#1CL educate 6899 Excellence In Education. Since 1995 Q1 FY20-21 Investor Presentation Presented by: CL EDUCATE LIMITED#2Core Values R O H Risk Taking OPENNESS OWNERSHIP HONESTY &COMMITMENT INNOVATION CL educate Presented by: CL EDUCATE LIMITED 2#3Safe Harbor This presentation has been prepared by CL Educate Limited (the "Company") solely for information purposes without any regard to any specific objectives, financial situations or information needs of any particular person. This presentation and its contents are confidential and should not be copied, distributed, disseminated, published or reproduced, in whole or part, or disclosed by recipients directly or indirectly to any other person. Data and comments contained in the presentation are basis what the Company believes are a reasonable representation of its businesses. Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. CL Educate Ltd. will not be in any way responsible for any action taken based on such data or comments or statements and undertakes no obligation to publicly update these data or comments or forward-looking statements to reflect subsequent events or circumstances. FY 18-19 or FY 19 means the year ending March 31, 2019 FY 19-20 or FY 20 means the year ending March 31, 2020 Q1 FY21 means period ending Jun 30, 2020 Q1 FY20 means period ending Jun 30, 2019 CI. CL educate Presented by: CL EDUCATE LIMITED 3#4Q1 FY 2021 - A Brief Snapshot ...25 .... THE FIRST YEARS Physical Digital: 90 - 10 has become 10 - 90 90% of Q1 is now Digital Total Income EBITDA PBT PAT Rs. in Cr June 20 June 19 50.5 89.2 7.3 12.9 2.7 7.5 1.6 5.6 CI. CL educate 4 Presented by: CL EDUCATE LIMITED#5Contents COVID Impact & Business Updates Financial Updates The New Normal *CL educate 5 Presented by: CL EDUCATE LIMITED#6• • FY 2020-21: The New Normal COVID 19 Changes CL Action Career Launcher Physical Personal Touch Centers shut since March Premium Product Sales affected Kestone Marketing budgets first to go as a part of global cost cutting Physical Events business at a complete standstill Admissions cycle of all Schools and Colleges thrown out of sync • . Instantly moved complete delivery of products online Launched Virtual Events Platform Accelerated focus on Digital Enterprise business Integrated Geography-free Lead Gen Team Cash Consolidation • Cost Management ● Lower Rentals Optimized Manpower Cost • Reskill and Restructure CI. CL educate 6#7Changes Affected By Us Business Focus Career Launcher Completely Digital Organogram Digital Sales Architecture ☐ KESTONE Corporate Virtual Events Digital Marketing Digital Marketing Digital Delivery (inc. BPs) Mar Comm CL educate 7#8Changes Affected By Us Backend & Support Currently operating Work from Home model All teams now operating on the cloud, real estate requirements will reduce Physical Centers will become a more Premium Service Data Security is key CL educate 8#9Changes Affected By Us Cost Impact of Changes Rent Reduction - Q1 - 1.25 Cr Q-o-Q (46%) Q2 onwards – 1.72 Cr (76%) Optimization of Manpower Expenses: Q1 - 3 Cr Q-o-Q (25%) Q2 onwards - 4.5 Cr Q-o-Q (33%) Focused spend purely on Digital Marketing Travel / Conveyance eliminated CI. CL educate 9#10Contents COVID Impact & Business Updates Financial Updates The New Normal *CL educate 10 Presented by: CL EDUCATE LIMITED#11Key Business KPIs 188% CL Digital Enrollments ✓ 18,641 - Jun 20 6,464-Jun 19 Daily Active Users 63,147 - Jun 20 33,333-Jun 19 275% Digital Revenue 45 Cr-Jun 20 12 Cr-Jun 19 $ Monthly Repeat Users ✓ 36% - Jun 20 25%-Jun 19 CI. CL educate 89% 44% 11#12The KPIs - Lead & Lag Indicators Lead Indicators Jun 20 Jun 19 Lag Indicators CI. CL educate Digital Users 38 Mn 25 Mn Monthly Active Users Enrolments 18,461 6,464 2 Mn 1 Mn Revenue 450 Mn 120 Mn 36% 25% Monthly Repeat Users Minutes Spent Assessments 23 Bn+ 15 Bn+ 20 Mn 16 Mn 12#13Virtual Conference Platform A gathering of people sharing a common virtual environment on the web platform. Highly interactive and look/feel a lot like their physical counterparts. مد হ 3D/Virtual Lobby & Hall Interactive Booth Break Out Sessions HOUWWGE GEATLE Custom Branding Gamification Social Media LOOD Logo Video Sharing Chat/Q&A Polls & Quiz CHACTENTRY .