Veranda Learning Solutions Limited — Interim / Quarterly Report 2023

Feb 9, 2023

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Veranda Learning Solutions Limited (formerly Veranda Learning Solutions Private Limited) (formerly Andromeda Edutech Private Limited)

9[th] February, 2023

BSE Limited Dept of Corporate Services, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Scrip Code: 543514

National Stock Exchange of India Limited The Listing Department, Exchange Plaza, Bandra Kurla Complex, Mumbai – 400 051 Symbol: VERANDA

Sub: Press Release on Financial Results pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and investor presentation.

Dear Sir/Madam,

Please find enclosed the press release titled ‘Veranda Learning Solutions announces Q3 FY 2022-23 Financial Results” pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 and investor presentation.

This information will also be hosted on the Company’s website at www.verandalearning.com.

Request you to kindly take the same on record.

Thanking you,

For Veranda Learning Solutions Limited

M Digitally signed by M ANANTHARAMAKRISHNAN ANANTHARAMAKRISHNAN Date: 2023.02.09 18:37:39 +05'30'

M. Anantharamakrishnan

Company Secretary & Compliance Officer

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contact@verandalearning.com www.verandalearning.com +91 44 4296 7777

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34,Thirumalai Road, T.Nagar, Chennai, Tamil Nadu-600017 CIN: L74999TN2018PLC125880

Press Release

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Veranda Learning Solutions announces Q3 & 9M FY23 Financial Results

Posts robust YoY Revenue growth

Chennai, February 09[th] , 2023: Veranda Learning Solutions Limited (“Veranda” BSE: 543514, NSE: VERANDA), a publicly listed company announced its financial results for the quarter ended December 31, 2022.

Consolidated Financial Highlights:

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Particulars (Rs. Million) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y FY22
Revenue from Operations 478.78 304.84 57.06% 368.85 29.80% 1,129.51 459.46 145.83% 750.48
Other Income 358.41 0.68 18.85 381.70 2.66 5.52
Total Revenue 837.19 305.52 174.02% 387.70 115.94% 1,511.20 462.13 227.01% 756.00
Gross Profit 228.74 207.32 10.33% 150.64 51.85% 498.36 273.79 82.02% 293.03
Gross Profit Margin (%) 47.78% 68.01% 40.84% 44.12% 59.59% 39.05%
Operating Expenses
Advt & Business Promotion 115.46 96.28 19.92% 106.89 8.02% 307.04 159.05 93.05% 222.48
Corporate Costs 55.42 46.52 19.13% 53.57 3.45% 158.29 115.03 37.61% 177.04
Non-Operating Expenses
ESOPs/RSU (94.82) 15.7 - 33.6 - (40.45) 46.80 - 71.2
Growth Investment 98.11 - 49.9 96.61% 161.77 - -
One time Transaction Costs 175.01
EBITDA 146.29 (112.38) - (147.65) - (134.75) (262.91) - (390.52)
Finance Cost 20.49 35.62 13.11 51.46 49.29 83.32
Depreciation 151.82 59.19 64.71 277.89 79.77 138.25
Tax Expenses (32.62) (14.37) (14.22) (58.75) (16.45) (27.13)
PAT 6.59 (192.82) (211.26) (405.35) (375.53) (584.95)
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Key Consolidated Financial Highlights:

• Total Revenue stood at Rs. 837.19 million in Q3FY23 compared to Rs. 305.52 million in Q3FY22; a growth of 174.02

• % YoY; Total Revenue for 9MFY23 stood at Rs. 1,511.20 million with a growth of 227.01 % YoY

• During Q3FY23, the other income included a one-time income of Rs. 321.27 million on account of the cancellation and forfeiture of debentures issued by the company

• The company has incurred a benefit of Rs 112.1 million for Q3FY23 on account of forfeiture of RSU issued to one of the employees

• Gross Profit stood at Rs. 228.74 million and Rs. 498.36 million for Q3FY23 and 9MFY23 respectively, recording a Gross Profit margin of 47.78% in Q3FY23 and 44.12% in 9MFY23

• Advertising and business promotion expenses for Q3FY23 and 9MFY23 were Rs. 115.46 million and Rs. 307.04 million , respectively

• The company has incurred expenses of Rs. 175.01 million towards one time Transaction Costs. This was spent on due diligence, legal fees and market studies to identify and engage with the acquisition targets

