First Quarter Fiscal 2013 Results Presentation

Transcription

1 First Quarter Fiscal 2013 Results Presentation Second Quarter FY2017 Results Presentation February 27, 2013 May 18, 2017 February 27,

2 Safe Harbor Statement This presentation contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of These forward-looking statements can be identified by terminology such as will, may, should, potential, continue, expect, predict, anticipate, future, intend, plan, believe, is/are likely to, estimate and similar statements. Among other things, the outlook for the third quarter and fiscal year 2017 and certain statements from management made in conjunction with this presentation, as well as the Company s strategic and operational plans (in particular, the anticipated benefits of strategic growth initiatives, including the College Cooperation Program, Open Learning Platform, mobile related products, Big Data solutions, bundling accounting practical skills training and employment guidance services, as well as acquisitions and strategic investments) contain forward-looking statements. The Company may also make written or oral forward-looking statements in its periodic and annual reports to the SEC, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: goals and growth strategies; future prospects and market acceptance of online and offline courses and other products and services; future business development and results of operations; projected revenues, profits, earnings and other estimated financial information; projected enrollment numbers; plans to expand and enhance online and offline courses and other products and services; competition in the education and test preparation markets; and changes of Chinese laws, regulations and policies, including those applicable to the Internet and Internet content providers, the education and telecommunications industries, mergers and acquisitions, taxation and foreign exchange. Further information regarding these and other risks is included in the Company s annual report on Form 20-F and other documents filed with the SEC. The Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this presentation is as of the date of May 18,

3 Agenda Results Overview Strategic and Operational Updates Financial Highlights Business Outlook Q&A 3 3

4 Results Overview Net Revenue Within Guidance Range Steady Progress on Long-term Strategic Initiatives Acceleration In Growth of Cash Receipts from Online Course Registration Net Revenue In-Line with Guidance Range US$ MM $52.10 $41.60 $30.10 $32.60 $17.60 Net Revenue $71.40 $ $ $97.20 Decline: 9.5% $24.10 $21.90 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 2Q16 2Q17 Course enrollments: 651,000 in 2QFY17, up 9.8% YoY Net loss: $2.4 million in 2QFY17 Non-GAAP net loss: $1.9 million in 2QFY17 Operating cash inflow: $11.3 million in 2QFY17 Cash receipts from online course registration Up 24.7% to $35.0 million in 2QFY17 Cash balance as of March 31, 2017: $99.6 million 4 4

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6 Accounting Courses CPA 2Q FY17 APQE 2Q FY17 Enrollments -11.0% Enrollments 18.6% Average Student Payment (ASP) 6.2% Average Student Payment (ASP) 26.3% Accounting Continuing Education 2Q FY17 Other Accounting Test- Preparation Courses 2Q FY17 Enrollments 7.0% Enrollments -37.3% Average Student Payment (ASP) -16.7% Average Student Payment (ASP) 99.2% 6 6

7 Non-Accounting Courses Healthcare and Engineering & Construction ( E&C ) Healthcare Test Preparation Enrollments up 8.2% YoY in 2QFY17 ASP up 12.7% YoY in 2QFY17 E&C Test Preparation Enrollments down 17.9% YoY in 2QFY17 ASP up 14.6% YoY in 2QFY17 E&C Continuing Education Enrollments up 67.3% YoY in 2QFY17 ASP down 9.1% YoY in 2QFY17 7 7

8 Achievements and Goals Focusing on Strategic Initiatives, Reinforcing Leadership in Online Education Market Increasing enrollments in existing courses In 2QFY17, total course enrollments reached 651,000, an increase of 9.8% from the second quarter of fiscal As a result, we achieved $35.0 million of cash receipts from online course registration in 2QFY17, a yearover-year increase of 31.3%, excluding the impact of the Renminbi depreciation against the U.S. Dollar. Expanding course offerings in existing verticals and offering new courses in high-demand subject areas Introduced employment guidance services for accounting professionals, which bundle accounting practical skills training and employment guidance services. Further enhancing our educational delivery capabilities through innovation The 2QFY17 average number of daily active mobile users in our accounting vertical was up 21% year-overyear. Offered 62 mobile applications with cumulative downloads of 19.9 million as of March 31, Expanding into the large and growing college market through our College Cooperation Program Expanded the number of participating colleges to 399; Continue to develop our student internship program, as we build-out our network of small businesses seeking student interns. Recent success in bundling accounting practical skills training and employment guidance services bodes well for College Cooperation Program 8 8

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10 Select Income Statement Items (Unaudited) 2Q FY2017 Income Statement Summary (US$ in Thousands, except per ADS data) Net revenues: 2Q FY16 2Q FY17 YoY Change% Online education services 19,003 16,869 (11.2%) Books and reference materials 1,581 1,276 (19.2%) Others including in-person training 3,563 3, % Total net revenues 24,147 21,858 (9.5%) Cost of sales (10,413) (11,797) 13.3% Gross profit 13,734 10,061 (26.7%) Gross margin 56.9% 46.0% bps Operating expenses: Selling expenses (5,246) (8,432) 60.7% General and administrative expenses (3,870) (4,648 ) 20.1% Total operating expenses (9,116) (13,080) 43.5% Operating Income/(loss) 4,631 (2,069) - Income tax benefit/(expense) (706) Net income/(loss) attributable to CDEL 2,544 (2,413)

11 Selected Cash Flow Items (Unaudited) 2Q FY2017 (US$ in Millions) 2Q FY16 2Q FY17 Net Operating Cash Inflow (Outflow) The inflow in 2QFY17 was due to: Cash receipts from online course registration generated in the second quarter of fiscal Partially offset by the increase in prepayment and other current assets, and decrease in accrued expenses and other liabilities, and income tax payable

12 Selected Balance Sheet Items (Unaudited) 2Q FY2017 Assets September 30, 2016 March 31, 2017 Change % Cash and Cash Equivalents, Term Deposits and Restricted Cash % Receivables (9.7)% Inventories % Net PP&E % Other Assets % Total % Liabilities and Shareholders Equity September 30, 2016 March 31, 2017 Change % Accrued Expenses and Other Liabilities (0.7)% Deferred Revenues, current portion % Refundable Fees (77.3)% Bank Debt % Dividend Payable Total Shareholder's Equity % Total %

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14 Third Quarter Fiscal Year 2017 Guidance 3QFY17 net revenue expected range: US$30.8 million $32.3 million, 0% - 5% year-over-year increase 14 14