sti education systems holdings, inc. · 2020-02-05 · sti holdings network of schools 2 who we are...

STI Education Systems Holdings, Inc.

Full Year Results ending March 31, 2019 and Second Quarter Results ending September 30, 2019

1

Education for Real Life

STI Holdings Network of Schools

2

Who We Are

83,967 total students

² STI Holdings owns, maintains, and operates the Philippines’ largest, private, for-profit network of educational institutionswith more than 83,000 students enrolled in 69 STI-branded colleges and 7 education centers, one university (STI WestNegros University) and one non-STI branded college (iACADEMY).

² STI ESG offers associate and baccalaureate programs in Information and Communications Technology, Tourism andHospitality, Education, Business Administration, and Communications. STI WNU, for its part, offers basic education andtertiary courses in Engineering, Education, Criminology, Business Administration, Hospitality and Tourism Management,Computer Science and Information Technology, and Maritime Training Courses which are required by the Maritime IndustryAuthority for officers and crew on board Philippine- and/or foreign- registered ships operating in Philippine and/orinternational waters. It also offers post-graduate courses such as Master’s degrees in Business Administration, PublicAdministration, Nursing, and Education, and Doctorate degrees in Public Administration and Educational Management.iACADEMY offers degree programs in animation, multimedia arts and design, fashion design and technology, softwareengineering, game development, web development, marketing management, financial management and real estatemanagement. STI ESG, STI WNU and iACADEMY also offer Senior High School programs.

² STI ESG also has a 20% interest in Maestro Holdings which provides educational saving plans, among others.


STI Holdings Combined Student Enrollment

3

84,730

103,727 105,031

85,797 83,967

-

20,000

40,000

60,000

80,000

100,000

120,000

SY 2015-2016 SY 2016-2017 SY 2017-2018 SY 2018-2019 SY 2019-2020


Nationwide presence with wide range of program offerings

4

Wide breadth of programs with tailored course offerings to suit market demand

HealthcareICT Education

EngineeringHospitality Liberal Arts

§ ■ Reaches a larger student base and students not otherwise serviced by other institutions

§ ■ Encompasses a mixed mode of both wholly-owned and franchised schools based on geographic demand

Business

2

13

Academic

programs

Courseware

Development

Empl

oyer

s

STI Branded University Colleges ECs TotalOwned 1 37 1 39Franchised 32 6 38Total 1 69 7 77

Non-STI BrandedOwned 1 1Total 1 70 7 78

STI Education Services Group

5


STI ESG Student Enrollment

6

77,645

96,279 96,531

76,841 74,798

-

20,000

40,000

60,000

80,000

100,000

SY 2015-2016 SY 2016-2017 SY 2017-2018 SY 2018-2019 SY 2019-2020


SY 2015-2016

SY 2016-2017

SY 2017-2018

SY 2018-2019

SY 2019-2020

Franchised 34,767 43,592 42,165 32,543 29,987STI Owned 42,878 52,687 54,366 44,298 44,811

-

20,000

40,000

60,000

80,000

100,000

STI Owned Franchised

STI ESG Student Enrollment (Owned vs. Franchised)

7

55%

45%

56%

44%

58%

42%

60%

40%

55%

45%


SY 2015-2016 SY 2016-2017 SY 2017-2018 SY 2018-2019 SY 2019-2020DepEd 1,577 37,571 54,193 36,416 31,909TESDA 9,623 5,692 2,191 1,843 2,152CHED 66,445 53,016 40,147 38,582 40,737

-

20,000

40,000

60,000

80,000

100,000

CHED TESDA DepEd

STI ESG Student Enrollment (CHED/TESDA/DepEd Mix)

8

86%

12%

2%

42%

2%

56%

50%

2%

48%

54%

3%

43%

55%

6%

39%

*Includes 454 students enrolled in Basic Education

*


4%

16%

6%

34%

38%

2%

Arts and SciencesBusiness and ManagementEducationEngineeringInformation and Communications TechnologyTourism and Hospitality ManagementMaritimeGraduate Studies

STI ESG Student Enrollment (By Program, SY 2019-2020)

9

TERTIARY

Total No: 42,889

SENIOR HIGH SCHOOL

Total No: 31,455

18%

11%

20%4%

26%

21%

Accountancy, Business and ManagementHumanities and Social SciencesScience, Technology, Engineering and MathematicsGeneral AcademicInformation and Communications TechnologyHome EconomicsMaritime