• The company reported an EBITDA of Rs. 146.29 million in Q3FY23 compared to loss of Rs. 112.38 million in Q3FY22

• During the quarter, the company invested Rs. 98.11 million to expand its offline centres set up under the brand of Edureka Learning Centres and in setting up of its Higher Education business

• The Operating Profit before growth investments, transaction costs, ESOPs/RSU stood at Rs. 3.3 million in Q3FY23 as against loss of Rs. 64.15 million in Q2FY23

• The total number of student enrolments stood at 22,035 for the quarter

Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions,

said “I am pleased to report that Veranda maintained its growth trajectory during the current fiscal year's first nine months. During the nine months ended, the company's revenue exceeded that of the previous fiscal year by more than fifty percent, on the back of our strong in-house brands and recent acquisitions.

At Veranda, we are keeping a close watch on the dynamics of the market. With the observed shift in market preference for a hybrid and offline model, we have now more than 200 physical centres in addition to a strong online platform. We have had the privilege of partnering with several distinguished institutions to successfully launch higher education programmes.

We are confident that new initiatives like Edureka Learning Centres, successful partnerships with renowned universities, along with important acquisitions like JK Shah Classes, will help the company achieve its objective of turning into a onestop solution for offering quality education to aspirants in India.”

Business Updates Q3FY23:

Geographical Expansion:

Veranda signed 42 Edureka Learning Centres (ELC) in Q3FY23 taking the total signups to 142 during 9MFY23 and 5 new B2B customers were added during the quarter. In Q3FY23, the company added 2 RACE Centres under the Veranda RACE brand, bringing the total number of RACE Centres to 41 by 9MFY23. Veranda trained 62,617 students in 9MFY23 against 43,951 students in the same period previous year.

Tie-up with PURDUE University to offer online Post Graduate Program Certification:

Edureka entered into a relationship with PURDUE University USA for online professional certificate programs. PURDUE has been named a Top 10 Most Innovative University by US News & World Report for the previous five years, as well as a Top 10 University with the Most International Students (Open Doors). These online programmes will cover a wide range of topics and disciplines, including cloud computing, computer science, and Dev ops.

Partnered with IIM Raipur & Society for Human Resource Management (SHRM) To Launch Execute Post Graduate

Program in HR (Online MBA):

Veranda (through “Edureka”) collaborated with IIM Raipur and the Society for Human Resource Management (SHRM) to create an Executive Post Graduate Programme (online MBA) in Human Resource Management. This programme is designed for HR professionals who are currently working in the department or who want to make a career change to HR responsibilities. This is a one-of-a-kind programme, with a structured academic curriculum offered by an experienced IIM faculty. SHRM will cooperate with Veranda to create Masterclasses for CHROs and Senior HR Practitioners based on SHRM's Global Competency Framework. Furthermore, this course will provide personalised career counselling and mentorship, as well as assistance with job transitions, to ensure successful outcomes.

Acquisition of JK Shah Classes:

Pursuant to Share purchase agreement dated October 31, 2022, Veranda XL Learning Solutions Private Limited, a wholly owned Subsidiary of the company has acquired 20,57,011 shares constituting 63.14% of total equity shares from existing shareholders of J.K Shah Education Private Limited (‘JKSEPL’) for a total consideration of Rs. 2,664.25 million. This acquisition is an important breakthrough for Veranda Learning Solutions into the high-demand courses such as Chartered Accountancy (CA), as well as a bouquet of financial and commerce courses.

Business Transfer Agreement with Chennai Race:

Pursuant to Business Transfer Agreement (“BTA”), Veranda Race Learning Solutions Private Limited (wholly owned Subsidiary of the company) has acquired the business of Chennai Race Coaching Institute Private Limited on 31 January 2023, as a going concern for a consideration of Rs. 117.5 million. This helps Veranda Race to expand its present business operations by increasing its student base and market reach.

About Veranda Learning Solutions:

Founded in 2018 by the Kalpathi AGS Group, Veranda Learning Solutions is a publicly listed company that offers a bouquet of training programs for competitive exams preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programmes in trending technologies. Veranda Learning Solutions aims at offering a robust learning platform riding on a network of strong mentors, educationists, and tech experts.

