Investor Relations 2013
description
Transcript of Investor Relations 2013
www.megastudy.net
Investor Relations2013
ENG133Q_131108
www.megastudy.net
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Contents
1. Business Sectors
2. Business Expansion
3. Education System
4. Business Model
5. Membership & Sales in Online
6. Offline Infrastructure
7. High Loyalty & Entry Barrier
8. Educational expenditure
9. Growth & Market Size
10. Sales Breakdown
11. 2012 FY Performance
12. Guidance for 2013 Consolidated Performance
13. 2013 3Q Performance
14. 2013 3Q Accumulated Performance
15. Consolidated I/S & B/S Summary
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Business Sectors
Megastudy Subsidiaries
▪ High School(on) : www.megastudy.net - provide online lectures for high school students and re-takers Korean SAT - Main Contents GPA Essay & Interview
▪ High School (off) : developing contents / producing contents - running 9 offline schools in Seoul & Near Seoul Korean SAT - Main Contents GPA Essay & Interview
▪ Middle School(on) : www.mbest.co.kr
- provide online lectures on term-based courses
- hiring administrators for each student to communicate their
academic improvement with students and parents by phone
or e-mail
▪ MegaMD (65%) : www.megamd.co.kr / www.megaut.com - provide lectures for special graduate school entrance exam (Medical, Dental, Pharmaceutical, and Law) - provide contents for University transfer exam (Merged with MegaUT, Jun 1st. 2013)
▪ IvyKimyoung (46%) : www.kimyoung.co.kr - provide contents for University transfer exam
▪ MegaFood&Service (60%) - operating food service company for students and employees
▪ MegaBooks (100%) - publishing learning materials and textbook supplementary
▪ HyungsulEdu (100%) - took over offline school in 2009 and currently operating them just like other offline institutions of Megastudy
▪ IL Deung Law School (MegaMD: 90%) - provide lectures for law school entrance exam
▪ SE Global (MegaMD: 50%) www.megacst.com - provide lectures for police employment test
▪ Megastudy Forever Joint Stock Company (62%) - running offline schools in Hanoi, Vietnam
▪ Plus Edu Co., LTD (M.F.J.S.C: 100%) - running offline schools(2rd) in Hanoi, Vietnam
▪ MegaInvestment (99%) - established investment company, searching for the new growth engine
▪ MegaNext (37%) : www.megahrd.co.kr - provide job related contents and English contents
Megastudy
6 months : KRW 760,00012 months: KRW 1,280,000
GPA Special courses for elite-high school
- Price
- Main Contents
www.megastudy.net
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Business Expansion
High school online
High school offline
Mbest Mbest Merged (Middle school online)
MegaMD
MegaBooks
MegaNext
Megastudy Forever Joint Stock Company
On Off Captive market
Adult & College
MegaMD (Merged with MegaUT)IvyKimyoung
MegaNext SEGlobal
x
High SchoolMegastudy-on Megastudy-off
HyungsulEdu MegaBooksMegaF&S
Middle School Mbest X
Elementary School Mjunior X x
Kindergarten x X x
Overseas
Megastudy China Ltd
(China)
Megastudy Forever Joint Stock Company
Plus Edu Co., LTD(Vietnam)
x
IvyKimyoung
MegaFood&Service
Horizontal Expanding
MegaUT
Hyungsul Edu
Vertical Expanding
ILDeung Law school
MegaInvestment
Plus Edu Co., LTD
SEGlobal
2000 2001 20032002 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Merged with MagaMD(Jun 1st. 2013)
www.megastudy.net
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Education System
■ Education System
- Elementary ……. 6yrs (Age. 8 ~ 13)
- Middle School…. 3yrs (Age.14 ~ 16)
- High School……. 3yrs (Age.16 ~ 19)
- Undergraduate School
- Graduate School
Re-takers
UniversityHigh School Applying for University
▪ Re-takers : students who wish to take KSAT exam once more
2 WAYS
■ University Entrance Exam
KSAT- National standardize examination- Once a year (3rd week of Nov.)