#14Data-centric design Inteligent automation Adiptabaty Delivered REDINGTON VIRTUAL EVENT 500+ CXO | 1,000+ Product Showcase Visits Looking for similar Virtual Event? Book a Demo Watch Video It's adaptabl The future storage is h NY ITS ex Tis ETING DERS 12028 CLE ed by Delivered ET MARKETING & CX LEADERS SUMMIT you by UMIR 1,197 CXO | 3,000 Visitors | 27 LIVE Sessions Looking for similar Virtual Event? Build For Digital India Delivered CL Buil Dig educate GOOGLE BUILD FOR DIGITAL INDIA 00+ Audience | 3,000+ Applications | 74,000 Stu Enrolments Delivered 7304 Book a Demo Watch Video Looking for similar Virtual Event? AGENDA Book a Demo Watch Video STRATEGINK SYSTEMS VIRTUAL SYMPOSIUM POWERED BY IBM H REDHAT TEC 2,000 CXQ Level AttendeesTOMATE & ORCHESTRATE IBM Looking for similar Virtual Event? FLASH WITH RH ANSIBLE Virtual Events Platform Book a Demo Watch Video#15LOUNGE LIFE BEGINS COFFE Delegates in this room right now 100 V LORD DESIGH LOGO DESIGN COFFEE IS ALWAYS AGOOD IDEA Coffee Coffee Tone i E @l Ні, Хохохо Ходоко LOGG-DESIGN க D Lobby Lounge Exhibitors Networking Centre Event Feedback#16AUDITORIUM Ні, Хохохо Хорохо ABSTRACT background ABSTRACT background#17Contents COVID Impact & Business Updates Financial Updates The New Normal *CL educate Presented by: CL EDUCATE LIMITED 17#18*CL educate Financial Snapshot 30% Enrollments 21,656-Jun 20 30,762 Jun 19 Online+Premium Online 21,656-Jun 20 ✓0-Jun 20 ✓ 17,249 - Jun 19 13,513 - Jun 19 43% Total Revenue 50.5 Cr-Jun 20 89.2 Cr-Jun 19 $ EBITDA Margin 14.4%-Jun 20 14.4% Jun 19 Net Profit Margin 3.2% Jun 20 - 6.3% -Jun 19 EBITDA 7.3 Cr-Jun 20 12.9 Cr-Jun 19 .48% I 18#19Merger Update • Merger process stalled due to COVID ✓ NCLT Chandigarh moving to VC mode, but not hearing Merger matters yet ✓ Last 4 Hearings postponed ✓ Next Date is in September 11 ✓ We have filed an emergency petition requesting to be heard so that the process doesn't get delayed further. • As things stand: ✓ Best Case Scenario: December ✓ More Realistic: March '21 CL *CI. educate Presented by: CL EDUCATE LIMITED 20#20Thank You For Investor Relations Queries Contact Arjun Wadhwa Chief Financial Officer CL Educate Ltd. Call: +91-98116 17289 E-mail: [email protected] [email protected] WISDOM IR Amit Kanabar Investor Relations CL Educate Ltd. Call: +91-88009 76683 E-mail: [email protected] [email protected] Ajay Jindal: [email protected] Nirjhar Gupta: [email protected] CL educate#21Annexures CL educate 22#22Merger Scheme Pre-Merger Organization Structure CL Educate Limited 1A Wholly owned subsidiaries CLEIS CL Media Upward merger of all the subsidiaries with CL Educate Post-Merger Organization Structure GKP CL Educate CL educate Kestone AKMS Consumer Segment Enterprise Segment Composite Scheme: Merger of CLEIS, CL Media, GKP, AKMS and Kestone with CL Educate Presented by: CL EDUCATE LIMITED 23#23Indian Education Landscape Operating in sizable @ $100 bn+, fast-growing industry A $100 bn+ market growing @16% CAGR CL's focus areas Unregulated/ Education Industry Informal/ Entrepreneurial Test-prep/ Coaching 7.2% GDP Growth expected in the $2.2 trillion Indian economy in FY18 (IMF) Budget'19 allocation to education Is Rs 8,187 bn, Up 10% Regulated/ Formal ~2/3rd of the Industry K-12 Education $52 bn growing @ 14% CAGR YOY Higher Education $15 bn growing @ 20% CAGR Vocational Education 28-29 mn people to be trained by FY20 (21-22% CAGR) Source: Technopak, CAGR - 2016 to 2020 ** Source: CRISIL, Google & KPMG Q4 FY20 Investor Presentation Figures in Rs Cr CL educate JEE 14,600 GATE 1,680 Medical MBA Law 6,400 390 83 CA 2,520 UPSC, SSC, Bank PO 11,500 | T | CL's market-leading offerings Rs 37,800 Cr in FY16 growing @ 14% CAGR** Publishing Integral part of Test- prep services>> Assessments Actual coaching/ mentoring Assessments - - Schools, College, Placements Digital Publishing Publishing $28 mn with a growth rate of 20% ~$5.4 bn academic book publishing by FY21 @ 12% CAGR I Research Services Sunrise segment - Boosted by recently introduced universities ranking (NIRF) by MHRD, increased corporate demand for innovation & research solutions I Skill Training Huge Employability Skills demand - ~1mn youth enter the job