hailiang education group inc.ir.hailiangedu.com/upload/2019/04/01/15540798667512bnl2k.pdf ·...
TRANSCRIPT
Hailiang Education Group Inc.(Nasdaq: HLG)
First Six Months of Fiscal Year 2019 Investor PresentationMarch 2019
DisclaimerThis presentation has been prepared by Hailiang Education Group Inc. (Nasdaq: HLG) (“Hailiang Education” orthe “Company”) solely to facilitate the understanding of the Company’s business model and growth strategy.The information contained in this presentation has not been independently verified. No representation, warrantyor undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy,completeness or correctness of the information or the opinions contained herein. None of the Company or anyof its affiliates, advisers or representatives will be liable (in negligence or otherwise) for any loss howsoeverarising from any use of this presentation or its contents or otherwise arising in connection with the presentation.
This presentation contains forward-looking statements and management may make additional forward-lookingstatements in response to your questions. Such written and oral disclosures are made pursuant to the SafeHarbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-lookingstatements include descriptions regarding the intent, belief or current expectations of the Company or its officerswith respect to its future performance, consolidated results of operations and financial condition. Thesestatements can be identified by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” orwords of similar meaning. Such forward-looking statements are not guarantees of future performance andinvolve risks and uncertainties. Actual results may differ materially from expectations implied by these forward-looking statements as a result of various factors and assumptions. Although we believe our expectationsexpressed in such forward looking statements are reasonable, we cannot assure you that they will be realized,and therefore we refer you to a more detailed discussion of the risks and uncertainties contained in theCompany’s annual report on Form 20-F as well as other documents filed with the Securities & ExchangeCommission. In addition, these forward looking statements are made as of the current date, and the Companydoes not undertake to update forward-looking statements to reflect future events or circumstances, unlessotherwise required by law.
• 24 Years Experience and First Chinese K12 Basic
Education Group listed in the US
• Largest K-12 education and management service
provider in China1
• Sponsors and manages 36 schools with an
aggregate number of 61,146 students2
• Successfully operated China's largest K-12
Hailiang Education Park, covering a site area of
850,000 square meters
• Provide Distinguished, Specialized and Internationalized basic and international
education services
Note 1: In terms of student enrollments as of June 30, 2018, according to the report prepared by Frost&SullivanNote 2: as of December 31, 2018, unless otherwise stated.
About Hailiang Education Group
Hailiang Edcuaion ParkOne of the largest education park in China launched in
September, 2015, composed of 5 schools and has an
total capacity of more than 12,000 students
Listed on NASDAQ under symbol HLG on July 7 ,2015Hailiang Edcuation became the first to be listed on US stock
markets among other primary, middle, and high school educational
services providers in China
Basic Program International Program
• 13 golden Olympiad competition training coaches
• 273 courses including mandatory and elective
0-6 years old > 18 years old
Kindergarten Middle School High School University
Higher Education
K12 Education
Primary School
6-15 years old 15-18 years old
ChildrenEducation
9 Years of Compulsory Education
One-Stop Full Spectrum K-12 Education Services
Art Program
• International accredited courses, A-level, VCE, SAT, IB
• Overseas studying consulting
• Painting, Music and Media• Focus both academic and
professional performance
Sports TrainingStudy Trip Accommodation
Catering Hospital After-school enrichment program
Note: as of December 31, 2018, unless otherwise stated.
Value-add Services
Overseas study consulting
K12
Edu
catio
n S
ervi
ces
Extended Network Domestically and Globally
Pate’s Grammar School
• Foreign language courses, including
Korean, Japanese, Spanish
• Attending Gaokao and acquire an
international certificate
Zhejiang
Jiangxi
Hubei
Shandong
Jiangsu
1 managed school
• Feicheng Hailiang Foreign
Language School
1 affiliated school
• Zhenjiang Jianghe High
School of Art
8 affiliated schools
10 managed schools
• Hailiang Experimental High School
• Tianma Experimental School
• Hailiang Primary School
• Hailiang Junior Middle School
• Hailiang Senior Middle School
• Hailiang High School of Art
• Hailiang Foreign Language School
• Zhuji Hailiang Foreign Language
High School Co., Ltd.
