#1FOUR SEASONS EDUCATION 圖四季教育 Four Seasons Education conX liv 26 9 5 7 9 Loo WE Investor Presentation May 2021#2Disclaimer This presentation has been prepared by Four Seasons Education (Cayman) Inc. (the "Company") solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives or the underwriters as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company nor any of its affiliates, advisers, or representatives or the underwriters accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements. These statements reflect the Company's intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as "expects," "plans," "will," "estimates," "projects," "intends," "anticipates," "believes," "confident" or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company's operations and other factors, many of which are beyond the Company's control, and accordingly, actual results may differ materially from these forward-looking statements. Neither the Company nor any of its affiliates, advisers or representatives or the underwriters have any obligation and they do not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission (the "SEC") or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securities Act") and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a "prospectus" within the meaning of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company and is qualified in its entirety by reference to the detailed information in the prospectus relating to the proposed offering. The Company has filed a registration statement on Form F-1 with the SEC relating to its securities to be offered in the United States, but the registration statement has not yet become effective. Any public offering of the Company's securities to be made in the United States will be made solely on the basis of the information contained in the statutory prospectus included in such registration statement. The prospectus contains detailed information about the Company, its subsidiaries, management, the consolidated financial statements and risks and uncertainties associated with its business and industry. Any decision to purchase the Company's securities in the proposed offering should be made solely on the basis of the information contained in the prospectus relating to the proposed offering. In evaluating our business, we use certain non-GAAP measures as supplemental measures to review and assess our operating performance. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performances, investors should not consider them in isolation, or as a substitute for net income attributable to the Company or other consolidated statement of operations data prepared in accordance with U.S. GAAP. SEASONS EDUCATION 2#33 9 1 12 $7 за Loo 1 5 92 5+ 6 L 3 5 G 1 Section 1 Company Overview 5 3 ヤ 2 8 8 2 3 $2 8908 9 3 4 4 3 8#4Who We Are SEASONS DUCATI Notes Network Learning Centers 10 Feb 2015 50 February 2021 1 Cities Feb 2015 11 February 2021 Students Enrollment (1) 30,343 4QFY2021 SEASONS FOUR EDUCATION Effective Education Leading after-school math education service provider 100% IMO (2) Shanghai gold medalists during 2014-2018 were Four Seasons students (3) 1. Student enrollment is defined as the cumulative number of courses enrolled in and paid for by our students during the respective period, including multiple courses enrolled in and paid for by the same student; for example, if a student enrolls in two courses, he/she is counted as two students 2. International Mathematical Olympiad 3. Considering only the China team members#5What We Do • • Kindergarten Launched in 2015 Elementary School Launched in 2010 Middle School Launched in 2017 Focusing on logical thinking training and picture talking Developing basic logic and cognitive skills Acquisition of a renowned early childhood education tutoring provider in Shanghai Offering synchronous tutoring programs and a variety of interest-oriented classes as an effective supplement to standard