govt./Local
Bodies
scopeforincreasingtheprivateparticipation
Consistent
growth
Increasing
share
augurswellforEducomp
-
8/8/2019 Edu Comp Corporate Presentation
7/297
Source:InterimBudget200910,PlanningCommission
Government(stateandcentral)initiativeshighlight
renewedthrust
and
spending
in
this
sector:
Toincreasetheshareofpublicexpenditureto
6%ofGDP(asexpressedintheNational
CommonMinimumProgramme)
Levied3%educationcesstosupportspending
on
education
in
India
KeyallocationsfromtheInterim200910budgetforthe
educationsectorare:
SchoolEducation:
SarvaShikshaAbhiyan(SSA)
Rs.130bn;
National
Programme
of
Mid
day
Meals
Rs.80bn
RashtriyaMadhyamikShikshaAbhiyaan(higherprimarylevelscheme) Rs.11.43bn
Otherslikescholarships,modelschools,higherprimaryeducation~Rs.8.5bn
HigherEducation:
Outlayhasbeenincreasedby900%in11th
FiveYearPlan
UniversityGrantsCommission,TechnicalEducation,ICT~Rs.70bn
VocationalEducation:
500ITIshavebeenupgraded
NationalSkillDevelopmentCorp. Rs.10bn
GovernmenttopromotePublicPrivatePartnerships
(PPP)at
all
levels
vocational,
higher
and
secondarybyprovidingfollowingopportunities:
Provisionofdigitalcontentandtechnology
toK12schools
SettingupownpreschoolsandK12
schools
ImplementationoflargeICTprojects
Largeindustrytoprovidehugeopportunity
US$40bn
K12
Schools
Higher
Education
Tutoring
Pre
school
Vocational
Overall
Education
Marketin
India
Governmentinitiativesbooststheeducationsector
-
8/8/2019 Edu Comp Corporate Presentation
8/29
CompanyOverview
-
8/8/2019 Edu Comp Corporate Presentation
9/299
Introduction
LeadingeducationproductsandservicesproviderinIndiaforK12(kindergartentotwelfth
grade)studentswithalargefootprintinvocationalandhighereducation
Hasdevelopedlargerepositoryofmorethan16,000multimediacontent/modulesfor
Smart_ClassTM,over15,000modulesforMathGuruTM,over100,000pagesoflearningcontent
fortheRootstoWingsTMprogramand511bookscoveringpreschoolthroughtograde12
Servicing
over
11
million
students
in
~23,000
schools
across
the
globe
on
aconsolidated
basis
ClockedCAGRinrevenueofover127%andprofitaftertaxofover120%overthelast3years
55globalofficesandover8,000employees(onaconsolidatedbasis)furtheraddstoCompanys
executionstrength
The
Companys
key
business
areas
can
be
broadly
split
into
two
key
heads:
B2BInitiatives:
(contributes~86%oftotalconsolidatedrevenue)
Smart_ClassTM
providesdigitalcontent to
privateschools
Edureach(formerlyICTsolutions)
instructional
andcomputingtechnologysolutionstopublic
schools
ProfessionalDevelopment teachers training
programmes
DirectInitiatives:
(contributes~14%oftotalconsolidatedrevenue)
Offlineinitiatives
establishpreschools,K12
schools,vocational
and
higher
education
institutions,licensingofcontent
Onlineinitiatives
currentlysellslearningcontent
throughitsonlineinitiatives(including
MathguruTM
andWiziQ)
Sellseducationalaid,CDROMs
-
8/8/2019 Edu Comp Corporate Presentation
10/2910
Educomp:TheonlyEducationEcosystemCompanyInIndia
SmartClass:Teacherlededucational
contentsolutionreachingtoover1.98m
students
Edureach
(formerly
ICT):
Turnkey
solutionsforcomputeraidedlearningin
governmentschoolsreachingoutto6.5
