You are on page 1of 33

Centro

Escolar
University

CONFIDENTIAL

Important Notice and Disclaimer


This report has been prepared by BPI Capital Corporation (BPI Capital) solely for your information and for use at the presentation by BPI
Capital. This report may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or
in part, by any medium or for any purpose. Report means this document, any oral presentation, the question and answer session and
any written or oral material discussed or distributed at the meeting where this Report is made. By attending such meeting, or by accepting
a copy of this Report, you acknowledge and agree to be bound by the following limitations.

No representation or warranty, express or implied, is given as to the accuracy of the information or opinions contained in this Report, and
no liability is accepted for any such information or opinions by BPI Capital or any of its affiliates, directors, officers, employees, agents or
advisers. This information has not been verified by independent experts or assembled collectively and is subject to change, and there is no
guarantee that the information contained in this Report is accurate or complete and not misleading nor that BPI Capital's opinion of the
market is accurate or complete and not misleading. The information included in this Report is subject to updating, completion, revision and
amendment, and such information may change materially. No person is under any obligation to update or keep current the information
contained in the Report. Any opinions, assumptions and estimates are as of the date indicated and are subject to change without prior
notice.

This Report does not constitute a prospectus or form part of any offer or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for, or any offer to underwrite or otherwise acquire any securities, nor shall this Report or any part of it nor the fact
of its distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision
in relation thereto, nor does it constitute a recommendation regarding any securities or transactions.

Prior to entering into any transaction, you should determine, without reliance upon us or our affiliates, the economic risks and merits (and
independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and
consequences of any such transaction. In this regard, by accepting this Report, you acknowledge that (a) we are not in the business of
providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with
any transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise
senior management in your organization as to such legal, tax and accounting advice (and any risks associated with any transaction) and
our disclaimer as to these matters.

BPI Capital, or its parent company, Bank of the Philippine Islands (BPI) or any of their related companies or any individuals connected
with the BPI group accepts no liability for any direct, special, indirect, consequential, incidental damages or any other loss or damages of
any kind arising from any use of the information herein (including any error, omission or misstatement herein, negligent or otherwise) or
further communication thereof, even if BPI Capital or any other person has been advised of the possibility thereof. BPI Capital and its
affiliates, their directors, officers and/or employees may have positions or other interests in, and may affect transactions in securities
mentioned herein and may also perform or seek to perform brokering, investment banking and other advisory or financial services for
these companies.

Outline

Overview of Centro Escolar University


Financial Information
Annex 1: Degree Programs Offered by CEU
Annex 2: Market Overview
List of References

CENTRO ESCOLAR UNIVERSITY

Background
A private, nonsectarian higher education institution established in 1907
Attained university status and was registered as a corporation with the
Securities and Exchange Commission in 1932
Became a publicly listed corporation on November 10, 1986
Has three campuses: Manila, Makati and Malolos with an enrollment of
22,438 for the first semester and 20,262 for the second semester of school
year 2013-2014
Highly recognized for its programs in the health sciences (Dentistry,
Pharmacy, Medical Technology, Optometry and Nursing)
The recognitions from several institutions attest to its quality programs: Full
Autonomy Status from the Commission on Higher Education, Institutional
Accreditation certified by the Federation of Accrediting Associations of the
Philippines, Philippine Quality Award by the Philippine Government, ISO
9001:2008 System Certification and Papal Award Pro Ecclesia Et Pontifice
(For the Church and the Pope)
Recognized by the Institute of Corporate Directors (ICD) as one of the top
15 publicly listed corporations with the highest scores in ICD's 2008
Corporate Governance Scorecard, Silver Category

Campus Location

Malolos
Campus

Makati Campus

Manila Campus
6

Ownership and Management


Stockholder
USAUTOCO, Inc
U.S. Automotive, Co.,
Inc.
Alejandro C. Dizon
Southville
Commercial
Corporation
Others
Total

% Ownership
34.00%
15.02%
13.43%
7.97%
29.58%
100.00%

CEU Board of Directors


Position
Name
Chairman
Basilio C. Yap
Vice Chairman
Ma. Cristina D. Padolina
Director
Benjamin C. Yap

