Investor Meet Mumbai: May 10, 2010 1
Agenda • Education & Training: Landscape • Company Overview – Individual Learning Solutions – School Learning Solutions – Corporate Learning Solutions • Year 2009-10 • Future Direction 2
EDUCATION & TRAINING: LANDSCAPE 3
India‟s “Demographic Dividend” Median Age Proportion Of Working Age Group 40 37 34 65.0 64.8 64.2 25 63.5 62.6 61.6 59.9 2005 2010 2015 2020 2025 2030 2035 India China UK USA Working Age Group Population (Mn) • Young population India China UK USA 994 923 • India to have the largest working 918 846 age group population 868 749 215 202 196 37 38 38 Source: United Nations Population Division 2010 2020 2035 India‟s advantage will arise from demographics and productivity enhancement 4
Education & Training In India: The Challenge Drop Out Rates By Level Of School Education 100% 38% -26% -12% -24% Initial Class I-V Class VI-VIII Class IX-X High School Enrolment Gross Enrolment Ratio (GER) In Tertiary 100% Education 76% 59% 23% 30% 12% USA Norway UK Brazil China India Source: Planning Commission, CII , UIS Data Center Challenge: Low enrolment and High drop out rates 5
Education & Training In India: The Challenge No of illiterates (Mn) 396 89 79 73 18 8 0 3 Botswana Colombia India Mexico Pakistan Indonesia Bangladesh China Source: UNDP HDR:2009 Percentage with Formal Vocational Training 96 80 75 68 64 36 28 22 5 Australia Botswana Colombia Germany India Japan Korea Mexico UK India has the largest uneducated and untrained population 6
Education & Training: The Emerging Environment The Emerging Framework Planned Outcomes • National Skills 10,000 new vocational schools Skills Development Corporation 50,000 skill development Development • Target: vocational skills to centers 500 Mn people by 2022 Revamp of ITIs Public Private Partnerships • Right To Education ICT@Schools, SSA, RMSA • National Curriculum PPP for Model Schools Schools Skills training in schools Framework Education • Education through ICT Technology enabled teaching Polytechnics , Community • New regulatory Colleges framework: NCHER, Higher Technology enabled teaching NARA, Foreign Education Professional skills training Education Providers • GER of 30% by 2020 vs current GER of 12.4% Education and training scenario is undergoing a transformation 7
NIIT In The Emerging Environment NIIT’s Strengths Current Engagement • Long standing brand ILS : IT and Soft Skills • Best in class domain IFBI : Banking, Finance, Insurance partnerships Skills Uniqua : BPO/KPO Skills • Content creation Imperia : Management education Development capability English Plus : Communication • Processes & tools for skills distributed delivery of Training.com : Online learning education 870+ global delivery centers • Width and depth of Government sponsored reach opportunities • Innovative Govt: BOOT contracts pedagogical solutions eGuru suite Schools • Operations & Project Interactive classrooms Education Management Math Lab, Science Station • Teaching/ learning Teachers Training content School ERP • Scalable delivery HIWEL Learning Stations capability NIIT has emerged as the strongest brand in education and training 8
NIIT In The Emerging Environment NIIT’s Strengths Current Engagement Tie up with 60+ universities • Institutional Joint certification and dual Higher alliances models qualification programs Education • Global linkages IGNOU partnership for degree programs NIIT Inside solutions • Largest online learning library • Best in class custom Provider of products and services content capability to Corporate • End-to-End Training − Leading technology companies Training outsourcing capability − Major Fortune 500 companies • Partnership with all − Governments major technology companies NIIT has created a unique positioning in the education space 9
NIIT: Market Leader with Strong Credentials • One of the largest providers of vocational and professional skills worldwide across various service sectors. Acknowledged market leader in India • Leading player in the school education segment in India. Positioned to take strong advantage of the emerging environment • One of the largest providers of corporate training in the world. Uniquely positioned to take maximum advantage of the growing training outsourcing trend, in India and internationally Demonstrated ability to build viable, scalable and sustainable education & training businesses 10