Mmstudents
Professional
Development:
Development:Teacher
trainingintechnology
integration,pedagogy
andbestclassroom
practices
Roots
to
Wings:
Educomps
own
pre
school
brand;
currently178franchiseesoperational
EuroKids:50%controllingstakeinEurokids,thelargest
preschoolchaininIndiawithover400preschools
MillenniumSchools:
NetworkofK12schoolsinTierI
andTierIIcities;withatuitionfeeofRs3,000
3,500/month
TakshilaSchools:K12schoolsinTierIIIandTierIV
cities;withatuitionfeeofRs1,5001,700/month
VidyaPrabhat
Schools:Budgetschoolbrandtargetedat
semiurbantownswithatuitionfeeofRs700/month
K12 Content Licensing & Training Teacher Training K12 Schools
JVwithRafflesEducationCorp.:ProfessionaldevelopmentprogramsinFashionDesign,Hospitality,Managementetc
Educomp
Tele
Education
Network:
Tele
EducationNetwork:Traininginaccounting,Englishlanguageetc.throughtopfacultyviaVSATenabledlearningcenters
PurpleLeap:Trainingprogramstoimproveemployabilityofcollegegraduatestomakethemworkplaceready
LanguageEdge:
120hourprogrammesfor
firsttime
English
learners
AgreementwithIGNOU/CII:
Offersspoken
English programmes
LearningHour:
Premiumtutoring
centersbrandedLearningHour
Mathguru:
Indiasfirstonlinemaths
tutor;largest
maths
content
portal
WizIQ:
Internetlearningplatformto
connectstudentsandteachers
worldwide
Learnhub:
Sociallearningnetwork
AuthorStream:
Onlinecommunityto
sharepowerpoint
presentations
Smartclassonline.com
Learning.com:Acquiredmajoritystakein
Learning.com,theleadingwebbasedK12
CompanyinUS
AskNLearn:AcquiredAskNLearn,
Singapore'slargestK12company
Professional & Vocational EducationInternet & Supplemental Education
Global Initiatives
http://www.learning.com/index.htmhttp://learnhub.com/ -
8/8/2019 Edu Comp Corporate Presentation
11/2911
PresenceacrossentireEducationalValueChain
2 5 years 5 18 years 18 21 years 21 25 years
EducationLifeCycle
ProfessionalDevelopment
Pre-
School
Initiatives
HighScho
ol
Initiative
s
Higher
&
Vocational
Initiatives
Online
Initiatives
ICT
K1
2Initiatives
http://learnhub.com/ -
8/8/2019 Edu Comp Corporate Presentation
12/2912
Thisconsists ofSmart_ClassTM,EdureachandProfessionalDevelopment
Smart_ClassTM:
Enablesteacherstousedigitalcontentinadditiontothemoretraditionalchalkandtalk
methodsofteaching
Digitalcontentlibrarycomprisingmorethan16,000contentmoduleswithsomemodules
availableinin10languagesonsubjectssuchasscience,mathematicsandsocialsciences
Educomphascontractswith1,737schoolsasonMarch31,2009(FY09)reachingoutto ~2
millionstudents
Educompprovidesatotalsolutionincludinginteractiveboards,digitalcontent,projectors
,servers,networkingandaresourcecoordinator
Edureach(formerlyknownasICTSolutions):
Workswithpublicschoolstobridgethedigitaldivideinpublicprivatepartnershipprojects
Set
up
and
maintain
IT
Learning
Labs
on
Build
Own
Operate
Transfer
(BOOT)
basis
or
Outright
Buybasis
CurrentlyexecutingICTSolutionsprojectsinfourteenstates
TillendofFY09,Companyprovidedsolutionstoover12,000schoolsservicingover6.5million
students
Professional
Development:
PartnerswiththeMicrosoft,LearningLinksFoundation,FoundationandMichael&SusanDell
Foundationetc.
