Investor Presentation Index Executive Summary Key Company - PowerPoint PPT Presentation

August 2015 Investor Presentation

Index  Executive Summary  Key Company Milestones  Industry in Growth Phase  Key Differentiators  Capturing the Entire Value Chain  Location Count  Teaching Methodology  Growth Strategy  Experienced Management Team  Financial Overview and Operating Leverage  Shareholding Pattern 2

Executive Summary  Mahesh Tutorials – a 27 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  Network consists of 136 coaching locations in 7 states/union territories including Maharashtra, Karnataka, Tamil Nadu, Gujarat, Punjab, Haryana and Chandigarh  53,383 students serviced in Q1 FY16; Total headcount strength of 2,500+ with 1,200+ 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 with negative working capital  Shareholding pattern (as on June 2015 ): ~52.4% held by Promoter/Directors/KMPs and ~32% held by DIIs/FIIs/Bodies Corporate 4

Milestones PE Investment of USD 8mn by Helix Learning Investments Company Inauguration of Mahesh Management for expansion in Introduction of Acquisition of 51% System (LMS) PU College at Mumbai stake in Chitale’s Science Mangalore Launch Coaching for XI Personalised and XII Learning Pvt. Ltd. 2012 2003 2011 2013 2015 1988 2001 2009 2014 2007 First Introduction of Branch of Technology Aided Tie-up with Sri MT Setup Teaching (TAT) Gayatri Educational Society in Telangana and A.P. Introduction of Listing in April 2012; Commerce Acquisition of 51% Coaching for XI stake in Lakshya Forum and XII for Competitions Pvt. Ltd. in Nov. 2012 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

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  2,230 scored ≥ 90%   1,200+ faculty  Increased visibility  Scientific coaching 98 locations in in Xth Std. SSC Exam; Mumbai members amongst methods and 1 st in Mumbai in SSC  Multiple faculty governments and system June 30 , 2015 international teaching each  7th AIR in IIT JEE  Currently operates educational subject Advanced ; 4th AIR in 38 locations in Rest  Focus on conceptual institutions  300+ faculty Post AIPMT of Maharashtra, knowledge and T.N., Gujarat, Graduates (CA,  Listed status makes holistic development  55 scored ≥ 90% in Karnataka , Punjab, MBA, B.Ed) it easier for fund HSC Exam in Science; Haryana and  Continuous training raising 123 scored ≥ 90% in Chandigarh  Technology to HSC Exam in June 30, 2015 supplement coaching Commerce via LMS, TAT and Robomate No one man show or ‘Star Teacher’ concept 10

Brilliant results this season… 11

Business Overview – Capturing the entire Value Chain CA Final 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) IX & X (All Subjects – SSC, ICSE & CBSE) 13

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 + UVA Section Others  IX th and X th standard  XI th and XII th standard  XI th and XII th standard  Sale of Digital Content under ‘Robomate ‘ brand  Maharashtra, Gujarat,  Test prep for the  CA-IPCC , CA Final, CA-CPT Karnataka State Board engineering and medical  Skill Development entrance examinations (JEE  CBSE  Coaching for MBA Entrance Mains and JEE Advanced,  ICSE i.e. CAT, CET NEET)  Government Programmes 14

Geographical Presence (as of June 30 th , 2015) Historical No. of Locations over the years 3 v FY No. of Locations 1 Q1 FY 16 136 FY 15 128 FY 14 136 3 FY 13 122 12 FY 12 114 98 FY 11 103 16 3 16

…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:  Active learning in classroom vs. with basic preparation To facilitate passive earlier communication  Increased ability of learners to Teacher teaches in the classroom between the teachers, control pace due to self learning students and parents on  Use of 21 st century technology the students’ Discussion, Learning &Evaluation through a state of the art Learning requirements. happens in the classroom Management System (LMS)  Increased focus on higher order skills and critical thinking  Increased social interaction 18

Four-pronged Growth Strategy Focus on National Level Exams Robomate  Focus on nationwide common  Technology driven growth through entrance and professional sale of digital content for higher examinations such as CA, IIT JEE scalability  Allows the company to tap newer Advanced, JEE Mains, CAT, CMAT, CBSE etc. geographies across India Geographical & Vertical Asset light college tie-ups Diversification  Concentration on future growth in  Entry and expansion with Rest of Maharashtra for School and college tie-ups offering test prep in Science section college campuses  Expansion in North India,  Asset light with lower Karnataka, Andhra Pradesh and infrastructure spend Telangana for Science and Commerce 20

Growth Strategy – School Division  Overall market trend moving towards IX-X Combo, IX-X Combo admissions up from ~2,000 in FY 09 to ~7,000+  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 for this academic season and has received a good response from our students. Flipped classroom teaching methodology with tablets to be implemented from the academic year 2015-16  Expansion in Maharashtra outside Mumbai with expanding in current cities like Pune and Kolhapur  Tie up with local coaching classes in tier-III and tier-IV towns in Rest of Maharashtra and Gujarat for sale of Robomate to their students and providing TAT and teacher training. 16 such tie ups concluded and revenue started in FY 15-16. 21