Alejandro C. Dizon

Emilio C. Yap III

Johnny C. Yap

Corazon M. Tiongco
Independent Director Emil Q. Javier

Angel C. Alcala

Source: 2014 Annual Report


7

University Officers
Position
Name
Chairman
Basilio C. Yap
Vice Chairman, President/
Dr. Ma. Cristina D.
Chief Academic Officer
Padolina
Vice President for
Administration
Irineo C. Espino
Corporate Secretary and
Compliance Officer
Atty. Sergio F. Apostol
Vice President for Academic
Affairs
Dr. Teresa R. Perez
Vice President for Research Maria Clara Perlita
and Evaluation
Erna V. Yabut
Acting Vice President for
University Registrar
Dr. Rhoda C. Aguilar
Vice President for Student
Affairs
Carlito B. Olaer
Vice President and Dean of
Studies, Malolos Campus
Flordeliza L. Anastacio
Vice President, Makati
Campus
Olivia M. Limuaco
Treasurer/ Asst. Corporate
Secretary and Asst.
Compliance Officer
Cesar F. Tan
Asst. Treasurer and
Procurement Department
Head
Corazon M. Tiongco
Asst. Controller
Bernardita T. Traje

School/ College Deans


School/ College Deans
Position
Name
School of Accountancy &
Management
Prof. Melito S. Salazar
School of Law & Jurisprudence,
Makati
Justic Josue N. Bellosillo
College of Medical Technology
Dr. Charito M. Bermido
School of Education, Liberal Arts,
Music & Social Work
Dr. Teresita G. Carey
College of Business & Technology,
Malolos
Dr. Nilo V. Francisco
Acting-School of Dentistry
Dr. Pearly P. Lim
College of Education, Liberal Arts &
Science, Malolos
Dr. Elizabeth C. Roces
School of Pharmacy
Dr. Cecilia D. Santiago
School of Science & Technology
Dr. Julieta Z. Dungca
School of Nursing
Dr. Teresita I. Barcelo
College of Optometry
Dr. Jessica F. Torre
School of Nutrition & Hospitality
Management
Dr. Cecilia C. Uncad

Course Offerings

FINANCIAL INFORMATION

10

Stock Information: CEU:PM


Market Capitalization (in PHP)

3,746,488,864.00

Outstanding Shares

372,414,400

Listed Shares

372,414,400

Issued Shares

372,414,400

Free Float Level (%)

26.76%

Last Traded Price

10.06

Open

10.06

High

10.06

Low

10.06

Average Price

10.06

52-week high

12.00

52-week low

9.80

Volume

2,700

Source: Bloomberg (As of 14 April 2015)

11

Financial Highlights
Income Statement (in PHP mn)
Revenues
Tuition and other school fees

31-Mar-15
31-Mar-12 31-Mar-13 31-Mar-14
E

1,405.58

1,448.42

1,550.56

1,641.77

Interest income

5.41

6.51

4.22

5.58

Auxiliary services

0.30

(0.98)

1.72

1.54

27.25

20.52

Miscellaneous
Total Revenues

26.71

26.39

1,438.01 1,480.34 1,583.75


% Growth

2.9%
7.0%

1,669.42
5.4%

Expenses
Cost of services
General and administrative expenses

Interest expense
Loss on sale/retirement of assets

966.24
149.72

965.77
170.55

15.41

13.02

1.28
-

Source: Company filings

Provision for impairment losses

0.24

1,076.30
160.04
10.41

0.71
-

5.29

12

% Growth 1,132.64

1,154.87 1,247.45

1,289.38

Financial Highlights
Balance Sheet (in PHP mn)

31-Mar-12

Current Assets

31-Mar-13

31-Mar-14

243.96

293.16

384.61

3,145.66

3,222.84

3,342.33

Current Liabilities

318.77

363.44

387.89

Total Liabilities

807.64

877.98

881.28

Retained Earnings/(Deficit)

782.09

793.41

871.38

2,338.02

2,344.87

2,461.05

Total Assets

Stockholders' Equity
Book Value per share (PHP/share)