GPA - Academic performance records in high school
UniversitySpecific Require-
ment
- Essay writing style- Interview- Knowledge based test
▪ Early Application : GPA + KSAT + University Specific Requirement (Essay writing / Interview / Language, Math, Science expertise, etc)
▪ Regular Application : GPA + KSAT + University Specific Requirement (Essay writing / Interview)
www.megastudy.net
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Business Model
■ Megastudy Offline ■ Megastudy Online
- Single subject class - 2~3 months (1,000 min.) - 10 ~ 15 Chapters - VOD type service
FilmingEditing
Uploading
■ Lecturers
▪ No. of lecturers in high school offline & online
■ Virtuous Cycle
Increase traffic
Tighten up on keen competition
Outcome of superb contents
Tighten upon keen com-
petition
On : 23%Off : 50%
\ 190,000 \ 65,000
- Single subject class - 2 months (8weeks)- 2~3hrs / week- 16 ~20 hrs
▪ Contract with lecturers on the commission basisOutcome of superb con-
tents
1/3
Offline(510)
Popular lecturesExpert lecturers
Online(110)
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Membership & Sales in Online■ Penetration (2012) ■ High School Online Sales Trend
■ Middle School Online Sales Trend
Hig
h Sc
hool
Mid
dle
Scho
ol
■ Penetration (2012)
(unit: thousand) Registered Members
Paid Subscribers
Grade No. No. % No. %
Gr. 10 644 82 13% 33 5%
Gr.11 644 148 23% 53 8%
Gr.12 632 220 32% 90 14%
Re-takers 200 193 97% 96 48%
Total 2,120 643 30% 272 13%
(unit: thousand) Registered Members
Paid Subscribers
Grade No. No. % No. %
Gr. 7 596 58 10% 25 4%
Gr.8 613 85 14% 29 5%
Gr.9 640 106 17% 28 4%
Others (945) (39)
Total 1,849 249 13% 82 4%
‘07 ‘08 ‘09 ‘10 ‘11 ‘12
Online Sales (billion won) 23.8 34.6 44.6 52.9 53.1 43.8
Subscribers (thou-sand) 354 582 766 954 1,116 1,240
Paid Subscribers (thousand) 77 102 132 149 147 121
Sales per paid sub-scribers(thousand won)
310 338 338 356 361 361
Weight of No. ofTerm-Based Course 28% 33% 33% 35% 37% 39%
Weight of Sales ofTerm-Based Course 62% 68% 69% 72% 74% 74%
‘07 ‘08 ‘09 ‘10 ‘11 ‘12
Online Sales (bil-lion won) 73.8 91.2 109.2 103.5 99.7 68.7
Subscribers (thou-sand) 1,799 2,123 2,498 2,799 3,065 3,264
Paid Subscribers (thousand) 310 351 396 375 345 272
No. of lectures bought (thousand)
1,242 1,414 1,631 1,466 1,291 940
Sales per paid sub-scriber (thousand won)
238 260 276 276 289 252
www.megastudy.net
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Offline Infrastructure
Seoul
Yangji boarding school
Seocho Megastudy
Shinchon Megastudy
Kangbook Megastudy Norayngjin Megastudy
Gwangju boarding school
Namyangju boarding school
Kangnam Megastudy
▪ Launched in 2003▪ High school & Re-takers▪ Single Subject Class : 7,000▪ Re-takers Class : 1,050
▪ Launched in 2006▪ Re-takers▪ Capacity : 200
▪ Launched in 2004▪ High school & Re-takers▪ Single Subject Class : 12,000▪ Re-takers Class : 900
▪ Launched in 2008▪ Re-takers▪ Capacity : 500
▪ Launched in 2008▪ High school & Re-takers▪ Single Subject Class : 1,000▪ Re-takers Class : 700
▪ Launched in 2005▪ High school & Re-takers▪ Single Subject Class : 14,000 ▪ Re-takers Class : 700
▪ Launched in 2004▪ High school & Re-takers▪ Single Subject Class : 4,000▪ Re-takers Class : 1,000
▪ Launched in 2010▪ Re-takers▪ Capacity : 750
▪ Launched in 2011▪ High school & Re-takers▪ Capacity : 940
Pyungchon school
www.megastudy.net
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High Loyalty & Entry Barrier
■ Target marketing- 5 ~ 6 times per year- College admission convention- generated educational culture- giving out the useful information about the University admission (eg. Scoring service, College application service, etc.)
■ High Entry Barrier
Membership
Offline insti-tution
Contents(Lectures)
- Tighten up on the keen competition among offline lecturers produce outcome of superb contents - Offline institution is the place where the high quality of contents can be produced
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Educational expenditure■ Education expenditure of householder■ Education expenditure of OECD countries
▪ Spending by households on total education and private education rose by 7.1% and 12.0% p.a respectively for past 10 years.
