Investor Presentation

May 2011

2

Educomp is the largest Education company in India and the only company spread across the entire Education Ecosystem

Educomp currently works with ~25,000 schools and serves over 15.5 million learners and educators across the world

Educomp owns India’s largest K12 content library with over 16,000 modules of rich 3D multimedia educational content reaching out to 3.9 million students across ~5,500 private school and 5.8 million students across ~10,550 government schools

Educomp runs ~800 pre-schools, 50 brick & mortar K12 schools, 7 higher-ed colleges, over 275 vocational training centers and has 2.5 million users of its various online businesses

All businesses have a high component of intellectual property and high branding

The company has been growing Revenues & Profits at a 5yr CAGR of over 100% with EBITDA margins close to 50%

Mission: Be among the top five Education Companies Worldwide by 2012

About Educomp

3

2 – 5 years 5 – 18 years 18 – 21 years 21 – 25 years

Education Life-Cycle

Presence across entire Educational Life Cycle

Pre-Schools

Digital Content Solutions

Higher Education Vocational Education

Professional Development

High Schools

Admissions Advisory Services

Tutoring Services Test Preparation

E-learning Platforms

Assessments & Counseling

Online & Supplemental Education

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Smart Class: Teacher-led educational content solution that dramatically improves learning outcomes in Private Schools. Market leader with presence in 5534 schools

EduReach (formerly ICT): Turnkey solutions for computer aided learning in government schools; Only company to have content in 10 regional languages. Market leader with presence in 10550 schools across 13 states

School Learning Solutions Higher Learning Solutions

K12 Schools Online, Supplemental & Global Initiatives

Pre-Schools (~799 franchisee sign-ups) Roots to Wings: Educomp’s own pre-school brand; currently 220 pre-

schools franchisee sign-ups EuroKids: 50% stake in Eurokids, the largest pre-school chain in India

with 579 pre-schools franchisee sign-upsVendor to Schools owned & run by independent trusts (currently 50

schools operational, visibility of 81 schools) Millennium Schools: K12 schools in Tier I and Tier II cities Takshila Schools: K12 schools in Tier III and Tier IV cities Universal Academy Schools: Budget schools brand targeted at

semi-urban towns with a tuition fee of Rs.800 per month Le Mont High Schools: International Curriculum schools

Professional Development: Teacher Training in technology integration, pedagogy and best classroom practices. Trained 1.6million teachers till date

JV with Raffles Education: Professional development programs in Fashion Design, Management, B.Com etc. across 7 colleges

JV with Pearson: Vocational Training programs in English Language training, Accounting, IT, Retail etc. across 279 centers

LearningHour: Premium tutoring centers Mathguru: India’s first & largest online math tutor & content portal WizIQ: Internet Learning Platform to connect students and teachers Learnhub: Social Learning Network Studyplaces: Education portal for admission advisory services EducompOnline: Online Learning & Testing platform Vidya Mandir Classes: India’s premier IITJEE Test Prep organization Gateforum: India’s premier GATE Test Prep organization Learning.com: Leading web based K12 Company in US Ask-N-Learn: Singapore's largest K12 company

The only Education Ecosystem Company In India

5*CLSA Report March 2008

$ 1.4 billion

Books/ CD Roms/ Stationery/

Multimedia in School

$ 7 billion$ 20 billion

Higher Education

K12 Schools $ 40bn

FY’09

$ 4 billion

Vocational Training

$ 7 billion

Test Prep./ Tutoring

FY’14

$ 80bn

$ 39 billion

$ 7 billion

$ 15 billion

$ 4 billion$ 15 billion

India Education Overall Market estimated at $40bn growing at CAGR 16%

The Education opportunity in India is estimated at $40 billion

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Educomp benefits from huge cross-selling opportunities by monetizing students across the education life cycle from age 2 to age 25 years

Flawless execution demonstrated across years

Demonstrated innovation in products: SmartClass, Millennium Learning System, One-on-One Learning, ETEN, VSAT technology, Online learning, Technology integrated Supplemental education etc.