Veranda Learning Solutions’ platform combines technology, processes, and methodologies to provide high-quality, indepth, personalised learning opportunities and content to learners across the country. Dedicated to creating an impact on students and delivering successful academic outcomes, Veranda adopts a multi-modal delivery system backed by a rigorous and disciplined learning framework.

Company Contact:	Investor Relations:
Mrs. Saradha Govindarajan, CFO Veranda Learning Solutions Limited saradha.g@verandalearning.com	Mr. Abhishek Bhatt Ms. Mahalakshmi Venkatachalam Ernst & Young LLP Abhishek.bhatt3@in.ey.com Mahalakshmi.venkatachalam@in.ey.com

Visit us at www.verandalearning.com | CIN U74999TN2018PLC125880

DISCLAIMER:

Certain statements in this document that are not historical facts, are forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political, or economic developments, industry risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Veranda Learning Solutions Limited will not be responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances

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Veranda Learning Solutions Affordability | High-quality Content | Outcome-oriented Approach

Investor Presentation | February 2023

Safe Harbor

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• This presentation and the following discussion may contain “forward looking statements” by Veranda Learning Solutions Limited (“Veranda Learning” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of Veranda Learning about the business, industry and markets in which Veranda Learning operates.

• These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond Veranda Learning’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements.

• Such statements are not, and should not be construed, as a representation as to future performance or achievements of Veranda Learning. In particular, such statements should not be regarded as a projection of future performance of Veranda Learning. It should be noted that the actual performance or achievements of Veranda Learning may vary significantly from such statements.

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Agenda 01 Result Highlights 02 Company Overview 03 Growth Strategy 04 Industry Overview 05 Financials

Q3 & 9M FY23 Performance

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Key Financial & Business Highlights
Revenue from Operations Gross Profit Key Business Highlights
Q3FY23 Q3FY23
Partnered with IIM Raipur & Society
Consolidated YoY Growth % Consolidated YoY Growth % for Human Resource Management
To Launch Execute PGP in HR
₹ 479 Mn 57% ₹ 229 Mn 10% (Online MBA)
Collaborated with Purdue
University to provide Online PGP
Certifications
9MFY23 9MFY23
Expanding Presence - Signed
42 New Edureka Learning Centres
Consolidated YoY Growth % Consolidated YoY Growth % 05 New B2B customers
02 New RACE Centres
₹ 1,130 Mn 146% ₹ 498 Mn 82%
75 JK Shah Centers
In Q3FY23
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From the Chairman’s Desk

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Commenting on the results, Mr. Kalpathi. S. Suresh, Executive Director and Chairman, Veranda Learning Solutions, said

“I am pleased to report that Veranda maintained its growth trajectory during the current fiscal year's first nine months. During the nine months ended, the company's revenue exceeded that of the previous fiscal year by more than fifty percent, on the back of our strong in-house brands and recent acquisitions.

At Veranda, we are keeping a close watch on the dynamics of the market. With the observed shift in market preference for a hybrid and offline model, we have now more than 200 physical centres in addition to a strong online platform. We have had the privilege of partnering with several distinguished institutions to successfully launch higher education programmes.

We are confident that new initiatives like Edureka Learning Centres, successful partnerships with renowned universities, along with important acquisitions like JK Shah Classes, will help the company achieve its objective of turning into a onestop solution for offering quality education to aspirants in India”

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Consolidated P&L Highlights

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Particulars(Rs. Mn) Q3FY23 Q3FY22 Y-o-Y Q2FY23 Q-o-Q 9MFY23 9MFY22 Y-o-Y	FY22
Revenue from Operations 478.78 304.84 57.06% 368.85 29.80% 1,129.51 459.46 145.83% Other Income 358.41 0.68 18.85 381.70 2.66 Total Revenue 837.19 305.52 174.02% 387.70 115.94% 1,511.20 462.13 227.01%	750.48 5.52 756.00
Gross Profit# 228.74 207.32 10.33% 150.64 51.85% 498.36 273.79 82.02% Gross Profit Margin(%) 47.78% 68.01% 40.84% 44.12% 59.59%	293.03 39.05%
Operating Expenses Advt & Business Promotion 115.46 96.28 19.92% 106.89 8.02% 307.04 159.05 93.05% Corporate Costs 55.42 46.52 19.13% 53.57 3.45% 158.29 115.03 37.61% Non-Operating Expenses ESOPs/RSU (94.82) 15.7 - 33.6 - (40.45) 46.80 - Growth Investment 98.11 - 49.9 96.61% 161.77 - One Time Transaction Costs 175.01 EBITDA 146.29 (112.38) - (147.65) - (134.75) (262.91) - Finance Cost 20.49 35.62 13.11 51.46 49.29 Depreciation 151.82 59.19 64.71 277.89 79.77 Tax Expenses (32.62) (14.37) (14.22) (58.75) (16.45) PAT 6.59 (192.82) (211.26) (405.35) (375.52)	222.48 177.04 71.2 - (390.52) 83.32 138.25 (27.13) (584.95)

