#1NAVNEET Knowledge is wealth A PREMIUM EDUCATION HOUSE Investor Presentation as on 30th June, 2021 WE eSense Ensuring Success YOU VA GRAFALCO +5 Indiannica Learning Knowledge beyond horizons K12 10:20AM#2+ Don Company Overview Industry Overview Financials 2#3About us Navneet Education Limited, founded by the Gala Family, is an educational syllabus-based supplementary content provider in Print & Digital medium and a manufacturer of Scholastic Paper stationery for domestic and international markets. New range of text books for students of CBSE and ICSE Boards are sold across India. Over the years, the company has built a strong brand in the Educational Content & Scholastic Stationery gaining a leadership position. The company has a dominant market share of about 65% in western India. OUR BRANDS State Board Curriculum E-learning CBSE Stationery K12 - eSense Navneet Rise YouVa Vikas Grafalco Top Scorer Top Class Gala Indiannica Touch Study Buddy The Orchids International School 3#4Key Facts 35 Mn+ Students using Navneet products 5 Mediums/Languages for State Board Publications 5,500+ No. of Titles 350+ Hours of Digital Library 25,000+ No. of State Board Schools visited annually 4,000+ Digital Classrooms 2 Presence in States for Supplementary Books 8,500+ CBSE / ICSE Schools visited annually 48,000+ Presence in Retail Outlets for Stationery in India 3,000+ No. of Employees 1 Lakh+ Tons Paper consumed 300+ No. of Authors 600+ SKU's in Stationery 3 Printing / Manufacturing Locations 25+ Presence in Countries for Paper Stationery 4#51959 6 Decades of Navneet 1970 1990 1975 1993 2017 2011 2014 2016 2008 1994 2018 2019 2020 Workbook Concept Introduce HISTORY ASD WORKBOOK STANDARD X (SSC) Sweet Children Books Introduce Vikno Stories for Children First Educational Publisher to be listed on BSE and NSE BSE & Ventured into School Managemen ORCHIDS The International School New Stationery brand YOUVA launched, Acquired Indiannica Learning Pvt. Ltd. (earlier Encyclopaedia Britannica (India) Pvt. 1+1 YOUVA Indiannica Learning In Digital Assessment Platform for schools /children STUDY BUDDY™ 360 Digital Exam Solution Launch of new Edtech Products NAVNEET DigiBook NAVNEET TOC First Digest/ Guide Published for Std. X Published 21 Most Likely Question Sets अपेक्षित प्रश्नसंच 2015 Scholastic Stationery STATIONERY NAVNEET HISTORY AND BOUTHICAL SCIENCE DIGEST STANDARD X (sc राज्यशास्त्र Entered NSE B2B Digital Learning Space eSense TOP Entered B2C Digital Learning Space TOPScorer Achieved Milestone Turnover of 1,000 crores, Introduction of premium stationery products under brand "HQ" HQ Branded Stationery in UAE 5#6Global Presence 26 20 16. Turkey 17. Ethiopia 20. Tanzania 21. Zambia 22. Madagascar 23. South Africa 24. New Zealand 25. UAE 26. Trinidad & Tobago 27. Mozambique 28. Congo 29. Senegal 30. Ivory Coast 31. Ghana 1. Canada 2. U.S. 6. Puerto Rico 11. Sweden 7. Costa Rica 12. Denmark 3. Mexico 4. Honduras 5. Jamaica 8. Panama 13. Germany 18. Kenya 9. Ireland 14. U.K. 19. Rwanda 10. Norway 15. Spain 6#7Navneet's Presence Supplementary Books Maharashtra & Gujarat Digital Presence Maharashtra & Gujarat Orchid International Mumbai, Pune, Bengaluru, Hyderabad and Kolkata Text Books Andaman & Nicobar, Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Nagaland, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand, West Bengal and Sri Lanka Stationery