Annual Investor Meet May 2014 1
Agend nda • NIIT: Company Overview • Individual Learning Solutions • Corporate Learning Solutions • School Learning Solutions • Skill Building Solutions • FY14 Results Update • Riding the Winds of Change 2
COMPANY OVERVIEW 3
NIIT: IT: IT Training aining To GTD SBS Training and IT Services CLS business Global Talent CAGR >50% + Development Key Competencies SLS Company Developed: - Pedagogy ILS - Management of distributed delivery process, IFBI, Imperia - Partnerships Launch of NYJ, and Cloud Pioneered Demerger of Campus Franchising in IT Services Education IT Industry Slowdown IPO Revolution GNIIT Uniqua Established 1982 1993 2000 2004 2006 2008 2011 2014 NIIT has grown from being an IT training company to a global talent development corporation 4
NIIT: IT: Organization anization St Struc ucture ure School Learning Individual Learning Skills Building Corporate Learning Solutions Solutions Solutions Solutions 16% 42% New Business 42% Academics Employability Productivity nGuru Learning Vocational Skills Managed Training IT Solutions (9 Service Sectors) Services Business Process Custom Learning • Multimedia Teaching ICT Projects • IT, Business Process • Managed Training Management Projects • Vocational Skills & Learning Content Management, Banking Services • IT Learning • 9 Service Sectors Banking & Finance • Learning Delivery & Finance, • Teacher Training including IT/ITES, Retail, • Custom Learning Management • School Management Management Finance, Hospitality etc • Professional Life skills Solutions Services Education *NIIT Limited owns 23.9% of NIIT Technologies Percentages reflect share of Net Revenue for the business for 9M’FY14. Percentages are rounded to nearest integer 5
NIIT: : Las ast t 5 Y 5 Year ar Fin inan ancia ial l Trac ack Record Rs Mn EBITDA Revenue 1,267 1,235 1,198 10,417 9,608 9,510 8,335 8,642 620 523 FY10 FY11 FY12 FY13 FY14 FY10 FY11 FY12 FY13 FY14 ˃ Number of Shares Outstanding : 165 Dividend Payout million (FV of Rs 2 each) 264 264 264* ˃ Last Bonus, Split : 5:1 Split, 3:2 Bonus; 248 Sept 2008 231 ˃ Credit Rating: National Long-Term ‘IND AA- FY10 FY11 FY12 FY13 FY14 National Short- Term ‘IND A1+ *Proposed Financials exclude Element K, which was divested by the company on October 14, 2011 6
Cap apit ital al Str tructure ucture Total Capital employed – Rs. 8,098 million • No of Shares – 165.1 Mn • Face Value – Rs. 2 per share Debt 16% Share Holding Equity 84% Founders Public 34% 39% Net Fixed Current Assets DMF Assets 25% FII 28% & FI 14% 13% Cash 11% Investments 36% * As of Mar 31, 2014 NIIT Limited owns 23.9% of NIIT Technologies 7
NII IIT T has s made si signif nifican icant t co contr trib ibut utio ion n to tr training ing and and education, tion, globally bally …over 30 million learners Nurtured over 2000 entrepreneurs IT Enabled >10 Mn school children Helped over 4 Mn individuals perform better at their jobs IT enablement for 30,000+ IT professionals for Bhutan and Maldives Chinese economy per annum Developed over 200,000 Enhanced income for more than Trained over 4 lac school 75,000 BPL families hrs of learning content teachers to leverage IT 8
…and has received numerous recognitions and awards Highest Rated Education Brand Ranked 4 th Best Company to work for in India. No 1. in Education and Training NIIT Nguru ICR@Home received Award for best “Use of Assistive Technology for Education” 14 Brandon Hall awards for corporate training NIIT USA ranked among the Top 20 Companies in Training NIIT received Dataquest ‘Top IT Outsourcing, 2014 by Training Training Company’ Award in 2013 Industry, Inc. for the seventh for the 20 th consecutive year consecutive time since 2008 9
BUSINESS OVERVIEW 10
IT Trai aini ning ng • Improving individual employability in IT Sector • Career, Career-edge and skills upgrade courses for Technology Partnerships* individuals • For Engineers, Science/Arts/Commerce graduates, working professionals • Instructor-led, enhanced through cloud based solutions • India, China, Developing World *Selected NIIT is Asia’s No.1 IT training company 11
IFBI IF I - Finance, nce, Bankin king g & In Insurance ce Trainin ning • In equity partnership with ICICI Bank • Career, Career-edge and Skills upgrade courses for Partnerships* Individuals • For graduates and working professionals • Instructor-led, supplemented by e-learning *Selected Creating job ready professionals for banking, insurance & financial services industry 12
