Corporate Presentation - SEGI Investor Relations
Transcription
Corporate Presentation - SEGI Investor Relations
3/29/2011 Corporate Presentation FY2010 Results Review & Corporate Update Presented by: Lee Kok Cheng, Chief Executive Officer Cheryl Chong, Executive Vice President, Corporate Planning & Services 22 March 2011 IR Adviser AQUILAS 2 • • • • • Corporate Profile Recent Developments Growth Strategies Financial Highlights Investment Merits Agenda Best is yet to be... 1 3/29/2011 3 SEG INTERNATIONAL BERHAD’s Main Shares Listed: Main Market, Bursa Malaysia (listed on Second Board in 1995; transferred to Main Market in 2004) Sector: Trading/Services Codes: Bursa: 9792 / SEG Bloomberg: SYS MK Reuters: SEDU.KL Share Capital: Market Capitalization: RM128.39 mil (256.78 mil shares of RM0.50 par) RM891.0 mil (RM3.47 as at 18 Mar 2011) SEG INTERNATIONAL BERHAD’s Warrants 2010/15 Codes: Bursa: 9792WA / SEG-WA Outstanding No. of Warrants: 117.4 mil (as at 18 Mar 2011) Terms of Warrants : Expires 14 Aug 2015; 1-for-1 Conversion; Exercise Price of RM1.00 Market Capitalization: RM275.9 mil (RM2.35 as at 18 Mar 2011) Corporate Information Best is yet to be... Corporate Profile Among Malaysia’s largest private higher education providers 2 3/29/2011 5 • Founded in 1977, SEGi is one of Malaysia’s largest private education groups today, providing tertiary and adult-learner courses – 6 full-fledged campuses nationwide: SEGi University College (Kota Damansara), SEGi College Subang Jaya, SEGi College Kuala Lumpur, SEGi College Penang, SEGi College Sarawak and Kolej SEGi Seri Kembangan – SEGi facilities are able to house up to 32,500 students in total • SEGi’s growth path: Background Best is yet to be... 6 • SEGi has built an international network of top-notch partner universities for broader range of courses – Also works closely with local and international professional bodies for programme recognition, research and certification Background (con’t) Best is yet to be... 3 3/29/2011 Growth Strategies Focusing on filling up capacity… IR Adviser AQUILAS 8 Reputable brand position as a top-notch education group Comprehensive and diverse programmes Strong team of key personnel to spearhead various initiatives Innovative in responding to market changes Financially strong to introduce new courses and to undertake aggressive marketing Core Competencies Best is yet to be... 4 3/29/2011 9 1. Continuously introducing new and higher-margin programmes Expanding by >20 modules per year Placing greater emphasis on specialist courses Faculty 2010 2011 2012 Business, Accountancy & Mgt 1 3 5 Medicine 1 - - Pharmacy 3 2 - Optometry & Vision Sciences 2 3 - Dentistry 1 1 - Nursing & Allied Health Sciences 8 8 6 Engineering & Built Environment - 4 2 Creative Design & Technology 1 2 3 Hotel & Tourism 3 2 3 Post Graduate Programmes 1 3 2 21 28 21 Total Growth Strategies Best is yet to be... 10 2. Increasing international student population Collaborating with strategic partners overseas who will provide the campus “hardware” for students’ initial studies in their home countries Focused on providing ease of transfer and bridging programmes Eyeing regional markets, e.g. China, Indo-China, Indonesia, Maldives and the Middle-East - Recently strengthened collaborations with Xinjiang Language Centre and Linyi Normal University in China 3. Targeting adult learning segment Strategic locations within the city Greater flexibility in class schedules and fee payments Collaborations with industrial partners to meet employee training requirements Usage of online portal to complement face-to-learning experience Growth Strategies (con’t) Best is yet to be... 5 3/29/2011 11 4. Expanding capacities To double student population within 3-4 years Campuses generally operation on single-session - Able to double capacity by activating 2 or more sessions a day Adult learners able to join at nights and weekends New campus planned in Ipoh, Perak ‘000 at year end Student Population 50.0 Projections 40.0 30.0 20.0 10.0 0.0 