1. CL Educate
Oct 8th, 2012

2. A Story…
1 2

3. A Story…
1

4. A Story…
2

6. What percentage of Indian Children….?

7. Where do you belong?
Brick Wall Temple
Syndrome Perspective
Colored Sugar Water Global Identity for young-at-heart
achievers
A Cobbler Champion’ companion in success
Large Conglomerate Role Model business institution
Coaching Institute Realizing Potential and making
dreams come true

8. Strong Management Team
Satya Narayanan R.  Alumnus, St. Stephen’s and IIM Bangalore
Chairman  Worked with Ranbaxy for a short period of time before setting up CL in 1995
Gautam Puri  Engineer and alumnus, IIM Bangalore
Vice chairman and Managing  Worked with Hindustan Lever, Britannia and VAM Organics before joining CL in 1995
Director
NikhiI Mahajan  Alumnus, Benares Hindu University (Electrical Engineering) and IIM Bangalore
Director, Chief Financial Officer  Has worked in Management Consulting with AF Ferguson
R. Sreenivasan  Alumnus, JNU and IIM Bangalore
Director, Head innovation and  Had successful stints with TCS and Sony Entertainment Television, prior to joining CL
design  Motivation guru
Sujit Bhattacharyya  Alumnus, IIT Kharagpur and IIM Bangalore
Director, Indus World School  Enjoyed successful stints at Telco and Wipro and set up Dharma Systems, a US based software firm
(IWS)
R Shiva Kumar  Alumnus, IIT Madras and IIM Calcutta
Director, Academics  Had a brief stint with HTA before joining CL
Sanjeev Srivastava  Alumnus, DU (Bachelors in Economics and Post Graduation in Sociology)
President, Emerging Business  Worked in the Civil Services and as a core member with the Times, HDFC Bank and Kotak Mahindra
Groups
Sanjay Shivnani  Alumnus, REC (Electrical Engineering) and IIM Lucknow
President, Vocational  Has spent several years working at 3M India in the sales and marketing functions
The driving force behind CL – Highly qualified and experienced management team supported by a strong
team of level 2 managers

9. CL Educate

10. Business Overview

11. CL Educate – Ideal Platform in the $80bn Indian Education Market
Premium Brand created Highly Competent
Highly Attractive Industry Diversified Platform and Robust Business Model
through Differentiated Management Team and
with Long-term Growth Offering Mix Covers 80% with Strong Operational
Value Proposition and Robust Governance
Drivers of the Addressable Market Track Record
Consistent Innovation Structure
 Large but nascent market  Services: Presence  Differentiated  80,000+ students served One of the most
with strong growth drivers across the student pedagogical approach annually experienced management
 Attractive demographics - lifecycle and learning that is focused on  Consistently ranked as teams in the Indian
~62% of Indian needs student outcomes the #1 MBA and Law education sector
population in the 0-30  Products: Credible  Allows company to test preparation  Graduated from
years age group offerings across verticals command premium in franchise India’s top universities
 Severely undersupplied through an unmatched the market  Realized 16% annual such as IIMs and IITs
market - ~3% of GDP product portfolio of 20  Credible offerings growth in revenues over Close-knit team that has
spent on education vs products across verticals through the past 5 years stayed together since
~6% in developed
 Geography: Pan-India an unmatched portfolio  Capital-efficient hybrid inception in 1995
economies
presence: through [175]+ of 20 products model (tailored by Strong corporate
 Inefficient and low quality centers and [21] K-12  Highly evolved and vertical) and integration governance structure with
public education system schools proven content with technology allows well-regarded independent
creating supply gaps in K-
12 schools and skill  Customers: B2C developed over 15 years for scalability while board members
development space (Business to Consumer),  Holistic approach to lowering capital intensity Backed by marquee
B2B (Business to quality resulting in high  Tangible synergies investors such as Gaja
 Inelastic demand for Business) and B2G
private education driven parent and student across verticals by Capital, Granite Capital and
(Business to satisfaction sharing managerial HDFC
by long-standing
Government) models expertise, infrastructure
perception of quality
and resources
 Self-pay market mitigates
funding risk
__________________
Source: Company information, industry research.

12. Industry and Regulatory Landscape

13. Highly Attractive Market with Long-term Growth Drivers
(mn)
 Largest school aged
400 320 320 population globally
Favorable 100 90
Demographic
200 100 110
13  World’s largest working
120 120 20
5
Trends 0 age population drives need
India China US UK for skilling solutions
15-19 20-24 25-29
(% of 2010 GDP Spend)  Inadequate public and
8%
6% 6% 5%
private sector investment
5%
$80bn 4%
4% 3% in education
Supply-side
market with Constraints 0%
 Poor quality of public
Fundamental North Western Middle East Sub- China India offerings further reduces
America Europe Saharan effective supply
long-term Africa
Growth (% of students attending private schools)  Long history of private
Drivers 40% education and association
24% 22% 24%
Growing Demand 21% 17% 19% with higher quality
20% 13% 9%
for 8%
 Decreasing price sensitivity
Private 0%
Education Primary Middle Secondary and Higher as quality of education
Secondary assumes significant
1996 2008 2012
importance
Share of Public Sector in education spend (%)
 Relatively light regulatory
70%
restrictions in multiple verticals
Limited 68%
Regulatory and 65%  Greater recognition of the need
Funding 63% for private sector leading to a
Restrictions
60% supportive policy environment
FY FY FY FY FY FY FY FY FY FY FY
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011  Private-pay model mitigates
funding risk
__________________
Source: Industry Research.