market every month, Government encouraging Public Private Partnerships for Skill Training EdTech India's digital learning market is ~$2bn in 2016, and is expected to reach $ 5.7bn by 2020,, online market to 8-fold by 2021 to reach $2bn#24CL's portfolio CL R Comprehensive product portfolio in Knowledge & Career Services educate CL Group Aptitude Products (AP) MBA I Law | Bank/SSC I International Test-prep Consumer Services Knowledge Products (KP) GATE I IIT I Medical | CA | Civils Publishing Corporates Integrated Marketing Services (Corporates) Enterprise Services Integrated Marketing Services (Institutions) Universities Govt. Vocational Now Discontinued Integrated Marketing Services (Research) CL Educate Ltd GK Publications Pvt. Ltd Kestone Integrated Marketing Services Pvt. Ltd CL Media Pvt. Ltd Accendere Knowledge Management Services Pvt. Ltd 25 Q4 FY20 Investor Presentation#25Corporate Structure 100% 57.85% Kestone Integrated Business, 100% ICEGATE GK Publications GATE based Test Marketing & sales Prep company services for corporates 100% Kestone 100% Kestone CL US Singapore Ltd. Integrated Business, Marketing & sales services for corporates Integrated Business, Marketing & sales services for corporates Q4 FY20 Investor Presentation CL Educate Parent Company 100% 100% CL Media Test preparation publisher with significant owned content base Content development, books for sale via GKP, Student Outreach support to Edu Institutes Accendere Knowledge Mgt. Services 100% CLEIS Research Incubation & Support Career Launcher Education Corporate Research Infrastructure & Services Ltd Incubator 100% CLIP Career Launcher Infrastructure 44.18% Eduvisors CL educate Specialist K-12 focused education services company owning Indus World Schools Portfolio 361 DM (Associate Company) Private Ltd 4.41% Research & Technology-led learning & education company 26#26Consumer Vertical Leader in Test-Prep Segment Consumer Bouquet of Products (MBA, Law, Civils, GATE, Engg, etc.) 1 National Test-Prep leader Delivering Successful Outcomes 70 CL Students in top 100 in the CLAT (Law) exam in May 2018 Growing Brand Equity from Sustainable Strengths Most comprehensive product-reach portfolio: 12 product groups + Network of 212* centers pan India & ~25K online users in FY18 CL educate 2 Household Test-Prep Brand Market leader in Aptitude Products (AP) MBA & Law offerings - CAREER LAUNCHER Well known Publications for test-prep E 3 6 2,939 Students received calls from at out of Top 10 in CLAT 18 & AILET 18 least one IIM in CAT 2016 out of 19,020 calls Scalable & asset-light business - 212* test prep centres with 63* owned & 149 under partnership in FY18 Strong Content 4 5 - Comprehensive, fully owned content, complemented by experienced faculty & trainers. 2,665 active titles (FY18) in Publishing Technology driven Multiple modes to reach students via digital strategies. 28% digital enrolments in FY18 - New brand acquisitions Addition of Knowledge Products (KP) via ETEN CA & IAS business acquisition; planned majority in ICE GATE Academy 俗 ETEN I.C.E. Inspiring Creativity & Endeavour IES GATE PSU 233 CL Students cleared Civil services (Preliminary) Examination 2016 18 selected in final merit list of the Civil Services Examination 2016 from 125 CL students Shortlisted in SBI PO 6 Mains Exam in 2017 Q4 FY20 Investor Presentation CL 27#27Enterprise Vertical Knowledge services for Corporates, Educational Institutions. Differentiated offerings + One of the best execution capabilities Enterprise Unique Learning cum productivity DNA in Corporate services Corporates 35% Share Universities 3% Share Pioneer & Leader in Research & Ranking improvement services Knowledge Services for Corporates Sales . 1 Kestone 2,500+ Creative, approachable, multidiscipline Kestonians . 100+ . Strong reach and infrastructure to Indian cities & 10+ global destinations . 