*Includes a one-time income of 321.27 million on account of the cancellation and forfeiture of debentures

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#Gross profit calculation: (Revenue – Direct Costs) | GP Margin: GP / (Revenue from Operations)

Veranda Company Overview

Ve randa Learning – A Quick Glance

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Veranda Learning Solutions is engaged in the business of offering diversified and integrated learning solutions in online, offline hybrid and offline blended formats to students, aspirants, and graduates professionals and corporate employees

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Strong Leadership:

Promoters have a collective experience of over 40 years in the education sector and proven track record of entrepreneurial success

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Diversified Offerings:

Presence across Platforms:

Provides a wide range of learning solutions through courses including UPSC, competitive exams courses, professional courses, short term upskilling and reskilling courses to students and professionals Courses offered through online, offline hybrid, offline blended, campus in campus and online live instructor led learning models in various languages

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Established Strong Brand:

Established a strong presence in competitive exam-oriented courses like Banking, SPSC, Insurance, RRB & SSC and ,creating niche online education platform across all segments. Edureka , is a recognised online education platform for IT professionals offers upskiiling & reskilling courses

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Our Journey so far

Acquisition of Chennai RACE

• Dec’20: Acquired Content, brand, education materials through Veranda Race; commenced operations

• Dec’20: Launched own mobile app comprising all integrated courses

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Key Acquisitions

• July’21: Launched CA course offered by Veranda CA

• Aug’21: Launched UPSC course offered by Veranda IAS

• Sep’21: Acquired Edureka, enabling Veranda to establish global footprints

2021

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Public Lisitng, Acquisition of J. K. Shah Classes & Launch of Edureka Learning Centre (ELC)

Business Transfer Agreement with Chennai Race

• Apr’22: Listing on BSE & NSE

• Apr’22: Listing on BSE & NSE • Jan’23: Purchased centers of

• • May’22: Launched Edureka Chennai Race Coaching Institute Private Limited

• Learning Centre

• Oct’22 : Acquired J. K. Shah Classes

2023

2022

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Incorporation
Nov-2018
2020
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Strong presence in test preparations & professional skilling segments

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Career-defining competitive exams Hybrid • TNPSC Group 2 • SSC
Courses • TNPSC Group 4 • Railways
• TN TET • Kerala PSC
• Banking • CA Foundation
Professional courses
TNPSC Exam Coaching: CA Exam Coaching:
• Group 2 & 2A • CA Foundation
• Group 4 • CA Intermediate
• CA Final
Exam-oriented courses Test Series: • CA Revision
Online • TNPSC
Courses • Banking Test Batch UPSC Exam
• CA -all levels • Integrated Learning
Programme
•
Banking & SSC Exams: Prelims Learning
• Tamil Programme
•
English
•
Upskilling and Reskilling courses Malayalam Kerala PSC Exam Coaching
• Telugu TNUSRB SI
• Kannada
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Developed 340+ courses offered in Online, Offline Hybrid & Offline Blended

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Edureka – A leading player in emerging technology training

• A comprehensive learning platform aimed to bridge the workplace-ready IT skills gap

• Edureka Learning Centres

• Pioneering Instructor Led Live Edureka Learning Centres Online training • Veranda acquired Edureka to build a full-stack Education business virtually

• • Launched Edureka learning with the first set of

• Industry leader in online professional Delivery Centres across 105 locations

• & higher education segment Courses Offered • • Cloud Computing Architecture & Design Patterns

