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CAREER POINT
Infosystems Ltd.
Initial Public Offering
1
Disclaimer
Career Point Infosystems Limited (the “Company” or “CPIL”) is proposing, subject to requisite approvals, market conditions and other considerations, a public issue of its
equity shares of face value of Rs. 10 each (“Equity Shares”) and has filed a Red Herring Prospectus (“RHP”) with Securities and Exchange Board of India (“SEBI”) and
Registrar of Companies (“ROC”). The RHP is available on the website of SEBI and the respective websites of the book running lead managers, being Centrum Capital
Limited (www.centrum.co.in) and JM Financial Consultants Private Limited (www.jmfinancial.in).
“The information contained in this presentation has not been independently verified by the Book Running Lead Managers. No representation or warranty, express or
implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. None
of the Company nor any of its respective affiliates, advisers or representatives, including Book Running Lead Managers and their affiliates, shall have any liability
whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection with this
presentation.
The Company may alter, modify or otherwise change in any manner the contents of this presentation, without obligation to notify any person of such revision or changes.
Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements", including those relating to the
Company’s general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and
regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments
in the Company’s business, its competitive environment, information technology and political, economic, legal and social conditions in India. However, there is no
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on
forward-looking statements, which speak only as of the date of this presentation.
Please note that this presentation is based on the RHP filed with SEBI and ROC and supplemented with information in the public domain. This communication is for
general information purposes only, without regard to specific objectives, financial situations and needs of any particular person. Please note that investments in Equity
Shares are subject to risks including loss of principal amount. Book Running Lead Managers and their affiliates do not accept any liability whatsoever, direct or indirect,
that may arise from the use of the information herein. This presentation can neither be used, reproduced, copied, distributed, shared, or disseminated in any other manner
nor can be redistributed to any other person.
This presentation is being furnished to you solely for your information. This presentation does not constitute an offer or invitation to purchase or subscribe for any Equity
Shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to
purchase shares in the offering should be made solely on the basis of the information contained in the Red Herring Prospectus (if resident in India) or the Red Herring
Prospectus and international wrap (if resident outside India) to be issued in connection with the offer and sale of the Company’s Equity Shares. Book Running Lead
Managers and their affiliates may from time to time perform investment banking or other services for, or solicit investment banking or other business from, any entity
mentioned in this presentation.
Investors and prospective investors in Equity Shares of the Company mentioned herein are required to make their own independent investigation and appraisal of the
business and financial condition of the Company and the nature of the Equity Shares.
By participating in this presentation or by accepting any copy of the slides presented, you agree to be bound by the foregoing limitations.
This presentation has not been and will not be reviewed or approved by any statutory or regulatory authority in India or by any stock exchanges in India.”
2
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
3
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
4
Issue Summary
Issuer
Issue Size
Dilution
Career Point Infosystems Limited (“CPIL”)
Primary issue of [●] Equity Shares aggregating Rs. 1,150 mn
[●] %
Price Band
Rs. [●] to Rs. [●] per Equity Share of Face Value Rs. 10
Offer Period
Sept 16, 2010 – Sept 21, 2010 (Bidding for QIBs shall close on Sept 20, 2010)
Objects of
the Issue
To construct and develop an integrated campus facility – Rs.682.50 mn
Expansion of classroom infrastructure and office facility – Rs. 164.86 mn
Acquisitions and other strategic initiatives – Rs 150.00 mn
General corporate purposes – Rs. [●]
QIB Portion: At least 60% of the Net Issue out of which 5% shall be available for allocation
on a proportionate basis to Mutual Funds
Issue
Structure
Listing
Book Running
Lead Managers
Up to 30% of the QIB portion may be allocated to Anchor Investors, of which at least 1/3 rd
shall be available for allocation to Mutual Funds
Non Institutional portion: 10% of the Net Issue
Retail Portion: 30% of the Net Issue
Bombay Stock Exchange Limited
National Stock Exchange of India Limited
JM Financial Consultants Private Limited
Centrum Capital Limited
5
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
6
Who We Are
TUTORIAL SERVICES
Tutorial services to high school and post
high school students for competitive
examinations like:
–
All India Engineering Entrance
Examination (AIEEE)
–
State Level Engineering Entrance
Examination (SLEEE)
–
Indian Institute of Technology – Joint
Entrance Examination (IIT-JEE)
–
All India Pre-Medical Test (AIPMT) / PreDental Test (PDT)
ECAMS & ISS
ECAMS: Education Consultancy and
Management Services
Provide necessary management services
ISS: Infrastructure Support Services
Rendering infrastructure and allied
services for setting-up of physical
infrastructure for educational institutions
Catering to K-12 and Higher Education
segments
ECAMS and ISS offered to trusts
Singhania
University
Offshoot
Global
Public
School
Career
Point
University*
* Proposed to be established through Gopi Bai Foundation Trust, Kota
7
How we have grown: Evolution into a Comprehensive
Learning Solutions Provider
2009-10
Growth
2008-09
2006-07
► Ventured into of
Company operated
training centres
2002
► Launched tutorial
services through
franchisee centres
1993
► Executed
management cooperation agreement
with Singhania
University for
establishing university
off-campus
► Launch of synchroschool programme
► Received investment
from Volrado Venture
Partners
► Training centre set up
under proprietorship
firms of Mr. Pramod
Maheshwari
Tutorial Services
to
Comprehensive
Learning
Solutions
Provider
► Equity investment by
FTPES1 and Nadathur
Raghavan2 aggregating Rs
600 mn.