school study Nurturing a passion for math and learning at a critical stage in development Providing various Chinese and English tutoring programs Delivering courses of all middle school compulsory subjects, including math, physics, chemistry, etc. Addressing students' needs for synchronous tutoring programs which help review and consolidate knowledge therefore achieve better academic performance SEASONS EDUCATION 5 Сс#6Growth Potential for K-12 After-School Education Services Market Robust Growth Forecast from Shanghai and Non-Tier 1 Cities (1) Household Spending on After-school Educational Services in 2016 RMB K Competition for High Quality Education Resources 7.5 6.7 Non-Tier 1 Cities China 17.7 150 Shanghai 125 100 75 50 Penetration Rate of K-12 After-school Educational Services in 2016(2) % 25 SEASONS Increasing Disposable Income 25.2% 26.5% 65.2% The Market Size of China's K-12 After-School Training Businesses (in RMB 10 billion) The market size is expected to shrink by 50 percent in 2020 due to the COVID-19 outbreak 2017 2018 2019 2020E 2021F 2025F Tutoring Enrichment education English language training Non-Tier 1 Cities China Shanghai Source: (i) a report prepared at our request by Frost & Sullivan, an independent market research firm, in June 2017; (ii) 'A new era of education China education development report 2018', Deloitte Report; (iii) China K-12 After School Training To Business Market Report, China's National Institute of Education Sciences, the Tomorrow Advancing Life Group and Oliver Wyman, in July 2020 Notes: 1. Tier 1 cities refer to four most developed cities in China which features with strong economic development and high per capita disposable income, are recognized as densely populated as well as culturally and economically influential, namely Beijing, Shanghai, Guangzhou and Shenzhen, based on IPO prospectus 2. Penetration rate refers to the percentage of k-12 population who enrolled in after-school education services EDUCATION 6#73 9 1 $7 за Loo 1 5+ 6 92 5 12 L 3 5 1 Section 2 Investment Highlights G 3 5 ヤ 2 8 8 2 3 $2 8908 9 3 4 4 3 8#8Investment Highlights SEASONS (40) SEASONS EDUCATION EDUCA 1 Highly Effective Education 2 Strong Brand and Market Leadership 四季教育 3 Proprietary Personalized Curriculum FOUR SEASONS EDUCATION 4 Strong Faculty Supported by Stringent Recruiting and Training Programs 5 Standardized Operations and Highly Scalable Business Model 8#91 Highly Effective Education Exceptional Admission Rates Compared to Shanghai Average In Shanghai in 2016 Four Seasons (1)(2) Shanghai average (3) Four Seasons (1) Shanghai average (3) 24% <1% 60% 6% SEASONS EDUCATIO Top 5 Middle Schools Notes 1. Based on Company survey conducted in 2016 of students who have taken at least one Four Seasons course 2. 24% of Four Seasons' program graduates in 2016 were admitted into the top five middle schools in Shanghai 3. According to Frost & Sullivan Report Top 30 Middle Schools 9#101 Our Programs are Widely Recognized for Their Effectiveness Recognized by Leading K-12 Schools Our Students Excel in Various Competitions Four Seasons Proprietary curriculum delivered to K-12 schools 2019年第二届“交能杯”全国桥牌公开赛 201967520-238 AARO ANAR Shanghai Foreign Language Primary Shanghai World Foreign Language Sudoku School Affiliated to SISU1 Middle School SEASONS QUCATION Shanghai Pinghe Bilingual School Only after-school educational service provider teaching proprietary math courses in K-12 schools Note in Shanghai 1. Shanghai International Studies University Bridge Award-winning in ✓ 2020 China Sudoku Conference ✓ 2019 KenKen International Championship First Yan'an Bridge Open ✓ 2019 "Wingsky Cup" National Bridge Open U18 Winner ✓ Runner-up in 2019 Jiaoneng National Open 10#112 Strong Brand and Market Leadership °= The go-to brand for math education #1 after-school math education service provider for elementary school students in Shanghai (1) SEASONS EDUCATION Notes Teaching proprietary