Maharashtra, Goa, Gujarat, Dadra & Nagar Haveli, Diu & Daman, Madhya Pradesh, Chhattisgarh, West Bengal, Bihar, Jharkhand, Orissa, Rajasthan, Delhi, Haryana, Chandigarh, Punjab, Himachal Pradesh, Uttar Pradesh, Uttarakhand, Jammu & Kashmir, Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Telangana, Andaman & Nicobar, Assam, Meghalaya, Manipur, Tripura, Nagaland, Arunachal Pradesh, Sikkim, Nepal 7#8eSENSE Learning Classrooms Digitised Hours of digital content 350+ Students learning through TOPScorer 1.2Mn Institutes using TOPClass 4,000+ 15,000+ STUDY BUDDY TOPScorer App™ Fun. Learn. Score. More. TOPClass TOUCH™ Digital School Diary eSense Ensuring Success 210+ Team of Authors, Illustrators and animators Videos 15,000+ 2,00,000+ MCQs 8#9Indiannica Learning SCHOOLS VISITED ANNUALLY CURRICULUM 8,500+ Schools CBSE, ICSE, SSB EMPLOYEES 220+ TARGET REACH 25,000+ CBSE / ICSE & 20,000+ SSC Schools LOCATIONS Pan-India School Presence • Extensive product catalogue comprising educational, instructional and information products & technology solution. o Offers specialized curricular learning solutions consisting of textbooks, interactive student, teacher resources and training materials. o Key export markets include Sri-Lanka, Nepal and GCC. 9#10K12 Techno Services Over the last few years, quality Direct Education is in great demand in the Country and hence seen a sudden growth. ORCHIDS The International School 42 No. of Schools (CBSE/ICSE) 15.7% SHAREHOLDING Sequoia Capital 54.5% | Navneet Learning LLP 29.8% Sofina Ventures Locations No. of Schools 7 Locations Bangalore (16 schools + 1 College) 17 Mumbai Hyderabad 13 2 Pune 7 Kolkata 1 29,200+ Chennai 1 58,300+ No. of Students Gurgaon 1 Capacity TOTAL 42 10#11Navigating the next strategy - The Digital Shift LEARNING FOR A BETTER WORLD Navneet Digibook LEARNING FOR ALL LEARNING EFFICIENTLY o Launched in Dec'20 Navneet Kids Platform o It is being built for a best-in-class hybrid (Kit + Digital) learning experience • A pre-set learning journey according to the curriculum, customized to the child's needs and abilities • Emphasis on active learning and a balance between kit and digital interface o Reliance on drip-fed teaching method for various topics • Improving interactivity and fun in learning by enabling gamification of content 11#12+ Don Company Overview Industry Overview Financials 12#13COVID Impact on Education 1/2 More than 1.5 million schools in India are closed amidst the pandemic and there are many obstacles in rolling out a large-scale digital education program 1 According to a 2019 government survey, only 24% 2 of the households have internet access In small towns and villages, only 4% of the population has access to the internet 3 4 The Education Ministry slashed its digital e- learning budget from Rs 604 crores in FY20 to Rs 469 crores in FY21 - the year in which the pandemic struck The World Bank predicts a loss of USD 440 Bn (Rs 32.2 lakh crores) of the Indian treasury due to the closing of schools 5 In India, almost 320 million students have been affected by school closures (UNESCO, 2020a). 