6.28

Source: Company filings

13

6.30

6.61

Comparable Companies

14

Valuation
EBITDA x Current EV/EBITDA

Revenue x Current EV/Revenue

Net Income x P/E

1,000,000,000

6,000,000,000

15

11,000,000,000

ANNEX 1: DEGREE PROGRAMS

16

Undergraduate Degrees in CEU Manila


School of Education, Liberal Arts, Music and Social School of Accountancy and Management
Bachelor of Science in Business Administration in
Work
Bachelor of Secondary Education major in
English
Mathematics
Biological Science
Physical Science
Bachelor of Elementary Education Specialization in
Pre-school Education
Special Education
Bachelor of Science in Social Work
Bachelor in Library and Information Science
- Associate in Library and Information Science
Bachelor of Arts (Curriculum A) major in
Mass Communication - Broadcast
Mass Communication - Journalism
Mass Communication - Performing Arts
Political Science
Bachelor of Arts with 18 units of Education (Curriculum B) major in
Mass Communication - Broadcast
Mass Communication - Journalism
Mass Communication - Performing Arts
Political Science
Bachelor of Music
Bachelor of Music Music Education
Secondary Teacher Certificate (STC) 18 units of Education
Elementary Teacher Certificate (ETC) 18 units of Education

17

Financial Management
Marketing Management
Operations Management
Management Accounting
- Associate in Accounting Technology
Management
Bachelor of Science in Accountancy (5 years)
Bachelor of Science in Legal Management

School of Dentistry
Doctor of Dental Medicine
- Associate in Arts (Pre-Dental Course)

College of Medical Technology


Bachelor of Science in Medical Technology

School of Nursing
Bachelor of Science in Nursing

School of Nutrition and Hospitality Mana


gement
Bachelor of Science in Hotel and Restaurant Management
- Associate in Hotel and Restaurant Management
Bachelor of Science in Tourism Management
Bachelor of Science in Nutrition and Dietetics

Undergraduate Degrees in CEU Manila

College of Optometry
Doctor of Optometry

School of Pharmacy
Bachelor of Science in Pharmacy (4 years)
Bachelor of Science in Pharmacy specialized in Clinical Pharmacy (5 years)
Doctor of Pharmacy (6 years)

School of Science and Technology


Bachelor of Science in Psychology
Bachelor of Science in Biology
Bachelor of Science in Cosmetic Science
Bachelor of Science in Computer Science
- Associate in Computer Science
Bachelor of Science in Information Technology
- Associate in Information Technology
Bachelor of Science in Computer Engineering

18

Undergraduate Degrees in CEU Makati

Gil Puyat
Bachelor of Science in Nursing
Bachelor of Science in Medical Technology
Bachelor of Science in Pharmacy (4 years)
Bachelor of Science in Pharmacy specialized in Clinical Pharmacy (5 years)
Bachelor of Science in Psychology
Associate in Arts (Pre-Dental Course)

Legaspi
Bachelor of Science in Business Administration major in Management
Bachelor of Science in Tourism Management
Bachelor of Science in Computer Science
-Associate in Computer Science
Bachelor of Science in Information Technology
-Associate in Information Technology
Bachelor of Science in Hotel and Restaurant Management
-Associate in Hotel and Restaurant Management
Doctor of Dental Medicine

19

Undergraduate Degrees in CEU Malolos

College of
Education, Liberal Arts and Scienc
e

College of
Management and Technology
Bachelor of Science in Business Administration
major in

Bachelor of Science in Psychology


Bachelor of Arts in Mass Communication
(Curriculum A)

Marketing Management
Financial Management

Broadcast

Management Accounting
- Associate in Accounting Technology

Journalism

Bachelor of Arts with 18 units of Education in


Mass Communication (Curriculum B)

Management
Bachelor of Science in Information Technology
-Associate in Information Technology

Broadcast
Journalism

Bachelor of Elementary Education


Specialization in Special Education

College of Hospitality
Bachelor of Science in Tourism Management

Bachelor of Science in Hotel and Restaurant


Management
- Associate in Hotel and Restaurant
Management

Department of Pharmacy
Bachelor of Science in Pharmacy

Department of Nursing
Bachelor of Science in Nursing

Department of Dentistry
Doctor of Dental Medicine
Associate in Arts (Pre-Dental Course)
20

