Tree House Education & Accessorie$ Ltd.

Corporate Otfice:
301, Embassy Chambers, 3rd Road, Khar (W),
Mumbai - 400052. Tel.: 022-40169587 16/,572725
CIN : 1801 01 MH2006PLC1 63028

Registered Otfice:
702, Morya House,'C'Wing, Ofi Link Road,
Andheri (W), Mumbai - 400 053.
Tel.: O22-il512384. Fax 022-26051 259

February 14,

Bombay Stock

To,

Exchange

To,

National Stock Exchange of MCX Stock Excha

Ltd.

India Ltd.

Phirozef eejeebhoy Towers,

Dalal Street, Mumbai-400 001

Exchange Plaza, Plot no. C/1,, G

Block, BKC, Bandra (EJ, Mumbai
- 400 051

Suren Road, Andheri

Mumbai- 400 093

Dear Sirs,

Sub.: Outcome of the Board Meeting of the Company held on February t4,2016.
Ref.: Scrip Code: 533540

/ Symbol: TREEHOUSE

We are enclosing the Un-Audited Financial Results of the Compar.ly for the
3,d Quarter bnd
nine months ended December 3L, 20L5, duly approved by the Ii ,ard of Direciors of the
Company, at its meeting held today. The meeting of the Board of Directors of
the Co;il;;J
'
commenced at 11.30 a.m. and concluded on at 2.50 p.m.

We also enclose a copy of the Limited Review Report of the Auditors of the Compa
as
required under Securities and Exchange Board of India
flisting Obligations arnd Disclo ure
Requirements) Regulations, 20L5.

we request you to kindly take the above information on record.

Thanking you.
Yours truly,

For Tree

Encl: as stated

tion & Accessories Limited

Tree House Education & Accessories Limited

Regd. Office: 702, C Wing Morya House, Off New Link Road'
Near Infinity Mall, Andheri (W), Mumbai - 400 053
I 61028
e ouarter and nine mo ths ended December 31, 2015

Statement of Unaqdited financials results

Particu lars

Dec 31,2015

ded
:ot 30. 2015

Dec 3'l , 2014

naudited
5,578

Income from operations

Total expenses

4)
o)

7\
8)
e)
10)
11)

12\
13)

14\
15)
16)

Proflt from operatlons before other income, finance cost

and exceptional items (1-2)
Other income
Profit from ordinary activities before flnance cost and
Finance cost
Proflt from ordinary activities after flnance cost but before
ex@ptlonal items (5-6)
Exceptional items
Profit from ordinary activities before tax (7-8)

3,356

4,110

2,212

2,390

,004

576

352

1,810

1,732
1,898
1,076

,62

t'1 555

3 139

14

2,760

11 400

1,340

2,O11

2,551
50

1,611
50

315
2,326
452

z,ou I
430

6,806
886
7.692

,105

1,874

2.171

20,745

4,239

4.23E

271

2,682
1

,773

9,1 90

1 321

98
J
86

715
9 905
tcJ

6 521

B3/4

6.52 /
2 151

8 374
2 286

6,365
322

11 05
493

Tax expense
Net profit from ordinary activities after tax (9-1 0)
Extraordinary ltems (net of tax expenses Rs NIL)
Net profit for the period / year (1 1 -1 2)

612

2,

,874
600
1,274
1

659
1.512

612
4,231

Pald up equity share capital (face value Rs'10 per share)

Reseryes excluding revaluation reserues
Earnings per share betore exceptional item
Basic

4,231

6,043
2 355

4.376

'1.512

3,688

4,376

4.231

4.231

4.231

6 088
4,231
61.257

301

Diluted
16)

20 745

1,114
629
605

768
't

15,677

18 206

,506

807
1 170
755

)ar ended
Mar 31, 201 5

18,206

5,725

t.t a)
Expenses
Operating cost
Employee beneflts expense
Depreciation and amortisation
Other expenses

(Rs in lacs)

Nine Months ended

ec 31.2015
Dlc 3 1. 2014
Unaudited

Earnings per share after exceptional item

Basic
Diluted

144

301

144
144

301
301

389
389

948
948

11 26
11 26

15 66
15 66

389
389

872
872

't1 26
11 26

15 66
15 66

PART II

A.
'1
2
a)

b)

Particulars of share holding

Public shareholding

Number of shares
Percentage of shareholding
Promoler and promoter group shareholding
Pledged / Encumbered
- Number of shares
- Percentage of shares
promoter and promoter
- Percentage of shares
the Company)