6 However, only 37.6 million students in 16 states are continuing their academics via online and radio programmes (UNICEF, 2020a) 13#14COVID Impact on Education 2/2 Even with the rise of digital learning methods, there are many students who cannot avail these services. These include students with disabilities, belonging to minorities, coming from migrant or refugee camps and the ones living in the most remote parts of the country 7 The disruption in school services has led to a severe impact on the health of 115 mn children who received Mid Day Meal (MDM) on a daily basis In West Bengal, child labour amongst school-going children has risen by 105 per cent during the COVID pandemic 8 9 11 Numerous challenges have surfaced, including access to capital, merging technology efficiently into business models and training teachers for digital platforms Schools lack the infrastructure to maintain social 10 distancing 14#15Edtech Key Growth Drivers in India Low Cost of online Education Increasing Employability Quotient Government's Digital initiative Increasing smartphone user base Growing internet penetration WWW. i↑ IIII 冒 Increasing Disposable Income Increasing Young Population Unavailability of Quality Education Favourable e-learning government policies such as Skill India, SWAYAM, SANKALP, STRIVE, DIKSHA, and National Digital Library among others Rising demand among working professionals due to the flexibility of time 15#16Value Proposition Fast-paced EdTech adoption in a post- Covid-19 world Strong balance sheet and good liquidity Pool of promising talent Customer- centric products Healthy partnerships Integrating content, products and IPs to make the business more valuable High-quality and cost-effective products leading to better access and results 16#17Industry Overview + - Company Overview Financials 17#18STANDALONE FINANCIAL RESULTS - Q1FY22 Particulars Q1FY22 % of Rev Income from Operations 31,832 Qtr. Ended June' 21 Q1FY21 32,487 % of Rev Other Income 685 226 Total Revenue 32,516 I 32,713 COGS 16,508 16,922 + Employee benefits 3,6221 3,238 Other General Overheads 5,528 I 4,547 Total Expenses 25,658 24,707 EBITDA I 6,859 22% 8,006 19% Depreciation I 799 829 EBIT 6,060 7,176 Finance cost 118 I 360 PBT 5,942 1 19% 6,817 21% Tax 1,489 1,752 PAT 4,453 14% 5,065 16% Other Comprehensive Income (OCI) (249) 705 Total Comprehensive Income (TCI) 4,204 5,770 18#19STANDALONE FINANCIAL RESULTS - Q1FY22 Total Revenue 32,713 -1% 32,517 EBITDA 8,006 -14% 6,859 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Publications Segmental Revenue 20% Stationery - Domestic 28% PBT 6,817 -13% Q1FY21 5,942 Q1FY22 Stationery - Exports 20% Q1 FY22 9,877 3,341 18,495 Q1 FY21 12,359 4,612 15,470 19#20Annual Performance Over the Years Total Revenue and Growth (%) EBITDA & Margins (%) (Rs. in lakhs) 16.8% 18.8% 4.2% 6.3% 24.6% 22.7% 22.2% 23.4% 15.4% 1,11,333 1,16,145 1,37,992 1,46,718 -44.3% 81,750 27,445 26,392 30,704 34,351 12,585 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Total Revenue Growth EBITDA -O- Margin PBT & Margins (%) 22.1% 20.2% 14.5% 19.6% 20.1% 13.2% PAT & Margins (%) 12.9% 15.0% 7.5% 10.3% 24,599 23,446 27,072 29,514 8,428 16,165 15,322 17,748 21,935 6,163 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 PBT Margin PAT Margin 20#21Annual Performance Over the Years ROCE % (Rs. in lakhs) Price to Earnings (x) 33.7% 31.8% 29.2% 31.0% 23.8 99,455 1,05,924 21.7 73,973 82,205 88,738 14.2 6.5 8.6% FY17 FY18 FY19 ICapital Employed FY20 ROCE % FY21 Networth & Return on Networth 22.3% (%) 19.0% 20.4% 22.7% 29.7 FY17 FY18 FY19 FY20 FY21 Earnings per share (in Rs) 9.58 7.67 6.81 6.56 5.9% 72,560 80,841 87,196 96,572 1,03,887 FY17 FY18 FY19 FY20 FY21 