2 CL Media Managed Manpower Services Training & Development Marketing Marketing Communication CL educate Customized Engagement Programs Digital Marketing Experiential Marketing Research Services & Innovation For Corporate & Universities -facilitates wrt reaching out to the right student set and improving their quality of intake. Provides marketing services to corporates For Universities 3 Accendere - facilitates universities wrt improving their rankings through research and start-up incubation Q4 FY20 Investor Presentation 28#28Unique Synergies Cross-leveraging between consumer & enterprise platforms CL educate CONSUMER ENTERPRISE Brand recognition across learning life cycle Multi-monetising of same customer at various stages of life Using same infrastructure at different times of day and year for high ROI CL initial brand contact when she is in school.... G. K. PUBLICATIONS Publishing division Career Launcher Test Prep Platform Cross sell publications to captive test prep/tutoring base Indirect advertising for test-prep/tutoring in publications ...She then meets us in college for test prep or experiences our research services... ...And then again in the workplace... ACCENDERE Enlightenment Guaranteed - Institutional R&D platform for schools/colleges ☐ KESTONE Corporate Marketing and manpower services Use Accendere to form tie-ups with schools/colleges and cross sell tutoring/test prep services Gain student mindshare early through research projects at schools, can be later leveraged to cross sell test prep services Leverage corporate network of Kestone to arrange industry partners for research projects at schools undertaken through Accendere Corporate network to aid student placement services in B2B Q4 FY20 Investor Presentation 29 I#29Strong ethos Strong team, complete focus on governance & processes Professionally qualified, experienced and active board • Satya Narayanan R., Chairman & Executive Director 19+ years of experience in • the education sector Bachelor's degree in Computer Sciences from St Stephen's Post Graduate Diploma from • IIM Bangalore . • Girish Shivani, Independent Director, Chairman Audit Committee 23+ Yrs of exp in IT, Telecom, Media, Finance, Corporate Strategy & Operations Co-Founder & Managing Partner Yournest Venture Gautam Puri, Vice Chairman & Managing Director 19+ years of experience in the education sector Bachelor's degree in Chemical Engineering from Punjab Engineering College Post Graduate diploma from IIM Bangalore Imran Jafar, Non-Executive & Non-Independent Director • Co-Founder & Managing Partner Gaja Capital. 18+ Yrs exp. In PE, Pharma & Technology MBA from IIM-B, & Masters degree in software engineering from BITS Pilani Nikhil Mahajan, Executive Director & CEO Enterprise business 18+ years of experience in finance and education Bachelor's degree in Electrical Engineering from Benaras Hindu University Post Graduate diploma from IIM Bangalore Viraj Tyagi, Independent Director • . Over 21 years of experience in the financial services sector Post Graduate diploma from IIM Bangalore CL educate High Corporate Governance ✓ Independent/ Directors are Board Nominee a majority on Internal Audit by a reputed external firm Audit Committee, Nomination & Remuneration Committees have only independent/ nominee directors Whistle-blower mechanism Statutory Auditors & Co LLP - Haribhakti Key Senior Management Q4 FY20 Investor Presentation • Capital Madhumita Ganguli, independent Director Over 25 years of experience and heads a large part of HDFC Arjun Wadhwa, Chief Financial Officer (CFO) • • 10+ Yrs of Experience in education space Profitable entrepreneurship ventures - Thesportscampus.com & Goals for Souls. Post Graduate diploma from MDI, Gurgaon Sanjay Tapriya, Additional Independent Director, CEO Uniworld Sugar Pvt Ltd CA & CS R Shiva Kumar, Chief Academic Officer 18+ years of experience in the private education sector, Bachelor's degree in Technology from IIT Madras, • Post Graduate diploma from IIM Kolkata Sreenivasan .R, Chief Customer Officer Over 15 years of experience in the education sector, Sujit Bhattacharyya, Chief Digital Officer Over 15 years of experience in the education sector, Master's degree in Technology from • Jawahar Lal Nehru University; Bachelor of Technology degree in Electrical Engineering from IIT Kharagpur; • Master's degree in Business Administration from IIM Bangalore • Post Graduate diploma from IIM Bangalore 30#30Two Big Rocks - Corporate CL educate Q4 FY20 Investor Presentation Consolidation Realignment 31