FY2010 FY2011 FY2012 FY2013 5. Intensifying marketing campaign to become the ‘institution of choice’ and enhance brand equity 10% of revenue allocated for A&P for FY2011 Growth Strategies (con’t) Best is yet to be... 12 Branding Strategy Best is yet to be... 6 3/29/2011 13 Branding Strategy (con’t) Best is yet to be... Financial Highlights Achieving quantum leap… IR Adviser AQUILAS 7 3/29/2011 15 Qtrly Revenue (RM’mil) Qtrly PBT (RM’mil) 20 60 15 40 Qtrly PATMI (RM’mil) 15 10 10 0 6.7 0.3 3.0 0.1 9.5 10.8 11.0 11.7 5 0 4Q10 3Q10 2Q10 1Q10 4Q09 3Q09 2Q09 1Q09 0 5 8.8 1.1 3.8 0.9 13.2 13.8 13.3 14.1 40.7 35.7 51.8 39.8 54.8 52.6 56.4 56.4 20 Remarks 4Q10 4Q09 Change RM’mil FY10 FY09 Change Remarks Higher due to increased student population 56.4 39.8 41.7% Revenue 217.6 166.4 30.8% Higher due to increased student population Better margin due to high margin programs launched, as well as higher sales-to-operating-costs ratio Same factors as FY10 In line with EBITDA growth Lower finance costs from reduced borrowings Tax rate for 4Q10 in line with that of FY10 In line with PATMI 16.5 3.4 >100% EBITDA 62.4 22.0 >100% 29.2% 8.6% +20.6pt EBITDA margin 28.7% 13.2% +15.5pt 14.3 1.5 >100% EBIT 55.5 16.3 >100% 25.4% 3.7% +21.7pt EBIT margin 25.5% 9.8% +15.7pt 14.1 0.9 >100% PBT 54.3 14.6 >100% 25.0% 2.3% +22.7pt PBT margin 25.0% 8.8% +16.2pt After accounting for slightly higher depreciation & amortisation for FY10, due to increase in CAPEX Positively impacted by lower finance costs as a result of slight reduction in borrowings and interest rates 11.7 0.0 >100% PATMI 43.1 10.0 >100% 20.8% 0.1% +20.7pt Net margin 19.8% 6.0% +13.8pt Lower effective tax rate for FY10, compared to FY09’s close-to-statutory rate 4.80 0.02 >100% Basic EPS (sen) 17.40 4.23 >100% In line with PATMI FY2010 Income Statement Best is yet to be... 16 Group Revenue and Gross Margin Gross Margin RM’mil 250 Revenue 200 69% 72% +30.8% yoy Gross Margin 71% 72% 72% 74% 100% 80% 60% 150 Student Population 5-year CAGR: +11.2% p.a. 100 40% 50 20% 25,000 +19.2% yoy 20,000 15,000 10,000 5,000 0 75 74 86 127 166 218 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 Revenue Trend 0% 0 Best is yet to be... 8 3/29/2011 17 RM’mil Margins (%) EBITDA & Margin 27.6% 80 EBITDA 60 EBITDA Margin 28% 24% 20.0% 19.1% 32% 15.5% 13.6% 20% 13.2% 40 16% 12% 14.9 13.4 17.3 22.0 60.0 8% 14.3 20 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 4% 0 0% RM’mil Margins (%) PBT, PATMI & Margins 60 25.0% PBT 50 40 1.3% Net Profit 7.8% 3.9% 30 Net Margin 8.8% 5.7% 6.0% 30% 19.8% 6.0% 54.3 43.1 14.6 10.0 9.9 7.3 -20% 2.5 5.2 10 2.9 2.1 0% 0% -10% 1.0 0.2 10% 10% 20 0 -30% FY2005 FY2006 FY2007 FY2008 FY2009 ROA 23.2% ROE 20% 20% 2.9% 2.8% 0.3% PBT Margin Average ROE & ROA 30% FY2010 4.7% 6.1% 3.4% 1.4% 4.6% 2.8% 1.7% 0.7% FY2006 Net Margin (LHS) FY2007 20% FY2008 FY2009 DuPont Analysis 17.9% FY2010 2.0 15% 1.5 Avg Asset 10% Turnover (RHS) 5% Avg Financial Leverage 0% (RHS) 1.0 0.5 0.0 FY2009 FY2010 Profitability Trend Best is yet to be... 18 RM‘mil PPE & Prepaid Lease Payments Associates As at 31.12.10 As at 31.12.09 Remarks 100.1 91.4 Increase due to CAPEX of RM16mil for building of new faculties (e.g. Medical, Optometry, etc) 4.8 4.8 - Intangible Assets 27.7 27.8 Consisting mainly of goodwill arising from past acquisitions Available-for-sale Financial Assets 2.7 2.5 Consisting of quoted equity at market value Deferred Tax Assets 3.2 3.9 - Other LT Receivables 2.4 4.5 Fair value of post-dated cheques from buyer of small colleges sold Trade Receivables 12.9 4.6 In line with revenue growth; students are mainly self-financing Other Receivables 24.7 35.5 Mainly rental and utility deposits & prepayments of campuses & hostels Cash & Cash Equivalent 78.8 36.9 Rise due to strong operating cash flows, even after accounting for CAPEX & share buy back Current Liabilities 46.2 34.7 Higher mainly due to large amount of fees received in advance for 2011 term Non-Current Liabilities 13.3 14.6 Shareholders’ Equity 202.6 169.2 Other Financials As