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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.
”
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3
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
4
Issuer
Issue Size
Dilution
Price Band
Offer Period
Objects of the Issue
Issue
Structure
Listing
Book Running
Lead Managers
Career Point Infosystems Limited (“CPIL”)
Primary issue of [ ●] Equity Shares aggregating Rs. 1,150 mn
[ ●] %
Rs. [ ●] to Rs. [●] per Equity Share of Face Value Rs. 10
Sept 16, 2010
– Sept 21, 2010 (Bidding for QIBs shall close on Sept 20, 2010)
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
Up to 30% of the QIB portion may be allocated to Anchor Investors, of which at least 1/3 shall be available for allocation to Mutual Funds rd
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
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Issue Summary
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
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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) / Pre-
Dental Test (PDT)
* Proposed to be established through Gopi Bai Foundation Trust, Kota
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*
7
1993
► Training centre set up under proprietorship firms of Mr. Pramod
Maheshwari
2002
► Launched tutorial services through franchisee centres
2006-07
► Ventured into of
Company operated training centres
►
Launch of synchroschool programme
► Received investment from Volrado Venture
Partners
2008-09
► Executed management cooperation agreement with Singhania
University for establishing university off-campus
Tutorial Services to
Comprehensive
Learning
Solutions
Provider
2009-10
► Equity investment by
FTPES 1 and Nadathur
Raghavan 2 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
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Issue Summary
Who We Are
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
Investment Rationale
9
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.
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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 CY10e 3
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 approx 4 .:
– Rs. 94 billion towards Plan expenditure
– Rs. 19 billion towards Non-Plan expenditure
Migration to
Knowledge
Economy
India is migrating towards a services driven 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
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1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
CAGR: 19.4%
9,897
397,178
11,000
490,193
13,653
599,096
2005
Source: Website of AIEEE
2006 2007
Students Appeared
17,992
792,752
2008
24,531
962,119
2009
No. of Seats
30,000
25,000
20,000
15,000
10,000
5,000
0
350,000
300,000
250,000
200,000
150,000
100,000
210,061
299,288
50,000
0
2005 2006
Source: CBSE Annual Report FY09
193,119
2007
148,865
135,617
2008 2009
450,000
360,000
270,000
CAGR: 9.5%
5,444
299,288
5,537
243,029
6,992
311,258
8,295
384,977
472,000
9,509
180,000
90,000
0
2006 2007 2008
Students Appeared
2009 2010
No. of Seats
Source: IIT press release and website of IIT Madras, JEE and wikipedia
10,500
9,000
7,500
6,000
4,500
3,000
1,500
0
150,000
120,000
90,000
60,000
30,000
0
28,751
76,026
34,201
89,026
37,808
112,788
41,411
117,001
Jun-08 Dec-08
Total Appeared
Jun-09 Dec-09
Total Passed
Source: Website of ICAI
45,000
36,000
27,000
18,000
9,000
0
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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
* As on July 31, 2010
FRANCHISEE CENTRES
16 Franchisee Centres spread across
India*
Typical franchise agreements:
– 3-4 years
–
Payment of an upfront fee and % of the gross fees from student enrollment
Targeting expansion into high potential demand cities for education services with current limited presence
* As on July 31, 2010
ENROLLMENTS
30,000
20,000
10,000
0
4,296
16,730
1,141
5,543
FY2009
IITJEE AIEEE
5,560
20,640
908
4,690
6,190
18,253
3,606
577
AIPMT
FY2010 4 Months Ended July 2010
Distance Learning Programs
DISTANCE LEARNING SERVICES
Distance learning programme comprises of the following: correspondence courses test series courses
Regular guidance through correspondence.
Team of faculty members for distance learning programmes
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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
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Leveraging our content & management experience and the demand for asset light models…
Career Point
Infosystems Ltd.
100%
Subsidiary
Career Point Infra Ltd.
Development of educational institution infrastructure
Trust
Lease
Rent
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
Singhania
University
Offshoot
* Proposed to be established through Gopi Bai Foundation Trust, Kota
Global
Public
School
Career
Point
University*
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Strategy
STRENGTHEN
EXISTING
SEGMENTS
Develop integrated campus
Initiatives
Developing an integrated campus facility to address the overall needs of students and thereby increase the enrollments
Strong brand coupled with geographic expansion to attract students and faculty in greater numbers
EXPANSION
IN
OFFERINGS
Leverage and expand content
Global
Public
School
Plans to operate schools and our subsidiary to set up school infrastructure
Strong track record enabled creation of self generating cycle
Utilize ECAMS to deliver formal education
Career Point
University
(Proposed to be established through Gopi
Bai Foundation Trust)
Cater to the huge unmet demand for higher education
Intending to partner with Government under the PPP model
LEVERAGING
ON
TECHNOLOGY
Use innovative digital products to reach students
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
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Issue Summary
Who We Are
Why We Can Continue to Grow
Our Financial Track Record
Our Investors
Investment Rationale
17
Name Designation
Age
(Yrs)
39 Pramod
Maheshwari
Chairman,
Managing
Director &
CEO
Experience
(Yrs)
>15
Education
B.Tech from
IIT Delhi
Om Prakash
Maheshwari
Wholetime
Director &
CFO
41 >16 B.E from
Rajasthan
University
Profile
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
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
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Name
Shailendra
Maheshwari
Mithilesh Dixit
Designation
Sr. Vice
President
–
Academics &
Product
Development
Sr. Vice
President -
School &
Vocational
Education
Rajneesh Goyal Vice-President
Academics -
Test
Preparation
Age
(Yrs)
38
48
34
Experience
(Yrs)
13
Education
>27
9
Profile
B.E from
University of
Rajasthan
MSc. from
Madras
University and MBA and
Doctorate from Trinity
University,
USA
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.
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
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
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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.
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Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Investors
Investment Rationale
21
800
CAGR (07-10) : 31.2%
600
412
400
300
200
490
0
2007 2008 2009
678
2010
200
150
100
50
0
CAGR (07-10) : 18.4%
155
120
162
2007 2008 2009
199
2010
300
200
CAGR (07-10) : 18.3%
237
182
254
100
0
2007 2008 2009
301
2010
1500
CAGR (07-10): 82.7%
1200
900
600
300
0
223
425
2007 2008
587
2009
1,361
2010
22
800
CAGR (07-10) : 29.9%
600
410
400
300
200
479
0
2007 2008 2009
658
2010
200
150
100
50
0
CAGR (07-10) : 14.0%
153
120
150
2007 2008 2009
178
2010
300
200
CAGR (07-10) : 15.4%
235
182
241
100
0
2007 2008 2009
280
2010
1500
CAGR (07-10): 81.1%
1200
900
600
300
0
223
472
2007 2008
572
2009
1,325
2010
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Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Investment Rationale
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75.35%
24.65%
Public Shareholding
Franklin Templeton Private
Equity
Volrado Venture Partners
Mr. N S Raghavan (for and on behalf of Kalpa Partners)
Others
Total
% of Total
Shareholding
13.95%
6.94%
2.37%
1.38%
24.65%
Public 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
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Issue Summary
Who We Are
Why We Can Continue to Grow
Our Experienced Faculty & Management
Our Financial Track Record
Our Investors
26
Strong Brand
Equity
Content
Repository
Growth strategy in Formal education and
Tutorial services
Track record of
Career Point group for over
16 years
Experienced
Management
Team
Technology aided training
Comprehensive
Learning
Solution
Provider
Trained and qualified faculty
Strategy to consolidate our position as a comprehensive learning solutions provider
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