3,36,20,655
79 46%

2,96,30,655
70 03%

26,700
0 31%

54,82,000
43 23%

0 06%

12 96'/o

(Refer note 5)
(as a % of the total shareholding of
group)
(as a % of the total share pital of

Non-encumbered

- Number of shares
- Percentage of shares (as a % of the total shareholding of

86,63,369

promoter and promoter grouP)

- Percentage of shares (as a % of the total share capital of
the Company)

99

Particulars

71,98,069

71 06%

2,97,24,396
70 250A

26,700
0 31%

34,07,000
27 82%

36,07 000
28 ft6%

0 06%

71 06%

3,36,20,055
79 46%

34,07,000
27 82'/o

3,00,64,11

O50/o

88,39,613

3,00,64,11'1

05%

88,39,613

86,63,369

690/0

56 774/"

72

18ya

99 69%

72 18"/.

20 48%

17 01va

20 89%

20 480/,

20 89%

53o/o

89 79 328
I 1 34fo
21 22'k

Quarter ended
Dec 31.2015

E
at the beginning of the quarter
during the quarter
of during the quarter
lemaining unresolved at the end of the quarter

N
N
N

of Directors at its meeling held on February 14 20'16

The above financial results have been reviewed by the Audit Committee and thereafter approved by the Board
ended
' 201 5
The Statutory Auditors have carried out a "Limited Revieu/' of the above flnancial result
algamatron with Zee l-earn
d the S
3 The Board of Directors of the Company on December 23 2Ol 5 on recommendation oi
and
other Statulory /
gh, Cou
Limited The scheme is subject to iequisite approvat of Shareholders and Creditors of t
Regulatory authorities as may aPPlicable
1

AsthebusinessactivityoftheCompanyfallswithinasingleprimarybusinesssegmentviz "Educationalservices" thedisclosurerequiremenlsofAccounlrngSlanda'd

(AS-17) "Segment Reporting" is not applible
curren
ireviOuS period / yearflgures have been regrouped / rearranged wherever necessary to conform with the
For and

irectors

r, li!
Place: Mumbai
Date : February 14, 2016

alr

c)

AGARWAL

& ASSOCIAIES

0ffice No. : 53, Ground Ftoor

Citi MatL, New Link Road
Andheri (W), Mumbai-400053
Mobile : 98375t9045

Chortered Accountonls
KOLKATA, MUMBAI

E- mai[

: agarwats.associates@gmait,com

LIMITED REVIEW REPORT

Tg

The Board of Directors,

TREE HOUSE EDUCATION & ACCESSORIES LIMITED

We have reviewed the accompanying statement of Unaudited Financial Results ( the "Statement,') of
Tree House Education & Accessories Ltd. (the "Company") for the Quarter and nine months
ended December 31, 2015. The Statement has been prepared by the company pursuant to
Regulation 33 of the SEBI (Listing obligations and Disclcsure requirements) Regulations, 20i5 (the
"L-isting Regulations, 2015"). The statement is the responsibility of the Company's nnanagement
and
has been approved by the Board of Directo,'s. Our responsibility is to issue a repoft on the statement
based on our review.

We conducted our review in accordance with the Standard on Review Engagements (SRE) 24i0,
"Review of Interim Financial Information Pe rmed by the Independent Auditor of the Entity, issued
by the Institute of Chartered Accountants oi India. This standard requires that we plan and perform
the review to obtain moderate assui'ance as to whether the financial statements are free of materia!
misstatement, A review is limited primarily to inquiries of company personnel and analytical
proceclures applied to financial data and thus provide less assurance than an audit. We have not
peformed an audit and accordingly, we do not express an audit opinion,
Based on our review conducted as above, nothing has come to our attention that causes us to
believe that the accompanying Statement of unaudited financial results prenared in accordance urlih
the Accounting Standards referred to in section :i33 o1'the Conipanies Act ZCL3, read with rule 7 of
the Companies (Accounts) Rules 20t4 and other recognized accounting practices and policies has
not disclosed the information required to be disclosed !n terms of Regulation 33 of the Listing
Regttlations, 20t5, including the manner in which it is to be disclosetl, or that it contains any materiai
misstatement.
For Aganrual & Associates

Chatered Accountants
(Firm Registration ttio. 3232iOE)

(Naresh Agarwal)

(Partner)
Membership ttio" 063049
Place of signatu,-e : Mumbai
Date: L4th Februery 2016

H.0.: 7A, Bentinck Street, Znd FLoor, Kotkata-700001

Tree House Education & Accessories Ltd.

