Corporate Presentation - SEGI Investor Relations

Transcription

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...
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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
Corporate Profile
Among Malaysia’s largest private higher education providers
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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
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)
3
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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
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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
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)
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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)
12
Branding Strategy
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Branding Strategy (con’t)
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
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
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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
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)
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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
Investment Merits
IR Adviser
AQUILAS
10
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21
Ending 31 Dec (RM‘mil)
FY2011f
FY2012f
Turnover
PBT
PAT
EPS (sen)
Earnings Guidance
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
11
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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
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
12
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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
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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)
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
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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.
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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.
16

Corporate Presentation - SEGI Investor Relations

Transcription

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