CIBT Education Group Inc. & Global Education City Presentation
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CIBT Education Group Inc. &
Global Education City Presentation
TSE: MBA | OTCQX: MBAIF ver. Web 180.1
This document is for information purposes only and is not an offer to sell,
nor a solicitation of an offer to purchase, any securities. It does not purport
to contain all of the information that a prospective investor may require and
it is not intended to provide any legal, tax or investment advice.
Investing in Student Housing Corp Video 30” Intro
Forward-Looking Statements & Disclaimer
This presentation includes statements that may constitute “forward-looking” statements, usually
containing the word “believe,” “estimate,” “project,” “expect,” “plan,” “anticipate” or similar
expressions.
Forward-looking statements inherently involve risks and uncertainties that could cause actual results
to differ materially from the forward-looking statements. Factors that would cause or contribute to
such differences include, but are not limited to, continued acceptance of the product and services of
CIBT Education Group Inc. and Global Education City Holdings Inc. (collectively the “Company”) in the
marketplace, competitive factors, changes in regulatory environments, and other risks detailed in the
Company’s periodic report filings which can be found under the Company’s profile on the SEDAR
website (www.sedar.com).
In addition, there is no certainty that certain projections described in this presentation will be
achieved according to plan. In making these forward-looking statements, the Company disclaims any
obligation to update these statements for revisions or changes after the date of this presentation
except as may be required by law.
This presentation is not for public distribution therefore must be treated as Private and Confidential
and intended for designated recipients only.
2
Education Services Enhanced by Significant
Real Estate Returns
Since 1994
Education Services Education Real Estate
SSC, SSLC, VIC-CC, GEA, CIBT GEC
Since 1903 30 Locations 11*1 Projects 16*1 Buildings
50 Pathway 72 Partner Students from
5 Offices
Partners Schools 77 Countries
1.5M*1 3,650*1 Beds
150+ programs 2,400 Agents 850 operational ,2550 under
Buildable S.F development, 250 under
contract
12,000 Students $1.4 Billion Portfolio
5,000 domestic students, 7,000 international 5 operational , 4 under-construction, 5 rezoning, 2 under contract
$186M $0.55 Billion
600+ 46*1 $71M*2 $24M*2 $451M*3
Equity Financing
Staff Locations Revenue EBITDA Asset
SSC
Raised*4 Completed*4
GEC Living
*1: one location (two buildings) under contract, *2: 2019 Annual Audited, *3: F2020 Q3 , *4: Year 2015 - 2020 3
Coping with the COVID 19 Outbreak
Factors contributing to higher demands for rental-housing
Current event: Universities are vacating their dormitory-style housing to prevent community
transmissions of the COVID 19 virus
*Solution: GEC builds self-contained apartments as compared to dormitory-style/co-living
properties
Current event: Homestay parents are cancelling and rejecting new student arrivals because
homestays are typically renting out a bedroom within a house hence higher risk for virus
infection for other family members living in the same house
*Solution: GEC accepts new arrivals by placing them in self-contained single-occupancy units
for two weeks
Current event: Many international students are unable or unwilling to go home due to the
severity of the virus situation back home, add travel risk and self-isolation upon arrival at their
home country
*Solution: GEC extends their summer stay at adjusted price
In summary, GEC is seeing marginal impact due to business travelers and tourist cancellations
while recovering its bookings from the student reservations
4
COVID 19 Statistic for Metro Vancouver
Among the top 10 most popular destinations in the world for international students,
Vancouver is one of the safest city with the lowest number of COVID-19 cases
BCCDC
5
International Education - Market Size in Canada
Best Country for International Education in the world International Student Population in Canada,
U.S. News 2017 and Educations.com in 2020 B.C. & Vancouver 2019
Canada (Exc. BC)
133,997 Rest of BC
Metro Vancouver
10,678 497,805
Total 642,480
In Canada as of Dec 2019
ECONOMIC IMPACT OF INTERNATIONAL STUDENTS IN Averaged rent for single occupancy - $14k/year
CANADA
International students spent $15.5B annually including Market size in B.C alone – over $1 billion
tuition and living expenses (2016)
Created over 170,000 jobs and generated over $21.6B to CAGR Growth rate for International students enrolled in
Canada’s GDP (2018) public post-secondary system in B.C since 2008 - 300%
Canada’s international student enrolment grew by 13%
last year (2018), marking a third consecutive year of Rental vacancy rate in Metro Vancouver, CMHC – 1%
double-digit growth and an overall increase of 97% in
the five years since 2014 Dormitory waitlist for UBC, Sept, 2019 - 6,000
Immigration, Refugees and Citizenship Canada (IRCC) Dormitory waitlist for SFU, Sept, 2019 – 800
CBC News
6