• • DevOps • Artificial Intelligence

• Upskilling & Reskilling courses Online Courses • BI Visualization • Databases

• • Data Science

• Visit us Link • Data Warehousing and ETL

• • Programming & Frameworks • Operating Systems

• • • Frontend Development Digital Marketing

• Global customer presence • Mobile Development • Robotic Process majorly from US & UK • Automation Software Testing • Blockchain

• • Project Management & Methodologies • Data Science

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Established a result oriented unique 360[o] Approach

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Weekly lectures by
subject matter experts
with Q&A
Mentors assigned to
every student to track
and ensure progress
Right blend of offline &
online materials to support
the learning outcomes
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Textbooks for all courses
for in-depth structural &
methodical learning
Chapter and paper level
mock tests for practice
Multi-level practice
programmes
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Veranda Learning – Coaching centres across India

200+ Centre

Diversified Footprint across India

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s (across all courses)

Wide Building presence across India Presence Strong Hold Across Southern and Western India India

Established strong offline presence in Southern and Western India

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Proficient Team to drive the business

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Kalpathi S Suresh

Chairman & Executive Director

• More than a decade of experience in the Education industry

• Founded SSI in 1991, providing software education and IT training; key milestones include listing on NSE and BSE, formed a JV with NASDAQ, acquired Albion Orion Company LLC and acquired controlling stake in Aptech Limited

• Founded AGS Entertainment in 2003, a production house and later ventured into film exhibition via AGS Cinemas

• Founded Kalpathi Investments in 2007, a NBFC which invests in various ventures

• Awarded the ‘Outstanding Entrepreneur of the Year’ in 1999 by Ernst & Young, India

• Bachelor’s degree of Technology in Electrical Engineering, Master’s Degree in Electrical Engineering

Kalpathi S Aghoram Non-Executive Director

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Kalpathi S Ganesh Kalpathi Aghoram Archana
Non-Executive Director Non-Executive Director
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• Bachelor’s degree in Commerce

• A decade of experience in finance, education, IT, entertainment

• Previously associated with TNCA and BCCI

• 15

• Bachelor’s degree in Applied Sciences,  Master’s degree in Computer Science Master ‘s degree in Software Systems

• Director of AGS Cinemas; Executive producer of AGS Entertainment

• A decade of experience in finance, education, IT, entertainment

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Veranda Learning – Key Team Members (1/2)

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• Praveen Kumar Saradha Govindarajan Pravin Menon

• President, Corporate Strategy Chief Financial Officer Chief Marketing Officer

• 25+ years of experience in cross border  11+ years of experience in the areas of  26+ years of experience in marketing in acquisitions & pre-acquisition process in M&A Finance, Strategy and Operations EdTech, Media and Publishing businesses

• PreviouslyHaskins and Sellsworked with SSI and Deloitte  PreviouslyAgarwal’s ledEye QubeHospital Cinemasas CFO and& SVP,Dr.  Previously worked with Worldwide Media, Vikatan, Bennet Coleman & Network Digitech

• Member of ICAI and ICWAI Strategy & Operations  BE from College of Engineering, Guindy and  Bachelor’s degree from University of Mumbai MBA from XLRI, Jamshedpur

• Rajesh Pankaj Sivakumar Ganesan Lovleen Bhatia

• Chief Program Officer CEO, Co-Founder, Edureka VP, Sales & Field Force Marketing

• 30+technology, education & content developmentyears of industry experience spanning  18 years+ of technical leadership and R&D  4+experiencedecades ofacrossleadershipsales and& marketingentrepreneurialand experience education domains

• PreviouslyTalentCare, Everon Education and Hurixworked with Pearson, MPS, HCL  B.Tech from IIT BHU  Previously worked with SSI, Aptech and Dunlop  B.Sc in Chemistry from Mahatma Gandhi  B.A. in Economics from University of Madras University and PG Diploma from NIIT and PGDM in Marketing from AIMA

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Veranda Learning – Key Team Members (2/2)

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Bharat Seeman Venkatesh K
Business Head Chief Instruction Delivery
Veranda IAS ,
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• 10+ years of experience in business leadership

• Master’s degree in Technology from Anna University

• 25+ years of experience in Strategy and execution

• Previously worked with SSI, e4e, TCS, Primex and Wellcorp at senior management roles