• 5 public and 5 private managed
schools
15 managed schools
• Baishu Education
Group
1 managed schools
• Xiantao No.1
Middle School
Forming Extensive Cooperative Relations With More Than 200 Educational Institutions And Universities Globally
United Kingdom
• A-level and IGCSE
• Founded in 1572
• One of the most historical grammar
school in UK
• One of the best state co-educational
schools
• Top admission rate into Oxford and
Cambridge
Curriculums
United States
Extended network in US• Community Colleges providing
opportunities to students with different
academic backgrounds
• ELS with more than 600 higher
education institutes globally
• American Pathway Program, AP, SAT,
IELTS, TOEFL
Japan, Korea and etc.
Australia
Brighton Grammar School• Founded in 1882
• More than a third of the Class of 2018
obtained an ATAR of 90 or above
• Study trip program
Thomas Carr College• Accredited VCE program
University networks• Corporate with study group to extend
university network in Australia
Note: as of December 31, 2018, unless otherwise stated.
Growth Strategies
Strong Organic and External Growth Driven by Full Education Service Portfolio
Basic Education International Program Managed schools
K12 Education Services Education and Management Services
• Increase average tuition fees• Restructure student structure in basic and international
program• Promote complimentary education services
• Render financial, HR, IT, admissions, logistics and internal audit
• 27 schools as of Dec 31, 2018
Educational Training Services
9.2%of revenue
2.6%of revenue
Study Trip International Study Consulting
4.6%of revenue
Complimentary Education Services 59.8
RMB million30.0
RMB million
54,202 16.949,578
Annualized average tuition (RMB)
9.3%
Enrollments in (number of students)Basic Program International Program
18,03418,747-3.8%
4,5554,06612.0%
Management services fees(RMB million)
Note: as of December 31, 2018, unless otherwise stated.
Investment Highlights
2 Fast Expansion Supported by our Asset-light Approach
3 Distinguished, Specialized, and Internationalized Education Brand
4 Unique Operation Model of Hailiang Education Park
5 Ability to Attract Best-in-class Teachers and Faculty Team
6 Experienced and Visionary Management Team with Proven Track Record
1 Market Leader in the Rapidly Growing K-12 Industry
Growth Strategies
Continue to build our brand and reputation
Expand the network of our affiliated and managed schools across China
Further increase education and management service offerings to create additional value for our schools and to establish a virtual platform to fuel our revenue growth
Strengthen our market leadership by increasing education quality and scale
Further increase enrollment in our international program and broaden our diversified program offerings
Solid Revenue Growth with Optimizing Margin Profiles
(RMB in thousand) FY2016 FY2017 F2018 CAGR FY2018 H1 FY2019 H1 Y-O-Y
Revenue 654,060 853,295 1,169,348 33.7% 502,673 652,715 29.8%
Gross Profit 155,116 204,813 364,674 53.3% 116,561 197,732 69.6%
Gross Margin 23.7% 24.0% 31.2% - 23.2% 30.3% 7.1%
Operating Profit 93,680 160,851 280,450 73.0% 77,715 165,168 112.6%
Operating Margin 14.3% 18.9% 24.0% - 15.5% 25.3% 9.8%
Net Profit 99,432 167,743 230,902 52.4% 77,935 129,582 66.4%
Net Profit Margin 15.2% 19.7% 19.7% - 15.5% 19.9% 4.4%
�������
Ascent Investor Relations LLC
Tina XiaoEmail: [email protected]
Tel: +1-917-609-0333
Address: 733 3rd Avenue 16th Floor, New York, NY 10017, USA
Hailiang Education
Litao QiuEmail: [email protected]
Tel: +86 571 5812-1974
Address: 1508 Binsheng RD, BinjiangDistrict, Hangzhou City, Zhejiang, China
Hailiang Education Group lnc. ®Business