math courses in K-12 schools. Sales & marketing expenses only accounted for 12.1% of revenue (2) EDAC 第七届中国企业家发展年会 第七届中国企业家发展年会 证书 CERTIFICATE 评审单位 www HTTP: www.CECECH.COM 1. Ranking by gross billings and number of students in 2016 and the six months ended June 30, 2017, according to Frost & Sullivan Report 2. Marketing expenses as % of revenue in 4QFY21 2019、优秀品牌奖 70年70人 EDAC 11#123 Proprietary Personalized Curriculum Four Seasons Curriculum Problem- Innovative Dynamic in-house curriculum design process Personalized education empowered by strong curriculum design team Education Research solving Oriented Effective Creative Divergent Thinking Challenging VS Traditional Curriculum SEASONS EDUCATION Memorization Repetition Curriculum Development Teacher Feedback Feedback/ Analysis Experience from Math Olympiads Massive Problem Set Student Evaluation System Teaching Database Tests / Assessment Teachers experienced in course design Led by consultant team of expert educators Headed by Mr. Peiqing Tian, Chairman 12#134 Strong Faculty Supported by Stringent Recruiting and Training Programs Channels for Recruiting Teachers • • Graduates from normal universities and other renowned tertiary education institutions Principals and experienced teachers from public schools Pre-job Training Ongoing Training 1-2 Ongoing training sessions per week On-the-job Satisfaction Sense of satisfaction Dedicated and capable educators Recruitment ■ Written exams and interviews ■ Mock lectures ■ Presentations to panels ■ 37% candidates passing evaluation ■ Pre-class discussions " Sitting in on experienced teachers' classes and substituting for absent teachers ■ Feedback from experienced teachers Feedback from students Training to provide better service to both parents and students 9-tier teacher promotion system Culture of self-improvement Encouraged to try innovative methods SEASONS UCATION Systematic recruitment and training programs facilitate scalable growth 13#145 Standardized Operations and Highly Scalable Business Model Key factors supporting rapid and efficient expansion SEASONS Experience from over 10 years of successful operations Centralized administrative and management system FOUR SEASONS EDUCAT 南四季教育 Four Seasons Education Centralized training program for new teachers Efficient process for designing and updating course programs Learning Centers 10 21 29 38 52 53 50 February 2015 February 2016 February 2017 February 2018 February 2019 February 2020 February 2021 EDUCATION 14#153 9 1 12 $7 за Loo 1 5 92 5+ 6 L 3 5 G 1 Section 3 Growth Strategies 5 3 ヤ 2 8 8 2 3 $2 8908 9 3 4 4 3 8#16Addressing Educational Needs Across Broader Age Groups SEASONS EDUCATION Kindergarten if ■ Launched in 2015 Focusing on training in basic logic, reasoning and cognitive abilities Building a solid foundation for formal math education Elementary School ++ Middle School ** ■ Launched in 2017 ■ Natural extension of business, providing students with a seamless transition into the next stage of education Significant synergies across offerings driving lifetime value of students 78% yoy growth of our middle school classes enrollment in this quarter 16#17Providing Broader and More Diversified Courses SEASONS EDUCATION English Chinese Math as Core Smart Math STEM ➤SHANE English (Foreign teachers oral English) Phonetic symbols. New Concept English (Chinese teachers) Covering elementary School Students and Middle School Students Writing, Reading and Comprehensive exercises ✓ Leading position in Math education ✓ Math related cartoons and puzzles for younger children ✓ "One Lesson One Exercise" Extending to strategic reasoning and logic lessons & games: ✓ Sudoku ✓ Rubik's Cube ✓ Bridge ✓ Painting ✓ STEM ✓ Study tour and Hands-on Inquiry Based Learning (HIBL) 17 17#18SEASONS EDUCAT Math Lab Project Math Lab (Jointly developed with ECNU(¹)) Note 1. East China Normal University Value: • Through math experiments, students will be able