COMPANY OVERVIEW 11
IT Training To GTD Training and IT Services CLS business Global Talent CAGR >50% + Development Company Key Competencies SLS Developed: - Pedagogy ILS - Management of Acquisition of EK distributed delivery process, Launch of IFBI - Partnerships & Imperia Pioneered Demerger of Launch of NEP Franchising in IT Services & Training.com Education IT Industry Slowdown IPO Launch of Established Uniqua 1982 1993 2000 2004 2006 2010 2008 NIIT has grown from being an IT training company to a global talent development corporation 12
Servicing The Full Labor Supply Chain School Learning Individual Learning Corporate Learning Solutions Solutions Solutions Target Audience School children Young adults Working professionals Value Proposition Academics Employability Productivity Customer School Individual Corporate • IT Training • Online & Print Learning • Multimedia Teaching & • BPO, KPO Training Products Learning Content • BFSI Training • Training Delivery • IT Learning • Management • Custom Content Coverage • Teacher Training Education Development • School Management • English Language • Managed Training Services • Professional Life skills Services India , Emerging India, China, Emerging Geographic Coverage India, USA, Europe Economies Economies 13
NIIT: Last 5 Year Financial Track Record Rs Mn Revenue EBITDA 1,569 CAGR: 28% 11,993 11,486 CAGR: 27% 10,068 1,186 1,036 7,951 774 603 4,507 FY06 FY07 FY08 FY09 FY10 FY06 FY07 FY08 FY09 FY10 Dividend Payout ˃ Number of Shares Outstanding : 165 million (FV of Rs 2 each) 231 214 214 ˃ Last Bonus, Split : 5:1 Split, 3:2 143 116 Bonus; Sept 2008 ˃ Growth in Market Cap : 2.7x (over last 5 years); CAGR: 22% FY06 FY07 FY08 FY09 FY10* * Proposed 14
Capital Structure Total Capital employed – Rs. 9,110 Mn • No of Shares – 165.1 Mn • Face Value – Rs. 2 per share Secured Debt 28% Reserves 52% Unsecured Debt Equity 16% 4% Promoters, Public, 34% 34% Invest ments 12% Cash 7% DMF and FI, Net Fixed 4% FIIs, 28% Net Current Assets* * Including CWIP Assets 69% 20% 15
BUSINESSES 16
INDIVIDUAL LEARNING SOLUTIONS 17
ILS - Opportunity Space Total Working Professionals 19.2m 19m Working Target 2.3m Pros 2m Non- T ech Graduates Tech 0.4m 2.9m 3.3m Non-Tech Tech 13.6m Students Students Students 1.9m 11.7m Employability training is a huge opportunity 18
ILS: Our Reach • India : 558 Centers • China: 192 Centers • ROW: 159 Centers 19
Individual Learning Solutions-IT Training • 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, supplemented by e-learning • India. China. developing World IT-ITES Industry Outlook 4.0 Mn 120 2.5 Mn 2.23 Mn 57 47 FY09 FY11E FY16E *Selected Employment Nasscom Exports $Bn NIIT is Asia‟s No.1 IT training company 20
IFBI - Finance, Banking & Insurance Training • Career, Career-edge and Skills upgrade courses for IFBI: Partnerships* individuals • For graduates and working professionals • Instructor-led, supplemented by e-learning *Selected Creating job ready professionals for banking, insurance & financial services industry 21
NIIT Imperia - Management Education • Executive management education for individuals • Career upgrade courses for working professional Imperia: Partnerships* • Synchronous learning delivery model • Instructor-led, supplemented by e-learning *Selected Enhancing reach of quality management education 22
NIIT Uniqua - Business Process Training • 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 *Selected Creating skilled workforce for the ITES sector 23
NIIT English Plus • Aimed at rural and semi - urban youth of India • Provide basic English and professional life skills • Embedded modules on professional life skills • Effective learning through „Immersive Learning‟ methodology • Personal Digital Tutor for learning outside the classroom hours English language and professional life skills training are building blocks for skills development and employability 24
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