August 2013 Investor Presentation
Disclaimer This presentation has been prepared by MT Educare Limited (the “Company”) solely for use the purpose of Investor meetings. This presentation (including any information contained herein and any information, whether or not in writing, supplied in connection herewith) is strictly confidential. The material that follows is a presentation of general background information about the Company’s activities current at the date of the presentation. It is information given in summary form and does not purport to be complete, is subject to change without notice and its accuracy is not guaranteed. The information has not been independently verified by any third party. Accordingly, no representation or warranty, express or implied, is given by or on behalf of the Company and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents to the accuracy or completeness of the information or opinions expressed herein. To the maximum extent permitted by law, the Company and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents disclaim any liability for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it. This presentation contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its officers with respect to the consolidated results of operations and financial condition, and future events and plans of the Company. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” or words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ from those in the forward-looking statements as a result of various factors and assumptions. The Company does not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation is for information purposes only. It is not intended to be relied upon as advice to potential investors, and shall not constitute an offer or invitation, or solicitation of an offer, to purchase any securities. The possession, circulation or distribution of this presentation may be restricted in your jurisdiction. You are required to inform yourself about and observe any restrictions relating to any such restrictions or an investment by you in the securities of the Company or its subsidiaries. This presentation may not be reproduced or redistributed to any other person and you agree to keep the contents herein confidential. MT Educare Limited came out with its Initial Public Offering (“IPO”) in March 2012 and was listed on the BSE and NSE on April 12, 2012. The Prospectus is available on the website of SEBI at www.sebi.gov.in. Investors should note that investment in equity shares involves a high degree of risk and for details in relation to risk factors, please see the section titled “Risk Factors” on page 11 of the Prospectus. Any decision to purchase any securities should be made solely on the basis of information contained in the Prospectus issued in respect of the Offering and registered with the RoC or the final offering memorandum relating to the securities after seeking appropriate professional advice, and no reliance should be placed on any information other than that contained in the Prospectus or the final offering memorandum. 2
Index Executive Summary Key Company Milestones Industry in Growth Phase Capturing the Entire Value Chain Location Count Key Differentiators Growth Strategy Experienced Management Team Financial Overview and Operating Leverage Shareholding Pattern 3
Executive Summary Mahesh Tutorials – now a 25 year old brand; Coaching services being provided by Mr. Mahesh Shetty since 1988 under the brand name ‘MAHESH TUTORIALS’ Operates under three business verticals – School, Science and Commerce; Diversified product offerings catering to students right from Std. VIII to students appearing for Engineering and Medical Entrance Exams (including IIT Entrance), exams for CA course and MBA aspirants Geographical presence in 7 states/union territories including Maharashtra, Karnataka, Tamil Nadu, Gujarat, Punjab, Haryana and Chandigarh Network consists of 134 coaching locations with 222 Centers (Points of Sale) 70,828 students serviced in FY13; Employee and faculty strength of 2,200+ with 1,100+ faculty members, of which 300+ are post graduates Focus on result oriented quality coaching with technology enabled classrooms and digitized content and Emphasis on teacher training through intensive workshops Experienced management team consisting of senior professionals having strong background in academics and rich experience Asset light business model; zero debt with negative working capital Shareholding pattern: ~56% held by Promoter/Directors/KMPs and ~21% held by DIIs/FIIs 5
Milestones PE Investment of USD 8mn by Helix Investments Company Listing in April 2012; for expansion in Introduction of Introduction of Acquisition of 51% stake Mumbai Science Coaching Technology Aided in Lakshya Forum for for XI and XII Teaching (TAT) Competitions Pvt. Ltd. in Nov. 2012 1988 2001 2003 2007 2008 2009 2011 2012 2013 First Branch of Centres opened in Mahesh Tutorials Karnataka, Inauguration of Setup Gujarat and Tamil Mahesh PU Nadu; Acquisition College at of Scholars’ Mangalore Learning Centres Introduction of Acquisition of 51% stake in Chitale’s Commerce Coaching for XI Personalised and XII Learning Pvt. Ltd. 7
Large Addressable Market The Indian coaching industry is expected to grow from Rs. 40,187 crore in 2010-11 to Rs. 75,629 crore in 2014-15. INDIAN EDUCATION SYSTEM Market Size - Classroom based coaching industry 17% CAGR Rs. Cr Formal Vocational Informal Education Education Education 13% CAGR 75,629 Higher Play Multimedia in Coaching K-12 Education School Pvt Schools Classes 40,187 24,418 ICT in public Open & distance schools learning 2006-07E 2010-11P 2014-15P Source: Crisil Source: Crisil A large market opportunity Strong structural factors aiding the growth of this sector No. of Students appearing in various examinations CA Final 80,077 CA IPCC 100,151 CA PCC 120,195 CA CPT 574,259 All India Pre Med/Pre-Dental Test … 135,617 Rising disposable Increasing Infra bottlenecks Com Ent Exams, Mah. 282,096 income household spend for formal on education education IIT JEE 2011 468,240 AIEEE 1,065,100 CBSE XIIth 769,929 CBSE Xth 1,061,566 MSB Higher Secondary 1,325,936 Increasing private Growth in addressable 0 400,000 800,000 1,200,000 sector participation market Source: Websites of JEE, IIT Delhi, AIEEE, MHRD, Annual report of ICAI, Maharashtra Directorate Of Medical Education and Research 9
Business Overview – Capturing the entire Value Chain CA Final Basic Graduation (B.Com, BMS) & CA IPCC, MBA Entrance (CAT & CMAT) Entrance Exams – CA CPT, CS Foundation JEE Mains, JEE Advanced (IIT) and NEET Std. XI and XII (Science and Commerce) Std. V to VIII, IX & X (All Subjects – SSC, ICSE & CBSE) 11
Business Overview A coaching services provider for students… In the Secondary and Higher Secondary School Pursuing graduate degrees Preparing for various competitive examinations Undertaking CA examinations. School Section Science Section Commerce Section Others IX th and X th standard XI th and XII th standard XI th and XII th standard Coaching for MBA Entrance i.e. CAT, CMAT Maharashtra, Gujarat, Test prep for the CA-IPCC , CA Final, CA-CPT Coaching services in Dubai Karnataka State Board engineering and medical CS-Entrance entrance examinations (JEE CBSE Government Programmes Bachelor degree in Mains and JEE Advanced, ICSE Sale of Content under Commerce (UVA) NEET) ‘Robomate ‘ brand INK (V to VIII) 12
Geographical Presence Growing No. of Locations v 3 122 1 31 2007 2013 5 No. of Locations over the years 16 FY/Quarter No. of Locations 97 June 2013 134* FY 13 122 FY 12 114 8 FY 11 103 * Includes 4 Lakshya locations added w.e.f. April 1, 2013. 4 14
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