STI WNU Student Enrollment

11

6,091 6,073

6,772 6,665 6,603

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

SY 2015-2016 SY 2016-2017 SY 2017-2018 SY 2018-2019 SY 2019-2020


SY 2015-2016 SY 2016-2017 SY 2017-2018 SY 2018-2019 SY 2019-2020DepEd 1,090 2,084 3,436 3,166 2,859TESDA 198CHED 4,803 3,989 3,336 3,499 3,744

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

CHED TESDA DepEd

STI WNU Student Enrollment (CHED/TESDA/DepEd Mix)

12

79%

3%

18%

49%

51%

52%

48%

57%

43%

66%

34%


15%

21%

22%

19%

17%

6%

Accountancy, Business and ManagementHumanities and Social SciencesScience, Technology, Engineering and MathematicsHome EconomicsInformation and Communications TechnologyMaritime

5%12%

10%

10%

14%17%

7%

25%

Arts and SciencesBusiness and ManagementEducationEngineeringInformation and Communications TechnologyTourism and Hospitality ManagementCriminologyGraduate Studies

STI WNU Student Enrollment (By Program, SY 2019-2020)

SENIOR HIGH SCHOOL

Total No: 1,874

TERTIARY

Total No: 3,744

13


iACADEMY Student Enrollment

15

994

1,375

1,728

2,291

2,566

-

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

SY 2015-16 SY 2016-17 SY 2017-18 SY 2018-19 SY 2019-20


SY 2015-16 SY 2016-17 SY 2017-18 SY 2018-19 SY 2019-20DepEd 430 945 1,170 1,145CHED 994 945 783 1,121 1,421

-

300

600

900

1,200

1,500

1,800

2,100

2,400

2,700

CHED DepEd

iACADEMY Student Enrollment (CHED/DepEd Mix)

16

45%

55%

100% 49%

51%

55%

45%

69%

31%


7%5%

19%

20%3%4%

39%

2%1%

Accountancy, Business and Management Humanities and Social Sciences

Computer Programming Animation

Graphic Illustration Fashion Design

Media and Visual Arts Audio Production

Robotics

58%

11%

31%

School of Design and Arts

School of Business and Liberal Arts

School of Computing

iACADEMY Student Enrollment (By Program, SY 2019-2020)

SENIOR HIGH SCHOOL

Total No: 1,145

TERTIARY

Total No: 1,421

17

Full Year 2018 - 2019 Financial & Operating Results

18


Capital Expenditures - March 31Key Balance Sheet Items

STI Holdings Balance Sheet Overview

(PHP millions)March 31,

2015 2016 2017* 2018 2019

Cash 803 665 3,199 1,858 777

PP&E 5,581 5,610 6,876 8,427 9,964

Investments in and Advances to Associates

1,622 1,425 857 42 44

TOTAL ASSETS 10,036 10,500 14,052 14,416 14,775

Total Loans / Bonds Payable 1,387 1,151 4,676 4,190 4,471

TOTAL LIABILITIES 2,380 2,270 5,740 5,613 6,047

EQUITY 7,656 8,230 8,312 8,803 8,728

(PHP millions)

* Restated19

1,227

335

1,579 1,615 1,676

2015 2016 2017 2018 2019

Education for Real Life* Restated20

Fiscal Years Ending March 31 2015* 2016* 2017* 2018 2019(PHP millions)

Revenues ₱2,224 ₱2,577 ₱2,933 ₱3,083 ₱2,753

Direct Costs 717 805 945 1,014 1,048

Gross Profit 1,507 1,772 1,988 2,069 1,705

Operating Expenses 990 1,069 1,066 1,194 1,309

Operating Profit 517 703 922 875 396

Other Income (Expenses) –Net 283 407 (264) (294) (69)

Income Before Income Tax 800 1,110 658 581 327

Net Income 731 883 558 503 284

EBITDA 848 1,127 1,413 1,392 1,000

Key Profit & Loss Data


Breakdown of Revenues for FY 2018 - 2019

Strong Growth in Revenues

21

Revenues(PHP millions) (as a percentage of total)

STI continues to achieve strong revenue growth, with a CAGR of 5.5% from 2015-2019.

2,224 2,577

2,933 3,083 2,753

-

500

1,000

1,500

2,000

2,500

3,000

3,500

2015 2016 2017 2018 2019

Tuition & Other School Fees

85.2%

Educational Services

6.1%

Royalty Fees0.6%

Educational Material and

Supplies5.8%

Other Services2.3%


² STI increased its gross profit from PHP1,507 million in FY 2014-2015 to PHP2,069 million in FY 2017-2018. Gross profit stood at PHP 1,705 million in FY 2018-2019.

² Operating profit has increased from PHP517 million in FY 2014-2015 to PHP875 million in FY 2017-2018. Operating profit stood at PHP396 million in FY 2018-2019.