14. Structure of the Indian Education Market

15. Structure of the Indian Education Market
Formal sector to see large investments as the currently low GERs represent a huge opportunity

16. High demand for test preparation…..
2% 33% NA 4% 0.2% 2% 4% 10% 13% 7% NA NA
Although IITs and AIEEE have significantly
2,000
For example, only 1 out of 150 applicants increased capacity in the past 5
In ‘000
get admission into the elite Indian Institute years, there are still 40-50 applicants per
of Management (IIMs) compared to a ratio spot, versus 10 applicants per spot at MIT
Very few seats at Institutes / colleges are
of 1:11 for Wharton in the US in the US available compared to the number of students
taking the entrance examinations…
1,000
500 472
300 350
205 180 200
100 35 40 60
5 20 1 10 5 1 15 21 NA
NA NA
CAT/XAT MAT/Others CA/CPT Bank PO CSAT IIT JEE AIEEE State - BBA/HM Law GMAT GRE
Engineering
Source: Press Release for each exam.
Based on 2010 Data Seats Available Aspirants Success Rate
Leading to a robust growth in the test preparation industry… 14
Test preparation and training industry is expected to
136 grow at a CAGR of 16% (FY10P-13P) on account of:
8
 Shortage of quality education institutes
INR bn
5 60
 Inadequate level of teaching in the formal
29 education system
407
285  Low capital requirements and higher returns
211
2006-07 2009-10P 2012-13P
Curriculum based coaching Graduation test prep Postgraduation test prep
Source: Company estimates, Research reports

17. Along with changing dynamics of the industry….
Along with changing dynamics of the industry….
2011 – industry structure 2015 – industry structure
MBA: 3 national players account MBA
MBA
for more than 85 % of market Law
Law: With one single IAS
exam, market is highly IAS, Law, MBA
Law along with other
concentrated, with CL
Concentration of market
Concentration of market
having significant market aptitude based
share tests, will become
national, online and
Engineering: the market will get
Engineering: Highly Along with concentrated in the
fragmented with more other hands of few
Engg. than 12-15 large players; knowledge players
Engg.
biggest player with <2% based tests,
market share will remain It is expected that
fragmented Engg will also
slowly move
towards aptitude
based test
IAS IAS: Fragmented market with
no significant player
Knowledge based tests Aptitude based tests
Evolution of market Evolution of market
Tectonic Shift
Aptitude test to replace preliminary examination in 1st stage New JEE pattern to include an aptitude test for the exam
for Civil Services Examination from 2013
Will benefit players like CL as more exams move towards aptitude based

18. Vocational training – addressing the “skilled manpower” gap
Vocational training – a large opportunity With high skilled manpower demand expected
Indian vocational training services market expected to be a US$3.6bn market by CAGR 58.2% 3.8% 19.8% 8.0% 14.6%
2012 (As per IDFC SSKI research report) 176
Manpower (#, in mn)
Majority of educated Indians (graduates & post graduates) are unemployable due
to lack of technical education
CL’s target sectors for B2B
 Countries like Korea, Germany and UK have 96%, 75%and 68% vocationally offerings
trained workforce respectively 60
43
As per a recent report, out of 100 graduates only 10 were found employable
16 9
(Source: UNESCO, Indian Planning Commission paper) 3 3 4 2 8
Retail Tourism Healthcare BFSI IT/ITeS
Note: *National Sample Survey Organization, Vision 2020 Source: NSDC, Vision 2020 2008 2022E
And significant government focus Key players
Government has set a goal of training 500 mn people
Various schemes have been launched at center and state levels for
training people
NSDC is targeting to train 150 mn people by 2022 with funding
requirement of upto INR 150 bn; equity of INR 10 bn mn has already
been infused by the government
Various state governments together have annual budget of INR 50 bn
for skill training purposes

19. Kaplan - The Journey (1995-2004-2011)
From a small test prep company, to being a pioneer in online higher education, K12 and professional training
1995 2004 2011 3%
10%
7%
28%
14% 47%
57%
100% 12%
22%
~ $ 89 Mn $ 1,135.9 $ 2,465.0
Mn Mn
Test Prep HE TP PT Score! International HE TP International Ventures
• Founded in 1938, • $1 billion in revenue in 2004, • ~500 locations in more than 30
• Acquired by The Washington Post • Around 400 centres across countries
Company (1984) USA, Canada, South • # Enrollments ~750,000
• 150 centres across America, Europe, Australia and • Washington Post Company -
USA, Canada, Puerto Rico and Asia “education and media company”
London (UK) • # Enrollments ~ 5,00,000
• # Enrollments ~ 1,35,000
Initial Foundation Continued Diversification Redefined Higher Education Landscape
(1938-1995) (1996 – 2004) (2005-2011)
Source: The Washington Post Company Annual Reports and Press Releases