High investment in R&D: 400 people in content development, over 100 people in non-digital learning materials

Best in class partnerships & Joint Ventures: Raffles Education Corp. for Higher Education and Pearson plc for Vocational Education

Highly entrepreneurial & experienced management team

Best positioned to benefit from the growing middle class aspirations, growing consumption of quality Educational products as well as growing numbers (because of economic growth, urbanization as well as high birth rates)

Investment case for Educomp

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High growth:

FY10 consolidated revenues ~$230 million growing at a 5yr CAGR of 108%

FY10 consolidated EBITDA ~$107 million growing at a 5yr CAGR of 106%

FY10 consolidated PAT ~$60 million growing at a 5yr CAGR of 110%

High profit margins:

EBITDA margins approx. 46% over the last 5 years

PAT margins approx. 25% over the last 5 years

Business models with annuity type revenue streams (3yr to 12yr annuity streams)

Low levels of penetration even in our most scaled businesses

Multiple engines of growth & value creation – many of them in early stage

Multimedia in schools

K12 schools

Higher Education

Vocational Education

Supplemental Education

Internet/ Online Learning

Investment case for Educomp (cont’d)

8

Multiples engines of growth & value creation

Current Mkt Size Educomp Presence Current Penetration Market Position Value Creation

Multimedia Content

$160m SmartClass <1.5% No. 1 player High

ICT $90m EduReach <2% No. 1 player Medium

Pre Schools $1bn Roots to Wings, Eurokids <3% No. 1 player High

K12 Schools $20bn Millennium, Takshila, Universal Academy, Le Mont HighShortage of 200,000

schoolsNo. 1 corporate

playerHigh

Professional Development

$15m Teacher Training NM No. 1 player Low

Higher Education

$7bn Raffles JVShortage of 1500

universitiesGrowing presence High

Vocational Education

$1.4bn Pearson JV NMAmong Top 5

playersHigh

Online & Supplemental

$7bnMathguru, WizIQ, VMC, Gateforum, Learnhub, Learning

Hour, EduIgnite, EducompOnline, StudyplacesNM

Largest e-learning footprint

High

Global N/A Learning.com, Ask-n-Learn NM NM High

Educomp – Business Description

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What is SmartClass

• Solution designed to assist teachers & enhance students’ academic performance

• Also enables teachers to instantly assess and evaluate the learning achieved

How does it work

• India’s largest Digital Content library of over 16,000 modules of curriculum-mapped, multimedia rich, 3D content

• Classrooms are equipped with Plasma screens, Interactive digi-boards and overhead projectors

No of Schools Signed

Covering 5534 schools and ~3.9 million students

90 331 9331737

30773921

45855534

0100020003000400050006000

FY06

FY07

FY08

FY09

FY10

Q1FY

11

Q2FY

11

Q3FY

11

CAGR 142%

SmartClass: Empowering Teaching, Inspiring Learning

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Overview of ICT Solution

• Educomp participates in government initiatives in a ‘Public Private Partnership’ model to IT enable ~1,000,000 government schools in India

• Educomp sets up Computer Labs in Govt. Schools and provides: Multimedia Content in regional languages

Testing and certification in computer education

Full time assistants as well as teacher training

Monitoring and Supervision

No of Schools Signed

Covering 10,550 schools and ~5.8 million students

600

2808

6004

12012

15426

0

4000

8000

12000

16000

FY06 FY07 FY08 FY09 FY10

CAGR 125%

EduReach: Partnering with Govt. to Bridge the Digital Divide

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First structured and process driven IP in the fragmented space for early childhood education (2 to 4 years)

220 pre-schools franchisee sign-ups till date catering to over 8300 kids

Created pioneering IP of over 100,000 pages

Roots-to-Wings has been awarded 'Emerging Franchisor of the Year 2008' for excellence in Franchising and Business Development, by Franchise India Holdings Ltd.