< % of GDP >
Korea US Canada Australia Portugal Spain New Zea-land
Japan0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
2.9 2.4
1.7 1.6
0.4 0.5
1.3 1.7
4.5 5.0
4.8
4.1
5.1
4.2
5.0
3.3
Public Private
'82
'83
'84
'85
'86
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96
'97
'98
'99
'00
'01
'02
'03
'04
'05
'06
'07
'08
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0 % of Education
Public Education
Private Education
(%)(million won)
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2009 2010 2011 20120 5
10 15 20 25 30 35 40 45 50
8.7bn
21.7bn
33.3bn
47.0bn
Growth & Market Size
■ Special graduate school entrance exam market
■ University transfer entrance exam market
< Sales Trend of MegaMD>
▪ MegaMD is recording notable achievement and generated 47.0bn KRW sales based on the successful performances in four different business profit centers.
- Megastudy invested 4.3bn in 2010 to acquire “High Top” company to expand business into University transfer entrance exam market and re-named that company to MegaUT.
- In addition, Megastudy completed IvyKimyoung’s acquisition in June of 2011 to be attained the dominant player within a short period of time in UT market.
- IvyKimyoung company was known as no.1 education company in Uni-versity transfer exam education market.
- Total acquisition price was 18.7 bn won.- Total equity holding of IvyKimyoung is approximately 78%. ▪ Megastudy 46 % ▪ MegaMD 12 % ▪ Mgmt. of MegaMD & Megastudy 20 %
PEET 40.0 bn
MEET/DEET30.0 bn
LEET5.5 bn
MegaMD’sM/S : 65%
MegaMD’sM/S : 75%
< 2011 total number of student recruiting >
(billion won)
Ordinary Bachelor's degree Total
Regular 8,825 5,575 14,400
Fine Arts 498 280 778
Medical/DentalOriental/Veterinary 148 - 148
Total 9,471 5,855 15,326
MegaMD’sM/S : 50%
▪ Total size of special graduate entrance exam market is estimated by 75.5 bn KRW
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9.8%90.2%
14.9%85.1%
25.4%
74.6%
33.3%
66.7%
2009 2010 2011 2012 2013(E)
Unit : Billion Won
2009 2010 2011 2012 2013(E)
Megastudy 238.3 245.0 263.1 226.7 210.0
Hi(On)Mi(On)Hi(Off)Etc.
129.948.0 56.7 3.7
122.656.9
62.2 3.3
122.356.5
81.2 3.1
86.246.490.7
3.4
74.437.195.03.5
Subsidiaries 25.8 42.9 89.6 113.0 129.0
MegaMDIvyKimyoungMegaFood&ServiceMegaBooksMegaUTHyungsulEduMegaNextILDeung LawschoolM.F.J.S.C(Vietnam)
8.7 - - 11.0 - 5.5 0.6 - -
21.4 - 0.1 12.7 - 4.2 2.6 1.8 0.1
33.3 21.2 12.3
12.0 3.9 3.2 1.1 2.4 0.2
47.029.416.311.63.92.5
-2.00.3
55.029.018.116.35.02.7
-2.30.6
Internal Transaction - (4.4) (9.0) (11.7) (12.0)
Total 264.1 283.5 343.7 327.9 327.0
38.1%
61.9%
Sales Breakdown
MegastudySubsidiaries
Megastudy
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2011 FY 2012 FY Growth