Graduate School Degrees in Manila


Master of Science in

Master or Arts

Biology
Cosmetic Science
Dentistry Field of Specialization:

Educational Management
Southeast Asian Studies
In Applied Linguistics (English)
Teaching

Orthodontics
Periodontics

Music Education

Guidance and Counseling


Mathematics Education
Nursing (Medical-Surgical Nursing)
Nutrition and Dietetics

Master of Arts in Education


Childhood Education
Library Science
Special Education

Pharmacy
Psychology
Science Education
Social Work

Master of Arts in Nursing

Master of Science
in Hospitality Management

Administration

Tourism Management
Hotel and Restaurant Management

Master of Business Administration

Leisure Management

Master of Business Administration

Master of Science
in Health Science Education

Financial Analysis

Dental Education
Medical Technology Education
Optometry Education

Master of Public Administration

21

Graduate School Courses in Manila and Makati


Manila

Makati

Master in Information Technology


Doctor in Philosophy
Business Management
Guidance and Counseling
Southeast Asian Studies
Higher Education Management

Doctor in Philosophy in
Mathematics Education
Pharmacy

Doctor in Philosophy/ Doctor of Education


Curriculum and Supervision
Educational Management
Science Education

Doctor in Public Administration


Post Doctoral Course in
Total Quality Management in Higher Education

22

Master of Business Administration

OVERVIEW

23

Philippine Forecast on Population and Student


Base
2005

Population

2010

2015

2020

2025

2030

2035

2040

Philippines
85,261,00 94,013,20 102,965,30 111,784,60 120,224,50 128,110,00 135,301,10 141,669,90
0
0
0
0
0
0
0
0

% Growth

2.07%
10.27%
9.52%
8.57%
7.55%
6.56%
5.61%
4.71%
46,769,30 49,617,40
Student Base*
0
0 51,983,800 53,829,000 55,490,300 56,472,100 56,661,600 56,132,800
% Growth
1.38%
6.09%
4.77%
3.55%
3.09%
1.77%
0.34%
-0.93%
Student %
Population
% Growth
Student Base*
% Growth
Student %
Population
% Growth
Student Base*
% Growth
Student %

54.85%

52.78%

50.49%
48.15%
46.16%
National Capital Region

44.08%

41.88%

39.62%

10,787,30 11,552,10
0
0 12,220,500 12,775,900 13,216,700 13,545,900 13,740,300 13,788,000
8.21%

7.09%

5.79%

4.54%

3.45%

5,314,000 5,440,300

5,544,700

5,489,000

5,277,300

1.20%
49.26%

2.38%
47.09%

2,613,600 2,986,200
15.97%

2.49%

1.44%

0.35%

4,998,800 4,709,700

4,416,300

1.92%
45.37%

-1.00%
-3.86%
-5.28%
-5.78%
-6.23%
42.96%
39.93%
36.90%
34.28%
32.03%
Bulacan
3,364,600 3,746,900 4,125,400 4,489,300 4,830,500 5,141,900

14.26%

12.67%

11.36%

10.10%

1,132,600 1,235,900

1,306,500

1,355,000

1,404,200

8.82%

7.60%

6.45%

1,435,200 1,445,200

1,429,700

11.10%

9.12%

5.71%

3.71%

3.63%

2.21%

0.70%

-1.07%

43.33%

41.39%

38.83%

36.16%

34.04%

31.97%

29.92%

27.80%

Source: National Statistics Office 2000

* Student Base Population from 0 to 25 years old

24

Regional Snapshot
The City of Manila is the economic
and political capital of the
Philippines.
The City of Makati is the financial
center of the Philippines; it has the
highest concentration of
multinational and local corporations
in the country.
The City of Malolos is the capital of
the province of Bulacan and serves
as the seat of the provincial
government. It is hailed as one of
the centers of education in Central
Luzon region of the Philippines. The
city is host to numerous schools in
the primary, secondary and tertiary
level.