20. CL Educate - The Journey (2006-2012-2015)
From a humble beginning, to being a credible brand name having strong platform and well diversified business model
16%
7%
2006 0.05% 2012 2015 (P)
10%
33%
11%
44%
39%
99.95%
40%
INR 5,387 lakhs INR 18,467 lakhs INR 37,975 lakhs
Test Prep K-12 Test Prep Voc. & FE CL Media K-12 Test Prep Voc. & FE CL Media K-12
Key Milestones
• Career Launcher India Ltd. • 1st franchisee • Acquisitions for entry into • Buy-back of Intel • Launch of Employability Training;
founded; started with a PDP center in CET, Engineering and Law Test Capital acquired Kestone to strengthen
program for CAT aspirants Modinagar Preparation training; agreement with Government
of Rajasthan under Rajasthan Mission
• Acquired KITS (2000), ARC and of Livelihood (“RMoL”)
LST (2004) respectively
1995 1997–1998 1999 2000 2000–2004 2005 2006 2007 2008–2010 2011
• Pegasus – first product for CAT • Investment by Intel • Foray into K-12, Higher • Investment by Gaja • HDFC takes a
launched Capital Education and Vocational Capital in CL stake in K-12
training business
• Extended into other domains
with Magic Lamp (BBA/Hotel/ • 1st Indus World School (“IWS”)
Law/Fashion) opened in Hyderabad

21. One of India’s leading Education Services Player
A Credible Brand Name… …having strong platform and well diversified business model..
• Founded in 1995 by alumnus of IIM –B • Unique educational platform given its vast presence and captive
• Superior track record in delivering strong student outcomes and network of highly experienced franchisees
one of the most respected education brands in India
• Diversified from test prep company to a full service education
• A market leader in test prep; current offerings include
company
• Test prep and training services
• Growing “institutional ” service offerings
• Education publication
• Vocational and employability training & Further Education
• K-12 schools
• Backed by Gaja Capital and HDFC Limited
…With a Pan India presence… …and Quality Management Team at helm
• Led by one of India’s most talented and entrepreneurial
education management teams
• One of the most stable Management team together for close to
12 years
• Track record of introducing new products, entering new cities
and expanding into new businesses rapidly
• A team with over 100+ individuals from IIT’s / IIM’s and other
Test Prep leading institutions
Vocational
K-12 Schools

22. Favorable Industry Dynamics
Presence in attractive segments
Test preparation & Training, Media and Publishing Vocational Training & Further Education
• Over 2 million students take exams every year • Indian workforce currently stands at 460 million
• More than 7000 private engineering colleges • Largely untrained and unorganized
• 4000 business schools • Only 25% of fresh graduates are employable
• More than 300 private medical colleges
• Estimated market size $4 bn in FY12 and growing at a CAGR of
• Estimated market size $3 bn in FY12 24% (FY08-12)
• Publishing Business over $ 2 Billion in FY 12
 High ROI  Huge untapped potential
 Low Capex requirement  Opportunity to partner with leading corporates
K12 Education
 School going population of India increasing by 20 million every
year
 Government schools suffer from poor quality infrastructure
 Increasing disposable income enhances propensity to spend on
education
 Estimated market size of $34 bn in FY12 and growing at a
CAGR of 14% (FY08-12)
Huge demand‐supply gap: 20,000 – 25,000 new K12 schools
required annually for urban middle class
Government’s initiative to push for PPP in K-12 seen as a
potential game changer

23. ePravaal
CL Educate powered by technology – The schools interacting and engaging

24. Congratulations ! Indus World School

25. Our Scores

26. Who are we looking for
• Fire in the belly • Entrepreneurial
• Fearlessness • Tech in education
• Future anchored • New media
• Questioning • Teaching and
status-quo facilitating

27. Model
• Entrepreneurial progression:
– Many who are entrepreneurial have taken their entrepreneurial dreams
to greater heights being part of CL, by merging
• Eg: Law school entrance - Sachin Malhan;
– Over a hundred have started their own enterprises, over time, after
being part of CL
• Eg: Sports portal - Arjun Wadhwa
• Intrapreneurial Progression:
– Started with CL as a management trainee, been there for a few years
then moved out to other corporate
• Eg: Adi - Google Asia HR head… many many more..
• Interns
– Those who have done short stints with CL, across any of the verticals
• Eg: Rahul Govind - IIM grad, went on to do his Ph.D in the US, and is a Mktg Prof in
an IVY league B-school

28. Thank You
http://www.cleducate.com/