to grow their learning interest, deepen their understanding of math and strengthen the problem-solving skills in various hands-on activities. • Core: Experiments Intelligence Goals: • To cultivate students' core mathematical literacy To enhance teachers' math-teaching skills and math culture connotation To develop personalized learning through information technology Dimensions: • • Math culture introduction • Math activities experience • Math learning exploration Math resources cloud storage Courses • • • Math culture courses Math thinking courses Math activities courses Logic-based games comprehensive math courses CHINA NORMAL THE RA UNIV SEASONS FOUR EDUCATION 18#19Math Lab Project SEASONS EDUCATION 19 19#20Expansion of Our Learning Center Network Number of learning centers (1) Increasing Presence outside of Shanghai Focusing on Yangtze River Delta Key cities: Shenzhen and Chongqing Tier 2 and tier 3 cities: Curriculum export 44 41 38 Our network of learning centers (1) 10 19 26 31 2015/2/28 2016/2/29 12 12 7 8 2 2017/2/28 2018/2/28 ■Shanghai Outside of Shanghai 2019/2/28 2020/2/29 2021/2/28 SEASONS EDUCAT UCATION Notes: 1. As of February, 2021 -Anhui: 1 Learning Center Jiangsu: 4 Learning Centers Zhejiang: 1 Learning Center Shanghai: 38 Learning Centers Shenzhen: 1 Learning Center Jiangxi: 2 Learning Centers -Fuzhou: 1 Learning Center © Chongqing: 2 Learning Centers 20 20#213 9 1 12 $7 за Loo 1 5 92 5+ 6 L 3 5 G 1 5 3 Section 4 Financial Highlights ヤ 2 8 8 2 3 $2 8908 9 3 4 4 3 8#22Financials Overview Revenue and profitability are typically higher in FQ1 - FQ3 as fewer classes are offered in FQ4 because of Chinese New Year. Quarterly Revenue RMB MM 86 129 104 84 71 68 70 59 10 FQ1'20 FQ2'20 FQ3'20 FQ4'20 FQ1'21 FQ2'21 FQ3'21 FQ4'21 Quarterly Gross Margin % 46% SEASONS 55% 51% 42% 38% 35% 37% 40% FQ1'20 FQ2'20 FQ3'20 FQ4'20 FQ1'21 FQ2'21 FQ3'21 FQ4'21 EDUCATION 22 22#233 9 1 $7 за Loo 1 5+ 5 92 6 Appendix 12 L 3 G 5 ヤ 2 8 8 2 3 $2 8. 9 1 3 5 3 4 4 3 8#24FY2019 FY2020 FY2021 FQ4'20 FQ4'21 Consolidated Income Statement Condensed Income Statement (1) RMB '000s Revenue: Total revenue Total cost of revenue Gross Profit 335,643 389,049 280,282 71,065 70,199 (171,822) (200,933) (168,832) (46,277) (41,910) 163,821 188,116 111,450 24,788 28,289 % Gross margin 48.8% 48.4% 39.8% 34.9% 40.3% General and administrative expenses (128,349) (139,370) (116,972) (39,824) (28,291) Sales and marketing expenses (33,783) (34,367) (30,953) (7,710) (8,500) Impairment loss on intangible assets and goodwill (557) (145,416) (145,416) Operating income 1,132 (131,037) (36,475) (168,162) (8,502) % Operating margin 0.3% (33.7%) (13.0%) (236.6%) (12.1%) Adjusted operating income(2) 33,936 45,238 (8,962) (15,136) (1,908) % Adjusted operating margin 10.1% 11.6% (3.2%) (21.3%) (2.7%) Net income % Net margin Adjusted net income (3) % Adjusted net margin (1,470) (109,569) (27,886) (145,371) (11,501) (0.4%) (28.2%) (9.9%) (204.6%) (16.4%) 36,117 47,871 (2,521) (4,706) (4,200) 10.8% 12.3% (0.9%) (6.6%) (6.0%) SEASONS EDUCATION 1. Fiscal year ended February 28/29 2. Excluding share-based compensation expenses and impairment loss on intangible assets and goodwill. 3. Excluding share-based compensation expenses, fair value change of investments and impairment loss on intangible assets and goodwill (net of tax effect). Notes 24 24#25Consolidated Balance Sheet Condensed Balance Sheet (1) RMB '000s FY2019 FY2020 FY2021 FQ4'20 FQ4'21 Cash and cash equivalents 439,580 404,652 378,358 404,652 378,358 Property and equipment, net 27,000 19,749 15,804 19,749 15,804 Total assets 932,054 1,037,616 967,193 1,037,616 967,193 Deferred revenue 87,870 71,946 75,242 71,946 75,242 Total liabilities 175,123 362,664 320,805 362,664 320,805 Total equity 756,931 674,952 646,388 674,952 646,388 Total liabilities mezzanine equity and equity 932,054 1,037,616 967,193 1,037,616 967,193 SEASONS DUCATION Note 1. Fiscal year ended February 28/29 25 25