Sprott Shaw College, a Century of Growth since 1903
Nursing
Program
Business
Program
HCA
Program
ECE
Program
7
GEC Business Model
1) Identify property , form
limited partnership,
invest initial capital
2) Design into higher density
8) Repeat the model and smart furniture, improve
security and comfort
7) Manage property for 5 3) Raise capital and
to 21 years finance the construction
6) Sell to institutional buyer 4) Oversee construction, fill
seeking high yield return the property with our
and stabilized income pipeline of students
5) Stabilize the income
Smart Furniture
8
Competitive Advantage
GEC Structure Competitions & Rental Apartments
1 High density design using smart-hideaway furniture Spacious design caters to multi-family
Located at subway stations & traffic artery in Located at suburbs or small towns targeting a
2
Vancouver specific school
Student centric rental apartments for flexible exit COVID-19 causes concerns to the co-living &
3
dormitory, purpose build models
School operator with 27 years of education sector Without education sector experience and student
4 experience enrolling 12,000 students annually source
5 Supply accommodation service to 72 schools Rely on a single school with single customer risk
6 Diversified student base from 77 countries Mostly domestic students
7
Economy of scale & shared resources within Hard to achieve scale when spread out to many
Metro Vancouver cities
Advanced business model to develop Education Super
8
Limited to student dormitory only
Centers by integrating schools with student housing
9
GEC Difference
10Demographic of Tenants – June 2020 Post COVID 19
Brazil Other
Other Schools 6% Taiwan 1% 6%
Singapore 2% 2%
International Language
Academy of Canada 6% USA 3%
India 3%
Korea 4%
Private colleges - VFS,
VanArts, UCW, LaSalle China 4%
Public schools - UBC, 40% Canada 70%
Langara, KPU, SFU, Sprott Shaw College,
BCIT Japan 5%
SSLC 8%
40%
By School By Country of Origin
11Vancouver Real Estate Market 43 Years Trend
GEC’s Market Position
“Student Centric Rental Apartments ”
Rental Crisis
12GEC Locations are Strategically Located at
Subway Stations
GEC® Burnaby Heights
GEC® Viva
GEC® Granville
GEC® King Edward II
GEC® Kingsway
GEC® Oakridge
GEC® Pearson
GEC® Marine Gateway (Pending)
GEC® CyberCity
GEC® Education
Mega Center
Education City Richmond
Subway Stations GEC® Projects Select Education Institutions
13GEC Viva Tower – Howe St & Drake St
2015 - 18
Convertible from desk to
bed or to 2-level bunk beds
14GEC Granville – Granville St & Drake St
2015 - 18
Hotel room setting during the tourist season
Students sharing during the school seasons
Increased
revenue
from $4.2M to $7.5M
within two years
15GEC Burnaby Heights – E. Hastings St & Gamma
2016 Single or Shared Room – top bunk optional
Fully Furnished Suites Fully equipped kitchen
16GEC Pearson – Cambie St & 60th Ave
2014
Single Occupancy single bed
Double Occupancy 2 beds
& desk
Shared studio with 2 beds or 4 beds at reduced cost during
the Summer Camp season
A
B
Virtual Tour
City TV
GEC Pearson
17GEC Cyber City – Cambie Rd & River Rd, Richmond
2017
Cambie Rd
2 minutes walk from
Aberdeen Station
Stratified offices for the tech sector and schools Automated Micro-suite hotel
18GEC King Edward – Cambie St & W. King Edward
2016
46,00 SF
193 Beds
19Global Education City – No. 3 Rd & Alderbridge Way, Richmond
2018-2022
Pre-sale Condo owned by the Developer slated for sale in 2020 to 2022 Pre-sale
Condo
(sold out in
2019)
Pre-sale
Condo
GEC Office Tower &
Retail Ground Floor
GEC Rental Tower (sold out in Office 127,379 SF
2019)
Retail 6,663 SF
SkyTrain Rental Tower
Station
104,561 SF
Value Increased by $109 - 127million Total 238,603 SF
before financing cost and administration expenses
Atmosphere Video
20Located at Richmond City Center
Pre-sale Condo
GEC
No.3 Road
SkyTrain
Station
Lansdowne Mall
24 new residential towers at
rezoning phase
Kwantlan Polytechnic University
Under Construction
Possession in mid 2022
Site Video
21GEC Education Mega Center – Central City Parkway, Surrey
2017-23
Pre-sale Condos
14 Floors
224 bedrooms
Rental Apartments
26 Floors
668 Beds
Commercial Floors 6
Amenity floors 2
Schools & Offices
Surrey Central Total occupants 922 Accommodates up to 922 occupants
SkyTrain Station Building Height 48 Floors 6 floors of schools and commercial tenants
News Coverage
22Located at Surrey Central Station
Over 10,000 students are studying in this area without accommodation service
Simon Fraser University New Expansion
Civic Library
Simon Fraser University Surrey
Surrey City Hall
Bus Loop
Surrey Central City SkyTrain Station Kwantlen Polytechnic
Mall and Walmart GEC
Education University ( Surrey Central)
Potential
Acquisition Mega Civic Plaza Hotel
Center
10240
City
Blackwood Partner plans to build 10 towers at Parkway
this site
King George Highway
23GEC Education Mega Center – Central City Parkway, Surrey
Micro-Studio with Hideaway Desk and Bed
Desk by Day Bed by Night
24Located at Surrey Central Station
GEC SkyTrain Station Pre-sale Condo
SkyTrain Station
ond
C
o
SOLD
GEC
GEC
No.3 Road
Oakridge Mall
Lansdowne
41stAve Mall GEC
18 floors
125,000
Cambie St.