Sales OP OPM Sales OP OPM Sales OP
Consolidate 343.7 81.6 23.8% 327.9 58.2 17.8% -4.6% -28.6%
Megastudy 263.1 75.9 28.9% 226.7 50.5 22.3% -13.8% -33.4%
Hi(On)Mi(On)Hi(Off)
Other
122.3
56.5
81.2
3.1
54.5
14.3
6.4
0.7
44.6%
25.2%
7.9%
23.9%
86.2
46.4
90.7
3.4
33.6
8.8
6.8
1.3
39.0%
19.0%
7.5%
38.3%
-29.5%
-17.8%
11.7%
8.4%
-38.3%
-38.0%
5.4%
73.4%
Subsidiaries 89.6 6.0 6.7% 113.0 8.1 7.2% 26.2% 36.1%
MegaMD 33.3 5.7 17.0% 47.0 10.1 21.5% 40.9% 78.1%
IvyKimyoung 21.2 3.0 14.2% 29.4 -1.1 -3.6% 38.7% Deficit
MegaFood&Service 12.3 0.5 4.3% 16.3 1.6 9.6% 32.8% 200.6%
MegaBooks 12.0 -0.3 -2.2% 11.6 -1.0 -8.3% -3.2% Deficit
MegaUT 3.9 -2.1 -55.0% 3.9 -0.3 -7.6% 0.9% Deficit
HyungsulEdu 3.2 0 -0.6% 2.5 -0.1 -5.4% -20.0% Deficit
MegaNext 1.1 -0.6 -49.2%
IldeungLawschool 2.4 0.1 4.6% 2.0 -0.2 -8.4% -18.5% Deficit
SEGlobal -0.0
M.F.J.S.C(Vietnam1) 0.2 -0.4 -189.2% 0.3 -0.3 -77.0% 65.5% Deficit
Plus Edu(Vietnam2) 0.0 -0.0 -660.6%
MegaInvestment -0.7
Internal Transaction -9.0 -0.2 -11.7 -0.4
2012 FY PerformanceUnit : billion won
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Guidance for 2013 consolidated performance
12FY 13FY(E) YOY
Sales OP OPM Sales OP OPM Sales(G) OP(G)
Consolidated 327.9 58.2 17.8% 327.0 56.5 17.3% -0.3% -3.0%
Megastudy 226.7 50.5 22.3% 210.0 41.5 19.8% -7.4% -17.9%
Hi(On)Mi(On)Hi(Off)Other
86.2 46.4 90.7
3.4
33.6 8.8 6.8 1.3
39.0%19.0%7.5%
38.3%
74.4 37.1 95.0
3.5
23.6 4.3
12.3 1.3
31.7%11.6%12.9%37.1%
-13.7%-20.1%
4.7%4.3%
-29.9%-51.3%81.7%
1.2%
Subsidiaries 113.0 8.1 7.2% 129.0 15.4 11.9% 14.2% 89.9%
MegaMD 47.0 10.1 21.5% 55.0 14.0 25.5% 17.1% 38.7%
IvyKimyoung 29.4 -1.1 -3.6% 29.0 1.8 6.2% -1.3% Surplus
MegaFood&Service 16.3 1.6 9.6% 18.1 1.3 7.2% 11.0% -17.2%
MegaBooks 11.6 -1.0 -8.3% 16.3 -0.6 -3.7% 40.4% Deficit
MegaUT 3.9 -0.3 -7.6% 5.0 0.2 4.0% 28.7% Surplus
HyungsulEdu 2.5 -0.1 -5.4% 2.7 0.0 0.0% 6.1% Surplus
ILDeung Lawschool 2.0 -0.2 -8.4% 2.3 0.0 0.0% 16.9% Surplus
M.F.J.S.C (Vietnam) 0.3 -0.3 -77.0% 0.6 -0.2 -33.3% 80.4% Deficit
Internal Transaction -11.7 -0.4 -12.0 -0.4
Unit : billion won
www.megastudy.net
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12 3Q 13 3Q Growth
Sales OP OPM Sales OP OPM Sales OP
Consolidate 93.1 24.2 25.9% 90.3 21.2 23.5% -3.0% -12.3%
Megastudy 66.7 20.3 30.5% 59.6 16.0 26.9% -10.7% -21.1%
Hi(On) 24.8 11.1 44.8% 20.5 7.5 36.4% -17.4% -32.9%
Mi(On) 12.1 2.9 24.1% 8.3 1.0 12.6% -31.4% -64.3%
Hi(Off) 28.6 5.8 20.2% 30.5 7.3 23.8% 6.5% 26.1%
Other 1.1 0.5 44.3% 0.2 0.2 100.0% -77.8% -49.9%
Subsidiaries 29.6 4.0 13.4% 34.1 5.3 15.4% 15.2% 33.3%
MegaMD 10.8 2.3 21.7% 14.5 3.0 21.1% 33.9% 30.0%
IvyKimyoung 9.3 1.4 14.7% 7.7 1.4 18.0% -17.2% 1.8%
