Investor Presentation Index Executive Summary Key Company - PowerPoint PPT Presentation

May 2014 Investor Presentation

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 2

Executive Summary  Mahesh Tutorials – 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 136 coaching locations with 220 Centers (Points of Sale)  80,829 students serviced in FY14; Total headcount strength of 2,100+ with 1,000+ faculty members  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 administration  Asset light business model; zero debt with negative working capital  Shareholding pattern: ~56% held by Promoter/Directors/KMPs and ~21% held by DIIs/FIIs 4

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% Commerce stake in Chitale’s Coaching for XI Personalised and XII Learning Pvt. Ltd. 6

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 8

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) 10

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) 11

Geographical Presence No. of Locations over the years 3 v FY No. of Locations 1 FY 14 136 FY 13 122 FY 12 114 4 FY 11 103 16 97 13 2 13

Key Differentiators… Corporatized Well Recognized Large Pool of Result Oriented Structure and Organized and Brand & Quality Faculty Quality Methods Experienced Diversified Player Experience Members of Coaching Management Team  2,055 scored ≥ 90%  97 locations in  1,000+ faculty  Increased visibility  Scientific coaching in Xth Std. Exam Mumbai members amongst methods and  Multiple faculty governments and system A.Y 2013 March 31, 2014 international teaching each  1 st All India Rank in  Currently operates educational subject CA Final, total 6 CA 37 locations in Rest  Focus on conceptual institutions  300+ faculty Post Final Rankers and 10 of Maharashtra, knowledge and IPCC Rankers T.N., Gujarat, Graduates (CA, holistic development Karnataka , Punjab, MBA, B.Ed)  32 students > 90% in  Assisted in raising Haryana and  Continuous training Std. XII (Science) capital from private Chandigarh  Technology to equity investors Mar 2013 supplement coaching via TAT and Robomate No one man show or ‘Star Teacher’ concept 15

…Teaching Methodology Value Added Services  Personalized attention by way of regular parent teacher meetings, day-to-day assistance, doubt solving during exam time  Career Counselling:  Teaching with the help of digital content developed in-house by expert faculties Through seminars and after extensive brain storming exhibitions  Symphony:  Increasing focus on assessments, learning management systems A mix of music, yoga  Exhaustive test series with mock board exams and diet controlling  Superior study material developed along with Chetana Publications for School techniques to reduce stress, enhance section (MKeys) memory and improve  State of the art infrastructure facilities at the centers communication skills.  Hum Se Poocho: Implementing Flipped Classroom A 24 hour helpline during exam time Advantages Student studies at home & comes  Counselling Sessions: with basic preparation  Active learning in classroom vs. To facilitate passive earlier communication  Increased ability of learners to Teacher teaches in the classroom between the teachers, control pace students and parents on  Use of 21 st century technology the students’ Discussion, Learning &Evaluation  Increased focus on higher order happens in the classroom requirements. skills and critical thinking  Increased social interaction 16

Three-pronged Growth Strategy Focus on National Level Exams Pan-India strategy with focus on nationwide common entrance and professional examinations such as CA, IIT JEE Advanced, JEE Mains, CAT, CMAT etc. Geographical & Vertical Risk Asset light college tie-ups Management Expansion outside Mumbai reducing Entry and expansion into college geographical concentration tie-ups with test prep in college Future growth expected from campuses Karnataka, Rest of Maharashtra and Asset light with lower infrastructure North India spend than regular centres Science & Commerce to increasingly Helps attract large volumes contribute to total revenues 18

Growth Strategy – School Division  Overall market trend moving towards IX-X Combo, IX-X Combo admissions up from ~2,000 in FY 09 to ~7,500+ as of date  Focus on developing the CBSE & ICSE business verticals as a pillar of strength to enable rapid scalability of operations in the school segment across all states in India  Our unique product “Robomate” with entire content in digital form developed in-house by our faculties from the school section already launched this year and has received a good response from our students. This has encouraged us to now make Robomate available even for students who have not enrolled with us. Robomate sale expected to have a snowball effect on increasing footfalls at our centres  Expansion in Maharashtra outside Mumbai with expanding in current cities like Pune and Kolhapur  INK Model already launched for Std. V-VIII for Stateboard, ICSE and CBSE in 13-14; Expecting this market to grow over the next few years About INK Model: • Two-way communication using a web camera enabling face-to-face interaction with the faculty • Allows doubt solving and basic testing and evaluation over the internet • Limited classroom based coaching and counselling 19