► Executed MoU with Hughes
Communications India Ltd
for providing tutorial
services through VSAT
► Executed management
services agreement with
Gopi Bai Foundation Trust
for providing management
services to Global Public
School
► Executed MoU with Gopi
Bai Foundation Trust Kota
(Raj.) for providing ECAMS
for the proposed university
at Kota.
Timeline
Starting from Kota in Rajasthan, Career Point today is a comprehensive provider of learning solutions
Note:
1: Franklin Templeton Private Equity Strategy – A/C PMS
2. For and behalf of Kalpa Partners
8
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
9
Growth Drivers for Education Industry
Increasing
population
and lower
literacy rate
Increasing
per capita
income
Budget plan
for 2009-10
Increasing population and constitution of 32.6% of population in the age group of 0 to 14 years will
lead to increase in number of schools, colleges and universities.1
Adult literacy rate of India is lower than that of countries like Malaysia (92%), China (93%), Burma
(90%), Saudi Arabia (85%) and UAE (90%).2
To improve the literacy rate plans like SSA, MDM etc have been introduced by Government
Per capita income showing a rise of 9% from CY09 to CY10e3
Increasing per capita income expected to contribute to increase the spending on education.
During 2009-10, for developing existing Universities, colleges and institutes, Government has
made an outlay of approx4.:
–
Rs. 94 billion towards Plan expenditure
–
Rs. 19 billion towards Non-Plan expenditure
India is migrating towards a services driven economy
Migration to
Knowledge
Economy
Contribution of service and industry sectors to GDP increasing year on year.5
Lateral shift to a services economy is resulting in migration of people to cities and towns leading
to mass urbanization
Increasing urban population and demand for skilled workforce creates the need for education
Source:
1. UNESCO Institute of Statistics, World Bank, UNAIDS, ILO, Household Surveys, IMF, Country Data are for the most recent year available in 2000-2005
2. Human development reports
3. Central Statistical Organisation
4. Department of Higher Education
5. Central Statistical Organisation
10
Industry Growth
AIEEE
1,200,000
CAGR: 19.4%
1,000,000
800,000
600,000
IITJEE
9,897
11,000
490,193
13,653
599,096
17,992
792,752
24,531
962,119
CAGR: 9.5%
30,000
25,000
20,000
15,000
397,178
450,000
360,000
10,000
180,000
200,000
5,000
90,000
0
2005
2006
2007
Students Appeared
2008
9,000
9,509
5,537
7,500
6,000
4,500
1,500
0
0
2006
2007
2008
2009
Students Appeared
No. of Seats
2010
No. of Seats
Source: IIT press release and website of IIT Madras, JEE and wikipedia
AIPMT
CPT
350,000
150,000
299,288
34,201
300,000
250,000
10,500
3,000
2009
Source: Website of AIEEE
472,000
243,029
270,000
400,000
0
5,444
299,288
8,295
384,977
6,992
311,258
120,000
37,808
112,788
41,411
45,000
117,001
36,000
28,751
89,026
210,061
90,000
193,119
200,000
148,865
27,000
76,026
60,000
18,000
100,000
30,000
9,000
50,000
0
150,000
135,617
0
Jun-08
0
2005
2006
Source: CBSE Annual Report FY09
2007
2008
2009
Dec-08
Total Appeared
Jun-09
Dec-09
Total Passed
Source: Website of ICAI
11
Our Expanding Pan India Presence
TechEdge Class
Knowledge Labs
Synchro School
Company
Operated Training
Centres
Franchisee
Centres
Distance
Learning Services
12
Tutorials: Multiple Modes of Delivery
COMPANY OPERATED TRAINING CENTRES
Provide tutorial services
Adopted standardized teaching and testing methods.
R&D Cell regularly update standardised methods
17 Company Operated Training Centres*
Fees are collected in a lumpsum and installment basis
(depending upon the course)
Demonstrate our methodologies to our franchisees
FRANCHISEE CENTRES
DISTANCE LEARNING SERVICES
* As on July 31, 2010
16 Franchisee Centres spread across
India*
Distance learning programme comprises
of the following:
Typical franchise agreements:
correspondence courses
–
3-4 years
test series courses
–
Payment of an upfront fee and % of
the gross fees from student
enrollment
Regular guidance through
correspondence.