Eurokids: India’s leading chain of Pre-Schools

579 pre-schools franchisee sign-ups in the

country catering to over 39,800 kids enrolled from age 2-4

11 Euroschools (K12 schools), operational on Franchise Basis

Recipient of ‘Best Franchisor Award, 2008’ at “Franchise India 2008”

Pre-Schools – India’s largest Pre-School company with ~800 Pre-Schools

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Shortage of 200,000 schools in the country

Over 100million school-age children not attending school

High birth rates in the region, leading to increase in enrollment numbers

Market Scenario Educomp’s Goal

Portfolio of Brands Strong R&D Capability

K12 schools in Tier I & Tier II cities

Co-branded schools with Shriram Schools

Co-branded schools with PSBB group of Schools

K12 schools in Tier III and IV cities

Budget schools with a tuition fee of Rs.800 per month

International Curriculum schools

Educomp aspires to set up 150 schools in the country

Currently 50 schools under operation with 25,000+ students

Over 750 textbooks and workbooks

Over 19,000 Lesson Plans

Over 26,000 worksheets

Over 11,000 Activities and 3,000 projects

Over 500 Teaching manuals

Visibility of 81 schools

India’s middle class has a high willingness to pay for good education Edu-Schools

Creating core K12 Schools capacity

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Important characteristics of K12 Schools business

Assured annuity type revenues till perpetuity and lock-in of customers for 14 years (2 years in Pre-School and 12 years in High School)

High margins in steady state

High return on capital employed in the range of 30-35%

Recession proof business with no volatility

Negative Working Capital business

High demand supply gap ensures high capacity utilization in all schools

High willingness in Indian middle class to pay for good education: Spending on Education is the highest non-food expense category in the consumption basket and is mostly non-negotiable spend

With high growth rates in the country and rising disposable income of middle class parents, there is a high propensity to pay for quality education

Characteristics of K12 Schools business

15Feb 2011 15

The Millennium School, Lucknow PSBB Learning Leadership Academy, Bangalore

The Millennium School, Mohali

Chiranjiv Bharti, Sushant Lok, Gurgaon The Millennium School, PanipatThe Millennium School, Noida

The Millennium School, Amritsar The Millennium School, PatialaThe Millennium School, Kurukshetra

Creating core K12 Schools capacity

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Takshila School, Hoshiarpur Mussoorie International SchoolPSBB Millennium School, Coimbatore

The Millennium School, Meerut Le Mont High, LavasaThe Millennium School, Nagpur

Chiranjiv Bharti School, Palam Vihar, Gurgaon PSBB Millennium School, Chennai PorurPSBB Millennium School, Chennai OMR

Creating core K12 Schools capacity

17Feb 2011 17

Takshila School, Ahmednagar Millennium School, BhatindaChiranjiv Bharti School, Sushant Lok, Gurgaon

The Millennium School, Indore PSBB Millennium School, GST Road, ChennaiUniversal Academy, Dehradun

Shriram Millennium School, Noida Millennium School, Agra

Creating core K12 Schools capacity

Millennium School, Karnal

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Current Location of Schools (Visibility* of 81 Schools, 50 currently Operational)

* Visibility of Schools covers all Schools (including Dry Management, land sites and under-construction sites

Rapidly expanding Pan India Presence

Chennai

Bangalore

Musoorie

Mohali

Pune

Ludhiana

Noida

GurgaonPanipat

Lucknow

Amritsar

OperationalLand Acquired

Takshila Schools

Hoshiarpur

Ahmednagar

Gaya

Faridabad

Coimbatore

Gwalior

Meerut

HanumangarhGhaziabad

Sangli

Barnala

Jalna

Tirupur

Jodhpur

Hyderabad

Davangere

Guwahati

Bazpur

Kashipur

Gadarpur

Universal Academy/ Vidya Prabhat

Dehradun

Bhatinda

Jalandhar

Kurukshetra AgraKarnal

Patiala

Ambala

Kanpur

Nagpur

Salem

Madurai

Erode

Tirunelveli

Kundli

Reddipalayam

Trichy

Nuh

Indore

Firozpur

EuroSchool

Airoli

Sricity

Ahmedabad

Nadiad

Tura

HassanTumkur

Sirka

Patns

Bhuvneshawar

Begusarai

Porur

Alwar

Mysore

Le Mont High

Nagina

Taoru-Mewat

Le Mont High

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7 ‘Raffles Millennium International’ colleges operational in Delhi, Bangalore, Chandigarh, Kolkata, Hyderabad, Ahmedabad and Chennai

RMI offers courses in Fashion Design, Interior Design, Fashion Marketing, Graphic Design, Product Design, Jewellery Design, Commerce and Interactive Multimedia Design