MegaFood&Service 4.8 0.5 11.3% 5.5 1.0 17.8% 14.2% 79.3%
MegaBooks 2.4 0.0 1.2% 5.0 0.3 5.9% 109.4% 965.6%
MegaUT 1.2 0.0 3.0%
HyungsulEdu 0.6 -0.0 -2.7% 0.2 -0.1 -53.7% -75.6% Deficit
IldeungLawschool 0.4 -0.1 -14.7% 0.9 0.3 30.3% 100.2% Surplus
SEGlobal 0.3 -0.4 -121.5%
M.F.J.S.C(Vietnam1) 0.0 -0.1 -183.1% 0.1 -0.1 -105.1% 33.3% Deficit
Plus Edu(Vietnam2) 0.0 -0.0 -107.4%
MegaInvestment -0.2 0.1 -0.1
Internal Transaction -3.2 -0.1 -3.4 -0.1
2013 3Q PerformanceUnit : billion won
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12 3Q Acc. 13 3Q Acc. Growth
Sales OP OPM Sales OP OPM Sales OP
Consolidate 266.2 59.0 22.2% 258.2 54.2 21.0% -3.0% -8.2%
Megastudy 184.8 46.8 25.3% 167.6 39.8 23.7% -9.3% -15.0%
Hi(On) 68.2 27.6 40.4% 57.8 20.2 34.9% -15.3% -26.8%
Mi(On) 35.9 7.8 21.6% 26.7 3.1 11.6% -25.5% -60.1%
Hi(Off) 77.8 10.3 13.2% 82.3 15.9 19.3% 5.8% 54.5%
Other 2.8 1.2 42.0% 0.8 0.6 80.4% -72.5% -47.3%
Subsidiaries 91.1 12.5 13.7% 101.2 14.7 14.5% 11.0% 17.7%
MegaMD 40.3 12.5 31.1% 50.2 14.3 28.5% 24.4% 14.2%
IvyKimyoung 21.0 -1.1 -5.3% 16.9 -0.9 -5.2% -19.7% Deficit
MegaFood&Service 13.6 1.4 10.6% 15.5 2.5 16.4% 14.3% 75.6%
MegaBooks 9.3 0.5 5.1% 12.7 0.6 5.0% 36.6% 33.3%
MegaUT 2.7 -0.3 -12.7% 1.3 -0.3 -22.5% -52.8% Deficit
HyungsulEdu 2.1 0.0 0.4% 1.3 -0.1 -8.1% -37.7% Deficit
IldeungLawschool 1.8 0.1 4.0% 2.4 0.6 24.0% 31.3% 688.7%
SEGlobal 0.6 -1.3 -227.9%
M.F.J.S.C(Vietnam1) 0.3 -0.2 -68.2% 0.3 -0.2 -71.5% 5.9% Deficit
Plus Edu(Vietnam2) 0.0 -0.0 -117.4%
MegaInvestment -0.4 0.1 -0.6
Internal Transaction -9.7 -0.3 -10.6 -0.3
2013 3Q Accumulated PerformanceUnit : billion won
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Consolidated I/S & B/S Summary
Unit : billion won
3Q
12 3Q 13 3Q YOY
Sales 93.1 90.3 -3.0%
COGS 34.8 34.0 -2.2%
S&A expense 34.1 35.1 2.8%
Operating Profit 24.2 21.2 -12.3%
OPm (%) 25.9% 23.5%
Financial Income 2.3 1.8 -23.5%
Financial Exp. 0.0 0.1
G/L on Investment of Sub-sidiaries 0.3 -0.2
Other Operating Income 0.8 0.1 -87.8%
Other Operating Exp. 0.0 0.2 744.3%
Profit before tax 27.5 22.6 -17.8%
Income tax expense 6.3 5.0 -20.4%
Net Profit 21.2 17.6 -17.1%
NPm (%) 22.8% 19.5%
Profit, attributable to owners of parent 19.7 15.9 -18.9%
Margin (%) 21.1% 17.6%
Unit : billion won
12 FY 13 3Q
Total Assets 465.3 479.8
Current assets 209.9 196.4
Non-Current assets 255.4 283.4
Total Liabilities 95.1 81.2
Current Liabilities 82.1 69.2
Non-Current Liabilities 13.0 12.0
Total Shareholder's Equity 370.1 398.6
Paid-in capital 3.2 3.2
Capital Surplus 8.3 8.1
Capital Adjustment 0.4 -0.2
Retained Earnings 346.7 370.2
Non-Controlling S/H 11.5 17.3
Total Liabilities & Share-holder’s Equity 465.3 479.8
▪ Consolidated B/S▪ Consolidated I/S