Targeting expansion into high potential
demand cities for education services with
current limited presence
Team of faculty members for distance
learning programmes
* As on July 31, 2010
ENROLLMENTS
30,000
10,000
20,640
16,730
20,000
5,543
4,296
1,141
5,560
18,253
4,690
908
6,190
3,606 577
0
FY2009
IITJEE
AIEEE
FY2010
AIPMT
4 Months Ended July 2010
Distance Learning Programs
13
Tutorials: Innovative Teaching Platforms
Tutoring for entrance examination integrated with school education through association with schools
Delivery platform benefits:
– no infrastructure costs incurred
– obtain access to broad student base
– no substantial marketing costs.
Programmes are funded by either school or by students
Operate at 2 locations
Intend to tie-up with more schools
Benefits to us:
– penetration and student enrollments
– relatively low investment
– explore new areas of business for competitive advantage
Recorded audio video content delivered by our key faculty members and added to our content repository
Provide a personalized learning environment
Based on the premise of ‘reinforced learning’ which means that students forming part of heterogeneous group possess
different levels of knowledge retention capability.
Virtual classroom environment
Replicates model of a real classroom with the help of VSAT/VPN technology
Students interact with instructors online
Able to deliver lectures at multiple locations simultaneously
Benefits to us:
– Minimizing time and cost of resource deployment
– Minimum human interface
– Expand offerings to remote locations
– Cover areas where setting up centre is not economically viable
Have an agreement with Hughes Communications India Limited for providing satellite based interactive services across
India.
CPIL uses the two way interactive VSAT technology for setting up satellite classrooms
14
ECAMS & ISS
Leveraging our content & management experience and the demand for asset light models…
Revenue Model
ECAMS & ISS: Robust Service Capability
100%
Subsidiary
Career Point Infra Ltd.
Development of
educational
institution
infrastructure
Lease
Rent
Trust
Management
Fees
Provide content, IT and
management Services
Career Point
Infosystems Ltd.
Enter into ECAMS contract with educational institutions
Provide necessary management services which include:
– location identification
– laying strategic plan
– human resource management services (teaching as well as non-teaching staff)
– administrative services
– advisory services (facilitation and assistance in securing licenses, clearance and
‘no-objection certificates’)
– information technology related services
– marketing, branding and education development activities
– management and maintenance of complete financial system
– conducting cultural, social and sports activities
Provide Infrastructure Support Services where asset light institutions would outsource
their capital intensive infrastructure requirements and allied services for setting-up of
physical infrastructure
Leverage upon our rich experience in understanding the dynamics of infrastructure
requirements in the education sector
ECAMS & ISS Presence
Singhania
University
Offshoot
Global
Public
School
Career
Point
University*
* Proposed to be established through Gopi Bai Foundation Trust, Kota
15
Growth Strategy
Strategy
STRENGTHEN
EXISTING
SEGMENTS
EXPANSION
IN
OFFERINGS
Develop
integrated
campus
Leverage and
expand content
Utilize ECAMS to
deliver formal
education
LEVERAGING
ON
TECHNOLOGY
Use innovative
digital products to
reach students
Initiatives
Developing an integrated campus
facility to address the overall needs
of students and thereby increase the
enrollments
Global
Public
School
Career Point
University
(Proposed to be
established through Gopi
Bai Foundation Trust)
Strong brand coupled with
geographic expansion to attract
students and faculty in greater
numbers
Plans to operate
schools and our
subsidiary to set up
school infrastructure
Strong track record
enabled creation of
self generating cycle
Cater to the huge
unmet demand for
higher education
Intending to partner
with Government
under the PPP model
Standardize content
and monetize it at
minimal incremental
cost, resulting in better
margins
With a multi pronged growth strategy, CPIL plans to strengthen existing capabilities while developing
new offerings to emerge as a comprehensive learning solutions provider
16
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
17
Experienced Promoters
Age
(Yrs)
Experience
(Yrs)
Chairman,
Managing
Director &
CEO
39
>15
Om Prakash
Maheshwari
Wholetime
Director &
CFO
41
>16
B.E from
Rajasthan
University
 Co-founder of Career Point
 Responsible for project implementation
as well as financial and legal matters
Nawal Kishore
Maheshwari
Wholetime
Director
35
>9
B.Com from
Maharshi
Dayanand
Saraswati
University
 Associated with the Company since
incorporation
 In-charge of various functions including
administration, liasoning and other day
to day affairs of the Company
Name
Designation
Pramod
Maheshwari
Education
Profile
B.Tech from
IIT Delhi
 Director of the Company since March
2000
 First generation entrepreneur and the
key founder member of our Company
 Over 15 years of experience in
developing and implementing training
methodologies
 Plays a major role in providing thought
leadership and strategic guidance, in
addition to supervising the functional
heads
18
Key Managerial Personnel
Age
(Yrs)
Experience
(Yrs)
Sr. Vice
President –
Academics &
Product
Development
38
Mithilesh Dixit
Sr. Vice
President School &
Vocational
Education
Rajneesh Goyal
Vice-President
Academics Test
Preparation
Name
Designation
Shailendra
Maheshwari
Education
Profile
13
B.E from
University of
Rajasthan
 With Career Point group since 1995
 Working Experience of 13 years in the
teaching field
 Grown to fame as ‘Math Guru’ through
his coaching and guiding students for
competitive examinations
 Formulates and monitors the
implementation of an effective academic
system Company wide.