at 31.12.10 As at 31.12.09 - Total Borrowings (ST + LT) (RM’mil) Net Gearing 18.0 18.6 Increase mainly due to retained profits Net Cash Net Cash Trade Debtor Days 14.7 13.4 Balance Sheet (Highlights) Best is yet to be... 9 3/29/2011 19 Dividend History Dividend Payout RM’mil 30 Payout Ratio % 80% 535% 78.1% 20 47.3% 0 23.8% 41.3% 10 4.0 4.7 3.8 1.3 1.2 1.2 26.7 25.7% 23.3% 17.8 32.9% 3.4 60% 41.4% 60.1% 1.9 2.3 40% 20% 0% FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Sen Sen Gross DPS Adjusted Gross DPS Other Financials 10 10 5 0 5 0 2.1 2.5 2.9 2.1 0.7 0.7 0.7 1.1 1.3 7.0 14.0 RM’mil 6.0 7.0 8.0 6.0 2.0 2.0 2.0 3.0 3.5 7.0 14.0 15 15 FY2010 FY2009 CAPEX 16.0 19.2 Free Cash Flows (FCF) 49.0 9.8 36.3% 23.9% Dividend/FCF Dividend History Best is yet to be... Investment Merits IR Adviser AQUILAS 10 3/29/2011 21 Ending 31 Dec (RM‘mil) FY2011f FY2012f Turnover PBT PAT EPS (sen) Earnings Guidance Best is yet to be... 22 SEG International Bhd Help International Corporation Bhd Masterskill Education Group Bhd Price (as at 18.3.11) 3.47 2.57 1.70 No. of shares (‘mil) 256.8 142.0 409.9 FY10 Revenue / YoY Growth RM217.6mil / 30.8% RM105.2mil / 8.9% RM315.7mil / 15.5% FY10 EBITDA / YoY Growth RM62.4mil / 183.6% RM33.4mil / 24.7% RM131.6mil / 6.4% FY10 PATMI / YoY Growth RM43.1mil / 329.6% RM19.1mil / 23.6% RM102.1mil / 4.9% Market Cap (RM’mil) 891.0 365.0 696.8 FY10 EBITDA Margin 28.7% 31.7% 41.7% FY10 Historical PE 20.7x 19.1x 6.8x Net Div Yield (FY10 Dividends) 2.0% 0.6% 4.1% Net Gearing Net Cash Net Cash Net Cash Return on Avg Shareholders’ Equity (ROE) 23.2% 18.2% 25.1% Return on Avg Total Assets (ROA) 17.9% 10.7% 19.3% Peer Comparison Best is yet to be... 11 3/29/2011 23 Among the fastest growing educational groups in Malaysia Increasing capacity utilization rate of existing facilities to see earnings leapfrog Unabated demand for tertiary education and adult learning Earnings multiple to be compressed with strong earnings growth; also high dividends expected Investment Case Best is yet to be... 24 THANK YOU BLOOMBERG: SYS MK, REUTERS: SEDU.KL IR Contacts: Cheryl Chong Terence Loo E: cheryl@segi.edu.my E: terence@aquilas.com.my T: +603-6287 3777 T: +603-2711 1391 / 6012-6295 618 Best is yet to be... 12 3/29/2011 Appendix IR Adviser AQUILAS 26 Centre of Continuing Education Creative Arts & Design Centre for Pre-University Studies Education & Social Sciences Hotel & Tourism • • • • • • • • Master in Retail Management Master in Entrepreneurship & Innovation Master in Corporate Communication MBA (UOS) Certificate in Creative Arts Certificate in Music BA (Hons) Mass Communication Master in Design (Graphic & Multimedia) • Foundation in Communication • Foundation in Information Technology & Engineering • • • • BA (Hons) Early Childhood Studies BSc (Hons) Psychology with Counselling BA (Hons) Health & Social Care Postgrad Certificate in Teaching • Diploma in Culinary Arts • Diploma in Hospitality Management Upcoming Programmes Best is yet to be... 13 3/29/2011 27 Nursing & Allied Health Sciences • • • • • • • Diploma in Physiotherapy (revised syllabus) Diploma in Health Care Diploma in Food Technology Diploma in Nutrition and Dietetics BSc (Hons) Professional Practice in Nursing BSc (Hons) BioMedical Sciences BSc (Hons) Healthcare Management Engineering & I.T. • • • • • Diploma in Telecommunication Engineering Diploma in Internet Computing B.Eng in Telecommunication Engineering BSc (Hons) in Internet Computing Bachelor in Automotive Engineering Business & Accountancy • Diploma in Event Management • BA (Hons) in Event Management • BA (Hons) in Economics Upcoming Programmes (con’t) Best is yet to be... 28 Dato’ Sri Clement Hii, Group MD Graduated with LLB (Hons) degree from the UK. He was also conferred the Hon. Doctorate of Business Administration by the University of Sunderland, and Hon. Doctorate of Laws by his alma mater, the University of Wolverhampton, UK. He is former senior journalist and has served as Chief Editor of the Borneo Post. He also served in senior