24 new residential towers at SF
466
rezoning phase beds
https://dailyhive.com/vancouver/lansdowne-
2 minutes walk to
centre-lansdowne-district-richmond-
Ten towers of various heights redevelopment-2025
Subway Entrance
up to 44 floors developed by
QuadReal and West Bank
Kwantlan Polytechnic University
25
25GEC Oakridge – West 42nd Avenue & Cambie Street
2019-23
26GEC Kingsway – 2153-2199 Kingsway, Vancouver (at Gladstone)
2019-22
2019-23 Head-lease for 21 years
Equity investment $0
Annual net cash flow $0.8M
27Financial Data CIBT Education Group Inc.
Million Million Real Estate Million Total Revenue Million
Educational Revenue Development Revenue
Total Assets
$80.00
$120.00 $800.00
$60.00 $50.00 $100.00
$600.00
$40.00 $80.00
$40.00 $30.00 $60.00 $400.00
$20.00 $40.00
$20.00 $200.00
$10.00 $20.00
$0.00 $0.00 $0.00
$0.00
F2017-A
F2018-A
F2019-A
F2017-A
F2018-A
F2019-A
F2021-P
F2022-P
F2023-P
F2021-P
F2022-P
F2023-P
F2016-A
F2020-P
F2016-A
F2020-P
F2018: GEC executed the Richmond Education City project and Million Total Equity Book Value per Share
earned substantial Development Fee
$500.00 $0.80
$400.00
$0.60
$300.00
Million Net Income EPS - Net to CIBT $200.00 $0.40
$150.00 Shareholders $100.00 $0.20
$0.00
$0.00
F2017-A
F2018-A
F2019-A
F2021-P
F2022-P
F2023-P
$0.80
F2020-P
F2016-A
$100.00 F2015 F2016 F2017 F2018 F2019
$0.60
$0.40 -A -A -A -A -A
$50.00
$0.20
$0.00 $0.00
Financial Highlights
Aug 31
2017 2018 2019 3Y CAGR
Revenue $53.56M $74.90M $71.00M 9.9%
F2022: Construction for the Richmond Education City project Net Profit $8.28M $43.37M $14.93M 21.7%
completes. Substantial capital gains will be earned upon
possession. EBITDA $13.12N $57.50M $23.75M 21.9%
Attachments 28Corporate Information CIBT Education Group Inc.
Ticker (TSX/OTCQX) MBA/MBAIF
Market capitalization (September 30, 2020) $52M
Shares outstanding (August 31, 2020) 74.54M
Shares bought back and cancelled since 2014 to August 31, 2020 20.93M
Options (August 31, 2020) 3.49M
Warrants outstanding 0
Fully diluted (August 31, 2020) 78.03M
Insider holdings (including friends & family) 50+%
Fiscal year end Aug 31
BVPS book value per share as of May 31 - 2019 & 2020 $0.66 / $0.77
Stock price (September 30, 2020) $0.70
EPS nine months net to CIBT shareholders May 31 – 2019 & 2020 $0.03 / $0.08
Q3 Net Income nine months ended May 31 – 2019 & 2020 $5.69M / $5.54M
Q3 EBITDA nine months ended May 31 – 2019 & 2020 $13.08M / $14.38 M
29Awards and Recognitions
30You can also read