Networth Return on NW% Book value per share (in Rs) 31.07 34.61 38.10 42.20 45.39 2.69 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 21#22Annual Performance Over the Years Healthy Pre-tax Cash Flows From Operations / EBITDA Consistent Dividend Payout (%) 150% 125% 2.4 75% 1.1 50% 0.6 0.7 0.6 50% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Low Leverage with Debt/Equity (x) 0.3 0.2 0.4 0.3 Interest Coverage Ratio (x) 71.9 40.3 23.8 23.6 13.3 0.0 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 22#23Asset Productivity Ratios for the last 5 years 4.3 2.5 Fixed Asset Turnover (x) 3.5 4.5 Total Assets Turnover (x) 5.1 1.2 1.1 1.1 1.1 0.6 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 23#24Working Capital Cycle 75 114 128 95 135 134 154 144 138 131 66 59 50 110 103 June'20 Sep'20 Receivable Days Dec'20 Mar'21 June'21 FG Inventory Days RM Inventory Days 24#25CONSOLIDATED PERFORMANCE FOR Q1 FY22 Revenues Rs. In lakhs EBITDA Rs. In lakhs Particulars Q1FY22 Q1FY21 Q1FY22 Q1FY21 NEL 31,831 32,487 6,858 8,006 eSense 226 110 (192) (255) Indiannica 961 603 (159) (607) PBT Rs. In lakhs Q1FY22 Q1FY21 4,452 5,064 (502) (397) (346) (747) NLLP NHKL 154 90 90 21 # # K12 (436) 21 85 # # NTVPL # Inter co Adjust (387) (90) 16 (76) 21 (68) Total 32,785 33,199 6,543 7,068 3,210 3,938 25#26Outlook NEL's ability to significantly expand its footprint in states other than Maharashtra and Gujarat and make inroads in other national (CBSE and ICSE) and state level boards amidst the competitive business environment will be the key positives. Ability of the company to stabilize the business operations of the subsidiaries and increase its exposure from the digital segment. The formal education segment's growth should rebound to 10-12% over the medium term on the back of urbanisation, increasing enrolment in the tertiary segment, and economic rebound. In the meantime, recovery in fees collection and cash flow management will remain monitorable 26#27Corporate & Shareholding Information Shareholding Pattern (as on 30th June, 2021) 15.26% Stock Data Market Cap as on 09th August, 2021 2,325 Cr. ✓ Stock Price as on 09th August, 2021 102.00 22.41% 62.33% Promoters Others Institutions ↑↓ 52 Week (High / Low) 0044 NSE/BSE Symbol - No. of Shares Outstanding Stock Performance (as on 09th August, 2021) 120.00 99.65 101.00 91.80 100.00 80.50 83.70 86.40 84.85 81.45 80.10 76.70 76.55 74.75 80.00 60.00 40.00 20.00 0.00 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 107.35/72.30 NAVNETEDUL/508989 22,88,70,500 Apr-21 May-21 Jun-21 Jul-21 Aug-21 27#28THANK YOU NAVNEET EDUCATION LIMITED Corporate Identity Number L22200MH1984PLC034055 Corporate Office & Regd. Office: Navneet Education Limited, Navneet Bhavan, Bhavani Shankar Road, Dadar-(West), Mumbai - 400028. Website: www.navneet.com E-mail Id: [email protected] Investor Relations Contact Roomy Mistry | Head - Investor Relations | Navneet Education Limited Address: Navneet Education Limited | Navneet Bhavan | Bhavani Shankar Road, Dadar- (West), Mumbai - 400028. Phone: +91 22 6662 6565 | Mobile: +91 98199 58878 Email Id: [email protected] OLIWADA Dadar Beach DADAR Lakhamsi Nap Mancherji Joshi Panch Udyan AGAR BAZAR RBI COLONY PRABHADEVI CENTURY BAZAAR CENTURY MILLS Gokhale Rd Pipe Rd. Navneet a Education Limited D GD Ambekar Marg SHINDEWARI SATHE NAGAR Marg NEW BPT COLONY PRATIKSHA NAGAR RAVAL PAD Eastern Fwy Wad