Comprisesadedicated200memberteamoftrainersthathas implementedtheCompanys
programsacross15statesinIndia
Trainedover1.4millionteacherstillendofFY09
BusinesstoBusiness Initiatives
-
8/8/2019 Edu Comp Corporate Presentation
13/2913
Currently20high schoolsunderoperationwith16,000+
students;expectedtosetup23moreschools byJuly
2010
OneofthelargestpreschooloperatorsinIndia with
over400
schools
under
the
Eurokids
brand
and
178
franchiseesunderRoottoWingsbrand
Largerepositoryofcontent:
MillenniumLearningSystems
4,630lessonplans,66books,
2,055worksheets,23,493assessments,123literature
manualsand983learningaids
RoottoWingsTM
4883lessonplans,1,490worksheets,141
booksand5,628learningaids
ComprehensiveRangeofschoolsandbrands
EducompLearningHour(asubsidiary)runsonline
tutoringservicesthroughLearningHour.comand7
tutoringcenters
in
India
DirectInitiatives:K12schoolsandTutoring
Total Visibility of 43 Schools
ChennaiBangalore
Musoorie
Mohali
Pune
Ludhiana
Patna
Noida
Gurgaon
Panipat
Lucknow
Amritsar
Operational
Land Acquired
Under Takshila Schools
Hoshiarpur
Ahmednagar
Gaya
Faridabad
Coimbatore
Gwalior
Meerut
Hanumangarh Ghaziabad
Sangli
Barnala
Note:PictureexcludesschoolsunderEuroschoolsandVidyaPrabhatbrands
MillenniumSchools:TierIandTierIIcities
Takshila
Schools:
Tier
IIand
Tier
III
cities
VidyaPrabhatSchools:TierIVandsemiurbantowns
-
8/8/2019 Edu Comp Corporate Presentation
14/2914
PSBBMillenniumSchool,ChennaiPSBBLearningLeadershipAcademy,
BangaloreChiranjeevBharti,Gurgaon
EduSchools:CreatingCoreCapacityforPrivateSchoolinginIndia
TheMillenniumSchool,PanipatTheMillenniumSchool,Noida PSBBMillenniumSchool,ChennaiOMR
-
8/8/2019 Edu Comp Corporate Presentation
15/2915
TheMillenniumSchool,Mohali
EduSchools:CreatingCoreCapacityforPrivateSchoolinginIndia
ChiranjivBharti,SushantLok,Gurgaon TheMillenniumSchool,Lucknow
TheMillenniumSchool,Amritsar PSBBMillenniumSchool,ChennaiPorurPSBBLearningLeadershipAcademy,Primary
SchoolCampus,Bangalore
-
8/8/2019 Edu Comp Corporate Presentation
16/2916
DirectInitiatives:HigherandVocationalEducation
Throughits50:50JVwithRafflesEducation
Corp.,AsiaCompanylaunchedRaffles
MillenniumInternational
Institutesin
Delhi(PusaRoad)andBangalore
EducompTeleEducationNetwork:Tele
EducationNetwork(ETEN):Providestraininginaccounting,Englishlanguageetc.throughtopfacultyvia26VSATenabled
learningcenters
APlusEducationSolutions operatingunder
PurpleLeapbrandprovidesprogramsto
improveemployabilityofcollegegraduates
to
make
them
workplace
ready
EnteredintoagreementwithCII/IGNOUto
offerspokenEnglishandpersonality
developmentprogrammes
IGNOU
Project
-
8/8/2019 Edu Comp Corporate Presentation
17/2917
DirectInitiatives:OnlineInitiatives
http://learnhub.com/ -
8/8/2019 Edu Comp Corporate Presentation
18/2918
CreditRatings
'CAREA'
ratings
for
existing
and
proposed
long
term
bank
facilities
having
tenure
ofmorethanoneyear,aggregatingtoRs.3,492millioninJune2009
'PR1'ratingstoexistingandproposedshorttermbankfacilitieshavingtenureof
uptooneyear,aggregatingtoRs.2,400millioninJune2009
NationallongtermissuerratingofA(ind)
fromFitch,Inc.forRs.200millionlong
termdebtprogrammeinMarch2008
P1
rating
for
its
short
term
debt
in
January
2006
from
CRISIL
-
8/8/2019 Edu Comp Corporate Presentation
19/2919
AwardsandRecognition
ChosenasFUTURETITAN,oneofthe10hottest
companies inIndiabyOutlookBusinessMagazine
November2006
BT500listinDec2007rankedEducomp140inthelistofthemost
valuableprivatesectorcompaniesinIndia
CompanywasfeaturedinForbesMagazine,
200best
under
Billion
forAsiaPacificRegioninSeptember,
2008issueofForbesMagazine
InJune,2009,CompanyhasbeenrankedNo.1for
educationandtrainingintheIndiasBestCompaniestowork
forstudy,conductedbytheGreatPlacetoWork
Institute,India,
inpartnershipwiththeEconomicTimes.