• Executive MBA from IIM-B and is a Certified Corporate Director from IOD

Santhoshkumar P Head of Operations

• 7+ years of experience in operations management at Veranda RACE

• MBA from Illinois Tech Stuart School of Business and Master’s degree from Great Lakes Institute of Management

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J K Shah
Executive Chairman
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• Founder, pioneer and a seasoned educationist

• 38+ years of proven industry experience in leading and managing CA coaching classes

• Pooja Shah Vishal Shah Joint COO Joint COO

• Education enthusiast focused on disrupting hybrid  7+ years of experience in managing educational spaces development & operations and lead

• 7+ years of experience in managing business development & operations and lead generation functions

• Before JK Shah, began her journey as an Articled Assistant at Arvind H Shah & Co

• Heads the online coaching vertical at JK Shah Classes

• B.Com in Accounting & Finance from University 17 of Mumbai and member of the ICAI

• B.Com from NMIMS and member of the ICAI

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Veranda Growth Strategy

Veranda Learning – Growth Strategy

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• Evaluate targets for acquisitions and seek opportunities to acquire brands and businesses which complement its service offerings, strengthen or establish its presence in the targeted domestic and international market

Strategic Acquisitions Expansion Through PDCs

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• Expand presence in existing & new markets, by increasing number of PDCs* through arrangements, wherein company operates online blended and offline blended model of learning under revenue sharing arrangements

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Addition of new
courses and offerings
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• Engaging with educational institutions like K-12 schools & colleges to deliver highquality digital content

• Exam oriented courses for college entrance & admissions to universities

• Expand its services to working professionals

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Expand focus on B2C
and B2B models
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• Expand focus on B2C[^] and B2B[#] spectrum of the education sector

• Significant growth opportunity in the B2C & B2B spectrum of education sector

*Preferred Delivery Centres

Business-to-business where company delivers services to the Corporate/ educational institutes ^Business-to-consumer where company delivers services directly to consumer such as Student / Learner

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Strategic Acquisitions & New Launches to Scale business Operations

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Veranda
Acquired Chennai RACE in December 2021
RACE
Edureka Acquired Brain4ce Education Solutions (“Eduerka”) in September 2021
Edureka
Launched Edureka Learning Centres in May 2022
Learning Centres
J.K Shah Acquired in
Classes October 2022
Dec Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2020 2021 2022
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Veranda RACE

Edureka

J. K. Shah Classes

Edureka Learning Centres (ELC)

Chennai RACE was engaged in running coaching institutes in Tamil Nadu, Kerala and Punjab. With this acquisition, Veranda expanded offline & Hybrid operations.

Revenue Contribution in FY22

50.5%

Veranda expanded its offerings in academic learning, professional skilling & corporate training services in trending courses related to technologies.

Revenue Contribution in FY22

47.5%

Through J. K. Shah Classes Veranda collaborates with India’s leading brand to offer courses like CA, CS, CMA, CFA, ACCA, etc

Acquired Majority Stake in J. K. Shah

63.14% as on 31[st] Dec

The company intends to deliver high quality, affordable, and experienced instructor led courses across tier 2 and tier 3 towns.

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– Collaboration with J. K. Shah India’s leading institute for CA test prep

Veranda acquired J. K. Shah Classes (JKSC)

Forayed into an imperative segment of high-demand financial courses such as Chartered Accountancy through acquisition of India’s premier CA test-preparation institute, J. K. Shah Classes.

Synergy of Veranda & J. K. Shah Classes

Veranda will provide its rich technological expertise meanwhile leveraging J. K. Shah’s strong brand recognition and legacy; additionally Veranda will aid JKSC to establish presence in the South, North, & East of India, along with strengthening its online and hybrid offerings.

Deal Status

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39 ~75 years Centres of legacy in India

1,870 CA 214 CS Rankers Rankers Since 2001 since 2016

Revenue Trend (Rs. Cr)

Veranda has acquired 63.14% stake as on 31[st] Dec 2022.

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Marquee Alumni

JKSC’s alumni includes marquee names like Mr. Kumar Mangalam Birla, India’s leading industrialist and Chairman of the Aditya Birla Group; Mr. Piyush Goyal, Hon’ble Minister of Commerce and a member of the Rajya Sabha; Mr. Nilesh Shah, MD of Kotak Mahindra AMC.