NCR REGION QUICK FACTS


GDP (Regional)
(2013)
GDP Growth (Regional)
(2013)

P4,290 B
7.2%

Income Per Capita (2012)

379,000

Poverty Incidence
(2012)
Inflation Rate
(2014)
Labor Force Participation
(2014)
Employment Rate
(2014)
Underemployment Rate
(2014)

2.6
5.6%
64.4%
94.0%
18.7%

Source: NSCB & Interstar


Research

25

Educational Attainment
Philippines

Central
Luzon

National Capital Region

8%

6%

5%
16%

39%

25%

22%
44%

57%

23%
29%

29%

No Grade Completed /
Preschool
Some Elementary
Elementary Graduate and Some
High School
High School Graduate and Higher
Source: National Statistics
Office 2008
26

Educational Landscape City of Makati


Breakdown of Academic Institutions
in Makati

Educational level/s offered

Public

Primary

Elementary

Private

Total

35

35

24

25

Secondary

Tertiary

23

24

20

20

Primary & Elementary

Elementary & Secondary

Primary , Elementary & Secondary


Primary, Elementary, Secondary &
Tertiary
TOTAL

35

Source: Department of
Education

27

22

1
105

6
22
1
140

Educational Landscape City of Manila


Breakdown of Academic Institutions
in Manila

Educational level/s offered

Public

Private
10

10

Elementary

66

67

Secondary

26

33

38

42

Primary

Tertiary

Total

Primary & Elementary

26

26

Elementary & Secondary

12

13

25

Secondary & Tertiary

Primary , Elementary & Secondary

45

Elementary, Secondary & Tertiary


Primary, Elementary, Secondary &
Tertiary

10

10

TOTAL

108

164

272

Source: Department of
Education

28

6
45
8

Educational Landscape City of Malolos


Breakdown of Academic Institutions in
Malolos*

Educational level/s offered

Public

Private

61

66

38

59

97

Secondary

41

50

Tertiary

24

25

Primary
Elementary

Total

Source: Department of Education


* Due to limited information on the schools in Bulacan, a school offering multiple
levels may be counted twice (i.e. Primary and Elementary, Elementary and
Secondary)

29

Economic Environment City of Makati


Makati is the countrys premier business district. It has the largest
concentration of commercial activities in the Philippines, and the countrys
primary link to international finance and the global economy. The City has
2.75 million square meters of prime office space and accounts for 60% of
Metro Manilas prime office space inventory.
The number of establishments showed an increasing trend from 2007 to
2010; from 55,129 to 60,304.
For 2011, services comprised a majority of establishments, followed by
General Merchandise, and Real Estate. Manufacturing represents the lowest
number of business establishments, which can be attributed to the shifting
of manufacturing companies to other peripheral areas.

30

Economic Environment City of Makati


Number of establishments
Industry
General Merchandise
Services
Real Estate
Convenience Stores,
Restaurants, and
Amusement Places
Import/Export
Manufacturing
Banks and FinanceRelated Business
Special Business
Permits
Total

2006

2007

2008

2009

2010

2011

20,402

16,481

16,650

16,611

17,644

17,546

19,825

18,842

19,117

19,353

20,655

19,629

10,043

9,616

9,726

9,797

10,150

9,703

4,518

4,163

4,194

4,389

4,745

4,473

1,971

1,453

1,471

1,702

2,115

2,747

1,390

1,131

1,144

1,197

1,261

1,123

3,825

3,443

3,477

3,529

3,734

3,594

105

61,974

55,129

55,779

56,578

60,304

58,920

31

References

Centro Escolar University website ww.ceu.edu.ph


Department of Education website www.deped.gov.ph
City of Manila website manila.gov.ph
City Government of Malolos website www.maloloscity.gov.ph
City of Makati website www.makati.gov.ph
Philippine Statistics Authority, October 2014 Labor Force Survey
National Statistics Office, 2000 Census-based Population Projection in
collaboration with the Inter-Agency Working Group on Population Projections
National Statistics Office, 2008 Functional Literacy, Education and Mass
Media Survey

32

Thank You.
Centro Escolar University

33