In2005,Educompwaschosenasthecompany
oftheyearintheICT&ITESsectorattheCNBCICICIBank
EmergingIndiaawardsfromover5,000enterprises
Authorstream.comfeaturesinDataquest
listof25hotIndian
web2.0startups
inMay2009
ASKnLearn,
emergedas2nd
fastest
growingtechnologyCo.
inSingaporeat2008
DeloittesTechnology
Fast500
awards
RootstoWingsTM
wasawardedemerging
franchisorofthe
yearawardfor2008by
FranchiseIndiaHolding
Limited
Learning.comwon
the
bestcoursemanagement
systemsaward,Software&
InformationIndustry
Associations24th
AnnualCODiE Awardsin
May2009
-
8/8/2019 Edu Comp Corporate Presentation
20/29
-
8/8/2019 Edu Comp Corporate Presentation
21/2921
EfficientPower
Qualifications Manpower
Graduate/BCA 6,842
PostGraduate/B
Ed/M.ED/M.Phil1,029
MCA 188
MBA 209
Others 607
Total
8,873
Ason31March,2009(consolidatedbasis)
-
8/8/2019 Edu Comp Corporate Presentation
22/2922
ShareholdingPatternandSharePrice
As on March 31, 2009
60.08%
4.17%
Others, 1.0%
FIs/ Banks/
MFs, 0.4%
Promoters,
55.0%
Foreign
Institutional
Investors,
39.7%
Public, 2.2%Body
Corporate,
1.7%
Equity Shares Outstanding-17,286,285
-
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
0
1000000
2000000
3000000
4000000
5000000
6000000
Apr-06 Aug-06 Jan-07 May-07 Oct-07 Feb-08 Jul-08 Dec-08 May-09
Total Volume Close Price
Share Price and Volume
# of Shares Rs.
-
8/8/2019 Edu Comp Corporate Presentation
23/29
23
Restructuring of Subsidiaries EduInfra and EduManage into one entity - EducompInfrastructure & School Management Services Ltd.
Acquired 51% stake in learning.com
Educomp forms a 50:50 Joint Venture with Raffles Education Corp. for Professional Educationin India
Acquired 76% stake in A-Plus Education Solutions Pvt Ltd
Acquired 50% stake in Eurokids International
Investment in EduInfra and EduManage to set up private schools
Acquired Ask n Learn, Three Bricks E-Services, Savvica Inc (70.5%) & AuthorGen Tech (51%)
Raised $80mn via FCCBs
Launched first pre-school in Delhi under the brand Roots to Wings
Raised $25mn via FCCBs
Launch of Mathguru.com
Successful Public Issue
MAY 2008
MakingofEducomp
2006
Incorporation
Started Indias first K12 content development center
Conversion to Public Ltd. Company Entry into Trading operations
2000
2002 Established US subsidiary- Edumatics Corporation
Launched Learning Mate Nhance- Learning Content Management Platform
2003 Launched Smart Class Content solution
ISO 9001:2001 certification for ICT solutions
Signed US pilot with Santa Barbara School District
Entered Asia Pacific market with pilots in Singapore
Set up R&D division
2004
2005 Launched Online tutoring service
CNBC Emerging India Award
SM1- highest credit rating from CRISIL
2007
1994-5
2008
2009
Entered into vocational business
Launched smartclassonline.com
Raffles Millennium International Institutes in Delhi and Bangalore were launched
-
8/8/2019 Edu Comp Corporate Presentation
24/29
24
Financials
S B l Sh
-
8/8/2019 Edu Comp Corporate Presentation
25/29
25
-
0.200.40
0.60
0.80
1.00
1.20
1.40
FY06 FY07 FY08
-
10
20
30
40
Debt Equity ratio Interest Coverage
5.1
7.3 7.6
-
2.00
4.00
6.00
8.00
FY06 FY07 FY08
Current Ratio
374.8949.4
2890.0
748.4
1519.2
4029.2
0
1000
2000
3000
4000
5000
FY06 FY07 FY08
Gross Block Net current assets
Healthyassetgrowth Strongliquidityposition
Leveragingbalance
sheet
for
optimum
ROE
All figures in Rs. mn except per share figures
Currentratio=CurrentAssets/CurrentLiabilities
Debt Equity ratio = Loan Funds / Shareholders Fund; Interest Coverage = (PBT +Finance Charges) / Finance Charges