positions with management firms and completed his tenure as Executive Deputy Chairman of Star Publications Bhd on 31st December 2010.. Mr. Lee Kok Cheng, Group CEO He obtained the BSc (Hons) Computer Science from University Sains Malaysia in 1985 and thereafter in 1996 he obtained his MBA from the University of Dubuque, Iowa in the US. He also holds a Postgraduate Certificate in Business Research from the University of Newcastle, Australia. He joined the Group as Vice-President (Operations) in June 2003 before being promoted to COO in January 2005. He became SEGi’s CEO in early 2009. Prior to this, he has eighteen years experience and his last position was the Group Executive Director of another educational institution. Management Team 14 3/29/2011 29 Ms. Hew Moi Lan, Group COO She is a fellow member of the Chartered Institute of Management Accountants, UK and a Chartered Accountant with the Malaysian Institute of Accountants. In 2005, she attained her Master of Business degree from the University of Newcastle, Australia. She is currently pursuing her Doctor of Philosophy, majoring in Management Accounting. Her tenure with the Group dates back to 1986 when she joined the then Systematic Business Training Centre. With more than 20 years of experience in the education industry, Moi Lan has brought an immense wealth of experience and knowledge into running of the Group. Emeritus Prof. Dr. Muhamad Awang, Vice-Chancellor, SEGi University College Prof. Muhamad Awang received his Ph.D specialising in air pollution and vegetation from the University of Sheffield, the United Kingdom, in 1979. He was a Professor of Environmental Sciences at the Faculty of Environmental Studies, Universiti Putra Malaysia (UPM) and was a Deputy Vice Chancellor of Academic Affairs at UPM between June 16, 2000 and April 7, 2005. He is best known for his teaching and research on Air Pollution and Tropical Ecosystem Physiology and Environmental Science Management. Management Team (con’t) 30 Prof Dato’ Dr Jamaludin Mohaiadin, Deputy VC (Student Affairs) SEGi UC Prof. Jamaludin was formally the Deputy Vice Chancellor of Student Affairs in Universiti Sains Malaysia. He was also the Director of Center for Instructional Technology and Multimedia in USM. He has many years of experience in in the areas of multimedia courseware, graphic design, audio-video productions and the design of audio-video facilities, and was also a consultant to a number of universities in multimedia curriculum design, establishing instructional technology centers and academic training programmes. Prof. Tan Beng Cheok, Senior VP (Academic) & Deputy VC (Academic) SEGi UC Prof. Tan has a PhD from the University of Wales. He was previously the Professor of Fundamental Physics and Dean of the Institute for Advanced Studies in the University of Malaya. He was previously also the Managing Director of Hong Leong Engineering and CEO of another educational institution. Management Team (con’t) 15 3/29/2011 31 Dr. Lisa Tan, Principal of SEGi Subang Jaya Dr. Lisa holds a DBA from University of South Australia and MBA from the University of Bath, UK. She also has a Diploma in Education from Singapore University and B.Sc (Hons) from the University of London. She has worked with the Singapore Ministry of Education and private institutions of higher learning for more than 20 years with vast experience in the field of education and management. Her experience covers work with governmental bodies in Malaysia, China, the Philippines, Vietnam and Ghana, Africa. Mr. Lawrence Ngu, Principal of SEGi Kuala Lumpur Lawrence holds a Master in Business from the University of Newcastle and ICSA professional qualification. His tenure with SEGi stretches back to 1993 when he joined the then Systematic College, Kuala Lumpur (today, SEGi College, Kuala Lumpur) after serving a period as chief executive of another educational institution. He then rose in the ranks within SEGi until assuming his current position three years ago. Management Team (con’t) 16