Corporate Office:
301, Embassy Chambers, 3rd Road, Khar (W),
Mumbai - 400052. Tet.: 022-40169597 l/iS7272S

CIN :

1801 01 MH2006PLC1 63028

Registered Office:
7O2,Morya House, 'C'Wing, Off Link Road,
Andheri (W), Mumbai - 4OO 059.
Tel.: 022-il51 2384, Fax 022-26051 2Sg

e
Ploygrcup &

'FM

@ts

Nuery

to wingsl

Febrruary 14,2016
To,

To,

Bombay Stock Exihange Ltd.

Phiroze Jeejeebhoy Towers,
Dalal Street, Mumbai-400 OO1

National Stock Exchange of MCX Stock Exchange Ltd.

India Ltd.
Exchange Plaza, plot no. C/1, G
Block, BKC, Bandra (E), Mumbai400 051

TQ,

Suren Road, Andheri

Mumbai- 400 093

Dear Sirs,

sub':

Intimation to slgc! Exchanpe - Press Release in connection

with the Un- Audited
Financial Results for the 3'dquarter and nine month
ended on oecember 31, 2015.

Ref.:

Scrip Code: S33S4O / Symbot: TREEHOUSE

We are attaching a copy of the 'Press Release' in connection

with the captioned Results.

We request you to kindly take it on your records.

Thanking you,
Yours truly,
For Tree
H,1.

Hardik
Com

& Accessories Limited

(East),

Ploygroup & Nursery

'From rools lo wtng6'

Tree House Education

702, C Wing, Morya House
,

kr-r--

& Accessories Limited

Off New Link Road. Near lnfiniry Mall. Andheri (W).

Murnbai.400053.Maharashtra- India

Results press Release dated February

1.4, 2OL6

Revenue from Operations at INR 1g2.06

cr, up 16.l" y_o_y
Operational EBITDA at INR gg.4s cr, up 4.5"h y_o_y
Profit after tax at INR 36.gg cr
Tree House Education & Accessories Limited (Tree
House) reported its audited financial results
for the nine months ended December 31,201,5.
Key highlights are as follows:

Particulars

9M FY2016

9M FY2015

Growth

182.06

156.77

L6.%

99.45
36.88

95.13

4.So/"

43.76

-L5.7%

54.6%

60.7%

20.3%

27.9%

(610) bps
(760) bps

uperaUonat tBITDA {lNR cr)

DNTA'

6
o

New Pre School,s opened

There was a net addition of 168 preschools
over last four quarters, including 162 selfoperated preschools.
a
Total number ef centers as on December
31,,20L5 is 730.
a
The number of serf-operated preschoors
is 621(gs.r%of totat preschoors).
Geographical coveraee
a
Now present in j.04 cities in India,
a
New city launched in the quarter: Farida

The Company provides school management services to 24 K-tZ schools in 3 states in ndia.

Staff strensth
o Total staff strength as on December 31, 2015 is 2,742.
o Total teacher strength as on December 31, 20L5 is 2,6L0,
Corporate hiehliehts
The Board of Directors has approved the Scheme of Amalgamation with Zee Learn L mited,
subject to requisite approvals of shareholders and creditors of the cornpany, Hon'b High
Court of Bombay and other statutory regulatory authorities.

Commenting on the Q3 FY76 results, Mr. Rajesh Bhotia, Managing Director of Tree
soid: "Our Q3 performonce reflects o cautious operoting environment thot i:s reflected in
mid-session odmissions. Meqnwhile, the 162 new centers opened over the lost four q
including a significont number in the Delhi ond NCR region, hove increosed operoting
see these new centers contribute more meoningfully to profits ond cash flours over the
years. We ore also focusing on efficiently integroting some of our centers to rotionolize
cost exponsion and enhancing center profitability.
We opened 10 new centers this quarter ond expect to instead focus c'n deriving
contributions from existing inf rastructure. We olso mointoin our continuing
rationalizing K-72 investments, debt reduction ond cosh flow exponsion.
Our vision for the future remoins intact and we believe we ore well poised to toke our
beyond the immediate term challenges. We remoin possionote about our gc,ol of creatin
driven educotionol focilities ocross the country while strengthening connec:t with pqre
children alike. ln this context, our initiative of re-branding over 200 centers os "Tree
further sharpening our edge in the preschools sector and create meoningful volue

ers,

We

t two
visible

sitive

son
rowtn
volue

ond

ei"is

the

business.

Overoll, our loser shorp focus on quolity education, scole ond pon-lndio pre:;ence ploces
good position to benefit from substontiol opportunities in lndio's emerging etlucation s

ino

Tree House Education & Accessories [imited

Tree House Education and Accessories Limited (NSE code: TREEHOUSE; BSE code: 533540 MCXSX: TREEHOUSE) runs quality preschools and also provides educational services to l(-12 s hools
throughout the country. Tree House has revolutionized the concept of pre-school ped
gy tn
India through the use of innovative teaching methods and child-focused personat care.