² EBITDA has increased from PHP848 million in FY 2014-2015 to PHP1,392 million in FY 2017-2018. EBITDA was PHP1,000 billion in FY 2018-2019.

Operating Profit and Margin Profile

EBITDA(PHP millions)

Gross profit(PHP millions)

Operating profit(PHP millions)

22

1,507 1,772

1,988 2,069 1,705

50.0%

55.0%

60.0%

65.0%

70.0%

-

500

1,000

1,500

2,000

2,500

2015 2016 2017 2018 2019

Gross Profit Gross Profit Margin

517

703

922 875

396

0.0%

10.0%

20.0%

30.0%

40.0%

-

200

400

600

800

1,000

2015 2016 2017 2018 2019

Operating Profit Operating Profit Margin

848

1,127 1,413

1,392 1,000

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

- 200 400 600 800

1,000 1,200 1,400 1,600

2015 2016 2017 2018 2019

EBITDA EBITDA Margin


105

(155)

(244)(222)

3

(250)

(200)

(150)

(100)

(50)

-

50

100

150

2015 2016 2017 2018 2019

STI ESG’s Board of Directors approved the disposal of its 20% stake in Maestro Holdings on June 27, 2017. With this decision to dispose of the Maestro investment, STI ESG’s investment in Maestro was reclassified to Noncurrent asset held for sale under the current assets portion of the Statements of Financial Position.

With this, STI ESG ceased the use of the equity method of accounting for its investment in Maestro on June 30, 2017.

23

(PHP millions)

Equity in Net Earnings/(Losses) of Associates & Joint Ventures*

*For the years ended March 31.Figures for 2016 and 2017 have been restated.


Maestro Holdings Book Value*Maestro Holdings Revenue*

*For the years ended December 31. Revenues for 2016 and 2017 and Book Value for 2016 have been restated.

(PHP millions) (PHP millions)

Maestro Holdings – Financial Highlights

24

2,342 1,756 1,745

1,807 1,855 2,028

-

1,000

2,000

3,000

4,000

5,000

2016 2017 2018

Trust Funds Premiums

6,258

5,532

6,189

5,000

5,200

5,400

5,600

5,800

6,000

6,200

6,400

2016 2017 2018

2nd Quarter ending September 30, 2019 Financial & Operating Results

25


Financial Highlights

26

Six months ended September 30

Y-o-Y Change (%)*PHP millions (Except gross profit, operating and EBITDA margins)

2018(SY 2018-2019)

2019(SY 2019-2020)

Unaudited

RevenuesTuition & Other School Fees ₱ 1,001 ₱ 931 (7)Educational Services 76 72 (5)Royalty Fees 7 7 (4)Others 27 27 1Sale of educational materials & supplies 115 103 (11)

Total Revenues 1,226 1,140 (7)

Gross Profit 738 628 (15)Gross Profit Margin 60% 55%

Operating Profit (Loss) 84 (28) (133)

Operating Margin 7% (2%)

EBITDA 370 331 (10)

EBITDA Margin 30% 29%

Net Income (Loss) 52 (89) (271)

Core Income (Loss) 51 (88) (273)* Percentage changes were derived using figures in the financial statements and Financial Highlights and Key Performance Indicators section of the report for the six months ended 30 September 2019.


1,001 931

83 79 142

130

2Q 2018-2019 2Q 2019-2020

Tuition & Other School Fees Educational Services & Royalties

Educational Materials & Others

738

628

2Q 2018-2019 2Q 2019-2020

Revenues & EBITDA

SIX MONTHS’ REVENUES

SIX MONTHS’ GROSS PROFIT

SIX MONTHS’ REVENUES & EBITDAPHP millions

PHP millions

PHP millions

27

1,226 1,140

370 331

2Q 2018-2019 2Q 2019-2020Total Revenues EBITDA


Operating Profit and Margin Profile

28

PHP

Mill

ions

PHP

Mill

ions

PHP

Mill

ions

738 628

60% 55%

0%

20%

40%

60%

80%

-

200

400

600

800

2Q 2018-2019 2Q 2019-2020

Gross Profit Gross Profit Margin

84

(28)

7%

-2%

-10%

10%

(40)

(20)

-

20

40

60

80

100

2Q 2018-2019 2Q 2019-2020

Operating Profit Operating Profit Margin

370 331

30% 29%

0%

10%

20%

30%

40%

-

100

200

300

400

2Q 2018-2019 2Q 2019-2020

EBITDA EBITDA Margin

sti education systems holdings, inc. · 2020-02-05 · sti holdings network of schools 2 who we are...

Documents