89.7

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80.3

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FY20 FY21 FY22

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Industry Growth Drivers

Geographical Segmentation - Global

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Region	Market Size (2021)	Market Size (2027)	Growth Rate CAGR (2021-27)
Asia Pacific Countries (APAC)	$107.63 BN	$277.39 BN	17.09%
North America	$52.62 BN	$109.27 BN	12.95%
Europe	$39.62 BN	$92.26 BN	15.13%
Latin America	$29.68 BN	$72.95 BN	16.17%
Middle East & Africa	$25.25 BN	$53.52 BN	13.34%

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Source: Arizton Advisory & Intelligence Report

Indian Ed-tech Sector – Market Size

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90 30.00%
Edtech Market in India 2021–2027 ($ billion)
80
25.00%
70
60 20.00%
Growth Rate 50
15.00%
40
19.17%
CAGR 30 10.00%
(2021-2027) 20
5.00%
10
0 0.00%
2021 2022 2023 2024 2025 2026 2027
Revenue 27.41 30.48 35.23 41.98 51.25 63.25 78.5
Growth Rate 11.20% 15.56% 19.18% 22.07% 23.41% 24.12%
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Source: Arizton Advisory & Intelligence Report

Indian Sector – Boom for Upskilling & Reskilling Courses

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Upskilling and Reskilling – A budding requirement

A McKinsey global survey in February 2020 found that 9 in 10 executives and managers are either already facing skills gaps in their organizations or expect gaps to develop within the next 5 years

KEY SURVEY RESPONSES

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HR providing employees with Upskilling & Model of employees receiving Upskilling &
Reskilling Training Reskilling Training
20%
Upskilling 31%
Reskilling 2%
11%
Both 59%
69%
Never 8%
Online Offline Both
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Employees prefer to work with company
providing Upskilling & Reskilling Training
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26%
74%
Yes No
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Source: McKinsey global survey in February 2020

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Financial Performance

Consolidated P&L Highlights

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Particulars (Rs. Mn) H1FY22 9MFY22 FY22	H1FY23 9MFY23
Revenue from Operations 154.63 459.46 750.48 Other Income 1.98 2.66 5.52 Total Revenue 156.60 462.13 756.02	650.73 1,129.51 23.29 381.70 674.01 1,511.20*
Gross Profit# 66.48 273.79 293.03 Gross Profit Margin (%) 42.99% 59.59% 39.05%	269.62 498.36 41.43% 44.12%
Operating Expenses Advt & Business Promotion 62.78 159.05 222.48 Corporate Costs 68.51 115.03 177.04 Non-Operating Expenses ESOPs/RSU 31.10 46.80 71.2 Growth Investment - - EBITDA (150.53) (262.91) (390.52) Finance Cost 13.67 49.29 83.32 Depreciation 20.58 79.77 138.25 Tax Expenses (2.08) -16.45 (27.13) PAT (182.71) (375.53) (584.95)	191.59 307.04 102.87 158.29 54.37 (40.45) 63.66 161.77 (281.05) (134.75) 30.96 51.46 126.07 277.89 (26.13) (58.75) (411.94) (405.35)

*Includes a one-time income of 321.27 million on account of the cancellation and forfeiture of debentures

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#Gross profit calculation: (Revenue – Direct Costs) | GP Margin: GP / (Revenue from Operations)

Financial Highlights

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Total Revenue EBITDA
1,511.20
FY21 FY22 9MFY23
-76.25
756.02
-134.75
25.44
-390.52
FY21 FY22 9MFY23
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Revenue Break-up (9MFY23)

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31%
69%
Online % Offline %
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Enrolments
62,617
58,682
42,000
FY21 FY22 9MFY23
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ARPU
Brain4ce (Edureka) Veranda Race
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27,593
26,056
12,847 12,229
9MFY22 9MFY23 9MFY22 9MFY23
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Let’s Connect

Ernst & Young, LLP Mr. Abhishek Bhatt abhishek.bhatt3@in.ey.com

Veranda Learning Solutions

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Mrs. Saradha Govindarajan, CFO

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saradha.g@verandalearning.com

Ms. Mahalakshmi Venkatachalam

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mahalakshmi.venkatachalam@in.ey.com

Veranda Learning Solutions Ltd, 34, Thirumalai Pillai road, T. Nagar, Chennai, Tamil Nadu – 600 017