International faculty from US, UK, Italy, Spain and Singapore

Got AICTE approval to launch Engineering & PGDM programs in July/August 2011 in Greater Noida

Chennai Campus

Delhi Campus

An Educomp Raffles Joint Venture

JV with Raffles for opportunities in Higher Education

Ahmedabad Campus Greater Noida Campus

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Network of 115 centers in place with a target to reach 150 centers

Over 37,400 students enrolled

ETEN ACE (Civil Services and Bank PO) pilots underway

Piloting ETEN Academy of Competitive Exams (over 100 enrolments)

Delivery channels in 110 colleges and runs 10 Robotics labs

Over 4,000 students enrolled

Programs for Engineering and MBA in place

Rolled out CCNA & Embedded Systems courses; plans to roll out Telecom course

Vocational Network of 55 centers signed up with over 11,000 enrollments

Sales program launched in 5 centers; Retail program to be launched in December 2010

Launched Media course with NDTV

Launched Oracle and Accounting courses

Various government projects worth Rs20 crores in hand

JV with Pearson for opportunities in Vocational Education

An Educomp Pearson Joint Venture

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Supplemental

Educomp Supplemental - A unique Supplemental Education platform

Admissions Advisory Services

Tutoring Services

Test Preparation

E-learning Platforms

Assessments & Counseling

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:

Premier provider of Web-delivered K12 curriculum and assessments

Digital Learning Environment products

Reach across 7,700 schools, 1550 school

districts and 3.2 million students and 125,000 teachers across the US

Unparalleled distribution access and strong footprint in the US

US is the largest education market in the world

Leading K12 education company in Singapore

Catering to over 230 educational

institutions across Singapore, China,

Thailand, Philippines, Vietnam, Japan and

Brunei

Started groundwork to launch SmartClass in China through CDEL

(China Distance Education Holdings)

Content Leadership in North America & South East Asia

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26%46% 45% 44% 46% 46%

21%25%26%25%

0%10%20%30%40%50%

FY06 FY07 FY08 FY09 FY10EBITDA Margin PAT Margin

Revenue Growth EBITDA Growth

Rs 1 Cr = Rs 10 Million

56110

286

634

1,041

0

200

400

600

800

1,000

1,200

FY06 FY07 FY08 FY09 FY10

CAGR 108%

PAT Growth

1429

71

133

272

0

50

100

150

200

250

300

FY06 FY07 FY08 FY09 FY10

CAGR 110%

Rs.Cr

Rs.Cr

EBITDA & PAT Margins

Financials Snapshot (Consolidated basis)

2650

125

290

480

0

100

200

300

400

500

FY06 FY07 FY08 FY09 FY10

CAGR 108%

Rs.Cr

26%

46% 45% 44% 46% 46%

21%25%26%25%

0%

10%

20%

30%

40%

50%

FY06 FY07 FY08 FY09 FY10

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Amount in Rs cr

* Other income includes foreign exchange gain/ loss

Key Ratios (as a % of Net Income from Operations) Q4 FY'09 Q4 FY'10 FY'09 FY'10EBIDTA Margin after minority interest & pre-acquisition profits 40.0% 47.6% 45.8% 46.7%PAT Margin after minority interest & pre-acquisition profits 24.5% 18.1% 20.9% 26.1%Total Expenditure 59.5% 52.3% 53.0% 53.3%Consumption of Raw material 25.9% 14.0% 17.8% 15.6%Staff Cost 16.5% 16.0% 18.7% 17.2%Selling, Distribution & Administration expenses 17.1% 22.2% 16.4% 20.3%

Particulars Q4 FY'09 Q4 FY'10 % Chg YoY FY'09 FY'10 % Chg YoYNet Income from Operations 226.5 333.1 47.1% 634.2 1,040.5 64.1%Total Expenditure 134.7 174.178 29.3% 336.4 554.7 64.9%

Cost of Goods Sold 58.6 46.6 -20.6% 113.2 162.1 43.2%Staff Cost 37.3 53.2 42.4% 118.8 179.3 50.9%Selling, Distribution & Administration expenses 38.8 73.9 90.7% 104.2 211.6 103.1%Prior Period Items & Miscellaneous Items 0.0 0.5 NA 0.2 1.8 702.9%