Gross Block cagr 178%Net current assets cagr 132%
ROE=Profitaftertax,minorityinterest&preacquisitionprofits /Shareholders
Fund
StrongROE
as
aresult
of
capital
structuring
ROE
24%16%
25%
0%
10%
20%
30%
FY06 FY07 FY08
ROE
StrongBalanceSheet
b i G h
-
8/8/2019 Edu Comp Corporate Presentation
26/29
26
11.2
18.0
41.7
11.2
15.9
35.4
0
10
20
30
40
50
FY06 FY07 FY08
Basic EPS Diluted EPS
18%
15%
11%10%9%
12%
0%
5%
10%
15%
20%
FY06 FY07 FY08
Admin Exp./Sales Depriciation/Sales
0
200
400
600
800
FY06 FY07 FY0820%
22%
24%
26%
28%
30%
Profit after tax and before prior period items Net Margin
555.2
1100.8
2860.8
219.7454.4
1064.0
0
500
1000
1500
2000
2500
3000
3500
FY06 FY07 FY08
Sales & Service income Profit before tax
StablemarginswithhealthyprofitgrowthOver100%growthintopandbottomline
Improvingoperation
efficiency Strong
growth
in
EPS
~Good
valuations
Income cagr 127%PBT cagr 120%
RobustEarningsGrowth
AllfiguresinRs.mnexceptpersharefigures
G h i 2009 i d
-
8/8/2019 Edu Comp Corporate Presentation
27/29
27
IncreaseacrosseachsegmentoftheEnterpriseBusiness
Robustrevenue
and
profit
growth
AllfiguresinRs.mnexceptpersharefiguresandoperationalnumbersinthefirstchart
41.735.4
76.8 75.0
0102030
405060708090
Basic EPS Diluted EPS
FY08 FY09
3141.2
1134.2
286.6 405.2256.3
933.31277.2
153.6
-
1,000.0
2,000.0
3,000.0
4,000.0
Smart Class ICT Professional
Development
Retail &
Consulting
FY08 (Audited) FY09 (Unaudited)
90 321 933
1737
600
2808
6004
12012
440 655 961
1412
-2,000
4,000
6,000
8,000
10,000
12,000
14,000
FY06 FY07 FY08 FY09
Smart Class Schools ICT Schools No. of Teachers Trained (In'000)
6478.7
3020.3
1327.4
705.6
1273.4
3038.4
-2,000
4,000
6,000
8,000
Total Income EBITDA PAT
FY08 (Audited) FY09 (Unaudited)
Growthin2009continued
-
8/8/2019 Edu Comp Corporate Presentation
28/29
28
GrowthStrategy
I t t hi hli ht
-
8/8/2019 Edu Comp Corporate Presentation
29/29
ContinuestogroworganicallyandthroughJV/acquisition/ContinuestogroworganicallyandthroughJV/acquisition/
alliancesalliances
InvestmentInvestment
HighlightsHighlights
OneofthelargestplayersinIndianeducationsectorwithOneofthelargestplayersinIndianeducationsectorwith
clientbaseofover23,000schoolsand11millionstudentsclientbaseofover23,000schoolsand11millionstudents
Presentinarecessionproofindustry,targetingmandatoryPresentinarecessionproofindustry,targetingmandatory
educationspendratherthandiscretionaryspendeducationspendratherthandiscretionaryspend
RevenueandPATCAGRofover120%inlastthreeyearswithRevenueandPATCAGRofover120%inlastthreeyearswith
lowmarketpenetrationinmajorproductlineslowmarketpenetrationinmajorproductlines
Best positionedbecauseofitslargerepositoryofproducts,Best positionedbecauseofitslargerepositoryofproducts,
annuitydrivenmodelandincreasingglobalpresenceannuitydrivenmodelandincreasingglobalpresence
Targetingentireeducationvaluechain:preschool,KTargetingentireeducationvaluechain:preschool,K12,12,
highereducationandvocational educationhighereducationandvocational education
ExperiencedManagementTeamExperiencedManagementTeam
BestintheindustryBestintheindustry
MacrofactorsandgovernmentsupporttoencourageprivateMacrofactorsandgovernmentsupporttoencourageprivate
participation
and
growth
in
the
sectorparticipationandgrowthinthesector
LeadershippositioninallmarketsegmentsinIndiawithhighLeadershippositioninallmarketsegmentsinIndiawithhigh
marketshares,
best
positioned
to
capture
future
growth
market
shares,
best
positioned
to
capture
future
growth
Investmenthighlights
top related