For more updates and

wwr,Y.treeh ouseplqvgrou

p. n

et

information

the Company,

please

og

to

& Accessories Ltd.

RegistQred Ottice:

702, Morya House,'C'Wing, Off Link Roacl,

Andheri (W), Mumbai - 400 053'

fe|

Plqtgrcup
'Frcm

Nuert

@ts

*nC"]

022-il51 2384, Fax 022-26051 259

February

2016

To,

To,

Bombay Stock Exchange Ltd.

Phiroze Jeejeebhoy Towers,
Dalal Street. Mumbai-4OO 001

National Stock Exchange of MqX Stock Exchanl e Ltd.

To.

lndia Ltd.
Exchange Plaza, Plot no. C/1, G
Block, BKC, Bandra (E), Mumbai
- 400 051

Suren Road, Andheri

Mumbai - 400 093

Dear Sirs,

Sub.: Intimation to Stock Exchange - Results Presentation for

December 31,2015.

Ref.:

3'd Quarter ended

Scrip Gode: 533540 / Symbol: TREEHOUSE

We are attaching a copy of the 'Results Presentation' in connection with the captioned sub
We request you to kindly take it on your records.

Thanking you,
Yours truly,

Limited

(East),

Tree House Education and Accessories Ltd

Q3 & 9M FY16 Result

Presentation
14 February, 2016

Overview of
Tree House

Overview of Treehouse
Tree House is Indias leading educational service provider operating the largest number of branded
self-operated pre-schools

Indias largest self operated pre-school chain

PreSchools
Self operated pre-school chain targeting a large untapped
segment: the urban aspirational

School management services to K-12 schools in strong

pre-school clusters

K-12

Pre-schools
Pre-school
Business Model

Our Advantage

High-Quality Programs

Self-operated
Pre-schools

Franchise
Pre-schools

OFFERINGS

Playgroup
Nursery
Junior KG
Senior KG
Day Care Service
Teacher Training Course
Summer Camp
Hobby/Activity Class

Tree Houses unique curriculum blends the best of Playway and Montessori methods to
provide a perfect balance of education and fun
Curriculum content delivered uniformly across the country

Holistic Developmental Education

Learning methods develop the childs social, physical, emotional & cognitive skills
Emphasis on role play and socio-dramatic plays (promoting out of the box thinking)
Learning outcomes measured for every child every year
Innovative teaching methods introduce the child to formal education in the most
conducive manner

Student-Focused
Programs are designed to cater to the needs of each child in a customized way to help
physical and intellectual growth

Focused Faculty
Regular nationwide training for all teachers
Teacher productivity and output constantly measured

Tree Houses USPs

Monthly updates to parents through newsletters
Parent involvement in special activities

K-12
K-12 Strategy

Logical extension of pre-school business pre-schools as feeders to K-12

The company enters into long term contracts to provide school

management services
The company endeavors to leverage the Tree House brand
Provide school management services to K-12 schools in strong pre
school clusters

Annuity model with predictable cash flows delivering year-on year

growth
The company owns K-12 infrastructure on which it earns lease rentals.
The company has recently closed the first transaction for monetizing
these assets and will endeavor to conclude the entire process over the
next 24 months
5

Our Network
Nationwide presence
Tree House Pre-schools No. of Centers

Tree House K-12 schools

612
490
302

379

schools
FY12

FY13

FY14

FY15

9M FY16

Tree House Pre-schools No. of Cities

Present in Maharashtra, Gujarat

and Rajasthan

88
63
37

43

FY12

FY13

FY14

FY15

9M FY16

Network as of 31 December , 2015

6

Financial
Overview

Financial Trends
Operational EBITDA (Rs mn) & Margins

Revenues from Operations (Rs mn)

2,075
1,576

1400
1200
1000
800
600
400
200
0

1,821

1,143
772
392

FY11

FY12

FY13

FY14

FY15

9M
FY16

54%

54%

43%
892

27%

609

22%
439
333

60%
50%
40%
30%
20%

169

10%
0%

FY11 FY12 FY13 FY14 FY15

9M
FY16
EBITDA Margin (%)

Diluted EPS (INR)

28%

28%

995

618

420

PAT (Rs mn) & Margins

27%

57% 55%
1,187

EBITDA

700
600
500
400
300
200
100
0

57%

30%

15.7

25%
20%
20%
369
15%

217

10%

92

11.8

9.6

9.5

7.2
4.1

5%
0%

FY11

FY12

PAT

FY13

FY14

FY15

PAT Margin (%)

9M
FY16

FY11

FY12

FY13

FY14

FY15

9M
FY16
8

Q3 & 9M FY16
Performance

Operational Highlights
Pre Schools
net addition of pre-schools in Q3 FY16

GROWTH

centers as on December 31, 2015

The number of self-operated preschools is 621
Ratio of self operated preschools to total preschools is 85.1%
The Companys initiative to provide low cost quality pre-primary
education under the GLOBAL CHAMPS brand is now available at 6
centers in Mumbai.