EBIDTA (before minority interest and share of profits of associates) 91.7 158.9 73.2% 297.8 485.8 63.1%Share of profit in associates - 0.01 NA 0.8 0.0 NAMinority interest / Pre-acquisition profit 1.2 0.4 -63.3% 6.7 6.0 -9.8%EBIDTA (after minority interest and share of profits of associates) 90.5 158.4 75.0% 290.4 479.8 65.2%Depreciation & Amortization 28.4 20.1 -29.3% 80.4 113.8 41.6%Finance Charges 8.0 12.8 60.3% 18.4 48.9 166.1%OPBT 55.3 125.9 127.7% 199.0 323.1 62.3%Other Income 38.7 10.4 -73.1% 21.9 116.7 433.9%PBT 94.0 136.4 45.1% 220.9 439.9 99.1%Tax (including deferred) 37.3 75.5 102.8% 80.7 162.5 101.3%PAT before minority interest & pre-acquisition profits 56.8 60.8 7.2% 140.2 277.3 97.8%PAT after minority interest & pre-acquisition profits 55.6 60.4 8.7% 132.7 271.3 104.4%Basic EPS (Rs.) 6.4 6.4 -0.6% 15.4 29.3 90.7%Diluted EPS (Rs.) 6.3 5.8 -6.7% 15.0 27.3 82.0%

Note: FY09 figures are un-audited as disclosed to Stock Exchange in Q4 FY09

FY10 Financial Statements (Consolidated basis)

Income Statement

Key Ratios

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Revenues Q4 FY'09 Q4 FY'10 % Chg YoY FY'09 FY'10 % Chg YoYSchool Learning Solutions 166.5 269.0 61.5% 430.3 806.5 87.4%Higher Learning Solutions 8.7 7.8 -10.9% 30.6 28.5 -6.9%K-12 Schools 23.7 30.2 27.1% 62.3 98.3 57.8%Online, Supplementary & Global 27.5 26.2 -4.7% 110.9 107.2 -3.4%Total Net Sales/ Income from Operations 226.5 333.1 47.1% 634.2 1,040.5 64.1%

PBIT Q4 FY'09 Q4 FY'10 % Chg YoY FY'09 FY'10 % Chg YoYSchool Learning Solutions 72.3 162.6 124.8% 210.1 448.3 113.4%Higher Learning Solutions 1.3 (3.9) NA 9.5 (10.7) NAK-12 Schools 9.8 8.8 -9.5% 30.6 33.1 8.1%Online, Supplementary & Global 0.7 (4.0) NA 17.9 (16.7) NA

84.0 163.6 94.6% 268.1 454.0 69.4%Less: Interest (Net) 8.0 12.8 60.3% 18.4 48.9 166.1%Other un-allocable expenses (net of un- allocable income and prior period items)

(17.8) 14.3 NA 28.8 (34.7) NA

Total Profit before Tax 93.8 136.4 45.4% 220.9 439.9 99.1%

PBIT Margins Q4 FY'09 Q4 FY'10 FY'09 FY'10School Learning Solutions 43.4% 60.5% 48.8% 55.6%Higher Learning Solutions 14.6% NA 30.9% NAK-12 Schools 41.2% 29.3% 49.1% 33.6%Online, Supplementary & Global 2.4% NA 16.2% NA

Revenue Break up Q4 FY'09 Q4 FY'10 FY'09 FY'10School Learning Solutions 73.5% 80.8% 67.9% 77.5%Higher Learning Solutions 3.9% 2.3% 4.8% 2.7%K-12 Schools 10.5% 9.1% 9.8% 9.4%Online, Supplementary & Global 12.1% 7.9% 17.5% 10.3%

Amount in Rs cr

Note: FY09 figures are un-audited as disclosed to Stock Exchange in Q4 FY09

FY10 Financial Statements – Segmental Analysis (Consolidated)

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Q3FY11 Consolidated Income Statement

Q3 FY11 Q3 FY10 YoY Q2 FY11 QoQRs Cr Rs Cr % Rs Cr %

IncomeSales & Service income 357.5 260.1 276.8Other income 8.7 15.8 8.4Total Income 366.2 275.9 33% 285.2 28%