48
>27
MSc. from
Madras
University
and MBA and
Doctorate
from Trinity
University,
USA
 Over 27 years experience in the army,
academic and corporate sector with
specific exposure to corporate affairs
 Has worked with ABC Investment and
Management Company in USA
 Current responsibilities include
managing the formal and vocational
education departments
34
9
B.E from
University of
Rajasthan
 Spent nine years in the field of
education
 Currently, he is overall in charge of the
mathematics department.
 Worked as a lecturer in the Engineering
College, Kota
19
End-to-End Business Model
Offering Quality Courses
Quality content developed by experienced
faculty members
Continuous assessment and updation of
course content through our R&D cell
Standard delivery procedure of content
delivery laid for our faculty members
Assessment of content delivery through
regular feedbacks
Strong Brand and
Geographic presence
Access to major markets of northern and
eastern India through presence in 13
states of India
Kota center attracting students from
Singapore and Middle East as well.
Introduced technology enabled education
delivery platform through tie-up with
Hughes Communications India Limited for
delivery of content to broader student
base
Experienced Management
and Faculty Team
Experienced faculty members from IIT,
NIT and other colleges in India
In-house training facility for on teaching
methodologies, skills and subject matter
of relevant courses
Senior management team having relevant
collective experience of 65 years
Presence in Formal
Education
Provides Education Consultancy and
Management Services to K-12 and Higher
Education segments
Provides Infrastructure Support Services
for educational institutions through our
wholly owned subsidiary.
20
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
21
Key Financials (Standalone)
Revenue
CAGR (07-10) : 31.2%
600
490
412
400
300
200
CAGR (07-10) : 18.3%
300
678
EBITDA (Rs in mn)
Total Income (Rs in mn)
800
EBITDA
0
237
182
200
100
0
2007
2008
2009
2010
2007
Profit After Tax
155
150
199
CAGR (07-10) : 18.4%
2008
2009
2010
Networth
1500
1,361
CAGR (07-10): 82.7%
162
NW (Rs. in mn)
PAT (Rs. in mn)
200
301
254
120
100
50
1200
900
300
0
587
600
425
223
0
2007
2008
2009
2010
2007
2008
2009
2010
22
Key Financials (Consolidated)
Revenue
600
658
479
410
400
CAGR (07-10) : 15.4%
300
CAGR (07-10) : 29.9%
EBITDA (Rs in mn)
Total Income (Rs in mn)
800
EBITDA
300
200
0
235
182
200
100
0
2007
2008
2009
2010
2007
Profit After Tax
CAGR (07-10) : 14.0%
153
150
2008
2009
2010
Networth
1500
178
120
100
50
1200
900
572
600
300
0
1,325
CAGR (07-10): 81.1%
150
NW (Rs. in mn)
PAT (Rs. in mn)
200
280
241
472
223
0
2007
2008
2009
2010
2007
2008
2009
2010
23
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
24
Shareholding Pattern
Shareholding Pattern
Break-up of Public Shareholding
Public Shareholding
24.65%
75.35%
Public
% of Total
Shareholding
Franklin Templeton Private
Equity
13.95%
Volrado Venture Partners
6.94%
Mr. N S Raghavan (for and on
behalf of Kalpa Partners)
2.37%
Others
1.38%
Total
24.65%
Promoter & Promoter Group
Attracted private equity investors
Note:
1. Shareholding pattern as on the date of filing the RHP with SEBI and ROC
2. Equity share capital as on the date of filing the RHP : INR 144.20mn
3. Final post issue shareholding pattern will be determined after the allotment of Equity Shares pursuant to the initial public offering
25
Today’s Discussion
Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
26
Investment Highlights
Strong Brand
Equity
Track record of
Career Point
group for over
16 years
Content
Repository
Growth strategy
in Formal
education and
Tutorial services
Experienced
Management
Team
Technology
aided training
Trained and
qualified faculty
Comprehensive
Learning
Solution
Provider
Strategy to consolidate our position as a comprehensive learning solutions provider
27
Thank You
28
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