NETSOL Technologies
Investor Presentation
July 2018 Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO Jeff Bilbrey, President, North America
NASDAQ: NTWK
NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, - - PowerPoint PPT Presentation
NASDAQ: NTWK NETSOL Technologies Investor Presentation Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO July 2018 Jeff Bilbrey, President, North America NASDAQ: NTWK Safe Harbor Statement This presentation may contain forward-
Investor Presentation
July 2018 Najeeb Ghauri, Founder, Chairman & CEO Roger Almond, CFO Jeff Bilbrey, President, North America
NASDAQ: NTWK
This presentation may contain forward-looking statements relating to the development of NETSOL Technologies’ products and services and future operating results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe," "expect," "anticipate," "intend," variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. Any forward-looking statements contained herein speak only as of the date hereof. The Company undertakes no obligation to update or review any forward-looking statements. This presentation may reference non-GAAP measures such as EBITDA. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. The Company uses EBITDA as a measure of the Company’s operating
Accepted Accounting Principles (GAAP). The EDITDA numbers presented may not be comparable to similarly titled measures reported by other companies. EBITDA, while providing useful information, should not be considered in isolation or as an alternative to net income or cash flows as determined under GAAP. Investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the Company’s SEC filings.
NETSOL TECHNOLOGIES 2
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Leading ading provider
terprise software tware solutions utions serving rving the e globa
l leasi asing ng and finan nance ce industry dustry
NETSOL TECHNOLOGIES 3
Recogni
zed leade ader in in asset et finance nance and leasi asing ng software are
Highl ghly competitiv etitive portfol tfolio of
are solution utions
functions Past R&D conve verting rting to new licens cense e and servi rvices ces reve venue nue
generation product, NFS Ascent™ Offsho shore re deliver elivery y model el
Global Delivery & Support Centers
Global Team of Experts
Global Client Base
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NETSOL TECHNOLOGIES 4
Auto Fi Finance nce & Le Leasi sing ng Bank k & Asset t Fi Finance ce Equipment ent Fi Finance ce
Strong Relationships with 200+ Clients Across Market Verticals
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NETSOL TECHNOLOGIES 5
Years in The Americas
40+
Years in Europe
25+
Years in The APAC
20+
Equipment Finance Technology Finance Asset Finance Auto/Captive Finance Big Ticket Finance Wholesale Finance Bank Owned Lending
$200B+
Portfolio Managed Globally
300+
Successful Implementations
200+
Global Clients
25K+
Users Globally
7K+
Connected Interfaces
100%
Project Success Rate
NETSOL TECHNOLOGIES 6
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Web Desktop
mPOS mFI mAU mD mAC
Next Generation Enterprise Solution
7
6 NASDAQ: NTWK
NETSOL TECHNOLOGIES
Wholesale Finance System
Loan Origination System
Contract Management System
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NETSOL TECHNOLOGIES 8
mates es and manage ages s the ent ntire re lifecy cycl cle
ful floor
nning g tools
ler & i invent ntor
ncing ing
port for asse set & n non-asset sset base sed d financ ncing ng
le-based ased applica ication tion tha hat t ena nables les rapid pid da data ta capt pture re at the point t of sale
itiv ive user experie ience nce
ible workflow flow manage geme ment nt
define fined d financial ncial products ucts
izable scoring ing models ls
ted decision ision-ma making ing
ages s and mainta tain ins s detailed ailed credit dit con
racts ts thr hroug
hout t the heir r lifecy cycle cle
ible service ice base sed d archit hitectur ure
iness ss proce cess ss design signer
hensiv nsive contr tract ct manage gement nt
l standar ndards ds compliance liance
Does not represent all deals. Provided for Illustrative purposes.
$100 million NFS AscentTM contract underway $3 million New NFSTM contract in Indonesia $16 million NFS AscentTM contracts in Asia
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Long ng-te term rm Contracts tracts Crea eate te St Stable ble Ba Base e to Bu Build ild Upon
NETSOL TECHNOLOGIES 9
$4 million New NFSTM contracts in China
▪ Implementing in 12 countries: Upgrading existing NFS to NFS Ascent and expanding into one new country ▪ Maintenance recognized over 10-year period, increasing with each successful implementation ▪ Services and customization work will likely grow; provides for further potential upside in the contract ▪ In Oct. 2017, secured amended contract for ~$9.1 million in additional future rev. on top of original contract value
Strong endorsement ent from m long-standing client
▪ Provides top-tier reference for NFS Ascent platform’s ability to cater to complex regional requirements ▪ Leveraging endorsement to create strong interest from existing and new clients seeking enhanced competitiveness by migrating to next generation solution suite
*$100 million based on license, maintenance and anticipated services to be rendered to each country
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NETSOL TECHNOLOGIES 10
Largest Contract in NETSOL‘s History
Strong Pipeline Across Geographies
✓ Global presence and local expertise to capture future sales opportunities ✓ Robust client track record to drive new business ✓ U.S. market is a significant new growth
Land & Expand with New and Existing Customers ✓ Wealth of knowledge applied to future roadmap needs and new upgrade paths in emerging markets ✓ Cost arbitrage gained from capitalizing on delivery through a developing nation with cutting edge resource pool Emerging Market & Homegrown System Updates ✓ Continued support on different solution models ensures flexibility in serving different market segments in varying maturity lifecycles ✓ Leasing and financing growth plays important trend Continued Support of NFS, LeaseSoft and LeasePak ✓ Established upgrade pathway for existing clients to NFS Ascent ✓ Current implementations provide strong reference point for new clients ✓ Large multi-country, multi-million dollar
Next Generation NFS Ascent™ Solution
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NETSOL TECHNOLOGIES 11
$20.4 $32.1 $40.9 $32.4 $10.5 $12.6 $13.7 $14.5 $5.4 $6.3 $10.0 $18.5 $36.3M $51.0M $64.6M $65.4M 2014 2015 2016 2017
License Maintenance Service
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NETSOL TECHNOLOGIES 12
$8.6 $7.6 $8.9 $10.3 $10.6 $3.6 $3.6 $3.6 $3.7 $3.8 $5.7 $3.3 $0.3 $0.4 $2.6 $17.9M $14.5M $12.8M $14.4M $17.0M Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Service Maintenance License
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NETSOL TECHNOLOGIES 13
Revenue nue
$2.0M $0.9M $1.0M $2.1M $4.3M Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Non-GAA AAP P Adj. EBITDA
▪ Improving quarterly financial performance ▪ Initiated new productivity and cost reduction initiatives in fiscal Q2-17
an anticipated reduction of more than $7.0 million through fiscal 2018 ▪ Growing non-GAAP adjusted EBITDA, which is a good proxy for cash earnings ▪ Stabilized cost structure can support a significant more amount of revenue without incremental investment
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NETSOL TECHNOLOGIES 14
✓ Global opportunities for growth ✓ Capital structure that is attractive to investment today ✓ Offshore delivery builds leverage in model ✓ Improving financial outlook ✓ Numerous multi-country implementations with global companies ✓ Average deal size is growing ✓ Favorable industry trends ✓ Attractive valuation relative to peers
Innovation is in our
NETSOL TECHNOLOGIES 15
Corporate Headquarters
23975 Park Sorrento Suite 250 Calabasas, CA 91302, USA
Website
www.netsoltech.com
Investor Relations Liolios Group, Inc. Matt Glover and Tom Colton 949-574-3860 investors@netsoltech.com
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