ExpenditureCost of goods sold 69.8 24.8 59.5Personnel expenses 65.1 46.8 63.2Administration and other expenses 57.6 55.0 48.2Finance charges 27.9 13.9 21.2Depreciation 20.1 33.8 20.8Total Expenditure 240.5 174.1 38% 212.9 13%

Profit before tax 125.7 101.6 24% 72.3 74%PBT Margin 34% 37% 25%

Provision for tax 25.3 37.5 14.1

Pre-acquisition profits 0.2 -0.1 -1.6Share of profit in associates 0.5 0.0 0.6Minority interest 3.0 3.0 1.4Profit after tax,minority interest & pre-acquisition profits 96.7 61.2 58% 57.8 67%PAT Margin 26% 22% 20%

EBITDA 162.4 136.6 19% 103.4 57%EBITDA Margin 44% 49% 36%

EBIT 142.3 102.8 38% 82.6 72%EBIT Margin 39% 37% 29%

EPS (Rs)Basic 10.13 6.48 56% 6.06 67%Diluted 9.23 6.08 52% 5.47 69%

Consolidated Financials

27

Q3FY11 – Segmental Analysis (Consolidated)

Q3 FY11 Q3 FY10 YoY Q2 FY11 QoQRs Cr Rs Cr % Rs Cr %

School Learning Solutions 279.4 198.7 41% 192.3 45%K12 Schools 30.4 25.1 21% 32.1 -5%Higher Learning Solutions 14.6 7.8 87% 13.7 7%Online, Supplemental & Global 33.1 28.5 16% 38.7 -14%Total 357.5 260.1 37% 276.8 29%

Q3 FY11 Q3 FY10 YoY Q2 FY11 QoQRs Cr Rs Cr % Rs Cr %

School Learning Solutions 170.9 121.6 41% 88.8 92%K12 Schools 10.7 10.3 3% 12.9 -17%Higher Learning Solutions -6.0 -4.1 NM -6.5 NMOnline, Supplemental & Global -4.4 -4.7 NM 3.1 NMTotal 171.1 123.1 39% 98.3 74%

Q3 FY11School Learning Solutions: Smart Class 87 ICT 52K12 Schools 22Higher Learning Solutions 4Online, Supplemental & Global 3Total 168

Debtor Days*

Revenue by Segments

EBIT by Segments

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Consolidated Balance Sheet

As at 31st Dec 2010 As at 30th Sep 2010Sources of funds Rs Cr Rs CrShareholders' fundsShare capital 19.1 19.1Reserves and surplus 1,974.2 1,720.3ESOP outstanding account 14.7 12.4Minority interest 235.7 205.1Loan funds 1,461.3 1,400.2Deferred tax liability (Net) 9.7 3.1Total Sources of Funds 3,714.7 3,360.2

Application of fundsGoodwill 819.8 634.4Total Fixed Assets 1,589.1 1,399.8Foreign currency monetary long term translation account -1.9 -3.0Investments 141.3 78.2

Current assets, loans and advancesInventories 35.3 23.8Sundry debtors 551.2 748.2Cash and bank balances 504.5 472.9Loans and advances 440.5 327.6Other current assets 17.3 21.0Less : Current liabilities and provisionsLiabilities 343.7 323.6Provisions 38.6 19.0Net current assets 1,166.4 1,250.8

Miscellaneous Expenditure[to the extent not written off or adjusted] 0.0 0.0Total Application of Funds 3,714.7 3,360.2

Consolidated Balance Sheet

29

60.08%

4.17%

Equity Shares Outstanding-95,539,396

Company has sub-divided each of the existing Equity Shares of the face value of Rs.10/- each fully paid-up into five Equity Shares of the face value of Rs.2/- each fully paid-up.

Shareholding Pattern – As on Dec 31, 2010

Promoters, 49.8%

FIs/ Banks/ MFs, 1.7%

Foreign Institutional Investors/ Foreign Financial

Institutions, 37.1%

Body Corporate, 3.3%

Public, 6.7% Others, 1.4%

30

For any Investor Relations queries please contact:

Ms. Sangeeta Gulati, CFO Educomp Solutions LimitedEducomp Towers,514, Udyog Vihar Phase III Gurgaon – 122 001, HaryanaEmail: investor.relations@educomp.comPh: 0124 - 4529000

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