Present in
cities in India

Entered the city of Faridabad during the quarter

10

Operational Highlights
K-12 School management services

The Company is providing school management services to 24 K-12

schools in 3 states in India

Employee Strength

Total staff strength as on December 31, 2015 is 2,742

Total teacher strength as on December 31, 2015 is 2,610

Day Care

The Company has expanded its daycare foot print, now in 250 centers
due to encouraging response from the parents and the Company
believes that this service will contribute meaningfully in the future. The
Company has entered into tie ups with large employers in the IT, ITES,
banking and consulting space to provide daycare services for their
employees
Corporate highlights
The Board of Directors has approved the Scheme of Amalgamation with
Zee Learn Limited, subject to requisite approvals of shareholders and
creditors of the company, Honble High Court of Bombay and other
statutory regulatory authorities.
11

Financial Highlights
Particulars (in Rs mn)

Q3 FY16

Q3 FY15

Growth

9M FY16

9M FY15

Growth

Revenue from Operations

557.8

531.1

5.0%

1,820.6

1,567.7

16.1%

EBITDA operational

251.0

321.6

(22.0)%

994.5

951.3

4.5%

Margin

45.0%

60.6%

(1560) bps

54.6%

60.7%

(610) bps

PBT

110.5

217.1

(49.1)%

604.3

652.7

(7.4)%

PAT

61.2

151.2

(59.5)%

368.8

437.6

(15.7)%

11.0%

28.5%

(1750) bps

20.3%

27.9%

(760) bps

Margin

12

Management Views
Commenting on the Q3 FY16 results, Mr. Rajesh Bhatia, Managing Director of Tree House, said: Our Q3
performance reflects a cautious operating environment that is reflected in slower mid-session admissions. Meanwhile,
the 162 new centers opened over the last four quarters, including a significant number in the Delhi and NCR region, have
increased operating costs. We see these new centers contribute more meaningfully to profits and cash flows over the next
two years. We are also focusing on efficiently integrating some of our centers to rationalize visible cost expansion and
enhancing center profitability.
We opened 10 new centers this quarter and expect to instead focus on deriving positive contributions from existing
infrastructure. We also maintain our continuing focus on rationalizing K-12 investments, debt reduction and cash flow
expansion.
Our vision for the future remains intact and we believe we are well poised to take our growth beyond the immediate
term challenges. We remain passionate about our goal of creating value driven educational facilities across the country
while strengthening connect with parents and children alike. In this context, our initiative of re-branding over 200
centers as Tree House i is further sharpening our edge in the preschools sector and create meaningful value for the
business.
Overall, our laser sharp focus on quality education, scale and pan-India presence places us in a good position to benefit
from substantial opportunities in Indias emerging education sector.

13

Outlook

Growth Initiatives
Expansion
Continue thrust on expanding pre school center
network in new and existing geographies

Focus of Training and Development

Create a platform to encourage talent growth
Sustained investments towards Tree House's inhouse training system to deliver quality education

Leverage diversified offerings Daycare & Teacher

Training Program
Day care facility is a natural extension of the preschool center and enables the Company to sweat
assets and have optimal utility
Professionally conducted program enables women
to become qualified teachers.

Monetize Assets
Committed towards monetizing investments in
physical assets of K-12 schools and moving towards
an asset-light operating structure

15

Thank you

For further information please contact:

Sanjay H Shah

Shiv Muttoo/Urvashi Butani

Tree House Education & Accessories Limited

Tel: +91 22 61306130

CDR India

E-mail: sanjay@treehouseplaygroup.net

Email: shiv@cdr-india.com

Tel: +91 22 66451207 / 1219

urvashi@cdr-india.com

Disclaimer: This presentation may contain certain forward looking statements, which involve a number of risks,
uncertainties and other factors that could cause actual results to differ materially from those that may be projected by
these forward looking statements. This presentation may also contain references to findings of various reports available
in the public domain. Tree House makes no representation as to their accuracy or that the company subscribes to those
findings.