NIIT IT Uni niqua qua - Bus usiness iness Pr Proce cess ss Ma Mana nagement gement • Joint venture between Genpact & NIIT Partnerships* • Career, skills upgrade courses • Offers training to meet the growing requirement for professionals skilled in business/knowledge process outsourcing sectors • Onboarding, On-the-job Skills & Productivity enhancement and Leadership Development *Selected Creating skilled workforce for the ITES sector 13
NIIT IT Impe peria ria - Ma Managem nagement ent Ed Educ ucation ation • Executive management education for individuals Partnerships* • Career upgrade courses for working professional • Synchronous learning delivery model • Instructor-led, supplemented by e-learning *Selected Enhancing reach of quality management education 14
ILS: S: Our ur Reac ach India : 531 Centers China: 93 Centers ROW: 95 Centers 15
Corpor porate ate Learning arning So Solutions utions Over 50 Industry Awards End to End servicing capability 16
Corpor porate ate Learning arning So Solutions utions Logos represented above are trademarks of respective companies Customers across various industries 17
SLS: nGuru ru Solutions tions Portf tfoli lio for S r Schools ols ICR Cloud Math Lab Science Lab Quick School @ Cloud Web & Multimedia curriculum Shared computing NIIT has the widest range of offerings 18
SL SLS: S: Our Credentials dentials 10 Mn + Students 400 k + Teachers 100 k + Nodes 24 k + Hrs of Content Private and Government Schools 45 k + Private Schools Instructors 16 k + Schools Cumulative NIIT has the widest reach in the market 19
Skil Sk ill l Bui uilding lding So Solutions utions • In equity partnership, and funding support from NSDC • To set up over 1,500 centers in 1,000 cities, over 10 years • To Transform over 7 million unskilled youth into readily employable professionals • Segments: IT/ITES, Media & Entertainment, Education & Training Services, BFSI, Retail, Hospitality, Healthcare, Telecom & select informal sectors NIIT has the right credentials to deliver on the large opportunity 20
SBS: In Innovat novative ive Peda dago gogy/D gy/Deli eliver very y Using ng Tech chnology nology FOUNDATION MODULES CAREER MODULES VIDEOLOG 2 VIDEOLOG 1 VIDEOLOG 3 Post-test Pre-test Mock Interview Classroom Computer Skills Synchronous Learning Lab Lab Learning Two way expert Using the mobile as IT and Self-Paced Facilitate occupational skill interaction an assessment tool learning building CCTV and Biometric devices to aid student management 21
RESULTS UPDATE 22
En Envir ironment onment • India’s economic growth remains tepid with a successive year of sub 5% growth. Economy constrained by high interest rates and sticky inflation • Volume growth in IT sector expected to improve on recovery in developed markets, and lead to increased hiring. However, sentiment towards IT Training remained weak as on-ground hiring activity remains muted • Uncertainty caused by General elections in India further impacted customer decision making • Roller coaster ride in forex rates contributed to enhanced operational risks • Changing technology trends and increase in just-in-time hiring of skilled workers creating new opportunities for training sector • Spending on Corporate Training in USA & Europe remains robust, although sales cycles and transition periods remain stretched Environment remained weak for 2nd successive year. Expectations of turnaround in FY15 after elections
Consol nsolid idate ated d Fi Financi nancial als: s: P& P&L Rs. Mn Q4FY'14 Q4FY'13 YoY FY'14 FY'13 YoY System wide Revenues 3,069 3,174 -3% 14,065 15,260 -8% Net Revenues 2,329 2,216 5% 9,510 9,433 1% Operating expenses 2,198 2,145 2% 8,890 8,910 0% EBITDA 131 71 85% 620 523 19% EBITDA % 6% 3% 244 bps 7% 6% 98 bps PAT 140 27 415% 178 263 -32% Basic EPS (Rs.) 0.8 0.2 415% 1.1 1.6 -32% • Revenues up marginally during the year. Strong growth in Corporate Learning and Non- IT programs in ILS help overcome weakness in IT training and completion of large Government Schools Contracts • Aggressive cost optimization and strong USD helps offset cost and wage inflation, and impact of operating leverage in ILS business * On continuing business basis and excluding pass through revenues in SLS 24
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